Tips for Slingshot Rental Businesses
Slingshots have surged in popularity lately, even though not every state can agree on its classification. The Polaris Slingshot isn’t legally classified as a motorcycle in every state, though it’s not a car either.
Most states call this popular recreational vehicle an autocycle. But whatever it’s called, you can capitalize on this trend by starting a rental business. Or, perhaps you already have!
If you want to beat the competition and stand out, whether you’re starting from the ground up or already have a company, here are some crucial tips for how to start a Slingshot rental business or develop your existing one.
Learn About the Industry
If you’re thinking about starting a Slingshot rental company, begin by learning as much as you can about the industry.
Take time to read about the different models, including reviews that cover features and safety ratings. Learn about the advantages and downsides. From this information, you can get a better picture of what types of autocycles you might want to rent out.
You’ll also need to determine how much you’ll charge for rentals. Research your competitors to see how much it costs to rent a Slingshot in your area. The average may vary from $50 per hour to $1,500 for a week’s rental. Many rental companies have varying rates depending on the rental period. Read the policies and rules these businesses set, too. It’ll give you some good guidelines.
View State Laws for Rental Requirements for Slingshots
Each state has its own laws concerning Slingshots. Does your state classify a Slingshot as an autocycle? If so, what are the driving requirements?
In most states, drivers can operate this three-wheeled vehicle with a standard driver’s license. Laws and regulations are always subject to change, so ensure you stay on top of all the latest updates in your area.
Another law to consider is helmet requirements. In most cases, helmets aren’t required by law when driving a Slingshot. That’s because most states don’t classify Slingshots as motorcycles.
However, many types of autocycles don’t have doors or roofs. Polaris states on its website that it recommends wearing a Department of Transportation (DOT) approved full-face helmet while operating a Slingshot.
Requiring helmets might discourage some people from renting, but you must consider liability.
The use of DOT-compliant helmets has saved over 25,000 lives by preventing fatal injuries to drivers and passengers.
Having the right Slingshot business insurance and safety policies in place can help protect your company and your customers. You’ll get the coverage you need and not have to worry about being underinsured.
Create a Slingshot Rental Business Plan
If you’re starting a new Slingshot rental business, you’ll need a solid business plan to guide you. It should be the foundation of your business and outline each stage of launching and running your company, including your service description, marketing strategy, financial projections, and more.
You can find more information on how to write one on the U.S. Small Business Administration website.
Here’s what to include in a business plan for a Slingshot rental company.
Startup Costs
Consider the expenses of opening your business, including the cost of becoming a Polaris dealer. The fees will vary based on factors like the size of your facility. The ideal applicant should also be able to secure a minimum $500,000 credit line. Polaris Slingshot dealers don’t pay a franchise fee.
Other factors in your rental business startup costs include:
- Slingshot purchase costs
- Staffing
- Business licensing and registration
- Rental facility cost
Operations Funding
Your business plan should include details about the funding you plan to use. Options include personal savings, bank loans, or small business grants. Plan for startup and operational costs to determine the necessary financing.
As you plan for funding, outline future funding requirements in a funding request.
Marketing Strategy
Marketing allows you to find customers, grow your rental business, and experience ongoing profits. Consider the best platforms for you, such as social media advertising, email marketing, and creating a website and blog.
Executive Summary
As you create your business plan, lay it out in an executive summary, which includes components like
- Company mission and purpose
- Company details, like location and owner experience
- The rental services your company offers
- A summary of the Slingshot rental market
- The competitive advantages you will offer
- Sales projections for your first year or more
- Startup financing requirements
This executive summary gives readers, like investors, an overview of your plan to help them decide whether to invest in your business venture.
Market Analysis
Market analysis allows you to find your target market. Consider who will rent a Slingshot in your area and what they might use it for. Typical markets include thrill-seekers and tourists.
Look at the rental industry in your area, particularly for similar vehicles and usage types, to determine the growth potential. Identify competitors so you can develop a plan for standing out.
Legal Structure
Your business plan should include the legal structure you plan to use. Consider contacting a business organization attorney to help you draft a business plan. They can help walk you through topics such as liability, ownership, taxes, etc. For a Slingshot rental business, it’s a great early step that will ensure you’re taking all necessary safety precautions and getting the appropriate coverage.
You’ll also have to register the company with local and federal governments. Common business structures include sole proprietorships, partnerships, limited liability companies (LLC), and corporations (C corp, S corp, etc.)
Once you’ve decided on the type of business entity, you can start filing the necessary paperwork with your Secretary of State office.
Financial Projections
Financial projections forecast future income and expenses for your rental business. They give you the information to make financial decisions and show investors your company’s potential future. Your financial projections may include details like:
- Vehicle acquisition
- Revenue
- Expenses
Factors and Tips for Slingshot Rental Businesses
Here are a few more factors to consider while setting up your Slingshot rental business or making changes to the company you have already established.
First, what’s the minimum age allowed for drivers? Many companies require that drivers be 21 or older. Consider adding the requirement that drivers must have clean driving records, free of convictions, violations, or infractions. This addition ensures you’re renting the vehicle out to responsible users who are less likely to cause accidents or damage. At the very least, you can reduce the number of incidents by setting this requirement.
Next, you’ll want to consider the damage deposit amount and how you’ll accept the deposit. For instance, is it through a credit card authorization, cash, or cashier’s check?
If a driver causes any damage to the Slingshot, you can bill it against the deposit. The amount will vary depending on your insurance and the vehicle model, but it’s usually around $500-$1,000. When vehicles are returned in the same condition, you can refund the deposit.
Have Slingshot Rental Business Insurance
Startups have to face significant challenges, including the fact that traditional insurance partners tend to shy away from new businesses without any history. Still, you must take measures to protect your company with the right insurance.
XINSURANCE can help by connecting you with customized insurance solutions.
We work with a network of insurance companies to find custom plan options that help protect companies against common risks and costs, such as negligence, bodily injury, property damage, or equipment breakdowns. Without the right coverage solution, you’re leaving yourself vulnerable. Any accident can result in a costly lawsuit and damage your brand reputation.
Accidents happen, especially when vehicles are involved. You want to ensure you have the right coverage in the event of an accident, incident, or lawsuit. An insurance solution that guards against claims can mitigate the risk and many of the costs that fall on you.
At XINSURANCE, we identify coverage options for all types of businesses, including Slingshot rentals. Learn more about Slingshot rental insurance and fill out the form at the top of the page to start the quote process.
Launch Your Slingshot Rental Business
These tips for Slingshot rental businesses should put you on the path to success. Now is the perfect time to invest in this popular trend, as long as you have suitable Slingshot insurance options.
We’re an insurance partner that helps businesses like yours find coverage solutions. To learn more, request a quote online or call (877) 585-2853.