7 Things Every
New Limo Operator Should Know
If
you want to be a happy and successful operator, it’s imperative to build a
strong foundation. The decisions made today will set the structure and
tone of your operation for years to come. If you’re opening a new
limousine business and want to get started on the right foot, take the
following advice to heart.
Be
Realistic
– This isn’t a glamorous business. It’s taking people to the airport,
comforting bereaved family members at funerals, cleaning-up teenagers puke, and
doing the same things day after day. If you want to start a limo business
because you had a great time in the back of a limo, think again. This is
a basic service business. Most outsiders assume its fun and games, but
it’s serious and requires a great deal of precision. It certainly has its
enjoyable moments, but at its core, it’s about transporting clients from point
A to point B in a safe and timely manner.
Market
First
– A classic mistake many operators make is to buy a dozen vehicles without a
day’s worth of marketing. These guys figure “if you build it, they will
come.” This is incredibly ill-conceived. Marketing should always
lead purchasing. Ideally, vehicles should be purchased based on the
results of your efforts. As you grow, excess runs can be farmed-out to
fellow operators and new vehicles can be bought when you have the runs to
support them.
Start
Small -
If you only read one thing in this post, please read this: DON’T BUY A BUNCH OF
BLING HUMMERS AND LIMO BUSES AND EXPECT TO TURN A PROFIT. These vehicles
should come after you’ve built brand identity and have a steady revenue
stream. Consider these limos icing on the cake. Ideally, a used
Town Car and a 120″ is all you need. As you learn the business and expand
your marketing, you can build the fleet.
When
Empire (the biggest limo company in New York) expanded in Los Angeles, it
didn’t start with a new fleet. It started with a handful of used
Town Cars and an old shuttle van. Considering it opened shop the day
before 9/11, this business decision likely saved the company.
Diversify – Niche marketing is
the buzzword of the day, but the limo business is a stratified industry.
In addition to traditional weddings and proms, you have funerals, airport
transfers, destination management, events, road shows, and secure
transportation. A fleet should operate 7 days a week.
It’s
fine to start with single-service retail gigs, but over time it’s important to
establish a variety of steady accounts that sustain business. Even if one
sector of the economy goes down, another will keep you afloat.
Hire
A Consultant
– If you don’t have extensive industry experience, hire a consultant.
Start-up capital may be limited, but a consultant will ultimately save you
money. An experienced consultant will offer advice on operations, fleet,
payroll, software, dispatch, chauffeurs, and marketing.
Recruit
Talent
– The industry doesn’t have a secret university pumping out fresh talent.
If you want great employees, recruit them, and then train them. First-rate
chauffeurs can be found at the airport. Look for the guys with a good
suit, neat sign, crisp look, confident demeanor, and a positive attitude.
Restaurants
and Hotels are other venues with service-oriented professionals. Since
service is 90% of the job, why not get someone that has 90% of the prerequisite
experience.
The
last group to consider is retired military and civil service personnel.
These guys are consummate professionals.
Never
Compete on Price
– If you compete on price alone, your business will suffer a slow death.
Cutting rates is a losing proposition because the gypsies will always go
lower. How do you compete against an operator without a license and
insurance? YOU DON’T. If you get down in the gutter, you’ll
sacrifice the future for short term profit. Most limousine companies go
under because their price structure doesn’t match their overhead.
Article
by: Maria
Working
happily with National Merchant Services
Happy
Processing!!!
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