not sure on this deal!

my husband has $30,000 (that is it) wants to buy a used limo (2 of them) and start his own limo service......I, on the other hand think that this is alot harder than it is. Basically, when starting out in this business, can someone please give me an estimated start up cost? He plans to buy two limo's at $10,000 a piece and have only $10,000 as "working capital". I don't feel he realizes just how hard and how much time and money is needed here. Can anyone give me advice on this.

Thanks,
Terry

First, couple of questions:

1) What kind of vehicles?
2) What is your market area?
3) Will he be full time?
4) Does he have yellow-page advertising in place?

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by XENEFOX Media Corporation:
First, couple of questions:

1) What kind of vehicles?
2) What is your market area?
3) Will he be full time?
4) Does he have yellow-page advertising in place?

<HR></BLOCKQUOTE>

1) no vehicles yet, looking to buy USED vehicles...two of them at $10,000 a piece.

2) don't know the answer to that question.

3) he works full time at another job but he was planning on hiring someone else to drive.

4) no advertising has been done at all since this is in the thinking stages!

Starting a limousine company is not as easy and cheap as you think. This is a very serious industry that involves a lot of time and energy. If your husband has a full time job, who plans on answering the phone during his hours while working? Limousine companies are a 24hr service in which if you want to be succesful, your customers need to be able to reach you at all times. In regards to costs of running a company, it really isn't cheap. If you wanted to run a LEGAL limousine company there are things to worry about such as insurance, advertising, limo inspections, licenses, phone bills, and since these will be older limousines MAINTENANCE!!. I wish you lots of luck in your endeavors but please research your market place and research the industry itself. I think the key to success in this industry is to be very educated on the ins and outs of it.

I strongly suggest that your husband work part time for a busy limousine company. This will give both of you a first hand experience in the time and effort needed.

What a sensible wife.
Your husband is starting in the reverse order I am afraid, firstly he should look at his prospective market, then at the costs he will incur up front, then get a single vehicle as new as possible, and have the reception facilities in place (telephone etc)and then plan on going to work. It is a waste of your money to play at limousines, it will cost you a bundle of money and being part time is no use at all. Put your money in the bank, get on with another company to gain experience and see the many pitfalls, and then rethink your strategy.
Good luck
Dick Hall

I open with $12,000 and done years of research. The business is now picking up. I have ads in all of the phone books, business cards, etc. I still had to ad money in the first 4 months to keep it going. Now it is booming (for now that is) I'm booked until the end oy July.


[This message has been edited by james (edited 05-16-2000).]

I agree with Dick -- I had originally wanted to own my own limousine service years ago. The natural first step for me was to work for a small company. After 3 years in the business, dispatching, chauffeuring, dealing with vehicle maintenence, I decided the the operational/ownership side of the business was NOT for me. Hence, I ended up on the Internet side of the equation.

I suggest your husband work for someone else to see if his heart will really be into it. The limo industry is not all glory. Its long grueling hours. It is also highly competitive.

Another suggestion is to drop the full-time job and give a 100% commitment to the operation. Treat your limo service like a hobby and it will run your cash-flow dry; I just never heard of anyone being successful in this business without a full-time commitment from the owner to begin with.

I always query for feedback on anyone who started in this fashion. I never hear back from anyone because I don't think there are any success stories from that path. I would like to be proved wrong -- if so, let us know! We want to know if you started your limo company "part time" and now are flourishing with 40 vehicles and are potentially saleable for a billion dollars to Carey. *wink wink*

=)

[This message has been edited by XENEFOX Media Corporation (edited 05-04-2000).]

I want to thank everyone who replied to this notice and I continue to ask for stories on this subject because I plan to print this all out and hand it to my husband...I don't mean to sound like a downer and I know that is how he views this, that I am trying to stop him from doing what he wants..but he really has no idea what is involved and i don't want to go bankrupt. We have a friend who drives a limo and he makes it sound so easy and i just know that isn't the case.

Terry

I am glad we were able to help you-- that is the purpose of this forum. We hope your husband chooses a direction which leads to both of your successes. I think if he goes into it knowing what to expect, his chances of profitability improve. That "he plans on keeping his full time job" is a huge red flag.

I think that everyone here would agree that experience speaks volumes -- in this Forum there are hundreds of years of limousine experience perusing these posts. Not to imply an age, but Dick Hall alone constitutes a substantial experiential viewpoint which spans decades.

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