Starting Taxi Business Plan (PDF)
A taxi is a vehicle that may be hired for single journeys by members of the public. It is also commonly referred to as a cab or taxicab. There has been a notable market disruption emanating from digital solutions. A whole new industry of online taxi services has grown over the years. For instance, in the USA, Uber facilitates over 40 million rides every month. Even as online taxi services continue to grow, traditional taxi services are still relevant. It is still worth it and profitable to start a taxi business. Taxi cabs play a significant role in the transportation industry. People opt for taxis due to a variety of reasons including convenience and exclusiveness. Starting a taxi business is a very profitable venture, which is highly rewarding. This article will outline how to start the taxi cab business, and the taxi business plan – PDF, Word and Excel.
The possible sets of destinations for the various customers make it apparent that the demand is huge. The fact that more and more players are starting taxi businesses speaks to how lucrative the business is. Once properly setup this is one type of business where you will be assured to realise revenue on a daily basis. This article will help in informing you with vital information you need to know on starting your own taxi cab business.
Already we have stated that an increasing number of players are entering this space. This spells out ‘competition’ and whenever competition is involved you can’t overlook the importance of market research. Just by taking a look at how existing players conduct their businesses you’ll notice that they serve different target markets. Some solely focus on people commuting to and fro work. Some specifically target airports and termini. Others have strategic spots they operate from in central business districts to cater for wide-ranging customers. So in order for you to ascertain that you’re on course, you must research to find out which markets are available, penetrable and sustainably scalable. It’s a must to take a look at existing players. Essentially this means you must closely study them to draw invaluable insights that’ll help you start strong and even eventually topple your competition. Some of those insights will be on popular services offered, rates charged, types of vehicles and payment methods amongst others. This makes it a must to have a good taxi cab business plan.
Taxi Business Model
The traditional business model for a taxi business is simple. It entails having an area where you operate from and in. You park somewhere and clients can come up to you in need of a taxi ride. You can be an owner-driver or you can have a fleet of taxis you own. You can charge fixed rates for specific routes or you can use the metered approach. The metered approach (i.e. charging per mile) is best because client needs can be so random. Another approach is charge per duration of a trip e.g. per hour.
You could charge per day as you would for a car rental. This can apply for a client who wants to be taken to several locations consecutively in a day. Charging can also be dynamic where you simply negotiate with a client. You could also have a retainer arrangement with wide-ranging clients. The online aspect is somewhat the same. The major difference is that when using an online approach, clients book a ride online. This is doable by developing a mobile app for your taxi business. The fares you charge can differ given the costs elements you would want to offset.
Vehicles and Equipment
The major procurement you must make is vehicles. The vehicles can be imported from other countries where they are cheap or you can buy them locally from your country. The number and type of taxi cabs required will depend on the amount of capital which you have and your target market. You will also have to make a decision of whether to buy brand new vehicles or used taxi cabs. When starting the business with limited capital, you may opt to purchase used cars. The advantage of having new taxi cabs is that you have lower maintenance costs and better reliability on the road.
There are several factors to take into consideration when purchasing the taxi vehicles. Some of the factors include: purchase price, fuel consumption, transmission mode (automatic vs manual), gross vehicle mass, model, new taxi cab vs used taxi cab. If you have limited capital, you can always start your meter taxi business with just one vehicle. Taxi cab business is very profitable and if you reinvest your profits, you will be able to purchase more taxis.
Equipment required for the meter taxi business include garage equipment, taxi meters, taxi partitions, top lights, communication radios (for communication with the dispatch centre). The taxi drivers should always travel with basic repair tools such that if they encounter minor problems along the way, they can always fix the taxis. The taxi business plan should include the costs of purchasing the vehicles and equipment.
Taxi Servicing And Repairs
When running a taxi business you can never compromise and expect to thrive. Customers are most concerned about convenience. This means your taxis must always perform optimally. They must always be fully serviced and devoid of any operational issues. That is why you must always take your taxi(s) for service. It is advisable to have a reputable servicing and repairs provider that you work with. Always keeping your taxi(s) clean and doing daily checks before, during, and after daily operations is key here. If these elements are all kept in check it is rare for your taxi(s) to malfunction. Servicing and repair costs should be accounted for in your taxi business plan.
Taxi Business Insurance and Licences
One of the critical requirements that can potentially have catastrophic consequences for the public as well as the business is insurance. It is advisable to have a comprehensive insurance plan for all the taxi cabs. The costs of such a package are more than offset by the potential losses if you were to have an accident. As a business; the taxi cab company may be liable for very significant punitive damages particularly if there is a loss of life. Without adequate insurance, the taxi cab business could be bankrupted by compensation claims.
The taxi industry is regulated and the specific licences depends with the country. First of all, your drivers must be properly licensed with up to date records including health checks and driver licences. Your local council will have a list of regulatory requirements which must be diligently followed lest you lose your license to operate the taxi cab business. The taxi cab business plan should include costs for the insurance and licenses.
Staff and Management
Operations staff is a necessity. Operations staff are responsible for handling the operations of the taxi cab business. They include drivers, assistants, logistics personnel, mechanics and operations manager. You will need a taxi driver as the minimum starting employee for the taxi business.
Finance and accounting employees are also required. For a small taxi cab business, the duty can be handled by the owner of the business or a part time accountant. However as the taxi transport business grows, there will be need for full time employees who will be responsible for the finance and accounting needs of the business. Their duties will include usual day to day transaction accounting for business, managing the cash flow of the taxi cab business, and always ensuring the enough funds are available for the day to day needs of the taxi business.
Marketing is essential for you to be successful in the taxi business. To have a stable financial position, your taxis should get sufficient number of trips every day. This is only possible if you are marketing your taxi cab business. Thus your taxi business will also need marketing and sales staff. If you have a dispatch centre then you also need staff so the dispatch centre. Your taxi cab business plan should cater for the wages and salaries of all your staff.
The taxi business is marked by intense competition. For instance, you have to compete with unregulated taxi operators. You also have to compete with ride-sharing brands e.g. Uber. Competitive analysis in a taxi business is to establish differentiators that can make you stand out. Customers when they hire taxis they have certain expectations. How are other taxi operators faring in terms of meeting those expectations? Answers to that can show you how best you can provide superior services.
You must in great detail know about all your direct competitors. Look at their profiles, their target markets, and generally how they conduct business. Look for verified information or conduct observations by trying out competitors’ taxi services. Once you establish all that you can know where and how to strategically place your taxi business. One of the most effective ways to do your competitive analysis is by doing a comprehensive SWOT analysis.
Capital for Starting Taxi Business
The amount of capital required for starting the taxi business depends on the size of the business. It all depends on what you want to achieve and the resources that you have. When starting a taxi cab business, most of the capital goes to acquiring the taxi cabs. You can get a loan from the bank, or funding from investors, to use as capital to start your meter taxi business. If you plan to raise capital from investors and a loan from the bank, you need a good meter taxi business plan. If you don’t have access to investors and bank loan, you can use your personal savings and start small, and grow your taxi business overtime. Taxi business is very profitable, so if you reinvest the profits you get, you can grow over time. Even if you are not planning to get a loan, you should still get a taxi project plan to guide you in starting and operating the business. It is essential for you to have a meter taxi business plan before you venture into the taxi cab business, so that you know all the costs involved and you make an informed decision.
Market for the Taxi Cab Business
The market for taxi cab services is very huge. There are a lot of potential customers for taxi services. Companies may outsource transportation of their employees to taxi cab companies. Parents require taxi cabs to transport their children to and from school. Individuals may need taxi services for routes within a specific location which are not plied by public transport or within the city centre. Some individuals prefer to use taxi cabs even if alternate public transport is available. This is because taxis are more convenient, fast, offer privacy, and exclusiveness. Potential sites to find clients include hospitals, universities, schools, airports, night clubs, city centre, hotels & lodges, shopping centres among others. A proper marketing strategy should be included in your taxi business plan.
Engaging vehicle branding.
There are countless marketing approaches you can employ for your taxi business. The taxi business involves the use of moving vehicles. That makes the actual vehicles a central feature of marketing. Have the vehicles colourfully branded with subliminal marketing content. People merely seeing the taxis passing by will have their subconscious minds conditioned.
