how to write a taxi service business plan

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Taxi Business Plan Sample

Published Mar.14, 2017

Updated Apr.24, 2024

By: Jakub Babkins

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Table of Content

Taxi business plan for starting your own business 

Are you looking for how to start taxi service ? If yes, then this taxi service business plan is all you need. The taxi service business can be a great choice if you have a good budget for buying and maintaining vehicles. Starting a taxi services business doesn’t require you to be an expert in the transportation field. The business can be started with just a few cars and drivers. Moreover, it can easily be expanded whenever you want. 

To start a business, it is important to follow a certain procedure. You need to draft a  transport business plan   for your taxi service business as the first step. For that, you can look at associated plans such as  tipper truck company business plan . If you also want to launch a mobile app to let your customers book a taxi online, you should also analyze  mobile apps business plan .

Executive Summary

2.1 about the business.

Grab A Cab will be a taxi service business owned by Benjamin Williams. The business will be based in San Francisco. The main aim of this taxi service business will be to provide trustworthy, well-timed, and safe cabs whenever and wherever someone needs them. Grab A Cab taxi service will provide cab services while integrating the operations with technology to facilitate individuals even more.

2.2 Management of Taxi business

After you have learned how to start a taxi service, it is important to figure out how to manage the taxi business operations successfully. There is no better way to plan out every aspect of your taxi service than developing a  business plan for taxi service pdf . To know how what your business plan should include, you can read the strategic plan provided here. In this taxi business plan example, we will guide you about all the components of a strong business plan so that you can develop your call taxi business plan.

It is better to hire business planning services to get a professional business plan for your startup. However, if you have the business knowledge and you want to create the business plan on your own, you can do so after doing adequate research. In that case, it is recommended to also go through a logistics company business plan .

2.3 Customers of Taxi business

Through our market survey and feasibility studies, we identified those customers that are most likely to benefit from our services. The recurring customers of the taxi service business will be:

• Schools 
• Event planners
• Retirement and care homes
• Hotel and airport transfers

2.4 Business Target

The main goal of our taxi service business is to become the most-liked transportation company in the San Francisco Metro Area within three years. We aim at doing so by continuously evaluating, monitoring, and following up on customer call-ins.

Company Summary

3.1 grab a cab owner.

Benjamin Williams will be the owner of Grab A Cab taxi service business. Williams completed his MBA two years ago. After that, he pursued a position as a manager in a noteworthy company. He was quite fascinated by the cab service in his state. After a few months, he left the post to fulfill his lifelong passion of starting his own taxi service business.  

3.2 Why Grab A Cab is being started

Benjamin Williams noticed that the other cab services businesses around him used traditional and outdated methods to serve their customers. He decided to use the latest technological features to bring innovation to the business domain.

3.3 How Grab A Cab business will be started

Step1: Plan Everything

Good planning is crucial when you are going to start a business. To ensure that you plan well for your startup, you should explore how to open a taxi company in the United States.

A business plan for taxi service can best aid in planning and managing a business. To write your taxi driver business plan, you can take help from this sample taxi business plan. You can also go through other examples like truck driving business plan to get an idea of what to include when planning for a startup.

Step2: Develop a Brand

The next step in starting up a taxi companyis to highlight your business and its unique offerings. This can be achieved by creating a brand around your business idea. This will include everything from your principles to your competitive advantages.

Step3: Establish Your Office 

The next important step is to establish your business. For this purpose, Benjamin Williams decided to buy a large parking space in the main San Francisco commercial area. He made sure that the place was spacious enough to park all his cabs. Moreover, he also got a workshop constructed inside that place to maintain and repair the cabs. In this way, he reduced the expense of sending damaged cabs to other workshops. 

Step4: Establish a Web Presence

Since we are living in the Information Age, it is necessary to establish a web presence to get known. Therefore, Williams decided to develop a website for the business and establish social media presence for marketing to attract a wider audience. 

Step5: Promote and Market

The last step is developing and executing an effective marketing plan to promote your services.

Services of taxi business 

Before setting up a taxi business, you need to decide on your business’s services. You may have a taxi business plan tempelate, but it might not have everything you need for your sample plan. 

You can follow this guide on how to open a taxi service to figure out what the market for the business looks like and what services are ideal to be included in your startup. 

The cost factor is necessary to keep in mind while considering your services, so you can develop a taxi service business plan startup costs pdf to keep an estimate. Since Williams started with various services, this format can be used to develop even a uber taxi business plan or an airport taxi business plan.

• Door-to-Door Taxi Service 

We will provide door-to-door taxi service to our customers as it is more convenient to use. Our capable drivers will pick up customers from their homes and drop them off directly at their destinations. Our customers will be able to book a cab through our mobile app or website.

• Wheelchair Accessible Cabs

Our specialized service will provide wheelchair user passengers with a ramp or a passenger lift to assist them with getting into the vehicle. This approach is used as it is far easier than transferring from a wheelchair to a car seat and dismantling the wheelchair for the journey. 

• Seniors on the Go

We’ll also provide our professional, skilled, and highly patient cab drivers to assist seniors with their chores. Our company will provide senior citizens taxicab coupon booklets to maximize senior citizens’ benefits. We will aim to provide maximum customer satisfaction. 

• Hourly Service

We will offer our clients affordable discounts that pay off in the long run with our hourly packages.

Marketing Analysis of Taxi business

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When starting a taxi service business, you should have an excellent understanding of your target market. You can gain this understanding by doing an extensive market analysis as a part of your taxi business plan sample. 

Your business plan for a taxi business should also analyze the price of similar services in the market. This data should be used to forecast the prices you will set for starting your own taxi business. 

If you don’t know how to open a taxi company, you can take help of this taxi cab business plan. A complete market analysis is necessary for running a taxi business. 

If you want to learn how to setup your own taxi business, then this business plan taxi service will be of great use. 

5.1 Market Trends

Taxi operations provide over 60 billion dollars a year to the general US economy. The industry employs 2,026,478 people. The growth rate of this industry has remained in step with the general growth of the country’s GDP. Management feels that by maintaining a local client base, the company can continue to generate revenues despite the current deleterious economic conditions in the United States.

5.2 Marketing Segmentation

The potential customers of Grab A Cab are divided into the following groups:

Business plan for investors

5.2.1 schools  .

Our primary customers will be the school students. They are expected to avail of our regular services to go to school, travel to sports matches or class trips. 

5.2.2 Event Planners

Our second target customer will be event planners. They need to organize events, and for this purpose, they have to travel to different places. They will utilize our cab service to get maximum comfort. Our cabs will pick them up from their pickup location and drop them at their destination. 

5.2.3 Retirement and Care Homes

This will be our third target group of customers. Our taxi company will provide services to people in retirement and care homes since they may no longer be confident to drive. Our wheelchair-assessable cabs are specially designed for these customers. 

5.2.4 Hotel and Airport Transfers

Lastly, our potential customers include families and individuals on holiday and business travels. These groups don’t typically mind paying a bit more for a solution that takes care of transportation in an all-in-one way. Therefore, we expect to earn a handsome amount from them.

5.3 Business Target

• To become the number one taxi service throughout San Francisco and adjoining areas. 
• The main target of our taxi service business is to pursue an aggressive marketing campaign and penetrate at least 75% of the market share.
• To earn a net profit margin of $50.5k per month by the end of the third year.

5.4 Product Pricing

Our business plan for transportation service ensures that our prices will be economical compared to our competitors. The prices are set at a minimum to get introduced to a wider audience from the very beginning.

Marketing Strategy of Taxi business

To open taxi business, you must develop the best business plan for a taxi business. In addition, before starting up a taxi company, you also need to develop a strong marketing strategy to attract more customers.

In this taxi cab company business plan, we’re providing the sales strategy of Grab A Cab. You can learn a lot from here if you aspire to make a city taxi business plan.

6.1 Competitive Analysis

• We have quick customer care services. We respond to customer queries efficiently and respect their feedback to improve our services.
• We have excellent customer support staff that guides our customers in choosing the best traveling package according to their budget. 
• Through our 24/7 online presence, customers can inquire about our services. 
• We will also implement ideas from roadside assistance business plan to prevent any inconvenience to our customers. 

6.2 Sales Strategy

• We’ll advertise our services through social media platforms like Facebook and Instagram.
• We’ll give a free ride to our first 50 customers
• We’ll offer a 25% discount to school and college students.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan of taxi business

There are a lot of taxi services in the world. But only those are popular that make customers happy and satisfied. This taxi service business plan sample has all the details regarding the startup of the taxi service business. 

Understanding the importance of good staff, William included some essential features as a part of employee hiring criteria in the taxi cab advertising business plans. He also formed a list of employees necessary for running his business. This list can be seen in this taxi business plan pdf.

7.1 Company Staff

• 1 Operations Manager
• 1 Customer Support Officer
• 1 Marketing Officer
• 10 Drivers 
• 2 Mechanics
• 1 Web Developer to manage online sites

7.2 Average Salary of Employees

Financial plan of taxi business.

It is essential to manage your operations timely to earn profits. A detailed financial analysis is necessary to ensure that your business is not getting into a loss. To ensure that you make a detailed financial plan, you should include all the components that we have mentioned in this taxi business sample plan pdf.

The  taxi service business plan startup costs are also important for your financial plan. Moreover, in your financial plan, you must identify when and how you’ll cover your investment amount with the earned profits. This approach would also help to analyze your yearly expenses to determine the possibilities of reducing them.

Here we’re providing the detailed financial plan made for Grab A Cab so that you can get an idea of the business finances.

8.1 Important Assumptions

8.2 Break-even Analysis

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

  8.5 projected balance sheet, 8.6 business ratios.

• How do I start a taxi business?

To start a taxi business, you need to develop a good sample business plan for taxi service. The above business plan taxi company will detail how to do that.

• How does the taxi business work?

The taxi business works by purchasing some taxis, procuring a large parking area, and hiring staff to run and manage services. In this taxi top advertising business plan we have explained all these three aspects in detail. If you want to set up this business, you can take help from this taxi service business plan. 

• How would you describe a taxi service?

The taxi service provides transportation facilities to people without facing public transport problems. Business plan taxi provides details for setting up taxi business.

Download Taxi Business Plan Sample in pdf

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Back to All Business Ideas

How to Start a Taxi Business

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on March 3, 2022 Updated on May 23, 2024

Investment range

$3,250 - $7,400

Revenue potential

$47,000 - $275,000 p.a.

Time to build

0 – 3 months

Profit potential

$38,000 - $55,000 p.a.

Industry trend

Think taxis are a thing of the past? Think again! Rideshare services like Uber and Lyft have grabbed a large share of the market, but they have not made taxis obsolete. The US taxi industry is still worth $66 billion, so there’s money to be made. You can start your own taxi business as a solopreneur, and eventually grow into a full-fledged company with a fleet of cars and drivers. All you need is one car and a taxi license to get started. 

First, though, you’ll need to understand the ins and outs of starting and running a business. Luckily, this step-by-step guide will provide all the information and insights necessary to get you on the road to taxi cab entrepreneurship.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a taxi business has pros and cons to consider before deciding if it’s right for you. 

• Low Startup Costs – One car and you’re off to the races
• Flexibility – Pick your own hours, run the business from home
• Large Market – Demand for taxis is still high, particularly in large cities
• Tough Market – Compete with apps like Uber and Lyft
• Long Hours – To make money, you need to be a workhorse

Taxi industry trends

Industry size and growth.

• Industry size and past growth – The US taxi and limousine market is worth $66.6 billion in 2022 and has grown nearly 3% annually for the last five years.(( https://www.ibisworld.com/industry-statistics/market-size/taxi-limousine-services-united-states/ ))
• Growth forecast –  The global taxi industry is expected to grow an impressive 66% by 2026.(( https://www.mordorintelligence.com/industry-reports/taxi-market ))
• Number of businesses – In 2022, 2,568,140 taxi and limousine businesses were operating in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/taxi-limousine-services-united-states/ ))
• Number of people employed – In 2022, the US taxi and limousine industry employed 2,379,410 people.(( https://www.ibisworld.com/industry-statistics/employment/taxi-limousine-services-united-states/ ))

Trends and challenges

Trends in the taxi industry include:

• Customers are seeking apps to book taxis, so taxi services need to embrace this trend to be successful.
• Eco-friendly hybrid or all-electric taxis are also in demand. This presents a huge opportunity for an eco-friendly taxi business to differentiate itself.

Challenges in the taxi industry include:

• A continuous challenge in the taxi business is finding and keeping good drivers who provide excellent customer service.
• Rising fuel prices are cutting into the profit margins of taxi businesses.

Demand hotspots

• Most popular states – The most popular states for taxi drivers are Rhode Island, Connecticut, and New Hampshire.(( https://www.zippia.com/cab-driver-jobs/best-states/#rhode-island ))
• Least popular states – The least popular states for taxi drivers are Colorado, Utah, and Montana.

What kind of people work in taxi businesses?

• Gender – 23.5% of taxi drivers are female, while 73.3% are male.(( https://www.zippia.com/taxi-cab-driver-jobs/demographics/ ))
• Average level of education – The average taxi driver is high school educated.
• Average age – The average taxi driver in the US is 48 years old.

How much does it cost to start a taxi business?

Startup costs for a taxi business range from $3,200 to $7,400. Costs include a down payment on a vehicle and signage for the vehicle. You’ll also need to get a car for hire license from your city. In some cities, this can be a significant cost. For example, in New York City a taxi medallion costs about $80,000, while in Columbus, Ohio it only costs a few hundred dollars. 

How much can you earn from a taxi business?

Taxi fare rates vary by city but usually include a flat base charge, a charge per mile, and an hourly wait time rate. These calculations will assume that your average fare will be about $15. Your profit margin after fuel and insurance costs should be about 80%.

In your first year or two, you could work as a solopreneur and do 10 trips per day 6 days per week, bringing in $47,000 in annual revenue. This would mean nearly $38,000 in profit, assuming that 80% margin. As your brand gains recognition, you could have five taxis and hire drivers, and sales could climb to 50 trips per day 7 days per week. At this stage, you’d rent a commercial space and hire staff, reducing your profit margin to 20%. With annual revenue of almost $275,000, you’d make a tidy profit of more than $55,000.

