Taxi industry is another one that depends largely on disposable income. As a result, it took a huge hit when the economic downturn occurred.
However, as disposable income is expected to rise in the future, demand is expected to increase.
One threat to the growth of this industry is increased regulation and continued growth in gas prices. It is difficult to determine the future of this industry.
If you are considering entering this industry, be sure you possess a business license. Each of your drivers must also have a taxi driver's license.
One of the biggest initial challenges is finding an affordable insurance company. Some jurisdictions require large amounts of insurance, which make your premiums high. You may need up to three vehicles before insurers will work with you.
Be sure to have reliable communications radios in each vehicle. You should have a designated phone line for the dispatcher.
Be sure you go through a thorough hiring process for each of your drivers. You want people who posses a strong initiative and a high level of reliability. Experience is helpful, but not necessary.
Hire the right employees and you won't spend much time managing them. Instead, you can focus more closely on running your company.
Many employees are trained to drive and feel that's their only responsibility. Train yours to carry the passenger's bags and be friendly with customers. That will set you apart from the competition and help you develop a strong reputation.
Visit other cab companies in your locality. Understand what they are doing to get customers. Learn what you can do better or differently to provide value to your potential customers.
Once you've identified a location, or if you've purchased a taxi business for sale, market your company aggressively. Get listed in every online directory.
Hand out flyers with specials. Provide free transportation if there's a really special event coming to town. Target local celebrities and feature their testimonials on your website.
If you are considering selling a taxi business, it may not be a bad idea. Prices are decent, and the future is uncertain. If you are considering buying a taxi business, keep in mind that right now, it's a risk!
About the Author
This Wiki was written by Andy White, CEO of Biz Trader .