7 Tips On How To Successfully Start And Run A Taxi Business
Clean running vehicles and excellent service delivery by a polite driver; these are the hallmarks of an ideal tax service business. Have you been thinking of operating such a business? Now that you know what defines a reputable taxi service company, the next question will be, how do you start one and keep it running.
But before you start worrying about this issue, below are a few tips that might help ease your mind as you consider venturing into the taxi service business. They might not be the answers to every question you have, but they may help convince you to have a go at it.
- Know Who’s Out There
As you make your plans to invest, you also should be aware of your competitors, and this is not limited to only other taxi services in your location. You should find out how many companies are operating in your region. Try to get their adverts, visit their websites, and even check out their social media accounts. You can ask around to know more about their rates and service quality. Do enough research to see what you will have to do differently to make passengers consider your taxi services over your competition.
Most importantly, find out if there is a need for more taxis servicing your area. Your town might be too small to have room for many taxi services companies, or the demand for taxis might not be high enough to make the venture profitable for you.
- Figure Out The Size Of Your Fleet
Are you thinking of starting with one car, and will you be the driver or employ one? Perhaps you have enough funds for several. Whatever your budget, you should consider getting vehicles that have the following qualities:
- Physically and visually clean and attractive
- Plenty of luggage space
- Runs without a hitch
- Modified to suit the taxi service
It might be wise to go for already-modified cars because you will eliminate the need to paint the vehicles or buy and install taxi signs and meters.
- Ensure Your Papers Are In Order
You must get business permits, and insurance coverage before your taxi services company is operational. You do not want to find your business on the wrong side of the regulating bodies that are mandated to conduct routine inspections, which can be done randomly. That is why all your papers should be ready for presentation when needed and up to date if you want to avoid being penalized.
You must find out the various permits required for your business to operate legally. Get the business license from the relevant government offices so that your company has a legally accepted and known specific name. The license is also essential for tax and accountability purposes.
You also should register and insure your vehicles. In as much as the insurance policies are not cheap, they are a must if your company is to offer the taxi services. The best thing to do is to compare and contrast taxi insurance policies to get the best and right deal. You can get suitable referrals from your insurance agent or other taxi operators.
- Plan Your Office Space
When looking for space that will be your base of operations, you should pick a property that has enough room for your fleet of cars and a spot to put up your office. It preferably should be close to your targeted area you want your cabs to ply. You also should consider space to accommodate your staff and a section for servicing the vehicles that need a few minor repairs.
- Recruit The Right Team
Choose your employees well; they should be individuals that will work with the utmost professionalism. You will need drivers and sizable office staff. Your team should understand the significance of passenger safety and convenience, which should be at the heart of the services your company offers.
The drivers must be licensed and experienced professionals. They should present the necessary documents, and you should do enough background checks on each employee. You might have to hire a few extra drivers on a when-need-be basis; they will step in when your full-time drivers cannot report to work.
As for the office staff, hire people that will serve as dispatchers and customer service representatives. They will be tasked with handling all requests made via phone (calls or texts), email, or online (company website or social media accounts).
- Get The Word Out
Once everything is all set, and your company is ready to start running, you should spread the word. Use conventional channels like pamphlets, flyers, newspaper ads, and the phone directory.
Promote your services and ensure you use a captivating marketing strategy. It should catch the attention of the readers. Consider offering discounted rates on the first ride, or for new customer referrals, or any other approach that will bring in more customers without hurting your profits.
Take your marketing online. Go social as you also leverage the company website. Make sure people can make their booking online. Have a team of customer service representatives handling things online.
- Observe, Make Mistakes, Learn
Lastly, do not assume things will go smoothly; expect the unexpected. Mistakes will happen every other time, more so since you are new to this business. Be patient, observe things, learn from others, and make improvements where necessary.