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Thread: Limo Startup in New Orleans

  1. #1

    Default Limo Startup in New Orleans

    Hey, first off I love the limousine industry. I am wanting to start up my limo company in New orleans. I have submitted application for licensing to city hall New Orleans and attended a transportation committee hearing this past week where I had the opportunity to present the city my business in a speech. The new orleans transportation dept. in city hall have told me that the licenses are not guaranteed to be issued if i apply. Even though I met all the important requirements except that I have to have a business address in new orleans before I submit the application for licensing which is total BS. ( I live in a suburb just 5 min out new orleans. Why would I get a 1 year lease for a small office in new orleans without even operating business which im not 100% sure if I am going to recieve licenses? Why would I wanna be stuck with a 1 year lease if i don't get approved for licenses?)

    I am currently waiting on approval

    So my question to you guys is, If I don't get approved for licenses, can you still make some decent money in suburbs of new orleans? Because theses licensees are very easy to acquire. I mean by doing business with just mostly local people in suburbs which have population of about 200,000.

    Im gonna be servicing weddings
    funerals and hotels

    I'm wanting to start off with leasing one brand new stretch and a 2006 town car which i already own. Is there a market for locals? I know its gonna be a rough start and have to put a lot of hours into the business which i do not mind.

    I look forward to your input ladies and gentlemen. Thank You

  2. #2
    Senior Member Excalibur Limousine's Avatar
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    Market research is a must and will honestly answer most of your questions. You are going to have to approach the funeral chapels, wedding planners, and hotels to get their input on your concept. Getting your name out there with the general public is the hardest and can be the most expensive if you plan on advertising as part of your market strategy. Don't forget about the restaurants as well and seeing if they are interested in joint marketing for valentines day, mothers day, christmas parties, etc, for providing limousines service to and safe return home after. All in all, lots of leg work. Try to watch your monthly expenditures, leasing a new stretch, as you are likely going to have slower months off the start than busier. As the old saying goes, serve the masses and live with the classes. The average joes will build your foundation for a solid business.
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  3. #3
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    Can a Post Office box work as a business address? How about finding a shared office space? These are becoming more popular and affordable.

  4. #4

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    Thank yall for getting back with me, sorry for the late reply.

    I appreciate you guys input.

    If I dont get all the territories that I need for the city, I was thinking of joining alliance with another big company thats located nearby. Could that work?

  5. #5

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    Quote Originally Posted by LakeView Limousine View Post
    Thank yall for getting back with me, sorry for the late reply.

    I appreciate you guys input.

    If I dont get all the territories that I need for the city, I was thinking of joining alliance with another big company thats located nearby. Could that work?
    It would help out. Just know that they will be taking a cut off the top.

    A new operator needs to understand that the business plan, specifically your marketing strategy will set you apart from the countless other companies out there. No marketing plan = competing on price alone = broke, tired, and out of business.

    I'd advise against buying a brand new stretched limo as a brand new start up. New small companies with no reputation and no clientele will not be able to attract the amount of business needed at rates that will allow you to not only cover the costs associated with the payment, insurance, storage, etc but actually make a profit.

    In my experience, sedans and SUVs make more money over the course of a year than the stretched limo and are much less of a headache.

    That stretched limo is going to ratchet up your insurance costs quite a bit. In my humble opinion, you need to really hold off on it and find another small operator(s) that run stretches. You can hand off stretched limo reservations to them for a small commission. Most importantly, you'll see how many bookings per month you can realistically get and at what cost. Remember that even a lot of inquiries and requests for something doesn't mean that those people will actually book with your company. 90% of the people out there are just wasting your time and want the lowest possible price without regard to how new / nice the limo is or type of service they get. They'd rather get it on the cheap and then complain online about how bad the experience was. Then the next time they book, they do the same thing. So you have to really have to have a plan to tap that 10% that do understand and will support your business. Guess what... Every successful company in this industry knows this and is going after the same clients. Why are these clients going to book with you? Seriously, ask yourself this. Because you offer good service is not going to cut it.

    Putting in long hours alone is not an indication of future success. You need to really understand the industry. Start with a sedan and get that making money and making you a living and then move on to other vehicles.

    Also, a 2006 Lincoln is too old. I don't care how nice it is. Larger companies that will be able to farm work out to you at a rate that isn't at a point where you are doing the job at anything more than your cost after they take their cut isn't going to farm work out to someone using a 7-8 year old car, period.

    If I was you, I would sell that old Lincoln and purchase a 2 year old (max) sedan / SUV to start. I'd probably go with a livery optioned Lincoln MKT TownCar if I had to choose only one vehicle to be in business with.

    I hope you take this as constructive advice. I'd like to see everyone here succeed because obviously you care, that's why you're here.

    Good luck.
    Last edited by Vintage Limos; July 17th, 2013 at 02:01 PM.
    Andrew Armitage
    Vintage Chauffeuring LLC
    Andrew@VintageChauffeuring.com
    www.VintageChauffeuring.com

  6. #6

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    Thank you so much Vintage Limos

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