Car Sharing, The Budding Business Venture In Town!
Car sharing has definitely begun turning into a lucrative business venture especially in today’s day and age, kudos to the ever rising gas prices and the electric green revolution which seems far from the corner. If you are a budding entrepreneur who is envisioning in breaking into this field, it would be a good idea to know what the capital might be to get the engines of this car sharing business started!
How Much Is Needed For Opening A Car Rental Business?
Well, we have taken the liberty of noting down the key areas where you will need to shell out in order to keep your car sharing business and the various car sharing services thriving!
- The first and foremost requirement in a car sharing business is a fleet of cars. The fleet must meet the demands of the demographic, and must range from high-end luxury ones, sports utility vehicles, economy vehicles, family sized vehicles and so on.
- Servicing the vehicle fleet and insurance plans for the same.
- Next, is the need for an office space with all the bare essentials from printer, computers, high speed internet connectivity and upkeep of the same which would be several hundred dollars every single month.
- On-going expenses will include payment of wages and salaries to employees, with a full time on site mechanic who would be compensated with a pay ranging from $40000 to $70000. The low level employees would be paid out anywhere from $8-$12 on an hourly basis.
- Then, the need for a full-fledged marketing team with experienced professionals demanding in the vicinity of $60000. Along with an auditor or an accountant who could be compensated the same.
- Marketing, creating awareness and promoting the car sharing business is an integral part of sustaining and expanding the business. A minimum of $1000 can be set aside for brochures, magazine and social media ads; SEO induced organic boosts, local business development involving directory listings. You will need to continuously upscalethe extent to which this is pursued as the company grows and expands gradually.
- Last but not least, just like how vehicles need insurances, be sure to insure your business as well. Get the necessary permits, for the various attributes related to the services provided by your car sharing business and also be sure to form a legal entity to ensure that you are not personally held accountable for, if for sheer bad luck your business is sued.
Over time as your business and your team grows, so will your expenses. But knowing that you could be raking figures in the millions makes your entrepreneurial journey all the more worthwhile!