Business Plan for Easy Go: Car Rental Service for Australian University Students

Easy Go is a start-up enterprise that is aimed at providing Australian university students with the scope of leasing vehicles at nominal prices for a period of two years, after which they can become owners of the vehicles. The report provides a comprehensive business plan that can be used by Easy Go for setting up its enterprise and concludes with important recommendations that the enterprise can take into consideration, to ensure that its business operations are successful in both initial and later stages.

Running head: BUSINESS PLAN
Business Plan
Name of the Student
Name of the University
Author Note

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Executive Summary
The car rental industry is one that is booming in the country of Australia largely because of
tourist inflows and the need and desire for comfortable travel among the average Australian.
However, there are few car rental companies in the country that cater to the needs and
requirements of Australian university students, especially overseas students, who need to rent
cars that they can use to get to their job locations on time and do the part time work they have to
do, in order to earn money to pay college tuition fees. Easy Go is a new up and coming car rental
business that will cater specifically to such students by making cars for rent available to these
students at affordable rates and giving them the scope of being full owners of the cars after two
years of lease have passed. This report prepares a business plan that can be used by Easy Go for
setting up its enterprise and concludes with important recommendations that the enterprise can
take into consideration, to ensure that its business operations are successful in both initial and
later stages.

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Table of Contents
Introduction......................................................................................................................................4
1. General Company Description.................................................................................................5
1.1. Brief about the Venture – Easy Go...................................................................................5
1.2. Mission of the Company...................................................................................................6
1.3. Vision of the Company.....................................................................................................6
1.4. Objectives of the Company...............................................................................................7
2. Problem Statement Identified...................................................................................................7
3. Industry Profile.........................................................................................................................8
4. Situational Analysis................................................................................................................11
4.1. Macro Environment Analysis.........................................................................................11
4.1.1. Porter’s 5 Forces Analysis...........................................................................................11
4.2. Micro Environment Analysis..........................................................................................12
4.2.1. SWOT Analysis of Easy Go........................................................................................12
5. Marketing Strategies...............................................................................................................13
6. Tentative Capitalization and Start-up Expenses.....................................................................15
7. Recommendations..................................................................................................................17
Conclusion.....................................................................................................................................18
References......................................................................................................................................19

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Introduction
Overseas students in Australian universities as well as local or domestic students in
Australia are faced with the difficult task of financing their higher studies. Higher education in
the country is becoming increasingly expensive with every passing day, and students often have
to opt for an educational loan or seek financing from their parents and relatives in order to be
able to go to college and get a university degree. The fact that students have bare financial means
to lead a quality life while pursuing a higher education degree implies that they often have to
make use of public means of transportation to get from one place to another, to perform odd jobs
or work part time jobs, or to very simply meet up their friends and associates after class hours for
a cup of coffee or a night out in town (Hsu et al. 2019). Against this particular backdrop,
offering students who are enrolled at Australian universities with the option of renting a car that
they can use to move from one destination to another is something that can prove to be very
advantageous for them. Students will be far more mobile if they have a rental car at their
disposal, especially if they are able to rent the vehicle over a long period of time and that too at
highly affordable rates. This report prepares a business plan for a start-up enterprise that is
known as Easy Go. The report provides background information regarding the business that
includes the mission, vision and objectives of the company, the problem statement or the reasons
why the business was formed in the first place, industry profile, situational analysis with
reference to Porter’s 5 Forces analysis and SWOT analysis, and marketing strategies with
reference to the 8 P’s. The report will also provide an approximate budget that this start up
enterprise shall be operating on in the initial stages of the business. The report concludes with a
number of important recommendations that the Easy Go enterprise must take into consideration

