How to Start an ATV Rental Business

An ATV rental is a business that rents or leases vehicles and other related accessories to customers. Outfitting and guide services are also offered by ATV rental companies.

The term “all-terrain vehicle” refers to a motorized off-highway vehicle with four low-pressure or non-pneumatic tires, a seat that is intended to be straddled by the driver, and handlebars for steering. ATV (ATV) rental is part of the rental industry. 

Statistics show that the rental market was valued at USD 15 Billion in 2021 and is expected to grow up to USD 20 Billion by 2027, registering a CAGR of 5 percent during the forecast year.

Steps on How to Start an ATV Rental Business

1. Conduct Market Research

You should conduct a market research if you are planning to start up an ATV rental service. Creating market-based research question that is in line with your business objectives is the first stage in the research process for ATV rental company.

In this regard, you should look for information that will enable you maximize your business, provide you with hints as to what your potential market will need from ATV rental company, as well as information that will enable you run the business.

a. Who is the Target Market for ATV Rental Business?

• Tourists and visitors
• Travels and tours agencies
• People who live and work in the city where you operate.

b. Is ATV Rental Business a Profitable Business?

Yes, the ATV rental business is profitable. This industry revenue has grown an annualized 0.3 percent to $57.3 million.

c. Are There Existing Niches in the Industry?

No, there are no existing niches when it comes to ATV rental business.

d. Who are the Major Competitors?

• Tri County Rentals and Sales Inc.
• Extreme Arizona ATV & Jet Ski Rentals
• Steve’s ATV Rentals
• Torex ATV Rentals-Direct Dune Access!
• High Point Hummer and ATV Tours and Rentals
• WV ATV Resort
• Peppersauce Motorsports & Rentals
• Titan Power Sports and Rentals
• White Mt ATV Rentals
• Showdown A.T.V. Rentals Tampa
• Ridin’ Dirty ATV Rentals
• RZR RIPN RENTALS
• Wasatch Excursions (Summer)
• Ville Platte Rental, Sales & Service a.k.a. Polaris of Ville Platte
• Estes Park ATV Rentals
• American ATV Rentals (Panguitch)
• Gold Canyon ATV Rentals
• Township of Greater Madawaska
• Pocono Mountains ATV Rentals
• Tol Recreational Hub and ATV Rental – See Pangasinan.

e. Are There County or State Regulations or Zoning Laws for ATV Rental Businesses?

Yes, there are county and state regulations and laws for ATV rental businesses. For example, in Arkansas, unless an ATV is being used for farming and such requires traveling from one field to another, or it requires that ATV must cross a public roadway immediately to get from one permitted operating area to another, operating an ATV on public streets and highways is illegal.

f. Is There a Franchise for ATV Rental Business?

Yes, there are franchise opportunities for ATV rental business, and here are some of them;

• TRAX PowerSports Rentals
• EagleRider Motorcycle Rental Franchise.

g. What Do You Need to Start ATV Rental Business?

• A feasibility report
• Business and marketing plans
• Business licenses and permits
• ATVs and other related accessories
• Insurance
• EIN (Employer Identification Number)/Federal Tax ID Number.
• A corporate bank account
• Licenses
• Employees

2. Choose a Memorable Business Name

When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable. Some of the catchy business name ideas suitable for an ATV rental business are;

Creative ATV Rental Business Name ideas

• Off-Road King© ATV (ATV) Rental Company, Inc.
• Four Zone® ATV (ATV) Rental Company, LLC
• Sand Crest© ATV (ATV) Rental Company, Inc.
• Lean Moses® ATV (ATV) Rental Company, Inc.
• Highlanders™ ATV (ATV) Rental Company, Inc.
• Palm Coppice™ ATV (ATV) Rental Company, LLC.
• Trento Harold© ATV (ATV) Rental Company, LLC
• Knight Harry® ATV (ATV) Rental Company, Inc.
• Stanley Morgan© ATV (ATV) Rental Company, Inc.
• Jeremie Jones© ATV (ATV) Rental Company, Inc.
• Cheeky Ride® ATV (ATV) Rental Company, LLC
• James Willow® ATV (ATV) Rental Company, LLC
• Willams Bot™ ATV (ATV) Rental Company, LLC
• Tom Parsley© ATV (ATV) Rental Company, Inc.
• Sol Nelson® ATV (ATV) Rental Company, Inc.
• Billy Brown™ ATV (ATV) Rental Company, Inc.
• Turn Up™ ATV (ATV) Rental Company, Inc.
• Andrew Zion© ATV (ATV) Rental Company, Inc.
• Ceasar Chamberlin® ATV (ATV) Rental Company, LLC
• Country Side™ ATV (ATV) Rental Company, Inc.

3. Register Your Business

a. What Type of Business Structure is Best for ATV Rental Business?

