The company has been formed as a California corporation with John Smith and David Jones the sole owners. Airport transportation as well weddings, prom nights, and "nights on the town" are quite competitive and margins have eroded. San Francisco Limo will serve these niches to eliminate downtime of the vehicles as well as building a loyal customer base. The true niche of the transportation business that San Francisco Limo will concentrate on is private school student transport, sightseeing trips, and elderly transportation.
If you can manage that, Entrepreneur magazine's website notes that "It is not uncommon for operators to earn six-figure incomes. The corporate market, where you'll mostly whisk business people from office to airport; and the "occasional" market where you'll serve individuals and their special occasions.
You'll need to decide at the start which market you want to pursue. The business market can be hard to crack but steady and lucrative once you've built a clientele. The prom-and-wedding circuit can be an easier starting point, but it means you'll always be hustling for the next job.
Either approach has its pros and cons. Getting Started Once you know which market you'll pursue, construct a business plan. This will help you understand the local market, your competition, and the resources you'll need to have in place to launch your business.
With that in place, it will be time to apply for permits and licenses. Your limo business will require a business license, tax identification number and liability insurance.
Drivers may require additional licensing for transporting passengers, so check with city government to learn of any additional regional documentation requirements. This can take several weeks to secure.
Acquire a Limo, Or a Fleet It may not be necessary to purchase a limousine immediately when starting up a limo business, especially for smaller enterprises. Leasing a limo can be a viable financial option and offers the additional benefit of trading up to a better-quality vehicle as the business grows.
Have the vehicle checked to make sure that it meets safety standards, and budget for ongoing repairs and maintenance. You'll also need to invest in professional-quality cleaning and reupholstering services if necessary, because a limo always has to look good.
As you grow and hire additional drivers, you can purchase or lease additional vehicles. Town cars are ideal for airport transfers, while stretch limousines are more commonly used for special events.
Introduce yourself to the competition and set up mutual-referral systems. Join limo groups such as the National Limousine Association to maximize exposure, making it easier for customers to find your business.
Also network with event planners, including wedding facilitators, funeral home directors, convention planners and other professionals so they are aware of your services. If you pursue the consumer market directly, most of your customers will find you - or not - through the Internet or social media.
If you can't afford a professional-looking, easy-to-use website, set up a Facebook page that offers rates, video footage of limousine interiors and customer testimonials. A Few Points of Finesse Showing up late or getting lost can result in unhappy customers and bad social-media exposure, so ideally your vehicles should have both a GPS system and paper maps.
Customers will want to ride in comfort, so stock ice chests with soft drinks and snacks for longer drives. Install a DVD player, remote-controlled television set, docks for phones and iPods or - if you have the budget - a Wi-Fi hotspot so guests can stream their own preferred entertainment.
If you cater to the prom trade, consider asking teens to sign contracts stating that they will not partake in alcohol or drugs while riding in the limousine. Contracts help set parents at ease and demonstrate professional responsibility for the limo business.
Besides, companies permitting underage drinking can be held liable.A limousine rental business is always perceived as a good investment choice regardless of the temperament of the economy. As it is closely affiliated with the tourism and hospitality industries, car rental agencies or taxi services business are generally viewed as a stable investment channel that has untapped potential for revenue growth.
City Taxi taxi business plan financial plan.
City Taxi is an established taxi cab company in San Francisco. SCORE® SAMPLE BUSINESS PLANS AND GUIDANCE MATERIAL Brief # Counselors to Americas Small Business.
Sample Limousine Service Business Plan Template PDF If you are looking for a sample limousine service business plan template, here is a business plan for starting a limo rental business and free feasibility report you can use.
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Please note that the financials in this complete free business plan are completely fictitious and may not match the text of the business plan below.