With taxis feeling like such an institution, limousines seeming restricted to “special” people, and all the controversy around Uber and Lyft, the question of how to start a transportation business can feel inaccessible to many of us.
But, when you keep looking at it with a clear head, the answer to how to start a transportation business is largely the same as any other business. Below, you’ll find some general tips on starting any business, followed by a few transportation-specific pointers.
How to Start a Business
An early milestone for any founder of a company is getting a federal tax ID number. If you’re the sole proprietor of your business, this can be your social security number. But if you plan to hire even one person, you’ll want to get an Employer ID Number (EIN). To start a growing transportation business, you’ll probably want an EIN.
Once your company is “on the grid”, so to speak, with a federal tax ID, you’ll have to get a license to operate.
This will be the time to contact a transportation business insurer like OTTIS, if you haven’t already.
Starting a Taxi Transportation Business
A major advantage that bonafide taxi drivers have over ride-share drivers is that this is their career–that is, their driving expertise is assured, as opposed to a rideshare driver who doesn’t have very many tickets and is just looking to make some side-hustle money.
The startup costs are lower for a transportation business that provides taxi service than limousine service, at least if you are looking to own your vehicles Taxi cabs can be had for as little as $10,000 sometimes, and after buying your partition, taximeter and rooflight, you could get started for as little as $15,000, not counting licensing and insurance.
Starting a Limousine Transportation Business
If you’re looking into how to start a transportation business that provides limo service, there are a few other things to keep in mind. Unless you have an “in” with a high-income celebrity or business types, you’ll likely have to get started by serving the special-occasion market.
One nice feature of how to start a transportation business that provides limousine service is that you can lease your vehicle(s). This helps keep costs down in the short run and even lets you upgrade your vehicles every so often, which is a major help if you’re trying to break into the steadier-but-harder-to-crack business and celebrity market.
Transportation Business Insurance
Whatever approach you take, of course you’ll always need affordable, high-quality insurance. If the idea still seems far-off or inaccessible, it can help to at least make some calls and find out just what your startup costs will be. The longer you’re at it, the more realistic and down-to-earth it will feel that you really can learn how to start a transportation business. Contact OTTIS Services today to discuss your needs and get a free quote!