Please sign in to post in this forum.

ForumsStarting a Business

Up to All Forums

This Question is Answered

1 "helpful" answer available (4 pts)

1 2 Previous Next

6 Replies Last post: Feb 14, 2008 2:03 PM by verse2101

I want advice and feedback?

Dec 9, 2007 2:12 PM

beach cities 9 posts since
Dec 8, 2007

I'm owner of a Concierge service and limousine. I've been in business for two years..06-07, starting year three on 08. The business in incorporated..LLC, I have to business bank account, EIN number and all state and local licenses. I started company with my own money(made nothing in 06), did better in 07 and now planning for 08. The bigger part of the business is TRANSPORTATION. Although we offer different services, 90% of business calls are for Sedans / Limos.

Because we only have one vehicle on your "fleet", we are limited in the number of "runs" we can except and for that reason we "farm out" a lot of business to other limo companies, but do make a small referral fee. Business has increased 60% with the resent UPGRADE of website...www.beachcitiesconcierge.com, WORD OF MOUTH as been crazy and our greatest asset been the level of service we offer.

Now is time to increase fleet size! I want to lease a limo, but don't know to much about the world of leasing. I spoke with one company, but felt "lost" with the process. The guy I talked to seemed only concerned about "getting paid", not helping me grow. I've been careful to get to know some of the bank employees where I bank. I recently had one of the loan officers run my personal and business credit( personal- FAIR/ business VERY GOOD..as told to me by them). I asked about getting a loan for new equipment, but was told I had to wait til FEB 08, I opened account in JAN 06. Basically, "wait two years" before you ask for a unsecured loan.

I've done my homework and run the numbers, not hard! I'm getting enough calls and requests to more then pay for a monthly lease of a limo and clear a very nice profile.

I need money and new equipment. Can anyone advise.

Tags: property_management, landlord Report as inappropriate

CorpCons08 1,128 posts since
Nov 14, 2007

1. Re: I want advice and feedback? Dec 9, 2007 2:19 PM

in response to: beach cities

beachcities,

Let me first start out by commending you on making it past the 18mos period. Based on the information you provided, you have two options.

1. Purchase the Limo: You can take out a loan to purchase a limo out right. This does not allow for you to turn the vehicle back in at the end of the loan period but would give you full ownership of the vehicle. Loan rates are often lower than most lease rates through banks. The downside is, usually more documentation is needed on a loan than a lease, and underwriting may be stricter.

2. Lease the Limo: You can take out a lease on the vehicle, and choose to turn the vehicle back in at the end of the lease or purchase it by paying a balloon payment at the end of the lease. Interest rates can typically be on the higher side when leasing a vehicle through a bank. Underwriting is typically less strict and can be completed within' a 24hr period.

What are your plans for the vehicle? Do you plan on keeping it at the end of the note?

I would be more than happy to help you get the financing you are looking for. Our firm specializes in lending options and we have a list of preferred lenders. You can contact me at mailto:d.skolnick@skolnick-associates.com if you are interested.

Regards,

CorpCons08

Report as inappropriate

beach cities 9 posts since
Dec 8, 2007

2. Re: I want advice and feedback? Dec 9, 2007 2:48 PM

in response to: CorpCons08

CorpCon,

Thank you for the feeback, it's really helpful. I don't want to "own" a limo right now. I wish to lease and UPGRADE every few years. I would be happy to discuss any ideas you may have. I'll contact you via email. But still wish to hear from other on the forum.

Report as inappropriate

LUCKIEST 7,935 posts since
Aug 6, 2007

3. Re: I want advice and feedback? Dec 9, 2007 3:05 PM

in response to: beach cities

It is great that you have been in business for two years and doing well enough to expand.
Do you have an Accountant?? Is he involved with the "numbers"??
I am a SCORE Counselor, and we talk to business people all the time. SCORE is FREE.
We usually start by developing a Business and Marketing Plan.
It also helps that you have a banker. SCORE counselors and bankers talk the same language
and that sometimes helps with loans.
It sounds like a loan and the right limo will more then pay for the lease and clear a very nice profile.
Good luck, LUCKIEST

Report as inappropriate

GBIntel 37 posts since
Nov 14, 2007

4. Re: I want advice and feedback? Dec 9, 2007 3:14 PM

in response to: beach cities

Beach Cities:

You indicated
Because we only have one vehicle on your "fleet", we are limited in the number of "runs" we can except and for that reason we "farm out" a lot of business to other limo companies, but do make a small referral fee. Business has increased 60% with the resent UPGRADE of website...www.beachcitiesconcierge.com, WORD OF MOUTH as been crazy and our greatest asset been the level of service we offer.

Now is time to increase fleet size! I want to lease a limo, but don't know to much about the world of leasing. I spoke with one company, but felt "lost" with the process. The guy I talked to seemed only concerned about "getting paid", not helping me grow. I've been careful to get to know some of the bank employees where I bank. I recently had one of the loan officers run my personal and business credit( personal- FAIR/ business VERY GOOD..as told to me by them). I asked about getting a loan for new equipment, but was told I had to wait til FEB 08, I opened account in JAN 06. Basically, "wait two years" before you ask for a unsecured loan.

My Response
Leasing allows you to utilize the limo, without having to pay repairs ... MAKE SURE THAT THE CONTRACT STATES THAT!!! As necessary, you will be allows to upgrade the limo for the lastest model ... MAKE SURE THAT THE CONTRACT STATES THAT!!! Ensure these arrangements are deal-breakers, as well as the price ... SHOP AROUND.