Attending Strategic Events
The thrust is to attend events that can strategically generate leads for your taxi business. Examples of such events are trade shows, concerts, conferences, and the like. One way is to actually exhibit and showcase your taxi offerings, if possible. The other way is to simply be in the vicinity of such events. There is most likely always going to be people who will need your services.
Sponsoring Or Supporting Worthy Causes
Running a taxi business offers you easy ways to sponsor or support worthy causes. All it can take is you providing your taxi(s) for free for some event or cause. Your presence during that event or cause will draw so much attention to your taxi brand. You could also materially contribute to causes such as helping the underprivileged. Your association with notable events or causes is a potent marketing strategy. Remember, your taxi(s) being branded will be doing the work for you.
Internet And Social Media Initiatives
This should be at the core of the marketing plan for your taxi business. You must have a website and set up active accounts on social media. Use high definition visuals to draw people in. Regularly do online contests; these are highly effective in building your audience. All your social media initiatives should encourage word of mouth and referrals.
Another faster and more effective strategy is to work with social media influencers. Work especially with macro influencers (between 40000 and 1 million followers) and m icro influencers (between 1000 and 40000 followers). Such influencers are often characterised by highly engaged audiences.
Keys To Taxi Business Profitability
You are supposed to be big on quality in your operations. This refers to aspects such as cleanliness, timeliness, cordialness, and convenience. Customers will always settle for taxi businesses that have these qualities. That is why customers will not hesitate to switch to other taxi operators if you are lacking. Using vehicles with good fuel economy is a vital key to profitability in a taxi business. Regular servicing and using fuel from reputable sources also feeds into good fuel economy. This significantly reduces your operating costs. The first ever taxi service or business was started in 1897. It has been more than a century since then and taxis still continue to proliferate. This is because the market is inexhaustible. You can start your own taxi business today and still make significant money.
Pre-Written Taxi Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements
For an in-depth analysis of the taxi cab business, we encourage you to purchase our well-researched and comprehensive taxi cab business plan. We introduced the business plans after discovering that many were venturing into the taxi transport business without enough knowledge and understanding of how to run the meter taxi business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.
The StartupBiz Global taxi transport business plan will make it easier for you to launch and run your meter taxi business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the taxi cab business.
Uses of the Taxi Business Plan (PDF, Word And Excel)
The taxi cab business plan can be used for many purposes including:
- Raising capital from investors/friends/relatives
- Applying for a bank loan
- Start-up guide to launch your taxi business
- As a taxi business proposal
- Assessing profitability of the meter taxi business
- Finding a business partner
- Assessing the initial start-up costs so that you know how much to save
- Manual for current business owners to help in business and strategy formulation
Contents of the Taxi Cab Business Plan (PDF, Word And Excel)
The meter taxi business plan include, but not limited to:
- Marketing Strategy
- Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
- Risk Analysis
- Industry Analysis
- Market Analysis
- SWOT & PEST Analysis
- Operational Requirements
- Operational Strategy
- Why some people in taxi cab business fail, so that you can avoid their mistakes
- Ways to raise capital to start your meter taxi business
The Pre-written taxi cab business plan package consist of 4 files
- Taxi Cab Business Plan – PDF file (Comprehensive Version – 71 Pages)
- Taxi Business Plan – Editable Word File (Comprehensive Version – 71 Pages)
- Taxi Cab Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 42 pages)
- Taxi Business Plan Automated Financial Statements – (Editable Excel File)
The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the number of taxis, pricing rate per KM etc, and all the other financial statements will automatically adjust to reflect the change.
Click below to download the Contents Page of the Taxi Business Plan (PDF)
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Get the Taxi Business Plan (PDF, Word And Excel)
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We wish you the best in your taxi business! Check out our collection of business plans , and more business ideas .
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Starting Meter Taxi Business In South Africa – Business Plan (PDF, Word & Excel)
Posted by BizBolts | All Articles , Business Ideas , Business Plans , Transport Industry
Starting a meter taxi business in South Africa is a lucrative venture for entrepreneurs looking to enter the transportation industry. With a diverse and growing population, a booming tourism sector, and an increasing demand for reliable transportation services, the market for meter taxis presents numerous opportunities for those willing to take the plunge. While the taxi industry in South Africa has its unique challenges and complexities, it also offers the potential for substantial rewards. With a nation that constantly crisscrosses urban and rural landscapes, the demand for reliable transportation remains ever-present. Meter taxis are vehicles authorised to carry between 1-9 passengers; are available for hire by hailing while roaming, by telephone or otherwise; and are equipped with a sealed meter for the purpose of determining the fare payable. This article will outline how to start the meter taxi cab business in South Africa, and the meter taxi business plan -PDF, Word and Excel.
If you’re passionate about the transport sector then a meter taxi business can be the right business for you. However market research is essential before you venture into the meter taxi transport business in South Africa. You need to comprehensively know how the taxi cab industry operates. You must study the market to know which niche is best in as far as profitability is concerned. The possible niches to cater for are numerous so you must know which ones are strategic to you. There’s a lot of competition in the meter taxi cab industry so you must study your competitors. Note the types of clients they’re serving, the routes they’re serving, their marketing strategy, amongst many other things. In studying your competition you’ll also be finding out general rates charged and operating frameworks.
There are some major decisions which you have to make before starting the meter taxi business in South Africa. These include target market, location of the business, and the number of vehicles which you will have. You should decide the location you are going to operate your meter taxi business in, and ascertain the demand for taxi cab services in that target area. A lot of research should be done before venturing in the meter taxi business. That’s why it is essential to have a good meter taxi business plan before you start this business.
Choosing the right location is a pivotal decision when embarking on the journey of starting a meter taxi business in South Africa. Your chosen location can significantly impact the success and profitability of your venture. South Africa’s diverse landscape offers various cities and towns, each with its own distinct demand for taxi services. It’s essential to conduct in-depth market research to pinpoint the areas with the highest demand. Major metropolitan areas like Johannesburg, Cape Town, Durban, and Pretoria are often bustling hubs with a constant need for reliable transportation, making them prime locations for meter taxi operations.
Analyzing specific routes and transportation hubs is another crucial aspect of location selection. Identifying key areas such as airports, bus and train stations, and popular tourist destinations can provide valuable insights into where your services will be most in demand. Additionally, assessing the level of competition in your chosen location is vital. Understanding the market dynamics and the number of existing meter taxi operators will help you determine whether there’s room for new entrants and how to position your business effectively.
Moreover, compliance with local regulations and a focus on safety are paramount. South Africa has specific licensing requirements for meter taxi operators that may vary by location. It’s imperative to navigate these regulations diligently to ensure legal operation. Furthermore, considering the safety and security of the areas where you plan to operate, especially during nighttime operations, is essential for the well-being of both passengers and drivers. By carefully evaluating these factors and selecting the optimal location, you can lay a solid foundation for the success of your meter taxi business in South Africa.
Vehicles & Equipment
You will obviously require vehicles to start the meter taxi business in South Africa. Purchase of vehicles is the largest startup cost item when starting a meter taxi business in South Africa. You will have to decide on which type of vehicles to purchase, and where you are going to purchase them. The kind of vehicles which you need will depend on your target market. You may go for luxurious models if you are planning to offer luxurious premier meter taxi services for the wealthy. If you want to target the mass market then it will be better to buy fuel saver vehicles so as to minimise fuel costs. The meter taxi industry in South Africa is very competitive, so to offer competitive rates, you should have vehicles with a low fuel consumption rate.
The other important decision to make is whether to purchase brand new vehicles or second hand vehicles. Ideally it will be better to purchase brand new taxi cab vehicles as they are more reliable and efficient with low repair and maintenance costs. However, if you have limited capital, then you may start the meter taxi business with used vehicles which are cheaper. Ensure that the vehicles you buy have sufficient luggage space as some of the clients will have a lot of luggage. The equipment needed include garage equipment, repair tools, taxi meters, top lights, meter taxi partitions, and radio communication system for large meter taxi businesses. The costs of purchasing the meter taxis and equipment should be included in your meter taxi business plan.
