Virtual Call Center – All you need for this is a business card, website, and toll-free number. You will field calls or internet request for rides and subcontract them to limo services, taking up to a 20% commission. This is an inexpensive way to build a customer base and accrue capital. [3] X Research source Drive A Vehicle – You will need to start with a black sedan (usually a Town Car) and/or a limousine (white is preferable at first), both of which will require a significant investment. On the other hand, driving your own vehicle will allow you to increase your revenue substantially. Fleet – Launching a fleet is the riskiest way to start your business, as it requires a large outlay of capital to purchase multiple sedans and limousines. You will also have to hire a dispatcher and chauffeurs, who will typically pay a flat fee to use lease your vehicles ($75-$150 a day) or give you a percentage of their fares (usually one third). More vehicles on the road can mean more money, but it can also mean bigger losses if business is slow.
Your business concept: what you are offering, your strengths and weaknesses, long term goals, and performance indicators, beyond the bottom line, which will let you know you are succeeding or failing. These last might include important measures like the number of repeat customers and the number of inquiries you convert into sales. Market research: the nature of the industry, who are your customers (business men, airport traffic, weddings, etc), who are the other limousine companies you will be competing with, what prices are charged. Remember that the goal is to sell service. This is a luxury business; being the cheap limousine company is not a good business model. A marketing plan: how you will communicate with customers and grow your customer base. An operations plan: identify the individual projects that will lead to completing your larger goals. To begin with, these might include things like: hiring a designer, registering your domain, and finding a webhost – all to build a website; or finding livery insurance, buying a car, and choosing billing options – all to prepare your vehicle for service. Financial projections: these include a list of assets before you start the business; start-up costs such as building a website, getting insurance, obtaining permits, and purchasing a vehicle; marketing costs; and revenue projections. You will need to know how much business you need to do at what price in order to show a profit, and how long you can perform at a loss. You can find a sample business plan for a limousine service here.
Sole proprietorship – An unincorporated business run by an individual. No special steps are needed to form a sole proprietorship, and since there is no distinction between the business and you, the owner, the income from the business is reported as your income. You pay self employment tax. [6] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source Because you will be personally liable for your business, this form is not recommended. Partnership – A business where two or more people share ownership. To form one you must choose a name and register your business with your state. You must also register with the IRS and get a tax ID. Profits are passed through to the partners, who pay taxes on them on their individual tax return. This includes self employment tax. Partners are liable for their own actions and those of their partners. [7] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source Limited liability company (LLC) – To start an LLC, you must, at a minimum, choose a name and file articles of organization with your state, often for a fee. LLC owners pay taxes on profits through their individual income tax returns and have to pay self employment tax, but are protected from personal liability for the decisions and actions of the company. [8] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source Corporation – An independent legal entity owned by shareholders. To register your corporation you must choose a company name and file articles of incorporation with your state. You will also need to register with the IRS and get a tax ID. Corporations file taxes separately from their owners. This may prove advantageous, allowing owners to take advantage of the corporate tax rate, but it may also lead to double taxation. You should speak with your lawyer or accountant to see if this form of business will benefit you. [9] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source S Corporation – An independent legal entity owned by shareholders, like a typical corporation, except that to avoid double taxation, profits and losses are passed through to the owners’ personal tax returns, instead of the company paying taxes. [10] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source
Web designers will build your site and take care of registering your domain name and selecting a webhost. The more you pay, the more input you will have in creating a unique site. The cost of web design varies depending on whether you use a solo developer in the US ($25-$100/hr), an offshore web company ($10-$40/hr), or an established US agency ($60-$200/hr). [17] X Research source Offshore firms can design sites starting at around $500,[18] X Research source while the cost of a US firm will usually range from $5,000-$10,000, with solo developers falling somewhere in-between. [19] X Research source
A black Town Car is a good starter for airport transfers and corporate customers. It is less expensive than a stretch limo. A stretch limo is necessary for most of the most lucrative services – weddings, funerals, proms and graduations – so you’ll want to add one to your fleet as soon as possible. Start with a white limo, as these are most popular for weddings, proms, graduations, and other special events. [20] X Research source If possible, purchase both a black sedan and a limousine so that you can provide the full range of services – airport and corporate business during the week, and special events on the weekends.
Pay-per-click advertising – Buying internet traffic is the quickest way to bring people to your website. However, make sure you are targeting the right audience. Clicks cost you money, and if tons of visitors leave without purchasing your services or product, you can lose money. [21] X Research source The two major advertisers are GoogleAds and Facebook. Craigslist, the yellow pages, and radio spots – Make sure you have a professional ad in both the yellow pages and craigslist, for those who search there. Radio spots can be effective, though they are more expensive than internet advertising. Hotels and night clubs – Talk with the manager and drop off your card. Consider giving 5% commission to hotel doormen and club staff. If someone needs a limo, you want to be the person they recommend. [22] X Research source
Weddings - Weddings are a good reason to get a stretch limo. They require a higher level of service – a tuxedo-ed driver, champagne beverage, coordination with the bride – but also pay very well. [24] X Research source Funeral Service - Again, this is a specialized service that takes place mostly on weekends. You will need a pressed black suit and a non-ostentatious black limousine. [25] X Research source Proms and Graduations – Though the season for them only lasts two months, these events provide the greatest profit for limousine companies. [26] X Research source Consider increasing advertising before and during the season.
