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Thread: Limousine Business 101

  1. #1

    Default Limousine Business 101

    Good Afternoon All,

    If you've seen one "Limousine Start Up" thread, you've seen them all. Typically, it's delusional individuals who believe they can become rich quick by driving around rich men. Fortunately, I'm aware the business doesn't work that way and there is a HIGH failure rate in this business. My situation has a bit more variables that I'll include in order to get more accurate information. If anyone is willing to take the time out and offer some advice I'd really appreciate it. Here is my deal:

    I'm a 24 y.o from New York. My father owns a small taxi company here, I've been driving/managing for roughly 6 years now. Summers are very profitable since we do business in the Hamptons, but business during the year is so-so (I figure it's somewhat the same in the Limousine industry in Spring/Summer seasons). I'm a Legal Assistant in Long Island as well, so this isn't my primary occupation. I did it while in college for some extra money and have done it mainly because of that, for extra money. The Limousine industry became something I wanted to pursue because I have reliable networking options in New York City and I have very strong marketing skills, so the advertising perspective of the business really intrigued me. My experience in the taxi industry also has improved my customer service skills with clients and potential clients. There are a few other aspects that has me motivated to start a Limousine business but I'll save you all of the boredom and get down to business.

    Financing a Limousine business and obtaining affordable insurance are two areas I have concerns about due to financial history I had in college. Long story short, I was young and irresponsible which could probably come and bite me in the ass now. My credit isn't too great, when I was 20 I had my checking account shut down for insufficient funds (which I did pay the bank back years ago). During that time (18-20 years old) I also had about four bills go into collections (which I have also paid all off). My credit has improved since then but I'm sure you all can see how it's still damaged. A year later (age 21), I had three speeding violations in a 6 month time frame which in New York results in a suspended license for six month. Again, I have since got my license back and now I'm currently trying to start a Limo service with all these obstacles of my past coming back to haunt me.

    So with the bad credit and a revoked license in the past, I am FULLY aware that I am already at a huge disadvantage in starting a Limousine company. The bad credit will lead to higher interest rates when attempting to finance a business (if I could even get any loans at all) and the revoked license I got in the past will make my insurance premiums sky-high. These are things I am aware of.

    The information I am trying to get from the Limousine community is what are some ways I can finance a company, in an affordable fashion, even with these past obstacles in my way? Also, what suggestions do you have in terms of what I should be doing to resolve this issue before starting the company? Thank you for helps in advance.

  2. #2
    Senior Member Cedar Mill Limousine's Avatar
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    You could find an outside investor.

    Personally, I would save everything you can (live dirt cheap) for the next 4 years. This will put you in such a better position. I am talking 180 degrees different. You would still be under 30. Your credit would be wonderful. Your driving record would be wonderful. The economy should be much, much better. The banks would be much, much stronger. You would have a ton of cash up front. And you would be 4 years wiser. 4 years of planning, learning, and saving.

  3. #3

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    It may not be what I want, but that does sound like a great idea. Is there a particular reason four years was your number? Thanks for your advice.

  4. #4
    Senior Member Cedar Mill Limousine's Avatar
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    Quote Originally Posted by LimoRookie View Post
    It may not be what I want, but that does sound like a great idea. Is there a particular reason four years was your number? Thanks for your advice.
    Depending on what kind of "bad credit" you have, it could take up to 7 years for it to come off your credit report from the date it happened. The same goes for your driver's license. 4 years (IMO) would be a good amount of time to prove to yourself that you can live within your means, pay off ALL debts, save like you have never saved before, and the banks would see that you are now responsible.

  5. #5
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    You may right that starting a limousine business is not profitable business, but starting any business is not easy to get success in starting, each business have some hidden loop falls that affects business dramatically. In the starting of any business it is important to know about its loop falls first then its key point to make it successful.

  6. #6
    Senior Member HeavenOnWheels's Avatar
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    Who says you need an investment to get into the business? You can start using your marketing skills and contacts NOW, and farm out the work to reputable and reliable companies in your area that you can trust. Gain a clientele first, make some extra money in your pocket, do this for the next 4 years while you are building your credit and getting your driving tickets etc off your record and then, you won't need to finance anything. You should have enough saved up to get into your own, paid for, vehicle. Nothing beats hard work and sweat in the long run than being debt free. Then, you start with a leg up most other companies when we started because you will already have your client base established.

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