Meter Taxicab Services
The services offered by your meter taxi business will depend on your target market and operational strategy. The common way is to use the taxi cabs as cash meter taxis. The meter taxis will be available at various points in the city. Clients may approach the meter taxi directly, or they can also call the dispatch centre to request for a meter taxi. The fee payable will depend on the amount of distance travelled. The meter taxi company will be having a rate per KM fee eg R11 per Kilometre. Meter taxis can also charge a waiting fee if a client is late.
Your meter taxis can also be used as contract meter taxis. The meter taxi company and the client will be in a contract. Such kind of clients are usually medium to large companies/organisations. The client eg a company will be issued a voucher book for authorised travel. Whenever the meter taxi is used, the meter taxi driver and the passenger will both sign the voucher book. Details on the voucher include time, date, distance travelled, cost, name of driver, name of passenger. After a set time, the meter taxi company will send all the vouchers to the client, and the payment will be processed. Meter taxis can also be used as prepaid meter taxis eg a personal contract to carry children to school everyday. The meter taxi business plan should include details of services offered and the pricing mechanism.
Maintenance & Repairs
In the world of meter taxi operations, the careful management of maintenance and repairs is more than just a routine task—it’s a fundamental pillar of success. Ensuring the safety of passengers and the long-term profitability of your business heavily relies on the proactive maintenance and timely repair of your vehicle fleet. An essential aspect of this involves implementing a structured maintenance schedule for your vehicles. Regular tasks such as oil changes, tire rotations, brake inspections, and other routine maintenance activities not only extend the lifespan of your vehicles but also help prevent breakdowns that can disrupt your service and lead to unforeseen repair costs.
Equally important is driver training. Properly trained drivers play a vital role in vehicle maintenance. They should be instructed on how to conduct pre- and post-shift vehicle checks and encouraged to report any issues promptly. Quick reporting enables the identification and resolution of problems before they escalate into major, costlier issues.
Furthermore, having clear repair protocols in place is essential. Designate a trusted repair facility or mechanic to address breakdowns or accidents promptly. Swift action minimizes vehicle downtime and helps maintain a reliable service for your customers. Additionally, budgeting for repairs is a prudent practice. Allocate a portion of your revenue to cover unforeseen repair and maintenance costs, ensuring you can address issues promptly without compromising your ability to serve customers. Lastly, consider a vehicle replacement strategy as your fleet ages. Older vehicles may become less fuel-efficient and prone to breakdowns, leading to increased maintenance expenses. Replacing aging vehicles with newer, more reliable models can be a strategic investment in the long-term sustainability and profitability of your meter taxi business.
Meter Taxi Licences and Insurance
To operate a meter taxi business in South Africa, there are some legal requirements you have to adhere to. All your vehicles should be registered and have a valid vehicle licence which is renewed annually. Any person that transports passengers in South Africa must obtain a public operating licence, this applies also to meter taxi drivers. A public operating licence is a permit or document giving drivers permission to transport people for public gain. All your drivers should also have drivers license. It’s important that you adhere to all the regulation otherwise you risk getting fined and losing your operating license.
When operating a meter taxi cab business in South Africa, it is important to protect all of the assets of your business. Appropriate and adequate insurance coverage is an important part of protecting your meter taxi business. It is better to take out comprehensive insurance policies for all your vehicles. This is the most extensive form of insurance and covers you in the event of theft, hijacking, loss and/or damage caused by an accident, fire and natural disasters, and claims made against you by third parties where you are responsible for the damage to their vehicle. The costs of insurance and licences should be catered for in your meter taxi business plan.
Branded Meter Taxi
Staff And Management
This is always a function of your intended scale of operations. If you’re starting off as an owner-driver then you can effectively run and manage the taxicab business alone. This is usually a wise market entry approach that’ll enable you to acclimatise yourself with the dynamics of the trade. Actually most people tend to do this as it eliminates a lot of possible operating costs thus widening the profit margins. However, a well-run business grows and with scaling comes the need to have more cars and more drivers. Once the business grows like that it becomes necessary to have staff and management.
One of the key things to be on top of is close monitoring of how drivers are conducting their trips. Having to ensure that daily revenue targets are being adhered to by the drivers, responsible vehicle handling and many other things will require some full-time staff. Management can always effectively be done by the owner if the business is relatively small to medium scale. When the business grows to huge proportions you might end up needing to have call centres, team leaders, managers and even a workshop or garage. Necessary staff for a medium to large scale business include marketing staff, operations staff, finance and accounting staff. Operations staff includes drivers, mechanics, supervisors and operations managers. Your meter taxi business plan should include costs for the wages and salaries of all your staff.
Meter Taxi Business Model
The meter taxi business operates on a relatively straightforward yet crucial model that hinges on several key components. First and foremost, you start by purchasing vehicles, which are the backbone of your taxi fleet. These vehicles are then manned by employed drivers who are responsible for providing transportation services to customers within your targeted location. Customers seeking meter taxi services are charged a specific rate per kilometer, which serves as the basis for revenue generation.
In terms of expenses, the major cost categories include fuel, driver salaries, vehicle repairs and maintenance, marketing efforts, as well as licenses and insurance. Profitability in the meter taxi business largely depends on achieving a high volume of trips per day. This is critical because a consistent flow of trips translates into revenue that can effectively cover the significant operational expenses, particularly fuel and salaries. By efficiently managing your business, you can achieve not only sustainability but also the potential to reinvest profits to purchase additional vehicles, thereby expanding your fleet and solidifying your position in the market. The success of your meter taxi business ultimately hinges on striking a balance between generating sufficient trips and effectively managing expenses to achieve profitability.
Market & Marketing for Meter Taxi Business
Despite the competition, the market for taxi cabs is vast and inexhaustible. The trick is in figuring out your niche and establishing yourself there. Types of clients can vary from corporate ones, academic, leisure to business logistics ones, just to mention a few. In this day and age you have the internet and social media to leverage on. So you must have a robust online presence because most people now look-up services online. Always carry out far-reaching digital marketing campaigns. Also bear in mind that your vehicles are in themselves the most effective marketing tool. They are more strategic in that they’re mobile and get exposed to many people as they move about. The cool thing about that is that it’s virtually free marketing so invest into having your vehicles branded and laden with all pertinent details about your services. Potential areas of operations include city centres, hospitals, airports, shopping centres, residential areas, universities, night clubs, tourist centres, hotels and lodges. The meter taxi transport business plan should include a proper marketing strategy for your business.
Keys to Profitability
Achieving profitability in the competitive meter taxi business in South Africa necessitates a multifaceted approach that encompasses several critical factors. Firstly, efficient fleet management is paramount. Maintaining your vehicles in top condition not only reduces repair costs but also minimizes downtime, allowing you to maximize the number of trips your fleet can undertake each day. Effective scheduling of drivers and vehicles is equally vital to boost revenue potential.
Pricing strategy plays a pivotal role in profitability. Striking the right balance between competitive rates and profitability is essential. Regularly monitor and adjust your pricing to remain competitive within your market. Flexibility in pricing during peak and off-peak hours can help attract a broader customer base. To ensure success, invest in marketing and branding efforts tailored to your specific location. This may involve local advertising, partnerships with nearby hotels and businesses, and establishing a strong online presence. Building a recognizable brand image can help set your service apart in a crowded marketplace.
Exceptional customer service is a powerful tool for both attracting and retaining customers. Train your drivers to be polite, professional, and to provide a safe and comfortable experience for passengers. Implement a feedback system to address customer concerns promptly and foster positive word-of-mouth. Cost control is another critical aspect of profitability. Vigilantly manage operating expenses, with a particular focus on fuel costs, which can be a significant portion of your budget. Explore options such as fuel-efficient vehicles and driver behavior monitoring to reduce fuel consumption. In addition, regular vehicle maintenance can help prevent costly repairs. By embracing these key principles and continuously seeking ways to enhance your service, you can navigate the challenges of the meter taxi industry and build a profitable and sustainable business in South Africa.
Advantages of Meter Taxi Business in South Africa
Commencing a meter taxi business in South Africa presents a range of compelling advantages for entrepreneurs seeking to enter the transportation industry. One of the primary benefits lies in the consistent demand for transportation services throughout the country. Whether it’s daily commuting, airport transfers, or leisure travel, there’s an ongoing need for reliable and safe transportation, ensuring a steady customer base. Moreover, South Africa’s diverse population, encompassing local residents, tourists, and business travelers, offers the opportunity to serve a wide spectrum of clients, enhancing the business’s revenue potential.
