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
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 :tongue_smilie: 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 :thumbup1:
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
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 :thumbup1:
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
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 :thumbup1:
for the attention of Rob Hi Rob, I currently have a van available to hire. It's a white ford transit, 54 plate and its a medium wheel base. You can hire it for £30 a day. Please let me know Regards Purity 0796 0988578
You do not state how you are going to run your business - limited company or sole trader. Assuming that you are a sole trader, the vans you will have purchased could lead to a fairly hefty capital allowance claim which, more than likely, result in trading losses being accrued. This could be despite the fact that you have made a profit on paper. There are quite a few ways of relieving those losses which could be beneficial to you. If you do make a taxable loss and you claim tax credits, then you should inform HMRC as soon as possible. You may obtain increased tax credits becaause of the trading loss. Any extra funding you can obtain in the early years of a business should be gratefully accepted.