Just starting by asking questions

[John Herzog]

Hello and as you can tell I am new, I have been a chauffeur for 8 months got my feet wet and found I am good at this. I want to take my talants and make it into a company that offers the same level of service that I have been offering. I am in the Inland Empire in Southern California and am looking for a mentor whom can help me start by helping me with all the right questions and things I need to obtain to get started the right way.

Thanks John

[Steve W.]

Welcome to the forum John!

First question is do you have a business plan defined and written up? Have you ever done a business plan?

That's really the first step in this process because after you do it you will see what direction you will be going, and even if any direction is worth going in.

Your desire to start a business is great but many business fail with all the desire in the world if there is not a solid plan in place.

So do a little research on writing a busines plan, and read some exmples of good business plans. I am sure plenty of them out on the net.

[AAA Limos]

Originally posted by Steve W.:
Welcome to the forum John!

First question is do you have a business plan defined and written up? Have you ever done a business plan?

That's really the first step in this process because after you do it you will see what direction you will be going, and even if any direction is worth going in.

Your desire to start a business is great but many business fail with all the desire in the world if there is not a solid plan in place.

So do a little research on writing a busines plan, and read some exmples of good business plans. I am sure plenty of them out on the net.

Excellent Advice Steve! When I started out, the exercise of creating the business plan exposed some things that I had not considered. I still went forward, but structured the deal (I purchased an existing company) very differently that I would have without the plan.

[John Herzog]

I am working on the plan at this time that is why i am asking questions so I know what to put in the plan.

[AAA Limos]

Originally posted by John Herzog:
I am working on the plan at this time that is why i am asking questions so I know what to put in the plan.

There is a good example with instructions on the LCT Magazine website Here:

LCT Business Plan (http://www.lctmag.com/stx.cfm?action=business_plan)

[John Herzog]

Thank you very much for the information. I am also looking into the purchase of a company that is already running.

Thanks for the plan

[Blue Diamond]

Maybe it would be possible to Manage a company first. There's more to the business on the office side that many drivers don't see.

I agree with those below. You need a business plan and cash! I spent my first year taking money out of my own pockets to keep up with all the things I needed to keep the business afloat!! There was MANY things I didn't think about.

Set up a savings account with $1000 in it. It will come in handy for unexpected emergency repairs and towing. Down time is a business killer.

[John Herzog]

I have spent time behind the sences of my own business before and found time was my worst enemy I either had tow much on not enough. Thanks for the advice and I am setting aside about 150.000 in my plan for expense that are unforseen and for back up. I have also worked trade for services with a local towing company. It is all about the relationships that you can form(I think)

thanks again for the imput
John

[Blue Diamond]

Yes, those relationships can both help and hurt you. Don't share too much with others and DON'T bad mouth other companies in your area. Even if you don't agree with the way they operate. It can cause a lot of turmoil in your "fish bowl."

Always be professional in both speech and actions... it will gain you respect in the industry.

I only say these things, because I've seen and heard it. Those companies went under quick. Bad news travels FAST!

Hopefully you won't need the tow trucks anytime soon, but it's good to know someone at 3:30 am! http://limos.com/graemlins/thumbsup.gif

[John Herzog]

I hope that you think I was not bahing any companys around here. I was talking about my own company that I had in OC that was a different business. The only person I was bashing was myself. I am appreative of the input from this board and am putting it to use.

[Dave M]

I think it’s great you want to start a company the right way. The industry needs honest operators. I know things can be confusing at the beginning, but setting up a limo company is relatively easy. After all, you’re only sending a man to the airport, not the moon. Here’s a roadmap to setting up a limousine company.

1. Choose a Niche. The limo market in Southern California is competitive. Establishing a niche is vital to success. Once you have a niche, you can properly focus your sales and marketing dollars. A niche can include budget, location, race, and industry. If you can find the right niche, selling your service will be much easier. Here are a few examples in the LA area:

Ecolimo – Green transportation (Prius)
Classic – Serves Thousand Oaks
Cool Ride – Budget white sedans
Ride Well – Upscale-Mercedes and Escalade
Jackson – Urban Market
GPI – Secure Transportation

2. Create a business plan. One of the most difficult parts of creating a business plan is projecting expenses and revenue. At the beginning, your main expenses will be gas, insurance, Blackberry/cell phone, and car payments. As you grow, expenses will include workmans comp, payroll, office leases and a dozen other miscellaneous items. Many factors affect operating expenses, but for a single vehicle operator, here are a few very ballpark numbers: (I mean Ballpark!)