Flexibility is another key advantage of meter taxi services. These businesses can operate 24/7, providing the adaptability to cater to customers at any time, day or night. This versatility not only accommodates varying customer needs but also allows operators to tap into both daytime and nighttime markets effectively. As the meter taxi business grows and establishes a strong reputation, there’s potential for expansion into new locations or cities within South Africa’s urban landscape, offering room for gradual scalability.
Furthermore, meter taxi services often boast competitive pricing, making them an attractive choice for cost-conscious customers when compared to other forms of transportation, such as ride-sharing services. Additionally, the local knowledge advantage possessed by meter taxi operators allows them to navigate traffic efficiently and provide passengers with valuable insights about local destinations. Overall, the meter taxi business in South Africa offers a combination of stability, flexibility, and growth potential that can be harnessed with the right strategies and commitment to service excellence, making it a promising entrepreneurial endeavor in the country.
PRE-WRITTEN METER TAXI BUSINESS PLAN (PDF, WORD AND EXCEL): COMPREHENSIVE VERSION, SHORT FUNDING/BANK LOAN VERSION AND AUTOMATED FINANCIAL STATEMENTS
For an in-depth analysis of the meter taxi business in South Africa, purchase our meter taxicab business plan. We decided to introduce the business plans after noting that many South Africans were venturing into the taxi cab business without a full understanding of the industry, market, how to run the business, the risks involved, profitability of the business and the costs involved, leading to a high failure rate of their businesses.
Our business plan will make it easier for you to launch and run a meter taxi transport business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as the taxicab transport business plan will lay out all the costs involved in setting up and running the meter taxi business. The business plan is designed specifically for the South African market.
USES OF THE METER TAXI CAB BUSINESS PLAN (PDF, WORD AND EXCEL)
The meter taxi transport business plan can be used for many purposes including:
- Raising capital from investors/friends/relatives
- Applying for a bank loan
- Start-up guide to launch your taxicab business
- As a meter taxi project proposal
- Assessing profitability of the meter taxi business
- Finding a business partner
- Assessing the initial start-up costs so that you know how much to save
- Manual for current business owners to help in business and strategy formulation
CONTENTS OF THE METER TAXI BUSINESS PLAN (PDF, WORD AND EXCEL)
The business plan includes, but not limited to:
- Market Analysis
- Industry Analysis
- 5 Year Automated Financial Statements [ Income statements, cash flow statements, balance sheets, monthly cash flow projections (3 years monthly cash flow projections, the remaining two years annually),break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortisation]
- Marketing Strategy
- Risk Analysis
- SWOT & PEST Analysis
- Operational Requirements
- Operational Strategy
- Why some South Africans in the meter taxi business fail, so that you can avoid their mistakes
- Ways to raise capital to start your meter taxi business in South Africa
The Meter Taxi Business Plan package consist of 4 files
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- Meter Taxi Business Plan Funding Version – Editable Word File (Short version for applying for a loan – 42 pages)
- Meter Taxi Business Plan Automated Financial Statements – (Editable Excel file)
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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
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Taxi Business Plan
Start your own taxi business plan
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.">
City Taxi is a San Francisco, CA based company, whose mission is to provide reliable, timely, and safe cab services by using complete, in-car credit and debit card access, along with computer-aided dispatch. The company will establish its presence in the industry by acquiring an existing taxi cab association, Mighty Cab, a family-owned business that was formed 12 years ago.
City Taxi will provide complete taxi cab services using the latest equipment and technology to facilitate the travel of individuals in and around the San Francisco area. The company’s products and services show that we are an innovative, forward thinking company that recognizes the need to move with ever-changing customer needs. At City Taxi, our philosophy is one that emphasizes service, and a realization that effective communication is a key component in our business. The company also realizes that, in a competitive environment, flexibility and professionalism maintain that leading edge.
The company has drivers and employees that are helpful, courteous, and fully trained on the use of the computer dispatch system. As an added safety measure for both drivers and passengers, City Taxi cabs are fitted with Global Positioning Systems (GPS), which enable the cabs to be tracked or located in an emergency. All City Taxi cabs will be clean, well maintained, and inspected regularly for safety and comfort.
The company’s strategy is to build reputation and market share by establishing our business offering as a viable alternative to existing taxi cab services in the area. The company’s goal in the next year is pursue an aggressive marketing campaign and from that, penetrate at least 65% of the market share. The company’s long-term goal is be the top rated ground transportation company in San Francisco.
The company’s emphasis is on the dispatch, mobile data, and credit/debit card markets of the taxi industry. In aggregate, these markets are believed to represent potential sales in excess of $119 million as of March 1999. Within these markets, City Taxi will focus on the more lucrative credit card/debit card segment. This segment, when introduced into any area, has started out slow but over a three-year period has increased by 20% each year in Maryland and Virginia, and by 25-35% in New York each year.
Companies with whom City Taxi competes are Transportation, Inc., Capital Cab, Yellow Cab, and Diamond Cab. Their weaknesses are that they do not have the credit/debit card payment option, and some still use the radio dispatch system. The company has a competitive advantage, however, because our technology is unique to the taxi industry in San Francisco. The GPS will enable the company to provide timely service by giving an accurate estimated time of arrival (ETA). The credit/debit card feature will give customers convenience and privacy during the transaction period.
Reliable communications are essential under all circumstances in this business. As such, City Taxi will use the KDT 5000 system. The KDT 5000 system design provides multiple levels of reliability to assure communications will be maintained under the most rigorous condition. The company will also run a state of the art call center that will be established by Rockwell International.
The company is seeking $2.5 million of financing to fund the acquisition of Mighty Cab Association and its initial operations. This funding will cover the purchase of Mighty Cab, marketing, purchase of extra vehicles, software, and hardware. Projected revenues for 1999 to 2001 are $200,000, $1.5 million, and $2.2 million, respectively.
The company’s goal in the next year is to pursue an aggressive marketing campaign and from that, penetrate at least 65% of the market share. The company’s goal in the next two to five years is be the top rated ground transportation company in the San Francisco Metro Area by continuously monitoring, evaluating, and following up on customer call-ins.
Key components of City Taxi’s initial strategy can be summarized as follows.
Establish Relationship with Rockwell International. The company is currently working to establish and develop a working relationship with Rockwell International. This will enable City Taxi to lock into the many services that they offer including, but not limited to:
- Continuous improvement
The mission of City Taxi is to provide reliable, timely, and safe cab services by using complete in-car credit/debit card access, along with computer aided dispatch.
Highlights of City Taxi
- Exclusive rights to software . City Taxi has the exclusive rights to the latest taxi cab software in San Francisco.
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- Business Plans Handbook
- Business Plans - Volume 05
- Taxi Service Business Plan Business Plan
Taxi Service BUSINESS PLAN
27000 Kingsborough Ave. Toledo, OH 32311
This businsess plan presents a persuasive and innovative system for organizing and running an alternative taxi service. An entrepreneur with a new improvement on a traditional business will find this plan's clear logic instructive. Note the comprehensive overview of industry practices and their shortcomings.
Business orientation, marketing plan, attracting customers, company organization, proposed method of financing, revenue and cash flow projections, start-up costs, financial data.
The mission of Lakeview Taxi is twofold. The first mission is to serve the general public in a fair and honest way. The second is to do this from a Christian perspective. While performing these tasks, it is hoped for and expected that a decent profit will be gathered from our efforts. There are many problems with the current taxi organizations in existence and it is hoped that by adding an alterantive to the services out there, the public will really appreciate our efforts.
The business of Lakeview Taxi will be transportation. Not just taxi service, but package delivery and other types of transportation such as Go Bus (a federally sponsored program) and even Ambucab (transportation on for the elderly) type services. The taxi service will be located in Toledo, Ohio in an office located on South Williams avenue.
The amount of taxi business in the Toledo area is strong and growing. The population in the greater metropolitan area exceeds 500,000 people and the community is dynamic and getting more vibrant with each passing day. The entire area has a low unemployment rate, a diversified economy, and wonderful year round events which attract tourist dollars and people to the region.