What barriers to entry are there?

There are a few barriers to entry for a taxi business. Your biggest challenges will be:

• A clean driving record is required, and you may have to pass an exam
• Competition from other taxis plus apps like Uber and Lyft

Related Business Ideas

How to Start a Limo Business

How to Start a Roadside Assistance Business

How to Start a Rideshare Company

Step 2: hone your idea.

Now that you know what’s involved in starting a taxi business, it’s a good idea to hone your concept in preparation to enter a competitive market.

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research taxi businesses in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a limousine taxi service, or an electric taxi service.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as bike taxis in urban areas.

This could jumpstart your word-of-mouth marketing and attract clients right away.

What? Determine your services

You’ll need to determine what kind of taxi service you want to have. You could have a limousine taxi service, a black car taxi, a minibus taxi service, an eco-friendly taxi cab, a bike taxi, or even a water taxi. You also need to decide if you want to have a taxi booking app.

Who? Identify your target market

When determining the target market for your taxi business, it’s important to recognize that your audience will vary depending on the type of services you offer. For instance, tourists needing transportation from airports or hotels represent a different segment compared to those requiring event transportation or specialized services like taxis for the disabled.

It’s advisable to have a broad target market to cater to a wide range of needs. This approach allows you to maximize your customer base and adapt to various demands in the transportation industry.

Acquire vehicles for your taxi business

Starting a taxi business requires a reliable and efficient fleet of vehicles. Here’s how to make the best choices for your fleet:

1. Assess Your Needs:

• Capacity: Determine the size of the vehicle needed based on the typical number of passengers. Consider sedans for up to 4 passengers or minivans for larger groups.
• Fuel Efficiency: Choose vehicles with good mileage to minimize fuel costs, an important factor in your business’s profitability.
• Comfort: Opt for models that offer a comfortable ride, as this can significantly impact customer satisfaction.

2. New vs. Used Vehicles:

• New Vehicles: Offer the latest features and are less likely to require repairs, but are more expensive.
• Used Vehicles: More cost-effective but may have higher maintenance costs. Opt for certified pre-owned cars for better reliability.

3. Leasing vs. Purchasing:

• Leasing: Provides the option to upgrade vehicles regularly and avoids the depreciation cost, but may come with mileage limitations.
• Purchasing: Results in owning the asset outright, offering more control but requires a larger upfront investment.

4. Maintenance Plans:

• Consider maintenance costs in your budget. Regular maintenance is crucial for safety and prolonging the life of your vehicles.
• Establish relationships with trusted mechanics or consider service contracts with dealerships.

5. Regulatory Compliance:

• Ensure that the vehicles meet all local regulatory requirements, such as emissions standards and safety features.

6. Technology Integration:

• Install necessary technology such as GPS systems, fare meters, and card payment terminals.

How much should you charge for taxi fares?

Your fare rates will be dictated by the rates in your city. When you’re working by yourself, your costs will be limited to fuel and insurance. You should aim for a profit margin of 80%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Where? Choose a location for your vehicles

Selecting the right locations for both storing your taxi fleet and identifying hot spots for operation is crucial for the efficiency and profitability of your taxi business. Here’s how to approach these two aspects:

1. Storing Vehicles When Not Active

Centralized Garage or Parking Facility:

• Proximity: Choose a location central to your service area to minimize the time and fuel costs for vehicles to reach their first customers.
• Cost-Effectiveness: Look for affordable parking options to keep overhead low.
• Security: Ensure the area is secure to prevent theft and vandalism.
• Accessibility: Easy access for drivers, especially during shift changes.
• Maintenance Facilities: Nearby maintenance services are beneficial for quick repairs.

2. Identifying Hot Spots for Active Service

High-Demand Areas:

• Airports and Train Stations: Constant flow of travelers needing transportation.
• Business Districts: High demand during rush hours for commuting professionals.
• Tourist Attractions: Tourists frequently require taxis to explore the city.
• Entertainment and Nightlife Areas: Demand peaks during evenings and weekends.
• Hospitals and Medical Centers: Regular need for transport by patients and visitors.
• Shopping Centers and Malls: Popular destinations, especially during weekends and holidays.
• Residential Areas: Targeting suburbs can capture daily commuters and those without personal vehicles.
• Event Venues: Concerts, sports events, and conventions draw large crowds needing transportation.

Step 3: Brainstorm a Taxi Company Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “taxi” or “taxi service”, boosts SEO
• Name should allow for expansion, for ex: “RapidRide Cabs” over “Airport Cabs”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.

Find a Domain

Powered by GoDaddy.com

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Taxi Business Plan

Here are the key components of a business plan:

• Executive Summary: Provide a brief overview of your taxi business, highlighting its focus on reliable and efficient transportation services within a specific geographic area.
• Business Overview: Describe your taxi service, including the provision of on-demand transportation for individuals and groups in urban and suburban areas.
• Product and Services: Detail the transportation services offered, such as standard taxi rides, airport transfers, and potentially app-based ride-hailing options.
• Market Analysis: Evaluate the demand for taxi services in your area, taking into account factors like population density, public transportation availability, and peak travel times.
• Competitive Analysis: Compare your service to other local transportation options, focusing on your competitive advantages like quicker response times, customer service, or technological integration.
• Sales and Marketing: Outline your strategy for attracting customers, such as through local advertising, partnerships with businesses, or online platforms.
• Management Team: Highlight the experience and skills of your management team, especially in areas like transportation, logistics, and customer service.
• Operations Plan: Describe the operational process of your taxi service, including vehicle management, driver scheduling, and ride dispatching.
• Financial Plan: Provide an overview of the financial aspects, including start-up costs, pricing strategy, and revenue projections.
• Appendix: Include additional documents like vehicle maintenance records, driver training manuals, or market research data that support your business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to taxi businesses.

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your taxi business will shape your taxes, personal liability, and business registration requirements, so choose wisely.

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans : This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans : The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants : A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family : Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding : Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal : Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a taxi business. You might also try crowdfunding if you have an innovative concept.

Step 8: Apply for Taxi Business Licenses and Permits

Starting a taxi business requires obtaining a number of licenses and permits from local, state, and federal governments. You’ll need to get a car for hire license or taxi medallion from your city.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your taxi business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability : The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property : Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance : Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation : Provides compensation to employees injured on the job.
• Property : Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto : Protection for your company-owned vehicle.
• Professional liability : Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP) : This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.

 You may want to use industry-specific software, such as Cab Treasure , EverTransit , or TaxiMobility , to manage your bookings, dispatching, fares, and payments. 

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Developing a website and a mobile app is essential for a modern taxi business, serving as digital gateways for customers to access your services. A user-friendly website should provide clear information about your services, pricing, and contact details, along with an easy-to-use booking system. Complementing the website, a mobile app offers convenience for on-the-go customers, allowing them to book rides, track their taxi in real-time, and make secure payments. Both platforms should reflect your brand’s identity, be intuitive to navigate, and include features like fare calculators, customer reviews, and support options.

Launching a successful taxi business requires a robust marketing strategy that ensures visibility and customer engagement. Here are effective tactics to consider:

• Optimize for Local SEO: Ensure your website ranks high in local search results by incorporating relevant keywords, location-based content, and maintaining an up-to-date Google My Business profile.
• Get Listed in Local Directories: Register your business on local directories and review sites like Yelp, TripAdvisor, and Yellow Pages to increase your online presence and credibility.
• Leverage Social Media Marketing: Regularly post engaging content on platforms like Facebook, Instagram, and Twitter to connect with your community and offer promotions.
• Engage in Community Events: Participate in local events and sponsor community activities to build brand awareness and goodwill.
• Develop Partnerships: Collaborate with local businesses, hotels, and event organizers for mutual referral programs.
• Offer Promotions and Loyalty Programs: Introduce discounts for first-time users and loyalty rewards for frequent customers to encourage repeat business.
• Utilize Email Marketing: Send out newsletters and promotional offers to keep your audience informed and engaged.
• Invest in Vehicle Branding: Wrap your taxis with your business logo and contact information to serve as mobile billboards.
• Encourage Customer Reviews: Prompt customers to leave reviews online to build trust and attract new clients.
• Advertise in Local Media: Use local newspapers, radio stations, and community bulletin boards for targeted advertising.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your taxi business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your taxi business could be: 

• Eco-friendly taxi service – all-electric cars
• Bike taxis so you can see the sights of the city
• 24-hour limousines to travel in style anytime

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a taxi business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in taxis for years and can offer invaluable insight and industry connections.

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in taxis. You’ll probably generate new customers or find companies with which you could establish a partnership.

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a taxi business include:

• Taxi drivers – take fares, customer service
• Dispatcher – take bookings, dispatch drivers
• General Manager – staff management, accounting
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Taxi Business – Start Making Money!

A taxi business is probably one of the easiest kinds of businesses to start. You just need a vehicle, some signage, and a taxi license. You can make good money, even just working by yourself with one car, but you can also grow your company until you have a fleet of taxis. 

Taxis are an industry worth over $60 billion, so why not grab a share of that fare? You understand the business side of things now, so go ahead and get on the road to entrepreneurial success! 

• Taxi Business FAQs

Yes! Believe it or not, the taxi industry is still worth over $60 billion in spite of competition from ride-sharing apps. If you market yourself well and provide great customer service, you can definitely make money with a taxi business.

For a taxi business, you can use various types of vehicles depending on your target market and local regulations. Common options include sedans, minivans, SUVs, or even specialized vehicles for specific purposes like wheelchair-accessible taxis.

First and foremost, reliability is crucial. Ensuring that taxis are available promptly and operate on time is essential. Excellent customer service, including courteous and knowledgeable drivers, clean and well-maintained vehicles, transparent and fair pricing, and easy booking and payment options, also play a significant role.

To ensure the safety and comfort of passengers in your taxis, prioritize regular maintenance and inspections of your vehicles to ensure they are in good working condition. Implement safety features such as functioning seatbelts, GPS tracking systems, and security cameras. Train your drivers in defensive driving techniques, customer service, and safety protocols. Keep the interior of the taxis clean and comfortable, with adequate legroom and temperature control options.

Utilize online platforms and mobile apps to make booking convenient and accessible for passengers. Offer competitive pricing, promotions, or loyalty programs to incentivize repeat business. Partner with local businesses, hotels, or airports to establish referral networks. 

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Taxi Company Name
• Create a Taxi Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Taxi Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Taxi Business - Start Making Money!

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• Business Plan for Taxi Company

Business plan for taxi service

• how will you stay ahead of your competitors;
• how will you meet the needs of potential customers;
• how you will attract employees.

5 Important steps for developing a taxi business plan

• Define the business concept.
• Do a competitor analysis.
• Calculate the market capacity in your city.
• Calculate the costs of starting a business.
• Calculate the payback period of investments.

Step 1. Define the business concept

Step 2. do a competitor analysis.

• how much the services cost;
• how fast the vehicle is served;
• what vehicle are in the fleet: make, appearance, year of manufacture;
• how professional and polite the drivers are;
• whether the drivers like their working conditions;
• how customers are attracted;
• what channels are used to advertise services.

Step 3. Calculate the market capacity in your city

Step 4. calculate the cost of starting a business, step 5. calculate the expected profit and payback period, taxi business plan sample.

• We have been working in the taxi market for more than 20 years and have become real experts in our field.
• We help companies around the world to start a taxi business.
• We support customers at every stage of the launch.
• We regularly analyze the work of different companies and help them optimize processes.
• We implement technical solutions that allow our customers to automate their work and. successfully compete with major aggregators.

Taxi business plan sample pdf

• Description of the taxi company's business model;
• Calculation of the market capacity;
• Calculation of the initial costs;
• List of the initial expenses;
• Calculation of the return on investment and payback period;
• Information on how to attract customers;
• Information on how to attract drivers;
• Information about the automation of business processes in a start-up company.

Taxi business plan xls

Get a working taxi business plan template from taxi master.

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• Ride-hailing apps
• Case studies

Starting a taxi business: guide for beginners in 2024

• Growth hacks

What do you need to start a taxi business in 2024?

Entrepreneurship is more than just having a brilliant idea. It’s also about making this idea work for you (and, needless to say, for your customers) sustainably, year after year. Setting up a taxi business is no different.

What do you need to start a taxi business that will change the future of transportation in your region? Here’s the guide on how to start a taxi company in 7 steps. Check all the boxes and make sure you’ve got it all.

Start with your taxi service business plan

Setting up a taxi business begins with a taxi service business plan—and that’s one hard pill to swallow for many aspiring entrepreneurs. We’ve broken the chunky concept of a business plan down to basic questions to make the planning easier for you.

• Who are the customers of your cab business? Why will they use your services? Define the business opportunities of0 your future taxi cab company, the services it will provide, and its target audience.
• What’s the price segment of your taxi business? What will trips cost for different service types, locations, types of bookings, etc.? Knowing this is essential for planning your taxi business’s financial perspectives.
• What’s the market for your services? Market research and analysis are crucial to understanding your competition and defining your cab business’s unique selling proposition.
• How will you promote the company? Knowing who your potential customers are will make it easier for you to find out how to reach out to these people efficiently. Answering this question is a great starting point for the future marketing plan of your cab business.
• What resources (financial and human) do you need to start a taxi service? Financial planning is paramount: it allows you to evaluate various options for funding a private taxi company.
• What are the potential critical risks and challenges? Two years into the pandemic, we know one thing for sure: try to think through even the unthinkable risks—it’s the only way to make your taxi service business plan strong.

Your first step in creating a sound taxi service business plan is to give clear answers to all of these questions. A business plan makes pitching to potential investors, accelerators, and business partners easier and more convincing.

Need more assistance with it? Use this template  to write a taxi service business plan.

Figure out the business model for your taxi cab company

It’s time to think through a well-functioning financial model!

For a cab business, rides are the main source of revenue. Start with calculating the average cost for a ride with your taxi company. In your calculation, include salaries, taxes, rent, and all other fixed and variable costs your taxi business might have. Add initial marketing and promotion expenses, fleet-related investments, and other costs. With this calculation, you can now see how much funds your company will need to launch.

