Starting a self-drive car rental business can be a great way to make money while also providing a valuable service to your community. There are a few things you need to do in order to get your business off the ground.
Here are the 9 steps you can take to get started on building your very own self-drive car rental business.
9 Steps to Launching a New Self-Drive Car Rental Business
1. Name Your Self-Drive Car Rental Business
Give your self-drive 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 self-drive 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 self-drive car rental business is to make it sound appealing and trustworthy so that customers will want to use your services.
2. Determine Your Self-Drive Car Rental Business Model
There are several possible types of business models for a self-drive car rental business including:
Franchise
Start-up
Online business
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 self-drive car rental business.
3. Choose a Legal Form for Your Business
By incorporating your self-drive 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 self-drive 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 self-drive car rental business structures.
4. Write a Self-Drive Car Rental Business Plan
All self-drive 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 self-drive car rental business plan and strategy, you should think about the following questions your customers might have:
- What is a self-drive car rental business?
- What services does your self-drive car rental business offer?
- How do I know I can handle a self-driving car rental?
- Will I receive any training before I get into a self-drive car?
- What are the advantages of renting a self-drive car versus a typical car?
- What are the risks and challenges of operating a self-drive car?
- What are the benefits or pleasures of riding in a self-drive car?
- I want to create a memorable experience; will a self-drive car offer that?
Read our article about how to write a self-drive 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 self-drive car rental business.
For example, if you will be operating your business out of a brick-and-mortar location, you will need to obtain a business license from your city or county. If you will be renting cars, you may need to obtain a special license from the Department of Motor Vehicles in your state.
You must also register your self-drive 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 self-drive car rental business licenses.
6. Determine Your Budget & Apply for Funding as Needed
In developing your self-drive 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 self-drive car rental business, you may consider taking advantage of that. In addition to your personal funds, other forms of potential funding for your self-drive 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 a self-drive 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 self-drive 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 customer relationship management (CRM) software to help you manage your customers, as well as appointment scheduling software if you plan to offer appointments for car rentals.
If you will hire employees, you may also need human resources (HR) software to track employee information such as time off and payroll.
In addition, if you plan to have a website for your self-drive car rental business, you will need to invest in web hosting and a domain name.
Read our article about the technology and software you need to run a self-drive car rental business.
8. Market Your Self-Drive 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 self-drive 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. Self-drive car rental businesses should consider the following promotional strategies for which you should start getting prepared:
- Special offers and discounts
- Sponsoring events
- Advertising in local publications
- Creating a blog and social media pages
- Distributing flyers or brochures
- Offering package deals
- Participating in trade shows
- Setting up a booth at a local mall
- Getting involved in the community
Read our article about how to market your self-drive 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 self-drive car rental business.
Read our article about how to effectively grow your self-drive car rental business to learn more.
Starting a Self-Drive Car Rental Business FAQs
Why Start a Self-Drive Car Rental Business?
There are many reasons why you should start a self-drive car rental business. Self-drive car rental businesses offer customers the convenience of renting a car without having to worry about driving it themselves. This can be especially beneficial for people who don’t own a car or who live in an urban area where public transportation is unavailable.
Self-drive car rental businesses can also be a great option for people who want to start their own business with a low investment. And, because self-drive car rental businesses are often open 24 hours, they can be a great option for people looking for a flexible schedule.
What is Needed to Start a Successful Self-Drive Car Rental Business?
There are a few things you need to start a successful self-drive car rental business. First, you need a computer with internet access and accounting software to track expenses and revenues. You may also want to invest in customer relationship management (CRM) software to help you manage your customers, as well as appointment scheduling software if you plan to offer appointments for car rentals.
In addition, you will need a fleet of self-driving cars to rent out. You may want to purchase these outright or lease them from a dealership. Whichever option you choose, be sure to get the appropriate insurance to cover your vehicles.
You will also need a place to store your vehicles when they’re not being rented. This can be a garage or parking lot. If you don’t have the space to store your vehicles, you may want to lease space from a storage facility.
How Can I Start a Self-Drive Car Rental Business From Home?
Starting a self-drive car rental business from home is a great way to save on overhead costs. To get started, establish a workspace and home office. You will need a computer with internet access and accounting software to track expenses and revenues. You may also want to invest in customer relationship management (CRM) software to help manage your customers, as well as appointment scheduling software if you plan to offer appointments for car rentals.
How Can I Start a Self-Drive Car Rental Business Online?
Starting a self-drive car rental business online is a great way to reach a larger audience of potential customers. To get started, you will need a computer with internet access and accounting software to track expenses and revenues.
Establish a website and ensure that clients can book your services online. Thus, you'll need to invest in a good web hosting service and website design. You will also need to choose an appropriate domain name for your business. In addition, you will need to secure a payment processor so that you can accept online payments.
What are Some Tips for Starting a Self-Drive Car Rental Business?
There are a few things you should keep in mind when starting a self-drive car rental business. First, make sure you understand the needs of your target market and what they’re looking for in a self-drive car rental business. Second, establish systems to ensure consistency and reduce costs. And, third, find and train the right people to help you manage and grow your business.
Where Can I Find a Simple Checklist for Starting a Self-Drive Car Rental Business?
A simple checklist to use when starting a self-drive car rental business is as follows:
- Name Your Self-Drive 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 Self-Drive Car Rental Business Model: Determine how your business will make money. Will you sell products, services, or a combination of both?
- Write a Self-Drive 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 Self-Drive 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 a self-drive 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 self-drive car rental business in no time!