Owning your own limousine company can be a very rewarding business endeavor. You may consider purchasing a limousine company if you have recently been laid off from a high paying job. Because you are used to a considerable income, finding a job to allow for your lifestyle will be difficult. It may be time to own your own company.
You may also consider purchasing a limousine company if you wish to be your own boss. You may be tired of having someone else call all of the shots. If so, owning your own company is a great way to gain managerial and ownership skills.
Or, you may consider purchasing a limousine company if you are looking to enter an exciting industry that deals directly with the public.
If you are considering purchasing a limousine company, there are a few things to know:
Who are your customers?
For most people, being chauffeured around in a limousine screams “rich.” However, don’t expect all of your clients to be famous singers or rich actors. You will also be catering to teens at the prom and wedding parties. Dealing with the public may be one of the largest challenges that you will face. You will work hard to please anyone from a teen to a bride to a famous talk show host.
What are typical “limo” worthy events?
You may have customers that prefer chauffeured transportation over their everyday traveling method. These customers enjoy the convenience of having a driver pick them up and drop them off at their place of work, home, school, etc. There will also be reservations for special events. Teens who wish to celebrate their senior prom in style will rent a limousine. Often times a bride and groom will wish to head to their reception or off to their honeymoon in a limo. They may even have the entire wedding party ride with them. Other special events such as awards, dinners, parties, and celebrations may call for a limousine rental.
Why do people rent a limousine?
Although it has previously been thought that those riding in the back of a limousine are rich and famous, there are many reasons for renting a limousine. Consider a wedding or social event. A wedding party consisting of 10 people may want to get the party started earlier (most limousines offer bars and televisions inside).
A limousine may be a cost effective way for a large crowd to arrive at a busy event. A small limousine can hold 5 people, while a stretched limo could hold as many as 20 people. Rather than taking 4 or 5 cars to a busy event, a limousine can simply drop the entire party off at the door.
Also, people consider renting a limousine whenever they are unfamiliar with the area. They may not want to deal with traffic or unfamiliar roads. They can arrive safe and on time in a limousine.
If you are considering purchasing a limousine company, you will need to know who to market to and some common events. You may also want to know a little bit about the customer. If you enter into the business thinking all of your customers are rich and too snotty to drive, you will quickly run into trouble.
The Tenney Group has been facilitating transactions of transportation businesses for over thirty-five years, specializing in business sales, mergers, acquisitions, and post-transaction services. We have experience dealing with a wide variety of companies in the ground transportation industry, including trucking, freight hauling, ambulance, school bus, and limousine businesses. Contact Spencer Tenney at the Tenney Group for expert assistance when buying or selling a transportation company.