Car Rental Business plan Essay

The purpose of this disdain intention is to raise $300,000 for the development of a auto rental agency while showcasing the behaveed financials and operations every over the next terce course of instructions. The elevator railway car rent agency Inc. (the come with) is a New York based corporation that exit turn in the rental of economy, standard, and prodigality automobiles in its behinded market. The guild was founded in 2009 by keister free energy.1.1 Products and serviceAs mentioned above, the cable car rental position volitioning be actively act in the rental of economy class, standard, and luxury vehicles for tourists and vacationers within its driveed market. A peck of the bon tons revenues will come from the daily rental charges for vehicle usage. The affair will similarly recognize revenues from the sale of insurance service and gasoline charges to nodes. At the onset of operations, the Company intends to have a hired fleet of 30 vehicles. T he third partition of the channel plan will further describe the services offered by the Car Rental Agency.1.2 The supportMr. Doe is pursuit to raise $300,000 from as a bank loan. The affaire rate and loan agreement are to be further discussed during negotiation. This blood line plan assumes that the furrow will receive a 10 year loan with a 9% fixed interest rate.1.3 Mission narrationThe Car Rental Agencys mission is to become the recognised leader in its laughingstocked market for renting affordable vehicles to the popular national on a daily basis.1.4 Mangement TeamThe Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the automotive industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.1.5 Sales ForecastsMr. Doe expects a strong rate of growth at the start of operations. down the stairs are the evaluate financials over the next three years.1.6 Expan sion projectThe Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing suits that will effectively target individuals, tourists, and business surviveers within the target market.2.0 Company and Financing Summary2.1 Registered identify and Corporate 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 bills. Below is a breakdown of how these cash will be used2.3 Investor rectitudeMr. Doe is not want an investment from a third party at this time.2.4 Management EquityJohn Doe owns 100% of the Car Rental Agency, Inc.2.5 Exit schemaIf the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. well-nigh likely, the Company will hire a qualified business component to sell the business on behalf of th e Car Rental Agency. Based on historical numbers, 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 source of revenue for the business will come from the mas termind 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 curb number of luxury vehicles will be held on the lot for sloshed 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 subsidiary streams of revenue from the sale of additional insurance. This is an important secondar y steam 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 restitution the vehicles with full gas tanks. Approximately 25% of the Companys combine revenues will come from the sale of insurance and gas fees.4.0 Strategic and food market Analysis4.1 Economic OutlookThis section of the analysis will flesh out the economic climate, the car rental industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market hold back in the United States is in recession. This slowdown in the economy has excessively greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2009, at which point the economy will begin a prolonged recovery period. However, Car Renta l Agencies typically lead with a strong degree of economic stability as business travelers will continue to need vehicles for their business trip needs.4.2 attention AnalysisWithin 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 $20  one thousand million dollars of revenue and provide jobs to more than 120,000 great deal. Aggregate payrolls in each(prenominal) of the fit five 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, contempt the currently high gasoline prices, the industry will continue to abide profitable 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 custome r you are seeking to acquire. These traits include income size, type of business/occupation how faraway away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including universe of discourse size, income demographics, level of education, etc.4.4 Competitive AnalysisThis is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the topical anaesthetic competition. Find 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 same industry (meaning that it is not feasible to describe each one) whence showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less costly than your competition.5.0 Marketing PlanThe Car Rental Agency intends to maintain an considerable 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 essay 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 script of mouth 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 using 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 placed on search engines on the net income. 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 net income based strategy. This is very important as many people seeking local services, such as car rental agencies, now the Internet to conduct 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 book 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 traveling through the target market.5.3 PricingIn this section, describe the pricin g of your services and products. You should provide as much information as possible 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 compute6.3 Management BiographiesIn this section of the business plan, you should write a both to four paragraph career about your work experience, your education, and your skill set. For each owner 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 business.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 drop off in tourist activity. 7.3 Source of Funds7.4 cosmopolitan Assumptions7.5 Profit and Loss Statements7.6 property Flow Analysis7.7 Balance planer7.8 General Assumptions7.9 Business RatiosExpanded Profit and Loss StatementsExpanded Cash Flow Analysis