A taxi comapny attracts two main types of business. The first type is a commercial charge account business, and the second is direct consumer business. The commercial accounts usually have either package delivery or pay for passengers as their main function and are usually charge accounts. The direct consumer accounts are people from throughout the city who need taxi service for various reasons, to run errands, get to work etc. Consumer accounts are usually cub accounts and payable immediately. The customer never comes to the place of business of the taxi service, all taxis are dispatched to the customers place of business and the sole representative view that the customer has of the taxi service is through the cleanliness of the vehicle and the driver, and the promptness of their response. Any value added services just enhance these basic considerations of the customer.
Need for Services
There is a pressing need for reliable public transportation in the Toledo area, Bus service is not a viable option for many people due to the limited scope of operation of bus service in the area. The buses here do not run very long during the day and they are very restricted as to routes and times during the weekend and off-peak times. As a result, public transportation is always needed for those whom the bus cannot serve.
Not only is there a strong and growing industrial base in the region, the city has been quietly developing the downtown area for quite some time. New projects are being planned and built daily and the entire downtown property is expanding at a very fist rate. In the last ten years, there has been an explosion of new venues which have attracted people to the downtown area. The city has recently seen the implementation of several sports franchises, an auto race, expanded concert venues, hotel construction, and are planning a downtown convention center which should pull in business from the surrounding cities in Ohio and throughout the United States. A state-of-theart cancer research center is also being developed in addition to the world's first mall for children. Toledo is a city of opportunity and that expansion and growth fuels the need for more reliable transportation.
There are currently three other taxicab companies in the area. Each company is severely flawed and yet still manages to generate incredible amounts of revenue. Only one company, Maumee Taxi, the largest one, could be considered serious competition. This firm is prosperous and quite skillful at handling large numbers of clients. They currently have 56 taxis in their fleetand have most of the prestigious accounts in town. The other two companies still manage to thrive in spite of the fact that they have much smaller income bases and essentially are driving outdated equipment in poor condition. During busy times, none of the companies can keep up with demand and customers have been known to wait for up to four hours. During normal operating scenarios, wait times still range from approximately twenty to thirty minutes. This wait time is unnecessary and quite destructive to customer support. Taxi companies typically do not fail in this area. Other cities have a higher turnover of taxi companies, but they usually have a much larger presence. Metro Columbus has a population base of one million and 14,000 cabs. Toledo has a population base of 500,000 and 150 cabs. That is quite a difference. The reason for such a large spread is that Toledo is an affluent area and taxi service is not as pressing as in the impoverished areas surrounding Columbus. Another reason is that only recently has Toledo developed a significant downtown business. As the downtown continues to develop, taxi service will be required to increase exponentially.
The current image of a taxi driver in Toledo is not a pleasant one. Drivers are looked at as unprofessional and discourteous. One reason that this is true is the nature of the business. Most taxi companies operate in the best and the worst areas of town and drivers have to deal with a wide variety of people. The drivers that are hired are not professional and are given virtually no training before they are sent out to deal with the public. Lakeview Taxi can change that. Training costs can be reduced through an apprenticeship program. Drivers can ride with several drivers and learn all of the necessary skills without incurring a large cost. In addition, training materials can be written down and provided at the start of training and a simple test can be administered to gauge the skills obtained by the driver. Knowledge of the city, command of the English language, and knowledge of charge account operations would go a long way towards improving the basic professionalism of the driver. Uniforms which are both comfortable and easy to maintain would also strive to complete the look that the public deserves and should expect. Of course, cleanliness of the cars is a must. A monthly inspection of vehicles would eliminate a large number of problems associated with operating a fleet and would ensure that the licensing authority would not bother with inspections of their own. We can control the image of Lakeview Taxi and it is possible to do so with a minimum of intrusiveness.
Pricing is fixed by the city using regulated meters. Prices can fluctuate when the city council votes for a meter rate increase. Increases are usually annual and as a result, meter errata are high in the Toledo area and need minimal adjustment. The only meter problem would actually be the problem associated with metered waiting time. A factor that could be adjusted quite easily. Flag drop is currently 1.65 and the rate is then .17 per click every 1/9th of a mile. This rate is quite reasonable and is a good value to the customer as well.
Most taxi companies currently do not offer to take major credit cards. This is a huge mistake and there are a wide range of people who would use taxis more if this simple problem could be eradicated.
Customer service is a priority at Lakeview Taxi. The customer cares most about the promptness of the taxi that he or she is riding in. One way to ensure that customers would be served in a much better fashion would be to implement a zoned taxi dispatch system. A zoned system is essentially a first come/first served system of dispatching that eliminates much of the delay that occurs during ordinary dispatching. There are no real drawbacks to the system except that it would take a short while for drivers to get used to such a system. It is the quickest and easiest way to operate a taxi company. The current system, which relies on the closest cab to an order bidding on the order, means that orders are constantly being held up while the bidding takes place. It also means that orders are much more selective. Selecting a specific order is fine for the the driver, but it is a slow process that inconveniences the customer. If the drivers were switched over to a different system, in the long run, they would actually make more money and the entire system would speed up immensely.
Advertising is minimal in the taxi service business, but could be maximized with the use of a little creativity. Currently a yellow page ad listing is the only necessary requirement to generate business. Many customers will immediately try the new taxi company in town to see if it has a faster response time than the other services in the area. Other people will try the new service if favorable word-of-mouth advertising is received. A large pool of customers is always available for a new company to have. In fact, most services that start up actually have a problem keeping up with the large volume of orders that come with just opening the doors to business. That pattern has repeated itself with each new taxi business that has developed within the last ten years.
Customers could be lured to try a new company by the use of incentives. It is illegal to charge more than the regulated price on taxi fares. It is not illegal to give a discount for first time riders of the service and it would strongly enhance repeat business to do so. Also, customers could be lured by giving away an occasional free ride or by using coupons distributed in the Advance Newspaper or the Toledo Press. These coupons could also be distributed in the taxis themselves as any driver who had a passenger could pass one out and any driver who did not have a fare could stop at local businesses and pass them out. That technique has been tried before with amazing success. However, as soon as the taxi company gets a steady base, all sales activity seems to stop. The company starts to generate sales so high they cannot handle the volume. In fact, most new companies lose business because they are too successful.
A satisfied customer in the taxi business will stay with that company for a long period of time. Sometimes as long as twenty years. Once a customer is satisfied, it is hard to get them to switch companies. Any measure of reasonable success recognizes that the repeat or "regular" customer is the one we all strive to get and maintain. There are a lot of ideas that have not been implemented simply because the business is so strong in this area. Hotels are constantly asking that cabs service them and hotels need shuttles for their overnight guests. A taxi company that catered to this market would do extremely well.
Additional Sources of Revenue
Even though taxi companies are by and large successful, they could be made even more so by adding additional revenue streams. Taxis can be painted with advertisements and turned into independent marketing venues of their own. Drivers could pass out flyers and could direct customers to certain establishments that had a reciprocal relationship with the company. Value added services could include food deliveries and other types of deliveries that other companies make on a routine basis. The horizon is truly unlimited when it comes to the taxi business. A little creativity would go a long way in furthering that horizon.
OPERATIONS: ADVANTAGES OF TAXI BROKERING
Taxi brokering is a unique concept. It allows drivers to own their own vehicles and operate them in a manner consistent with the company's policies and procedures. The standard practice for most taxi companies is to have each driver be an independent contractor and not an employee. The IRS has upheld this practice as standard in the industry. Many times, however, a taxi company and other companies treat their independent contractors as employees and they expose themselves and their company to massive tax liability if a tax ruling should happen to go against them. This is not wise policy, but it certainly exists in most taxi companies in the United States. There is a way to avoid liability and yet still maintain reasonable control over the drivers through applying the principles of taxi brokering. When a driver owns his or her own vehicle, there is an enormous savings to be had at all levels in the company. The advantages are spelled out below.
Overhead is reduced enormously when the company does not have to own and operate a fleet of vehicles. The savings on maintenance costs alone justifies using this tactic. In addition to direct cost savings, there is an operation personnel cost savings as well. There is no need for mechanics, no need for a scheduler, in fact, office staff can be reduced to a point where it is almost not necessary.
