For anyone who loves cars and driving, running a chauffeur business can sound like a dream come true. You can be paid to do the thing you love the most, drive around in a nice car.
However, just like any business person will know, there are many other things that you need to take into consideration when starting and running a business.
So if you’re thinking about getting into the chauffeur industry, then here is a guide to what you need to consider.
Choose a Type of Customer to Focus On
When you’re starting a business, it can be easy to think that everyone is a potential customer. However, this is usually not the best to approach things. It makes it difficult to focus your marketing efforts and adapt your pricing and service.
Different customers have different needs. Perhaps there’s demand in your area for private airport transfers, or perhaps there’s an opportunity to be a full time driver for a business who will keep you on retainer.
Develop Your Business Plan
Whatever you’re planning to do in life, it works better if you plan ahead first. Starting a chauffeur business is no different. A business plan doesn’t need to be War and Peace, but it does need to cover important factors that you should consider, including:
- Any licenses you will need to get
- The type of customer you decide to focus on
- How you will market to that potential customer
- Competitor analysis
- A full and detailed breakdown of your costs (the car(s), taxes, insurance, license(s), fuel, maintenance, marketing, administration, etc) and how much you’ll need to charge to make a sustainable profit
Produce Your Marketing Strategy
In the beginning, it can be difficult to find new customers. You don’t have an established brand nor a customer base that can provide recommendations or testimonials. Your marketing should therefore initially focus on raising awareness and creating interest in and desire for your chauffeur services.
Some businesses offer discounts to new customers to persuade them to use their services over a competitor. This can be seen in the online gaming market where free bets are offered regularly and supermarkets who offer discounts to people who place their first online order.
You may also want to produce business cards, set up a website, and look at online marketing methods. Some old school techniques may be useful too, with leaflets that you can leave with prospective clients that you think would be a good fit for your business.
If you plan to target people who want to be transported to their night out in style, then putting up posters near bars or clubs could be a good idea.
Choose a Location to Base Yourself
If you’re starting out on your own, you may choose to keep your car(s) at home. If you do, make sure that your insurance covers this. If you decide you need a business premises then you need to decide where this will be based.
It’s unlikely you will need prime retail space, since you won’t have customers walking in off the street to place bookings with you. Instead, a unit in an industrial estate or that is out of town and that has good connections to the road network will likely be best.
You’ll want it to be somewhere that is clean and secure, and big enough to store your vehicle(s).
Get Yourself a Uniform
Whether you are driving on your own, or you are hiring other drivers, you will want to present a professional image to your customers. Most chauffeur businesses have their drivers wear suits while transporting customers.
This gives a smart and respectable and upmarket appearance to your business, which will be important as you will likely be charging more than a run-of-the-mill taxi service.
You may want everyone to be wearing the same, or you may be happy as long as the drivers are dressed smartly. The former could make your brand more recognizable.
Account for Tax
Many business people forget that they have to pay money to the government every year. Unlike a salaried employee, the tax doesn’t get taken from you automatically. It’s therefore important that you put aside a portion of your profits to cover this.
In the UK, the corporation tax rate is 19% on profits. So setting aside 20% could be a prudent figure, but you should check with your accountant on the best approach. It’s best to put this money in a separate bank account too. That way you know not to spend it or withdraw it as your salary.
Most importantly though, enjoy yourself. Running a business can be very stressful, but it can also be very rewarding.
