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Doing a bit of business research
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By (user no longer on site) OP
over a year ago
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Hi all, just a quick bit of research for a friend.
He has asked if I would be interested in doing this with him, so thought I would put it out to the masses and see what people think.
A friend of mine is thinking of starting a "chauffeur" business. Nothing massively fancy to start off with, but catering for people who are maybe travelling on business and need to get to and from the airport and to and from meetings to hotels etc etc
I think he is thinking of something a little more than a taxi service, maybe something for a little more higher end clientele but not really looking for multi millionaires who will expect him to rock up in a Ferrari.
Sensible answers please
Thanks all |
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By (user no longer on site) OP
over a year ago
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Guys thank you for your honest and sensible responses.
He says he would probably go for something mid range, Beemer or Merc.
I think he wants to aim for mid market, people that don't want to do taxis but don't want to go full on executive. |
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By (user no longer on site)
over a year ago
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Competition is massive
Getting a key contract is adviseable rather than solely adhoc work
Running the venture with just 1 car can also prove difficult.
You spend all week doing nothing then ...what if two people want you at the same time ?
How will you charge ?
Money up front or on account ?
What insurances will you carry ?
How much will they cost ?
Is he an advanced driver ?
Who is marketing the business and to whom ?
Has he worked out his cost per mile ?
Just a few questions that sprung to mind but all areas you would need to consider |
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By (user no longer on site) OP
over a year ago
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"Does he have an idea of what he will charge ?
I know how much I pay when I am overseas."
I think this is what he needs to do research on. When he got a taxi to Heathrow recently it was 130 and very uncomfortable!
Plus he is also thinking that adding wifi to the car so people can still work |
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By (user no longer on site) OP
over a year ago
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"Competition is massive
Getting a key contract is adviseable rather than solely adhoc work
Running the venture with just 1 car can also prove difficult.
You spend all week doing nothing then ...what if two people want you at the same time ?
How will you charge ?
Money up front or on account ?
What insurances will you carry ?
How much will they cost ?
Is he an advanced driver ?
Who is marketing the business and to whom ?
Has he worked out his cost per mile ?
Just a few questions that sprung to mind but all areas you would need to consider "
That's great, thanks, these are all things I would be thinking! |
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By (user no longer on site)
over a year ago
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A friend of mine bought a people carrier for this kind of work.
Not too high on running costs but with an 'executive' interior and tinted windows plus the flexibility to carry 6 or 7 as opposed to 3 or 4
He picked up more work this way including a corporate account with a local football club.
As a result though his work became quite seasonal and he needed to supplement his income with other work - in his case temporary driving work through an agency.
That way, he could switch it on or off as required. |
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By *olgateMan
over a year ago
on the road to nowhere in particular |
heathrow is saturated with drivers waiting for that kind of work, the residents are going ballistic at the moment over drivers parking up outside their houses 24/7 dumping bottles of piss on the road and shitting in their gardens |
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By (user no longer on site)
over a year ago
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"heathrow is saturated with drivers waiting for that kind of work, the residents are going ballistic at the moment over drivers parking up outside their houses 24/7 dumping bottles of piss on the road and shitting in their gardens"
I thought that was pretty standard in Hounslow  |
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By *oxy_minxWoman
over a year ago
Scotland - Aberdeen |
You also need to consider that most companies that have large budgets have preferred suppliers, so personally in this day and age I don't think it will really take off!
Just my opinion of course |
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By (user no longer on site)
over a year ago
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OP : are you or your buddy in full-time employment at the moment ?
I certainly wouldn't give up a job to start this business.
If your buddy wants to, let him.
However, you have to consider many (most) companies take months if not years to build up a (returning) customer base.
In the interim, income can be irregular whilst leasing costs etc remain constant.
To get it off the ground he (or you) need to research your market locally, seek finance or have enough personal funds to run the business and provide yourselves a sustainable income.
I am always refreshed to see 'enterprise' but am always saddened by those that don't do the leg work and fall on their arses with a shed load of debts they can ill afford to pay.
As a sole trader you would stand these debts personally. Only as a limited company would you limit any debts to the business.
Setting up a limited business is easy, getting a business bank account with a loan or overdraft facilities, not so.
I've papped on enough now.
Good Luck in whatever you decide  |
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By (user no longer on site) OP
over a year ago
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"A friend of mine bought a people carrier for this kind of work.