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in order to be able to market and promote its rental car service in Australian cities and towns in
the most successful of ways.
1. General Company Description
1.1. Brief about the Venture – Easy Go
Easy-Go is an enterprise that is going to provide customers with the option of renting a
vehicle, that is, a car, at an affordable price with the lease lasting for a period of two years.
Customers will be in a position to own the second hand car if they continue with the lease for the
entire length of two years. This is hugely advantageous for the customer as the customer will not
only be able to hire the car for a nominal price whenever they do hire it, but they will also be in a
position to become owners of the second hand vehicle if they pay a rental fee for the car for a
period of two years. The situation is certainly a win-win situation from the customer’s point of
view, especially for young Australian university students who are in need of vehicles in order to
be able to move around from one destination to another to do odd jobs and finance their studies.
Such students will be able to go ahead and use a car to get to university on time, attend classes,
go to the various places where they are performing part time jobs and return home once again
after they are done, in a smooth and hassle free manner. What the enterprise is specifically
aimed at therefore is helping out Australian university students, especially students who
are in need of financial help and assistance in order to be able to continue with their studies
in the country. As such, the target audience of the business is mostly the overseas Australian
students who need to work part time in addition to being full time university studies in order to
able to finance their higher education degrees. Such students, are for the most part in need of
vehicles which they can use in order to get from place to place to do their part time jobs and

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attend university classes in a stress free manner. Cars are hugely expensive to buy and most car
rental companies in the country are seen to lease out vehicles to students and other customers at
prices which are really high and which are certainly quite difficult for university students to
afford (Qian et al. 2019). .
1.2. Mission of the Company
Easy-Go is a start-up enterprise that is aimed at providing Australian university students
with the scope of leasing vehicles at nominal prices for a period of two years, after which they
can become owners of the vehicles. In a nutshell what the mission of the company happens to be
is to help out Australian university students finance their higher education courses by leasing
them cars for rent that they can then use to go to various places and do their part time jobs over
and above attending university. What is more, if they are regular customers and rent the vehicle
for a long period of time, they can ultimately become the owners of these second hand vehicles
(Dowling and Kent 2015).
1.3. Vision of the Company
The vision of the Easy Go enterprise is to become the leading car rental service provider
for students in the country of Australia. It is a business that is going to cater specifically to the
needs and the requirements of students and it intends on being recognized across the length and
the breadth of the country as an enterprise that client fulfillment as its goal and which makes car
rental and car ownership an affordable and pleasant experience for young Australian students
who are currently finding it difficult to finance their studies in Australia and who need every
possible financial assistance in order to be able to pursue their higher education degrees
(Hickman 2019).

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1.4. Objectives of the Company
 To provide customers with the hassle free experience of renting vehicles of their
choice as and when they desire.
 To provide customers with the scope of being able to hire vehicles at rates that are
affordable
 To give customers the scope or the opportunity to become full-fledged owners of the
rented vehicle if they lease the vehicle for a period of two years.
 To offer top quality car servicing facilities in the period for which the vehicle is
rented so that customers do not have to worry about having to get the vehicle repaired
on their own, with all expenses for the servicing work being borne by the enterprise.
2. Problem Statement Identified
Car rental services are readily available in the country of Australia and people living in major
Australian cities and towns such as Sydney, Melbourne and Brisbane can hire vehicles for short
or long hours in the day as per their convenience. The car rental companies in Australia offer
efficient and quality services but are known to charge a very high price for the services that they
offer. This in turn implies that car rental facilities in Australia are accessible only to customers of
a high income budget or a middle income budget. Many people who are in need of car rental
services in the country are unable to access these services because of the high price that is
associated with such services. This is especially true for foreign students who are pursuing
higher degree education courses in Australia. Foreign students are in need of vehicles in order to
make their way to places of work, where they hold part time positions, and also vehicles that
they can use to get to university in a timely manner in order to be able to attend classes. While

