Investor Information – Speedway Rentals

Thanks for your interest in investing! Here are answers to all your questions about growth and risks.

  1. Fleet Expansion: Plan to add 2 more cars in Year 2 through leasing. This increases capacity by 50% to meet growing demand.
  2. Accident Costs & Insurance: Full commercial insurance covers accidents. We keep $5,000 reserve fund specifically for deductibles and claims.
  3. Repair Reserve: Maintain $5,000 cash reserve at all times for unexpected repairs and maintenance.
  4. Breakeven Point: Need $3,500 monthly revenue to cover $2,350 fixed expenses (65% gross margin). Currently profitable from Month 2.
  5. Competition in Terrace: Lower daily rates ($70-90 vs Budget/Hertz $100+). Target students/workers they ignore. Very few local competitors.
  6. Hiring Plans: Start solo, hire 1 part-time cleaner/driver when we hit 15 rentals per month (expected Year 2).
  7. Off-Season Strategy: Special promotions for local workers/miners, long-term corporate rentals, winter tyre packages.

Risk Management:

  • No debt = low financial risk
  • Monthly maintenance prevents breakdowns
  • Insurance covers accidents/liability
  • Conservative growth projections based on actual Terrace demand

The business shows steady profit growth with no debt. Happy to provide detailed financials!