View Full Version : Start Up
July 19th, 2001, 04:28 AM
July 21st, 2001, 05:05 AM
I think you better look closer at the claims of that kind of money being made... 200k a year is each car making 2k per week, 52 weeks a year. If my limos made that per week, why would I sell my business at a get out of it quick price? And I would not have leased vehicles, either. Making that kind of change, I would own them outright.
July 21st, 2001, 09:08 AM
Those numbers don't add up! There is no way those cars could generate that kind of income in such a short period. I don't believe the DUI will have much of an effect. You can more than likely get the operating authority and I would plan on having other drivers on your insurance. If you are the only driver it will have more bearing on the rate. If you provide your insurance company with a list of five drivers with clean records and indicate that you will be a once in awhile driver, it should be okay. Once you are insured, you are insured and if you have an accident behind the wheel, it was on one of those once in awhile trips. Good luck getting in the business but I would counter offer to assume the payments of the cars and assume the monthly payments of the yellow page ad and give the guy $2500 cash. That would be a fair offer in my opinion. I would only do this after you obtain an operating permit!
July 21st, 2001, 05:14 PM
Personally, I would think long and hard before getting in that deep, starting out. From jump-street, you would be obligated to $3000 on vehicle payments. Probably another $800 per month on insurance. You can't drive both cars, so another driver would be required right off the bat. Yellow page ad prices are killers.(trust me, I've priced them) Other expenses will be fuel, preventive maintainance, dispatch, etc. Those are before anything going wrong. If you really want to start a company, I would suggest buying either an older car or leasing one new one, direct. Test the waters before diving in. As stated in a previous post, if the intake is that great, why is he selling out so cheap? Good luck!
July 22nd, 2001, 06:20 AM
I would suggest you call Krystal about those Limo's. Get the vin numbers to verify that they are Krystal's.One other thing, Krystal does not build ten passenger Limousines. Ask them. If those limo's are 120" they are eight passengers in the rear.
NLA Board Member
July 23rd, 2001, 07:41 AM
What does the overall AVERAGE startup company achieve in it's first year? Considering target market is there, marketing is done properly, using a single limo. I saw some numbers from LCTMAG stat's which have the number of average runs for a an operator using 1-20 vehicles, average is 16 runs for stretch limo's/week. Any input on figures? Thanks
July 30th, 2001, 03:48 PM
Some of the issues you will come across while starting to this type of home based business is whether to purchase a used vehicle vs. new, how do you run a service, how do you increase tips or just whether or not this type of home based business is for you.
Now, you could just go out and purchase a vehicle and wing it or you could just give up on your dream of owning your own business.
My experience in transportation began when I drove limousines for 2 years in North Carolina. Now I have my own service based in Asutin, TX. Im doing $3000 a month in revenue. I would like to give you advice on this type of home based business.
Now, doesn't it make sense for us to have a conversation?
July 30th, 2001, 04:39 PM
anybody out there making that kinda $$$$$ if so I need to take lessons or something!!
[This message was edited by Jack Williams on July 31, 2001 at 12:54 AM.]
July 30th, 2001, 04:50 PM
Crazy, to think you might not get a certificate!! NO
crazy, to believe he,s done $200,000 in 12 months? YES!!
Crazy, to think you might get insurance?? _DEFINITLY
COMPLETLY INSANE to think some one making that kind of money would sell out?? ABSOLUTLY!!
(AND REALLY NUTS IF YOU THINK I CAN TYPE OR SPELL!!)
July 31st, 2001, 03:00 AM
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by Victor Brown:
I have come across someone trying to sell 2 2000 10 passenger Krystal limos and his existing ad in the yellow pages for $ 16,000 and the assumption of the lease payments at 1500 a month per car. Is this reasonable? He claims to have done approx
$ 200,000 for the past 12 months. But I contacted the PSC and they indicated his company does not have a certificate to operate. I don't have a class M license plus I had a DUI three years ago(no accident, just speeding). Am I crazy to think that I could get issued the proper certificate?<HR></BLOCKQUOTE>
I can't speak to state regulatory requirements, but I understand that Georgia can be difficult. As to the financial information, it is improbable that someone could do $200,000 with two 10-paxc in one year, but not impossible. In the FIRST year, it is highly improbable. But work backwards from the number. If the $200K is not net of gratuities, take those out and assume 15%. Therefore, 85% of $200,000 is $175K. This is $87.5K per car. Take the hourly rate he tells you he charges, or the prevailing rate in the area, and divide into the $87.5K and this will tell you how many hours the car has been hired in that year. Then apply common sense. Assume one wedding every weekend for four hours, and some nights out, and look at the mileage of the cars. If you can get your hands on financial information, look at what he has paid chauffeurs, including himself (if he drives), and see if the hours match the hours calculated for the cars. Look at gasoline purchases, and see if they are consistent with the hours and mileage. $200K is not out of the question for a well-promoted, well-run operation, but from dead stop one would wonder how he got there. What is your Yellow Pages publishing cycle? When most companies start up, they miss the Yellow Page cycle by anywhere from a month or so to almost a whole year. Was this company in business longer and just bought the two Krystals? Perhaps, since they're financed which would be hard to do for a new operation unless the owner is very strong financially. There are a lot of ways to rationalize what level of operation this company has had, but you have to start with whatever financial information is available to you.
James H. Joseph
Pegasus Chauffeured Motor Cars