It’s all about the right state of mind. When you’re starting or trying to advance your business, ask yourself questions like these, and stay involved in every aspect of your business.
- How long has it been since you’ve taken a good look at your business concept and plans?
- Do the fleet and services offered reflect the local demand and requirements?
- Do you have clear goals and detailed plans?
- Are you working toward those goals or is your focus on the daily routine?
Don’t be afraid to be obsessed with the numbers as the car rental industry requires precision, just as much, if not more, than a typical banking system. Take your time to look at every possible angle of the business, including, but certainly not limited to, revenue per car, fleet usage, average length of rental, number of reservations form different sources and so on.
Stay focused on what you want your business model to achieve, yet be flexible and adapt to market fluctuations. Empower your employees to perform in order to achieve benchmarks set up by the company and the industry itself.
Constantly challenge your business concept, never consider it to be final. From time to time, look at your fleet mix and size, customer segmentation, market rates, technology and the people operating your business and making things move the right direction.
When acquiring the fleet, know exactly when, where and how you’re going to use the returning vehicles. If the aftermarket requires extra equipment and specific descriptors, like a specific make & model or color, try to add them while selecting the fleet to be purchased.
Be very accurate so as not to neglect your sales and marketing either via B2B or via B2C channels depending on your core goals. Without specific sales and marketing goals and activities, you’re just another rental company that will most likely grow only if the mainstream demand does.
Be sure you have defined your business with a unique description that makes you different and that you’ve made your customers aware of that distinction. Your business’s unique characteristics create opportunities. Expect the customer to pay you more if they perceive it as a value. Many companies go off track when they try to sell too many services or solutions to too many segments, rather than concentrate on a few offerings to a very specific niche. By being a niche performer, you can often grow even quicker.
Look for marketing alliances and affiliation such as with other major car rental players in other cities or regions, travel networks and car rental platforms like www.vehicle-rent.com.
Manage your revenue and fleet usage by adjusting the real-time prices and other components, like amount of days and included products. Car rental professionals that do this correctly have been shown to enable themselves to boost revenue by an extra 10-20 per cent on the top of the base revenue. Car Target™ platform makes this truly simple.
Be very transparent with your customers, they should always be aware of anything special and important about your rental agreement as this creates customer trust in your services, thus increasing the share of returning customers.
The financial section of the plan must also include projected profit and loss statements, cash flow statements, and balance sheets. These numbers are, of course, critical when looking for potential investors or for obtaining a bank loan. Investors will always consider the amount of funding needed versus their expected return on investment. So, no matter what you do, you’ll make it through. Good luck!