A golf cart rental business is a type of business that rents out golf carts to individuals or groups who want to use them for transportation or leisure purposes.
Golf carts are small vehicles designed to carry golfers and their equipment around a golf course, but they can also be used for other purposes such as transportation in residential communities, hotels, resorts, and amusement parks. The golf cart rental business typically involves acquiring a fleet of golf carts, maintaining them, and renting them out to customers for a fee.
The business may offer different rental packages such as hourly, daily, or weekly rentals, and may also provide additional services such as delivery and pickup of the carts. The business may also offer customization options such as branding the carts with the customer’s logo or color scheme.
The golf cart rental business is part of the rental industry and available statistics show that the rental market was valued at USD 15 Billion in 2021 and is expected to grow up to USD 20 Billion by 2027, registering a CAGR of 5 percent during the forecast year.
Steps on How to Start Golf Cart Rental Business
Table of Content
Conduct Market Research
When conducting market research for a golf cart rental business, it is important to understand the demand and preferences of customers, identify competitors, and determine the optimal location for your business.
Next, you have to research the demand for golf cart rentals in your target market by looking at industry reports, statistics, and online forums. Identify your competitors and analyze their pricing, services, and marketing strategies. This will help you determine how to differentiate your business and identify gaps in the market.
Identify the locations with high demand for golf cart rentals, such as popular camping destinations or areas with golf courses, and outdoor events.
Consider factors such as accessibility, parking, and proximity to attractions. Survey potential customers and conduct interviews with industry experts to gain insights into their preferences, needs, and expectations. This will help you tailor your services to their needs and preferences.
Lastly, you should analyze the data collected from your research to identify trends, preferences, and opportunities. This will help you make informed decisions about your business, such as pricing, services, and marketing strategies.
a. Who is the Target Market for Golf Cart Rental Business?
- Golfers and outdoor enthusiasts
- Tourists and visitors
- Travels and tours agencies
- Adventure seekers
- Everyone who lives and works in the city where you operate.
b. Is the Golf Cart Rental Business a Profitable Business?
Yes, the golf cart rental business is a profitable business. Available statistics show that the rental market was valued at USD 15 Billion in 2021 and is expected to grow up to USD 20 Billion by 2027, registering a CAGR of 5 percent during the forecast year.
c. Are There Existing Niches in the Industry?
No, there are no existing niches when it comes to the Golf cart rental business because the golf cart rental business is a subset of the rental services industry.
d. Who are the Major Competitors?
- Golf Cart Rentals of the Outer Banks
- Golf Cars of Arizona
- Coastal Cruisers LLC
- Island Carts
- DeTour Golf Cart Rentals
- Green Leaf Golf Resort
- Golf Car Rental
- Island Buggies & Scooters
- Destination Golf Cars
- Island Paradise Carts
- Wheelz of Maui
- Golf Cart Rentals of Port A
- Lanier Islands
- Surfside Beach Golf Cart Rentals
- Beach Cities Golf Cart Rentals
- Beach Buggys
- Park City Golf Cart Rentals
- Island Adventure Rentals
- Blue Sky Golf Cart Rentals
- Coastal Cruisers LLC.
e. Are There County or State Regulations or Zoning Laws for Golf Cart Rental Businesses?
Yes, there are county and state regulations and zoning laws for golf cart rental businesses. These regulations vary by location and can include requirements for permits, licenses, insurance, parking, and safety.
For example, some counties or municipalities may require a special permit or license to operate a golf cart rental business and may have specific zoning laws that restrict the location of the rental business. In some areas, golf cart rental businesses may be subject to inspection and safety requirements, such as fire safety or sanitation standards.
Additionally, the rental business may need to comply with state and federal laws and regulations regarding vehicle safety and maintenance, such as regular vehicle inspections.
f. Is There a Franchise for Golf Cart Rental Business?
Yes, there are franchise opportunities for golf cart rental business, and here are some of them;
- Street Legal Golf Cart Rentals
- Island Cart Rentals
- 24/7 Golf Cart Rentals
- Golf Cart Rentals of Fort Lauderdale
- Golf Cart Rentals of Daytona
- Gulf Coast Golf Cart Rentals
- Palmetto Breeze Golf Cart Rentals
- AMI Beach Buggys
- Cart Rental Express
- Laid Back Carts.
g. What Do You Need to Start Golf Cart Rental Business?
- A Feasibility Report
- Business and Marketing Plans
- Business Licenses and Permits
- Golf carts and related accessories
- EIN (Employer Identification Number)/Federal Tax ID Number.
- A Corporate Bank Account
Choose a Memorable Business Name
When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.
Some of the catchy business name ideas suitable for a golf cart rental business are;
Creative Golf Cart Rental Business Name ideas
- Simeone Hills© Golf Cart Rental Company, Inc.
