Scenic Vans is a custom van rental company and manufacturer based in the Sacramento Area. We currently have a fleet of 10 custom sprinter vans that we rent out for vacations and for people to "Try Before They Buy." We also have an efficient manufacturing shop making custom vans (both for our rentals and private customers). In our first year we rented over 1200 nights and we our projected to rent over 2000 nights for our second year We are currently earning over $100,000 per month in revenue and are projected to have over a million in revenue in Year 2.
Scenic was started by Kevin and Emily Fannan, who during the pandemic decided to sell their belongings and move into a custom campervan and travel the country while they worked remotely (Kevin as an attorney, and Emily as a mental health therapist). Along the way they were asked by family and friends where they can rent a similar vehicle and in doing research they discovered such businesses were few and far between. Scenic started as a garage side hustle and quickly exploded into a multifaceted hospitality and manufacturing business.
Why We Need the Funds?
In summary, we need capital to expand our operation to:
1.) Increase Total Production of Custom Vans
2.) Decrease Production Time of Custom Vans
3.) Reduce Costs of Custom Vans
4.) Expand the Rental Fleet To Meet Demand with Higher Earning Vehicles
We are seeking $600,000 which will allow us to increase revenue and profit significantly.
Below I will identify each problem we have more specifically and how an investment would solve our issue.
Cabinet Manufacturing.
Problem: We design our cabinetry on AutoCad and contract out the production to van cabinet makers who cannot keep up with our demand. Our production time is limited by the ability of others to perform. Additionally, we are spending more on cabinetry than we have to if we made it ourselves.
Solution: We need a high quality CNC machine and paint booth to construct our own cabinetry at an efficient and cheap pace.
Cost for Solution - $100,000
Inventory.
Problem: Because we started this business at home, and expanded so quickly, we do not have the cash flow to have a significant inventory of products in stock. We currently buy inventory as we go based on our current cash flow needs. This often delays production, increases costs of products purchased, and prevents us from doing more projects.
Solution: Maintain a significant inventory of van related products (such as batteries, fans, wood, etc.) Also purchase forklift to take larger orders of materials like wood.
Cost for Solution: $100,000
Rental Fleet:
Problem: Our original rental vans we purchased do not meet the quality standards of our current builds. They have more problems and lead to customer service discounts. We also do not have enough vehicles to meet the demand.
Solution: Sell off older vans, purchase and build five new campervans.
Cost for Solution: $275,000
Facility:
Problem: Our current facility has three bays for van production, has no air conditioning (and it gets over 110 in some months in Sacramento). We cannot possibly build anymore vans unless we get a bigger facility with proper equipment.
Solution: Rent an 8000-12000 square foot facility with higher roofs to accommodate a CNC machine, 10 van bays, and a lift capable of raising a Sprinter. Outfit the facility with a proper reception area for rental customers and build leads and create office space suitable for high volume sales and customer service.
Cost for Solution: $75,000
Working Capital:
Problem: We often delay purchasing things because of cash flow issues. We have tons of accounts receivable, but our projects are often delayed because of cash flow.
Solution: Maintain a working capital reserve to ensure cash flow does not get in the way of van maintenance or construction.
Cost for Solution: $50,000
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