The taxi and limousine business today is seen as a very lucrative one, especially with the booming tourism market, and the rapid rise of the need for private transport requirements for corporate events, weddings, proms, bachelor parties, city tours and other occasions.
Setting up a taxi or limousine service is not as hard as it seems. Although, like starting any other businesses, there are processes and methods to follow.
These steps that you need to take will guarantee that you will be able to open and efficiently operate such a business. Following the legally-mandated processes will help in ensuring that you follow all local or national regulations, and provide your customers with good-quality transport service.
Get A License And Determine Who Regulates These Businesses In Your Area
The first step before being a full-pledged taxi or limousine rental operator, is to get a license to drive a taxi or a vehicle. This process begins at the Department of Motor Vehicles.
To drive a taxi, a specific license is needed, and this type of license may vary from state to state. Next, determine who regulates taxis and private limousine services in your city or town. . Many small towns do not. The only way to find this information is to make a visit to city hall and ask this question.
By asking just one question, you will probably come away with a great deal of information regarding this service. For instance, New York City requires the cabs to have a medallion located on the outside of the car. Most likely, your state regulates and licenses taxi companies. Get in touch with someone at the Department of Transportation and they should be able to guide you in the right direction.
Visit a Cab Or Limo Rental In Your Area
When you visit an existing taxi or limo rental operator in your area, you will be able to find out every important detail you will need in effectively operating this type of business. Getting a clear insight about the business, will help you determine if you have forgotten any pertinent details along the way. In addition, make a list of items or vehicles that you need to buy or lease to get your business up and running.
Determine Your Initial Start Up Costs
Running a business requires having some initial capital and expenses. Remember to properly figure out your taxi or limo service start-up costs. Take note that that you will have to have a location for your company, or some office space, and at least one car or van. After figuring this aspect out, you shall need to secure your finances, and you may do this either from yourself, family and friends or you could apply for a bank loan.
Don’t Forget About Vehicle Insurance
Get an insurance policy for your business. This is the most expensive aspect that startup firms usually endure, as taxis and limos are normally insured at rates that are quite high enough to generally account a weekly charge. The types of insurance for this highly-expensive business is not that easy to obtain.
Generally, the expense for this type of business range from sixty to a hundred dollars a week, and although very expensive, this is not actually a first-class type of insurance. This is mainly because the markets for this insurance type are very small. It is quite a challenging thing for people in the taxi and limo rental industry to come up with their premium down payments that are usually set about twenty percent of the over-all annual policy.
Once you’ve already taken into account these factors, and filled up and paid the necessary permits and fees, you are now ready to start your business. By this time you should have the license, equipment, office space and vehicles to begin operating your business.