- Fun Carts® Golf Cart Rental Company, LLC
- Saul Six© Golf Cart Rental Company, Inc.
- Larry Cage® Golf Cart Rental Company, Inc.
- Halley Bucks™ Golf Cart Rental Company, Inc.
- Green Carts™ Golf Cart Rental Company, LLC.
- Tim Lewis© Golf Cart Rental Company, LLC
- Tiger Tree® Golf Cart Rental Company, Inc.
- Steve McClory© Golf Cart Rental Company, Inc.
- Jutty Carts© Golf Cart Rental Company, Inc.
- Charlie Brown® Golf Cart Rental Company, LLC
- Amos Kestin® Golf Cart Rental Company, LLC
- Land Power™ Golf Cart Rental Company, LLC
- Wills Glass© Golf Cart Rental Company, Inc.
- Joe Coque® Golf Cart Rental Company, Inc.
- Kris Xxavier™ Golf Cart Rental Company, Inc.
- Chris Xavion™ Golf Cart Rental Company, Inc.
- George Towns© Golf Cart Rental Company, Inc.
- Uncle Sam® Golf Cart Rental Company, LLC
- Early Birds™ Golf Cart Rental Company, Inc.
Register Your Business
a. What Type of Business Structure is Best for Golf Cart Rental Business?
The best type of business structure for a golf cart rental business depends on several factors, including the size of the business, the number of owners, and the level of personal liability exposure the owners are willing to accept.
However, we usually recommend a limited liability company (LLC). An LLC is a popular choice for startup businesses because it offers personal liability protection for the owners while allowing them to be taxed as a pass-through entity. This means that the profits and losses of the business are passed through to the owners’ personal tax returns, avoiding double taxation.
b. Steps to Form an LLC
- Choose a Name for Your LLC.
- File Articles of Organization.
- Choose a registered agent.
- Decide on member vs. manager management.
- Create an LLC operating agreement.
- Comply with other tax and regulatory requirements.
- File annual reports.
c. What Type of License is Needed to Open Golf Cart Rental Business?
- General Business License
- Golf Cart Rental License
- Permits for Golf Cart Storage
- Vehicle Registration
- Sales Tax License
- Zonal Permits
- Signage Permit
- Operational State Facility Inspections for your parking
d. What Type of Certification is Needed to Start a Golf Cart Rental Business?
You don’t need any certifications to start a golf cart rental business.
e. What Documents are Needed to Open Golf Cart Rental Business?
- Business and liability insurance
- Federal Tax Payer’s ID
- State Permit and Building Approval (For your parking)
- Certificate of Incorporation
- Golf Cart Rental License
- Permits for Golf Cart Storage
- Vehicle Registration
- Sales Tax License
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Contract Document
- Company Bylaws
- Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?
It is not necessarily required to obtain a trademark, copyright, or patent for a golf cart rental business, but it may be beneficial to do so to protect your brand, intellectual property, and unique services or products. It may be useful to obtain a trademark for your business name or logo to prevent others from using it, and to protect your brand.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start Golf Cart Rental Business?
The cost to start a golf cart rental business can vary depending on a number of factors such as location, size of the business, number of golf carts, and level of services offered. It can range from $50,000 to over $150,000. For example, the average 2-seater golf cart costs between $7,000 and $8,000. 4-seater golf cart prices range between $8,000 and $10,000, and 6-seaters run around $10,000.
b. What are the Costs Involved in Starting Golf Cart Rental Business
- Legal and administrative costs (the cost of obtaining business licenses and permits, registering the business, and consulting with attorneys and accountants): $12,500
- Golf carts and accessories: $75,000
- Staffing costs: $35,000
- Rent/lease: $80,000
- Marketing and advertising costs: $3,000
- Insurance costs: $12,800
- Miscellaneous Expenses: $5,000
c. What Factors Determine the Cost of Opening a Golf Cart Rental Business?
- The size of the golf cart rental business (number of golf carts to start the business with)
- The choice of location
- The required licenses and permits
- The cost of hiring and paying a business consultant and attorney
- The cost of branding, promotion, and marketing of the golf cart rental business
- The cost of furnishing and equipping the golf cart rental business – storage or parking facility
- The cost of the insurance policy covers
- The cost of registering the business
- The cost of recruiting and training your staff
- The cost of the purchase and customizing of uniforms
- The cost of the grand opening of the golf cart rental business
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
The truth is that it is not necessary to build a new facility for your golf cart rental business, but if you have the required finance, it will pay you to build your own parking facility and administrative office. The truth is that building or reconstructing a facility will help you come up with a facility that will perfectly fit into your overall business goals and vision.
e. What are the Ongoing Expenses of the Golf Cart Rental Business?
- Utility bills (internet subscriptions, phone bills, signage, and software renewal fees et al)
- Salaries of employees
- Fueling, maintenance, and repairs
- Marketing costs
f. What is the Average Salary of your Staff?
