Car Rental Business plan Essay

The purpose of this credit line send off is to raise $300,000 for the evolvement of a simple machine rental agency while showcasing the expected financials and operations over the nigh three days. The gondola rental way Inc. (the union) is a cutting York establish flowerpot that depart provide the rental of economy, standard, and luxury automobiles in its targeted market. The conjunction was founded in 2009 by stool get-up-and-go.1.1 Products and ServicesAs menti singled above, the elevator car Rental Agency allow for be actively engaged in the rental of economy class, standard, and luxury vehicles for tourists and vacationers within its targeted market. A bulk of the federations tax incomes volition come from the effortless rental charges for vehicle usage. The demarcation entrust also recognize revenues from the sale of redress service and flatulency charges to customers. At the onset of operations, the troupe intends to have a leased buy the farm of 30 vehicles. The third section of the stemma plan allow for notwithstanding describe the services offered by the simple machine Rental Agency.1.2 The FinancingMr. push is seeking to raise $300,000 from as a bank lend. The interest stray and lend agreement argon to be further discussed during negotiation. This furrow plan assumes that the work depart receive a 10 year loan with a 9% fixed interest rate.1.3 Mission StatementThe gondola car Rental Agencys mission is to become the recognized attraction in its targeted market for renting affordable vehicles to the general public on a daily basis.1.4 Mangement TeamThe gild was founded by John Doe. Mr. Doe has more than 10 years of experience in the automotive industry. through with(predicate) his expertise, he pass on be able to bring the operations of the course to profitability within its first year of operations.1.5 Sales ForecastsMr. Doe expects a unafraid rate of ingathering at the start of operations. at a lower pl ace ar the expected financials over the next three years.1.6 Expansion conceptionThe come apart expects that the blood allow aggressively expand during the first three years of operation. Mr. Doe intends to implement merchandising campaigns that will effectively target individuals, tourists, and business acters within the target market.2.0 Company and Financing Summary2.1 Registered Name and unified StructureThe Car Rental Agency, Inc. The Company is registered as a corporation in the State of New York.2.2 Required FundsAt this time, the Car Rental Agency requires $300,000 of debt funds. Below is a breakdown of how these funds will be used2.3 Investor EquityMr. Doe is not seeking an investment funds from a third party at this time.2.4 perplexity EquityJohn Doe owns 100% of the Car Rental Agency, Inc.2.5 Exit StrategyIf the business is very successful, Mr. Doe whitethorn seek to divvy up the business to a third party for a significant buildings multiple. Most likely, the Co mpany will hire a qualified business broker to sell the business on behalf of the Car Rental Agency. Based on diachronic enumerates, the business could fetch a sales premium of up to 4 times earnings.3.0 Products and ServicesBelow is a description of the car rental services offered by the Car RentalAgency.3.1 Daily Car RentalsThe primary(a) source of revenue for the business will come from the direct daily rental of the Companys fleet of approximately 30 vehicles. The Company will have three tiers of rentals including economy, standard, and luxury. Management expects that 75% of all rentals will fall into the economy or standard class. A limited number of luxury vehicles will be held on the lot for wealthy tourists and business travelers. Daily charges to clients will range from $49 to $99 per day depending on the type of vehicle they intend to rent.3.2 Insurance Fees and Ancillary ServicesIn addition to daily charges made to vehicle renters, the Company will earn secondary strea ms of revenue from the sale of additional insurance. This is an important secondary steam clean of revenue for the business as sales of additional car insurance will generate substantial gross margins for the Car Rental Agency. Additionally, the Company will charge substantial fees to customers that do not return the vehicles with estimable gas tanks. Approximately 25% of the Companys aggregate revenues will come from the sale of insurance and gas fees.4.0 Strategic and Market analytic thinking4.1 Economic OutlookThis section of the analysis will detail the scotch climate, the car rental industry, the customer profile, and the competition that the business will grimace as it progresses through its business operations. Currently, the economic market condition in the United States is in inlet. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2009, at w hich point the economy will stupefy a prolonged recovery period. However, Car Rental Agencies typically keep in line with a strong degree of economic stability as business travelers will continue to need vehicles for their business trip needs.4.2 Industry synopsisWithin the United States, there are more than 5,000 companies (that operate one or more locations) that provide daily car rental services to the general public. Each year, these businesses aggregately generate more than $20billion dollars of revenue and provide jobs to more than 120,000 people. Aggregate payrolls in each of the last flipper years have exceeded $3.1 billion. This is a mature industry, and the future expected growth rate is expected to equal that of the general economy. As mentioned above, despite the presently high gasoline prices, the industry will continue to remain juicy as business travelers will continue to require rented vehicles during their business trips.4.3 customer ProfileIn this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits overwhelm income size, type of business/occupation how far external from your business is to your customer, and what the customer is looking for. In this section, you can also vagabond demographic information about your target market including population size, income demographics, level of education, etc.4.4 Competitive AnalysisThis is one of the sections of the business plan that you moldiness write completely on your own. The key to writing a strong competitive analysis is that you do your research on the topical anaesthetic competition. develop out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the alike(p) industry (meaning that it is not feasible to describe each one) then shop window the number of businesses that compete with you, and why your business will provide customers with ser vice/products that are of better quality or less expensive than your competition.5.0 merchandising PlanThe Car Rental Agency intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Car Rental Agency.5.1 Marketing Objectives Establish relationships with airports and travel agents surrounding the target market. Implement a local campaign with the Companys targeted market via the use of flyers, local newspaper advertisements, and word of brim advertising. Develop an online presence by developing a website and placing the Companys name and contact information with online directories.5.2 Marketing StrategiesMr. Doe intends on use a number of marketing strategies that will allow the Car Rental Agency to easily target tourists and business travelers coming to the target market. These strategies include traditional print advertisements and ads pl aced on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. The Car Rental Agency will also use an internet based strategy. This is very important as many people seeking local services, such as car rental agencies, now the Internet to acquire their preliminary searches. Mr. Doe will register the Car Rental Agency with online portals so that potential customers can easily reach the business.The Company will also develop its own online website, which will include functionality for people to phonograph recording and pay for vehicle rentals directly through the Companys online platform. This marketing feature is common to most companies that rent cars to the general public. The Company will also place advertisements on major travel portals such as Expedia, Orbitz, and Travelocity. Mr. Doe will also develop relationships with local travel agents that will make arrangements for rentals among people that are tra veling through the target market.5.3 determineIn this section, describe the pricing of your services and products. You should provide as a great deal information as realizable about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page. 6.0 Organizational Plan and Personnel Summary6.1 Corporate Organization6.2 Organizational Budget6.3 Management BiographiesIn this section of the business plan, you should write a two to quaternary paragraph biography about your work experience, your education, and your skill set. For each possessor or key employee, you should provide a briefbiography in this section.7.0 Financial Plan7.1 Underlying Assumptions The Car Rental Agency will have an annual revenue growth rate of 16% per year. The loan will have a 10 year term with a 9% interest rate. The Owner will acquire $300,000 of debt funds to develop the busin ess.7.2 Sensitivity AnalysisIn the event of an economic downturn, the business may have a decline in its revenues. However, among business travelers, renting a car is a necessity. As such, the Car Rental Agency will be able remain profitable despite a flatten out off in tourist activity. 7.3 Source of Funds7.4 ordinary Assumptions7.5 kale and Loss Statements7.6 Cash hightail it Analysis7.7 Balance Sheet7.8 General Assumptions7.9 Business RatiosExpanded Profit and Loss StatementsExpanded Cash Flow Analysis