How to Start a Limo Service: Your Step-By-Step Guide

Research and make certain you have a good marketplace for your limo service.

To do that, just open up your phone book and verify that there are limo businesses in your area, which is certainly always a good indication. Many novice business owners incorrectly believe that if there’s no competition in an area then it’s obviously a great idea to launch their own business in that area, but this is faulty thinking limousine car rentals.

You will immediately realize the reason there aren’t any limo companies in your area is because there’s not enough business in that area. You’ll be considerably better off opening your limo company where there are competitors and an established demand; maybe in areas where there’s a lot of entertainment companies.

Determine Your Niche.

Airport transportation is going to make up just about Sixty to Seventy Percent of your business’s income. Consider airport transportation the staple service of the limousine rental industry, even though it can generate the smallest profit margins by far.

The funeral sector, however, is additionally a very strong cash flow stream. It is possible to operate a great business enterprise simply by shuttling families to and from churches, funerals to home… although; you may pay a significant personal price by constantly being around sad, mournful people.

Transportation to and from Wedding ceremonies is a great niche and is essentially only workable (as a steady cash flow) on weekends, which makes it a source for additional cash for your new business. You can build a nice limo service working weddings.

The key to capitalizing on theses and other short-term limo rental needs is “bookings”. You must make sure your daily and weekly schedule remains full of bookings so that there’s never a moment where you’re wasting time/money hunting for clients.

Proms & graduations are classified as the largest component of the limousine rental niche for financial gain. Sadly, proms and graduations are only 2 months out of the year, but since they’re every year you can certainly plan ahead and build leads for potential customers for your limousine service in the months prior to those events. Get creative; establish deals where students or family groups can pay early into renting one of your limousines so that their financial burden is less when the time comes.

Celebrity & dignitaries is another lucrative niche you could target. Many VIPs love the idea of being “exclusive” and not having to share their unique perks with other people (not even other VIPs), so they’re willing to pay HUGE sums of money for exclusivity of service… with that said, it’s not easy to land these clients. To be successful in this niche it’s really about “who you know”, and also your people skills.

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