One of the most lucrative businesses in existence today is the transportation business. Even in this technological advanced world, where people can transact billions of dollars worth of business virtually, there is still need to move persons or goods from one part of a country to the other.
Transportation business has many facets. There is air transportation, water transportation, rail and road transportation. This article will focus on one of the commonest aspect of road transportation -Taxi. Sometimes they are referred to as cabs; most times they are called taxis. Whatever you chose to call it, any means of transporting an individual or a small group of individuals from part of a city to another is what this article is dwelling on.
If you are interested in doing this business, you have picked interest in the right business, irrespective of the country you are presently, taxi business have been around for scores of years and it is not ready to go. Places that used to be towns have become major cities. Population explosion has made crowded cities to become more congested. Even when some nations claim to be experiencing economic hardships, businesses still boom, more investors are attracted, more people are employed, many more move from one part to the country to the other.
Millions of taxis are waved down the world over on a daily basis, thus generating millions of dollars in income for those who own the taxi companies. It is not too late to tap your own millions as you invest in this business. What can you do? How can you go about setting up a cab or taxi company? Please read on.
How Much Money Can You Make From Taxi?
You decide how much money you want to make from your taxi business, the better you are in managing it, the money money you make. Average taxi in the major cities makes about $150 (N25,000) daily. From this you will settle the expenses such as fueling and others. You get to keep whatever the remaining if you are driving it yourself.
Since you are operating as a taxi company, charge percentage of fares for the right to drive the cab from each driver. If it’s new taxis and your company is registered and approved by the Government, the rate you charge is about $70 (N14,000) daily flat rate while the driver takes care of fueling and keep the rest. You multiply that to how many taxis you have.
Get Governmental Approval
Registering a business name is not the same as getting an approval from the government. Getting authorization here involves licensing from the government for you to be owner of Cab Company and its operations. It also includes getting the right to paint your cars in the approved colors depending on the city you are situated. You will also need to get the routes that your cabs will ply approved.
Get Cars For Taxi
You may not need to buy a lot as a beginner; there are people who will be willing to partner with you as a taxi company. Such ones however will only bring their car to you as partners when they see that you already have a structure on ground. For now, you may have to start with two or three cabs of your own. Before you go to the auto-mart, what are some of the things you need to give serious consideration? At this stage, care is needed on your part so that you do not go for cars that will constitute problems for you later in the future.
While it may not be wrong to appreciate beautifully designed cars, you are not going into the business so that you can exhibit beauty. Even if you are an absolute neophyte, take your time to ask around for brands that combine comfort with durability.
Cars that are fuel efficient are your best bet as you will be running on a lot of fuel. You also need to consider if the car you are buying does not attract expensive maintenance. If you have decided on what to buy, take an experienced automobile engineer with you so that he will do the final inspection before you pay.
Never go for second hand or used cars. The original owner may hide some faults that the car has from you. More so, taxis are put to use much more than private cars, buying used vehicles will only put your business at risk as they will soon wear out, requiring constant expenses. That you go for something new does not mean you have to expend all the fortunes on buying cars, it is also important that you look out for something relatively affordable.
Insurance Is A Necessity
The business you are about to start attracts a lot of risks; do not attempt to dodge insurance. Every car you buy must have a comprehensive insurance cover. Apart from the fact that the law necessitates that you do insurance cover for your business; insuring them will serve as a protection. While budgeting for your taxi company, it is important that you include funds for budgeting in the business.
Paint And Tag
The next stage is taking your car to experienced auto painters so they can spray paint your car for you. Ensure that they use the exact colour specified by the authority so that you do not do double expenses. You also need to tag each car for identifications. While some companies use number tags, others use letters and others chose both number and letters.
Tracker Is Important
At this stage, you need to set up a monitoring and surveillance system for your business. Apart from the fact that it will prevent your cars from theft, it will help you a lot to monitor their whereabouts every time. Thus they will not be able to step out of the bounds you have set for them.
Get Responsible Drivers
You need to go for experienced and responsible drivers licensed by the government to do the business. You are not organizing a car race, so you need to employ not on the basis of their ability to race, but on the basis of their ability to drive with minimal accidents.