How To Start and Run a Limousine Business Successfully

Starting a limo business can be fairly simple if you have the right resources in place. Remaining in business, however, can be fairly challenging, if you are not prepared. A successful limousine business involves much more than just driving around town. It involves exceptional service, punctuality and great attention to detail.


Obviously, your limo business requires limousines. Still, before you go out and purchase a fleet, you have to determine how your limo business will operate. If you intend on subcontracting your business to another limo company that already has vehicles in place, you may not need any limousines. However, if you intend on securing limousines for your company, you should take great consideration into the transaction. Quality limousines are expected to be new and in pristine condition. You should purchase your limousines rather than leasing, to avoid mileage restrictions and fees. Your limousine selections should include a Lincoln Town Car and a 10-passenger stretch variety, as recommended by Bill Goerl, as these vehicles are commonly requested by clients.


Business insurance is essential for your limousine business, regardless of how it operates. For full protection, you should select a general business insurance policy, as well as a for-hire livery insurance policy. The general business insurance policy will cover your business in business contracts, liquor liabilities, business interruptions and workers compensation. The livery insurance provides specialized protection for your fleet of limousines. It also provides coverage for the drivers and passengers of your fleet, as well as protect for potential damages and injuries that may occur as a result of the driver’s fault. Livery insurance can difficult to secure and often take several months to put in place. Therefore, before your purchase your fleet, you should secure your insurance so that it is effective at the time of your limo purchase.


Getting any new business off the ground is a huge venture. Not only do you have the initial investment of all the supplies and equipment, but you also have all the marketing costs as well.  The only way you are going to get the reservations for your limousine business is by getting the word out that you are available to hire, and that can be a difficult proposition for many.

First off, you are going to want to advertise in your small local paper. Not only are these ad spaces relatively inexpensive, you also are targeting the very audience that you wish to contact, the ones primarily in your area.  By putting your ad in the paper you will make sure that it is seen by readers in your area, and therefore, your potential customers.

Secondly, use social media.  The internet is a wonderful tool and never more so than for a small business.  Set up a website and a Facebook page, and then promote them on your personal sites.  Ask your family and friends to do the same.  You can even further promote your business this way by giving a discount code to your Facebook or website followers.  This will encourage people to keep coming back to read the information that you have posted.

Finally, use the ultimate marketing tool, word of mouth.  Once you have a customer, treat them better than they can imagine.  They will tell their friends and their family. It is this way that you will grow your business in amazing ways.  Many of us want a reputable company to put our trust in, and where else are we going to find out about that than from a family member or close friend?

See Also : How To Maintain Your Limousine Car


Your limousine business will require a federal tax identification number, issued by the Internal Revenue Service. This number is required by the IRS to report tax payments and to complete your year-end tax filing for your limo business. If you intend on establishing credit and securing financing for your limo business, you will also require a DUNS number that is issued by Dun & Bradstreet. This unique number is used to by lenders and institutions to report your credit activity and payment history.


Your limo business will require a business banking account to process client payments and operation expenses. It is important that you have the ability to accept credit card payments, as this is the standard payment method in the industry. Credit card payments serve as guaranteed payments for your company and provide the client with protection, if services are disputed.


Parking is an aspect of the limo business that should not be forgotten. The success of your limo business is greatly dependent upon the perfect condition of your vehicles. Your limo storage should be spacious enough to park the vehicles without scratching or denting them. It is also ideal to store the limos in a garage or covered area to protect them from weather damage.


Many considerations come with a successful limousine business. Along with the aforementioned items, you should consider business tax deductions, state-specific livery regulations and customer service. Rather than wait until you find the need for these aspect, you should address them before they occur. A business mentor will experience in the limo business can serve as an excellent resource. If you do not have a mentor available, use SCORE’s free mentor services for guidance and assistance.

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See Also :

Amazing Limo vs Train Crash - See what happened to Limozin

How to wash your car without Water and Scratch

5 Ways to Reduce Noise in Diesel Cars

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