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they can always make use of public means of transportation for the same, having a car at hand is
far more convenient as they will be able to get to their desired destinations in a much quicker
time frame and that too with a far greater degree of comfort than they would if they were using
buses for the subway for the same. Hence it is the university students, both foreign and even the
domestic students who could benefit a lot from renting a vehicle (Terrill 2018). The present car
rental companies in the country do not cater to their needs and requirements because of the fact
that their charges are far too high for these students to meet. However, once Easy Go enterprise
is set up and starts carrying out its operations, foreign students and university students in general
in the country of Australia will be able to afford and rent cars or vehicles at a far lower price than
usual (Rawling and Schofield-Georgeson 2015).
Industry Profile
The car rental market in the country of Australia is one that has been growing at a very
rapid pace over the last couple of years largely because of the fact that tourists have been visiting
the country in large numbers in the last few years. In order to cater to the travel needs and
requirements of tourists in and around the major travel destinations in the country, there has been
a huge spurt in the growth of car rental companies, many of which offer lavish and large sized
cars for customers to make use of, which are fully air conditioned and many of which are also
known to come with unlimited mileage. As a consequence of the development of IT platforms,
more and more car rental companies are emerging in Australian cities and towns that make it
possible for customers to place a booking request for a rented car through the use of mobile
applications, and which they can then proceed to make use of for business or for pleasure. The
market for rental cars in Australia is expected to expand at a rate of 4.6% in the years from now

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until 2025 and it is anticipated that the market will reach a figure of USD 1.8 billion towards the
latter part of this forecast period, thus signifying a huge boom in the car rental industry in the
country (Mutuku 2018).
There are many different types of rental car services that are seen to be offered by various
companies in the country of Australia. There are chauffeur driven cars, there are cars that are
used for special events, there are self-driven rental cars and there are also rental cars that can be
used for the purpose of business. These business rental cars can be hired for longer hours than
usual and for rates that are also higher than the usual market price. The type of car rental service
that is offered includes interstate services, intra-state services and airport transfer services. Out of
all of the services that have been mentioned, it is for airport transfers that car rental facilities in
Australia are made the most use of. Car rental companies are also seen not to compromise on the
quality of the vehicles that they make available to customers. A few examples of the types of
vehicles that customers can rent for short or long hours in Australian cities and towns include
economy cars, executive cars, luxury cars, multi-utility vehicles and sports utility vehicles. The
rental car facilities that are offered in Australia are also those that can be availed by customers
through the use of online booking services. In addition to car rental services that can be booked
through the use of apps, car rental facilities in the country are also those that can be booked over
the telephone or over the internet through web platforms. Once a request for a car rental service
is placed, the concerned individuals get in touch with the customer without wasting any time at
all so that the service can be availed (Newstead et al. 2015).
When it comes to assessing the needs of Australian students and overseas students at that,
however, it can be seen that the car rental companies in Australia do not cater to their
requirements even though such students could benefit from car rental services in the city the

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most. Such students if they had access to car rental services could be making their way to their
part time job locations or even to university in a timely manner and thus avoiding arriving late to
work or to class. It is a fact well known that most of the Australian universities are those that are
characterized by a high concentration of overseas students. The overseas students are mostly
those who hail from the developing countries of the world and who do not have the financial
means that are needed in order to attend college or pursue a higher education degree in the
country. In such an event, the students have to work odd jobs or work part time over and above
attending college classes in order to be in a position to pay for their college tuition fees on a
regular basis. There ought to be car rental services that cater to such students and that too on a
regular basis given that these are the customers who could benefit the most from such services. It
is this gap in the car rental industry in Australia that a start-up company like Easy Go is looking
to address (Leyonteva and Mayburov 2019). Easy Go will enter this industry with the intention
of catering specifically to the requirements and needs of the Australian university students and
the overseas students in particular who could do with such cars to get to places they need to, to
do their part time jobs which in turn will help them come up with the capital needed to finance
their education in the country (Mutuku 2018).
3. Situational Analysis
3.1. Macro Environment Analysis
3.1.1. Porter’s 5 Forces Analysis
Competitive Rivalry – There are numerous car rental companies that are running operations in
major Australian cities and towns. However, none of these car rental companies are likely to
offer rental services for Australian university students specifically, at nominal rates and offer to