For a taxi business, it’s normal to not be able to cover all the costs in the very beginning. To actually start making money, your cab business needs to grow a bit first. However, try and plan when your business can reach a breakeven. Consider factors like seasonality in your calculations.

Think of the software for your cab business

A plain taxi business is great for many places on Earth that need stable mobility services. However, it’s smart to think of scaling your cab business from the start. One of the best ways to make your taxi cab company scalable from the outset is to power it with a strong technical infrastructure.

So make an inventory of the must-have features for the software that can boost your taxi business. Some of these are:

• Passenger and driver applications for iOS and Android to attract more bookings and make drivers’ work easier.
• Possibility to preorder your services.
• Cashless payments for an impressive turnover on your private taxi company’s bank account.
• Automated business processes such as driver billing.
• Reports and statistics on your taxi business progress.
• Features facilitating business partnerships (Web App, referral programs, custom location names).
• Operation zones feature for easier management of rates and service types.

This isn’t the ultimate list: you decide which features are essential to let your cab business grow. Depending on your business plan, you can choose whether to order custom software development, use a white-label solution , or go for a franchise ride-hailing service.

Get your paperwork done

Now your plans are all ready, time to register your cab business and make it official.

Depending on your local regulations, get your employer papers, required licenses and permits, and all the needed insurance contracts. In some countries, the taxi business is very regulated. Find out what the relevant requirements are to not be stunned with unpleasant surprises later. Do your research as to what papers are required from your employees, too.

This is also the time to check and double-check all the obligations you have towards your business partners, investors, and stakeholders.

Do the fleet and hardware check

Taxi meters, a dispatch system, pieces of equipment such as rooflight—these are just some hardware instances you need to keep in mind to prepare your cab business ready to launch. Some of these hardware pieces can be effectively replaced by good software, such as taxi meters and dispatch installations.

For most new taxi cab companies, fleet is the largest initial investment. Depending on your business planning, you can purchase vehicles based on deferred payment options (paying monthly fees until the total is paid off); look for used vehicles; invest in brand-new electric cars or scooters—the possibilities are endless, really.

Vehicle branding  is important for young taxi cab companies, too: it allows your business to stand out and gain initial recognition. Keep in mind: your fleet should convey your brand message. For instance, selling “luxury rides” requires luxury vehicles, while “affordable rides” give you more freedom as to what vehicles to use and how to brand them. This thought brings us forward to the marketing part of the story.

Market your cab business professionally

To young cab businesses, marketing often seems a money-drainer. Nothing is less true. A marketing plan developed well and tailored to the available budget is the only way for a taxi cab company to survive beyond the launch.

Well-planned marketing campaigns help your private taxi company to get first loyal customers—so that later you can scale the user base with referral marketing, offline and online advertising.

You don’t need a whole team of in-house marketing specialists at the initial stages of starting your taxi business: for the sake of money-saving, you can outsource expertise . For instance, we at Onde offer branding and marketing assistance to our business partners at any stage of business development.

How to plan marketing activities for a new taxi business? First of all, do some customer development and find out what drives your target audience. Think of where you can reach your potential customers and how to get their attention. Then check out our tips for every budget  and pick ones that suit you most.

Dare to learn

As your taxi business develops, your team will learn more and more about the customers, their needs, and the local taxi industry. Gradually, your cab business will become better at responding to customers’ needs. You’ll discover new opportunities and maybe change the business model.

To do so, make sure there’s enough space for your team to learn from what is happening out there in the wild. Listen to the feedback from customers, employees, and business partners. A cab business plan is never cast in stone because growth requires flexibility. Starting a taxi business is more about rethinking the future than looking for a one-size-fits-all solution or trying to become “a local Uber.”

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Fueling Growth: How to Write a Business Plan for a Taxi Business

In the competitive landscape of transportation, starting a taxi business requires not only keen market insight but also a robust strategy to navigate the complexities of urban mobility. As a leading SaaS-based taxi app development company, we understand the intricacies involved in launching and sustaining a successful taxi enterprise. A well-crafted business plan is your roadmap to success, helping you to articulate your vision, attract investors, and streamline operations. Here’s how to write a comprehensive business plan that can fuel the growth of your taxi business.

This blog outlines the key elements of writing a business plan for a taxi business, emphasizing the importance of strategic planning in a competitive transportation landscape. It covers sections such as the executive summary, company description, services offered, market analysis, marketing and sales strategy, operations plan, and financial plan. The blog emphasizes understanding market dynamics, identifying niche opportunities, analyzing competitors, and leveraging technology for operational efficiency. It concludes by highlighting the significance of adaptability and continuous improvement, offering SaaS-based solutions to empower taxi businesses for success.

Steps: How to Write a Business Plan for a Taxi Business

Begin with a clear and compelling statement that defines your taxi business's purpose and objectives. What gaps in the market does your service address? How do you envision impacting the local transportation landscape?

Set specific, measurable goals for the first few years of operations. Whether it's capturing a certain market share, achieving a set revenue target, or expanding your fleet size, clear objectives will guide your business decisions.

Business Structure

Outline the legal structure of your business. Will it operate as a sole proprietorship, a partnership, or a corporation? Discuss the logistics of your operation, from your business headquarters to the number of vehicles in your fleet.

Market Niche

Identify your target market. Are you focusing on urban commuters, airport transportation, or luxury car services? Understanding your niche will help tailor your marketing strategies and service offerings.

Service Offerings

Detail the types of services you will offer. Will you provide on-demand rides, scheduled pickups, or both? Consider unique selling points that differentiate your services from competitors, such as environmentally friendly vehicles, premium amenities, or innovative booking options through your SaaS platform.

Market Analysis

Industry overview.

The taxi industry, integral to urban transit, is undergoing significant transformation influenced by technology and shifting consumer preferences. Current trends show a surge in ride-sharing platforms like Uber and Lyft, which offer enhanced flexibility and convenience. Traditional taxi companies are responding by integrating advanced technologies such as mobile app bookings and GPS tracking. Looking ahead, the industry is poised for growth, with innovations such as electric vehicles and potentially autonomous cars playing pivotal roles. Our business aims to capitalize on these trends by leveraging cutting-edge SaaS solutions to streamline operations, improve customer engagement, and provide competitive, technologically advanced services that anticipate and meet future demands.

Competitive Analysis

Analyze your main competitors – what are their strengths and weaknesses? Understanding what others are doing well can help you to differentiate your own service.

In conducting a competitive analysis for the taxi industry, it is crucial to identify both the traditional players and the disruptive newcomers that have reshaped market dynamics. Traditional taxi companies have long operated under city-regulated medallion systems, which restrict the number of cabs to control quality and pricing. These companies benefit from brand recognition and established customer trust but often lack flexibility and technological integration.

On the other hand, ride-sharing giants like Uber and Lyft dominate the modern landscape with their innovative business models that prioritize ease of use, scalability, and customer convenience. They offer app-based booking systems, dynamic pricing models, and extensive driver networks that provide rapid service across multiple regions.

Revolutionizing Urban Mobility: The Power of SaaS-Based Taxi App Development

Marketing and Sales Strategy

• Branding: How will your taxi business stand out? Whether it’s through superior customer service, innovative technology, or community involvement, define what makes your brand unique.
• Customer Engagement: Outline your strategies for attracting and retaining customers. This could include loyalty programs, promotional offers, or partnerships with local businesses.
• Sales Tactics: Detail how you will convert potential customers into recurring riders. Will you use online advertising, direct mail, local sponsorships, or all of the above?

Operations Plan

• Day-to-Day Operations: Describe the daily operations of your taxi business, including staffing requirements, vehicle maintenance, and customer service processes.
• Technology Use: Elaborate on how your SaaS-based app will enhance operational efficiency, such as through automated dispatch systems, real-time vehicle tracking, or data analytics for optimizing routes.

Financial Plan

• Start-up Costs: Clearly list the initial costs involved in starting your taxi business, including vehicle purchases, licensing fees, and marketing expenses.
• Revenue Streams: Outline how your business will make money. Besides standard fare charges, consider including details on tiered pricing models, corporate accounts, or event services.
• Projections: Provide financial projections for at least the first three to five years. This should include forecasted income statements, balance sheets, and cash flow statements.

In conclusion, crafting a detailed and well-considered business plan is fundamental to the success of any new taxi business endeavor. Writing a business plan for a taxi business is an essential step for entrepreneurs looking to make a mark in the transportation industry. By detailing every aspect of your business, from your operational strategy to your financial forecasts, you equip your venture with the necessary tools to navigate challenges and seize opportunities.

As you implement these strategies, keep in mind the importance of adaptability and continuous improvement in response to changing market dynamics and technological advancements. As your technology partner, our SaaS-based taxi app solutions are designed to empower your taxi business with the advanced tools needed to thrive in a digital-first world, ensuring that your journey from startup to industry leader is as smooth and successful as possible.

Ready to launch a taxi service with our Saas Based Taxi App Development Company ? Discover our UberApps Taxi App, inspired by Uber — your fastest route to owning a thriving taxi business.

Are you planning to build a taxi app? Automate your taxi business with our UBERApps taxi app.

Author's Bio

Vinay Jain is the Founder of UBERApps and brings over 10 years of entrepreneurial experience. His focus revolves around software & business development and customer satisfaction.

Ready to get started?

UBERApps - A fully customizable SAAS product, the best selling solution in the market.

How to Write a Taxi Business Plan [Sample Template]

By: Author Tony Martins Ajaero

If you live in South Africa, or if you have ever visited South Africa, you will agree that the taxi cab line of business is an avenue to make good money. This is because if you don’t own an automobile, transporting yourself from one part of town to another can be challenging especially if you like comfort.

So, as an investor who is looking for a business to do in South Africa, one of your best options is to start a taxi cab business. It is important to note that starting a standard taxi cab business with over a handful of taxis and drivers needs significant investment capital, solid planning, and attention to details in order to keep your business profitable.

The truth is that if you are serious about starting a standard taxi cab company in any part of the world, you are expected to have done your feasibility studies and market survey before committing your capital in the business. Above all, you would need a workable business plan if indeed you want to build a profitable taxi cab company. The taxi cab company business plan template below will help you to draft your business plan with little effort on your part.

A Sample Taxi Business Plan Template

1. industry overview.

A taxi cab company provides comfortable and private transportation via automobiles for passengers. Taxi services are not operated on regular schedules or routes like buses that usually pick several passengers along the road. A report released by SA National Taxi Council (Santaco), shows that there are more than 200,000 minibus taxis in South Africa and they generate on the average more than R90 billion every year. The exact figure cannot be clearly stated because the industry in South Africa is largely unregulated, with no set fare among taxis and routes.

On their part, Reuters puts the annual revenue in the industry at closer to R50 billion. Based on the former figure, each taxi makes an annual revenue of approximately R450,000. Assuming that the taxi is in operation every day of the year, bar Christmas, the average income stream for a taxi in SA is around R1,236 per day, or R37,500 per month.

A recent report released by SATaxi a to taxi finance company shows that the average taxi travels 6,500 kilometers per month, while the South African National Taxi council says that the taxi industry employs more than 600,000 people and transports 15 million commuters on a daily basis.

SATaxi also says that each taxi creates seven jobs related to the industry, but reports show that taxi owners lose between 35 percent and 50 percent of fares that are pocketed by drivers through the cash based system.

The Taxi Services industry has experienced remarkable growth in South Africa. The growth of the SA economy has directly benefited the industry as business expense accounts have grown and clients have been more willing to spend on small luxuries such as taxi rides. In addition, increased demand from corporate travelers, tourists and private households is expected to result in steady growth for this industry.

When it comes to advertising your taxi services company in South Africa, there shouldn’t be any limit to how far you can go. You could start with handbills and distribute them in cooperate organizations and public places. If you have cash you can place advert spots on Newspapers, TV and Radio, and if you don’t have enough cash, you can start with the worldwide web. As a matter of fact, the internet has become one of the cheapest and most potent advertising platforms.

Over and above, taxi cab services businesses all over the world are still enjoying good patronage particularly if they have comfortable taxis, professional drivers, if they are well positioned and if they know how to reach out to their target market.

2. Executive Summary

Robert Xhosa® Taxi Cab, Inc. is a standard taxi cab company that is registered under the Companies and Intellectual Property Registration Office (CIPRO), the Department of Labor and the Department of Transport in South Africa.

Our company will be based in Johannesburg – South Africa and we will cover cities like Pretoria with Sandton, Vereeniging, Vanderbijlpark, Germiston, Roodepoort, Centurion, Krugersdorp and Kempton Park, and Tambo International Airport and some of the other major cities within the metropolis. We chose to operate in these cities because we know that our services will be in high demand due to the demographic composition of Johannesburg.

We are equipped with some of the finest cab drivers and comfortable cars to service our clients irrespective of their social and financial status. Our services will involve taxi services, taxi leasing, luxury and corporate sedan services, stretch limousines and buses etc. Although our intention of starting Robert Xhosa® Taxi Cab, Inc. is to offer only the above stated services, but we will not close our doors to diversification as long as it does not affect our core services.

We at Robert Xhosa® Taxi Cab, Inc. are in the pursuit of excellence and financial success with uncompromising services which is why we decided to start our taxi cab business. We are quite optimistic that our values and quality of service offering will help us drive Robert Xhosa® Taxi Cab, Inc. to enviable heights and also help us attract the number of clients that will make the business highly profitable.

We will be dedicated to establishing good business relationships with our clients by giving them value for their money and reasons for them to hire our services again.

We are quite aware that in order to become the number one choice in our city, we must continue to deliver quality and highly reliable services and that is exactly what we will do. We are open to the use of latest technology in the taxi cab services line of business.

No doubt, our excellent customer service and the quality of services we offer will position us to always welcome repeated customers and handle massive deals from both government and corporate organizations.

