There is a big demand in the van rental business for consumers and businesses alike who need large-capacity vehicles for a short period of time. As with any lucrative business, there is also competition. To be successful, follow these suggestions to scale a van rental business.
Before starting any business, market research can help an entrepreneur get the lay of the land. How many people in a given market need van rental? How many competitors are in the market? Knowing this information can help with developing business plans and goals. One might want to also research what van rental could be used for and how many businesses in the area would benefit from rental van utilisation. Business-to-business sales could make up a large percentage of overall revenue.
Comply with All State and Local Regulations
Make sure all insurance premiums are paid and that only passengers allowed to rent and drive the vehicles are occupants. Be sure that the vans are well-maintained, regularly inspected, and always up to code. Similarly, make sure the business has great customer service, that all financial transaction rules are followed, and that data privacy is ensured when collecting any identifiable customer information.
Consider a Franchise Opportunity
Franchise opportunities in any business can make starting a business much easier, as the parent company has often done most of the heavy lifting. There are several van rental franchises to consider, and with an established brand, success may come sooner than later.
Consider All Costs and Ensure Viability
When starting a van rental business, be sure to inventory the fleet, needed materials, maintenance, payroll, equipment expenses, building costs, and all other expenses for three years. Statistically, many businesses do not turn a profit until they’re in their third year, so by having enough startup capital to maintain the business during this time, there is a better chance the business will succeed.
Nowadays, there are very many advertising platforms, from billboards to business cards. Consider social media. Today, social media cost-per-click or cost-per-impression advertising can be had for relatively cheap compared to other platforms. In a given community within 25 miles of the van rental location, social media ads can be specifically targeted to businesses and areas where the need for van rental may be higher. With some smart and engaging social posts, blogs, and calls-to-action, social media marketing could push up the business goal timeline.
Follow Up with Leads
Whether using social media or another type of advertising, be sure to reach out to leads or potential customers on a regular basis. Once area businesses are identified as potential customers, reach out to them with discount offers and creative incentives. Host events at the place of business that could draw in possible leads who may have not known about the business at all. Attend fairs and community events with a marked van advertising the business. Be sure to have an employee drive around in this branded van as often as possible.