Starting an exotic car rental business can be a great way to make money while enjoying some of the world’s most beautiful cars. However, there are a few things you need to know before getting started.
Here are the 9 steps you can take to get started on building your very own exotic car rental business.
9 Steps to Launching a New Exotic Car Rental Business
1. Name Your Exotic Car Rental Business
Give your exotic car rental business an identity so people will think of it as a well-known and respected brand. You can take the name of your exotic car rental business from your industry, focus on a geographical location, or use your own name among other options.
The main goal for naming your exotic car rental business is to make it sound appealing and trustworthy so people will want to use your service.
2. Determine Your Exotic Car Rental Business Model
There are several possible types of business models for an exotic car rental business including:
- Buying and renting out exotic cars
- Leasing exotic cars from manufacturers
- Membership club with access to a fleet of exotic cars
No matter which model you choose, make sure that it aligns with your business goals and the products and services you offer.
Read more about choosing the right business model for your exotic car rental business.
3. Choose a Legal Form for Your Business
By incorporating your exotic car rental business, you will limit your liability. You can incorporate as a Limited Liability Company (LLC), a C Corporation (C-Corp), or an S Corporation (S-Corp). Or you can operate as a sole proprietorship.
The business structure you choose for your exotic car rental business will determine the amount of taxes you pay and which state or federal tax forms you need to file.
Read our article comparing the most common exotic car rental business structures.
4. Write an Exotic Car Rental Business Plan
All exotic car rental business owners should develop a business plan.
A business plan is a document that outlines the goals, strategies, and operations of a business. It can be used to secure funding from investors or lenders, as well as to guide the day-to-day operations of the business. The business plan should include information on the company’s products or services, market analysis, financial projections, and management team among other things.
When developing your exotic car rental business plan and strategy, you should think about the following questions your customers might have:
- What type of cars do you offer for rent?
- How much does it cost to rent a car?
- What is the minimum rental period?
- Is there a limit on how many miles I can drive?
- Are there any restrictions on where I can take the car?
- Do I need personal insurance?
- What types of payment do you accept?
- Do you offer any discounts or promotions?
Read our article about how to write an exotic car rental business plan.
5. Apply for the Necessary Permits and Licenses
There may be required licenses and permits you need to obtain before launching your exotic car rental business.
For example, if you’re planning on operating your business out of a physical location, you’ll need to obtain a business license from your city or county.
You may also need to obtain specific licenses and permits related to the operation of a car rental business, such as a driver’s license, registration, and insurance.
You must also register your exotic car rental business as a legal entity with the state where you plan to do business. You can simply file an online form through your Secretary of State website.
Registering with the federal government is also essential so you can properly pay taxes for your business. You will also need an Employer Identification Number (EIN), which you can apply for at the IRS website, if you plan to hire employees.
Read our article about obtaining the proper exotic car rental business licenses.
6. Determine Your Budget & Apply for Funding as Needed
In developing your exotic car rental business plan, you will figure out how much funding you need to start and grow your business.
If you have your own funds to invest in your exotic car rental business, you may consider taking advantage of that. In addition to your personal funds, other forms of potential funding for your exotic car rental business include traditional bank loans, SBA loans, credit cards, angel investors and family and friends.
Read our article about the costs associated with starting an exotic car rental business to help you determine if funding is needed.
7. Get the Technology & Software Needed to Run Your Business Efficiently
When you start your exotic car rental business, it’s essential to have the right technology in place to maximize efficiency. You definitely need a computer with Internet access, and accounting software for tracking expenses and revenues.
You may also want to invest in software specifically designed for the car rental industry. This type of software can automate many of the processes involved in running your business, such as reservations, payments, and vehicle maintenance.
Read our article about the technology and software you need to run an exotic car rental business.
8. Market Your Exotic Car Rental Business to Potential Clients
Before you start selling your products and services, you have to let the world know you exist. The first step is to create a website so people can learn more about your products and services and how they benefit them.
After you launch your website, start promoting it through social media channels like Facebook, LinkedIn and Twitter. Also consider networking with other people in the exotic car rental industry through social media and blogs so they can help share your business.