The high turnover rate that plagues the industry is entirely avoided. Brokers are responsible for procuring their own drivers and even if it becomes difficult for them to locate drivers, the broker simply works more time during his shift to make up the difference. Almost allpersonnel problems are avoided when utilizing brokers.
Shifting Ownership Burden
Brokers take care of their own vehicles. There is no hassle associated with keeping vehicles on the road and no responsibility for ensuring cleanliness. That burden is borne entirely by the broker and most brokers in the past have shown that they have a high regard for their vehicles and they have every reason to keep them running and in good condition. In fact, inspecting the fleet becomes much easier for management when they do not have to attend to the myriad of other details that goes into running a company-owned fleet.
Better Drivers Result
Brokers tend to be careful drivers. It is their equipment, so they tend to treat it more carefully and have a better understanding of any drivers that they hire to work under them. As such, insurance rates will eventually go to show that careful drivers translates into lower costs for everyone involved. Further, insurance costs can also be minimized by reducing the collision coverage for vehicles. Part of the operational costs paid for by the brokers could be used to maintain a collision fund to help pay for repairs when needed while greatly reducing insurance costs, which shall be discussed in further detail shortly.
Because brokers help so much to reduce costs across-the board, operational fees (the cost charged to the broker on a daily or weekly basis) can be reduced to an absolute minimum. This ensures that most brokers will succeed in their investment and will have an added incentive to add taxis at their earliest opportunity.
Rotating Dispatch System
With brokers acting as owner-operators, another unique opportunity presents itself for use, that of eliminating a paid dispatch system. Since brokers are experienced drivers and have an investment in the company, they can be utilized as dispatchers for the company. Once again, the cost savings are substantial and using brokers as dispatchers is a good way to promote a solid working relationship among the members of the company. Teamwork is a foreign concept to many drivers now working under exploitive conditions. Having brokers dispatch taxis while using a zone system is not only workable, but more equitable to the drivers because it reduces the possibility of corruption and gives them an opportunity to be continuously trained in all facets of the business.
The company shall be organized with the president of the company overseeing total operations and the vice-president or operations director handling administrative duties. There may or may not be office personnel to contend with, but that will all be handled administratively by thevice-president or operations director. There is no need for mechanics, dispatchers (if using rotating dispatch set-up), or schedulers. All of those duties would be eliminated by the change in company structure resulting from using a brokered system..
Conventional bank financing seems likely due to the collateral that can be presented as security for the loan. This loan security should be enough to get the financing necessary to fund the startup. In the unlikely event that it does not, a private stock distribution could provide for optional financing.
Operational Fees and Their Impactand
The revenue from taxi operations is relatively easy to project. All revenue is based on one factor, the operational fee charged to the brokers. The initial figure given for start-up purposes is $250.00 per week per vehicle to be paid on a daily $50.00 basis for five days. This is $90.00 a week less than all of the other companies in town and is highly competitive. Not only that, but since the fleet would be comprised entirely of brokers, this fee could be adjusted downwards from the first day of operation. When brokers in other companies see lower fees at Lakeview, they will be inclined to bring their cars over. Any time fees were further lowered, a ripple effect would be likely to occur and make bringing over brokers from other companies highly likely. Because the competition could not compete with these lower fees due to their much higher cost structure, they would be placed under tremendous pressure just to continue operations. Bringing over brokers would also mean automatically attracting more customers as some drivers bring with them a certain volume of customers. There is no telling how low operational fees could go with enough volume.
The revenue formula for Lakeview Taxi is as follows:
$250.00 x number of vehicles x per week = total revenue per week
The competition (one company) is currently running 56 taxis in the Toledo area. Using the above formula, we arrive at a revenue of $14,000.00 per week, or $56,000 per month, or $728,000.00 per year. Even though the start-up number of taxis would be closer to 10 vehicles, there is still a weekly gross profit potential of $2500.00 or $10,000 per month. Given Toledo size and potential development, it could easily support a taxi fleet of 300 or more within five years. The potential is there and growing every day.
Cash flow in a taxi company is good. The revenue is dependable and stable and is affectedby only a couple of problems. One is that some cars have to be given downtime to help with time spent off of the road. Usually only a token amount is collected. This is a minor factor, but worth mentioning from a cash flow standpoint. This factor is mitigated somewhat by the way fees are charged. Because they are due on Friday for the previous five days, weekends are always free for drivers and many would see that time as an ideal opportunity to effect repairs on their vehicle. Of greater concern is the charge account problem. Drivers and brokers alike are used to receiving their money or credit for charges right away while the charge accounts sometimes have a thirty or sixty day turnaround. This problem could be solved or lessened in one of several ways. Those ways are examined below:
Charge customers could be assessed a fee for the extension of credit by the taxi company. Extending credit is not as necessary as in the taxi business as in some industries; however, a significant portion of package revenue does come in the form of charge accounts, so it is useful to a degree. The fee could be nominal, in the 5% to 10% range for most customers. This money would be placed in a pool to fund payout to brokers and drivers.
Brokers could be assessed a fee ranging from 10% to 15% of the charge and that money could be used in the same pool as the one described previously, giving the charge pool a combined rate of 15% to 25%. This pool would be self-financing and would soon build up an incredible reserve of equity in the company. Not only that, but interest derived from the pool could be used as an additional revenue stream down the road. Charges would, out of necessity, have to be small at first and build volume as the fund pool grew of its own accord.
Charges could be delayed pending payment by the customer. This would be the most unattractive option since the paperwork generated and the broker dissatisfaction would work against this option. A legitimate argument could be made for delaying payment, but this would likely become a contentious issue if presented.
Despite the problems just presented, for the most part, cash flow is easier to manage in this business than in many others, and cash flow at Lakeview Taxi would help get the business launched and running with almost instant revenue at start-up.
An additional source of revenue at start-up is the down payments brokers must make to place vehicles on the road. Brokers are currently paying $2000.00 per vehicle at the competition to put a car on the road. These down payments are supposed to cover insurance, cost of radios and meters, and miscellaneous expenses. The fact of the matter is that this is an additional source of revenue for the company at start-up because the costs associated with placing a vehicle on theroad are often much less than what is charged to the broker.
The start-up costs for running a taxi company is high for several reasons. These reasons are explained in detail below:
Insurance : This is the highest cost factor involved in running the taxi company and the greatest hindrance in getting started. Taxis are usually insured at a rate high enough to account for a weekly charge. Taxi insurance is hard to obtain and is billed at between $60.00 and $100.00 per week to the company. This type of coverage is not even first class insurance, as the market for this type of insurance is so small. Other companies' careless use of taxi insurance has lead to the high rates. It is a challenge coming up with the premium down payment, which is usually set at around 20% (partially offset by broker down payments) of the total annual policy. Once insurance is obtained, however, the Lakeview Taxi system would eventually drive rates down in regards to our particular company due to the careful screening and other safe driving incentives mentioned earlier. Still, the obstacle is formidable, but not insurmountable.
Licensing : The cost of licensing is roughly $3000.00 per year and is not a problem if all of the taxis are painted and equipped for inspection.
Office Costs : Would be minimal. The customer never sees the office and therefore the primary consideration for space is simply a location with plenty of parking. The cost for space like the type that is being described here would be roughly $1000.00 per month.
Radios : This cost would also be borne by the broker at start-up, and would be minimal for the company.
Tower and Frequency Allocation : Would be minimal due to the fact that all tower operators wish to have their radio equipment purchased and will cut down the cost of tower space for exclusive purchasing of their equipment.
Meters : Are paid for by the brokers and installed by a servicing company. The meters are then set at a rate determined by the city.
Miscellaneous Costs : Will be estimated and broken down separately.
The following financial data is presented as basic information and is not as complete as that following a financial audit by a certified professional. Please bear in mind that the data presented is only an estimate.
Lakeview Taxi is a viable service company that could provide great benefits to the city and generate large profits for the owners. It is completely possible to start this business with a small investment and produce large returns soon after its inception. The writers of this plan urge you to review the following information and if there is any that you feel is incomplete or inexplicable, please bring it to our attention. We can provide for transportation needs of the city not only now, but in years to come. Thank you for taking time to review this plan.
