An exciting new business idea is possible in Eugene. University Mopeds will to rent mopeds to University of Oregon students, as well as anyone who would have a need for efficient, around-town transportation. There is currently no business like this, in Eugene, which caters to this market.
It is possible to rent a student’s own vehicle during school for just a little more than a monthly cellular telephone bill. Mopeds offer many advantages over cars, including lower operating costs and fuel efficiency. They are also less expensive to maintain. These vehicles are also affordable for insurance at around $30-50 per annum.
This business targets approximately 15,000 students who are full-time. There are also thousands of students who are commuting daily from the Autzen Field area. Parking is hard to find on campus. The bus provides few options. This is where an economical moped can come in handy.
Students don’t have the money to buy a moped but can rent one for $50 per month. University Mopeds would buy used mopeds from $400 to $700 and lease them out. In less than one year, the average moped could be paid off.
University Moped will attempt to reach 1% of full-time students in year one. This would translate into 150 rented mopeds. The 5-year growth rate should be no less than 15%.
University Mopeds may be profitable in year 2. If they purchase a bike at an average price of $550 and rent it for ten months at $50/month, then that is likely to make them profitable.
- Rent 150 units in one year.
- University Mopeds will be fully self-sufficient and profitable by year three.
- Rent at minimum 199 units for the third year and 263 for the fifth year (15% annual increase rate).
University Mopeds is the first company to service students. University Mopeds clients can rent quality transport at a fair price. University Mopeds is a profitable company that will pay its employees fairly and make money for its owners.
1.3 Keys for Success
- Excellent customer service and value.
- Affordable rental prices
- Reaching the market.
- Integrity in service to our customers results in repeat business.