Do the right Research
The first and most important thing when starting a limo business is to make sure you have a good marketplace. Check the phone book or go online and see if there are any other limo services in the area. If there isn’t much competition, it’s obviously a great place to start. But don’t get too excited if you see that there are no services at all. There must be a reason why. Try finding out what the problem is or you may end up paying for it.
Consider and choose the right type of limo hire
Did you know that there are different types of limo hire service, based on occasion, industry, vehicle type and budget? well, here are the different types of limo hires you might want to consider.
- Airport transportation is usually where a limo service earns the most of its revenue. It really is the staple service for the industry. Unfortunately, this also means it offers the lowest profits. The funeral sector is another good choice. The price to pay here is a personal one as you will be surrounded by sad people all the time
- Transportation for weddings is a great niche and is workable. The only problem is they are usually on the weekends and you will have nothing to do during the week.
- Graduations and proms are considered the most profitable sector. They happen around the same time each year. It’s important to keep your Limousines occupied for the rest of the year too.
Don’t just stick to one niche. Your business will be doomed to fail right from the start if you do.
How deep are your pockets when starting?
Initially, you will have to invest anything between $45,000 and $150,000 to start up your limo business. This will be able to cover the purchase of limos, insurance, business cards, a website, etc. Your success here is going to be determined by the number of options and features you offer customers. You need to be able to satisfy the needs of your customers if you want them to use you again. As limos are priced per hour, it is important to consider your investment vs the return you plant to reap out of it. Sometimes it is a good idea to purchase a moderately or low priced limo as the industry is super competitive in terms of pricing.
Invest in the right kind of Marketing
Once everything has been setup, you will need to advertise your company. After all, if no one knows about your limo service, you aren’t going to get any bookings, are you? The internet is the best way of publicising your service.
Apart from this, you could also try networking with restaurants, club owners, wedding planners, etc. so that they include your limos in the packages they offer. This is a very lucrative way of marketing. And if you have a little money to spare, find a good marketing company that will create a custom strategy just for you.