Memphis is the largest city in the state of Tennessee and was established in 1819. It is a port of entry and a rail and air distribution center with a large number of industries. Memphis is the seat of many educational, health, and art institutions. With increasing population, a car rental business is one of the fastest growing businesses. Many people choose to occasionally rent the vehicles rather than put up with high maintenance, repair, and insurance costs of ownership.
Starting a Car Rental Business:
You have the option of becoming either a franchisee of any car rental company or buying your own vehicles and entering the market. Both options are now considered.
As A Franchiser:
Auto Hire is a big car rental company that can guarantee good business and opportunity for growth. The company backs all new franchisees with a comprehensive business plan that includes financing arrangements, vehicle leases, training and hiring staff, and marketing. They also have a tie-in with insurance companies to provide replacement vehicles while the insurance firm deals with the aftermath of an accident.
As A Car Rental Business Owner:
o Location. It is very important to start the business in a good, central location to generate high customer traffic. Marginal retail locations do not attract many customers. Have your own car hire counter at busy airports, rail stations, or bus depots to attract inter-city travelers.
o Finances. Start with a small, manageable fleet of cars by taking personal bank loans and
cash advances on easy collaterals from special state cells for small business entrepreneurs. A good business plan can even get you partners willing to collaborate with finances and expertise.
1. Hiring/Training Staff. It is very important to train first-line staff in the correct handling of customers. If you provide drivers or chauffeur services along with car renting, check the driving licenses. To meet federal standards, as of April 1, 1992, each state must carry out the new commercial driver license program. This includes tests of knowledge and driving skills for certain types of vehicles. Good health, good hearing, vision of at least 20/40, normal use of arms and legs, good manners and etiquette are additional requirements for chauffeurs and drivers.
2. Car Rental Rates. Lease out various types of cars to suit different customers. High-end cars, SUVs, and mid-segment to low-end cars give a wider choice to people. Vary the rates according to the car and the number of days it is rented for. Some car rentals give unlimited mileage on most vehicles as a means of enticing new customers. Some even provide free chauffeur services or expensive cars for important occasions.
3. Tie-In with Local Car Insurance Companies. A tie-in with insurance companies to rent replacement vehicles while they deal with the aftermath of an accident or mishap can be an added attraction.
Starting a car rental business in Memphis, Tennessee, can be a very paying proposition. You have the option of running the business either as a franchisee or as a car rental business. A good business plan and attention to essential details will ensure that your venture is a success.