Our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Robert Xhosa® Taxi Cab, Inc. is owned and managed by Robert Xhosa and his immediate family members. He studied Geography and Urban Planning from the University of Johannesburg, he is a member of South African National Taxi Council and he is well – equipped with the required qualifications and experience to position Robert Xhosa® Taxi Cab, Inc. to favorable compete with leading taxicab brands in South Africa.

3. Our Products and Services

Robert Xhosa® Taxi Cab, Inc. is a standard taxi cab company that is positioned to make profit and favorable compete with leaders in the industry and we are going to do all that is permitted by the law of South Africa to achieve our business aims and ambition.

Our services offering are listed below;

• Taxi pick up services
• Providing limousine services
• Providing luxury sedan services
• Providing chauffeur and personal driver services

4. Our Mission and Vision Statement

• Our vision is to become the go – to taxi cab company in the whole of Johannesburg with active presence in key cities all around South Africa.
• Our mission as a standard taxi cab company is to develop a highly successful business that provides quality automobile transportation services in our city and to become a standard for the ideal taxi cab business not only in Johannesburg but throughout South Africa.

Our Business Structure

We are quite aware that the success of any business lies in the foundation on which the business is built on, which is why we have decided to build our taxi cab services company on the right business foundation.

We want to build a business of dedicated workforce that will go all the way to ensure that our customers are satisfied and they get value for their money. We are aware that it takes a business with the right employees and structure to achieve all what we have set to achieve, which is why we will be putting structures and processes in place that will help us deliver excellent services and run the business on auto pilot. The success of our taxi cab services company will be anchored on the team not on any individual.

With the wide range of our service offerings, we are only expected to employ more than is required to run a conventional taxi cab services business. Definitely, we will have various employees to man the various services offering of Robert Xhosa® Taxi Cab, Inc. .

Robert Xhosa® Taxi Cab, Inc. will employ professionals and highly skilled people to occupy the following position;

• Chief Executive Officer

IT Specialist

Admin and HR Manager

Marketing and Sales Executive

• Professional Drivers
• Customer Care Executive/Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Office:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions
• Creates, communicates and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Accountable for installation, repair and maintenance of GPS car tracking device for the organization
• Responsible for managing the e – ticketing aspect of the business
• In charge of choosing the GPC car tracker components and software to be used and specifying the requirements for the project
• Monitors all our taxi that are plying different routes
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Designs job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of relevant projects.
• Writes winning proposal documents, negotiate fees and rates in line with company policy
• Responsible for handling business research, marker surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluate new plans for expanding sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• creates reports from the information concerning the financial transactions recorded by the bookkeeper
• Prepares the income statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper.
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Professional Drivers 

• Drives taxi cabs et al as assigned by the management
• Maintains a logbook of their driving activities to ensure compliance with federal regulations governing rest and work periods for operators.
• Keeps a record of vehicle inspections and make sure the cab is equipped with safety equipment
• Inspects vehicles for mechanical and safety issues and perform preventative maintenance
• Complies with taxi driving rules and regulations as well as with company policies and procedures
• Reports defects, accidents or violations

Client Services Executive/Front Desk Officer

• Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s services, promotional campaigns etc. to ensure accurate information is supplied to clients
• Receives parcels/documents for the company
• Distribute mails in the organization
• Handles any other duties as assigned by the line manager

6. SWOT Analysis

A close study shows that taxi cab business is one of the many businesses that can easily generate sales with little stress as long as they are well positioned and equipped to carry out their services. We are building a standard taxi cab business with the intention of selling our franchise all across Africa which is why we have decided to subject our business to SWOT Analysis.

Ordinarily, we can successfully run a taxi cab service without the stress of writing a detailed business plan, but because we intend becoming leaders in this line of business, we don’t have any option other than to follow due process.

We hired the services of Mrs. Jacinta Zuma, a Business consultant with bias in startups to help us conduct SWOT analysis for our company and she did a pretty job for us. Here is a of the result we got from the SWOT analysis that was conducted on behalf of Robert Xhosa® Taxi Cab, Inc. .;

The strategic locations we intend covering, the Business model we will be operating on, ease of payment (e-Ticketing options), wide range of comfortable cars, highly trained and courteous drivers and of course our excellent customer service culture will definitely count as a strong strength for Robert Xhosa® Taxi Cab, Inc.

So also, we have a qualified team that can go all the way to give our clients value for their money; a team that are trained and equipped to pay attention to details.

A major weakness that may count against us is that we are a new taxi company and we don’t have the financial capacity to compete with multi – million dollar taxi cab companies that are already influencing the direction of the industry.

• Opportunities:

The fact that we are launching out in the heart of Johannesburg which is the largest city in South Africa, and is one of the 50 largest urban areas in the world, provides us with unlimited opportunities to market our services to a large number of corporate organizations, travel and tours agencies, hotels, government organizations and households.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they patronize our services; we are well positioned to take on the opportunities that will come our way.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power especially for luxury services like taxi cabs. Another threat that may likely confront us is the arrival of a new taxi cab company within same locations where we operate. Government policies can also pose a major threat to businesses such as ours.

7. MARKET ANALYSIS

• Market Trends

If you are conversant with the trends in the taxi industry in South Africa, you will notice the embrace of e-ticketing. The truth is that the taxi industry in South Africa has begun adopting e-ticket fare collection system, which will make commuters lives easier by not having to carry cash or worry about taxi drivers not having enough change for them. The e-ticketing project is expected to be expanded to other taxi routes, with the aim of completing a national rollout within five years.

In South Africa, the taxi e-ticketing system is owned and managed by FairPay and TaxiChoice – and the commercial arm of Santaco is currently the sole shareholder, with Curve Group Holdings as the primary technology partner. Chairman of TaxiChoice, Jothan Msibi, said the first phase – which is the JPM route – will enable commuters to load their FairPay cards via point of sale (POS) devices and kiosks at taxi ranks, though eventually these services will also be available in selected retail stores.

Aside from being able to process card payments, the equipment installed in taxis also contains a GPS device, and can act as a Wi-Fi hotspot, providing commuters with internet connectivity while they travel.

Technology has indeed played a major role in this industry; especially in cutting cost and enforcing safety and monitoring measures. There is hardly any taxi cab company that does not have GPS car tracker installed on all their cabs. It helps them in monitoring their fleets and also in planning and budgeting.

8. Our Target Market

Prior to choosing a location to launch our taxi company, we conducted our feasibility studies and market survey and we were able to identify those that will benefit greatly from our service offerings.

Those who will benefit from our service offering are households, corporate organizations, travel and tour agencies, hotels and government agencies. Below is a list of the people and organizations that our taxi cab services are designed for;

• Celebrities and public figures
• Even planners (limousine rental services for wedding and social functions)
• Travel and Tour Agencies
• Corporate Executives
• Business People

Our Competitive Advantage

The taxi cab business is easy to set up especially if you have the finance to acquire comfortable cars and the ability to run and manage a business. It means that the possibility of taxi cab business springing up in the location where our company is located is high. We are aware of this that is why we decided to come up with a business concept that will position us to become the leader in Johannesburg – South Africa.

We can confidently say that the strategic locations we intend covering, the Business model we will be operating on, ease of payment (e-ticketing options), free Wi-Fi services in all our taxis, wide range of highly reliable and comfortable cars, limousines and SUVs, highly trained and courteous drivers and of course our excellent customer service culture will definitely serve as competitive advantage for Robert Xhosa® Taxi Cab, Inc.

So also we have a qualified team that can go all the way to give our clients value for their money;. For the time being, Robert Xhosa® Taxi Cab, Inc. has no real competitors that can match the quality of services we offer and our business offerings. Our customer service will be customized to meet the needs of all our customers.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Robert Xhosa® Taxi Cab, Inc. is established with the aim of maximizing profits in the taxi cab services industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis.

We will ensure that we leverage on our strength and the opportunities available to us in South Africa market to generate enough income that will help us drive the business to stability. We will go all the way to explore every available sources of income in the Taxi cab services industry.

Below are the sources we intend exploring to generate income for Robert Xhosa® Taxi Cab, Inc. .;

10. Sales Forecast

One thing is certain, there would always be corporate organization and individual clients who would need the services of taxi cab companies.

We are well positioned to take on the available market in Johannesburg and we are quite optimistic that we will meet our set target of generating enough profits from our first six months of operation and grow our taxi cab services business and our clientele base.

We have been able to examine the taxi cab services market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Johannesburg – South Africa.

• First Fiscal Year: R200,000
• Second Fiscal Year: R550,000
• Third Fiscal Year: R950,000

N.B : This projection was done based on what is obtainable in the taxi cab industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within the same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

The marketing strategy for Robert Xhosa® Taxi Cab, Inc. is going to be driven by excellent customer service, honesty and quality service delivery. We will ensure that we build a loyal customer base. We want to drive sales via the output of our jobs and via referrals from our satisfied customers. We are quite aware of how satisfied customers drive business growth especially businesses like taxi cab services.

Robert Xhosa® Taxi Cab, Inc. is strategically located and we are going to maximize the opportunities that are available which is why we spent more to locate the business in a location that will be visible and enable us to access our target market.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to meet their targets and the overall goal of Robert Xhosa® Taxi Cab, Inc. Robert Xhosa® Taxi Cab, Inc. is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our taxi cab services business by sending introductory letters alongside our brochure to corporate organizations, travel and tour agencies, hotels, event planners, households and key stake holders all across Johannesburg, Pretoria with Sandton, Vereeniging, Vanderbijlpark, Germiston, Roodepoort, Centurion, Krugersdorp and Kempton Park, and Tambo International Airport and some of the other major cities within the metropolis
• Print out fliers and business cards and strategically drop them in offices, car parks, libraries, public facilities and train stations et al.
• Use friends and family to spread word about our business
• Post information about our company and the services we offer on bulletin boards in places like car parks, schools, libraries, and local coffee shops et al
• Place a small or classified advertisement in the newspaper, or local publication about our company and the services we offer
• Leverage on referral networks such as agencies that will attract clients who would need our services
• Advertise our taxi cab services company in relevant magazines, newspapers, TV, and radio stations.
• Attend relevant automobile expos, seminars, and business fairs et al to market our services
• Engage in direct marketing approach
• Encourage the use of Word of mouth marketing from loyal and satisfied clients
• Join local chambers of commerce and industry to market our product and services

11. Publicity and Advertising Strategy

Robert Xhosa® Taxi Cab, Inc. is set to establish a standard for Taxi cab businesses in Johannesburg and throughout South Africa which is why we will go all the way to adopt and apply best practices to promote our business. Good enough there is no hard and fast rules on how to advertise or promote a taxi cab business.

The challenge is that most small taxi cab companies do not have the required money to pump into publicity and advertising. The cash they have are usually reserved to take care of overhead and operational cost. Here are the platforms we intend leveraging on to promote and advertise Robert Xhosa® Taxi Cab, Inc;

• Encourage our loyal customers to help us use Word of Mouth mode of advertisement (referrals)
• Advertise our business in relevant magazines, local newspaper, local TV and radio stations
• Promote our business online via our official website
• List our business on local directories (yellow pages)
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like Instagram, Facebook, twitter, et al to promote our brand
• Install our billboards in strategic locations in and around Johannesburg
• Direct coupon mailing approach
• Engage in roadshows from time to time in target communities in and around Johannesburg
• Distribute our fliers and handbills in target areas in and around Johannesburg
• Advertise our company in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members and drivers wear our branded shirts and all our taxi are branded with our company logo

12. Our Pricing Strategy

Our pricing system is going to be based on what is obtainable in the taxi cab services line of business in Johannesburg – South Africa, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than our competitors are offering.

Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us or when they pay in advance for upward of 3 months. The prices of our services will be same as what is obtainable in the open market and it will be based on miles covered and time.

• Payment Options

The payment policy adopted by Robert Xhosa® Taxi Cab, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of South Africa.

Here are the payment options that Robert Xhosa® Taxi Cab, Inc. will make available to her clients;

• Payment with cash
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer

In view of the above, we have chosen banking platforms that will enable our clients make payments for our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our services.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget on achieving our aim of establishing a standard taxi cab company in Johannesburg – South Africa and here are the key areas where we will spend our startup capital;

• The total fee for incorporating the business in South Africa – Name reservation application costs R50 and company registration R125
• The budget for permits and license – R1,000
• The cost for hiring Consultant – R2,500.
• The cost for computer software apps (Accounting Software, Payroll Software, CRM Software, Microsoft Office) – R7,000
• The budget for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – R5,400.
• Cost for payment of rent for a suitable Office facility for 12 months at R1.76 per square feet in the total amount of – R65,600.
• The cost for Start-up inventory (fueling, car tracking devices and accessories) – R50,000
• The cost for office remodeling (construction of racks and shelves) – R7,000.
• The total cost for financing the acquisition of the first set of cars and limousines – R200,000
• The cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – R15,000
• Other start-up expenses including stationery ( R500 ) and phone and utility deposits ( R2,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – R30,000
• The cost of launching our official website – R600
• The cost for our grand opening party: R15,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – R5,000

Going by the report from the market research and feasibility studies conducted, we will need over three hundred and fifty thousand ( R350,000 ) South African Rand to successfully set up a small scale but standard taxi cab company in Johannesburg – South Africa.

Generating Startup Capital for Robert Xhosa® Taxi Cab, Inc. .

Robert Xhosa® Taxi Cab, Inc. is a business that will be owned and managed by Robert Xhosa and his immediate family members. They are the sole financiers of the business which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.

These are the areas we intend generating our startup capital;

• Generate part of the startup capital from personal savings and sale of stocks
• Generate part of the startup capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank

N.B: We have been able to generate about R100,000 ( Personal savings R80,000 and soft loan from family members R20,000 ) and we are at the final stages of obtaining a loan facility of R250,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.

One of our major goals of starting Robert Xhosa® Taxi Cab, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to offer our taxi services a little bit cheaper than what is obtainable in the open market. We are prepared to survive on low profit margins for a short time.

