University Mopeds has presented a mopeds rental business plan that is comprehensive and well researched. This small business has a great chance of success as they have clearly identified a considerable market that needs the services that they can provide. The mopeds rental sample business plan takes into account capital investment, profit margin returns and other expenses such as insurance and advertising. Cash flow predictions are credible as payment will be required upfront. Currently on campus, students have two problems regarding transport, firstly the lack of parking places and a very poor bus service, students will be clamoring to have the mopeds at their disposition. The moped service is not limited to students but anyone who needs transportation to get around town.
There is a possibility for an exciting and profitable new business in Eugene, Oregon. University Mopeds will to rent mopeds to University of Oregon students, as well as anyone who would have a need for efficient, around-town transportation. There is currently no business like this, in Eugene, which caters to this market.
For slightly more than the cost of a monthly cellular phone bill, it is possible for a student to have their own mode of transportation during the school year. Mopeds have many positive advantages over cars: lower operating costs, fuel efficiency, and are less costly to maintain. It is also possible to insure these vehicles for around $30-$50 per year.
The target market for this business would be the approximately 15,000 full-time students. There are also thousands of students who are commuting daily from the Autzen Field area. Parking on campus is hard to find, and the bus offers few options. This is where the economical moped comes into play.
Many students do not have the disposable income that it takes to purchase a moped, but they are in a position to pay $50 per month to rent one. University Mopeds would purchase used mopeds for $400-$700 and lease them out. The average moped would be paid off in under one year.
In year one, University Moped would attempt to get 1% of all full-time students. This would equate to 150 mopeds rented. We expect the five year growth rate to be at least 15%.
Assuming an average purchase price of $550, and a ten month rental contract at $50 per month, it is possible for University Mopeds to be profitable in year two.
Rent 150 units in year one.
University Mopeds will be fully self-sufficient and profitable by year three.
Rent at least 199 units by year three and 263 units by year five (15% annual growth rate).
University Mopeds will service the student first. At University Mopeds, clients will be able to rent a quality means of transportation at a fair price. University Mopeds will also be a profitable business which will treat employees fairly and provide financially for its owners.
1.3 Keys to Success
Good customer service and value.
Affordable rental prices.
Reaching the target market.
Integrity in serving our customers; resulting in repeat purchases.
Get the entire sample plan and everything you need to customize it for your business.