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give them the vehicles for free if they have been leasing for a period of two years. Hence the
competitive rivalry for a business like Easy Go is likely to be at an all-time low (Baxter 2019). It
is not going to face any rivalry from competitor companies because of the nominal rates at which
it is going to make car rental services available to Australian university students especially the
overseas students (Meng et al. 2018).
Supplier Power – Since there are numerous car rental companies that are in existence in
Australia, there are also numerous suppliers who provide all the raw materials and components
needed to provide quality vehicles for hire at affordable rates. Hence the power of suppliers for a
start-up business like Easy Go is also certain to be low (Denmark and Stevens 2016).
Buyer Power – Since there are no other car rental companies in the country of Australia that will
offer Australian University students specifically with the scope of renting a car for an affordable
price and will give them the chance to own the car if they have been leasing it for two years, the
buyer power for a start-up business like Easy Go is also certain to be quite low (Mahat 2019).
Buyers or car rental service users such as the Australian university students will find no other car
rental company that they can look to in order to enjoy car hire at the most affordable of rates and
be in a position to own the vehicle that they are renting once the two year lease is over (Mattioli
2017).
Threat of Substitution – The enterprise that is being set up as Easy Go is an enterprise that is
truly one of a kind as it is going to give those who rent vehicles the opportunity to become
owners of the vehicle if they lease the vehicle for as long as two years. The threat of substitution
is low as there is no second business that is likely to make such an incredible opportunity

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available to students renting vehicles or which rents out vehicles to Australian university
students specifically (Monnox 2019).
Threat of New Entry – Owing to the uniqueness that is associated with a business like Easy
Go, with Australian university students being given the scope of renting vehicles at a low rate
and getting the scope to own the vehicle after renting the vehicle for two years, it is unlikely that
even a new car rental enterprise that emerges in Australia will pose a threat to this business
(Abalkail 2019). The threat of new entry for Easy Go is therefore low (Monnox 2019).
3.2. Micro Environment Analysis
3.2.1. SWOT Analysis of Easy Go
Strengths – Easy Go is an enterprise that will be serviced by an efficient team of staff members
who will work tirelessly to run the operations of the business to make it a successful one. The
services that are being offered by Easy Go are quite unique in nature, with customers actually
being given the benefit of owning the vehicles that they are renting after two years of leasing
have passed. As a start-up business is therefore likely to attract a lot of attention and interest
from prospective customers (Smith and McCormick 2019).
Weaknesses – Given the fact that the Easy Go enterprise is a start-up enterprise and it is being
put together with limited resources, it will not be able to offer customers with too many repair
and maintenance facilities that a customer would otherwise expect from a car rental company
(Smith and McCormick 2019).
Opportunities – The demand for rental cars is high among Australian university students, given
that using such cars will make it really easy for such students to move from place to play to do

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the many different jobs that they do in order to fund their education in the country. The business
will therefore get the opportunity to grow and expand quite a bit (Lyons et al. 2019).
Threats – The services being offered by Easy Go are unique and one of kind, that is offering car
rental for Australian university students at low prices and allowing them to become the full
owners of the vehicle after two years of lease. Hence there is little likelihood of any new
business coming up that will offer similar services and thereby pose a threat to Easy Go (Lyons
et al. 2019).
4. Marketing Strategies
Product – The product that is being marketed is the renting of cars or vehicles. The cars are of a
second hand nature and are going to be made available for a hire for a range between $ 170 and
$190 in a week. This is going to lead to a total accumulation of $ 18000 if the car is leased by the
customer for a period of two years, with the business profiting by as much as eight thousand
dollars from every customer. The product, which is the rented car, will be accompanied by
provision of free car repair and car maintenance facilities for the duration for which the vehicle is
leased (Abdel-basset et al. 2018).
Place – The Easy Go enterprise is one that will launch its operations for the first time in the
Australian city of Sydney, given that this is the largest city in Australia and it is where the
business can expect to locate the largest number of customers in the shortest span of time. On the
basis of the success that the enterprise is seen to incur in the city of Sydney, the management of
Easy Go will take a decision as to whether it should expand its operations to other Australian
cities or not (Ibid)