Robert Xhosa® Taxi Cab, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare is well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Acquiring facility with enough parking lots and remodeling the facility: In Progress
• Acquiring of cars and limousines: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the needed car tracker, e – ticketing devices, Wi – Fi devices, electronic appliances, office appliances etc: In progress
• Creating Official Website for the Company: Completed
• Creating Awareness for the business both online and in the neighborhood: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party/launching party planning: In Progress
• Establishing business relationship with key stakeholders in the industry: In Progress

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Transportation Business Plan Template

Written by Dave Lavinsky

Transportation Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their transportation businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a transportation business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Transportation Business Plan?

A business plan provides a snapshot of your transportation business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Transportation Business

If you’re looking to start a transportation business, or grow your existing transportation business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your transportation business in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Transportation Companies

With regards to funding, the main sources of funding for a transportation business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for transportation businesses.

Finish Your Business Plan Today!

How to write a business plan for a transportation company.

If you want to start a transportation business or expand your current one, you need a business plan. Below we detail what you should include in each section of your own business plan:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of transportation business you are operating and the status. For example, are you a startup, do you have a transportation business that you would like to grow, or are you operating transportation businesses in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the transportation industry. Discuss the type of transportation business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of transportation business you are operating.

For example, you might operate one of the following types of transportation businesses:

• Moving Van Transportation : this type of transportation company specializes in large vans or small fleet trucks to move individuals to a new home. Larger companies are able to move the family or individual to a different country.
• Medical Transportation: this type of transportation company specializes in the transportation of medical supplies and/or devices and equipment.
• Taxi Company: this type of transportation company focuses on individuals needing to get to different locations. These trips are often short and within the same city or neighborhood. Many individuals utilize taxi companies for pickup or dropoff from the airport.

In addition to explaining the type of transportation business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of clients served, number of positive reviews, reaching X amount of clients served, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the transportation industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the transportation industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section:

• How big is the transportation industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your transportation business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section must detail the customers you serve and/or expect to serve.

The following are examples of customer segments:individuals, seniors, families, and companies that need to transport their products.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of transportation business you operate. Clearly, companies would respond to different marketing promotions than individuals, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other transportation businesses. 

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes transportation companies such as limousines, bicycle services, car rental companies, etc.

With regards to direct competition, you want to describe the other transportation businesses with which you compete. Most likely, your direct competitors will be transportation businesses located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of vehicles do they operate?
• What areas do they serve?
• What type of transportation company are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Are your vehicles more fully-equipped than the competition?
• Will you provide transportation services that your competitors don’t offer?
• Will you provide faster delivery time?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a transportation company, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of transportation company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to transportation services, will you provide GPS tracking, 24/7/365 service, client communication, and any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your transportation company. Document your location and mention how the location will impact your success. For example, is your transportation business located near a warehouse district, an office complex, an urban setting, or a busy neighborhood, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your transportation marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Commercials
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your transportation business, including cleaning the vehicle, any necessary mechanical needs the vehicle may require, fueling the vehicle, and informing clients of location and status updates.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to obtain your XXth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your transportation business to a new location.  

Management Team

To demonstrate your transportation business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally you and/or your team members have direct experience in managing transportation businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a transportation business or is connected to a wide network of professional associations.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you take on one new client at a time or multiple new clients with multiple vehicles and drivers ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your transportation business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a transportation business:

• Cost of vehicles
• Cost of fuel and transportation overhead
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your vehicle lease or cost, types of customer you will be targeting, and the areas your transportation business will serve.  

Putting together a business plan for your transportation business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the transportation industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful transportation business.  

Transportation Business Plan FAQs

What is the easiest way to complete my transportation business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Transportation Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of transportation business you are operating and the status; for example, are you a startup, do you have a transportation business that you would like to grow, or are you operating a chain of transportation businesses?

Where Can I download a transport business plan pdf?

You can download the transport business plan pdf here. This is a business plan template you can use in PDF format for any type of transportation business.

Don’t you wish there was a faster, easier way to finish your Transportation business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan advisors can give you a winning business plan.

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How to Start a Transportation Business: The Ultimate Guide

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The transportation business touches far more of our lives than we notice. When you think of transportation businesses, you might think specifically about taxi companies or car rentals, but there are so many other options that you might not be considering. Any time you’ve rented a car, bike, or limousine you’ve interacted with a transportation business. There are also other businesses like shipping, transportation services for seniors, taxi services, and more.

If you’re wondering how to start a transportation business, first consider all of the possibilities. Our guide to starting a transportation business can help you define what a transportation business is and will go over everything you need to start a transportation business of your own. It takes a lot of planning, but you can successfully start a business if you’re ready to dedicate time to it.

How to start a transportation business in 8 steps

A transportation business is basically any business that has a hand in transporting people or goods. It can also have to do with providing transportation for other business owners who need help linking their product to their actual business.

These possibilities lead right into step one of how to start a transportation business: choosing the type of transportation business you want to start.

1. Choose the type of transportation business to start

As we mentioned above there are so many kinds of transportation businesses out there for you to choose from to start. You might consider what vehicles you already have at your disposal or what the market you plan to operate in is currently lacking.

Your options for transportation businesses to start include, but are not limited to:

Taxi company.

Senior transportation.

Limousine rentals.

Car rentals.

Bike rentals.

Moving van rental or moving company.

Medical transportation.

These are the basic types, but there are also emerging markets for things like scooter rentals, along with more traditional ones like school bus companies. You might already have an idea of which type of transportation business you want to start.

If not, though, a key part in your journey to starting a transportation business will be doing some research into which transportation type is most in-demand in your area. You can do this research by conducting a market survey, examining possible competition, or checking in with locals in the area you want to start your transportation business in. This will come in handy when it’s time to write up a business plan for your company.

2. Choose a name and entity for your transportation business

The entity you choose might influence your business name, so you might want to choose the entity first. For a transportation business, some entities might make more sense than others. A limited liability company or a limited liability partnership might be good due to the fact that it would shield the partners from personal liability.

Your options for business entities include:

Sole proprietorship : This is an unincorporated business that is owned by one person or owned by a married couple. This is the most common type of business entity in the United States, but it does leave you open to personal liability when it comes to debts and lawsuits, so it might not be best for a transportation business. If you choose to open your transportation business as a sole proprietorship, then the business will have your name as the business name, unless you file a DBA, or "doing business as."

Limited liability partnership: This partnership is an entity that protects the partners involved from personal liability and the debts and obligations of the business. They’re also shielded from the actions of other partners in the business. Limited liability partnerships differ from a general partnership where the partners manage the business equally and take on those liabilities and obligations equally as well.

Limited liability company: On the other hand, an LLC is a business entity that means owners aren’t personally liable for the business’s debts or obligations. They are a bit more flexible than the LLP option and the LLC can choose to be taxed as a corporation or not.

Once you choose your business entity, you also need to choose a business name when starting a transportation business. If you decide to start your business as a sole proprietorship you may need to get a DBA. This is a name your business uses when it operates under a name other than your own, or the name that the business is legally registered as.

In most states, you can look up businesses that are already in existence there, and see if the name you want for your business is available for you to use. Usually, the Secretary of State’s office will have a registry you can search. You can also check the U.S. Patent and Trademark Office. You’ll want to see if the domain name for your desired business name is also available before finalizing your name.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

3. Write a business plan

This step involves some of the heaviest legwork and the most research, but it’s how you’ll get a very clear vision of your new business. There’s a lot that goes into writing a business plan, but it will be well worth it once you’ve finished. A lot of the puzzle pieces surrounding how to start a transportation business will come together in this stage. The research you do for your business plan will help you prepare your transportation business for success, plus you can use it later on when you approach banks or investors about possible loans or investments into the business.

You can either come up with your business plan on your own or you can use a business plan template. No matter what you use to make your business plan, make sure it includes:

An overview of the business.

Market analysis.

Pricing plan.

Marketing plan.

Financial plan and projections.

Remember what we said about research? If you’re starting a transportation business, you need to make sure that there’s actually a demand for it before you start operations. If there’s no demand your business will not make it very long.

This research into demand is part of strong market analysis, along with research into what other businesses in the area are doing similar work and providing similar services. Through market analysis, you can identify pain points with competitors or gaps in the market, jumpstarting your success.

4. Register your transportation business and get an EIN

Now that you have the name chosen for your business, you have to register the business with that name so that it’s reserved. This is also when you’ll trademark the name if you need to, which can be done with the United States Patent and Trademark Office.

To register your transportation business, you’ll likely have to visit the website for the Secretary of State’s office in the state you plan to operate your business from. That site should lead you to the business bureau or the business agency in your state, where you’ll find information on the specific paperwork you’ll need to submit to them. While some states allow businesses to register online, not all do, so be sure to check whether your state requires you file paper documents with them.

Some of the documents you’re required to file may vary depending on the business entity you chose. Typically, you’ll need to submit a form for your business entity, pay a fee, and — in some cases — publish a notice in the local paper. You may also have to file paperwork with the town or county you wish to operate out of as well.

You’ll use your newly registered business name to apply for an employer identification number or EIN. This is one of the easier processes you’ll have to go through when starting a transportation business. There are many benefits to getting an EIN, like making it easier to file taxes, identity theft prevention and it can help you establish your business credit.

Applying online for an EIN is quick and simple. Usually, within a few minutes, you can get your EIN right from the IRS free of charge and then use that EIN to register to pay your federal and state taxes.

Start Your Dream Business

5. Get licenses and permits

When starting a transportation business, there are bound to be more business licenses and permits required than if you were opening something like a boutique or a coffee shop. When you open a transportation business you’re taking on responsibility for people or for the items you're transporting and the regulations around that can be more in-depth than they are for other things.

The SBA has a list of the issuing agencies for certain businesses that transport things via plane, ocean and more. For state licenses and permits, you have to check with your specific state and municipality. The registration requirements are highly dependent on the county your business will be operating in and its activities, according to the SBA.

For example, if you’ll be driving tractor trailers or other large vehicles, you’ll need a commercial driver’s license, as will any drivers you employee who will drive such vehicles, along with a commercial vehicle registration. These must be obtained through your home state. But there might be unforeseen registrations. The Department of Revenue in Kansas, for instance, has their own resource page for trucking companies , where they discuss requirements like a liquid-fuel carrier’s license, the International Fuel Tax Agreement and trip permits.

You might want to consult a lawyer in your specific industry to make sure you’re following all rules and regulations, that you’re completing the proper registrations, and that you’re getting the right licenses. They vary by state and by specific industry, so you want to be sure you’ve covered all your bases.

6. Open a business checking account and get a business credit card

A business checking account and a business credit card are the next step when it comes to how to start a transportation business. You want to have both of these things to help keep your business’s cash and credit completely separate from your personal finances.

Getting a business credit card can also act as a form of funding early on if you’re having a hard time getting a loan. Paying off your credit card on time — or early if you’re able to — can help boost your business credit and make you a better candidate for a loan when the time comes. Sometimes they even come with perks that can help your business. For example, there are some business credit cards, known as fuel cards, that are especially useful for truckers.

Having a business checking account as well can help you keep your finances separate and help you establish your credit further. Keeping your business money in and out of one account, that isn’t linked with your personal account, can be very helpful when it comes to things like filing taxes, applying for loans, or figuring out your monthly overhead, costs, and revenue.

The best checking account for your business will vary depending on your specific business needs and the type of transportation business you’re starting. For example, the best banks for truckers, who need a lot of flexibility, won’t necessarily be the best bank for a school bus operation that stays relatively local.

Some accounts, like the Chase business checking accounts, offer you a bonus when you sign up, and the ability to waive the monthly service fee. Other banks offer a high number of transactions per month if your business has a high volume of transactions or offer integrations with accounting software. Choosing the right one comes down to what your business needs and what type and how many transactions you’re processing.

7. Get any funding you need

Starting a transportation business isn’t a cheap venture. You’ll likely need to be investing in equipment, aka vehicles, for the business which can cost a lot up front, even if you decide to rent. These costs are inevitable and you’ll have to spend some money to start making money.

So you’ll probably be needing some financing as well. There are plenty of financing options luckily. As a small business that’s new, you might have a hard time finding lenders but that doesn’t mean you shouldn’t try.

There are grants, loans, funding and more available as startup funding to new business owners. You might even decide that your new business credit card can help you get started depending on your credit limit. Your other options for startup business loans include SBA microloans, small-business grants , family and friends, personal loans and crowdfunding.

8. Hire any employees you need

You’re probably going to need employees if you’re planning on transporting anything on any sort of scale other than small one-time trips that you can handle yourself. If so, you’ll have to find those employees and make sure they’re the right fit for your new business.

Some signs that it’s the right time to hire your first employee include having to turn down work because you can’t do it all on your own, never being able to take a break, and needing someone with skills that you don’t already have.

Once you know you definitely need to hire an employee, make sure you’ve got an EIN and your taxes are in order. Then you can move on to the part of hiring your first employee that involves writing the job description and interviewing and hiring candidates.

You should make sure your candidates have the training and the licenses they need to work for your business. You might also want to check their references to make sure they’re reliable and good employees and will be a valuable addition to your new business.

Don’t rush into hiring. If you don’t need any employees, don’t hire just because you think your business should be more than one person. You’ll be able to tell when the time is right and should take some time to vet candidates and make sure they have the correct skills before offering them a position.

Keep in mind that when you hire someone, you’ll also have to provide benefits, deal with payroll taxes, adjust your budget to reflect salaries and more.

On a similar note...

How to start a taxi or private hire firm

Written and reviewed by:.

Startups.co.uk is reader supported – we may earn a commission from our recommendations, at no extra cost to you and without impacting our editorial impartiality.

One of the most important first steps if you’re thinking about starting any business is to look at the industry challenges. In the taxi sector, the rapid increase in fuel costs, with petrol prices reaching a record-high of £2 per litre, has sent business overheads spiralling.

Innovations are emerging, however, that can help to fix this problem. Many green taxi companies are emerging that boast a fleet of electric vechicles. Plus, in an industry now defined by the disruptive antics of ride hailing and on-demand taxi apps, fuel-saving tools like vehicle tracking software have helped new companies to succeed where previous firms have failed.

According to the Department for Transport, England was home to 260,700 licensed taxis and private hire vehicles (PHVs) in 2022 – a rise of about 10,000 compared to 2021. If you’re wondering about how to start a taxi company – be that a hackney taxi or a private hire vehicle – then know that this still offers a viable business opportunity for the savvy entrepreneur.

