Need for Wheels: Detailed Business Plan for Car Rental Startup

The "Need for Wheels" business plan outlines a car rental startup aiming to meet customer needs in Sydney. The plan includes an executive summary with mission and vision statements, market analysis, competitive advantages, and strategic objectives. It details the company's services, which involve allowing individuals to rent their vehicles for income. The plan also covers the company's operational and marketing strategies, personnel management, and financial projections. The business aims to provide a unique car-sharing opportunity, offering various facilities and competitive pricing. The plan also includes an analysis of the car rental market, highlighting the competitive landscape and potential for growth. Furthermore, the plan describes the company's value proposition, strategic analysis, and management team, emphasizing its commitment to customer satisfaction and operational efficiency. The business plan also addresses the company's services, including the features, benefits, and value proposition for different customer segments.

ConfidentialNeed For Wheels © 2024
Business Plan:
Need For Wheels
2015 to 2020
Jun, 2015
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Foreword
Contact Details
Authors of Plan
This document was prepared by:
Sections Sub Section Responsibility
Executive Summary Everyone
Background
Products and Services
Direction
Strategic Analysis Market Analysis
Competitive Analysis
Environment Analysis
SWOT Analysis
Marketing Plan
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Operations Plan
Personnel Plan
Financial Plan
Version Control
Version No. Version Date Amendment Details
1.0 09 June 2015 None
Executive Summary
1.1 Mission and Vision
The mission of this enterprise is to meet customer’s requirements for car rental in Sydney as well as
other regions and thereby increase their expectations for quality, service and value.
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The vision of this company is to be preferred car rental enterprise in Sydney market and provide
service beyond consumer demand. The focus is also to attain customer’s loyalty and assure stress-
free car rental experience by offering better service which cater customer’s individual requirements.
The vision is also to be growth – oriented rental car enterprise by effectively serving consumers for
their car occasions.
1.2 Overview of the enterprise
“Need for Wheels” is a start- up car hire enterprise through venture of few other entrepreneurs. The
car sharing sector has huge potential to enter car hiring sector if each management process are
integrated appropriately.
1.3 Commodity and services
The services offered by this enterprise is to permit individuals to hire its vehicles for gaining weekly
income. Their services also permits consumers to invest in their vehicles and gain competitive
advantage. The present stage of Need for Wheels is initial and therefore business plans were
undertaken.
1.4 Market
This sector is largely concentrated and has many substitutes in forms of rivalries as well as
transportation methods. The sector with new idea provides better probability to the enterprise doing
well and enter the sector successfully.
1.5 Competitive advantage
The company is providing huge opportunity to its consumers to earn, which is a unique venture in
comparison with other enterprise in the sector. It also offers varied facilities and high price value
than high range enterprises.
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1.6 Capabilities
The enterprise has strong Operational as well as Marketing capability but its finance segment needs
addressing.
1.7 Objectives
Marketing Operations Personnel Financial
Maintain car rental
price
Keep enhancing number of
cars that is available for
renting
Keeping up with
employees spirit for
work
Enhance the
revenue per year
Huge payback to
suppliers than
competitors
Enhance number of renters Maintain good
relationship with the
consumers
Keep sales cost
low
1.8 Strategy
Marketing Operations Personnel Financial
Introducing cheap
rentals
Find better quality vehicles maintain vehicles in
workshop
Maintain sales
cost low
Provide more
choices to renters
sales representative makes sure
that personal selling is effective
Check whether workers
progress as well as provide
feedback
reach yearly
target
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1.9 Management Team
Average headcount of 7 members in a team is maintained excluding outsourced workers. The
operation manager plays major role since they are responsible to maintain good business
environment. However, it is predicted to attain better result at the end of every financial year.
Headcount
Summary
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Headcou
nt Total
7.0 7.0 7.0 7.0 7.0 7.0
Salary
Total
$417,3
24
$345,3
32
$345,3
32
$345,3
32
$345,3
32
$345,3
32
2.0 Background of the company
The idea of establishing “Need for Wheels” arise among three pupils from the Technology
University, Sydney to create car hiring service which might offer profit to the car owners. The
probable success behind the ideals of this business idea was directly connected to address huge gap
in Sydney market. In fact, preliminary meetings also took place for creating principles of hiring
service and getting operation underway. The personnel team of this company currently embarked on
research and development (R&D) project for refining their service and analyse present market
trends for restructuring its goal to surpass its initial revenue and attain breakeven. Moreover, this
enterprise is predicted to flourish in this sector if all objectives and target is met.
3. Service:
3.1. Description:
Within the “Passenger Car Rental and Hiring”, Need For Wheels, a car hiring service that operates
privately, is classified as the service under other industry and has contributed 73% of the industry’s
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total revenue. The chief focus of this service is to allow a person to give his car in hire to their
potential customers for earning revenue during their vacation time. According to IBIS World, this
early stage service can earn market share for next five years.
This industry can be divided into three parts, which are, vehicle leasing, vehicle rentals and other
industry service that considers car sharing. This car sharing idea has occurred from the demand of
consumers, who use public transports for their daily needs and consequently, tourists and local
residents obtain immediate service for their short-run transport. In 2014-15, developed economic
conditions of Australia along with its currency depreciation have increased the demand from
domestic and international travellers regarding transport and this in turn has led the revenue of this
sector. Hence, this situation has forecasted revenue growth by 4.5%, for recent year while for next
five year, this growth rate is determined as 1.6%. Hence, from this phenomenon it can be seen that
this service is expanding rapidly and the profit margin is distributed between organisation and
private car owners.
