Are you thinking about beginning a new entrepreneurial venture?
Are you looking for a business with the lowest startup cost possible?
While it’s true that the list of business opportunities does seem never-ending, only a few projects allow sure gains.
One of Those Businesses Is a Taxi Service.
A taxi business can start from a few or a single vehicle, which can expand slowly as profit builds. You can even start this business from your home, and then subsequently move out to your own separate office after you have acquired enough capital. Meaning, you can possibly start a taxi service with just £15,000.
If you’re a beginner in the taxi business field and strive to create your own taxi service company, you can use these steps as your helpful guide.
Put on your entrepreneur hat, suit up, and get ready for the ride of your life!
Research Your Market and the On-Going Competition
Every day, the number of taxi units gets larger. You can expect continual competition in this industry ongoing, especially if your area is lively and highly populated. No matter what happens, never fret. There are ways to further your chances of surviving the competition.
First and foremost is by being experienced, and informed about your market. You can have the best weapons for succeeding if you study about the competition. Know your competitors; the answers are just at the tip of your fingers. You can research the internet, and look at the sites of your local taxi services. Check out their rates and services.
Discover if your area needs another taxi service. If yes, you can be competitive by reducing your rates, offering special services such as airport shuttles, or choose larger vehicles for group transportations.
Buy a Vehicle and Other Equipment
For most start-up taxi businesses, buying vehicles can be the biggest initial cost.
Typically, the average budget for a taxi unit is £15,000. If you’re planning to begin on this venture with a limited amount of money on hand, clearly buying £15,000 vehicles won’t work. Don’t worry, you can scour the net, or inquire at your local car stores to find used vehicles costing less than £15,000.
However, if you prefer brand new cars, consider buying vehicles that come with delayed payment options. Such systems let you own a brand new vehicle by initially putting down a particular amount of down payment, and then continue paying for monthly fees until you complete the total price. Interest is on top, which makes them pricier than their original cost when paid in full.
Once you’ve bought your vehicle, don’t forget that you still have some customisations to do.
To make it appear like an official cab, you must paint it with your logo.
You must also connect some top lights, install cab meters, provide forms of communication, put decals, and other details to make your taxi look original.
Such equipment may cost you around £700.
Obtain a License and Insurance
Officially begin on your business venture by obtaining a business license.
You can apply for a license from your city clerk’s office. The cost depends on your area, but typically licenses are valued at £800.
You must ensure you register your vehicle, and ask if there are any required inspections. If you’re intending to drive your taxi, you may apply for a commercial driver’s license at your local department of motor vehicles. Applying for full comprehensive insurance is also advised, check your local regulatory agency first to make sure you are in line with the law requirements.
Some states or cities require a specific type and minimum amount of insurance before allowing taxi services to operate. However, if your area doesn’t need such requirements, you can reach out to an insurance agent to talk about what kind of insurance fits your interest. You may also inquire with other local cab companies about where to get the best insurance rates.
Build Your Own Office
If you’re beginning with a small budget, you can proceed on your own taxi service at the comforts of your home.
This will not be a problem if you’re starting with a few or a single unit. If you have spare cash, you can look for a separate office with a garage. There are existing locations that you can avail for £2,000. Your office should have enough space for taxi storage, and a dispatcher’s office.
There are a lot of business plans you can find online which assist you in each stage of starting and managing your business. This business plan helps you as a guideline for how to structure, run, and grow your new business. You will need to include financial information and high-level growth plans if you plan to ask for financing in the future.
If you are intending on offering your service to the entire city, you may prefer choosing an office that is centrally located.
