How To Start a Cab Service Business – Small Business Plan
Like most businesses, the business to set up a cab service business can be an expensive one to start with, requiring big investments on purchasing new cars and all. However, once set, it can give easy and lucrative returns without much of an effort. However, there are some pointers that must be borne in mind and followed for the successful running of this business.
To set up a business of this kind, you can initially start small by just a few cars and drivers, and gradually expand to more cars once the profits start pouring in. It must be ensured that the area where you plan to set up your office has sufficient demand for cars and has daily commuters.
In today’s competitive corporate and business world, with the number of job opportunities and new enterprises rising, the number of employees and, thereby, people using public transport have substantially gone up. However, many people find it inconvenient and troublesome to use public transport on a daily basis, especially when the distances to be traveled are long. A cab-sharing service comes in handy in situations like these, wherein up to four commuters can travel in the same car and share the cost of daily travel. It is not only convenient but can also be quite economical for passengers.
Handle Legal and Financial Issues with Care
Applying for business and driver’s licenses is a necessary prerequisite for the start-up. Also you must check with all local legal matters. Since this business involves costly infrastructure, getting insured would save you from unnecessary and unwanted financial loss. Another issue which should be handled before starting this business is to figure out your financial plan for it. Hire a financial consultant who can guide you through this. Financial consultants work with clients to develop individualized financial plans for savings, retirement, investments and insurance.
Know Your Market and Plan Your Resources Accordingly
A necessary research must also be conducted to find out about the competitors in the market and to know what rates these other providers offer. It must also be kept in mind that such service works best in metropolitan cities instead of small towns. Also, plan which cars are you buying according to the requirement. Whether you opt for small cars or SUVs, Diesel, petrol or CNG, choosing the right car will play a big role in your business. Selecting drivers can be especially challenging. Proper background verification must be conducted before finalizing. It must be ensured that the person has had proper experience in driving. Maintaining cordial behavior with customers is a must and should be properly inculcated in your business system.
Once the resources are obtained, the name of your cab service and contact information must be advertised in local newspapers so that enough people get to see it. Advertise through e-zines, classified ads, and blogs. This can also attract the attention of the customers to a great extent. You must also ensure to be on major networking sites such as Facebook, Twitter, YouTube etc. A great and clutter-free website will also add to your brand and increase sales.
Tip– During start-up, investment amount can be brought down by preferring a second hand vehicle (in good condition) over a new vehicle will help you in entering the profit mode much earlier. But don’t compromise on the condition of the car.
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