Limousine Service
What will I be doing ?
Think of a limousine service as “a taxi service for the wealthy” and you will be wrong ! Today’s limousine service may transport a glittering star, but, on most days will be called on to carry newlyweds away fram the church, impress a date or even take a businessperson to the airport. Today’s limousine services are creatively profitable.
A limousine service does more than drive people to specific locations. A taxi can do that. A limousine service does it with style. Your limousine service will take people where they want to go while treating them like royalty. Your limousine may provide a wet bar, snacks or even a doormean along with a uniformed chauffeur.
Or not. One limousine service in the Midwest operates a shuttle service between the metro airport and the rural factory an hour away. It uses both stretch cars and passenger vans as needed. Successful ? It has a fleet of six units under contract to the factory.
What will I need to start ?
Of course, you need a “limousine”,but you don’t have to own it. You can rent one from a car rental agency or even another limo service as needed. Or you can lease one. Sometimes you can purchase an older unit from a service in a nearby metro area.
You will also need a working knowledge of the area you serve. However, unlike the taxi business, you typically have time to refer to maps and even drive a route if needed before picking up your client. In addition, you may need a chauffeur’s uniform or at least a business suit and cap.
You’ll probably need a license and special insurance much like that required of taxi services. Contact your regional Small Business Administration office for specific requirements in your area.
Who will my customers be ?
Customers for your limousine service will be individuals and businesses. Individuals will hire you for weddings, aniversaries, parties, special events and simply for fun. Businesses may hire you as an airport transporter, to pick up important clients or to deliver a salesperson for a lasting impression.
How much should I charge ?
Limousine services set a rate of $35 to $70 an hour, but typically price by the mile or time and mileage. A wedding package of two hours may be priced at $100, while taking four executives to the airport may be priced at 35-cents-a-mile per person. In some areas, local tariffs will dictate what you can charge.
How much will I make ?
Expenses can be high for an idle limo. So how much your service makes will depend on how well you market it. Be creative. An Arizona limousine service doesn’t use standard stretch limos-it uses classic cars. By doing so, it provides a unique service that markets itself. The cars are also rented as needed to motion picture film companies working in the area.
If you do many of your own repairs, keep home office expenses down and market smart, your limousine service can offer you a net income (after overhead) of $25,000 to $45,000 a year or more.
How can I get started ?
This one business where market research is especially important. If this is the business you want to start at home, begin your research today. Find out who your competitors will be, how much they charge, whether any of them are profitable (or bankrupt) and who they serve. Then look for potential customers. If you plan to focus on wedding parties, talk to local wedding counselors about the opportunities and may be even some shared marketing. Once your market is defined you can better decide whether to buy, lease, rent or borrow a limo. Start small and slowly work toward a booming business.
The SIC code for limousine services is 4119-03.
From the book of Dan Ramsey, Title : 101 Best Home Businesses, CAREER PRESS, 3 Tice Road, P.O. Box 687, Franklin Lakes, NJ 07417, 1-800-CAREER-1, 201-848-0310 (NJ and outside U.S.), FAX : 201-848-1727
You should check these out :
