There are many ways to set up a potential car rental business. A business of renting cars is usually very profitable. It starts to give returns in a very short span of time. The investment needed is significant but the returns and their regularity make it worth it. Before starting g w car rental business, it is worth having a checklist at hand that marks all the factors that need to be taken care of. There are financial, legal, social and cultural factors that impact the business. Some of these factors are internal while others are external.
The internal factors can be classified as strengths and weaknesses. Strengths are factors that support a business in the pursuit of its objectives. Weaknesses are internal factors that hinder a business from achieving its objectives. It is possible for a business to have many different strengths and weaknesses at the same time. A strength for a car rental in Perth airport business might include its fleet of cars. A business with a bigger fleet of cars stands t an advantage when compared to its competitors. Similarly a business with less variety in the cars it has on offer stands at a disadvantage.
Similarly, a business also has external factors that impact its pursuit of goals. The factors in the external environment that favour it in its achievement of its objectives are called opportunities. The external factors that hinder a business in its achievement of its objectives are known as threats. Like strengths and weaknesses, a business might simultaneously have many different opportunities and threats. For a car rental business, the opportunities include tapping into new markets. This includes getting new client bases to try rental cars that have not previously rented cars. Another opportunity these days it to make use of social media. Social media marketing has replaced traditional marketing to a large extent. Most businesses now have complicated social media marketing strategies. This is because most new customers are found online these days. The businesses that make the best use of these opportunities are the ones that succeed the most.
Threats include competitors that are more savvy when it comes to coal media and marketing. Another threat for car rental businesses is the emergence of ride sharing apps. Ride sharing apps are more convenient for most users. Their pricing is more transparent and on some cases, they are exempt from taxes. This makes them potent competitors and car renters should take note of the fact. Those who ignore the threat do so at their own peril. Businesses that do not take care of the threats presented by the environment run the risk of failing. Another thing that might be considered an opportunity or a threat is the government legislation that deal with the rental business which can either be a support of a hindrance.