ATV rentals are on the rise across the United States and abroad, and online searches for rental services have increased each year for the past four years running. There’s no reason to believe that this trend won’t continue — the timeless thrill of ATV rentals will always draw in adventurous customers.
If you’re looking into how to start an ATV business, you need to develop an effective ATV rental business plan. This will ensure that you fully understand what it will take to make your business succeed, and serve as an essential step in finding financing for your new business.
ATV Rental Industry Overview
Researching how to start an ATV rental business has probably left you familiar with the industry overall, but anyone you’re showing your ATV rental business plan PDF to might not be.
Place the industry overview at the start of your business plan to bring the reader up to speed with the ATV rental industry as a whole. By including some information about how ATV rentals are growing across the country or within your region, you can inspire confidence in the success of your venture.
Now you’re establishing a good foundation for showing any potential source of funding that your business can thrive.
Your Executive Summary
Once you’ve given the reader a brief overview of the industry, communicate the highlights of your ATV rental business model quickly and concisely. The executive summary contains key details about your business model, pricing, and more.
While this goes near the start of the business plan, you’ll actually put this section together last. It’s a summary of the contents of the rest of the business plan, so you’ll need to have all the other parts finished before you begin.
Your ATV Rental Services
In this section, you define what services you’re going to offer. You can flesh out your ATV rental business ideas in more detail here.
Consider these questions:
- What class ATVs are you providing?
- Are ATVs rented hourly for on-site trails, or extended off-site excursions?
- Do you rent out helmets and other gear?
- Do you have any accessories available for purchase?
When it comes to establishing your business plan, just saying that you’re going to rent ATVs doesn’t provide the necessary detail to determine your potential ATV rental profitability. You must be specific with your plans.
Your Mission Statement
You might not have thought about your mission statement when researching how to open an ATV rental store, but it’s still an important part of your business plan. This should say a bit about the principles on which you’re going to run your business.
It’s best to keep things simple when it comes to your mission statement. For ATV rentals, in particular, you can include that you want to provide an exciting experience while maintaining safety.
The Structure of Your Business
With this section, you’re getting into some of the finer details of your ATV rental business start-up.
Before moving any further, you need to decide who is going to do what in your business. Whether you’re going to have employees (and how many) will have a huge impact on your overall plan.
There are core responsibilities for any ATV rental business, and you need to know who is going to handle them. Who performs maintenance? Who cleans the ATVs? Who is dealing with marketing?
Performing a SWOT Analysis
A key feature of modern business plans is the strength, weakness, opportunity, and threat (SWOT) analysis. Here, you can identify how your ATV rental business is situated for success. You can discuss the demand in the area and other factors.
It’s just as important to discuss potential weaknesses and threats, in order to prevent and react to them. Is there a lot of competition in your area? Is there a risk of extended inclement weather reducing rentals?
Sales and Marketing Strategies
A big part of how to open an ATV rental store is properly marketing your business to drive growth. Marketing is important for establishing your business and keeping it going. You should identify specific strategies and platforms you intend to use for your business.
For ATV rentals, you should understand who your key rental demographics are. This can vary depending on your area and what renters will likely be using your ATVs for, whether that’s touring local trails or more serious off-roading.
Are ATV rentals a profitable business? The biggest deciding factor for your business will be your sales. That means you should have some forecast in place before you actually start your business in order to gauge profitability.
Sales forecasting is a challenge in any industry, even for well-established businesses. You can look at companies in surrounding areas to see how they’re doing to put together a rough estimate and include projections based on your expected inventory for different use rates.
Choosing Your Pricing Strategies
How much does an ATV rental business make? That’s going to depend largely on your pricing strategy. You need to have a coherent pricing strategy in place to make sure you’re getting the returns you need to justify your ATV inventory investment.
Developing an effective pricing strategy will involve balancing what your customers are willing to pay with the income you need to keep your business running. If you can’t get this to work on paper in your business plan, then chances are your business idea isn’t going to pan out.
Evaluating Your Business Expenses
Any good business plan should have a detailed list of anticipated expenses. This should cover everything you need to run your ATV rental business, including wages, acquisitions, insurance, and more. You don’t want to find out about any unexpected expenses after the fact.
How to Grow an ATV Rental Business with Quipli
Setting up an ATV rental business plan is the first step, but once you get started, you need to know that you have the correct tools to grow your business.
Book a demo with Quipli today to see what we can do.