How to Start a Taxi Company
If you enjoy driving and working with people, knowing how to start a taxi company might be something you want to do. Though starting a taxi company might require a relatively large investment, returns can quickly add up and many taxi companies expand within their first year. Starting a taxi company requires good management skills, a smart marketing plan, and compliance with all local legislation, so read the following steps to learn how to start a taxi company.
- Investigate whether there’s a need for a taxi company in your area. In smaller towns, the demand for taxis usually isn’t so high, so considering a different location to start a taxi company might be a wise choice.
- Determine your niche. Though most taxi companies cater to all types of customers, there are those that cater to high-end clientele such as politicians, diplomats, and executives. Other taxi companies offer adapted vehicles for the physically impaired, while yet others provide green taxis for environmentally-conscious customers.
- Construct a solid business plan that includes your start-up costs, management strategy, marketing plan, and expansion plan. Have an accountant review it for additional advice.
- Apply for a loan from your bank or seek funding from private investors to raise the capital you need to start a taxi company.
- Apply for a commercial driver’s license at your local DMV.
- Register your taxi company with your city to obtain your business license. Also apply for an employer’s identification number or EIN if you plan to hire other drivers.
- Purchase at least 1 vehicle that is modified for use as a taxi. Purchase taxi meters and toplight signs.
- Register your vehicle or vehicles with the DMV. Unless they are licensed for commercial use, you may not use them as taxis.
- Choose a location for your taxi company. Make sure it has easy access to all major routes in your area and enough parking spaces to safely store all your vehicles.
- Purchase property, comprehensive, and liability insurance for your taxi company. Insurance will protect your company in the event of damage, theft, accidents, or lawsuits.
- Advertise your taxi company on flyers, in local publications, and on the Internet. Add your taxi company to tourist websites, and other informational sites.
- Interview and hire drivers who are reliable, polite, and possess their commercial driver’s licenses.
- Print business cards to give to customers after their ride.
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