Are you contemplating a new business venture?
Are you looking for a business with one of the lowest startup costs possible?
While it is true that the list of business opportunities can seem endless, only a few projects offer almost guaranteed gains.
One of those very businesses is running a taxi service.
A taxi business can begin with a single vehicle or few, if you have the people and extra cash, which can expand as quickly as your profit builds. You could even start this business in your own home, and then perhaps move out to your own company office later on, once you have collected enough capital. Meaning, you could start a taxi firm with as little as £15,000.
If you are a beginner in the world of taxi business and you aspire to develop your own taxi service company, you can use these helpful steps as your trusty guide.
Put on your entrepreneur cap, suit up, straight and get ready for the ride of your life!
Research Your Market and your Competition
Each and every day, the number of taxi on the road gets larger. You can always expect ongoing competition in the taxi industry, in particular if your area is quite lively and densely populated. No matter what happens though, never fear. There are continuous ways to increase your chance of earning and surviving against the competition.
First and foremost is by knowing your industry inside out. You may just have the very best tool for winning if you study your competition closely, putting you at a distinct advantage. Always know your enemies; the answers are literally just at your fingertips. You can research on the web, and look at the websites of your local taxi service competitors. Check out their services and of course, their rates.
First you should learn if your area needs another taxi service. If the answer it yes, you could be more competitive by reducing your rates, providing special services such as airport transfers, or choose larger vehicles for group trips.
Buy your Vehicle and Other required Equipment
For most startup taxi businesses, buying vehicles tends to be the single biggest initial cost.
Typically, the average cost for a taxi vehicle is around £15,000. If you intend to begin on this venture with a restricted amount of money at your disposal, buying a £15,000 vehicle clearly will not work. Don’t worry though, you can scan the internet, or enquire at your local garage to find suitable used vehicles which cost less than £15,000.
However, if you would prefer to buy a brand new car, think about buying cars with the ability to spread payments or perhaps a lease option. Such methods allow you to own a brand new vehicle by only handing over a smaller amount up front in the form of a down payment, and then you will continue paying for monthly fees until you have cleared the finance or lease. Remember though that these vehicles come with added interest, which makes them a little pricier than their original cost if paid outright from the start, however it will likely ease the cash burden upfront and will mean your cashflow could be eased.
Once you have bought your vehicle, don’t forget that you swill till have a few things to add, to make it look like a taxi.
To make it look like an official taxi, you should put your logo and contact details on it by utilising decals.
You should also install your fare meters, install communication system and anything else you feel is required to make your taxi look the part.
These items will likely set you back around the £700 mark.
Get a License and Insurance
Officially start on your business venture by getting your business license.
You can apply through your local council for this. The cost is area dependent, however licenses tend to cost around £800.
You must also register your vehicle as a taxi, and seek out any required inspections. If you intend to drive your taxi yourself, you may choose to apply for a commercial driver’s license at your local training centre. Applying for full and comprehensive taxi insurance is also highly recommended. Check out your local regulatory agency first to ensure you are fully compliant with all legal requirements.
Some cities require a specific type and minimum value of insurance before allowing you at operate your taxi service. However, if your area doesn’t require such things, you can contact a specialist taxi insurance agent to talk through what type of insurance fits your needs. It may also be a good idea to ask other local taxi firms about where the best insurance rates are – however, with you being considered new competition, they may not be all too helpful!