Are you questioning whether to start your own limo business? Fortunately, the future of the industry is looking bright and shiny! In fact, the limo and town car service industry is predicted to grow substantially between 2019-2024.
However, there are certainly some challenges and negative aspects that you should consider carefully before dedicating your time and resources to starting a limo business. If you are thinking of starting a limo company, be sure to review the pros, cons and key start-up steps outlined below.
Limo Business: Good or Bad?
As with any business, there are pros and cons to starting your own limousine company.
- Generally more expensive vehicles and startup costs compared to starting a taxi business.
- The demand for services can be cyclical/seasonal, depending on your clientele. For example, corporate limo services might slow down around the holidays and the summer.
- Risk of more wild clientele and disorderly conduct (think teenagers headed to prom). This is one of many reasons why limo business insurance is so important– more on this in the section below.
- The chance to drive comfortable, luxury vehicles everyday.
- The opportunity to meet interesting clients from around the world.
- You can be an important part of your clients’ special events and happy memories.
- You can be your own boss and make your own schedule.
- Improvements to technology are making management and marketing of your services easier than ever.
- Many commercial insurance options are available to protect your investments and provide you with peace of mind.
- The exciting opportunity to run a lucrative and rewarding business!
First Steps: How to Start a Limo Business
Put simply, to start a limo business, you’ll need to do the following:
- Assess the market and the competition and make a thorough business plan.
- Purchase your vehicle(s) and any other equipment you’ll need. As technology in the industry continues to improve, you may want to consider investing in limo software to streamline reservation and dispatch processes.
- Get your licensing and registration in order, both for your business and your vehicle(s). Be sure to check the requirements of the state(s) where you’ll be doing business.
- Invest in high-quality, comprehensive limo insurance. This is absolutely crucial in order to protect your driver(s), vehicle(s), clients, business and reputation. If you’re unsure about what type of limo insurance you need, check out our guide to limo insurance: What Types of Limo Insurance Do You Need to Get?
Once these initial steps and investments are complete, you’ll be well on your way to start marketing your services and accepting customers!
Benefits of Owning Limo Company
Once you have your limo business up and running, you’ll experience the benefits of owning your own company and being your own boss, including a more flexible schedule. You’ll have the opportunity to meet interesting clients and play a role in special moments of their lives, such as weddings, birthday parties and other special events. Overall, with hard work, great customer service, and smart business choices, you’ll have the opportunity to run a financially lucrative and emotionally rewarding limo business.
Recap Limo Business: Good or Bad?
Overall, with the demand for limo services expected to rise and technological improvements making management easier and easier, there’s no time like the present to start your own limo business.
If you’re ready to take the plunge, make sure you set yourself up for success with the business limo insurance you need. If you have any questions about limo insurance or need recommendations, our specialized, experienced team at Oswald Taxi & Transportation Insurance Services is here to help. We offer competitive, low rates and excellent personal support for limousine, taxi and other transportation companies. To get started, request a free limo insurance quote today!