There are several possibilities, which includes; sole proprietorship, partnership, limited liability company (LLC), and corporation when it comes to the legal form of an ATV rental business, but LLC is the one majority of participants in the industry considered best. This is because  service providers want to safeguard themselves against legal action.

b. Steps to Form an LLC

• Choose a name for your LLC
• File articles of organization
• Choose a registered agent
• Decide on member vs. manager management
• Create an LLC operating agreement
• Comply with other tax and regulatory requirements
• File annual reports.

c. What Type of License is Needed to Open an ATV Rental Business?

• General Business License
• ATV License
• Zonal Permits
• Signage Permit
• Operational State Facility Inspections for your parking

d. What Type of Certification is Needed to start an ATV Rental Business?

You don’t need any certification to start an ATV rental business.

e. What Documents are Needed to Open an ATV Rental Business?

These are some legal documents that are required, if you want to run an ATV rental business in the United States of America, they include;

• DBA
• EIN
• Business and liability insurance
• Federal Tax Payer’s ID
• State Permit and Building Approval (For your parking)
• Certificate of Incorporation
• ATV Licenses
• Business License
• Business Plan
• Operating Agreement for LLCs
• Insurance Policy
• Online Terms of Use
• Online Privacy Policy Document
• Contract Document
• Company Bylaws
• Memorandum of Understanding

f. Do You Need a Trademark, Copyright, or Patent?

In most cases, there may not be need to register for trademark or intellectual property protection if you are planning to start up ATV rental company. The nature of the business allows you to conduct the business without having any reason to legally fight anyone for using the intellectual property of your firm without your permission.

4. Cost Analysis and Budgeting

a. How Much Does It Cost to Start an ATV Rental Business?

The startup cost for an ATV rental is not fixed. There are some factors that can influence the cost, such as the number of ATVs, brand and the model. Generally, ATV rental will cost from $150,000 to $350,000 initially. The price can increase depending on your  business goals and objectives.

b. What are the Costs Involved in Starting an ATV Rental Business?

• The total fee for registering the business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits, as well as the accounting services totaling – $5,200.
• Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $80.
• The cost of hiring a business consultant (writing of business plans inclusive) – $4,500.
• Insurance (general liability, workers’ compensation, and auto insurance) coverage at a total premium – $15,400.
• The cost of logistics software, accounting software, CRM software, and Payroll Software – $1,500
• The cost of leasing facilities – $75,600.
• The cost of facility remodeling and installations – $20,000.
• The cost of the purchase of ATVs-  $75,000
• Phone and utility deposits will cost – ($2,500)
• The cost of launching an official website – $600

c. What Factors Determine the Cost of Opening an ATV Rental Business?

• The size of the ATV rental business
• The choice of location
• The required licenses and permits
• The cost of equipping the ATV rental business – storage or parking facilities
• The cost of insurance policy covers
• The cost of registering the business

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

It is not compulsory to build a new facility for the ATV rental business, but if you have the required finance, it will pay you to build your own parking facility and administrative office. Building or reconstructing a facility will help you come up with a skill that will fit into your business goals and visions.

e. What are the Ongoing Expenses of ATV rental business?

• Salaries of employees
• Fueling, maintenance, and repairs
• Insurance
• Marketing costs

f. What is the Average Salary of your Staff?

• Chief Operating Officer (Owner) – $68,000 Per year
• Admin and HR Manager – $48,000 Per year
• Fleet Manager $48,000 Per year
• Accountant $38,000 Per year
• Instructors – $36,800 Per year
• Customer Service Officer – $26,100 Per year
• ATV Detailers -$24,000 Per year

g. How Do You Get Funding to Start an ATV Rental Business

• Raising money from personal savings
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank
• Source for soft loans from family members and friends.

5. Write a Business Plan

a. Executive Summary

Billy Brown™ ATV Rental Company, Inc. is a registered and licensed business that will be based in Miami, Florida. Billy Brown™ ATV Rental Company, Inc. have acquired all the necessary licenses and permits to operate in the United States. We will abide by the rules and regulations guiding the ATV rental industry.

b. Services

Rental of different brands of ATVs rental, such as Sport ATVs, Utility ATVs, Side-by-Side ATVs, and Youth ATVs.

c. Mission Statement

Billy Brown™ ATV Rental Company, Inc. is in the rental industry with a mission to make available some of the latest and safest ATVs for rent and lease to customers at all times.

Vision Statement

Our vision is to be listed as the top 5 ATV rental companies in the United States of America.

d. Goals and Objectives

The goals and objectives of ATV rental are to make available different types and sizes of  vehicles and accessories for use by the people and organizations.

e. Organizational Structure

• Chief Operating Officer (Owner)
• Admin and HR Manager
• Fleet Manager
• Accountant
• Instructors and Lifeguards
• Customer Service Officer
• ATV Detailers

Marketing Plan

a. SWOT Analysis

Strength:

• Excellent operational history
• Availability of the latest and safe ATVs
• Accurate estimates with no hidden costs
• Experienced and trained professional instructors
• Excellent customer testimonials

Weakness:

• Not enough clientele to run at full capacity
• Will need a loan to build our parking (storage) facility and to purchase the latest ATVs and other related accessories
• The owner is currently running the business solo and will need to manage construction and build it
• Lack of economies of scale.

