This is a sponsored post from our good friend Matt, owner of a company in Charlotte, NC that specializes in affordable windows & doors for residential and commercial clients. (Learn more.) As a successful businessman who has had his hand in a variety of company ventures over the last several decades, he offers great advice for anyone wanting to start a limousine rental company (or any sort of company for that matter!)
The limousine business is on the rise. It has increased significantly over the past few years. There is huge competition in this sector. But with effort and dedication, you can make lots of money in this business. You need to have the right planning and the right people to establish a successful limo business. Here are the steps needed to start your business.
Make a business plan
This is the first thing you should do. You should make a detailed business plan where you will include your vision, mission, operations strategy, marketing strategy, financial strategy, etc.
Calculate cost of business
You should set up a budget. You should consider the cost of purchasing or leasing vehicles, the cost of insurance, license, maintenance, fuel, the salary of drivers, etc.
Purchase or lease a car
You will need to purchase or lease a car. Leasing it may be a better option if you don’t have enough capital. You can start with an old model car and then buy new models once your business starts to grow. You should make sure that your car meets all the safety standards. You should buy a good navigation system for your car.
Apply for permits and licenses
The next step is to apply for a license, liability insurance, and tax identification number. The drivers you hire must have proper license to carry passengers. You should set up the legal structure of the company; that is, decide whether it will be proprietorship, partnership, corporation, etc.
You should hire drivers very selectively. You must make sure that the drivers are properly licensed. You should check their background including their years of experience. You should hire drivers who are smart and polite.
You should collaborate and form relationships with other limo businesses in your area. This is necessary because there may be events that require lots of fleets and so more than one company has to provide service. You should set up a mutual referral system with your competitors so that you get more jobs. You can become a group of associations like National Limousine Association to increase your exposure and credibility.
Market your business
Most customers today get information about limousine service through the Internet. You should have a good website for your company and develop an online marketing strategy for your company. You can also advertise on local newspapers about your limousine hire service.
If you find it hard to start your business, you can hire a consultant to help you. If your planning is right and you stick to your plan, then it will be comfortable to set up your limousine hire business.