According to Limos.com, businesses spend upwards of $20 billion annually on limousine and towncar service for their employees. This is a huge market, and this doesn’t even include customers who book limos for events, recreation, travel and even running errands.
The downside is that with such a large customer base, the field is also very competitive. Entrepreneurs need to learn the tricks of the trade to stand a chance of being successful. Finding customers is a large part of turning a profit, but so is cutting costs in order to boost your bottom line.
Licensing requirements vary by location, but typically, drivers will need to obtain a taxicab license or “for hire vehicle” license for their city/county, a business license and a drivers license. Some counties also require applicants to pass an oral exam, complete a training program, pass a physical exam and be over the age of 21.
Insurance is essential as well, to cover the safety of your passengers and yourself – plus theft and physical damage to your cab or limo. Use the box on the right to find out rates and how you can save money.
LIMOUSINE BUSINESS QUICK-START GUIDE
Expert Alexander Williams has put together a downloadable start-up guide for people interested in starting their own limo or taxi cab businesses.
It’s an inexpensive way to get started in the taxi/limo business for entrepreneurs without experience. This 4-star guide in its 5th edition and in downloadable format can save users over 60% off the retail price.
- How to select the best name for your business, which products and services to offer and how to secure new customer accounts.
- How to finance your business, where to find limousine vehicles and how to to get the licenses and permits you need.
- How to set your prices for maximum profit and develop a marketing plan that is easy to follow
- Plus links to government websites that can provide additional business assistance.
Payment terminals, Meters and Supplies
A wireless terminal that prints receipts can give your customers what they want and make it easier for you to make more money. These can cost several hundred dollars, but you can get a free terminal and low rate plan through GotMerchant.com.
Alternatively you can get limousine software that lets you manage your business from anywhere, enables you to accept customer payments in real time and then create invoices in a few simple clicks.
Taxi drivers will need taxi meters and toplight signs for their vehicles. The federal government regulates the equipment and rates charged on meters. Meters will need to pass inspection and be sealed. You can get a taxi meter and toplight kit with instructions through Taxi Cab Electronics.
Taxi Cab Supply is another resource for toplights and meters. They also sell decals, ad carriers, security systems, radios and more.
Limousine & Taxi Associations
Taxicab, Limousine & Paratransit Association
The TLPA is a non-profit organization that helps support transportation professionals by providing education, protecting industry rights and disseminating industry information to the field.