At the moment, there are more than 125,000 limo companies situated throughout the country. They employ almost 150,000 people and bring in about $6 billion annually.
This might lead you to believe that there isn’t room for yet another limo company in your city or town. But if you take a deep dive into the numbers, the limo industry as a whole is growing every year—and it’s creating lots of opportunities for new limo services to step into the space.
Do you want to open your own limo service? Learn how to start a limo business from the ground up before you get started.
Check out the steps you’ll need to take to do it below.
Start by Taking a Look at the Existing Limo Companies in Your Area
Before you begin trying to figure out how to start a limo business, it’s important for you to take a look at those companies that are going to be your competition in the coming months and years.
There’s a good chance that there are at least a few limo companies operating in your city or town right now. Evaluate each of them and see what they bring to the table.
Your goal is ultimately going to be to differentiate yourself from the pack and offer something unique with your limo company. But you won’t be able to do that until you know as much as you can about those companies that will soon be your competitors.
Figure Out What Will Set Your Limo Company Apart
Once you have a good idea of what other limo companies in your area are bringing to the table, you can begin to come up with ways to set your limo service apart. Search for services you can extend to your customers that will make your limo company different from all the rest.
If, for example, just about all of your potential competitors cater to the wedding and prom crowd, you might want to think about focusing on offering corporate limo service. Tapping into the corporate market could prove to be very lucrative for your new limo company.
Come Up With a Great Name for Your Limo Company
After you know the approach you’re going to take to make your limo company different from the other limo companies in your area, it’ll be time to generate a name for it. The name should help spell out what your limo company is going to be all about.
Sit down and write down as many business name options as you can. Brainstorm with family members and friends if you need a hand generating ideas.
From there, pick the name that you think will work best for your business. It should highlight what your company brings to the table while also sticking in people’s minds when they hear it.
Obtain the Limos You’ll Need to Get Your Company Off the Ground
You can’t run a successful limo service without—you guessed it—limos! You can offer the best limo services in the world, but without the right limos, people aren’t going to call on you for them.
At first, you don’t necessarily need to have a full fleet of limos at your beck and call. You can start off with one or two nice limos and then add more limos to your fleet over time.
But if you’re only going to have a couple of limos available, they need to be state-of-the-art limos. Otherwise, you’re going to have a tough time attracting new customers.
You also need licensed and experienced drivers behind the wheel of your limos. Whether that means driving your limos yourself or hiring local limo drivers, people need to be able to trust your company to provide safe and reliable transportation.
Think About How Much You’ll Charge for Your Limo Services
When you were checking out your competing limo companies earlier, did you happen to check out how much they charge for their services? If not, go back and see how much their services cost.
Then, use their prices to come up with the prices that you’re going to charge to your customers. Your prices should be competitive while still allowing your company to make a healthy profit each and every time you drive someone around.
On average, limo companies usually charge somewhere between $65 and $100 per hour for limo rentals. You should probably try to charge somewhere in that range when you’re first jumpstarting your limo company.
Set Up a Website for Your Limo Company
Amazingly, almost 50% of small businesses in the U.S. are still operating without a website. Many of these companies are missing out on a huge opportunity to bring in more customers by not setting up websites.
Don’t make this same mistake. Work with someone who knows web design and create a winning website for your limo service. It should include:
- Information about you and your business
- A long list of the limo services that your company offers
- Prices for the individual services that you can extend to customers
- Photos of the limos that you use as well as some basic info on the amenities inside of each one
- Contact info for your limo business
Once you have a website, you can start marketing your limo business to the masses. It won’t be long before people are browsing around on your site and getting in touch with you about utilizing your limo services.
Understand How to Start a Limo Business Before You Begin
It’s easy for those who are starting limo companies to get ahead of themselves. They start looking around at the limos they want to buy to run their companies before they scope out the competition or figure out what types of limo services they’re going to offer.
By learning how to start a limo business before you begin, you can put yourself into a better position and ensure your limo company gets off to a strong start. Be patient and take the right steps so that you give your limo company every opportunity to succeed.
Read our blog for more tips on starting a brand-new business.