Read on to find out more about the nitty gritty involved with getting started – such as the legislation required, projected costs – as well as tips on branding and marketing. By the end of our guide, you’ll know exactly how to set up a taxi service that can still drive custom in a cost of living crisis.

Traffic, routing and even (occasionally) customers can provide plenty of headaches for a new taxi company. Thankfully, one area which needn’t cause undue stress is creating a website to promote your business. Thanks to modern templates like the one below , you can create one of your owns in under an hour.

At Startups.co.uk, we test and rate website builder tools, and we’ve identified Wix as one of the best you can choose for creating a business site. Wix even has a selection of  custom website templates designed specifically for taxi firms  – you simply drop your own company information, wording and preferred imagery into your chosen template. Better still, it’s completely free to try for yourself.

Read on to find out more:

Become a taxi driver: tests, licensing and regulations, how to write a taxi service business plan, conduct market research for your taxi and private hire firm, financing your taxi or private hire business, pay the right tax for your business, get the right taxi insurance, concept, branding and design, taxi equipment, recruitment, promote your taxi business (and turn a profit), selling your taxi business, useful links.

At Startups.co.uk, we’re here to help small UK businesses to get started, grow and succeed. We have practical resources for helping new businesses get off the ground – you can use the tool below to get started today.

What Does Your Business Need Help With?

Before starting your own taxi company, you yourself must become a fully licenced driver. The process you’ll need to go through depends on where in the country you’ll be operating your business.

Outside of London, you must apply to your local council for a taxi or private hire vehicle licence. In London, TfL handles licences – taxi and private hire licences are processed separately.

To be eligible for a taxi or PHV licence in the UK (outside of London), you must:

• Apply to your local council
• Meet the eligibility criteria, e.g. right to work, driving licence, character checks

TfL handles applications in London . In order to be eligible to apply to drive either a taxi or private hire vehicle in London, you must:

• Be aged 18 or over (though you cannot be licensed until you are 21)
• Hold a full driving licence from the Driver and Vehicle Licensing Agency (DVLA), Northern Ireland, or another European Economic Area state
• Have the right to live and work in the UK
• Undertake an enhanced DBS check
• Depending on if you apply for a taxi or private hire licence, you may need to undergo a medical examination. Learn more about the exemptions for taxi licences and private hire licence
• Complete a topographical skills assessment (for private hire licences)

If driving a taxi in London, you’ll also need to pass the Knowledge of London . In order to pass this test, you must learn and memorise the streets landmarks that are within a six mile radius of Charing Cross – there are thousands of them!

TfL can either grant a licence for the whole of the Greater London area, or for one or more of London’s nine different suburban sectors.

For more information, take a look at our dedicated guide to taxi driver regulations .

Here, we explain the differences between black cabs and private hire vehicles.

Taxi service

Hackney carriages (taxis, black cabs) are able to pick up people off the street without a prior booking. Mostly found in urban areas, black cabs are highly regulated, with fares controlled by local councils and numbers restricted by many local authorities.

Drivers of black cabs are essentially self-employed, and have to go through rigorous checks and tests before they are awarded their license. Although some Hackney carriage drivers form co-operatives and switch their cars to saloons and other models, the majority of these taxi drivers can be found in their black cabs, trawling the streets for customers with their orange light on.

Private hire firm

Private hire vehicles (PHVs), or minicabs, must have a prior booking when picking up passengers. Usually linked by a radio circuit and operating out of similar types of cars that are branded in the same way, minicab owners face stiff penalties if they are found touting their business to random people on the street.

It is possible to mix fleets, with hackney carriages undertaking private hire tasks alongside standard minicabs. >However, remember that while it is possible for black cabs to be used for private hire, doing the same thing in reverse (i.e. using private hire vehicles as hackney carriages) is against the law.

If you’re planning to operate as a self-employed taxi driver, compiling a business plan might not be top of your priority list. However, it’s crucial to work out whether starting a taxi business will actually be a viable – and profitable – option for you.

Your business plan should answer the following questions:

• What type of service (i.e. taxi or private hire) will you be offering?
• What hours can you work?
• What equipment and other outgoings will you need to budget for?
• Will you start with, or work towards, operating a fleet?
• If you plan to operate a fleet, think about the balance between the extra costs and potential for additional income that comes with managing multiple cars

Make sure to draw up a thorough business plan, detailing:

• The market you’re entering
• Expected startup and ongoing costs (e.g. buying a cab, GPS software, radio equipment, and petrol – consider using fuel cards )
• Your potential earnings (how much will you charge for fares to ensure profitability?)

Download our free business plan template to help you get started.

Abi Hussain, transport manager at Cabzilla comments: “ The process of writing a business plan was an arduous one. We had many factors to consider, including our premises – where would we be based? Who would drive for us and where would we find them? 

“We also had to consider licensing costs and insurance, as well as completing a competitor analysis, a market analysis (which was vital in what was already a saturated market) and financial forecasting.”

Need help to keep your business plan on track?

With so many tasks involved with launching a taxi company, it’s important to find an effective way to track your progress. We recommend using project management tools.

If you’re working on your own or with other people, project management software is an excellent way to keep things moving. Assign tasks, create deadlines, outline projects and track progress from one platform.

Find out which project management software we recommend .

The average salary for taxi drivers in England is £496 per week , according to data published by Indeed .

Conducting extensive competitor research in your area will enable you to figure out where there’s a gap in the market for a new taxi service. This could be an under-served area of town, or a niche that has yet to be exploited by other taxi companies.

The internet has also given people a huge platform to air their grievances about however they think they’ve been wronged by a business or organisation. Use this to your advantage – look online at reviews of taxi businesses in your local area to see what complaints customers have, and think about how you could improve upon their service.

In addition, think about the area that you’ll operate in, how much you’ll charge passengers for trips, and the type of service that you’ll run.

Essentially, when researching the market for your taxi or private hire firm, you’re looking for gaps in the market. For example:

• Is there a rural area that’s currently under-served, and that could benefit from a focused service?
• How much competition is present in urban areas with high populations?
• How many rideshare users are in a certain area? Do Uber or other firms operate there?

What area will I operate in?

Where you live will tend to determine where you operate, so use your local knowledge to help identify business opportunities. For example, there could be a certain part of town that provides a steady stream of passengers. You could also identify areas that aren’t well-served by public transport, which could mean people in need of taxis. Similarly, big, out-of-town pubs and clubs could also offer the potential for plenty of customers.

Alternatively, consider setting up a taxi company away from where you live. Use your outsider’s perspective to see where a taxi service could be the most helpful. Be sure to spend time in potential areas, and look out for peak travel times.

How much should I charge passengers?

The amount you can charge passengers will depend on the type of service you offer (i.e. taxi or PHV), as well as your location. Taxi fares are regulated and set by local authorities, whereas PHVs are free to set their own prices.

Taxi fares in London

Below is a rough guide to taxi fares in London. A minimum fare of £3.20 is applicable at all times. 

Source: TfL

At the end of the trip, your passenger must pay the full fare displayed on the meter, unless otherwise agreed. 

As a taxi driver, you are obliged to accept any fare up to 12 miles in distance or one hour in duration, provided the end destination is within Greater London. 

The exception to this is if the passenger is picked up from Heathrow Airport, in which case you must accept a distance of 20 miles. Journeys that start from Heathrow Airport also incur an additional £2.80 charge.

If a passenger soils your taxi to the extent that you have to take it out of service for cleaning, you may charge the passenger up to £60 as a penalty.

For PHVs, fares are usually agreed on before the journey. PHVs are not subject to the same regulation as taxis, and do not need a fare meter or conform to fare tariffs set by the council. 

As a PHV driver, you are required to give an accurate fare estimate before the start of any journey with a passenger, or agree on a fixed fare. Fares are typically based on distance travelled.

What type of service will I offer?

According to data published by the Department for Transport, in its Taxi and Private Hire Vehicle Statistics, England: 2021 statistical release, i n 2021 , there were 58,300 licensed taxis in England and 192,700 PHVs – a 15.9 % decrease from 2020  (mainly due to the pandemic)

As of 2020, the average satisfaction rate for taxi passengers was 66%. However, rural areas experienced the lowest overall satisfaction, at 64%.

As the research shows, this underwhelming level of satisfaction in rural areas could make the case for improving the taxi offering, with a hyper-local taxi service in such locations.

In the end, it comes down to whatever’s convenient for you as a driver. Obviously moving location may not be feasible, but think about the different options below to see what might make the most sense.

Licences, cars, equipment – these are just some of the items you’ll need to budget for when running a taxi service. 

When you think about financing a business, you might consider using your savings, or borrowing money from family members. However, there are a number of alternatives available to you. For instance, you can consider comparing business loans , or using a specialist taxi provider to finance a vehicle. 

When you are up and running, you’ll need to manage your finances. Ideally, you should use a business bank account to manage earnings and outgoings for your business specifically. If you start a limited company, you must have a business bank account.

Certain expenses – like vehicle insurance, repairs, and fuel – can be claimed as allowable business expenses. 

You may be able to claim capital allowance if you buy a vehicle, depending on the type of accounting (i.e. traditional or cash-based) that is used. You may also be eligible to pay VAT.

As well as this, you’ll have to factor in emissions-based vehicle tax. The amount you pay depends on when the car was first registered, and the amount of emissions it creates.

Learn more on our dedicated taxi driver tax page.

As you’ll be spending more time on the road and carrying a procession of passengers, there’s an increased risk, and so you’re legally required to have taxi insurance. Generally, taxi insurance is more expensive than standard car insurance. 

A number of factors can contribute to how much taxi insurance you’ll need to pay. These include:

• Car size and insurance group
• Miles driven in a year
• Security devices
• Accessible features

Read our ‘how to get the right taxi insurance’ guide for more information.

If you’re already working as a taxi driver for another company but want to strike out on your own, use the information and expertise you’ve gained from this experience to create a taxi service that’s truly unique.

If you’re new to the sector, consider talking with experienced drivers and owners to better understand how the business works, and the aspects you’d need to think about when creating your own concept. 

How to name your taxi service

Whilst most self-employed drivers won’t need to be concerned with taxi business names, a private hire firm with multiple vehicles would certainly benefit from creating a strong brand.

If you’re in a small local area, this could be as simple as naming your taxi business after that location, which will also help it to be visible in online searches. Building a strong reputation as a reliable service will rely on consistent and obvious branding across your vehicles, as well as a minicab website so people can discover you online.

How to find your niche

The market is a competitive one – and finding some kind of niche that your service will cater to will be important if you want to stand out. Potential ideas could be:

• City centre 
• Suburban service
• Airport service
• School taxi
• Female-only drivers
• Eco-friendly vehicles

Ensure you meet the requirements for your particular service – for example, if you want to work with children, you’ll need an enhanced DBS check.

Taxi business for sale

Alternatively, if you’re interested in running an entire fleet of vehicles, look out for an existing minicab office that’s for sale, and think about purchasing a ready-made business.

Naturally, you’ll want to look at the business’ turnover and the reason why it is being sold, and make sure you actually have the sufficient capital to buy it. 

When setting up a private hire firm, note that nationally accepted regulations state you must identify an ‘operating centre’. To do this, you must apply for a private hire vehicle operator licence either for inside London or outside London , depending on your business.

If you are able to afford a physical premises for your taxi operating centre, make sure it is close to where your main customer base resides. Your operating centre should be easily accessible to customers who wish to walk in and make bookings, as well as call or book online. 

As trade is often brisk on Friday and Saturday nights, a private hire office in a town centre, close to restaurants, bars, and entertainment venues, will offer a prime location to attract late night revellers – as well as passing customers during the day. 

Have a look at other taxi offices in the area you want to operate in. Premises are usually small retail units, with enough office space for the dispatch/control team. You’re likely to start by renting a space, then once your business is more established, you might consider purchasing a unit.

Here, we take a look at the key pieces of kit you’ll need when starting your own taxi service. While a car is the most obvious thing you’ll need, you’ll also require taximeters for licenced taxis. We’ll also highlight how vehicle tracking solutions can benefit your business.

Card machines

The modern taxi driver can’t just rely on taking cash payments from passengers. As physical money continues to lose ground in the payments space, you’ll risk losing out on all kinds of fares if you don’t accept card payments. 

In fact, from October 2016, it has been a requirement for London taxis to accept card payments and provide printed receipts. So, if you’re planning on operating in the capital, you must install a TfL-approved card payment device in the passenger compartment.

You can learn more and compare your options in our guide to taxi card payment systems. 

Zettle by PayPal, previously known as iZettle, offers TFL-approved card readers and is popular with UK taxi drivers

Fleet management and vehicle tracking devices

There’s a lot to manage when operating a car for a taxi service. This includes how much fuel it’s using, its location, planning the best routes, and ensuring the car is being driven safely. This is true if you’re running one car, or one hundred. 

GPS is an essential part of effective taxi fleet management. A vehicle tracking solution brings a host of benefits for taxi fleets – it enables drivers to log jobs and receive directions, and allows fleet managers to manage vehicles and track driver behaviour including accelerating, braking and engine use. This in turn allows you to: 

• Improve customer response times
• Reduce fuel costs
• Reduce number of accidents
• Get accurate data
• Avoid congestion charges

Basic models include route planning and speed alerts. Meanwhile, more advanced models can provide highly accurate traffic information, intelligent route planning, and compatibility with Siri.

Autocab Taxi tracking

Autocab has more than 25 years of fleet management experience. Its Ghost Cloud Booking and Dispatch software offers the following features:

• Receive and dispatch multiple jobs in real-time
• Pay for the licence fee on a weekly basis
• Scalable system capacity
• Hosted on Microsoft Azure
• Anytime access via an internet connection

Prices are available from the Autocab sales team upon request.

