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Thread: Hello From Los Angeles.

  1. #1
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    Default Hello From Los Angeles.

    Newby here! Interested in starting conversations for insight into a Limo Biz. In particular ballpark figure in getting ball rolling. Example. Home based starting with two, three Town cars, fully insured, contract three to six drivers with own car/limo. Affiliate stretch and party bus, contract corporate accounts and seasonal business.

    Me. Background, former clothing Executive for over 15 years. Would love to find out more and chat with the Vets. My guess $100K- $150K?

    Thanks in advance!!

  2. #2
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    It's always good to start with 1 vehicle and go from there, so depending on what you get it can be pretty inexpensive. The question is how much time it will take.

  3. #3
    Senior Member MrQ45Limo's Avatar
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    Welcome aboard LA4life.
    Badger State Limousine Service
    "When nothing less than perfection will do"
    (414)-GO-GO-RED (414)-464-6733
    www. BADGERSTATELIMO.com

    http://www.Badgerstatelimo.com
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  4. #4
    Senior Member Cedar Mill Limousine's Avatar
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    Quote Originally Posted by LA4Life View Post
    Newby here! Interested in starting conversations for insight into a Limo Biz. In particular ballpark figure in getting ball rolling. Example. Home based starting with two, three Town cars, fully insured, contract three to six drivers with own car/limo. Affiliate stretch and party bus, contract corporate accounts and seasonal business.

    Me. Background, former clothing Executive for over 15 years. Would love to find out more and chat with the Vets. My guess $100K- $150K?

    Thanks in advance!!
    I am not a vet, but here is my look at it:

    3 LTCs * $18K = $54,000
    Insurance = $15,000
    Payroll = $75,000
    Maintenance Fund = $10,000

    These numbers and just fast and sloppy numbers. This is just an upfront cost without office equipment, secretary salary, IT, dispatcher salary, reservationist salary, and salesperson salary. Also, this does not include advertising and shop costs. As you have probably heard, it usually takes 4-5 years to get traction, this is why I would have these funds up front or at least be able to pay for them up front even if the company does not move for 6 months. I know you think you will be busy - but I always like to be prepared. Karl is dead on, in fact I would go further and suggest that you go work for someone for 2 years before putting any of your money or risk into the industry before you even know anything about it. Like hotels and restaurants, everyone wants the same times and dates - the rest of the dates and times is what you are chasing after and it is not easy because everyone else is chasing after them too! Good Luck!
    Rich Rottier
    219.808.0976 | richrottier@gmail.com

  5. #5
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    Karl is dead on about what? I didn't see him post anything here.

    Also, there is the time and legal and application fees to get your PUC authority, LA Business license, and all the other gov't red tape.
    Tim Wiegman, Jr.
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  6. #6
    Senior Member Cedar Mill Limousine's Avatar
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    Quote Originally Posted by BLVD Limo View Post
    Karl is dead on about what? I didn't see him post anything here.

    Also, there is the time and legal and application fees to get your PUC authority, LA Business license, and all the other gov't red tape.
    Ha, shows how fast I was reading this over (had 5 tabs open with 5 different forum threads - maybe 3 too many today)...I meant Brandon.
    Rich Rottier
    219.808.0976 | richrottier@gmail.com

  7. #7
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    Default Thanks for the Welcome!

    Almost attended UW Madison, think they were voted Playboy's top 5 party college. Great town Wisconsin!

  8. #8
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    Quote Originally Posted by brandon1 View Post
    It's always good to start with 1 vehicle and go from there, so depending on what you get it can be pretty inexpensive. The question is how much time it will take.
    Excellent advise! I'll definitely take into consideration. Thanks brandon1!

  9. #9
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    Quote Originally Posted by Cedar Mill Limousine View Post
    I am not a vet, but here is my look at it:

    3 LTCs * $18K = $54,000
    Insurance = $15,000
    Payroll = $75,000
    Maintenance Fund = $10,000

    These numbers and just fast and sloppy numbers. This is just an upfront cost without office equipment, secretary salary, IT, dispatcher salary, reservationist salary, and salesperson salary. Also, this does not include advertising and shop costs. As you have probably heard, it usually takes 4-5 years to get traction, this is why I would have these funds up front or at least be able to pay for them up front even if the company does not move for 6 months. I know you think you will be busy - but I always like to be prepared. Karl is dead on, in fact I would go further and suggest that you go work for someone for 2 years before putting any of your money or risk into the industry before you even know anything about it. Like hotels and restaurants, everyone wants the same times and dates - the rest of the dates and times is what you are chasing after and it is not easy because everyone else is chasing after them too! Good Luck!
    Thanks Rich! A quick update on my progress. My TPC license is in the works as we speak. I've located three used cars for all cash purchase. Insurance, waiting for quote. Insurance, are your referring to $15k per car insured, so times three? Not sure about the payroll figure of $75k. My car maintenance and office is covered.

    Great idea about working for an existing company. Wish me luck!

  10. #10
    Senior Member Cedar Mill Limousine's Avatar
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    Quote Originally Posted by LA4Life View Post
    Thanks Rich! A quick update on my progress. My TPC license is in the works as we speak. I've located three used cars for all cash purchase. Insurance, waiting for quote. Insurance, are your referring to $15k per car insured, so times three? Not sure about the payroll figure of $75k. My car maintenance and office is covered.

    Great idea about working for an existing company. Wish me luck!
    My point about the payroll is that I would have all costs in cash up front. Most start-ups I believe fail because not enough start-up capital. If you have a good business plan, you should try calling Phil T. Brun for an insurance quote (fyi: this is their busy time of year).

    Phil T. Brun
    Kiely, Hines & Associates Insurance
    800-295-1897 Ext. 2756
    502-569-2756 Direct
    pbrun@kielyhines.com
    Rich Rottier
    219.808.0976 | richrottier@gmail.com

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