A new and exciting business opportunity exists in Eugene, Oregon. 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. This market is currently not covered by Eugene’s businesses.
A student can have their own transportation for the school year, but it costs slightly more than a monthly cell phone bill. Mopeds are more cost-effective than cars and have lower fuel consumption. You can also insure these vehicles at a cost of $30-50 per year.
The target market for this business would be the approximately 15,000 full-time students. Autzenfield is home to thousands of students who commute every day. Parking is difficult on campus and the bus has few options. This is where the economical moped comes into play.
Many students do not have the disposable income that it takes to purchase a moped, but they are in a position to pay $50 per month to rent one. 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 equate to 150 mopeds rented. 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.
1.1 Objectives
- Rent 150 units in the first year.
- By year three, University Mopeds will be completely self-sufficient and financially viable.
- Rent at most 199 units by the end of year three, and 263 by year five (15% annual rate of growth).
1.2 Mission
University Mopeds is the first company to service students. University Mopeds clients can rent quality transport at a fair price. University Mopeds will also be a profitable business which will treat employees fairly and provide financially for its owners.
1.3 Keys to Success
- Customer service excellence and quality.
- Affordable rental prices
- Reaching your target market
- Integrity in our customer service results in repeat customers