The market problem
- Online car rental service attracts a notably large tourist pool as Australia welcomed over 9 million visitor arrivals for year ending march 2018, an increase of 7.7%, but even the popular car rental services all over nations earn meagre revenues;
- The reason for such a low revenues is that these services are very much scattered and tourists who visit the country find it difficult to rent out good quality cars
- The Car Rental industry has grown steadily over the past five years, supported by increasing international travel to Australia. Positive business confidence over much of the five-year period has encouraged corporate travel activity, with many companies expanding their travel budgets.
- Increased travel throughout Australia has in turn supported demand for rental cars. Industry revenue is anticipated to increase at an annualised 2.3% over the five years through 2016-17, to reach $1.26 billion. This performance includes expected growth of 0.9% in the current year.
Our Business Proposition
- Customer = 70% payment as advance + 30% once ride has come to an end
- One time security deposit
- Car owner will get 60% of the revenue
- 20% as advance + 40% post returning the car
How the business process will work
The Market Size and Potential
Go to Market Plan
Core Strategy – why will Lcab work?
What’s the Financial Model of LCab?
What are we looking for?
- $1,00,000 investments that covers 3 years of cash costs and basic Capex;
- Introductions to car owners with whom we could get started our association immediately
What are we offering in return?
- Angel investor with 10% annual return;
- 25% stake in the organisation;
Conservative Revenue, Profits and
Cash flow Projection of LCab over 3 yearsOutcome of Business
Promoting the business through innovative digital marketing strategies would enable the business to reach out to wider audience. Effective execution and the right marketing strategies would lead the business to a massive success.
Website link:
The business would have two owners, two people in the HR department and a 12 people sales team. 5 members of the sales team would target owners of luxury cars and get them to register with the business. The remaining 7 members of the sales team would target customers who are interested in renting cars.
References
- Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
- Brinckmann, J. and Kim, S.M., 2015. Why we plan: the impact of nascent entrepreneurs’ cognitive characteristics and human capital on business planning. Strategic entrepreneurship journal, 9(2), pp.153-166.
- Hawkey, J., 2017. Exit Strategy Planning: Grooming your business for sale or succession. Routledge.
- Barraket, J., Furneaux, C., Barth, S. and Mason, C., 2016. Understanding Legitimacy Formation in Multi?Goal Firms: An Examination of Business Planning Practices among Social Enterprises. Journal of Small Business Management, 54(S1), pp.77-89.
- Gevurtz, F.A., 2014. Business Planning. Foundation Press.
- Barney, J.B. and Hesterly, W.S., 2010. Strategic management and competitive advantage: Concepts. Englewood Cliffs, NJ: Prentice hall.
- Day, G.S., 1984. Strategic market planning: The pursuit of competitive advantage. West Group.
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