Currently, vehicle sharing is a trending business across the country. Due to the flexibility and ease of use provided by those service providers, car sharing programs are getting more and more popular in the society. The car sharing programs have also changed the traditional mindset of people to own a car, since those programs are providing a large variety of cars to their customers, including many premium range vehicles, at an affordable range. Even though car sharing programs comes with some inbuilt risks, starting a car sharing company is comparatively easy and profitable. The basic steps required to start a car sharing company are as follows.
Analyze the Market
Since it is a trending business, there will be many people planning to enter the same industry. So the firstly, before commencing the business, a detailed market study is required to understand in more detail about the existing opportunity. The evaluation of the market should include the following.
- The average number of customers in the market
- The strength and weakness of competitors
- Any alternative for pursuing business is existing in the market, which can act as a potential competitor.
Identify Your Unique Quality
The next step after analysis of the business environment is to identify the core competence or the unique feature that the promoter can offer to the consumers. It can be at any level like in cost, customer service, etc. Identification of such a characteristic is important, since that can differentiate the commencing business from its competitors.
Choosing the Technology
Technology is an inevitable part of the car sharing business. This program require not only a large number of cars to provide for its customers but also an excellent technology to ease the business process such as a simple and effective web portal for the customers to reach the business, appropriate GPS trackers to locate the shared cars, appropriate safety and security measures within the car to make the customers comfortable, and finally a secure server to store the customer information and an effective program to ease the activities within the business.
Evaluating the Budget
The last but not the least step is to evaluate the budget of the planned business. After assessing and drafting an overall plan, the next step is to evaluate the appropriate cost required for the commencement and working of the business. This will provide an idea of the overall expense of the business. After the evaluation of expenditure, the next step is to calculate the expected return from such a business.
If the expected return is more than the evaluated expense, it would be ideal to start the business, but if the difference between return and expense is nil or negative, then it would be better to redraft the business strategy to make it profitable.