This Sydney based service has conducted a market analysis before starting this business and has
come to know that New South Wales has captured largest share for this industry as it has huge
amount of population.
Need For Wheels has obtained some unique advantages that in turn have helped the company to
earn large share of market among the competitive industry.
The industry related passenger car hiring and service has earned total revenue worth $ 3.3 billion
that can be divided into various parts. For instance, car rental during short-run has earned 25.3% of
total revenue while fully maintained vehicle leasing and non-maintained vehicle leasing have
earned revenue worth 21.5% and 19.4%, respectively.
3.2: Feature of services:
Competitor Being part Qualified Niche Premium
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of a
franchising
chain
Workforce
Markets
Access
Understanding
and research of
the market
service
production
Need For
Wheels
No Qualified
employee
forms the
developing
workforce
Focus being
primarily on
household and
tourist markets
A wide-ranging
research has
been considered
to analyse a
possible
breakthrough
into the market
thereby earning
a leading
position within
the car service
industry
No
LeasePlan
Australia
Limited
Yes, the
company has
established
network
franchisee
chains.
Has an
extensive
workforce
with nearly
370
employees to
manage
around 80,000
vehicles for
Yes, they have
focused on
innovated
leases for their
clients of
government
and business
Increased
market research
for restructuring
and improving
the profitability
Drop in the value
of the equipment
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clients of the
government
and business.
WTH Pty
Limited
Subsidiary of
Avis Rent a
Car System
WTH"s head
office in
Australia
employs over
800 qualified
workers across
all company’s
operations.
Provides
services for
leisure and
business clients
This is one of
the world’s
biggest car
rental brands
that have over
5450 locations.
The company
has established
market trends.
Premium services
are offered over
here.
Fleet Aust Pty
Ltd
Purchased by
a private
equity firm.
Headquartere
d in
Melbourne has
employed with
over 250
qualified staff
to manage
operations.
Fleet offers a
range of fleet
leasing
services for all
types of clients
so is not
considered to
direct niche
market.
Company has
underperformed
in the industry
and lost a small
part of the
market share.
Premium services
are not a primary
feature
Hertz
Investment
(Holdings)
Owner is
Hertz Global
Holdings Inc
Large
numbers of
international
Gives a large
collection of
fleet vehicles
The market
share of this
company is
Offers services
for sport cars and
prestige cars
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Pty Limited employees,
which can
operate in
countries like
Spain, the
U.K, Germany
and France.
decreasing
though revenue
is increasing at
comparatively
slower rate than
this industry. It
has
implemented
some schemes
to attract large
number of
clients for
gaining points.
Fleetcare Pty
Ltd
No. Founded
in 1989 in
Australia.
Manages a
qualified
workforce
employing
around 70
worker in all
offices across
Australian
capital cities.
Company
services a
range of
sectors across
Australia.
Consider
vehicle
financing, full
maintenance
leasing, repairs
of vehicles,
It has
successfully
enhanced
market share as
demand for it
has increased.
This higher
amount of sales
has
consequently
increased
No. Wide range
of fleet vehicles
considering
passenger cars,
mobile-plant
vehicles and
commercial
vehicles
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vehicle
acquisitions,
insurance and
sales.
economies of
scale of this
company and
this in turn has
increased
profitability of
this company.
3.3. Value proposition:
Customer
Segment
Benefit Feature
Households
 Need For Wheels provides
short-term along with long-term
rental solutions for hirer
 Gives profit benefits to the
private car supplier
 Sense of reliable services and
security provided.
 Easy for household customers to
operate company services at lower
price level
 Easy for customers to select model
of any vehicle with relevant
characteristics
 Consumers receives insurance and
road side support
Businesses -
SMEs
No current immediate benefit
 Plans for future are given for long
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term leases when the company has
given investment benefits to its
private owners after developing
reputations
 No instant characteristic at current
situation
Businesses -
Large
corporations
No present instant benefit
 No urgent characteristic at present
situation
 Plans for future times are given
during long-term as the company
has improved its reputation within
market
Government No recent immediate assistance  There is no current characteristics
for present situation
 Future plans helps to give long-term
leases when this company has
developed its status and
consequently has given benefits to
their customers
International
tourists  Gives profit benefits to the
 One of the fastest vehicle supplier
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supplier related to private car
owners
 This company gives rental
solution in short-run during
holidays to travellers
 Sense of reliable and secure
service provided.
that have arrived in Sydney
 Easy to choose model of vehicle
and other related characteristics
4. Direction
4.1 Mission Statement:
The mission is to complete the customer’s need of rental car in Sydney and outer states so that it
can go past their value and services. The business treats its employees and customers as the family
without compromising the need of its commitment for superior customer service. The business
operates in the community to enhance the diversity through its ranks and contributes to the business
cause. Even though the goal of the business is to best service provider but aims to satisfy the
customer needs as this would help in introducing long term profitability. The mission of the
business is to meet the customer’s demand of rental car needs.
4.2 Vision Statement
The vision of the business is to be premier rental company in the Sydney car market and to provide
service further than the customer satisfaction and demand. Need for Wheels would strive to earn the
customer loyalty by working towards the pledge of being honest and fair company that specialises
in creating a pleasing business experience. Need for Wheels aims to make sure that a stress-free
experience is provided to the customers to meet their demand. The business would be aiming to
attain competitive advantage by attaining the productivity and efficiency.
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