Rental start-up advice or business plan

[[email protected]]

It is exciting to enter such a progressive and promising world of Segways.

My name is Jeff, and I am opening a Segway rental business with the support of Potomac Segway (Austin Colby - Hagerstown MD).

Austin's advice was to query the group here, for some of my start-up and business planning questions.

Thus, I would appreciate any help and/or advice: business plans, market strategies and demographics, financials such as P&L, breakevens, projections, operating costs and expenditures, etc. -- anything would be appreciated.

While I have somewhat unique plans and marketing concepts, there is much to be learned from an established business, no matter how dissimilar.

Hopefully somone feels secure enough, and proud enough, of what they have learned and accomplished, that they will want to share with me so that I might learn from them.

Thank you so much, in advance!

-Jeffrey Hutman

17016 Taylors Landing Road
Sharpsburg, MD 21782
[email protected]
(301) 432-0660

[Timezkware Tim]

I'm not in the rental business, but I can tell you one thing, for sure. I would strongly advise doing the proper instructional demo before letting anyone rent.

The threat of collision (mostly by inexperienced gliders like renters) already has some local juristictions banning their use in areas and incorrectly labeling Segways as "dangerous". This is very, very bad for Segway's image, to say the least.

Tim

[Florida Ever-Glides]

Jeff,

First of all, if you do Segway 'rentals', your on your own as far as I'm concerned. A very risky venture to say the least. Broken machines (which are very expensive to repair), injuries, and 'finger pointing' as to blame, is a part of the rental game. Be prepared, your city may not even approve your business. Rentals have shown the 'potential unsafe' and 'horseplay' side to Segway riding. And, after repair costs, you probably won't be pleased with your year-end numbers.

Secondly, the handing over of years of business experience and trade stratigies and financials to a stranger has nothing to do with being secure or proud, it's stupid. For that kind of information one would usually pay a consultant thousands of dollars.

I have helped dozens of people with answering general questions mostly regarding safety issues with the customer.

The best advice I could give you is DON"T do rentals. You won't be doing yourself or the industry any favors. Dealers are in the business to sell/service Segways. They really don't care what YOU use them for.

I just spoke to a woman who started a Segway rental business a few months ago. She is currently 'dying on the vine'....

Whichever you decide, please go the extra 'ten miles' to keep it safe. Bad accidents = bad press. This hurts everyone here.

[Timezkware Tim]

Originally Posted by Florida Ever-Glides

Jeff,

First of all, if you do Segway 'rentals', your on your own as far as I'm concerned. A very risky venture to say the least. Broken machines (which are very expensive to repair), injuries, and 'finger pointing' as to blame, is a part of the rental game. Be prepared, your city may not even approve your business. Rentals have shown the 'potential unsafe' and 'horseplay' side to Segway riding. And, after repair costs, you probably won't be pleased with your year-end numbers.

Secondly, the handing over of years of business experience and trade stratigies and financials to a stranger has nothing to do with being secure or proud, it's stupid. For that kind of information one would usually pay a consultant thousands of dollars.

I have helped dozens of people with answering general questions mostly regarding safety issues with the customer.

The best advice I could give you is DON"T do rentals. You won't be doing yourself or the industry any favors. Dealers are in the business to sell/service Segways. They really don't care what YOU use them for.

I just spoke to a woman who started a Segway rental business a few months ago. She is currently 'dying on the vine'....

Whichever you decide, please go the extra 'ten miles' to keep it safe. Bad accidents = bad press. This hurts everyone here.

I was hoping that you would show up with some frank words of wisdom, Tom. Thanks!

Jeffery, take a look at this thread (below). This is an example of how quickly things can go wrong in the rental business:
http://forums.segwaychat.com/showthread.php?t=13460

Tim

[[email protected]]

Thank you for the (not-so) welcome.

To clarify, I was not asking for trade secrets, and I failed to include "guided tours" in my description. Not just "rentals." My apologies.

Your "liability, access, and repair" points are well-received, but have already been considered and addressed to my satisfaction. Thanks.

And BTW, I am “a consultant that gets paid thousands.” And I have subsequently offered such valuable insights and documents (deemed non-proprietary) for free.

Funny, I don't feel "stupid" at all. But rather proud of my dignity for helping another reach a dream, proud of my hard-earned professional acuity, and secure with my future, and business judgement.

It can't hurt to ask -- might be someone else out there like that.

So, thank you for your free input of negatives -- they're very valuable too! (Unfortunately it all sounds very damaging to the "Segway reputation” for quality, maintenance, longevity, and dealer/manufacturer support.)

[Florida Ever-Glides]

I'm not trying to be negative, but their are pitfalls in this industry that could hurt a lot of other businesses. But since you're a high paid consultant I'm sure you already know all of this. Sorry for insulting your intelligence...

I doubt that you'll find any likely businesses who have 'sweated' over the years, and are successful, that will hand over their business plan, but good luck...