Not too high on running costs but with an 'executive' interior and tinted windows plus the flexibility to carry 6 or 7 as opposed to 3 or 4
He picked up more work this way including a corporate account with a local football club.
As a result though his work became quite seasonal and he needed to supplement his income with other work - in his case temporary driving work through an agency.
That way, he could switch it on or off as required."
That's sounds like a great idea. I really hadn't thought of that, maybe something executive ish!
A contract would be a huge advantage. Supplement wise he is looking to buy a business which would net him around 20k (gp) per year with very little work needed |
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By *olgateMan
over a year ago
on the road to nowhere in particular |
"heathrow is saturated with drivers waiting for that kind of work, the residents are going ballistic at the moment over drivers parking up outside their houses 24/7 dumping bottles of piss on the road and shitting in their gardens
I thought that was pretty standard in Hounslow "
if you thought abfab had problems, its nothing like the trouble their neighbours get from uber drivers. someone is going to get badly hurt one day |
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By (user no longer on site) OP
over a year ago
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"OP : are you or your buddy in full-time employment at the moment ?
I certainly wouldn't give up a job to start this business.
If your buddy wants to, let him.
However, you have to consider many (most) companies take months if not years to build up a (returning) customer base.
In the interim, income can be irregular whilst leasing costs etc remain constant.
To get it off the ground he (or you) need to research your market locally, seek finance or have enough personal funds to run the business and provide yourselves a sustainable income.
I am always refreshed to see 'enterprise' but am always saddened by those that don't do the leg work and fall on their arses with a shed load of debts they can ill afford to pay.
As a sole trader you would stand these debts personally. Only as a limited company would you limit any debts to the business.
Setting up a limited business is easy, getting a business bank account with a loan or overdraft facilities, not so.
I've papped on enough now.
Good Luck in whatever you decide "
Both are, but both are driven to work for ourselves, providing better lives for the people we care for, kids etc etc
I appreciate your comments, I wouldn't jump into anything that hasn't had the leg work in at least finding some genuine interest and even a contract or two before it even really got going!
Thank you though, I didn't expect anything other than silly comments to be fair lol |
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By (user no longer on site)
over a year ago
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"A friend of mine bought a people carrier for this kind of work.
Not too high on running costs but with an 'executive' interior and tinted windows plus the flexibility to carry 6 or 7 as opposed to 3 or 4
He picked up more work this way including a corporate account with a local football club.
As a result though his work became quite seasonal and he needed to supplement his income with other work - in his case temporary driving work through an agency.
That way, he could switch it on or off as required.
That's sounds like a great idea. I really hadn't thought of that, maybe something executive ish!
A contract would be a huge advantage. Supplement wise he is looking to buy a business which would net him around 20k (gp) per year with very little work needed"
Think about it
20k pa
50 quid a job GP
That's 400 jobs a year
Or 1.1 jobs a day
That's the vehicle used EVERY day
Used 5 days a week, it's 1.5 jobs a day
Who is going to give you £50 a job every day ?
Would you need to run the vehicle day and night to make it pay ?
Would jobs therefore overlap ?
What is your plan if the vehicle breaks down, requires maintenance, has accident damage, has to be taken off the road because someone is sick in it or spills drink in it ?
Where does your money come from then ?
I am honestly not trying to put you off - merely think of areas that may trip you up unless considered beforehand.
As for the silly comments, you're lucky : I've used up all my shit joke tokens on other threads today |
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By (user no longer on site)
over a year ago
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Being In the passenger transport trade, I can say it's not as easy as everyone thinks.
There's public liability insurance (£10 million) and also business insurance, probably about £3.5 thousand for the first year.
Does your friend have a never ending pocket of money?
My minibus company has just started out,and I don't expect to make any profit for the next 18 months.... can he live out of his pocket for that long?
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It's a very saturated market and very dependent on location.
Most of those companies use Mercs, if he definitely wants to go into the business I'd pick something different like a Bentley Mulsanne but that's a lot of money to fork out - would be good for wedding work too though.
There might be more of a market for executive group travel (luxury people carriers) for families/friends who want to get to an airport/destination in one vehicle.
But it's not an industry I know very much about. |
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By (user no longer on site) OP
over a year ago
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"A friend of mine bought a people carrier for this kind of work.
Not too high on running costs but with an 'executive' interior and tinted windows plus the flexibility to carry 6 or 7 as opposed to 3 or 4
He picked up more work this way including a corporate account with a local football club.
As a result though his work became quite seasonal and he needed to supplement his income with other work - in his case temporary driving work through an agency.
