How to Start a Party Bus Business
As an extension of the limo rental business, the party bus business offers customers the ability to book special events that can be handled by a single vehicle. Starting a party bus business can offer the right entrepreneur the ability to capitalize on the need for group transportation and event planning. Party bus businesses are utilized by both the general public for events such as bachelor parties and football outings, as well as by the corporate world for business events and holiday parties.
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Things You'll Need
- Party bus
- Insurance
- Commercial driver's' license
- Vehicle financing / start-up capital
- Dispatcher / backup driver
Instructions
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Get licensed. Most states, and some local governments, require specific types of permits and licenses in order to operate a party bus business. Check with the Department of Motor Vehicles to verify the type of driver's license that your employees will be required to carry and any special permits that you will need for your bus. There may also be local parking permits, city commercial vehicle tax stickers or inspection stickers required to operate a party bus legally.
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Identify and purchase insurance for your vehicles, business and employees. Serious consideration should be given to liability insurance for your business and employees, comprehensive and collision insurance for your vehicles and accident insurance. In the event one of your vehicles is involved in an accident or a customer is injured during a trip, insurance will offer protection for both your personal and business finances. Work with an insurance agent familiar with commercial insurance requirements for your state.
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Obtain the party bus. Taking into consideration the type of business and size of bookings you are interested in obtaining, investigate and obtain a party bus. Carefully research different manufacturers, conversion companies and models to identify the model that best suits your need. Investigate lease options as a way to reduce initial cash outlay.
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Unless you intend to drive the party bus personally, you need to hire drivers. As a rule, do a background check, check references, perform a drug test and obtain a recent driver's license record. These steps help you weed out potential high-risk candidates who may cause your insurance rates to increase or are more likely to have an accident for which you will be liable. In addition, hiring courteous, personable and friendly drivers helps promote your business and encourages repeat customers.
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Determine price structure and services. In order to accept profitable bookings, you need to decide your service area, the types of bookings you'll accept, and a price structure. Be sure to include items like insurance costs, fuel, employee wages and bus maintenance when determining your hourly cost.
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Advertise your business. Print up fliers to hand out at local businesses and companies, schools, colleges and restaurants. Simple business cards are a great value and offer extensive exposure for the money. Leave a few wherever you go as a networking tool. Connect with other party bus operators to establish a relationship in the event they need to subcontract a rental that they can't handle alone. A website is a great way to promote your party bus business for very little money.
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Tips & Warnings
In most states, a commercial chauffeur's license, similar to those used by taxi drivers, is required to operate any type of "for hire" vehicle. If you plan to finance your bus, the bank will enforce insurance minimums for the vehicles involved. Leasing your party bus allows you to upgrade to a newer or more expensive model without the hassle of having to sell the older bus first. Drivers should be trained in basic first aid, CPR and defensive driving to better ensure passenger safety. Establish a regular maintenance program for your bus and encourage drivers to report any issues immediately. Damage and cleaning deposits will limit your cost if the party bus requires repair or extensive cleaning after a rental.
Clean-up after each rental will take some time and may require several hours to accomplish. Unless you fully understand your state and local laws, never provide alcohol to passengers.