NOTE: 60% growth will secure you for a loan from a commercial banks and the SBA. It is time change he capital structure of your entreprenuership in order to fuel continued growth, to minimize costs, and to optimizing profits. If you would like to explore these suggestions, please visit my website ...

Global Business Intelligence (GBI)
http://pages.google.com/edit/GlobalBusinessIntelligence/home?authtoken=b090c9b553e6b7801fe9d6702b262b3ea33eb16d.

GBIntel

Report as inappropriate

beach cities 9 posts since
Dec 8, 2007

5. Re: I want advice and feedback? Dec 9, 2007 3:32 PM

in response to: LUCKIEST

LUCKIEST,

FIRST of all, thank you for you feedback.

I have a TAX guy, who is a CPA, but he is not involved in the "numbers". I use Quickbooks PRO and at the end of the year I do a P&L standard report and take to him for the tax year. But a recent experience with a leasing company has shown me I have a LOT more to learn about "accounting".

Report as inappropriate

LUCKIEST 7,935 posts since
Aug 6, 2007

6. Re: I want advice and feedback? Dec 9, 2007 3:48 PM

in response to: beach cities

It is GREAT that you have an accountant. I am a Quickbook Consultant.
If I can be of any help, Just Ask, LUCKIEST

Report as inappropriate

beach cities 9 posts since
Dec 8, 2007

7. Re: I want advice and feedback? Dec 9, 2007 4:14 PM

in response to: LUCKIEST

Thank you so much for all your help and advise!

Report as inappropriate

LUCKIEST 7,935 posts since
Aug 6, 2007

8. Re: I want advice and feedback? Dec 9, 2007 4:39 PM

in response to: beach cities

Let me know what happens after you talk to SCORE. LUCKIEST

Report as inappropriate

Lighthouse24 2,396 posts since
Oct 10, 2007

9. Re: I want advice and feedback? Dec 9, 2007 7:56 PM

in response to: beach cities

I asked a limo company owner this question -- he said almost every major company that manufacturers, sells, or leases new or used limousines has a partnership with a company that specializes in lease financing for commercial vehicles, and that many even have their own financing subsidiary. He suggested you pursue this financing option first -- by narrowing down the list of possible places you could lease your limo from, contacting them, and making your business conditional on them finding you financing for the lease. According to him, it's not much different than the way a consumer can buy a new car through the dealer's financing with no money down and bad credit (and the way a consumer with a good credit can usually get better financing that way than through a bank or credit union). Hope this helps. Good Luck.

Report as inappropriate

slavaret 78 posts since
Oct 26, 2007

10. Re: I want advice and feedback? Dec 10, 2007 2:29 PM

in response to: beach cities

Have you considered a different direction?

The hardest part of any business is getting the phone ring with orders. Sounds like you've got that. Why not build on that and expand/improve the order taking? No fleet, no loans - just a good order/referral system? Get other providers rely on you and focus on generating more orders?

Just thinking out loud...

Report as inappropriate

LUCKIEST 7,935 posts since
Aug 6, 2007

11. Re: I want advice and feedback? Dec 10, 2007 2:55 PM

in response to: slavaret

slavaret, That is BRILLIANT (a good order/referral system). Lets redo the Business Plan.
It is definately thinking outside the box. I love it, LUCKIEST

Report as inappropriate

Lighthouse24 2,396 posts since
Oct 10, 2007

12. Re: I want advice and feedback? Dec 10, 2007 3:27 PM

in response to: beach cities

Slavaret and Luckiest advocate an interesting idea above. I'd suggest that the sustainable part of a concierge business would be dedicated clientele. In your business, it would seem that the manner in which the service is performed (with courtesy, reliability, and professionalism) is everything. Farming out the business that you book already places your client in someone else's hands -- very risky. Those same risks are magnified if you simply become an "order-taker," i.e., every customer is in the hands of someone else. If that someone else provides bad service, you take the heat (since you booked the deal). If that someone else provides great service, why would the client go through you the next time or recommend you to anyone else? They'd just call that provider directly. I don't think you can build this type of business on that type of model.

Report as inappropriate

CorpCons08 1,128 posts since
Nov 14, 2007

13. Re: I want advice and feedback? Dec 10, 2007 3:32 PM

in response to: Lighthouse24

I happen to agree with Lighthouse on this one. If you referred me to another concierge service and I was happy with the service I got, I would just go to that service provider the next time. Why would I waste time going through the referrer again? I think you had the right idea before by wanting to increase your fleet and increase the amount of business you can handle.

Report as inappropriate

slavaret 78 posts since
Oct 26, 2007

14. Re: I want advice and feedback? Dec 10, 2007 3:50 PM

in response to: CorpCons08

These are good points.

I am not saying this is THE way to go - but it is something to consider.

What IF:

Getting orders is the weakest link?

You approach all providers with an offer: I bring you business, you charge X, I get Y, you guarantee a certain level of service AND promise not to deal direct. If you screw up or cross me - I won't give you any business. The key in this setup is how you position yourself with the customers, who THEY want to call back, and the balance between repeat vs. one time business.

Report as inappropriate

1 2 Previous Next

Legend

Open Question
Answered Question
New content since your last visit
Updated content since your last visit
Content you have read

ForumsStarting a Business

This Question is Answered

I want advice and feedback?

Dec 9, 2007 2:12 PM

More Like This

Legend