What's going on guys welcome back to the channel, i am super excited to start this series on my channel with you guys, because this is something that we otherwise typically don't do on this channel. So, if you're new to the channel welcome, what we're going to be doing is trying to start a business from the ground up and turn it into a profitable business. Now the business model we are doing is a small car rental business by using the application turo. So if you're not familiar with this, that's okay by the end of this video you'll, probably be very familiar, but you've probably heard of air b and b.

This is pretty much the same thing, but with cars. So the opportunity to get in is a little bit easier than say another business, because the capital requirements are a little bit lower, so to speak. So that being said, this whole series and this whole playlist is really going to walk you guys through my whole process of market research and setting up a company and hopefully getting it to profitability along the lines. You will see me purchase cars.

You will see me open up llc, you will see me open up. The turo account do the marketing side of it and pretty much everything that my brain has thought of to go in and make this business. So in this video today pretty much what we're going to run you through is all the things that you first might initially want to do when starting this and my goal is that either you might be able to start doing this yourself or you could at least Follow along and learn a whole lot about business just by watching this series so before we get started. What i want you to know is: turo is an application.

You download on your phone, and you can put up your own car for rent and strangers, will come and rent your car. Ideally, you are just being a small car rental service yourself. Now there is a way to monetize this and actually turn it into more of a business. Turo's business model was to create a car rental company to basically beat all the current car rental companies by having access to everybody's car in the world.

So really they just ask for you to upload your car and provide it as a rental car and that's how turo created their business and it's really made off the backs of individuals renting out their car on spare time. Well, if you take it a step further, you could actually turn this into a small business yourself, a small car rental fleet. So i don't want to make this video too long. It's going to be slightly long, but what we're going to do now is we're going to starting to go into market research using turo in some of the analytics to start building the idea of how much money you might be able to generate and the things that Go into it, so what we're first doing is we're looking at turo here.

What we're looking at is a tesla model, three, not that we want to look at a tesla model three, but best specifically. What we're doing is we're looking at this gentleman's account. His name is simon: simon has been on turo since 2017.. He has done a total of 2549 trips.

Now, before you understand what's important about 2549 trips, you have to look at some other data as well, so again we're going to move forward, but just know that simon has been on since 2017 and he's in a total of 2549 trips on turo. Now, if i move over to this tab here, you will see that the average trip on turo is four days, so if he has done a total, this is simon where'd he go. So simon has done a total of 2 549 trips at an average of four days per trip that comes out to ten thousand one hundred and ninety six. Now what we wan na do is just kind of scan through simon's profile.

Simon has multiple vehicles listed here. I believe he has about 12., so he's got 12 or so vehicles, tesla, mercedes honda, ford, ford, chevy, chevy, honda, ford, bmw, chevy, chevy, et cetera, et cetera, et cetera. Now you will notice that most of his cars are priced right at about the 99 per day summit at 129, 149 blah blah blah blah blah so based on the assumption that most of his cars are renting for around 99 a day we could go back to Our calculator in times thousand one hundred and ninety six by ninety nine and that's going to come out to one million dollars. So, theoretically, if my numbers are accurate since 2017 to the current date and time based on the amount of trips that he's done, based on the average trip with turo based on how much money he is charging not considering expenses and not considering additional profit that he Can make from other services that can also be offered aside from the daily cost of renting the car? The numbers come out to about a million, so from 2017 to 2021.

He has generated roughly and fifty thousand dollars in revenue per year by managing these cars. Now again, the one million dollar number over the course of four years is a rough estimate, because just by looking at these numbers, we don't know exactly what simon or what he is paying for insurance. We don't know exactly what the repairs have costed over the years. We don't know um, you know exactly if all the cars rented for a hundred or if they rented for slightly more and so on and so forth.

So it's hard to get an exact, but nonetheless, you can see there is a means to make or generate significance. A significant amount of money and or revenue through doing this now another thing to consider is why would someone like simon have done this for four years if he wasn't making money or if it didn't, actually be beneficial to him? So with that being said, it does appear that it is beneficial to rent or do a small car rental service on turo. If you can manage it properly and you have enough cars, it does seem like a way that you can start a small business and make some money over the course of your lifetime. Now, let's say that you were able to do this for 12 years.

