Please, analyze this business idea

[minnesotacold]

I have been thinking about this idea for the last couple days and it does not seem possible or feasible. I live in an area where we have about 50000 college students and I was thinking about starting a rent-a-center for college students. Basically, we would rent out DVD players, entertainment centers, TV's, desks, furniture and other dorm items for the term. However, it seems like I would have to rent these items at a very high price in order to make any profit which may discourage them from renting, since buying would seem a more reasonable option. I know there is a need for the service, I know it is feasible but I am not understanding how I would profit from this venture. What do you think about this business model?

[nate89]

Hmm...the fact your renting it out for a long term and not a few days means you would have to charge alot to recoup the money. Unless you have some large capital so you can buy all these items and spend a few years recouping the investment, then after that rolling in the profits. But bearing in mind you could rent a stereo system out and it could be ruined by the end of the term...

What about doing it along the lines of rent to buy items?, or a lease agreement. That way its less a service of renting the item, and more one of offering alternative payment terms to the student. A very simple example would be say you buy a desk at $100, rent to buy the item to the student for £150 over a 12 month period and in the end they own the table. Your $50 better off, and they havnt had to stump up $100 at the start of term for a desk.

I actually quite like the sound of this idea...sned me a message and we can talk more if you want.

[minnesotacold]

Nate: Thanks for your insight! I am still thinking of ways to provide services or products to college students and the rental thing was just an idea but I think I am on the right track. There is a guy that started a business delivering cookies to college students and his business is booming, he went from 1 store to 9 stores in a couple years.

[jandrade22]

College is a big business, I am developing a website towards Fresno State University called bulldogscard.com we will have this running by Jan 5, 2009. We will be giving them a cash card (a credit card) that has 1000 merchants on a single card with money....huge business....

[hugh009]

You would be in competition to some BIG companies like Aaron Rents which I know is HUGE in the South USA and could be big in other parts of the USA.

What if you started a college coop as a Social Enterprise?

Hugh

[Gopal Dev]

In theory your idea sounds really good. I just worry that if you rent the items for the whole term the students may trash them and you may have to keep purchasing more items while still waiting to recoup on the initial investment. Best,

Gopal (The Musical Mad Scientist and Entrepreneur)

The v-Fusion Group

[Brainy]

I would have to say that most college student probably have access to a computer in which plays DVD movies. So renting DVD Players is really not necessary.

If you stumble across a business idea that you'd like to "test" simply get the book called "Entrepreneur America" by Rob Ryan, and run through what he explains to do to test the business idea. (book is also called "Smart Ups" but I would invest in the hard copy edition for yourself)

I really recommend this book and have used it myself for many years.