Tips For Starting An ATV Rental Business
If you enjoy being around ATVs, working on them, talking about them, keeping up to date with new models, and enjoy using them on trails as well as going on adventures, then a startup renting ATVs could be a startup choice that’s just right for you.
When you appreciate ATVs and have a strong interest in them, that translates into a passion, and that passion is a crucial factor that drives business success.
If you have a passion for your business, you have a better chance of making it work than starting a business for other reasons.
When you’re passionate, you work twice as hard to make the business work as opposed to starting a company that you’re in just for the money.
In this post, you’ll find a few considerations you need to think about before starting your ATV rental business, and after that, you’ll get resources offering the “How To’s” and get into the details. Our resource section is a collection of hand-picked articles and videos that can help if you decide to move ahead with this idea.
One of the benefits of having a collection of articles from a variety of authors is you’ll get a broad understanding from different perspectives.
Demand for ATV Rentals
When you consider the location of your startup, you’ll need to do your research to determine if there is a market for ATV rentals. If there is no demand, then there is no reason to start your business in that location.
See Our List of the Latest Business IdeasThanks for dropping by. Before you leave be sure to have a look at our list of the newest business ideas to spark your creativity.
How will you finance your ATVs? A new ATV, depending on the make and model can cost around $10,000. You could purchase ATVs that are less than a couple of years old, in good condition for a better price. For the sake of argument, let’s say each ATV costs $6,500.
Assuming you have a busy location, you may need to purchase 20 ATVs that can be rented at the same time. Keep in mind, a lot of people rent out ATVs in groups. Twenty ATVs at $6,500 each will cost you $130,000.
Add in the cost for your building, whether it’s leased or purchased. You may have a charge associated with the land and trails where your customers take their ATVs if it’s not a public area where ATVs are allowed. With all these considerations, you can see that there are a lot of startup costs you need to consider.
Do you have the resources to get the funds needed, or do you have the collateral to get financing? If you need funding, you need to calculate your startup costs as well as your operating cost, create a business plan, and then seek out financing.
Profit Margins and Revenues
The average rental is around $50.00 per hour per ATV. Naturally, that depends on the model of the ATV, the location of your business, and demands for rentals. Plus, keep in mind, there are rates by the day because some people need the ATV for more than an hour.
If you can have all your ATVs rented by the hour for an eight-hour day for 20% of the time, then you can expect a pretty good daily income.
Using the example above; 20 ATV’s x $50.00 x 20% of the time = $200 Per hour x 8 Hours = $1,600 per day.
Once your startup costs are taken care of, most of you’re operating expenses would be for insurance, ATV maintenance, ATV repairs, and shop upkeep as well as other monthly expenses that a business incurs.
The Condition of Your ATVs
As a business renting out ATVs, you want to make sure you’re providing the best experience for your customers. Providing them with new ATVs is an excellent way to get repeat business and spread the word about your rentals and services.
That doesn’t mean all your ATVs need to be brand new; after all, after a few months, they are now used, but you do need to provide ones that are in excellent condition.
You need to make sure your customers are fully covered in case of an accident, and you want to make sure your ATVs are covered as well.
The last thing you need is a lawsuit on your hands because of something you took for granted. In the resource section below, you’ll be able to find a qualified insurance company that can guarantee you have all the coverage you need for yourself and others.
In order to attract customers, you could create events, such as ATV racing, ATV competitions, and other related entertainment venues that can attract the right crowd.
The more you get people involved, the more newcomers who don’t own ATVs will consider renting one.
For example, if you set up a racing competition, and made sure it was completed well before sundown, people at the event may want to rent an ATV and you could have your entire fleet rented after the event. You could also get rental bookings for the next few weeks.
Another idea is to create a day in the trails where a guide takes a group of people out to spend the day on ATVs, during which they can sightsee as well as enjoy a few hours on ATVs.
Offering instructional courses is another idea for people who are interested in ATVs so they can learn how to use them safely. Then, you could give them a discount after the course if they want to rent one.
One last idea that comes to mind is to offer a monthly subscription that allows your customers to rent an ATV regularly, either weekly or monthly, for a discounted price.
This keeps the revenue flowing. Keep in mind that if you implement a subscription model, people usually bring friends, which will result in more rentals for you.
How To Start Your ATV Rental Business
When you start a business you need to look into many issues, including; writing a business plan, getting a loan, choosing a business name, getting your tax ID, etc.
Rather than adding the steps in this post, I have included them in my post, The Essential Steps To Start a Business for all the information you need to start your business on the right track.