Starting a limo business. The revenue of limousine services in the US for 2018 reached 4.7 million dollars.
When it comes to special events and celebrations, nothing can compare to a limo to make the day unforgettable.
If you’re interested in starting your own limo rental company there are a few things you need to do. Read on to learn what you need to know about starting a limo business.
Decide What Kind of Limo Rental Company You Want
There are several ways to get a limo business started. You don’t even need to own a limo!
One option is to start a virtual call center. You’d need a website and a 1-800 number. Then customers would contact you to rent a limo.
You would subcontract them to an established limo and take a 20% cut. This method has very low startup costs and low risk. Then, you could eventually buy your own limo and keep more of the profits.
Or you could choose to buy a black sedan or limo and start from there. You can choose between a new or used limo. You might be interested in operating a limo bus company which is a niche within the limo industry.
Some people prefer to launch an entire fleet from the beginning. This is the riskiest way to start a limo rental company.
It requires a huge capital investment. You’ll also need to hire a dispatcher and chauffeurs. Although it is a bigger risk, you have the potential for more gains because you can rent multiple vehicles for the same day.
Once you know what type of limo business you want, you need to put your ideas on paper and write a business plan.
Write a Business Plan
Writing a business plan will help you iron out all the details for your limo business.
It will help you figure out what you need to do, step-by-step, to get your limo rental company going.
The business plan should include a breakdown of your startup and operating costs, and your expenses and projected income. It should also have an analysis of your competitors and a description of your business model.
If you plan to get a loan, you will need to present your business plan to the lender.
Find and Train Your Limo Drivers
Your customers will be largely interacting with your drivers. Qualified, professional drivers will make a big impact on your customers’ satisfaction.
Only hire professionals with solid experience. Make sure you train them even if they have experience. That way all your drivers follow your company’s policies and understand your brand values.
Get the Necessary Coverage
When you own any business it’s crucial that you have the right coverage to protect you against accidents and incidents.
Make sure you have adequate coverage for your drivers, your vehicles and your passengers.
Buy Limo Software
Being organized is vital to running a successful and profitable limo business. Choose a high-quality, limo software to track your employees’ work hours and trip durations.
The software should also have GPS to ensure your drivers find the best route to your customers’ destinations.
It can also help you automate messages to clients and send invoices, too.
Advertise Your Limo Business
You’ll need a website, social media pages as well as your information in all the directories available in your area.
You may want to outsource your digital marketing to a company that can help with search engine optimization, ad word campaigns and more.
Thanks for reading. We hope this guide on starting a limo business was helpful.
Next, check out 7 of the country’s top limo makes and models.