CAR RENTAL BUSINESS PLAN

DAS CAR RENTAL BUSINESS

INTRODUCTION

Das Car Rentals is a new, independently-owned car rental service in Jadavpur, India. It will be
solely-owned by local entrepreneur Rohit das. Rohit will provide car rentals to residents of
Jadavpur and visitors to the city who need a vehicle for a few days. Rohit initial fleet of vehicles
will include two sedans, 1 truck, 2 large SUVs, and 2 luxury vehicles. Through his market
research, Rohit found that visitors to the city need a sedan to get them around for a few days so
that they don’t have to rely on public transportation. There are also residents who sometimes
need to rent a truck for a day or two while they move something large. There is also a demand
for people to want to rent a luxury vehicle for a few days so they can use it for a special
occasion without having to put a large investment to purchase one of their own.

Das Car Rentals will be located near the airport in the central part of town. For now, he will run
the business himself and will handle all client communication and management of his fleet.
Rohit will partner with a local car wash that is located next to his location to provide all the wash
and detailing needs for returned vehicles. He will also partner with a local automotive shop to
provide mechanical service that may be required to do maintenance or repair.

Statement of Financial

Das Car Rentals is seeking RS.500,000 in debt financing to open the car rental
business. The funding will be dedicated to the purchase of the seven vehicles,
commercial liability auto insurance of the fleet, website development, billboard design,
photography, and working capital. The breakout of the funding is below:

 Office space with small parking rent (secure the space): RS.1,00,000
 Purchase of two economical sedans:RS.40,000
 Purchase of truck: RS.6,00,000
 Purchase of two large SUVs: 18,00,000
 Purchase of two luxury cars: 40,00,000
 Insurance and bonding: 70,00,000
 Website & Advertising development: 250000
 Working capital: 35,00,000
ORGANIZATIONAL PLAN
 Marketing Plan

Brand & Value Proposition

Freddy’s Fine Car Rentals will offer the unique value proposition to its clientele:

 Friendly, courteous, fast, and professional customer service.

 Most cost effective rates in town. Freddy’s will be able to undercut the entire
competition.
 Freddy’s fleet of vehicles has a vehicle for all individual needs.
 24-hour service. Freddy will be available at all hours as he understands people fly or
drive into town at all hours of the night.

Promotions Strategy
Freddy’s Fine Car Rentals will utilize traditional marketing concepts with modern promotions in
order to reach a greater audience.

Social Media

Freddy will create business profiles on Facebook, Instagram, and Twitter. He will use guerrilla
marketing tactics and obtain followers by requesting followers of the competitors followers in
the area.

Partnerships with Local Hotels

Freddy’s Fine Car Rentals will approach local hotels and request partnerships with them. By
being a partner, anyone who books through the hotel can receive a discount on their car rental. In
exchange, the hotel will allow Freddy to leave his brochures and the front desk agents can
recommend Freddy to their guests who are requesting car rental service.

Website & SEO

Freddy will develop an attractive and professional website for his business. It will have pictures
of his available fleet, rental online options, location, and phone number.

Pricing

The pricing of Freddy’s Fine Car Rentals will be moderate and on par with competitors so
customers feel they receive value when purchasing our services.
Operations Plan

Freddy’s Fine Car Rentals will utilize the following operations plan.

Operation Functions:

 Freddy Montgomery will manage all aspects of the business. He will oversee
scheduling, client communication and satisfaction, billing, and accounts payable.
He will also manage the social media for the business.
 Freddy will hire an outside accounting firm to handle all tax obligations and
accounting.
 Freddy will also partner with a local car wash company. He will take every car to
the car wash company as soon as it is received back from the customer.
 When required, Freddy will pay his brother to follow him when he needs to pick
up a client and his brother will drive him back so that the client can take the
rented car.
 As Freddy’s Fine Car Rentals grows, Freddy will add employees to assist with a
larger scaled operation.

Milestones:

Freddy’s Fine Car Rentals will have the following milestones complete in the next six
months.

6/1/202X – Finalize lease agreement for small office space near airport. It will be a small
building that has room for parking.

6/15/202X – Purchase 7 vehicles from two different local dealerships.

6/16/202X – Purchase large commercial liability insurance policy to cover the entire fleet
of vehicles.

6/20/202X – Hire advertising company to develop the website, billboard, and take
professional photos of the vehicles to use on the website and for social media postings.

7/1/202X – Freddy’s Fine Car Rentals officially opens for business and can begin to rent
out the vehicles.