How to Start a Limousine Company
- 1). Write out a business plan. Check out the competition to determine the viability of starting another limousine company in your area. Clearly state the goals of your company, your target market and marketing plan; financial requirements and projections for the next three years; and operating procedures.
- 2). Seek funding to start your limousine company. Go to your local bank or financial institution and apply for a business loan. Ask the Small Business Administration for information on loans to small or minority business owners. Seek out investing groups or angel investors. Ask your family or close friends for financial assistance, making sure that there is a clear understanding of when and how you will pay them back.
- 3). Obtain all of the required licenses and permits. Go to your state and local licensing agencies to determine what licenses you are required to have in order to legally operate your business. Some states may require that you have a special "hack" or limousine license. If you plan to operate a limousine that has the capacity to carry 15 or more passengers, the Federal Motor Carrier Safety Administration will also require that you carry a commercial license with a passenger endorsement.
- 4). Protect your company with the correct insurance policies. Speak with an insurance broker regarding what insurance coverage is mandatory for running a limousine service. Use a broker that can also help you obtain the required insurance coverage for your limousine.
- 5). Purchase your limousine. Determine what type, size and how many limousines you want to purchase. When buying a used limousine, check that it is in good running condition and that it is under some form of warranty. Complete any inspection and registration requirements as indicated by your state's law.
- 6). Set up an office space. Depending on how you plan to operate your business, you will either need to secure an outside office space or create an at-home office. Check with your local zoning board to check the legality of having a home-based office. Pick an office space that will allow you to park your limousine. Purchase a computer, fax machine, printer and dedicated phone line.
- 7). Market your company to the public. Get the word out about your business by creating business cards and a company website. Pass out your business cards to everyone that you meet, and ask friends and family to help by referring you to friends and co-workers. Place ads in your local newspaper and direct your marketing efforts toward event planners, bridal salons, churches and funeral homes.
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