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    8 Replies Latest reply on Jul 24, 2008 11:39 AM by hawkins987

    Starting Limosine Business

    winuadi Newbie

      I have several question about Limosine Business

      Does anybody have any experience in running Limo Business?
      What are the critical success factors of running this kind of business?

      If you are a customer of Limo Business, what is your important factor that makes you loyal to the provider?
        • Re: Starting Limosine Business
          LUCKIEST Guide
          *Starting Limo Busines*s.* *Welcome to this web site.
          Yes I have any experience in running Limo Business.
          Now it is your turn. Tell us more.
          How soon will you be starting?? Where (like City and State)??
          Do you have a Business and Marketing Plan
          LUCKIEST
            • Re: Starting Limosine Business
              winuadi Newbie
              Well,
              I am about to start if I think this business is visible. On paper the business seems promising. I live in Houston, TX. I would like to hear from somebody who already running the business and willing to share some of their experiences.

              Thanks
                • Re: Starting Limosine Business
                  hawkins987 Newbie
                  The following is a list of requirements for starting a limousine service business in Houston, TX.
                  1. The owner of the company must be a U.S. Citizen or documented to work in the USA.
                  2. An application must be filed with the Transportation division of the City of Houston and a hearing will be scheduled.
                  3. You must have four vehicles to start a company or a stretch and two other vehicles which can be Town Cars, SUV's or 15-passenger vans. The stretch may not be older than 10 years. The Town Cars or Van cannot be older than six years. The vehicles cannot have more than 100,000 miles when first put into service. There is a list of luxury sedans and SUV's that are acceptable.
                  4. The commercial limousine insurance for the cars is expensive, with annual premiums of $2,500 to $4,000 per vehicle, depending on the level of coverage.
                  5. Drivers must be 25 years old (For insurance purposes), eligible to work in the USA, pass FBI background checks, be drug tested and fingerprinted, have no felonies the last 10 years and no tickets for speeding or DUI. (Insurance reasons).
                  6. Most residential areas prohibit limo companies from being operated out of a home. Some also have a restriction on the number of vehicles parked near the house.
                  7. Most warehouse leases prohibit living on the premises, especially with children, although you can have a night watchman or operate around the clock.
                  8. Yellow Page advertising can cost $5,000 to $50,000 per year.
                  9. The nature of the business is very competitive. .There are already 300 companies and 1,300 vehicles. These companies will do anything they can to steal your regular customers. You might want to consider working for a company before starting your own. Burn-out is a big problem among operators. Owning your own business is no bed of roses.
                  10. You should have enough capital reserves to operate in the red for two years before you start showing any noticeable profits over expenses. Your family may or may not understand why you never have time for them anymore.
                  11. Want to know how to make a small fortune in the limousine business? (Start out with a large one).
                  12. If you have carefully read and understand what's contained in this article and still want to start a limo company, the first thing you should do is join the Limousine Association of Houston and come to meetings where you will learn fast about all these problems and you can network with other operators, new and old. You should also go to the national limo conventions in Las Vegas and Atlantic City. There is room in any business for a true entrepreneur willing to put forth maximum sustained effort for a long period of time.
              • Re: Starting Limosine Business
                Bluesuit Adventurer

                Is this a limosine service focused on business related transport or for entertainment related transport or both? The reason why I am asking is that the customer expectations for style of limo, amentities, and service may defer.
                  • Re: Starting Limosine Business
                    AppleGraphics Adventurer
                    Blue is correct I have used Limo services both for entertainment and business uses and my expectations were very different. With a limo service focused on business the expectation is that everything will be well kept and look professional (this includes the driver), they will be on time if not 5 minutes early, and of course be able to issue a receipt for the ride. I will mention accepting credit cards is a must as well only because I was on a trip one time and though i had pre registered with a credit card the driver was unable to accept one as payment, I don't know why this was but it has stopped me from using them again. Hope this helps.
                  • Re: Starting Limosine Business
                    SohoConcierge Wayfarer
                    Depending on the type of limousine service you are trying to start there are several thing you want to consider.

                     

                    Starting your company with an organized approach.

                     

                    (Dispatch, Dispatch Software, Office personnel with good communication Skills)

                     


                    The types of service you would like to offer to your clients.

                     

                    (You have to make your Service stand out from the rest. Offer something unique or extra as the standard part of you service which normally cost customers extra to have. Uniformed Drivers and a commitment to your clients for a professional and reliable service is always a plus. Be Ethical, honest and dedicated to your clients.

                     


                    The type of clients you would like to service.

                     

                    (I would leave this part for you to decide.)

                     


                    Please make sure to start small to make your way up slowly. I have seen too many companies come crashing down because they felt that they had made it. Service industry is not an easy ground to break in to, with only your Dedication you can make big. You have to have the passion for it or else it will be a never ending nightmare as this business will take all your time and energy, 24hrs a day/7days a week.

                    If you are looking for a specific Solution, please let me know.

                    Thanks
                    1 of 1 people found this helpful
                      • Re: Starting Limosine Business
                        winuadi Newbie
                        Hi Soho,
                        As my pervious post, I plan to build this limo services for business customer, and predict that 75% of the services will be airport pick up and drop off. I am in Houston, TX

                        Do you have any suggestion regarding recruiting process for the driver?

                        What is you recommendation regarding the vehicles? New or Used? It seems that Lincoln Town Car is the norm for Limo Services, what do you think if we start with different type of car?

                        What is your suggestion for the cars, lease or buy?

                        This one may vary, but what is the compensation / benefits for the drivers? profit sharing? fee per services?

                        Thanks for sharing your experiences....