Legacy Car Rentals, based in St. Louis, aims to expand its fleet by purchasing 10-40 additional vehicles with a $300,000-$1.5 million investment. This expansion will increase our fleet to currently from 15 vehicles, enabling us to increase our demand and revenue.
Legacy Car Rental aims to become a leading provider of rental cars by offering a wide range of vehicles, exceptional customer service, and competitive pricing. Our target market includes tourists, business travelers, and local residents. We plan to leverage technology to streamline operations and enhance the customer experience. I (Haris Vlahovljak) was with Avis Budget Group for 12 years as an Agency Operator that generated over $15M in revenue for Avis Budget.
Company Description:
Legacy Car Rentals has been serving the St. Louis area with a fleet of 15 vehicles. (YTD Revenue is at $253, 425 with starting with only 4 cars in January of 2024) Our mission is to provide reliable, affordable, and high-quality car rental services to both residents and visitors. Our commitment to customer satisfaction and vehicle maintenance has earned us a loyal customer base.
Market Analysis:
St. Louis is a bustling metropolitan area with a significant demand for car rental services, driven by tourism, business travel, and local rentals. The car rental market in St. Louis is expected to grow by 5% annually. Our expansion will position us to capture a larger market share and meet the increasing demand. Our current utilization rate is at 97%. The car rental market is growing due to increased travel and tourism. Our primary competitors include major rental companies like Enterprise and Avis Budget Group. However, we see an opportunity to capture market share by focusing on customer satisfaction and offering unique services such as door-to-door delivery and 24/7 roadside assistance.
Services Offered:
- Short-term and long-term car rentals
- Corporate rental programs
- Churches & School Athletic Programs
- Special event rentals (e.g., weddings, proms)
- Airport pick-up and drop-off services
Marketing Strategy:
1. Digital Marketing: Invest in SEO, PPC advertising, and social media marketing to increase our online presence and attract more customers.
2. Partnerships: Collaborate with local hotels, travel agencies, FBO’s and businesses to offer exclusive rental deals.
3. Customer Loyalty Programs: Implement a rewards program to retain existing customers and encourage repeat business.
4. A user-friendly website and mobile app for bookings
5. Customer referral program
Operational Plan:
- Fleet Expansion: Purchase 10-40 new vehicles, including a mix of economy, mid-size, SUVs, and luxury cars, to cater to diverse customer needs.
- Staffing: Hire additional staff for customer service, maintenance, and operations to ensure smooth functioning.
- Location: Expand our rental locations to 5706 S. Lindbergh Blvd to include key areas such as the airport and downtown St. Louis.
Financial Plan:
- Investment: $300,000- $1.5 million to purchase 10-40 vehicles.
- Revenue Projections: Minimum monthly revenue of $2,000 per vehicle.
Revenue Streams:
1. Daily Rentals: Average rental rate of $70 per day.
2. Corporate Rentals: Long-term rentals with businesses at discounted rates.
3. Special Events: Premium rates for event rentals.
4. CSI: Counter Sales (Loss Damage Waiver, Additional Supplemental Insurance, XM Radio)
Risk Analysis:
- Market Competition: Mitigated by offering superior customer service and competitive pricing.
- Economic Downturn: Diversify revenue streams and maintain a flexible pricing strategy to attract budget-conscious customers.
-Each vehicle is insured 100% at $120.50 per month. There will be no risk if the vehicle is damaged, or anything happens to the vehicles. This protects your investment and you are able to hold a lien on the units.
To differentiate from competitors in St. Louis, Legacy Car Rentals will focus on several key strategies:1. Superior Customer Service: We will prioritize exceptional customer service by providing personalized attention, quick response times, and hassle-free rental processes. This will help build a loyal customer base.2. Diverse Fleet: Our expanded fleet will include a variety of vehicles, from full size cars to luxury SUVs, catering to a wide range of customer needs and preferences.3. Competitive Pricing: We will offer competitive pricing and flexible rental packages, including discounts for long-term rentals and corporate clients.4. Convenient Locations: By expanding our rental locations to include key areas such as the airport and downtown St. Louis, we will make it more convenient for customers to access our services.5. Innovative Marketing: Our marketing strategy will leverage digital marketing, partnerships with local businesses, and customer loyalty programs to attract and retain customers.By focusing on these strategies, Legacy Car Rentals aims to stand out in the competitive St. Louis market.
Conclusion:
With a strategic investment of $300,000-$1.5 million, Legacy Car Rentals is poised to significantly expand its fleet and revenue. Our comprehensive marketing and operational plans ensure sustainable growth and profitability, positioning us as a leading car rental service in St. Louis.
This business plan outlines our path to achieving our financial goals while maintaining our commitment to customer satisfaction and service excellence.