How to Start a Limo Service Business
The demand for limousine services has diversified in recent years. Once associated with the rich and famous, limousines are now the transportation of choice for many wedding parties, prom-goers and party guests. Running your own limousine business takes commitment, hard work, unsocial hours and financial investment---but the rewards can be substantial for those who provide a reliable and professional service. If you have the energy to work long hours, deliver first-class customer service, embrace variety in your working day and face the challenges of a competitive business environment, starting a limousine business could be the right choice for you.
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Instructions
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Research the local market. Contact limousine businesses operating in your area to find out about the markets they serve, the vehicles they run and what they charge. Talk to chauffeurs at your nearest airport to discover how busy they are with airport transfers and corporate work. Speak with wedding planners, entertainment and conference venues and local companies to assess likely demand. According to the Bureau of Labor Statistics, the demand for limousine services is particularly sensitive to economic change---so conduct extensive research before quitting your job or investing cash in the business.
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Network with local limousine operators and determine whether you could subcontract work to these established businesses. Bill Goerl, award-winning limousine operator and author of "Wheels of Gold," suggests that brokering limousine services can lead to a successful business. In times of economic uncertainty, you may decide to build a client base this way before investing in your own limousine. When you acquire your own limo, subcontracting to and for other local operators will reduce the likelihood of having to turn away clients, as well as increasing the work available to you.
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Obtain the necessary licenses and permits to operate in your area. If you intend to carry more than 15 passengers, you need a commercial driver's license with a passenger endorsement. Other official requirements vary from state to state so visit the Small Business Administration website and use the search tool to find information specific to your locality.
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Request indicative quotations for limousine insurance and, if necessary, finance to buy the vehicle. Both insurance and finance for limousines can take some time to arrange and you should make initial inquiries well before you find the vehicle you intend to buy.
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Locate a vehicle to meet your needs and those of your potential clients. This is a substantial investment so engage an independent mechanic to check over the vehicle before buying. You will lose income each time your limo is off the road for repairs, so a reliable vehicle is essential. Check out the vehicle's warranty and the costs of parts before committing to buy. Negotiate the price of your vehicle---do not be afraid to drive the price down.
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Set up a website to promote your business. Many customers use the Internet to locate limousine businesses, but they still need to discuss their requirements before booking. Obtain a toll-free number and include details on your site.
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Buy business cards and stationery. Choose a design that is sleek and professional in keeping with the services you offer. Call local companies and venues to discover who arranges executive transportation and introduce yourself to them either by letter or in person. Give out business cards to wedding planners and events organizers.
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Tips & Warnings
Enroll on a mechanic's course to save money on basic repairs.
Buy a smart uniform that promotes the image you wish to present.
Consider whether you will supply newspapers, snacks or beverages as part of your service and locate suppliers.
Do not underestimate vehicle running costs or overestimate income. Make sure you have enough money to live on while you build you client base and consider engaging an accountant to run through your financial projections.
References
Resources
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