Taxi Cab Company

Facts on starting and running a taxi service

Although it isn't easy to start a taxi business, it can be a very rewarding career. You'll be able to enjoy a social environment and you can control just how and when your business will operate. On the other hand, you're in charge of your own income, so the way you prepare your business, the way you implement your marketing strategy and how you choose to run the company will all affect your popularity and your profits. Take some tips for starting your taxi business and hit the road with a winning strategy that's bound to increase your chances of success.

How to Start a Taxi Business

To begin, you'll need the proper license to start a taxi business. Different states will have different licensing requirements for taxi drivers, and you'll need to contact your local Department of Motor Vehicles to find out exactly what will qualify you to drive a taxi cab. Of course, any other drivers you employ will also need this license; consult a local government website to find out who regulates taxis and issues the licenses in your area to get your business on the road as soon as possible.

A crucial part of small business planning is accounting for the startup costs, and they can add up quickly for a taxi service. You'll need at least one car or van, plus maintenance fees and adequate car insurance that will cover your car and your passengers. If you choose to remain the sole operator, your startup costs will be significantly less, but prepare to devote all your time and effort to keep your new business afloat. On the other hand, a fleet of vehicles will cost more at the outset, but could bring in more profits sooner.

Tips to Get Your Taxi Company off the Ground

Any new small business will need to conduct good market research, and this can prove difficult for a taxi service. A new taxi cab company can meet with stiff competition, and many taxi drivers will get defensive when a new driver or company enters their market. In order to evaluate the market conditions and bring to light any elements you may have missed, visit taxi companies in another town that are willing to offer some advice. There's a better chance that they'll answer your questions if there's no threat of competition.

While a centralized dispatch is not necessary, a hotline is a good idea for any taxi company. Not only will this free you up to drive, perform administrative tasks and manage your fleet, it will make for better customer service: a dependable dispatcher will be the "voice" of your company, acting as an invaluable marketing and organizational tool. A professional and welcoming manner will go far in gaining repeat business and referrals.

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