If you’re considering starting a golf cart rental business, you are in luck. Your business idea has the potential to be very lucrative, as long as you tick some basic boxes and start things off the right way.
Provided that you have chosen the right location — an area that sees a lot of tourists in need of transportation from one nearby place to another, here’s how you can start your business.
Make a Business Plan
Your first step is to create a business plan. This might seem like a very tedious and boring step, but it will prove to be immensely valuable later. Your business plan should contain your goals, competitor research, a market analysis, as well as clear operational and marketing plans that you are confident you can execute.
You should also figure out who you need to hire, what your initial budget needs to be, and what your monthly overhead will look like.
You may also discover that you need help with this first step. You might want to consult a lawyer or a financial expert, and you also may need to hire someone who will conduct all the market and competitor research for you.
Understand the Legal Side of Business
Your next step will be to tackle the legal side of running a golf cart rental business. Here’s what you’ll need to do:
- Form your legal entity. Whether it’s a sole proprietorship or a partnership, there will be a fair amount of paperwork to take care of, so make sure you are informed about all the requirements and steps you need to take.
- Open a business bank account.
- Hire an accountant and start setting up your tax payments. Make sure you work with someone who understands what your business will entail.
- Get all the required licenses and permits.
Make sure you speak to professionals if you don’t understand any of the steps or requirements. Getting things right now will save you a lot of trouble and potential expenses down the line.
Create and Manage Your Budget
You will also need to create a very detailed budget when you’re first starting out. Again, you’ll likely need to enlist some help and do a lot of research.
Start by determining the costs and then figuring out how much you need to charge for your rentals. You can also do it the other way around: first see what your competitors are charging and whether or not you may be able to be more affordable and stand out that way.
Make sure to write all the expenses down, including your own salary (if you plan to have one right from the outset), the salaries of your employees, and any potential unforeseen costs. Always have a bit of extra money planned in case of emergencies.
Purchase All Equipment
Once you know you have enough money to start, whether you are investing in the business yourself or have secured outside funding, you can start buying everything you need.
Start by making a list of all the equipment, tools, and supplies you will need, both for the golf carts and for your operation. Think about items like golf cart tires that you will certainly need to replace regularly, as well as smaller operational items like paper and pens.
Research various suppliers to make sure you get the best prices. You don’t need to pick someone immediately — shop around a bit.
Keep track of your inventory and every item that you’ve purchased. Also, keep track of all prices and where the item is physically located to help you find everything you need on a day-to-day basis.
Create a Marketing and Sales Plan
Finally, you will also need a sales and marketing plan. Creating a website is a good place to start, as is choosing the avenues you want to pursue for sales. Do you want to promote your business mainly online, or do you also plan to do some in-person marketing?
A combination of digital and offline marketing will work best for your business. Make sure people can find you online when looking to rent a golf cart in your area, but also make sure they can spot you while walking around town.
You can also strike up partnerships with other local businesses, like hotels and other accommodation businesses in your area, whose customers will need to rely on your form of transportation. Note that it may get quite competitive, especially if you are entering a crowded market.
Wrapping Up
Now that you know the required steps to starting a golf cart rental business, it’s time to get to work. Don’t get discouraged when you hit a bump in the road: there is nothing more natural than having to overcome obstacles. Just stick to your business plan and keep going.