Digital Dispatch

Digital Dispatch provides dispatch, booking, and fleet management software – as well as payments solutions – for small to very large fleets. This software includes the following solutions:

• Hosted, cloud-based system
• Automated features, e.g. regular bookings or future journeys
• Charged monthly
• Process card payments in vehicles
• Use a mobile data terminal or Android mobile device
• Dispatch, map, and track vehicles
• Designed for fleets of 100 to several thousand vehicles
• Cellular Public Data Networks (PDN) and Private Mobile Radio (PMR) are supported
• Ideal for use across multiple companies
• In-vehicle mobile data terminals are available 
• Reporting and statistics 
• Passengers can use self-service to book

MTData Taxi tracking Software

• Self-hosting or cloud-based solutions
• Web booking and call-taking software
• App for smartphone booking available
• Payment system
• Driver portal training
• SnapShot camera
• Taximeter integrates with dispatch and tracking system
• Management dashboard

Envoy Taxi Booking Dispatch & Management Systems

• All-in-one software – book, dispatch, and manage fleets 
• Cloud-hosted
• Pay-as-you-go pricing structure
• SMS confirmation of booking and taxi arrival
• Booking planner
• Auto and manual dispatch
• Reporting, accounting, and management 
• Driver apps available

Offering the ability to record the road in front of (and potentially behind) a vehicle, dashboard cameras are a useful addition to a taxi car. 

Dash cams can offer the following benefits:

• Protect drivers in case of an incident or insurance claim
• Promote careful driving
• Potential for discounted insurance

If you’re thinking about getting a dash cam, be sure to research the laws and rules regarding them. There are certain requirements that may have to be met, both for passengers and drivers. These include:

• All passengers should be informed when a dash cam is in use
• You must be parked and stationary to interact with a dash cam – it’s illegal to do so while driving
• It must be fixed behind the rear-view mirror so as not to obstruct your vision

Buying a black cab

The London Electric Vehicle Company (LEVC) – formerly the London Taxi Company – makes black cabs, which are some of the most recognisable vehicles in the world. As a taxi driver, you can drive a taxi made by the LEVC at its Coventry base. 

2017 saw the introduction of the new electric black cab, the TX, which is capable of driving purely on electric power. As of January 2018, all taxis that are presented for licencing need to have zero emissions. 

There is a rule stating that taxis must be less than 15 years old. This is in an attempt to remove diesel models from London’s roads by 2025.

TX taxi features:

• Available from £183 per week, or £70,473.40 total
• Space for six passengers
• Has a range of 377 miles

There are two types of warranty available: standard and extended.

You can view a full breakdown of costs on the LEVC’s taxi cost calculator page. As well as this, the LEVC offers driving tips for the TX to help ensure that you’re getting the most from the car.

You can also buy or rent a range of approved used taxis from the LEVC, With cars are available from £31,500. Although you can buy a used black cab from elsewhere, buying from LEVC will give you confidence that the vehicle has gone through stringent checks and has all the requisite features.

Paul Poulten, a self-employed black taxi driver, says that when looking for a black cab to buy, you should consider:

• Comfort – you’re going to be spending many hours of the day sitting in that driver’s seat, so make sure it’s a place you like sitting
• Hybrid engine – 2017 saw the introduction of the new electric black cab
• Build quality – give any vehicle a thorough inspection before buying. Check it’s passed its MOT, and enquire about any previous issues or repairs it may have had
• Accessibility for all – every licensed London taxi should be wheelchair accessible, and include:
• A swivel seat
• An intermediate step
• Grab handles
• Floor lighting
• A hearing aid induction loop
• Space for assistance dogs (at no extra charge)

Cars for PHVs

What makes a car a suitable PHV? Unlike a black cab, you could technically use any kind of car, but there are still a number of considerations you should bear in mind to make sure you’ve got the right vehicle for the job. Some boroughs and local councils also require taxis and PHVs to have a certain seat width or engine size.

The car will also obviously have to be deemed safe. Here’s what you should consider before choosing which car to use as your PHV:

• Reliability – choose a car that’s known to run smoothly with little maintenance, and slim chance of a breakdown
• Safety – the sheer amount of time you spend in a car increases your chances of being involved in an accident. Choose a car that’s been rigorously safety tested
• Cost – this depends on how much you have to spend, but it’s probably sensible to start with a pretty affordable car
• Number of seats – do you want to be able to transport eight people, or just three?
• Luggage space – if you’re likely to be picking up passengers with lots of luggage (such as from the airport), then boot space is a critical consideration. You don’t want to miss out on a fare because you don’t have enough space
• Manual or automatic – whilst manuals tend to be more efficient, if you’re going to be stopping and starting in traffic all day, an automatic will offer an easier and smoother experience
• Features – as a PHV driver, you are not required to do the Knowledge. This means that a sat-nav could be a good idea to ensure you can get from A to B in the quickest time possible
• Engine – your main considerations will be CO2 emissions (the lower these are, the less VED tax you’ll pay) and fuel economy

Remember: Under TfL rules, as of April 2019, diesel cars that do not meet the latest emissions standards will face a daily charge of £12.50 to drive in the centre of London, under the 24/7 Ultra-Low Emission Zone.

A taximeter is a crucial piece of kit. Mounted in the driver’s cab but visible to the passenger, it calculates and displays the fare as it increases over the distance travelled. 

TfL has some specifications for taximeters in London taxis, notably that it must:

• Display the units of fare in pounds sterling (£) and pence (p)
• Have display, markings, and instructions in English
• Be stored in a sealed, tamper-proof device

Taxi roof sign

If you want to be easily identified as a taxi, you’ll need to make it obvious with a roof sign, or bright eye-catching lettering (or even both).These roof-mounted units can now be used as digital advertising displays, helping the driver generate additional revenue and attract more attention. 

Verifone’s TfL-approved Digital Tops run ads in HD. They have built-in solar panels to supplement your taxi’s battery power, and the ads are updated using 3G wireless technology.

Depending on the setup of your taxi business, communication between your cars and your base is essential so you can discuss who’s attending to what fare at what time. If your fleet is using a radio system, you’ll need to get a licence from Ofcom . 

The Ofcom licensing centre issues operators with licenses to use radio equipment. You can apply directly to Ofcom either online or via post. 

If you want to find the perfect tracking solution for your business, simply complete our quick and easy quote comparison form . 

If you’re going to be operating a fleet, you’ll need to spend time hiring the right people to drive your vehicles. When hiring, you need to make sure your drivers:

• Have the relevant licences
• Are permitted to work in the UK
• Don’t have a criminal record
• Have completed the relevant medical and DBS checks

Failure to comply could land you or your employees in legal trouble. As with hiring any employee, a thorough background check of their employment history should flag up any potential problems.

Drivers will need to have the relevant driving licences, and to complete ‘The Knowledge’ for driving black taxis in London. Some local councils may require drivers to complete additional training. There are also training providers you could use for your drivers to ensure they drive to a high standard and follow best practice.

With several taxi firms jostling for supremacy in any one area, competition is inevitably high across the industry. New operators will often find themselves subjected to aggressive tactics by other firms, such as price undercutting. 

With hackney carriage price rates set by the council, private hire firms can operate a cheaper service, sometimes leading to a “them and us” animosity between the two sectors. However, there are a number of ways to promote your business, whatever type of service you offer.

Create a taxi business website

A website offers your taxi service a wealth of opportunities. In addition to standard details like contact information, areas covered, and available services, you can use it for customer service and booking trips. If you want to take bookings online, you’ll need a website that supports ecommerce .

Aside from operational functions, you can use a website to showcase your company’s personality, as well as news and customer testimonials. A website is also an ideal place to highlight what makes your service different from competitors!

If you’re unsure of what to do for taxi website design , there are plenty of web hosting services that can help you get started, or you could pay a website designer to do the work for you.

If you want to get a website today, compare web builders here to help you decide on the best one for your business. 

Having a good online presence will help local customers find your taxi website, as will making yourself active on local social media pages. Investing in search engine optimisation (SEO) from the start to ensure you rank highly for taxi searches in your local area will also give you a boost. If you’re new to SEO, you could hire someone to optimise your website.

Word of mouth

That said, it could still be worth forming relationships with local businesses – such as restaurants or bars – that are likely to have a steady supply of customers in need of a lift home. Leave your details with front of house staff, and let them know that you or your drivers are available. If the restaurant or bar is agreeable, you could leave a business card or leaflet on their noticeboard or front desk.

Taxi advertising

Black cabs are able to carry advertising and sponsorship on their cars, while modern taxis provide a wealth of opportunities for making money through advertising. You can wrap your taxi to such an extent that the whole chassis acts as a mobile advert.

As mentioned before, digital taxi top advertising signs can display different adverts on their screens through 3G, whilst in-taxi advertising digital display screens are becoming a common sight. There are many providers in the capital offering advertising services to some of the biggest brands in the world, who will only be too happy to buy up advertising space in your taxi.

Hussain says: “My advice to anyone looking to start up their own taxi business is to find a gap in the market – bring something special to the industry, exploit a niche that is yet to be filled, and always serve your customers well. Don’t commit to jobs you can’t fulfil, employ enough staff so you never have to turn down work, and most importantly – never turn your phone off!” 

Whether you want to start a new, different venture, or retire completely, there could come a time when you want to exit the taxi game and sell your business.

Black taxis

Selling a black cab is not difficult, provided you’ve kept it in good condition. The LEVC offers a safe and regulated portal for selling your old vehicle – it will be put through a stringent 100-point check, and assessed by factory-trained technicians.

There are even online platforms for selling whole PHV operations. You’ll have to provide a number of details for prospective buyers so they can assess whether it’s a good business opportunity, including:

• Asking price
• Number of vehicles
• Reasons for selling
• Years in operation
• Lease terms and rent (if you have property)

Franchising your taxi business

If you’ve built up a considerable reputation as a taxi or private hire service in your local area, with a strong brand name and image, you could spread your business by franchising. 

You allow an interested party to pay for the privilege of using your brand name and image on their fleet, in exchange for your training and support. This way, you can expand into other locations without significant upheaval on your behalf – and with minimal costs, too.

We’ve directed you through the key information to know and steps to follow to help you in your journey to running your own taxi or private hire firm. We’ve detailed the points to include in your business plan, the equipment you’ll need to budget for, and even how to grow your customer base.

The next step is to get going, and accelerate your ideas into reality! For more information, and to compare quotes for vehicle tracking, fill in our quick vehicle tracking form , and we’ll match you to quotes that make sense for your business. 

Here, we offer a helpful list of key sources for reference, both from within the article and from additional sites.

• LEVC black taxis
• TfL taxi driver licence application
• TfL private hire licence application
• Operator licence in London
• Operator licence outside of London
• TfL card payments
• Ofcom business radio
• National Taxi Association

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Zvenigorod Railway Station is located far from the city centre. To get to the centre from the railway station, take bus No. 23 or No. 51. Or take a taxi - it cannot cost more that RUB250. 

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Airport Taxi Business Plan

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Premier Airport Transportation Service

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Premier Airport Transportation Service (PATS) is a Cleveland-based airport transportation service. PATS provides limousine like service without the typical high limousine price. Although PATS’ cars are not true stretch limousines, they are late model high-end luxury vehicles. Premier Airport Transportation is lead by Sam Brougham, a transportation industry veteran. PATS has forecasted healthy sales by year three.

The Market and Services Offered

Cleveland currently has four limousine service providers and four taxi services. In addition to these transportation options, Cleveland also has short and long-term airport parking and a rapid transit public train system providing airport service. Premier Airport Transportation Service will span the gap between the mediocre taxi service and the high-priced limousine service. By having a middle price point, PATS will be especially attractive to both families and business travelers. The service will appeal to families as a reasonable and convenient alternative to them driving and parking at the airport. Business travelers who require a more deluxe solution relative to taxis but do not have such a debilitating effect on the company’s travel budget will embrace Premier Airport Transportation. These two market segments are growing on average at 8.5% per year and there are over a million potential customers.

The Competitive Edge

PATS recognizes that their key to success will be providing unmatched customer service. Premier has infused the importance of customer service into the drivers’ jobs by offering financial incentives to the drivers for superior service. This will ensure that the best customer service will be offered at every level and interaction with the company.

Management Team

Premier Airport Transportation Service was founded and is run by Sam Brougham. Sam began his transportation career as a taxi driver, a source of income to put Sam through school. After school, Sam worked at the Yellow Freight Company, initially in the logistics department. Sam then moved on to Yellow’s customer service department, ultimately having managerial responsibility over Yellow’s customer care call center. Sam’s logistics and customer service experience will be essential to the success of PATS. The logistics experience will provide Premier with hyper-efficient operations and the customer service experience will support their competitive edge.

Premier Airport Transportation will fulfill Cleveland’s unmet need for a reasonably priced, high service level airport transportation service. PATS will achieve break-even status by month eight and will double sales of year one by year three. While PATS will incur a loss for year one, they will generate a tidy net profit for year three.

1.1 Objectives

The objectives for the first three years of operation include:

• To create a service-based company whose primary goal is to exceed customer’s expectations.
• To increase customers by 20% per year through superior performance and word-of-mouth referrals.
• To develop a sustainable transportation company serving the Cleveland Metropolitan Area

1.2 Mission

The Mission of Premier Airport Transportation Service is to provide the customer the finest airport transportation service available. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall in to place. Our services will exceed the expectations of our customers.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Premier Airport Transportation Service, located in Bedford Hts, OH offers an airport transportation service for the greater Cleveland metropolitan area. PATS will offer their service 24 hours a day to most neighborhoods in Cleveland. PATS will be priced less than a limousine service but more than a group shuttle service.

Sam Brougham will be working full time as the dispatcher and back office person. Sam will have four employees.

2.1 Company Ownership

PATS is an Ohio corporation founded and owned by Sam Brougham.

2.2 Start-up Summary

PATS’ start-up costs will include all the equipment needed for the home-based office, legal fees, website creation, and start-up advertising.

The office equipment will be the largest chunk of the start-up expenses. This equipment includes a computer system, fax machine, office supplies. The computer should have at least a 500 megahertz Celeron/ Pentium processor, 64 megabytes of RAM (preferably 128), 6 gigabyte hard drive, and a rewritable CD- ROM for backing up the system. A DSL line will need to be set up as well. PATS will also need some Nextel phones. The advantage of the Nextel phones is it allows two way communication from the base to the cars over cellular frequencies but at a drastically reduced rate. 

