The Indian automobile industry is a good example of a business that has grown a lot in the last few years. One such example is Bike Rental Business. Non-tourists and guests can hire bikes from firms that provide this service. Bicycles are increasingly being used to explore the surrounding area. Thus, starting a Bike Rental Business as a company may be quite lucrative if run correctly. In this article, you will understand how to start bike rental business in India.
What is Bike Rental Business?
Bike rental businesses provide bicycles to customers who are frequently, but not always, tourists. Typically, bicycles are leased for a few hours in order to tour the neighbourhood recreationally. However, college students and others who rent for practical reasons may also be customers. Moreover, you can start bike rental business as a stand-alone store, an affiliate of a bike sales and servicing operation, or some other type of hospitality business.
Documents required to start a bike rental business
The basic document requirement to start bike rental business is as follows:
- Photos of Shareholders or Directors or Business Owners
- Address Proofs
- Rental Agreement or NOC from Landlord if business premises is rented
Stepwise Procedure to start bike rental business is as follows:
1. Create a Unique Bike Rental Business Plan
Every business requires proper planning. So, the first step to start bike rental business is to create a detailed business plan. The business plan and project report are very beneficial for a number of reasons including:
- Avail Business loan
- Decide Company Type
- Find a suitable location
- Identify the target customer and set goals
- Obtain Mandatory Registrations and Licenses
2. Identify Target Customer & Competitors
To start bike rental business in India, you must know about your target audience and competitors in advance. It is probable that your customers are those who enjoy a more active lifestyle when on their vacations.
However, It’s also a good idea to pay attention to the post-ride evaluations, since they often provide useful information on target customers.
The next step is to determine the calibre of your competition and become acquainted with their strengths and flaws.
Until you are satisfied that your service is exceptional, you should avoid heavily crowded neighbourhoods with a large number of retailers.
Although being adjacent to one or two other businesses is not a bad aspect, it may help you save money on advertising while also increasing your exposure to potential customers.
3. Get Mandatory Registrations to start Bike Rental Business
For every business to operate legally in India, there are some mandatory licenses and registrations. The mandatory and beneficial licenses and registrations are as follows:
- GST Registration
- Shop Establishment Registration
- PF Registration
- ESI Registration
- Compliances with Bike Renting Scheme 1997 and State Government Laws
4. Marketing Research and Analysis
It is vital to building a well-balanced marketing strategy right from the beginning. It is rare for consumers to come across a firm that does not engage in some form of marketing strategy or another.
This means that your marketing activities must be in line with your company’s capabilities. Avoid over-promotion, since this may result in you being unable to meet customer demands.
The best way to do marketing after you start bike rental business is through Website Development, Digital Marketing and social media.
5. Decide Profitability & Keep the Records
Everything from the length of your season to the additional services you give has an impact on how much money you make. Thus, A clear understanding of your financial resources, as well as an expectation of profits, is essential.
Furthermore, you should maintain complete and accurate records. You can also utilize Online Bookkeeping and Accounting Service to outsource it and focus on your core business efficiently.
How do decide the price to start bike rental business?
It’s common for bike rental establishments to charge by half-or full-day or by the week or the month. Decide on a price strategy after researching the local competition.
How can I beat my competition in the bike rental business?
You can utilize ISO Certification, Trademark Registration and MSME Registration to gain an upper hand over your competition. All these three registrations offer several benefits for any kind of business.
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