Opportunities:

• Increase in the number of tourists and visitors to our location
• Build upon existing clientele
• Online market; services, technologies, and the opening of new markets.

Threat:

• Loans diminish profitability until they are paid off
• First-year will be financially tight while we gain customers and pay off loans
• Competition in the area could increase
• Management of employees requires time, money, and efforts
• The transport department could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses.

b. How Do ATV Rental Companies Make Money?

ATV rental businesses make money by renting and leasing vehicles and other related accessories.

c. Payment Options

• Payment via bank transfer
• Payment with cash
• Payment via credit cards/Point of Sale Machines (POS)
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer

d. Sales and Advertising Strategies

• Introduce your ATV rental business by sending introductory letters alongside our brochure to corporate organizations, households, and the stakeholders in the city.
• Print out fliers and business cards and strategically drop them in offices, libraries, public facilities, train stations et al.
• Use friends and family to spread the information about your business
• Post information about your company and the services you offer on bulletin/boards in places like schools, libraries, shops et al
• Placing an advertisement in the newspaper, or other local publications about your company and the services you offer
• Encourage the use of word-of-mouth marketing from satisfied customers
• Join local chambers of commerce and industry to market your services.

Financial Projection

a. How Much Should You Charge for your Service?

A one-person ATV ride for an hour might cost $100 on average. While one-hour trip on a powerful ATV for four people costs $600.

b. How Much Profit Do ATV rental Business Owners Make a Year?

The profit an ATV rental business owners are expected to make a year is not fixed, but on average, they can make over $85,000.

c. What Factors Determine the Amount of Profit to Be Made?

• The capacity of the ATV rental business ( the number of ATVs owned)
• The location ATV rental business is covering
• The management style of ATV rental business
• The business approach of ATV rental business
• The advertising and marketing strategies adopted by ATV rental business
• The number of years ATV rental is in business

d. What is the Profit Margin of ATV Rental Services?

The profit margin of ATV rental is not usually fixed. It could range from 5 percent to 25 percent depending on the distance covered and other factors.

e. What is the Sales Forecast?

• First Fiscal Year: $240,000
• Second Fiscal Year: $360,000
• Third Fiscal Year: $480,000

6. Set Up your Shop/Office

a. How Do You Choose a Perfect Location for ATV Rental Business?

• The demography of the location
• The purchasing power of businesses and the residence
• Accessibility of the location and availability of lakes
• The number of ATV rental businesses in the location
• The laws and regulations of community/state
• Traffic, parking , security et al

b. What State and City are Best to Open an ATV Rental Business?

• Clearwater, Florida
• Portland, Maine
• Orange Beach, Alabama
• Ocracoke, North Carolina
• Block Island, Rhode Island
• Carmel-by-the-Sea, California Los Angeles, California
• Long Beach, Washington
• Newport, Rhode Island
• Chicago, Illinois.

c. What Equipment is Needed to Operate an ATV Rental Business?

• ATVs
• ATV tracker
• Booking software
• Dash Cam

7. Hire Employees

When hiring employees for ATV rental business, you should hire a competent chief executive officer (you can occupy this position), admin and HR manager, fleet manager, accountant, instructors, ATVs detailers and customer service officer.

8. Launch the Business Proper

No ATV rental company opens for business without first planning an opening party to formally launch the enterprise. If you have a limited budget, you may choose to do soft party. With launching, you will officially let the residents of your community know that ATV is open for services.

a. What Makes an ATV Rental Business Successful?

• Choose a good location and the latest ATV to launch the business
• Hire competent, hardworking, and trustworthy staff
• Be deliberate with your marketing sales approach
• Encourage the use of word-of-mouth to promote your ATV rental business
• Leverage all available online and offline platforms to promote your ATV rental business

b. What Happens During a Typical Day at ATV Rental Business?

• The business is open for the day’s work
• The ATVs are washed, cleaned and ready for rental
• Customer’s requests to rent and lease ATVs are attended to
• Schedule maintenance of the ATVs is carried out
• Marketing/website upkeep
• Supply ordering
• Administrative duties
• The business is closed for the day.

c. What Skills and Experiences Do You Need to Build ATV Rental Business?

• Business management skills
• Customer services skills
• Interpersonal skill
• Logistics and material handling skills
• Bargaining skill
• Work experience in the ATV rental industry
• Experience in managing people
• Experience in business administration
• Experience in handling logistics and transportation software.