- Chief Operating Officer (Owner) – $58,000 Per Year
- Admin and HR Manager – $38,000 Per Year
- Fleet Manager $37,000 Per Year
- Accountant $36,800 Per Year
- Instructors (Drivers) – $36,000 Per Year
- Customer Service Officer (Call Center Executives) – $26,100 Per Year
- Golf Cart Detailers -$24,000 Per Year
g. How Do You Get Funding to Start Golf Cart Rental Business?
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
- Source for soft loans from your family members and friends.
a. Executive Summary
Green Carts™ Golf Cart Rental Company, LLC is a golf cart rental business that provides high-quality, affordable golf carts to customers in Myrtle Beach, South Carolina.
We will offer a variety of rental packages to meet the needs of different customers, including hourly, daily, weekly, and monthly rentals. Our carts will be well-maintained, reliable, and available in a range of styles and colors to fit different preferences and occasions.
Our target market will be individuals and groups who are visiting the area for vacation, business, or events, as well as local residents who need transportation for short-term use. We will reach our customers through online marketing, social media, and partnerships with local hotels, resorts, and event venues.
With our focus on quality, affordability, and customer service, we believe that Green Carts™ Golf Cart Rental Company, LLC is well-positioned to become a leading provider of golf cart rentals in Myrtle Beach, South Carolina. Our management team has extensive experience in the hospitality and transportation industries, and we are committed to providing our customers with a safe and enjoyable rental experience.
b. Products and Service
We rent and lease different brands and types of golf carts and in addition to traditional golf cart rentals, we will offer customized rental packages for special events, such as weddings, corporate events, and music festivals. We will also offer delivery and pickup services to make the rental process as convenient as possible for our customers.
c. Mission Statement
At Green Carts™ Golf Cart Rental Company, LLC, our mission is to provide safe, reliable, and convenient transportation solutions to our customers through our fleet of high-quality golf carts. We are committed to delivering exceptional customer service and ensuring a positive rental experience for all our clients.
Our vision at Green Carts™ Golf Cart Rental Company, LLC is to become a leading provider of golf cart rentals in our area, recognized for our exceptional service and commitment to sustainability. We aim to be the preferred choice of customers seeking reliable, cost-effective, and environmentally friendly transportation solutions for all occasions.
d. Goals and Objectives
The goals and objectives of the Golf cart rental business are to rent out golf carts to individuals or groups who want to use them for transportation or leisure purposes.
e. Organizational Structure
- Chief Operating Officer (Owner)
- Admin and HR Manager
- Fleet Manager
- Instructors (Drivers)
- Customer Service Officer (Call Center Executives)
- Golf Cart Detailers
a. SWOT Analysis
- Wide range of rental packages to meet the needs of different customers
- High-quality, well-maintained fleet of golf carts
- Delivery and pickup services to make the rental process more convenient for customers
- Strong online presence and partnerships with local hotels, resorts, and event venues
- Experienced and knowledgeable management team with a background in the hospitality and transportation industries.
- Limited target market of individuals and groups needing short-term transportation
- Dependence on seasonal demand for tourism and special events
- Possible restrictions and regulations in certain areas for golf cart use
- Limited market reach due to the local nature of the business.
- Expansion of services to include other types of rental transportation
- Strategic partnerships with other businesses to offer bundled services or packages
- Offering customized packages for niche markets such as weddings, corporate events, and music festivals
- Expansion into new markets and geographic locations
- Utilizing social media and digital marketing to reach a wider audience.
- Competition from other local golf cart rental companies and alternative transportation providers
- Economic downturns and decreased tourism in the area
- Increasing regulations and licensing requirements for golf cart rental companies
- Potential for equipment damage, theft, or liability issues
- External factors such as weather conditions or natural disasters that can disrupt operations or demand for services.
b. How Do Golf Cart Rental Companies Make Money?
Golf cart rental businesses make money by renting and leasing golf carts and related accessories.
c. Payment Options
- Credit and debit cards
- Apple Pay and Google Wallet
- Gift cards and store credit
- Installment payments
- Cash on delivery.
d. Sales & Advertising Strategies
- Use online advertising platforms like Google AdWords, Facebook Ads, and Instagram Ads to target potential customers who are searching for golf cart rentals or travel-related content.
- Optimize the company website for search engines by using relevant keywords, creating informative content, and building quality backlinks.
- Create informative and engaging content, such as blog posts, videos, and social media posts, that showcase the benefits of renting a golf cart for travel.
- Build an email list of customers and potential customers and send out regular newsletters, promotional offers, and updates about new rental inventory or travel destinations.
- Implement a referral program that rewards customers who refer new businesses to the company.
