Starting a van hire business

[NICK2151]

Hello,
would apriciate advice / suggestions on the following idea:

I am looking at starting a new business renting out vans, I have backing of £100,000 which will be roughly invested as follows:

I will purchase 10 vehicles (variety of sized vans) at a cost of £85k (all between 1-2 years old - low milage

The rest will be inputted into inital set up fees and advertising.

If have looked at the cost of running this business including:

payback of the 100k at 3% over 5 years - £1820 per month
insurance of the vans for hire purposes - £1500 per month
buildings rent,rates and utilities - £1200
other fees (recovery, help with vehicle upkeep etc) 500 per month

This gives monthly outgoings of around £5000

I have a more detailed plan but in esence I need to rent the vans out for 12 days per calander month each to break even and anything more puts me into profit.

I would be greatful of any thoughts / questions regarding this.

Thanks

[Punched]

Hi Nick,

Not really sure what you want here?? You've explained what your doing, i guess you've done your homework and the area that your starting up from actually could do with the kind of service your offering?

I'm Glad you've not said that you would be buying the motors new as that would lose you 20% asset value after the first year.

Whilst your getting all geared up, i would say you could try and contact businesses in your area and do some sort of introductry offer, you may not make too much in the first 6 months but you've got 5 or 6 new customers on the books which could reapeat hire.

Inviting Businesses to open a company account, might pay dividends, Plumbing firms, when one of their vans are down, ie MOT, service, You step in Supply a Van and make £££'s

Theres so much you can do, i'm sure you'll get loads more ideas in this thread.

Good Luck nick, and hope you do well buddy

Gerry

[RS Print Services]

Hi Nick, Sounds like a great idea, what area will you be working out of ?
Will the vans be rented out for people to drive themselves ? Or will they be rented out as a courier service ?

My printing firm maybe able to use your services if you could give me some more detail about what you plan to do ?


Regards
Rob

[Punched]

Hi Nick, Sounds like a great idea, what area will you be working out of ?
Will the vans be rented out for people to drive themselves ? Or will they be rented out as a courier service ?

My printing firm maybe able to use your services if you could give me some more detail about what you plan to do ?

Let me know if you want some business cards, be happy to produce some on the edge of another project to get you going, if you could supply the design I would be happy to print the initial run for free.

Regards
Rob

Rob,

I think he's just doing a Van hire where you hire the vans, But, in essence, thats another idea, when the van are not in use or un-hired, How about employing a guy to do deliveries??

hey why not, its pennies in the bank

[NICK2151]

Thanks guys,

The operation will open in East Yorkshire initially,

essentially I will be looking for business contracts where for example a business has extra work and needs a van for a week although I arnt naieve to think I will get this work straight away and will have to day on day rentals off the street (guy moving house) to get me up and running

[Punched]

Another way to make some cash Nick is to advertise on the vans

Its nice having a Luton Van with your business on the doors, but what about the advertising potential on the sides and the back