Town Car: $1800
Stretch: $2000
SUV: $2200

Revenue for a busy town car should be about $10,000 a month. The stretch should be a little more with the SUV coming in at $15,000. The SUVs are money makers if you have the right accounts and chauffeurs.

3. Create a marketing plan. “If you build it, they will come.” This is a great philosophy for a fantasy baseball movie, but a very stupid one for a limo startup. Put a marketing plan in place before you buy the vehicles. Allocating a portion of your monthly budget to marketing is important. It’s nice to get word of mouth business, but you have to market.

Marketing falls into offline and online categories. Traditional offline marketing usually includes stuff like yellow page ads, newspaper ads, direct mail, billboards, newsletters, bridal shows, and radio contests. Online marketing will include limos.com, ppc, google adwords, search marketing, email newsletters, and Yahoo Yellow pages.

4. Set up a corporation. An S Corp or LLC is best for a small operator. We live in a litigious society, protect your assets. I recommend legalzoom.com for this service. It’s cheap and fast.

5. Get vehicle insurance. If you don’t have a limousine, take out commercial insurance on your private vehicle. A good agent is Sylvanna at Seagull Insurance Services in Glendale. Her number is 800-330-8775. She will guide you through the paperwork and fact-check your documents.

A very knowledgeable agent that participates in the forums is Phil Brun. His phone number is 1-800-295-1897 x-2756.

7. Get Legal. Apply for a license with the California PUC. If you Google California PUC, they have a couple of PDF files on their site that outline the application process.

To get a license, you need an insured vehicle. This is why you should insure your private vehicle. By doing this, you can get a license before you buy a limousine. If you use Sylvanna, she can help you fill out the PUC application.

In addition to the PUC license, you should obtain a local business license. If you plan to operate at LAX, you will need a Los Angeles business license. The airport provides a grace period, but sooner is better than later.

8. Once you have a license (the state will issue your company a TCP number) - purchase a vehicle. If you plan to purchase a Town Car, the three dealerships that handle this vehicle are Don Kott in the South Bay, Galpin in Van Nuys, and Mayberry in the valley. Don Kott and Galpin are volume dealers, Mayberry is small and personal. Each has their advantages and disadvantages, but all three are set-up for limousine sales.

If you plan to buy a stretch, these are your options. You can buy factory direct from Krystal or Tiffany or go through a dealer. The two dealers that I’m aware of are Coach West in Carson and American Limousine Sales at LAX.

9. Acquire Airport permits. A permit and/or registration is required at all commercial airports in Southern California. At LAX, a charter party permit is issued through landside operations. To get this permit, you will need a Los Angeles Business license, a properly insured vehicle, and a TCP number. If you operate a Van or SUV, you will also need a PUC issued “Charter Party Permit.”

That’s it! At this point, you should have all the legal and operational elements in place to start a limousine company.

What should you do next? I would consider this:

Purchase limousine software
Build a website
Join associations
Develop relationships with vendors
Pursue farm-in work

I hope this information helps. I wish you nothing but the best with you new business.

Dave

[John Herzog]

thanks david for the mini outline you make it sound so simple that anyone can do it yet to do it the right way it takes a lot. I am working on the business plan at this time and putting the numbers together based on the company I work for now. Thanks for the steps and information it is very useful and I appreatate the help.

John H

[que]

Dave,
Me and my husband are trying to start a airport shuttle business in south florida, would we have to go through the same process or is it different?

[que]

ME AND MY WIFE ARE TRYING TO OPEN ARE OWN SHUTTLE CO. BUT WE ARE HAVING TROUBLE FINDING THE REQUIREMENTS FAR AS LICENSING AND LEGAL PERMITS WE NEED TO GET STARTED. HOW DO WE GO ABOUT FINDING THAT INFO.

[Blue Diamond]

que- What Dave M. stated will follow for you too. The only difference would be if you planned to go with over 15 passenger.