- Partner with local travel and tourism businesses, such as golf courses, campgrounds, national parks, and tour operators, to offer bundled travel packages or cross-promote services.
- Attend golf cart shows and travel-related events to showcase the company’s rental inventory and services, network with potential customers and partners, and generate leads.
a. How Much Should You Charge for Your Product/Service?
- Daily rentals: $30 to $100 per day (depending on the location and type of golf cart).
- Weekly rentals: $150 to $500 per week (depending on the location and type of golf cart).
- Monthly rentals: $500 to $1,500 or more per month (depending on the location and type of golf cart).
b. How Much Profit Do Golf Cart Rental Business Owners Make a Year?
The truth is that the profitability of a golf cart rental business can vary depending on a variety of factors, including location, competition, rental rates, and operating costs. It is difficult to determine how much golf cart rental business owners make each year, as there are many variables that can impact profitability.
But according to available industry data, the average revenue per golf cart rental in the US is approximately $80 to $100 per day. Assuming a rental company has a fleet of 20 golf carts and a 50 percent occupancy rate, this would translate to an average daily revenue of $800 to $1,000 per day, or $24,000 to $30,000 per month.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the golf cart rental business (number of golf carts owned)
- The location of the golf cart rental business
- The management style of the golf cart rental business
- The business approach of the golf cart rental business
- The advertising and marketing strategies adopted by the golf cart rental business.
- The number of years the golf cart rental business has been in business
d. What is the Profit Margin of a Golf Cart Rental Business?
The profit margin of a golf cart rental business can vary depending on a variety of factors such as the rental rates, operating costs, and level of competition. Typically, the profit margin for a golf cart rental business ranges from 10 percent to 30 percent.
e. What is the Sales Forecast?
Below is the sales forecast for a Golf cart rental business and it is based on the location of the business and other factors as it relates to such startups in the United States.
- First Fiscal Year: $240,000
- Second Fiscal Year: $300,000
- Third Fiscal Year: $460,000
Set Up your Shop/Office
a. How Do You Choose a Perfect Location for Golf Cart Rental Business?
- The demography of the location
- The purchasing power of businesses and residents of the location
- Accessibility of the location and availability of parks
- The number of golf cart rental businesses in the location
- The local laws and regulations in the community/state
- Traffic, parking, and security et al
b. What State and City is Best to Open Golf Cart Rental Business?
- Myrtle Beach, South Carolina
- Scottsdale, Arizona
- Palm Springs, California
- Orlando, Florida.
- Las Vegas, Nevada
- Phoenix, Arizona
- San Diego, California
- Naples, Florida
- Hilton Head Island, South Carolina
- Kiawah Island, South Carolina.
c. What Equipment is Needed to Operate Golf Cart Rental Business?
- Golf carts
- Maintenance equipment such as air compressors, jacks, hydraulic lifts, tire changing equipment, and power tools.
- GPS systems
- Cleaning supplies such as vacuum cleaners, mops, cleaning solutions, and sanitizers.
- Office equipment such as computers, printers, and phone systems to manage your business operations.
- Safety equipment such as fire extinguishers, first aid kits, smoke detectors, and carbon monoxide detectors.
- Accessories such as outdoor chairs, grills, and other outdoor recreational equipment to enhance the experience for renters.
The decision to hire or not to hire employees for a golf cart rental business depends on the size and scale of the operation. If the business is small and operates on a small scale, it may be possible for the owner to handle all aspects of the business on their own.
However, as the business grows and the sales increase, it may become necessary to hire employees to handle various aspects of the operation.
Launch the Business Proper
Creating a bang or making publicity for a new business is key to how successfully the business can gain traction in the market space. So, if you are considering starting a golf cart rental business, then you must make sure you organize a launch party that will attract people living in the location.
a. What Makes the Golf Cart Rental Business Successful?
- Choose a good location and the latest golf carts to launch the business
- Hire only competent, hardworking, and trustworthy staff
- Throw an open house grand party before officially opening the golf cart rental business
- Be deliberate with your marketing sales approach
- Encourage the use of word of mouth to promote your golf cart rental business
- Leverage all available online and offline platforms to promote your golf cart rental business
b. What Happens During a Typical Day at Golf Cart Rental Business?
- The business is open for the day’s work
- The golf carts are washed, cleaned, and ready for rental
- Customers request to rent and lease golf carts are attended to
- Maintenance of the golf carts is carried out
- Marketing/website upkeep
- Supply ordering
- Administrative duties
- The golf carts are parked after the day’s job
- The business is closed for the day.
c. What Skills and Experience Do You Need to Build Golf Cart Rental Business?
- Business management skills
- Customer services skills
- Interpersonal skill
- Logistics and material handling skills
- Bargaining skill
- Work experience in the golf cart rental services industry
- Experience in managing people
- Experience in business administration
- Experience in handling logistics and transportation software.