The 11-step guide to begin your car rental business: Part -2
So in the part - 1, we completed the three steps and we gave you the assignment to complete. We asked you to create your own business plan following the three steps we discussed in the part - 1 which were:
- Choose the category for your car rental business
- Identify your potential customers and targeted audience
- Create a business plan
We hope that you’re ready with your business plan and then proceed for part-2 of “The 11-step guide to begin your car rental business”. So let’s proceed with the fourth step:
4. Getting your business registered/licensed
Since now you are ready to establish your busines, the next step is of getting a permit legally. For this, register your business with your city/state and the registration process will vary with the specific country. This process includes filling the legal forms and paying nominal registration fees.
There are several business structures to choose from like corporations, DBAs, or LLCs. Choosing LLC will prevent you if your car rental business faces legal problems. Another benefit of choosing LLC or Corporation over other is that
It keeps your personal assets and professional assets secure and separate. This will be really fruitful if any legal action is taken against your rental organization. So always go for a registered agent to stay compliant with rules and regulations and secure your privacy.
Don’t forget to take all required licenses and permits. Otherwise, you will fall into the trap of penalty or the complete closing of business. Complete license requirements and permits for your rental company as per the rules of your city or state. Accompany a legal business advisor to support you with the process of applying for the license.
5. Look for an insurance provider
The next step in the guide to begin your car rental business is to look for a fleet insurance company. Not only the fleet insurance will protect you in case of physical damage to the vehicle but also prevent your huge financial loss. Just look for a good insurance provider and get started with it as there is no requirement for a specific number of cars to sign an agreement. The rest depends on your insurance company.
6. Funding and financial investments
Starting a rental business comes with the responsibility of having enough finances to spend on complicated and huge expenses.
Open a separate business bank account and credit card
Prefer keeping a separate bank account for private and professional affairs as it can turn out to be highly risky if legalities come into play. If your business is sued, you will also lose personal assets if the matter is not resolved.
Along with the separate business bank account, get credit card issues under that business name no matter if you were investing in your company through a personal account. There are many advantages of doing this including a higher line of credits and enhanced interest rates. Use this account only for business transactions and do not mix it up with others.
Other funding options
If your savings are not enough, you can also consider other funding options like loans. There are various categories of business loans like equipment financing, lines of credit, term loans, etc. Using this loan, you can finance fleet cars. Equipment financing will fund the purchase of office equipment like printers, etc. You can also consider this as collateral.
7. Create a rental contract
Preparing a rental contract with all the company rules printed on it is essential for every car rental business. This is an agreement between the car rental company and the client which the latter has to sign before renting a car from the company. The key objective of this contract is to remove the predicted legal issues between both parties.
Clearly mention all the terms and conditions that are to be followed by the client and also what a client can look for in your service. Once your contract is ready, get it approved by your legal advisor who is experienced in managing legalities regarding the rental industry.
8. Time to hire hard-working professionals
So your plan is ready, but now you will need a team of hard-working professionals to execute this plan. You will need different professionals for various operations like receptionists, accountants for managing accounts, mechanics, customer service team, etc.
After hiring divide the team according to their department and set a team leader. Now you need to distribute the duties accordingly and keep checking if your work is done correctly. For employment also, you will need a contract and decide their wages. Here are some of the 14 tips to follow while starting your rental business.
9. Hit the internet with your car rental business software
Digital is a new era and for this, you must have a website or mobile app(optional). The better your website and mobile app, the more the customers will visit it repeatedly. Keep your services so efficient that people visit you repeatedly. For this, focus on a fast reservation process, easy-to-use interface, and active customer service which boosts customer satisfaction.
Hire a professional web developer to build your website concentrating on your brand image and services offered to retain the customers. Make sure that your website covers all the important information about your car rental company required by the targeted audience and potential customers. Highlight your social media accounts on the website for more followers.
We have a car rental management software, which offers you the following benefits:
Stay updated with your rental status: check the status of your vehicle, users, and reservations anytime with our software.
Fast reservations: Using the database, book and store the records of your bookings and reservations.
10. International travel networking sites
So congrats on establishing a car rental website and software and entering the internet. Now start searching for the international travel networking websites which is a cherry on the top of the cake as you can publish your entire fleet checklist there and create an international client database. So create your account there and move ahead.
11. Promote your website through digital marketing
So hold your breath for the ending as it is the last step in the guide to begin your car rental business. Promoting your business on digital platforms is the best approach to marketing.
Over millions of people use social media including Facebook and Instagram, hence it is the best way of promoting your business. These platforms come with a special marketing option for business accounts to promote their services. Organizing collaborations, offering exciting deals to customers, and running ad campaigns on social media is a great tool to create a customer base.
To compete with your competitors SEO(Search Engine Optimization) comes into the picture. SEO will help your website to rank in Google results and hence more people will click on it. This can be done by analyzing what your competitors are doing and using keywords in the blogs you publish to boost your brand image.
All the best for beginning your car rental business