04 Mar Mopeds Rental Business Plan
A new and exciting business opportunity exists in Eugene, Oregon. University Mopeds rents mopeds from students at the University of Oregon. This market is currently not covered by Eugene's businesses.
It is possible to rent a student's own vehicle during school for just a little more than a monthly cellular telephone bill. Mopeds are more cost-effective than cars and have lower fuel consumption. These vehicles are also affordable for insurance at around $30-50 per annum.
The target market for this business would be the approximately 15,000 full-time students. Many students commute daily from Autzen Field. Parking on campus can be difficult and the bus is not an option. Here is where the moped becomes an economical option.
Many students do not have the disposable income that it takes to purchase a moped, but they are in a position to pay $50 per month to rent one. University Mopeds will lease used mopeds to students for between $400 and $700. The average moped would be paid off in under one year.
University Moped will attempt to reach 1% of full-time students in year one. This would equate to 150 mopeds rented. The 5-year growth rate should be no less than 15%.
University Mopeds can be profitable in year 2 if they have a $550 average purchase and a $50 monthly rental contract.
1.1 Objectives
- Rent 150 units for the first year.
- University Mopeds can be self-sufficient and economically viable by year 3.
- Rent at minimum 199 units for the third year and 263 for the fifth year (15% annual increase rate).
1.2 Mission
University Mopeds will serve the student first. At University Mopeds, clients will be able to rent a quality means of transportation at a fair price. University Mopeds is a profitable company that will pay its employees fairly and make money for its owners.
1.3 Keys to Success
- Customer service excellence and quality.
- Rent affordable.
- Attaining the target market
- Integrity when serving our customers. This results in repeat sales.
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