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Price – The car rental services will be made available at a price of $ 170 to $ 190 in a week.
Every effort will be made by the management of the company to keep the rental prices as
competitive as possible in order for the services provided to cater easily to the budget of
Australian university students (Ibid).
Promotion – The business owners will take recourse to the use of social media platforms in
order to make its new car rental business known to prospective customers. This is largely due to
the fact that social media is so widely used by people nowadays. Some of the common social
media platforms that the business ownership will utilize for promoting the new car rental
services offered by Easy Go are Facebook, Instagram and Twitter. The company will also
develop its very own website that will contain useful information on the car hire services that are
being made available and the various ways by which the services can be booked for. The website
will also contain details of the discounts and rebates and early bird rates that customers can avail
if they sign up for the services well in advance of these being launched in the market (Singh et al.
2018).
. People – The target audience for the new business, which is the car hire service being offered
by Easy Go is a business that will cater specifically to students who are enrolled at Australian
universities. The business is one that will specially cater to overseas students who are enrolled at
Australian universities and who will need to use rental cars in order to make their way to places
where they do part time jobs in order to earn the income needed to pay for their college tuition
fees. The business is aimed at helping such students fund their education in Australia by giving
them rental cars for hire at nominal rates and which they can fully own if they have been renting
the vehicles for two years (Dandage et al. 2019).

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Positioning – Easy Go is a business that is going to position itself most uniquely in the
Australian car rental market by not only offering car hire services at highly reduced prices but
also giving car rental customers the opportunity to become full owners of the vehicle if they
lease the cars for two years. In the period of lease or rental, the company will offer free repair
and maintenance to the customers as well, thus making this business stand out from all other car
rental businesses that are currently in operation in the country of Australia
5. Tentative Capitalization and Start-up Expenses
Startup Business Requirements
Expenses
Legal $20,000.00
Stationery etc. $10,000.00
Brochures $10,000.00
Consultants $5,000.00
Insurance
Rent $5,000.00
Research and Development $10000.00
Expensed Equipment/Vehicle Cost $65,000.00

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Other
TOTAL START-UP EXPENSES $125, 089.00
Start-up Assets $10,000.00
Cash Required $5,000.00
Other Current Assets
Long-term Assets $20,000.00
TOTAL ASSETS $, 35000.00
Source – As created by the author
6. Recommendations
 Easy Go is a business that should consider using vehicles that do not emit dangerous or
toxic fumes into the environment as Australia is a country where environmental
conservation is regarded as most important. Hence it is more than imperative that this
business offer cars for rent where the fuel consumption is well within safety limits and
which will not be hazardous for the environment in any way whatsoever. By looking into

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such a matter, the business will be able to attract a larger number of customers than it
otherwise would (Hsu et al. 2019).
 Easy Go like all other car rental businesses in the country of Australia should make sure
that its vehicles are those that have passed a crash test prior to being leased to customers.
It is important for the management of this business enterprise to remember that the safety
of its customers should be its foremost consideration. This is something that the company
can look into by making sure that each and every vehicle that it offers for hire to its
customers is a vehicle that has passed the crash test thereby ensuring that customers are
likely to be fully safe and secure when they take the vehicle out on the road (Qian et al.
2019).
 The final important point that the Easy Go enterprise needs to take into consideration
when offering vehicles for hire is to ensure that the cars come with comfortable seating
arrangements and first aid options. Customers need to be safe and secure when they are in
the driving seat and the only way by which they are actually going to enjoy using the car
if the seats are comfortable and spacious enough. In fact this is an especially important
consideration that Easy Go needs to make given that many of its customers can be plus
sized individuals who are in need of spacious and comfortable seating in order to be able
to drive the vehicles well enough (Dowling and Kent 2015).
Conclusion
Thus, the new business that has been envisaged by the ownership and management of
Easy Go is one that is certain to come to the aid of Australian University students who are in
need of vehicles for rent. Such students will benefit greatly from the affordably priced rented

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vehicles that they can use to get from one destination to another in a smooth and hassle free
manner, and actually be in a position to become the full owners of these vehicles if they lease the
cars for two years.

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