How to Start a Limo Van Business
Starting a limo van business can be a lucrative venture if you can acquire clients and provide quality service. Businesses, large families and party groups will all use a limo van service on special occasions.
- Difficulty:
- Moderately Challenging
Instructions
-
-
1
Obtain any state-required permits, and make sure that your limo van business has full operating authority before transporting any customer. Call your local public utilities commission and get detailed instructions on how to get the proper permits. In many cases, if you are want to carry more than 15 passengers or transport customers across state lines, you will need to contact the Department of Transportation (DOT) as well for additional permits.
-
2
Get your limo van business fully insured. You will want to be fully insured in case of accident, injury or death. There are many insurance companies that specialize in providing insurance for the limousine industry. Two of the larger transportation insurance companies are Northland Insurance and Praetorian Insurance. Both of these companies will offer coverage that meets or exceeds state requirements.
-
3
Purchase an all-purpose limo van that can seat at least 15 people. Both Dodge and Mercedes make a Sprinter, which has become the industry standard. New limo vans take a large depreciation in value as soon as you drive them off the lot, so try and locate a used limo van with minimal mileage.
-
4
Choose your location wisely. If you plan on opening a limo van business in your town or city, make sure that there is a need for your services. If you are in close proximity to a major airport, you will have many more opportunities to attract incoming travelers to use your service. Go through the phone book or internet listings and see how many other transportation companies service your area. Try to get a gauge on how much work is available.
-
5
Target your advertising to local companies that may be in need of your services. Call all of the local wedding vendors and let them know that you have the ability to transport wedding guests to and from the ceremony and reception. Contact large local corporations and offer to provide service for their corporate outings or large company functions.
-
6
Try and obtain medical transport business in your area. Let local hospitals and medical facilities know if your limo van is wheelchair-friendly. Many insurance companies will actually foot the bill to have their patients transported to and from doctor appointments and examinations. Medical transportation jobs usually require that you invoice the insurance company, so be prepared to wait 60-90 days for your payment.
-
7
Consider purchasing a second vehicle. Once you have your first limo van booked 6 or 7 days a week and you are turning down conflicting business, you can add to your fleet.
-
1
Tips & Warnings
It takes time to build a list of regular clientele, but if you provide professional service and you make a habit of being on time, your limo van business will grow.
