Despite the popularity of ridesharing services like Uber, the taxi and limousine industry is still strong at the moment. It generates more than $26 billion every year and has experienced 10 percent growth over the last 5 years.
If you’re interested in trying to get a piece of the pie alongside the more than 1 million taxi and limo companies that are out there, you might be thinking about starting a limo rental company. It’s not a bad business to get involved in if you enjoy working closely with people and getting paid to drive.
Before you start a limousine business, though, you should take a look around you and see if enough demand exists for one. If the demand is there, you should then follow a series of steps to get your business idea off the ground.
Here are 7 helpful tips for starting a limo rental company.
1. Generate a Name for Your Limo Company
When you first decide to start a limo rental company, one of the best ways to get the ball rolling is to generate a great name for it. A name will make your business idea feel more official.
You should attempt to come up with something clever that people will remember. But try not to overthink it since that could lead to you coming up with a name that will confuse people.
At the end of the day, your ultimate goal is going to be to put your business name on the map from the start. So don’t proceed beyond this step until you have something strong that you love.
2. Come Up With a Business Plan
Once you have a name for your limo rental company, you can register that name and officially establish your business.
With that out of the way, it’ll be time to hammer out the details as far as your business is concerned before putting them into the form of a business plan. Creating a business plan for your company is going to prove to be absolutely essential.
Your business plan should include everything from where your business is going to operate to what kinds of services your business is going to provide. If you have, say, a limo service in Minneapolis, your business plan should spell out what makes it different from all of your soon-to-be competitors.
Some services you might want to offer will include:
- Wedding limo service
- Airport transportation
- Corporate event service
- Bachelor and bachelorette party transportation
- And more
At some point, you’re likely going to need to try to secure funding for your limo rental company, and it’s going to be impossible to do it without a business plan. A lender will want to see your plan before deciding whether or not to approve you for a loan.
So make sure your business plan is airtight. It’ll improve your chances of succeeding as you move forward.
3. Buy the Limos You’ll Need to Get Started
After you have your business plan all finished, you can start trying to acquire some of the things that you’ll need to get your business underway.
You’ll likely need to begin leasing office space. You’ll also need different forms of technology, like a business cell phone, a work computer, and more.
But the most important–and the most expensive–thing you’ll need to acquire is a fleet full of limousines. You should try to offer a wide range of options if you can, including smaller sedans, regular-sized limos, and even party buses.
You don’t need to get your hands on all these different limo options at once. You might be just fine with one or two regular limos to start. But eventually, you’ll want to build out your fleet so that you can cater to almost anyone.
4. Outfit Your Limos With the Latest Technology
Don’t make the mistake of snatching up a bunch of old limos that people aren’t going to want to ride around in anymore.
Your limos should be on the newer side, if possible. They should also have tons of technology crammed into them. People want to see state-of-the-art audio/visual equipment and top-of-the-line GPS systems in the limos they rent.
You don’t want to go too overboard and splurge on a bunch of upgrades you can’t actually afford. But you also don’t want to roll out an unimpressive fleet of limos and give people the wrong impression right from the start.
5. Obtain Insurance For Each of Your Limos
In addition to acquiring limos for your limo rental company and outfitting them with technology, you’re also going to need to make sure your limos are insured. If an accident involving one of your limos takes place, you want yourself and your passengers to be covered.
Shop around for the right insurance policies for your limos. You want policies that will provide you with plenty of coverage without breaking the bank.
6. Hire Experienced Limo Drivers
You can have the most amazing limo rental prices in town and the most incredible limos outfitted with more technology than people can possibly use during a limo ride. But if people don’t like your drivers? You’re doomed.
Hold interviews with different limo drivers in your area and hire the best of the best. Your limo drivers should be:
- Great with directions
- And so much more
You will, of course, need to pay an appropriate salary if you want to attract good drivers to your business. But that’ll be a small price to pay when you see the great response that they get from customers.
7. Market Your Limo Company to Your Community
How are you going to market your limo rental company to your community once it’s up and running? Are you going to:
- Place advertisements in the local newspapers?
- Run commercials on local TV and radio stations?
- Push your company on social media platforms?
There are so many ways to market a limousine business effectively. It’s your job to find what will work best for your company.
Start Putting Together Your Limo Rental Company Today
Right now at this very moment, there is someone looking for a ride in your town or city. Are you going to be the one to provide it for them?
You can do it if you follow the tips listed here when you start your own limo rental company. They’ll set you up for long-term success and help you establish a strong following in no time.
Check out our blog to get more advice on running a successful small business.