Vehicles are in high demand in almost every city.
For that reason, starting a van rental business is a great idea. Keep in mind that this service has become competitive, so you should strive to offer something unique to your customers.
You can run a contract or daily hire operation, depending on your business model. Of course, you can also offer both services! If you’re ready for the risks and challenges in this industry, then van rental is a rewarding venture.
Read on to learn more about starting your own van rental business.
1. Draft a Business Plan
After registering your business and ensuring it’s in compliance with the current legal structure, take the time to craft a business plan.
Keep the plan simple and flexible. Remember that business plans are fluid documents — they need to adapt to future changes and anticipate different needs.
The plan should have a business summary and should address how you’ll fill the particular niche for your van rental service.
2. Get Your Fleet
You can either purchase or lease the vans depending on your initial capital.
It’s wise to start with two of three vans if you don’t have adequate funds for purchasing enough vehicles.
As your rental business grows, try to save some funds to buy more or approach banks for loans. When getting a loan, it’s possible to use your existing vehicles as collateral.
3. Insure Your Vehicles
This is an essential task on your to-do list. Insurance may seem like an additional cost, but it’s well worth the investment. It’s advisable to opt for a fully comprehensive insurance for all your vehicles.
Shop around to ensure you find the ideal package for your fleet.
You can opt for an annual policy or select ‘pay as you go’ packages. If convenient, consider extending your insurance to your customers at a cost. That means you can decide to include coverage with your 15 passenger van rental service.
4. Be Easy To Find
This typically involves promoting and marketing your business through varied channels.
Create social media pages, such as Twitter and Facebook, to connect with potential customers. You’ll also need to set up a website and list all your van vehicles. With a site, you save customers’ time by showing the availability of your vans.
Strive to offer quality service. Do this, and your customers will be the perfect tools for marketing. Consider using pay-per-click advertisements, which you can optimize to show up on SERPs.
The Bottom Line On A Van Rental Business
If done well, a van rental service can be a lucrative business.
Take the time to understand your target market and get to know your competition and customer needs. You’ll also want to target corporate clients to ensure your stream of customers is consistent.
Most importantly, always ensure your vehicles are in good condition.
Instead of having your own service team, you can always talk with nearby vehicle repair service for a special service. Also, get a fleet management tool. This will help you stay on top of your day-to-day operations.