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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 slingshot rental businesses.
Learn About the Industry
If you’re thinking about starting a slingshot rental company, you should start by learning as much as you can about the industry. For instance, what are the most popular brands, and how do they work?
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 what they charge, and read their policies and rules. It’ll provide you with 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 they recommend a 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 Department of Transportation (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 will help protect your company and your customers. You’ll get the coverage you need and never 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
- Operations funding
- Marketing strategy
- Executive summary
- Market analysis
- Company description
- Legal structure
- Funding requests
- Financial projections
It’s also a good idea to 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.
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-allowed age 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 ensures you’re renting the vehicle out to responsible users that 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 Insurance
Startups have to face significant challenges, including the fact that traditional carriers 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 providing customized insurance solutions.
Our custom plan options 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 policy that guards against claims mitigates the risk and many of the costs that fall on you.
At XINSURANCE, we offer 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 the right business insurance options.
We’re an insurance partner that provides coverage solutions for businesses like yours. To learn more, contact us online or call us at 877-585-2853.