Blog

We are seeking strategic business partners for ride share clubs.  Partners can purchase up to a 50% share in the business. Partners would have equal voices and votes in all business planning and decision-making. You or your firm would provide services for Reliable Rider LLC and the Reliable Rider Clubs (DBA). Your firm would bill your regular service rates. Contact us if you are interested.  

Market Size

One of the most important factors when evaluating business potential is market size.   The 2020 Profile of Older Americans (May, 2021) shows the market size for Reliable Rider club members.  In 2019, the population age 65+ was 54.1 million (30 million women and 24.1 million men).  We can break the 54.1 million down further using Statista.com.  Age 65 to 69 has 8.39 million men and 9.4 million women.  Age 70 to 74 has 6.79 million men and 7.88 million women. Age 75 to 79 has 4.47 million men and 5.51 million women.  Age 80 to 84 has 2.75 million men and 3.72 million women. Age 85 and over has 2.41 million men and 4.24 million women.  If Reliable Rider focused its target market only on people 80 or older, there are about 13.12 million people in that age group.  The 85 and older population is projected to more than double from 6.6 million in 2019 to 14.4 million in 2040 (a 118% increase).  Two percent of persons aged 75 to 84 live in nursing homes.  Eight percent of persons over age 85 lived in nursing homes.  Nursing home residents already have their transportation needs met. Researching the senior marketplace will help identify who the potential customers are.

Business Strategy

Entrepreneurs usually begin with innovative ideas. However, succeeding in a new small business venture also requires objective assessment.  Assessing the company's current financial performance and its potential financial performance are important considerations. Reviewing historical sales revenues, profit margins, recent sales trends and cash flow are essential.  A thorough sales assessment will provide insights into how sales have taken place and where you might improve sales outcomes. Identify sales trends by analyzing where the services are selling and to what types of customers. A team of Search Engine Optimization (SEO) experts can reach potential customers.  SEO marketing can target potential customers with laser-like precision.  SEO marketing also has the potential to go viral.  If a video, image or story goes viral it spreads quickly and widely on the internet through social media and email.  Going viral means there are millions of views, with no increase in marketing costs.

Business Potential and Risks

What’s the most likely financial return? What is the highest financial return possible? How much downside risk comes with the business?  What is a realistic timeline for growth? Managing a small business takes a large amount of time and energy.  Is the work involved in the business attractive and meaningful to you?  Is the business a good fit for your talents, personality and skills?  Does the business have a demonstrated or proven market need?  Is there sufficient demand for this transportation service? What advantages does this business have over competitors? What makes this business unique and attractive? Does the business have intellectual property (patents, trademarks, copyrights) that gives it any advantages?  Can the business fill a market need?  Do you see a growing market for this type of transportation service? Are there other businesses that are similar that have been successful?  

Differentiation and Distinction

Differentiation and distinction pertain to the unique benefits and features that make the business stand apart from other companies in the marketplace. See What Makes Reliable Rider Different? If similar businesses exist in the target market, a new business must find a niche or a reason that customers will choose them over competing companies. A unique selling point is critical for a new business to create a specific niche in the market. The unique selling points could be a lower price, more secure transportation services, or a compelling value story that has unique benefits and features that set it apart from other transportation services.

Market Analysis

Market analysis involves examining the size of the market, the types of consumers served by this market, the growth potential of the market, and the potential advertising and marketing expenses necessary to capture a share of the market. When market analysis is completed, the next step involves the development of a comprehensive strategy for obtaining the available market share with the new service. The business strategy must be strong enough to gain a sufficient customer base to make a profit.

Business Revenues

Reliable Rider generates $30 in revenue per month from each customer (club member).  Each Reliable Rider Club with 30 members generates $900 in business revenue per month or $10,800 per year.  Each Reliable Rider Club with 60 members will generate $1800 in business revenue per month or $21,600 per year.  The Reliable Rider business is scalable.  It is primarily software technology, with administrative supports including registrations, invitations, and record keeping.  It can be leveraged from 1 club, to 10 clubs, to 50 clubs etc.

Business Costs and Expenses

Business costs encompass the funds it will take to market, maintain and staff the business.  Reliable Rider will require computers, software technical support, administrative support staffing, SEO marketing, and insurance.  Planning how business revenues will be used is critical. What is the cost per customer (member) acquisition? What are the customer referral rates?  What is the customer retention or churn rate? What is the average customer life-time value? 

Does Reliable Rider Solve Real Problems?

• Providing basic transportation services. (Seniors with loss of driving abilities, Remove legal liabilities, No driver’s license, Medical issues)
• Lowering the costs of transportation. (Shared ownership, Costs divided by the number of club members and miles used)
• Increasing the security and safety of ride share. (Risk management, Background Checks for everyone, Feedback ratings, Display Ride, Self-managed)
• Mitigating the effects of inflation on transportation costs. (Inflation price increases are divided by the number of club members and miles used)
• Risk Management (Known Drivers, Known Riders, Known Vehicles, Managing the risks of consuming alcohol at restaurants, bars, music and sporting events)

Contact us if you are interested.