You also need to start gathering the materials needed to execute on your promotions strategy, which is your strategy for attracting new customers. Exotic car rental businesses should consider the following promotional strategies for which you should start getting prepared:
- Offer a free day of rental for first-time customers
- Host a contest on social media for a free day of rental
- Give a discount to customers who refer a friend
- Run a promotion for select days of the week
- Offer a discounted price for extended rental periods
- Provide complimentary pick-up and drop-off service for customers
- Give a discount to AAA or AARP members
- Offer discounts to military personnel and their families
- Create a loyalty program for returning customers
- Give a discount to students or seniors
- Sponsor a local event related to your business
- Advertise in local publications
- Create a blog and write articles about topics related to your business
- Give a discount to customers who book their rental online
- Participate in trade shows related to your industry
Read our article about how to market your exotic car rental business for more tips.
9. Get New Clients & Grow Your Business
When you promote your products and services, you’ll start to get interest from potential clients.
Make sure you’re ready to serve these clients. Also, be sure to establish systems to ensure consistency and reduce costs. And be sure to find and train the right people to help you grow your exotic car rental business.
Read our article about how to effectively grow your exotic car rental business to learn more.
Starting an Exotic Car Rental Business FAQs
Why Start an Exotic Car Rental Business?
An exotic car rental business can be a fun and exciting way to make money. It’s also a great way to meet new people and see new places. And if you love cars, it’s a perfect business for you.
What is Needed to Start a Successful Exotic Car Rental Business?
In order to start a successful exotic car rental business, you need to have the right technology in place, as well as a strong marketing strategy. You also need to find and train the right people to help you grow your business.
How Can I Start an Exotic Car Rental Business From Home?
You can start an exotic car rental business from home by establishing a workspace and home office. You’ll also need to get the right technology in place, as well as a strong marketing strategy. Then, you can start finding and training the right people to help you grow your business.
How Can I Start an Exotic Car Rental Business Online?
You can start an exotic car rental business online by establishing a website and promoting your business through social media channels. Ensure that clients can book your services online by setting up an online booking system. You can also start a blog to write articles about topics related to your business.
What are Some Tips for Starting an Exotic Car Rental Business?
To start an exotic car rental business, you need to have the right technology in place, as well as a strong marketing strategy. You also need to find and train the right people to help you grow your business.
- Get the right technology in place: You’ll need a website, online booking system, and social media accounts.
- Create a strong marketing strategy: You need to promote your business through effective marketing channels.
- Find and train the right people: The right employees can help you grow your business. Train them well and set them up for success.
- Serve your clients well: Provide excellent customer service to keep your clients coming back.
- Grow your business: Be sure to establish systems to effectively grow your exotic car rental business.
Where Can I Find a Simple Checklist for Starting an Exotic Car Rental Business?
A simple checklist to use when starting an exotic car rental business is as follows:
- Name Your Exotic Car Rental Business: This should be done with care, as your brand is important for attracting the right customers. A simple, memorable name will go a long way.
- Choose a Legal Form for Your Business: Whether you choose to become a sole proprietorship, partnership, LLC, corporation or another option will depend on your business. Ensure that you are aware of all the implications of each type.
- Determine Your Exotic Car Rental Business Model: Determine how your business will make money. Will you sell products, services, or a combination of both?
- Write an Exotic Car Rental Business Plan: Your business plan will also help you determine what your start-up costs will be and will provide a roadmap with which you can launch and grow.
- Apply for the Necessary Permits and Licenses: In most locations you will be required to apply for a business license and/or permits before you can begin operations.
- Determine Your Budget & Apply for Funding as Needed: You will need to know how much money you have to spend on all of your business-related expenses before opening any doors. If needed, apply for a small business loan or other funding options.
- Get the Technology & Software Needed to Run Your Business Efficiently: You need to have the right tools in place to succeed. Implement software that will help you manage your time, contacts, and business operations in general.
- Market Your Exotic Car Rental Business to Potential Clients: A solid marketing plan will be crucial to your success. It should focus on attracting the right customers so that you can provide them with the products and services they truly need.
- Get Clients & Grow Your Business: Once you have a solid marketing plan, it's time to actively pursue and secure those who could benefit the most from your products and services.
Summary
Starting an exotic car rental business can be an exciting and profitable venture. To ensure success, make sure you research the market, have a well-written business plan, and market your business effectively. By following these tips, you’ll be on your way to running a successful exotic car rental business in no time!