Profit and Loss By Month
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Taxi Business Plan [Sample Template]
By: Author Tony Martins Ajaero
Home » Business ideas » Transportation Industry » Taxi
Are you about starting a taxi business ? If YES, here is a complete sample taxi business plan template & feasibility report you can use for FREE .
As regard starting a business in the transportation sector especially a business like taxi Company could be fun, profitable and interesting for someone with business sense, perseverance and smartness. With comfortable taxis, the right location, top-notch service and good marketing, you can serve large customers who require the services of taxi Cab Company to be able to move from one location to another for an affordable price.
It is important to note that starting a standard taxi cab business with over a handful of taxis and drivers also needs a significant investment capital, solid planning, and concentration to detail in order to keep your business profitable.
The truth is that, if you are serious about starting a standard taxi 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 detailed and workable business plan if indeed you want to build a successful and profitable taxi cab company from the scratch.
The taxi company business plan template below will guide towards drafting your business plan with little or no stress.
A Sample Taxi Business Plan Template
1. industry overview.
A taxi cab cum limousine Services Company provides comfortable and private transportation via automobiles (usually sedans / cars) for passengers. Taxi services are not operated on regular schedules or routes like the usually buses or car that pick several passengers along the road. So also, limousine services are rented or hired with a driver.
The Taxi and Limousine Services industry has experienced remarkable growth over the years in the united states. The growth of the US economy has indeed directly benefited the industry as business expense accounts have grown and clients have been more willing to spend on small luxuries such as taxi and limousine rides.
In addition, increased demand from corporate travelers, tourists and private households is expected to result in steady growth for this industry.
The Taxi and Limousine Services industry is indeed a very thriving industry in most countries of the world. It is a major sector of the economy of the United States and it generates a whooping sum of well over $20 billion annually from more than 338,882 registered and licensed Taxi and Limousine services companies scattered all around the United States of America.
The industry is responsible for the employment of well over 413,046 people (drivers and administrative staff members). Experts project the supermarket and grocery industry to grow at a 6.7 percent annual rate. There is no establishment in this industry that has a dominant market share in the United States.
A research conducted by IBISWORLD shows that the Taxi and Limousine Services industry is in the mature stage of its life cycle.
Industry value added (IVA), which measures the industry’s contribution to GDP, is also expected to grow at an average annual rate of 5.3 percent within the next 10 years. Within that same period, GDP is estimated to increase by 2.1 percent per year on average.
Basically, the industry demand is usually influenced by disposable income levels corporate profit and domestic trips by US residents. When it comes to advertising your taxi cab cum limousine services company, there shouldn’t be any limit to how far you can go.
You could start with handbills and distribute them in corporate 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 cum limousine services businesses all over the world are still enjoying good patronage particularly if they have comfortable taxis, professional drivers and if they are well positioned and if they know how to reach out to their target market (corporate organizations, hotels, travels and tours companies, government and household et al).
2. Executive Summary
Metro 24 – 7 Taxi®, Inc. is a standard, licensed and registered Taxi cab cum Limousine Services Company that will based in Miami Beach, Florida – United States of America and we will have active presence in other cities such as Green acres City, Miami, Jacksonville, Clearwater, Tampa, Fort Lauderdale, North Miami, West Palm Beach, Palm Harbor, Deltona, Orlando, Palm Bay and Panama City et al.
We chose to operate in these cities because we know that our services will be in high demand due to the demographic composition of Florida.
We are well trained and equipped with some of the finest taxi cab drivers and comfortable cars to service our clients irrespective of their social and financial status. Our services will involve taxi services, taxi leasing and other car services, luxury and corporate sedan services, stretch limousines and buses, SUVs and large vans rental services et al.
Although our intention of starting Metro 24 – 7 Taxi®, Inc. is to offer only the above stated services, but we will not close our doors to diversification (additional services) as long as it does not affect our core services.
At Metro 24 – 7 Taxi®, Inc. we are passionate in the pursuit of excellence and financial success with uncompromising services and integrity which is why we have decided to start our own taxi cab and limousine service business; we are in the industry to make a positive mark.
We are quite optimistic that our values and quality of service offering will help us drive Metro 24 – 7 Taxi®, Inc. to enviable heights and also help us attract the numbers of clients that will make the business highly profitable. We are a company that will be dedicated to establishing good business relationship with our clients giving them value for their money and reasons for them to hire our services over and over 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 cum limousine 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 agencies, 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.
We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients. Metro 24 – 7 Taxi®, Inc. is owned and managed by Kennedy Williams and his friend and business partner for many years Henry Sean.
They both graduated from University of California and they are well – equipped with the required qualifications and experience to grow Metro 24 – 7 Taxi®, Inc. to favorable compete with leaders in the Taxi and Limousine Services industry both in the United States of America and in the world at large.
3. Our Products and Services
Metro 24 – 7 Taxi®, Inc. is a standard and well – equipped taxi cab and limousine services 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 the United States of America to achieve our business aims and ambition. Our services offering are listed below;
- Providing limousine services
- Providing luxury sedan services
- Providing chauffer and personal driver services
- Taxi services, taxi leasing and other car services
- Stretch limousines and buses
- SUVs and large vans
- Providing corporate sedan services
4. Our Mission and Vision Statement
- Our vision is to become the number one taxi cab and limousine services company in the whole of Florida with active presence in key cities all around the State of Florida.
- Our mission as a standard taxi and limousine services company is to develop a highly successful, profitable business which provides quality automobile transportation services in our city and to become a standard for an ideal taxi and limousine services business not only in the State of Florida but also throughout the United States of America and Canada where we intend launching our business and selling our franchise.
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 cum limousine Services Company on the right business foundation.
As a matter of fact, we are set out to build a taxi and limousine Services Company that will be a standard for an ideal taxi and limousine services industry in the United States of America and Canada. We want to build a business of dedicated workforce who will go all the way to ensure that our customers are satisfied and they get value for their money.
In other to achieve this, we 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 autopilot.
The success of our taxi and limousine services company will be anchored on the team not on any individual – drivers and back office staff members inclusive. With the wide range of our service offerings, we are only expected to employ more than it is required to run a conventional taxi and limousine services business.
Definitely, we will have various employees (full – time and contract staff) to man the various services offering of Metro 24 – 7 Taxi®, Inc. Metro 24 – 7 Taxi®, Inc. will employ professionals and highly skilled people to occupy the following position;
- Chief Executive Officer
Admin and HR Manager
Marketing and Sales Executive
- Professional Drivers (Taxi and Limousine 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; providing educational opportunities.
- 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
- Responsible for installation, repair and maintenance of GPS car tracking device for the organization
- Responsible for writing and presenting reports, proposals, applications and contracts
- In charge of choosing the GPC car tracker components and software to be used and specifying the requirements for the project
- Adapts plans according to circumstances and resolving any problems that may arise during GPS car tracker installation and monitoring
- 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 staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
- Oversee 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.
- Writing 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 evaluates new plans for expanding increase 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
- Ensures compliance with taxation legislation
- Handles all financial transactions for the company
- Serves as internal auditor for the company
Professional Drivers (Taxi Cab and Limousine Drivers)
- Serves as a professional driver for the organization by driving sedan and limousine et al as assigned by the management
- Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the 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 items 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 Service 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 products and 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 products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
- Receives parcels / documents for the company
- Distributes mails in the organization
- Handles any other duties as assigned my the line manager
6. SWOT Analysis
Taxi cab cum limousine services 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 cum limousine services business with the plans to sell our franchise all across the United States of America and Canada which is why we have decided to subject our business idea (company) to SWOT Analysis.
Ordinarily we can successfully run a normal taxi and limousine services business without the stress of going through the required protocol of setting up a new business including writing a detailed business plan, but because of the fact that we intend becoming of the leaders in this line of business we want to establish, we don’t have any option other than to follow due process.
We hired the services of Mrs. Lillian Jacobs, an HR and 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 Metro 24 – 7 Taxi®, Inc.;
The strategic locations we intend covering, the Business model we will be operating on, ease of payment, 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 count as a strong strength for Metro 24 – 7 Taxi®, Inc.
