Starting the Limousine business as a second career, need advice>

[Wet10]

Hello veterans!
I am a 41 year old female retired Arizona State Trooper and would like to join in the limousine business as my second career. I have been considering this for quite awhile and I believe that this type of business could be quite lucrative. I have had advice from a friend in the business who operates Rolls' and Bentlys, but I would like advice from someone who operates sedans and stretches.
I live in a small town of 15,000 that is about 70 miles from Scottsdale. What would be your advice as to who my clientle might be and what type of vehicles should I be looking at purchasing?

[Salicete]

I suggest the standard workhorses, but you should really investigate and see what sells in your proposed service area.

If you decide to start with limos, I prefer Lincoln stretch limousines; I like 120s.

For sedans, I would suggest Lincoln Town Cars.

Before you buy anything, evaluate the area in which you plan to operate and see what is rolling every day.

Are there airports that you can serve? Are there larger cities with a good nightlife, lots of weddings, bachelor parties etc?

15,000 folks won't earn you a living, and 70 miles is a long way to have to drive to pick up a client. You should select your base of operations carefully.

You also need to investigate the licensing authorities where you plan to operate. Are there any barriers to entry and can you get licensed in a reasonable timeframe?

One more thing, I’ve been a police officer for 26 years, and when you market your business, the law enforcement angle can both help and hurt. Be careful who you let know you were a Trooper; many prospective clients may be turned off by that fact.

[D. Hartson]

It sounds Like you could be living in Globe? I have roots in Arizona and I know a little about the people and every little to big town has its own needs. What town are you planning to work in? As an Industry Consultant, I have no problem helping you identify your local towns requests. The Limousine Industry is a fun opertunity!

[wimpy01]

Beware of "industry consultants"! I can get business cards printed that say I'm in any business I specify. I can go out and buy a limousine and I'm in the "limousine business". 2 1/2 years down the road, there typically will be no evidence of my "limousine business".

Spend the next month or so reading thru every thread on every topic on this board. Go work for a limo business on a part-time basis for at least 6 months, so you understand the demands on your time and begin to understand what you will have read about here.

I personally think you need a population between 50-100K to have a viable market, unless the smaller market demographic is upper middle to upper upper class.

Keep your day-time job!
Identify the need(s) in your town.
Figure insurance on 1 vehicle will run 3-6K per year, add in your car payment, 500-2000/month and whatever overhead costs are necessary. Add 1000-2000 for repairs in the 1st year if you buy used.

[Dean Schuler]

Do your research Wimpy ! Hartson has been around a long time and has a sterling reputation.
Originally posted by wimpy01:
Beware of "industry consultants"! I can get business cards printed that say I'm in any business I specify. I can go out and buy a limousine and I'm in the "limousine business". 2 1/2 years down the road, there typically will be no evidence of my "limousine business".

Spend the next month or so reading thru every thread on every topic on this board. Go work for a limo business on a part-time basis for at least 6 months, so you understand the demands on your time and begin to understand what you will have read about here.

I personally think you need a population between 50-100K to have a viable market, unless the smaller market demographic is upper middle to upper upper class.

Keep your day-time job!
Identify the need(s) in your town.
Figure insurance on 1 vehicle will run 3-6K per year, add in your car payment, 500-2000/month and whatever overhead costs are necessary. Add 1000-2000 for repairs in the 1st year if you buy used.

[Dean Schuler]

What percentage of your immediate area is in the wealthy demographic ? What are the percentages broken down by age group and income for your region ? Who provides service now ?

[First Class Limos]

Don't expect to survive on the town of only 15,000 people. You need to market and serve all the cities around. Imagine all the 15,000 cities combined. You should also serve Scottsdale that is 70 miles away IMO (in my opinion) just charge more for that city based on your operating costs. A quick search shows Scottsdale has over 200,000 people, you dont want to miss out on that market. Just build your travel time and gas costs into your price, while trying to still stay competitve. If you simply say you dont service that area your missing out on alot of business.

[Greenpala]

If you are in a small town - must advertise BIG and strong. Otherwise start charging cheap rates for far away trips. Sometimes go out 1-2 hrs away from your town to do pickups. It will give you some bread and butter but you have to travel to the big town for that food.

[D. Hartson]

Wimpy, I am not asking for this person to hire me and I am not asking for money for advise. I have been in the industry for over 20 years and I just happen to know what Arizona and its people look like. I still have relatives and a history of family that has been there for over 100 years! I am sure since you live in South Carolina, if you have never been in Arizona, you have no clue of what happens there. I am willing to suggest options on this forum to help this new operator to get a jump start in the right direction!

Thanks Dean for your support

[Blue Diamond]

Wet10- Welcome to the forum!! As a past badge holder myself, I got into the business almost 10 years ago.

If I were you, I wouldn't limit myself to one or two areas. You'll get licenced in AR., so why not cover the state?? You can always add in trip charges and fuel to offset the drive times.

I would start out with a sedan and a 10-12 passenger stretch. Get hooked up with your friend for refferals and farmouts.

I'm thinking your main areas will be business class and casinos. You have a busier winter time than most with the snowbirds visiting. Take advantage of that. You'll eventually want to go interstate so you could take trips into Nevada.

Good luck, It will be a lot of work at first, but it should pay off in the long run!

[D. Hartson]

Blue Diamond.... FYI, Arizona has no Limousine authority. Anyone can operate there. The only authority is at Sky Harbor International Airport. Anyone in Arizona can operate anywhere in the state! Also, easy on going to Nevada. To take people into Las Vegas is tricky! Operators out of state can do it, but, an operators needs to be careful in how the paper work is done and what happens in Las Vegas. The prior (TSA) Transportation Services Authority has changed its name to (NTA) Nevada Transportation Authority is allways looking for out of state Limousines in Las Vegas. Out of state operators needs to know what they are doing in Nevada before entering the state. The NTA will impound vehicles and fine drivers for not being in compliance with Nevada Interstate rules. This is not a DOT issue. FYI