About Limousine Businesses
Limousine businesses flourish in many locations. People use limousines when celebrating special occasions and businesses often request their services for particular clients or for staff member functions. Regardless of their particular use, limousine services can find a home in most cities. An increasingly popular trend in the luxury transportation industry includes stretch SUV's. These larger vehicles, in some instances, can transport up to 28 people.
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History
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Professional transportation services have existed for hundreds of years. According to Lancashire Limousines, the Sedan Chair, created in the 1720's, was one of the first forms of chauffeuring service. Two chauffeurs carried passengers in the enclosed chair to their destinations. In 1928, the Ambruster Company created the first stretch limousine, in Arkansas.
Considerations
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Individuals who own limousine businesses must anticipate a variety of costs. First, a warehouse or garage must be rented or purchased to house the limousines. Inventory, in this case, limousines, should be purchased according to the business type. For example, a highly populated city, inhabited by wealthy people, may require higher end limousines. A limousine owner in these areas may want to purchase stretch Hummers and other extravagant vehicles. Limousine owners also have staffing costs, which include drivers, receptionists and, possibly, a bookkeeper. Finally, the cost of gas, maintenance, and cleaning must also be considered.
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Geography
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Location is a critical factor for the limousine business. Rural areas with small populations and few social functions will not be profitable for a limousine company. Instead, these businesses thrive in highly populated areas, especially cities, where citizens have a relatively high average income. Most people consider limousines a luxury; however, wealthy corporations and individuals may use them frequently. Therefore, owning such a business in the proximity of other profitable enterprises may increase revenue.
Function
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People hire limousine services for a variety of occasions. They are popular in many special events, such as proms, graduations and weddings. Cities that offer a thriving nightlife will often find limousines in high demand. People may rent the vehicles to see a theatre production or when visiting nightclubs. Limousine businesses cannot conform to regular business day hours. Instead, they must be available during nights and weekends when most people request their services. They generally work on an appointment basis; however, in especially busy cities limousines owners may hire chauffeurs to wait at specific locations for prospective clients. For instance, limousine drivers often wait outside of casinos and theatres for patrons who frequent those locations.
Potential
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Certain requirements must be met in order for individuals to open a limousine business. One requirement is licensing. Licensing varies according to state; however, many locations necessitate that business owners are licensed to transport multiple passengers on a contract basis. Limousines business owner must also have updated registration and insurance on all of their vehicles. Chauffeurs may also need specific licensing certifying that they are allowed to professionally transport passengers. Chauffeurs must also attend some form of or pass a specific driving test.
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