The office will need some furniture such as a desk, file cabinets. The legal fees are used for the formation of the business as well as for reviewing/generating standard client contracts.

PATS provides an airport transportation solution for the Cleveland metropolitan area. PATS can provide airport travel on short notice if cars are available, but they generally work with a reservation system. A customer would call up in advance and provide PATS with flight information. PATS would schedule the pick up time and then call and send an email to confirm the pickup. For pick up at the airport, PATS would meet the customer outside of baggage claim after the customer has picked up their luggage and would drive them home.

Market Analysis Summary how to do a market analysis for your business plan.">

PATS will be focusing on families as well as business travelers. Both groups will likely demand PATS services. The families will utilize our service because it is convenient and less expensive than if they drove themselves and paid for long-term parking of their car. Business travelers will use our service because it offers a limousine-like service (other than the fact that PATS does not use limousines) where the traveler has a ride waiting for them when their planes comes in, but the service is less expensive than normal limousine services. Since the service is fairly comparable to a louisine service, companies will encourage their workers to utilize PATS as a cost saving measure, particularly in this economic downturn. Currently there are four limousine services in Cleveland and four taxi-type service providers.

4.1 Market Segmentation

Our customers can be divided into two groups: families/individuals on pleasure trips, and business travelers.

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The second group is the business traveler. In the past a company would typically hire a limousine service to pick up their worker. The company would always pay for the service. With PATS as an alternative, there is a transportation service that functions like a limousine (you can preschedule pickup dates and be taken directly home or to the airport) but without the overly fancy car and the associated high price. As companies are always looking at ways to cut costs, PATS offers a very reasonable solution in terms of comfort and cost. The business traveler will not notice anything different with PATS versus a limo service other than the vehicle they are traveling won’t be a limo, but will still be a sufficiently large and comfortable car.

4.2 Target Market Segment Strategy

PATS will be targeting these two groups because they consistently travel, and PATS solution makes traveling easy for them. While a slow economy has some effect on travel. In general Americans tend to travel more each year, this trend beginning in the early 1980s. These groups are particularly attractive to PATS because they will always need to get to the airport and they are willing to pay a bit extra for the luxury of having someone take them there instead of being required to get themselves there. Please note, however, PATS is only slightly more expensive for trips under four days; over four days it is more cost effective to use PATS. Compared to driving a personal vehicle and paying for long-term parking.

In regard to the business customers, it is generally accepted practice for the company to provide the transportation for their employees. For trips over four days, there is no question that PATS is more cost effective. Under four days PATS service is slightly more expensive than driving oneself and parking, however, companies are more than willing to pay a bit extra as their employee is giving up a decent amount of their free time to go on the trip for work and the business recognizes and appreciates this. Of course for the companies already willing to pay limousine prices, PATS will appear as a way of reducing travel costs with no appreciable loss in service quality.

4.3 Competition and Buying Patterns

Currently in Cleveland there are several competing airport transportation systems:

• Public transportation : RTA provides rapid transit service to the airport. While this is an inexpensive alternative there are several disadvantages. The service does not run all hours of the night. RTA also forces travelers to change trains downtown to pick up the airport line. The rapid transit also requires travelers to manage all of their luggage which can be quite chore from some that are not skilled in the art of packing or are traveling for a real long time.
• Taxi service : Taxis do provide service to and from the airport, however, travelers cannot book the trip in advance, forcing them to call right before they want to travel. The level of service is inconsistent from taxi service to taxi service as well as from occasion to occasion. Taxis can also be quite expensive if city dwellers are going out to the suburbs.
• Airport parking : Airport parking can be cost effective if it is for fewer than four days. Driving oneself has the advantage of not having to deal with anyone else, the flip side to this however is they must do everything for themselves. Lastly, there is always the risk of damage to their car when it is parked and all airport parking facilities have drivers sign a waiver absolving the lot from responsibility if anything happens to the car.
• Shuttle service : This option packs a few different people into a van and takes them to the airport. This is a less expensive option, however, it takes longer to make the commute due to the other customers that are traveling Additionally, travelers lose out on the personalized service relative to PATS or a limousine service.

The buying patterns of these services vary based on the length of the trip, who is paying for it, and if it is a last minute or planned in advance trip. The longer the trip, the more economical a transportation option is relative to airport parking. A large percentage of business travelers use an upscale airport transportation solution like PATS or a limousine service for their employees. People who are just scraping by to go on vacation are likely to choose the least costly option, public transportation. Lastly, if the trip is planned at the last minute, taxi service might be the only option however, PATS will offer last minute rides if cars are available.

Strategy and Implementation Summary

PATS’ marketing/sales strategy will be two pronged, one to address each of our two segmented targeted groups:

• Families/individuals : In addition to some advertising, we will be working with associations such as AAA and other community groups to try to build up a network of users. PATS believes that working with these groups will provide us with steady flow of customers. Additionally, since a lot of these groups have close knit among member referrals will be quite powerful when they are coming from a member who already has established a trust bond with other organizational members.
• Business travelers : PATS will be contacting the travel department of many of the different companies in Cleveland that have a lot of employees traveling and informing them about our service and offering them an introductory discount. This will be an important segment to win over as companies routinely have employees traveling throughout the year. Businesses are also valuable because once the initial contact is made, the relationship can be turned into a steady stream of business.

5.1 Competitive Edge

PATS’ competitive advantage will be based on an incentive system that rewards the driver economically when they achieve good service, develop repeat customers and act in a team fashion instead of competing against other company drivers. This incentive system will reward drivers when:

• The driver acts in manners that are team based instead of for individual gain.

Through this complicated but purposeful system, PATS is incentivizing behavior that they believe will help the company succeed, while not rewarding behavior that is destructive to the company.

Additionally, PATS will be having the drivers lease the cars through PATS for several reasons:

• With PATS leasing the cars, they are able to get a volume discount for the leases. PATS will actually be passing on the costs to the drivers.
• Leasing through PATS encourages a long term employee as there are fees to break a lease and PATS includes provisions in the lease that do not allow drivers to use the cars for more than two months beyond termination of employment.
• By having the drivers lease the cars, they have an economic incentive to maintain the cars as they are financial responsible for damage beyond reasonable wear and tear.

5.2 Sales Strategy

As stated earlier, we will be going after both families/individuals as well as business travelers. PATS will have a different strategy for each group. For the individuals, PATS will use contacts through membership associations and clubs to build customers. Customers that are a part of an association tend to put more trust in a service provider when the service provider is aligned with the association. PATS will offer a discount for the association members to try to build up a following. Our selling spiel will be total convenience at a cost that is competitive with the price that they currently pay when they leave their car in the parking lot. Offering the ability to schedule in advance pick up from home and then pick up from airport should be a big selling point. People like convenience, and people are willing to pay for conveniences. One phone call to arrange all of your transport needs to the airport is quite a convenience.

Our strategy of wooing the business travelers will be a campaign to introduce PATS to the different travel departments of the larger companies in the area. The initial contact will be a letter/brochure describing our services along with a pricing guide. PATS will then follow that up with a phone call to try to receive a commitment from the company. By including the pricing information within the brochure, PATS believes that this will catch the eyes of the companies’ travel departments as they are acutely aware of the costs that they are paying now and PATS believes that they can convert the lead into a customer by offering essentially the same service of a limo company at a reduced rate.

5.2.1 Sales Forecast

The first month will be spent setting up the business. It is unlikely that everything will be ready to go so that we could begin to take fares. By month two the business office will be in order, brochures will have been sent out and PATS will have been working with associations to create visibility for the company. PATS will have two drivers and will be paying a base monthly wage on the assumption that PATS wants to have the drivers ready when fares come up but there is not likely to be enough fares to support the wages of the two drivers.

Month three will see an increase in fares and things will be getting busy. Business will continue to grow and by month five a third driver will be brought on board. It will not be until month 11 that a fourth and final driver will be brought on board.

5.3 Milestones

PATS will have several milestones to aim for:

• Set up office.
• Profitability.
• Bringing on board the fourth driver.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Premier Airport Transportation Service is owned and operated by Sam Brougham. Sam will be incorporating in Ohio. Sam has a degree in business and mathematics from Case Western Reserve University. While at Case, Sam worked as a taxi driver to cover expenses for his education. Upon graduation, Sam went to work for Yellow Freight Company as a manager for the Logistics Department. In this position, Sam was responsible for devising systems that utilized Yellow’s truck fleet to its maximum capacity. After developing systems for the efficient use of the equipment, Sam applied and was accepted to transfer over to the customer service department. Same felt that he did not have sufficient “people” skills and was determined to develop these skills. For three years Sam worked in the department, eventually being promoted to leader of a call center group.

Once Sam had developed the skills that he deemed necessary to run his own business, he left Yellow and decided to open up his own transportation business. The logistic skills coupled with an outstanding ability to communicate with others provides Sam with the necessary foundation to run PATS.

6.1 Personnel Plan

The staff  will consist of Sam working full time in the back office. Sam will be responsible for setting up the appointments as well as the marketing to develop customers. By month two, Sam will be bringing on board a part-time employee to help him out in answering the phones and setting up appointments for fares. Month two will also bring two drivers to PATS. The head count will remain the same until month five when a third driver will be brought on board. Lastly, month 11 will see a fourth driver brought on board.

Financial Plan investor-ready personnel plan .">

The following sections will detail important financial information.

7.1 Important Assumptions

The following table highlights some of the important financial assumptions for PATS.

7.2 Break-even Analysis

The Break-even Analysis indicates what PATS must have in averaged monthly revenue to break even.

7.3 Projected Profit and Loss

The following table presents the projected profit and loss.

7.4 Projected Cash Flow

The following chart and table display the projected cash flow.

7.5 Projected Balance Sheet

The following table details the projected balance sheet.

7.6 Business Ratios

The business ratios table below is generated by the planning software using the interconnected tables. Standard industry ratios, based upon Standard Industrial Classification Code (SIC) 4111, Local and Suburban Transit, are shown for comparison.

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Small business owners lose out as parties argue over instant asset write-off bill

Both major parties have been accused of playing "dumb" politics as a significant policy designed to benefit millions of small businesses remains stuck in the House of Representatives.

The amendment to the instant asset write-off provision for small businesses would increase the tax break amount from $1,000 to $20,000 — with the aim of boosting cashflow and reducing compliance costs.

When the ABC spoke to Tasmanian cafe and hotel owner Rachel Power earlier this month about the higher threshold, she was looking forward to being able to replace the dishwasher and fridges in her industrial kitchen.

But with the bill still yet to pass Parliament, and a June 30 deadline before the current tax break expires, Ms Power told the ABC on Wednesday that it was too late for her to benefit from last year's budget promise to lift the threshold.

"[Even] if this gets legislated within the next four weeks, it's too late," said Ms Power, who runs Waterfalls Cafe and Gallery in Tasmania's Mt Field National Park. 

The instant asset write-off has been available to small businesses for years, but many owners have told the ABC the current limit of $1,000 is hardly worth the effort of claiming.

But a $20,000 limit could make a big difference.

The way it works is that a business can buy something, such as a coffee machine, and the owner can deduct the cost of that machine from the business' taxable profit.

But they need to use the asset immediately after the purchase to be eligible.

"And they need the ability to actually get the product," Ms Power explained.

"If we're talking $20,000, some of those products might have to come in from offshore and might not be available in Australia."

Bill bouncing around Parliament

The bill, known as the Treasury Laws Amendment Bill 2023, was introduced to Parliament in September last year — four months after the federal budget announcement.

It has now bounced between the Senate and the House of Representatives several times.

The sticking point? Coalition and Greens MPs in the Senate want to increase the asset price threshold to $30,000.

"Small businesses, the backbone of our communities right across Australia, are buckling under the weight [of] repeated interest rate hikes — 12 since Labor came to power," Shadow Treasurer Angus Taylor told the National Press Club in Canberra on Wednesday .

Labor, concerned about fuelling inflation, insists the asset threshold needs to remain at $20,000.

A spokesperson for Treasurer Jim Chalmers told the ABC "the only thing standing between small businesses and cashflow support this financial year is the grandstanding and delaying tactics of the opposition and crossbench".

"Unless they urgently pass the legislation in the upcoming sittings, businesses may miss out on this important cashflow support when they lodge tax returns from July 1," the spokesperson said.

The ABC understands the Coalition now plans to ultimately agree to the government's $20,000 asset threshold.

But the houses are not due to both sit again until the final week of June, meaning the earliest the bill could be passed would be one or two days before it expires.

That will be too late for many business owners.

"It was announced and it was adopted in the [federal budget] but it hasn't been legislated, so as a business owner I don't have time to spend looking at the ins and outs of the politics of every little decision," Ms Power said.

Small businesses 'need certainty'

Small Business Council CEO Luke Achterstraat said Ms Power spoke for many small businesses across the country.

"Quite frankly, I think small businesses are a bit over it," Mr Achterstraat said.

"They'd like to see certainty but they'd also like to see that certainty locked in."

Angus Taylor said the Coalition would deliver a permanent instant asset write-off if elected to government.

"Our commitment in this budget reply is to make this instant asset write-off permanent," he said.

"And that's a down payment on our priority of lower, simpler, fairer taxes.

"This will simplify depreciation for 2.5 million small businesses across Australia while giving them the certainty that they can plan investments on a longer-term basis rather than year to year."

But veteran budget commentator Chris Richardson said neither side of politics was courting favour with this policy and argued that, frankly, they had stuffed up the politics.

"Political gridlock and political games doesn't help anybody," he said.

"In Australia, we lack bipartisanship to do things that should be done.

"This isn't the worst example but it's a dumb example. We can and should do better.

"So you want to give people a chance to respond to this policy.

"And to run it down to the wire … messes up good decision-making by small business."

This year's federal budget offers to extend the $20,000 instant asset write-off for another 12 months but, again, that would require an amended bill to pass Parliament.

Given the serious concerns about inflation, it is arguable the political stalemate has prevented an economically fraught surge in business spending.

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