That way, he could switch it on or off as required.
That's sounds like a great idea. I really hadn't thought of that, maybe something executive ish!
A contract would be a huge advantage. Supplement wise he is looking to buy a business which would net him around 20k (gp) per year with very little work needed
Think about it
20k pa
50 quid a job GP
That's 400 jobs a year
Or 1.1 jobs a day
That's the vehicle used EVERY day
Used 5 days a week, it's 1.5 jobs a day
Who is going to give you £50 a job every day ?
Would you need to run the vehicle day and night to make it pay ?
Would jobs therefore overlap ?
What is your plan if the vehicle breaks down, requires maintenance, has accident damage, has to be taken off the road because someone is sick in it or spills drink in it ?
Where does your money come from then ?
I am honestly not trying to put you off - merely think of areas that may trip you up unless considered beforehand.
As for the silly comments, you're lucky : I've used up all my shit joke tokens on other threads today "
The 20k is what would be coming from another business he is looking at, it virtually ticks itself over say the current owners with very little work. So this could be the supplement until he lands a few big contracts. Just a thought at the moment I think |
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By *oodmessMan
over a year ago
yumsville |
just to say; insurance is huge for taxis (as they are on the road 24/7 potentially) and the mot is a whole lot stricter than standard - getting a chauffeurs license will cost he will also possibly have to pass 'the knowledge' test? I wouldn't go buying any cars before the logistics of running it have been looked at. |
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By (user no longer on site)
over a year ago
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"A friend of mine bought a people carrier for this kind of work.
Not too high on running costs but with an 'executive' interior and tinted windows plus the flexibility to carry 6 or 7 as opposed to 3 or 4
He picked up more work this way including a corporate account with a local football club.
As a result though his work became quite seasonal and he needed to supplement his income with other work - in his case temporary driving work through an agency.
That way, he could switch it on or off as required.
That's sounds like a great idea. I really hadn't thought of that, maybe something executive ish!
A contract would be a huge advantage. Supplement wise he is looking to buy a business which would net him around 20k (gp) per year with very little work needed
Think about it
20k pa
50 quid a job GP
That's 400 jobs a year
Or 1.1 jobs a day
That's the vehicle used EVERY day
Used 5 days a week, it's 1.5 jobs a day
Who is going to give you £50 a job every day ?
Would you need to run the vehicle day and night to make it pay ?
Would jobs therefore overlap ?
What is your plan if the vehicle breaks down, requires maintenance, has accident damage, has to be taken off the road because someone is sick in it or spills drink in it ?
Where does your money come from then ?
I am honestly not trying to put you off - merely think of areas that may trip you up unless considered beforehand.
As for the silly comments, you're lucky : I've used up all my shit joke tokens on other threads today
The 20k is what would be coming from another business he is looking at, it virtually ticks itself over say the current owners with very little work. So this could be the supplement until he lands a few big contracts. Just a thought at the moment I think"
They would say that : they're trying to sell it |
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I think your friend needs to look at how the internet based uber type services have taken off and increased competition in the basic and higher end transportation markets. Uber does some form of limo type offer I think.
It's obviously a profitable market, en masse for both the internet co and individual drivers but limo type services do well when they have affiliations with regular business - such as hotels or businesses. Great if you can secure them. But they are wanted by the operators that don't have them.
Is there a new niche? A sector of the market not catered to by limo services, taxi companies with their range of vehicle offers as well as the aggressive entry of the likes of uber?
I often want to get to Heathrow etc but won't pay taxi fees for over 100 miles. I can imagine a market for people going long distance that needs some comfort but won't be willing to pay expensive limo type fees. It'll probably be met increasingly by uber type services, if it isn't already.
The friend's idea needs to tap into something overlooked already that won't be expensive to market into. Nor lucrative for uber type operators to smash imo. |
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By *imiUKMan
over a year ago
Hereford |
Loads of Taxi companies do this, using Mercs, mostly.
Personally, I think that the market is pretty saturated, and this means that you will need a very prominent usp if you are going to make a niche for yourself.
One car is pretty small potatoes - has he thought about his advertising?
Has he got his Hackney/private hire license? Bear in mind that he can't pick up from airports unless the fares are pre booked from within his licensing authority district, so unless he is looking at return fares, he'd need to get a hackney/private hire license within london...good luck with that. |
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Uber are a taxi firm that are in huge amounts of trouble, so yes and no is the answer to that one I think! 