Description of Business.
The business which I have chosen to open is a car rental by the name “Rent-a-Ride ”. This is a sole trader type business which focuses on providing quality cars at a very affordable rate. My target market will be people within the community. My business will employ three full time employees to rent and maintain the cars and operate the business as otherwise needed. Articles of incorporation were attained as to allow the vehicles used to obtain specialized rental insurance. This business will be operated between the hours of 6am and 10pm. Rent a Ride is very useful as it supplies people with the opportunity to access vehicles whenever needed.
Justification of location.
This business is located on High Street, San Fernando, Trinidad and Tobago. This area was chosen because there is a large market for the rentals of cars within this area as my market research has shown. This business is also very accessible as there is a free flow of traffic in both directions due to the width of the street lanes. Amenities such as car oil and brake pads will also be easily accessed at this location since there is a car care shop located next to our business.
Selection of appropriate labour.
Within “Rent-a-Ride” there will be three employees. One employee will be unskilled as he will be washing cars and keeping the business area clean. The other employee will be semi-skilled to be able to rent the cars as well as to communicate with renters appropriately and the third employee will need to be skilled in mechanics in order to maintain and repair vehicles. All employees will be living within a close vicinity of the business so that they will be in a good mood since they would not have to travel a great distance in order to work. Employment will also be acquired very easily since they is a large labour force available in this area.
Sources of fixed and working capital.
A loan of $600,000 will be obtained in order to supply the business with its fixed capital of the property on High Street, the five cars, an air compressor and a vacuum. Working capital of $80,000 will be obtained from my personal savings. The working capital will be used on order to run the day to day operations of the business.
Role of the entrepreneur.
As an entrepreneur of “Rent-a-Ride” I would have to organize the business to work in a productive manner. I will operate my business in a democratic style of leadership. I would personally do the accounting for the business. I will have the power to assess and make my own decisions as I want to in the best interest of the business. I will have to coordinate my employees and resources in an intelligent manner. I will have to pay my employees a suitable amount of money and treat them equally. I will have to handle the advertising and the marketing of the business responsibly. Also as the owner of the business I will have to keep my employees motivated with rewards for their work such as bonuses in salary. As an entrepreneur I will have to face many challenges and risks involved in such a business like:
1. Motor vehicular theft
2. Unlimited liability
3. Failure to enter car rental market successfully
Type of production.
The type of production present within “Rent-a-Ride” is tertiary production. This is because we offer the service of renting of cars. This service can be used to for example to give the renter of the vehicle an opportunity to go to the beach or other places of interest.
Levels of production.
My car rental will be on a domestic production level. This is so because my service is being produced for local use only.
Quality control measures.
Quality control measures will be strictly carried out in order maintain a high level of satisfaction from my customers. A check list will be used to make sure that that everything in the car is in proper and functioning working condition. Once a month all vehicles will be taken to a service station. Continuous market research will also be conducted in order to observe our errors and try to correct or improve them. As time progresses the business will obtain newer vehicles and upgrade the older ones. All of these measures are to ensure the best of service.
Use of technology.
Technology is vital part of my business as all my information of every transaction is recorded to a computer. My firm employs the use of an management information system (MIS). All of our customers’ personal information is stored into a computer. Employees’ records of wages are also kept. “Rent-a-ride” is also advertised online. There is also a website where you can further receive information. Due to the technological advances of my business more profit will be generated and the business will operate more efficiently.
There is only a forward linkage present in my business and that is the mechanics and service stations that benefit from repairing and maintaining my vehicles. As the cars from my business frequent these locations we therefore receive discounts.
Potential for growth.
My business has a lot of potential for growth as there is a large demand for cars to be rented. Internally I can expand by buying more cars or others vehicles (Example: tractors, limos). Externally I can add another branch of “Rent-a-Ride” in Debe, Penal where there is also a large demand for car rentals as my market research has shown. If my business does expand to this extent there will be a large increase in the amount of capital invested and I will have to increase my labour force.
All government regulations will be adhered to by “Rent-a-Ride”. The first thing that I will ensure is that my business is registered. The business will have to pay NIS. All employees will be paid fairly. The business will also have to pay health sur charge and also it will have to deduct income tax from workers’ salaries to go to the Inland Revenue. This business will also pay taxes as required.
Ethical issues .
My business will strive to uphold a high level of ethical values. This will in turn help with customer satisfaction. Some issues that I tend to address is to: 1. Uphold a friendly environment for the patrons of the cars. 2. Ensure that employees always show good ethical values. (Example: they do not curse in front of customers)
3. Make sure that all waste produced by my business is disposed in a proper manner. 4. The business will make sure that cars which are rented are mechanically functional. 5. All workers will be paid on time.