Here's a rough business plan, any business owners care to give feedback?

Question

I live in NW Washington near a small island chain known as the San Juans. I have an interest in electric vehicles... I wonder if I could sell them to islanders as a main means of transportation on the islands. I think it would appeal to their sense of wanting to preserve the islands' natural surroundings, and lessen the impact etc. I could have a few electric cars on each island and spend a day on each island... Plus, this would give me a good excuse to relocate to the islands. Here's a link to the type of vehicle I'd be trying to sell.

http://www.gemcar.com/


Your thoughts...

Answer 1

Jon;

The idea you have presented has some merit, and I do like the concept.
I played around in the web site and built a few cars for fun. I do have a few
suggestions for you prior to committing any capital to the purchase of the units.

You will have to do market research, there is no avoiding the issue, as your capital expenditures will be considerable. As an eco friendly mode of transportation there is more to the market than meets the eye. I can think of 20 locations off the top of my head where this could be a profitable enterprise.

I am not sure how far into the business plan you currently stand or if you have attempted negotiations with the manufacture on price points. I am assuming you will purchase directly from the manufacture and not local dealerships.


You will also need to explore and analyze your target market demographics in depth and due to the design of the vehicles, environmental considerations must also be taken into account. Terrain such as hills and distribution of payloads will have a negative affect of the overall performance of each unit.

Once you complete you’re study and research on the market you should have the answers you need. If you hire a company to do the survey for you, remember it’s how the question is phrased that gives you the correct information. Very important!

This is an emerging market and there is lots of room for growth…


Best of Luck

Answer 2

Depending on the cost of the vehicles... But the range is 40 miles per charge, how long before the batteries begin to fade and the range becomes 20 miles. Cost would be the big issue... Just a note, I think they rent these things at Myrtle Beach, SC.

I would have to do an impact study before setting myself up in such a business, which would require a car to drive around and show to people to gauge local interest, at fairs and such.

Answer 3

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I like your plan - the GEM cars only do 25mph, but that should be fine for that sort of community.
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Even though EV batteries need occasional replacement, maintenance and driving costs are still much lower than gas vehicles. I'm an electric car owner. In Detroit, where I live, there's a special EV charging rate of only 3 cents/KWH. In an electric car that gets 4 miles per KWH, I can drive 1000 miles for only $7.50. That's right, SEVEN DOLLARS!! Even if electricity costs 10 cents/KWH, that's still only $25.
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Compare that to a gas-fueled car, getting 20mpg. In that car, 1000 miles costs about $125.00!!
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How about battery costs? My car uses old-fashioned lead-acid batteries, which last me about 25,000 miles. Replacing the batteries costs about $800 to $1000. They probably last me anywhere from two to five years, depending on how hard I drive. So that works out to somewhere netween $150 to $500 per year.
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But that's my only maintenance cost. Electric motors only have ONE moving part. There are no oil changes, no coolant, no filters, valves, NOTHING. My car is 25 years old (made in 1981), and the motor has NEVER needed service of any kind. Even the brakes last much longer, because regenerative braking uses the electric motor to brake the car instead of the brake pads.
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If you are looking for reasonably-priced electric cars with more speed, you will find freeway-capable electric car conversions in the links on the bottom of this page:
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http://www.squidoo.com/cheap-electric-car/
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Some of these cars can be had for as little as $5000!
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