Beware of False Dreams

[Florida Ever-Glides]

I see numerous rental/tour companies popping up who's main goal is really nothing more than charging you a LOT of money to set you up with your own Segway rental/tour business. Folks, if it seems too good to be true, it probably is. Do not spend your hard earned money, or worse borrow money, until you have checked out the reputation and history of the person/group trying to get you to 'buy in' to a dream that in many cases will turn into a nightmare. There are only a couple of Segway rental/tour business out there that are successful.

Find out about their track record, talk to legitimate references, find out how long they have been doing it. It may be wiser for you to develop your own business plan, as I did. I could have 'wasted' $20,000-$50,000 on other peoples 'pipe dreams' if I had allowed myself to buy-in.

The opportunity is there, but please be careful. There is a very limited window of opportunity, and you must be willing to work your tail off seven days a week to have a chance of success.

I get bothered when I see another company offering to set someone up as a rental/tour operator when the group has never even led a tour or rented a segway. They're out there, please 'look before you leap'...


Tom Jacobson

[Segway City]

Tom: Bravo! I've been approached by 3 different groups in attempts to steer me towards their "turnkey" rental or tour operations. When asked to provide details, each offered nothing substantial to gauge their offering, including prices for their services! Then each quietly withered into the shadows to await their next "candidate".

All the red flag rules apply here: ask for details, don't sign anything and know what true costs are. Beware confidentiality agreements that must be signed before disclosure, which may prevent you from entertaining anyone elses's offering. Beware those who tout alliances with LLC but provide no details. Beware those who "have the insurance thing licked". And recognize that paying for someone else's expertise only works if: 1.) they really are an expert, 2.) their expertise actually is assistive, and 3.) the cost of that expertise is less than what it would cost for you to personally gain the same level of knowledge.

In this case, you can be your own best friend (by learning and becoming business savvy) or your own worst enemy (don't investigate fully, allow greed, speed or laziness to rule your decisions, don't appreciate what you can do on your own with a little moxie!).

[SegwayUtah]

Segway City, others:

quote:Beware those who "have the insurance thing licked"

I actually had an owner of an authorized Segway rental company tell me that they had gotten "really cheap insurance" from a friend. Seriously.

I don't think that Segway LLC encourages the rental centers to get sketchy insurance, or technically even allows it, but be aware of this when you're looking for insurance. Even if they say "authorized Segway rental companies use us" the insurance may not cover you like you think it will.

Chris

[Relay]

But at the same time, I have been approached by a number of people who are interested in starting their own touring/rental business (with Segways) and their expectation is that I will consult with them for free.

I have become much more selective with who I will do business with, just because I find that many of the people who want to run a business have neither the acumen nor the experience to make a successful undertaking. My concern is that even one dramatic failure will harm both the "industry" and the technology.

In any new "industry" there will be people who try to take advantage of naivete. Consultants are consultants in any industry. You need to interview them and only work with them if you are comfortable. Never the less, there is no one in this industry with more than 3 years experience, and the select group that has more than 1 year are all current or ex-segway employees.

My advice (free) to anyone contemplating consultative or services based "help" - always have them write you a proposal or a statement of work. If they won't commit to it in writing, they probably can't complete it. Also ask for and check out references.

[Matt]

I need to apologize - I inadvertantly made the last post from my old Relay account. I am no longer associated with Relay and the inferences and opinions stated in the previous post reflect only my own and not those of Relay Transportation.

For clarification on my views, please refer to matt@segfest.com
For clarifications or official responses from Relay, please refer to Keith Albrizzi at Keith@relaytogo.com

[Florida Ever-Glides]

I get approached every day by our customers that would love to operate a tour business such as ours where they live. They frequetly ask me if I plan to franchise soon. I always reply that McDonalds didn't franchise after only three months+ in business. I tell them that I'm still flipping burgers, I have a ways to go in perfecting my trade. Talk to me in five years.

The only reason we have been sucessful quickly is the marvelous 'free press' we have received nationally. This scope of free advertising only comes once in a lifetime, if you're lucky. If we didn't get it, we would be only moderately successful. But then again, my wife and I went into the 'guided tour' business because we wanted a fun new lifestyle.

You have to advertise to get your customers. But in a Segway related business, if you spend too much on advertising, it could kill you. It's a fine line.

We are also told that it is our personality and enthusiasm on the tours that make ours fun to go on.



Tom Jacobson