How to Open a Car Rental Business
Car rental companies are of great modern convenience to travelers, and can be lucrative for a knowledgeable entrepreneur. If you envision opening a car rental business, identify your niche market as quickly as possible.
Where do other car rental businesses fail? Where will you succeed? Follow the adage of doing a good business better and you could be nursing a healthy bottom line.
Along with the seven integral steps of this article, a thorough business plan resulting from specific market research can leverage you not only into a healthy start-up fund but a business ready to succeed.
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Instructions
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Seven Steps to Starting a Rental Car Company
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1
Establish a relationship with a car dealership to develop your inventory. The bulk pricing of this business relationship enables you to leverage as little capital as possible for the greatest investment in inventory: the fleet of cars your company will rent to customers.
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2
Purchase traveler-friendly real estate, near an airport, hotels, amenities. Consult a real estate lawyer (and possibly the planning and zoning commission or board of your municipality) to help you understand and act in accordance with the compliance laws that govern your facilities.
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3
Meet with an insurance agent to obtain necessary coverage for your business (general liability) and also for your inventory (specialized coverage on your cars). Ensure you have coverage to protect your business if/when accidents occur .
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4
Hire an inventory-proficient bookkeeper to manage company finances and help with management's decision-making on inventory, the fleet of cars, and all repairs, maintenance and new acquisitions.
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5
Negotiate a contract with a cleaning company for regular, routine jobs for your fleet and for special situations.
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6
Join the professional organization, the American Car Rental Association (see resources below).
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7
Create business partnerships with travel agencies, airports and hotels to churn up steady, repeat sources of clientele.
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