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Thread: limousines Start up cost and fees.

  1. #1

    Default limousines Start up cost and fees.

    Hello, Everyone. Im new to this website. So far it been pretty good to learn and get idea. I live in the baltimore area and want to start a limousine service. I want to start small and hopefully grow and expand. What are the fees and cost that I need to be aware of? And how much does it cost to start a limo sedan service?

  2. #2

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    To last, around $150,000, thats one car and good marketing and business skills.

  3. #3
    Senior Member Cedar Mill Limousine's Avatar
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    Good realistic response. I would add, you should have a part or full time job that will pay your bills so that you do not have to rely on your new company to feed you.
    Rich Rottier
    219.808.0976 | richrottier@gmail.com

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    Just to cover the day to day living expense so you can devote full time to growing the business, it doesn't hurt to have a spouse with A good paying job and a "Cadillac" medical plan. just remember, you do need to eat.

    Also remember, it takes two cars or a very good back up network to keep one car running. So figure what it cost to run one car and then double it.

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    Earl you are correct about having a spouse with a great health plan, my wife is a county employee and we have enjoyed a great health plan thru her job. This is something the NLA should have been pushing to State Associations all along, work to get health benefits for employees. Make sure that state associations push operators to pay employees properly, all association have by-laws, I wonder how many of states members operate within their bylaws. Instead they continue to chase legislation, that one could assume is ineffective.
    I want to die while asleep like my grandfather,
    not screaming in terror like the passengers in his car.

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    Yes it would be great for all employees to have a good medical plan. Unfortunatly most operators simply cannot afford it. In two more months I will offically be on Medicare so I will have at least some type of medical insurance in place.

    I currently have a plan that I pay for out of my pocket $400.00 a month for a $5,000.00 deductable. I do work for a school district that has a plan avliable but it only covers professional staff and support staff who were "Grandfathered" in 12 years ago. I do not qualify. I can buy into if I wish but that would cost me $1,500.00 a month. It is a "solid Gold Cadillac" Blue Cross plan but to do this i would be working for the insurance. We do have some support staff who do this but actually have to pay to come to work.

    Could you imagine how much you would have to charge just to cover a few employees? It would put most small operators out of business but this may be what is coming down the pipe line from the "B.O. administration.

    Yes I know this may be a little off the subject but it could be considered part of start up expense in the future.

  8. #8

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    Buy two cars a towncar and a SUV.

  9. #9

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    Brandon, you said you started under 30k? how many cars did you start with? Didi you do most of you business during the weekend?

  10. #10

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    In B town $30k is almost gone about time you by your car and get licensed.

  11. #11
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    Default smart driver

    what was your plan going or thoughts going in to this?
    I want to die while asleep like my grandfather,
    not screaming in terror like the passengers in his car.

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    Nobody else has asked this question, so I will. What type of limo biz are you looking to start? Are you wanting to go into the Retail Business with stretch limousines and service nights-on-the-town and birthdays? Or do you want to go into the Corporate side of things with sedans, vans, and SUVs and service more airport oriented runs? Answering that fundamental question will help guide you as to your start up costs. Some airports require permitting that isn't require by the city and that will increase your start-up expense if you do corporate work. Depending on the size of the vehicles you are looking to purchase will determine the regulation on your insurance liability limits, as well as the type of work you choose to do, and that will vary based on your desired market.

    Truth is that you need to decide what your goal is first, then ask about the start up costs. As for me, I started stupidly with one of those "Very little money down" mentalities and "I'm going to put everything I own up as collateral" dummies. My how things have changed for me over the last couple of years!
    Tim Wiegman, Jr.
    Boulevard Limousine
    Travel Confidently!
    Serving Kansas City, Lawrence, Topeka
    http://www.BoulevardLimoKC.com - Kansas City Limos
    KC Airport Car Service

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    And in case you were wondering what the last part means, when I started, I had a total of 4 vehicles (mix of both fleet and personal) with all 4 vehicles being security on 3 notes. Of those 4 vehicles, 2 of them were once paid off and I put them back up because I was going to make this happen. Today, I have a total of 5 vehicles (mix of fleet and personal) with 4 vehicles being free and clear with only 1 note left remaining and 1 vehicle as security for that note.

    Truth is, I have moved to a "Cash is King" phase. If I can't pay cash for it, I probably don't need it way of thinking. I am not at the mercy of the bank. I am not at the mercy of lowering my prices to gets the wheels rolling to make the payment. I am not at the mercy of revolving credit card balances. I am really have to respond to ONE bank for the ONE note that I have out and I have a VERY GOOD relationship with that bank. They were the bank that helped me get started and they knew I was a risk. I think I intimated the president of the bank when I went into his office and started slamming my fist down on his desk, pencil holder bouncing, yelling "THIS IS GOING TO WORK! I WILL MAKE THIS HAPPEN!" to get the loans I needed to get started. And that was in January of 2008. The president of the bank now looks at me and smiles as he knows that he made a gutsy call to grant the loans but that it turned out to be the right call.

    Don't let others decide your fate. You must grab the bull by the horns, rip off its head, and drink its blood as that will be the sweet nectar of success! Graphic, I know, but its what you have to do to go places and become a leader.
    Tim Wiegman, Jr.
    Boulevard Limousine
    Travel Confidently!
    Serving Kansas City, Lawrence, Topeka
    http://www.BoulevardLimoKC.com - Kansas City Limos
    KC Airport Car Service

  14. #14
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    Tim, you make sense. And it sounds like things have worked to your satisfaction in your case. But itís probably safe to say that just like the diet plans that say you can lose a pound a day, itís not likely to work out that way in every application.

    The fact remains is that you do need money. Whether it comes from your own mattress vault, from a bank as a loan, your credit line, or from someone else, the need for capital is absolute. Even if itís your own money, you're on the hook to repay yourself. And while you may squeak by on a shoestring amount of capital, there are no prizes in business for squeaking by. You need a realistic nest egg to get off the ground, IMO.

    But you and Limo Wire posed solid questions that smart driver has to lay some serious consideration to.
    Karl Jones

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    Quote Originally Posted by smart driver View Post
    Brandon, you said you started under 30k? how many cars did you start with? Didi you do most of you business during the weekend?
    i started with 1 party bus, if i counted my time invested it would be way higher. i basically worked for the last year and a half or so building up my business and not only not taking any money out for myself, but i also built some buses to sell and used the profit to invest into my business. i'm about to add my 5th vehicle to the fleet.

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