So also we have a well – experienced and 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 the fact that we are a new taxi cum limousine services company and we don’t have the financial capacity for now to compete with multi – million dollars taxi and limousine services companies that are already influencing the direction of the industry.
The fact that we are launching out in the heart of Miami – Florida, 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 et al.
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 can and limousine services.
Another threat that may likely confront us is the arrival of a new taxi cab and limousine services company with same locations where we operate. Government policies can also pose a major threat to businesses such as ours.
7. MARKET ANALYSIS
- Market Trends
The market for luxury services such as taxi and limousine services is driven by the growth in the economy and the increase in consumers’ spending – in essence, as the general economy of a country grows, more people will have enough financial resources to patronize luxury services such as making use of taxi can or hiring limousine as against making use of public buses, and trains et al.
Besides, revenue generated by taxi and limousine services company is driven by business and leisure travel. No doubt, the profitability of operators in this industry depends on good marketing and networking.
As a matter of fact, small taxi cab companies can effectively compete with large ones because there are few economies of scale in this line of business. Research shows that the taxi cab and limousine services industry in the US is fragmented: the top 50 companies account for less than 35 percent of the total revenue generated in the industry.
Lastly, technology has indeed played a major role in this industry; especially in cutting cost and enforcing safety and monitoring measure.
GPS car tracking device readily comes to mind. There is hardly any taxi cab and limousine services company that does not have GOS car tracker installed on all their cabs. It helps them in monitoring their fleets and also in planning and budgeting et al.
8. Our Target Market
Before choosing a location to launch our taxi cab and limousine services company, we conducted our feasibility studies and market survey and we were able to identify those who will benefit greatly from our service offerings.
Basically those who will benefit from our service offering are households, corporate organizations, travels and tours agencies, hotels and government agencies. Below is a list of the people and organizations that our taxi and limousine services are designed for;
- Celebrities and public figures
- Even planners (limousine rental services for wedding and social functions)
- Travels and Tours Agencies
- The public sector; government ministries, agencies and parastatals.
- Organized private sector
- Corporate Executives
- Business People
Our Competitive Advantage
Taxi cab and limousine services business is an easy to set up business 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 and limousine services 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 Miami – Florida.
Our competitive edge is that we are a standard and well equipped taxi cab and limousine services company that is positioned to handle both corporate clients and individual clients.
We can confidently say that the strategic locations we intend covering, the Business model we will be operating on, ease of payment, 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 Metro 24 – 7 Taxi®, Inc.
For the time being, Metro 24 – 7 Taxi®, Inc. has no real competitors that can match compete with the quality of services we offer and our business offerings et al. 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 (startups taxi cab and limousine services businesses in the United States) 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 business aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Metro 24 – 7 Taxi®, Inc. is established with the aim of maximizing profits in the taxi cab and limousine rental services industry and we are going to go all the way out to ensure that we do all it takes to attract both individual clients and corporate clients on a regular basis.
We will ensure that we leverage on our strength and the opportunities available to us in the U.S. 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 and Limousine rental services industry. Below are the sources we intend exploring to generate income for Metro 24 – 7 Taxi®, Inc.;
- Stretch limousines and buses rental services
- SUVs and large vans rental services
10. Sales Forecast
One thing is certain, there would always be corporate organization and individual clients who would need the services of taxi and limousine rental services companies.
We are well positioned to take on the available market in Miami – Florida and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our taxi cab and limousine rental services business and our clientele base.
We have been able to critically examine the taxi cab and limousine rental services market and 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 Miami – Florida.
Below are the sales projections for Metro 24 – 7 Taxi®, Inc. it is based on the location of our business and of course the wide range of related services that we will be offering;
- First Fiscal Year-: $240,000
- Second Fiscal Year-: $450,000
- Third Fiscal Year-: $950,000
N.B : This projection is done based on what is obtainable in the taxi cab and limousine rental services industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same additional services as we do within 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 Metro 24 – 7 Taxi®, Inc. is going to be driven basically 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 referral from our satisfied customers.
We are quite aware of how satisfied customers drive business growth especially businesses like taxi cab and limousine rental services.
Metro 24 – 7 Taxi®, Inc. is a business that is strategically located and we are going to maximize the opportunities that is available which is why we spend 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 be well equipped to meet their targets and the overall goal of Metro 24 – 7 Taxi®, Inc.
Our goal is to grow Metro 24 – 7 Taxi®, Inc. to become the leading taxi cab and limousine rental services company in Miami – Florida which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with in the Taxi cab and Limousine rental services industry. Metro 24 – 7 Taxi®, Inc. is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our taxi and limousine rental services business by sending introductory letters alongside our brochure to corporate organizations, travels and tours agencies, hotels, event planners, households and key stake holders in all across Miami, Green acres City, Miami, Jacksonville, Clearwater, Tampa, Fort Lauderdale, North Miami, West Palm Beach, Palm Harbor, Deltona, Orlando, Palm Bay and Panama City et al
- 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
- Placing 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 customized services
- Advertise our taxi cab and limousine rental services company in relevant magazines, newspapers, TV stations, and radio station.
- 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
Metro 24 – 7 Taxi®, Inc. is set to establish a standard for Taxi cab and Limousine rental services business in Miami – Florida and throughout the United States 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 rule on how to advertise or promote a taxi cab and limousine rental services business.
The challenge is that most small and startups taxi cab and limousine services companies do not have the required money to pump into publicity and advertising. The cash they have will be reserved to take care of overhead and operational cost.
We will ensure that we leverage on all conventional and non – conventional publicity and advertising technique to promote our taxi cab and limousine rental services business. Here are the platforms we intend leveraging on to promote and advertise Metro 24 – 7 Taxi®, 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 stations and local radio station
- 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 Bill Boards on strategic locations in and around Florida
- Direct coupon mailing approach
- Engage in road show from time to time in target communities in and around Florida
- Distribute our fliers and handbills in target areas in and around Miami – Florida.
- 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 well branded with our company logo et al.
12. Our Pricing Strategy
Our pricing system is going to be based on what is obtainable in the taxi cab and limousine rental services line of business, 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 in the United States of America.
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 Metro 24 – 7 Taxi®, 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 the United States of America. Here are the payment options that Metro 24 – 7 Taxi®, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase 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)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.
As for the detailed cost analysis for starting a taxi cab and limousine rental services business; it might differ in other countries due to the value of their money. However, this is what it would cost us to set up Metro 24 – 7 Taxi®, Inc. in the United of America;
- The Total Fee for Registering the Business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits – $1,500.
- Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- Cost for hiring Business Consultant – $2,000.
- Insurance (general liability, car insurance, workers’ compensation and property casualty) coverage at a total premium – $30,800.
- The cost of accounting software , CRM software and Payroll Software – $3,000
- The cost for leasing standard office facility with enough parking- $100,000.
- The cost for facility remodeling – $10,000.
- Other start-up expenses including stationery – $1000
- Amount needed for phone and utility deposits – $3,500
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for Start-up inventory (fueling, car tracking devices and accessories) – $50,000
- The total cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Credit card machine, POS, tables and chairs et al): $4,000.
- The cost of Launching a Website: $600
- The total cost for financing the acquisition of the first set of cars and limousines – $500,000
- The cost for our grand opening party: $15,000
- Miscellaneous: $10,000
We would need an estimate of $750,000 to successfully launch our taxi cab and limousine rental services business in Miami – Florida.
Generating Funds/Startup Capital for Metro 24 – 7 Taxi®, Inc.
Metro 24 – 7 Taxi®, Inc. is a business that will be owned and managed by Kennedy Williams and his friend and business partner for many years Henry Sean. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources. These are the areas we intend generating our start – up capital;
- Generate part of the start – up capital from personal savings and sale of his stocks
- Generate part of the start – up capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $550,000 from our bank. All the papers and document has 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 numbers of loyal customers that they have and the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting Metro 24 – 7 Taxi®, Inc. is to build a business that will survive off its own cash flow without the need for 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 services a little bit cheaper than what is obtainable in the open market.
We are well prepared to survive on a low level profits margin for a short period of time. Metro 24 – 7 Taxi®, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are 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.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of ten years or more. 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
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the Needed pressure washing machines and industrial cleaning equipment, electronic appliances, office appliances and bar accessories: 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 et al: In Progress
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