Are you at three million dollars in revenue now so to speak? There is some potential here, so this is sort of the first steps that i went into researching competition, researching the market and seeing what this has to offer. Now i myself am located in detroit sort of i'm located in michigan. Now, michigan really isn't the biggest state when it comes to cities and popularity and population size. So the population pool that i would be working with here in detroit is significantly smaller than the population group that people will be working with in miami chicago in california and so on.

So, there's an issue that i would run into trying to start a business here in detroit, which was my first hurdle to overcome, and that was the logistic side of. It is making sure that i am able to provide rental cars within the detroit area and to anybody that's in coming from the airport. Most of the money when it comes to renting cars in detroit is most likely going to be into the city. It's not going to be in the suburbs, and it's going to be around the greater detroit area and the dtw airport.

So my first concern with opening this business in order to even compete with some of these biggest competitors in this market is making sure that my foot is in the same locations as theirs, which is around the detroit area and in detroit. So i've already been partnering and working with a couple people that have shops and locations around the airport. Right now i have um. I have one location that i'm guaranteed and able to work out of i'm working on securing a second location and i'm working on a third location.

The second and third location are up in the air. If those don't go through, that's completely fine, but if, in the future the two locations do go through then we'll have three locations located in the greater detroit area, ranging from dearborn heights to detroit and the detroit area or dtw airport. So we will be able to run three locations which would greatly significantly or greatly increase our exposure into the market, which would give us some extra edge. Now again, this video is going to be long, but it's all really good content and information for you guys if you're planning on starting any sort of business, this is sort of what you're going to have to do all right.

So aside from that, there's a couple more details and things that i would like to talk about here, all right. So if you're going to be renting a car on turo or if you're going to be starting any business, you kind of have to know what products you're going to sell things that are going to work well in your market. Well, turo has already done some of the work for you, of course, turo knows exactly what cars are renting, how much they're renting for and what those cars or what the most popular cars are being used on their platform are, so you could just simply go to Turo and figure out what are the most popular cars that people are renting on turo and they do the fun for you. They have broken it down by daily drivers, sport, luxury and suvs.

Now, of course, turo is going to make no money unless people come and put cars on their platform, so turo obviously is going to do everything in their power to incentivize and gravitate people to their platform to try to get them to use this platform. The way i'm going to be using it or else their business model will fail, so their business model relies on us willing to come in and use their platform. Okay. So that's why they've gone ahead and they've done all this research for us.

So again we can look at here at the numbers, so we'll go from the top, the daily drivers, the most common ones, a fiat 500 and a ford fiesta. Next one down is a ford mustang, chevy camaro. Next, one on the list is going to be an audi and a mercedes, cla class. The next one down is going to be a jeep wrangler, jeep cherokee and then, if you go into minivans, is dodge grand caravan.

So you can see what the most common cars are rented out on their platform. You can see the average price you can expect to make per rent per day on those vehicles, and you can see the average amount of days that is booked per month so based on these numbers, if you were to pick up one of these cars - and you Run a successful tour of business. These are some of the numbers that you could generally expect to make. Now it would tell you that, depending on the market you're in, like me, i'm in detroit turo is taking the data from detroit new york la idaho, everywhere and they're, bringing it together, and this is what they're coming up with now.

Their recommendations on cars and vehicles that you should use does not guarantee that that's a car that you should use in your market, see for me being located in detroit people, do kind of like those um fuel-efficient vehicles again being in detroit, we're not the highest income City in the first place, so again, a lot of the popular cars out in my area do tend to be like ford focuses for fusions and chevys, and some of the hiring cars still rent very well, but also being in detroit. If i'm going to run a successful car renting business, you would assume i would want something like a jeep wrangler and something that can handle the wintertime snow really well. So if you're, someone in arizona it might not be the most logical thing to be renting out a truck or a jeep, considering it's really hot you're not going to run into snow. So again, you do have to use your brain in that sense, all right.

