Arden University BUS5003: Car and Bike Rental Business Plan Report

This report details a business plan for a car and bike rental company, focusing on a business model that offers rentals at lower-than-market rates with breakdown assistance. The plan includes an analysis of entrepreneurial competencies, objectives, and market conditions using PESTEL analysis. It addresses competition, product segmentation, sales strategies (online platform), and operational aspects like vehicle maintenance. The plan also includes a sales forecast, strengths, and risks, along with references to relevant literature. The target market is young adults, and the company aims to achieve profitability by the second year of operation by offering competitive pricing and customer-oriented services. The report emphasizes the importance of staff attitude and owner experience as key strengths.

BUSINESS PLAN
Car and bike rental company

Business model
 To provide cars and bikes on
rental.
 The cost will be kept lower
than the market rate.
 The assistance will be
provided in case of
breakdown.
 The partners will supply the
cars and the bikes to the
customers and work as the
representative of the
company.

Entrepreneurial
competencies
 Experience from the
previous businesses.
 The staffs are well qualified
for their work.
 Good team management
skill of the owner.
 Experiences and knowledge
from the academic courses.

Objectives
 To provide the service at
the lower rate than the
market rate which is
around 800 Mauritian
Rupees.
 To achieve the breakeven
point of the business
within two years of
starting the venture.
 To earn a profit of around
54000 USD from the
second year of operation.

The market: PESTEL
analysis
 The government policies can
increase the cost of operation
of the company.
 The income of the customers
of the market can raise the
demand for the service.
 The preferences of the
customers to spend less on
own car.
 Technological advancement
can reduce the cost of
operation and management.

Competition in the market
 Small number of competitors in the
market with low experience level.
 Currently the charges are high in the
market.
 The business model of the company will
allow it to reduce the operational cost
and hence the rate.
 The company will combat the rivals with
the USP of low rates of the cars and the
bikes.

The product
The
produc
t
The product
is rented cars
and bikes for
the
customers.
Additional
customer
assistance
will also be
there.
Assistance in
case of
breakdown
will also be
provided by
the company.

The marketing and
business
 Segmentations of the customers
are done based on the income
and the family size.
 The main target market for the
company is the young adults.
 The positioning of the products of
the company will be done in such
a way that it increases the overall
surplus of the consumers.

Sales and operations
 Sales through the online
platform.
 Operation includes the
cooperation of all the
stakeholders of the business.
 The partners are responsible for
the maintenance of the vehicles.
 Customers pre pays the charges
and receives the unbilled money
after the completion of the trip.

Sales forecast
Sales forecast of the company in coming years (In USD)
Year 1 year 2 Year 3
Revenues from
car rent 81435.65 91036.48 101254.48
Revenues from
bike rent 63124.74 72154.98 81124.32
0
40000
80000
120000
Sales forecast
Revenues
from car rent
Revenues
from bike
rent
Axis
Title

Strength and risks
 Attitude of the staffs of the
company is a great positive.
 The experience of the owner is
a great strength.
 The operation is customer
oriented.
 The rents are low compared to
the market rents.

Strengths and risks
Risk
s
Financial
Physical
HumanStrategic
Operationa
l

References
 Cojocaru, M., 2019. The Economic Argumentation of
Business Plans for Agricultural Enterprises. LABOUR.
 Garcia, C. and FCAP, M., 2018. Strategies for integrating
digital pathology into your business plans and workflow.
 Kahn, M.J. and Baum, N., 2020. Entrepreneurship and
Formulating Business Plans. In The Business Basics of
Building and Managing a Healthcare Practice (pp. 37-
41). Springer, Cham.
 Khorramrouz, F., Kajabadi, N.P., Galankashi, M.R. and
Rafiei, F.M., 2019. Application of fuzzy analytic hierarchy
process (FAHP) in failure investigation of knowledge-
based business plans. SN Applied Sciences, 1(11),
p.1386.