Check with your state DOT dept. They have the requirements avaliable to give to you. This will also give you contacts of where you need to apply and who to call.

Welcome!!

[Dave M]

As Blue Diamond stated, the process is basically the same. In addition to contacting the DOT, I would also consult a local insurance agent and stop by landside operations at Miami International Airport.

Dave

[Limo Insurance King]

que,

Make sure that the shuttle bus that you start with is not older than 5-6 years. Anything older, and in South FL, will prevent you from obtaining insurance from the better companies.

Also, if you do not have any experience (commercial passenger transport), look into hiring a driver that does have experience as this will also help you in your quest for affordable insurance. South Florida is becoming a tough market.

[que]

I would like to start by saying thanks to everyone that replied to my questions that me and my husband had, however if we wanted to start off by renting sedans "just until we are able to lease/buy" is that legal?

[John Herzog]

I quess I have started a good board for asking questions and starts for the new businesses. I am proud to say I have my business plan about 25% complete and working hard on the rest. Thanks to imput from so many people I think I have all the questions I need to ask to start the company, with most of them answered. Thanks to all whom imput. I am still looking for a mentor in Southern California, I am doing this for success and having someone with the experience and knowlodge that I am lacking to guide me.

John

[DawnLV]

I am considering a new career as a driver. What do I need to know about this business. Any advice would be very much appreciated.
http://limos.infopop.cc/groupee_common/emoticons/icon_smile.gif

[que]

Originally posted by que:
I would like to start by saying thanks to everyone that replied to my questions that me and my husband had, however if we wanted to start off by renting sedans "just until we are able to lease/buy" is that legal?

Can anyone please respond to my post...thanks

[Salicete]

Originally posted by que:
[QUOTE]Originally posted by que:
I would like to start by saying thanks to everyone that replied to my questions that me and my husband had, however if we wanted to start off by renting sedans "just until we are able to lease/buy" is that legal?

Can anyone please respond to my post...thanks[/QUOTE

It depends on the state in which you are located.

In my area, you must own or lease your vehicles in orer to obtain carrier authority. Getting commercial insurance may be difficult for rented vehices as well. Perhaps Limo Insurance King can discuss that if he sees this thread.

You should ask someone at the licensing authority in your jurisdiction.

[Steve W.]

Que are you talking about renting sedans say from a local herts or budget rent a car? That sort of renting? Or do you think there are firms that rent livery vehicles say on a yearly basis? Have you heard of such a thing?

Two things will have to be investigated:
1. Will the regulatory agencies in Florida allow that (sorry I do not know) Meaning will they allow you to reregister a car every time you switch it out (every few days) and what is that process like. The actual procss of that may be time consuming therefore prohibitive. Have a feeling this will be your major hurdle.

2. althought I have heard of rental car riders on insurance policies I think it is usually a requirement that you have at least one vehilce as your own in order to even get a vehicle insurance policy.

But in reality you should really try just to save enough money for at least one sedan, just about every one can do that with some perseverence. Long run much cheaper than renting a vehilce every time you need one. Becase in reality it would take all your profits unless you were doing like 5 or more airports a day or needing it for a 7 hour job. And that is not going to happen all that often especially with a start up company.

[David Merrill]

There are plenty of good clean used Merc's and Town Cars around to start off with for less than $5K. You will probably need another $5K or more for your insurance. Once you buy the car, establish your authority and set up your business, then you could think about daily rental of additional cars.

This was done in Detroit for the Super Bowl a couple of years back. Many Limo companies needed extra cars so they just rented them from companies like Enterprise. MDOT set up an express deal to get the cars inspected and stickered in time for the event. Each car had to have a vehicle safety inspection, proff of insurance coverage and then after paying a $50.00 fee per car, were granted authority for that Car for a year. They only needed them for a week so I guess if you want to jump through all of thes hoops each time you want a car, that is up to you.

[gunny]

It all depends where in S. United Soviet State Of Florida Que resides & plans on operating in. If Miami, plan on laying out big bucks. Highly suggested that you contact the Miami-Dade Dept of Consumer Services for the info you need.

The taxi barons & NLA limo taxiheads pretty much have the sedan market shut down to competition.