The next thing that i'm going to pop on over to is this currently turo is running an incentive, not that you'd have to use this, and not that this is going to make or break your business. But this is me trying to help. You understand that if you're going to be an entrepreneur, a hustler and you're going to make money on your own, then you got to know how to work. The system as best as you can so currently turo is offering an incentive, and the incentive goes as follow.

For the first car that you put on turo they're, going to give you an extra five percent, this would be a good time for me to jump in and explain something else. Turo takes a 25 cut on all of your trips. You keep 75 percent, so they get a 25 cut. You get 75 well.

The first card that you add, they're gon na give you back an additional five percent, so you're going to make 80 revenue on the first car that you rent out as opposed to 75. If you join during this incentive, which i intend on doing the next one is they will give you seven point five percent back for your second car, ten percent for your third twelve point, five percent for your fourth and fifteen percent for your fifth. So the more cars you put onto the platform, the more money you will make in return and the reason they're giving you this incentive is because without your car is going on the platform, their business model doesn't exist. So with that being said, that's why it's structured.

This way, now, how could you use this structure to benefit you more well? For me, my intention is: i'm going to start with anywhere from five to six vehicles on turo, starting with a capital of anywhere from 65 to 70 thousand dollars. Now my objective is: i want to have some higher end sort of luxury nicer cars, as well as a mix of some middle-of-the-road cars that are fuel efficient, that don't cost as much. So the way that i'm going to get my foot into the door with turo and the way that i am going to operate this business starting off is we are going to pay cash for a couple vehicles that are in the lower price range around 10, 000 Or so that don't have too many miles on it in good condition that will rent for a lower number, so they maybe only rent for 35 50 bucks a day as opposed to a hundred. We will first post our lower earning cars first, so that that way, turo's commission, their highest paid commission will be on our cars that generate the least amount of money.

So we are first going to add the cars that will make the least amount of return for us first that way, turo makes less off of us. We will then add our more expensive cars at later date, so that we get more money back on our higher generating cars and so on. So that is sort of an approach as a business person. You should take always looking at the numbers and figuring out.

What's going to work best for you, it would be really stupid for me to put up a tesla, that's going to make 200 a day and allow turo to make 20 off the 200 a day, as opposed to putting on a tesla that makes 200 a day And only giving um turo 10 of that revenue. So again, this is a way to structure how your cars go on their platform to greater benefit your revenue in the long run. So that is really the strategic side of adding the cars to the turo platform to generate more money. Now the next thing that we're going to be doing is, we are going to be listing, those lower end cars first and we are going to be charging or we are going to come in and we are going to undercut the detroit market.

We're still going to be making money, but we're not going to be making money as if we were charging full price. Now the objective and the reason for doing this is just like anything. If you come in with a lower price than anybody else, you're going to attract new customers faster, so the goal is to undercut the market with our lower uh middle of the road cars that way we can get renters into our vehicles sooner and quicker, build our Reviews faster on the platform, which will then in return, build credibility on our profile, which will then result in more renters, more riders, more money and more revenue, and the other thing is is if we rent the smaller cars out sooner at an undercut price. That provides credibility, which will then also make a new customer feel more comfortable spending more money on our higher luxury vehicles, because we already have the reviews to back it up.

Even if the reviews aren't on the luxury cars, the reviews are coming from trusted. Customers who have used us and they feel that they're comfortable using our service, that in itself, is enough to probably convince another customer to jump into our higher paid vehicles. And that really is everything that i have to show you in this video kind of as the starting point. Really.

The next thing that we're going to be doing is we're going to be going out, picking which cars we want shopping and buying up those cars, and that's what's going to come next after that, we'll be setting up the llc and after that it will be business Bank account and after that, well i don't know exactly so. I hope you guys tune in. I hope you stick along for the ride. It's going to be extremely fun.

You'll learn a ton about business, so you'll learn just just a ton, so i hope you guys stay tuned. I hope you follow along and if this ends up working very very well, then obviously you guys can take everything that you've learned throughout the series and hopefully apply it to a market near you. So with that being said, i appreciate you guys tuning in make sure the thumbs up button subscribe, hit the notification bell, so you don't miss out on our next video. Take care.