I was in Jomo Kenyatta University of Agriculture and Technology last week and i came across this great business idea that has be started by a student at the institution.
The business idea is Hiring bikes to students and getting paid for your service.The idea is just like the car rental business.
Why Bike Hiring business is a Profitable business?
Being a business enthusiast i couldn’t help but interview the owner of the business. He started the business 3 months ago and he told me that its picking up well and earning him a considerable amount of income.
The following are the reason why the business is profitable
1. The population in Kenyan universities is high especially during the September an January semesters. This will thus guarantee the business owner constant and loyal customers
2. The business has not been flooded with competitors. This will lower your advertising costs.
3. Bikes are not prone to frequent damages and if damaged it will only take little cash to repair it.
4. No running costs such as fuel and thus the income generated is purely profits.
Requirements to start this business.
- A good location that is frequently visited with students. For example near the student hostels, near the tuck shops, student center etc.
- You will need to buy bikes that are of quality and in good conditions.You can start with 5 bikes which will cost you roughly 25,000 since a starter bike or ex-UK bikes cost around 5000 each.
- Rental store. This will be your work station for storing your bikes and for hiring the out.
How to Hire your bikes
In order to avoid fraudulent behaviors such as students hiring the bikes and disappearing with them for good this what you should do.
- When hiring the bike make sure the customer signs and indicates the time he took the bike.When he returns he should also sign and indicate the time he returned the bike.
- Make it a rule that in order to hire a bike the customer should leave his national id card at the rental shop so that it can be easy to track the customer if he tries to steal the bike
Evaluation and estimation of profits
The bikes are rented out at rates of 2ksh per minute thus per hour the customer will pay you 120ksh.
Assuming that you have 5 bikes and you hired each bike for 2 hrs this is what you would approximately make:
This is an estimation on the lower end.
Article Author: Nelly(Business enthusiast and contributor of Hustle Yetu)
This article should not be reproduced without authors permission