Home
Blog
How to Make a Charter Bus Company Business Plan

Published Jul.05, 2023

Updated Apr.23, 2024

How to Make a Charter Bus Company Business Plan

Name: How to Make a Charter Bus Company Business Plan
Item: How to Make a Charter Bus Company Business Plan
Author: Jakub Babkins

By:

Jakub Babkins

Article Business Plan Templates Logistics & Travel Business Plans

Table of Content

1. Charter Bus Company Features

The Big Sky Charter Bus Company is the on-site, local-based, full-service charter bus company designed to meet the transportation needs of businesses, groups, and organizations.

In the Transport Business Plan, we aim to ensure that our customers receive high-quality, affordable, and professional transportation that adheres to all the laws and regulations set forth by the Federal Motor Coach Association (FMCSA).

https://www.fmcsa.dot.gov/carrier-safety/carrier-safety-resources/safety-resources-bus-motorcoach-minibus-operators

We offer various charter bus services, including single-day and multi-day trips, Uber, airport shuttles, and shuttle services to special events and venues. Our fleet comprises newly-purchased, well-maintained charter buses equipped with various amenities, including video entertainment systems, restrooms, air conditioning, and more.

2. Executive Summary

Why do you need a business plan for a Private Bus Transportation company

A charter bus business plan is essential to launching and running a private bus transportation company, as it allows you to create a clear outline of your goals, objectives, and strategies for achieving them. It also acts as a benchmark for measuring progress and gauging success.

This business plan for charter bus service will define the mission and vision of the company, detail its operations and services, explore growth opportunities, and explain how it will be sustained and profitable.

Such a plan can include fleet maintenance programs and operational costs. Having such a plan also increases the likelihood of securing financing and investment capital.

Start your Business Plan Now

Start My Business Plan

How to write an executive summary for a charter bus company business plan

The Executive Summary of a sample business plan for a charter bus company should provide an overview of the business model, the target market, the services and amenities provided, and competitive advantages.

First, the executive summary should provide an overview of the business model. This should include the company’s mission and objectives, details on its vehicle fleet, service offerings, and business structure.

Next, the executive summary should detail the business’s target market. This should include information on geography, age, demographics, and special needs customers, such as wheel-chair access and wheelchair-friendly vehicles.

The summary should also outline the services and amenities provided by the company. These could include route planning, online ticket booking, catering services, professional drivers and customer service staff, safety measures, insurance covers, and other services that make the customer experience enjoyable and hassle-free.

In addition, the executive summary should provide information on the company’s competitive advantages. This could include details on customer service, value proposition, customer satisfaction levels, pricing structure, quality and durability of vehicles, and other factors that make the company stand out from the competition.

3. Company Overview

History of the charter bus company

Martha and Tom Smith established the Big Sky tour bus company in the spring of 2019. They have been involved in the transportation industry for many years and saw an opportunity to provide customers with a convenient, safe, and comfortable way to travel. Starting a charter bus company was a small task for them. With their combined experience and knowledge, Martha and Tom have developed a charter bus company that meets and exceeds industry standards.

The company offers local and long-distance charter services to those requiring it. The company operates vehicles in a range of sizes to suit the needs of its clients, from minibusses to full-size coaches. We are committed to providing the highest level of service, with a wide range of amenities and amenities packages available to make each journey comfortable and enjoyable.

The company is based in Montana, and we currently have four charter buses in operation. We have a small office in the capital of Helena, with a full-time staff of four people, and are actively looking to expand.

Landlord Business Plan Writing

Helps commercial tenants get landlord approval.

Mission

Like the Taxi Business Plan, our mission is to provide our customers with comfortable transportation and exceed their expectations. We understand that each customer’s needs differ, and we strive to address those differences by providing the best service possible.

4. Services and pricing

The Big Sky charter bus company offers a wide range of services and pricing tailored to meet the needs of all types of customers.

The services include:

Transportation from point A to point B – Prices start at $0.50 per mile
Airport shuttle services – Prices start at $20 per trip
Sightseeing tours of local attractions – Prices start at $25 per person
Multi-day trips to national attractions – Prices depend on the distance and length of stay
Vehicle rental – Prices start at $59 per hour with a five-hour minimum
Special event services (weddings, conferences, etc.) – Prices are determined on an individual basis
Non-Medical Transportation – Prices start at $30 per person
Luxury coach services – Prices start at $129 per hour

Note

The Big Sky charter bus business plan template also offers discounted rates for group bookings, senior discounts, and special arrangements for disabled passengers.

5. Customer Analysis

Customer Segmentation

Business and Corporate: This segment consists of businesses, corporations, institutions, and organizations that need charter buses for their employees and visitors. These customers typically require multiple trips for larger groups.
Educational Institutions: This segment includes universities, colleges, secondary schools, and other educational institutions that require charter bus services for students and faculty. These customers tend to have larger groups and typically need multiple trips.
Tour Companies: This segment includes tour companies, travel agencies, and other companies offering tours and excursions to their customers.
Public Transportation Authorities: This segment includes public transportation authorities and private operators offering charter services as part of their public transportation network. These customers often require single trips for large groups.
Sports Teams and Organizations: This segment consists of professional and amateur sports teams, as well as other organizations that need charter buses for games, tournaments, and other events.

Any questions? Get in Touch!

6. SWOT Analysis

SWOT Analysis assesses what internal and external factors could positively or negatively impact the business’s success. A SWOT analysis should be conducted while developing a business plan for a charter bus company to know how to start a private bus transportation business.

Strengths: What are the strengths of the company? These resources, knowledge, and skills are available to the charter bus company. Examples may include the size of the fleet of buses, the reputation of the company, the customer service staff, the selection of amenities offered in the buses, and the financial resources available.
Weaknesses: What are the weaknesses of the company? These are areas where there is a lack of resources, knowledge, or implementation. Examples include a lack of experience in the charter bus industry, an aging fleet of vehicles, inadequate customer service staff, limited financial resources, and limited routes and destinations offered.
Opportunities: What are the potential opportunities for the charter bus company? These are external factors that may positively influence the success of the business. Examples include marketing activities to expand the customer base, offering more routes and destinations, upgrading the buses, and taking advantage of new technology to improve customer service.
Threats: What are the potential threats to the success of the charter bus company? These are external factors that may negatively impact the business. Examples may include competition from other charter bus companies, changes in technology that could cause the business to become outdated, changes in the economy, rising fuel and insurance costs, and changes in laws and regulations that could increase the costs and liability of the business.

7. Marketing Analysis

Competitors

Business plan for investors

The charter bus market is highly competitive and includes an array of competitors that offer similar routes, services, and pricing as our company.

Our competitors range from large national companies to smaller independent operators and include the following:

Greyhound: Established in 1914, Greyhound is the largest provider of intercity bus transportation in the United States, serving more than 3,800 destinations across North America. Greyhound offers various services, including private charter, event transportation, and group and motorcoach offerings.

Megabus: Megabus is a premier low-cost bus carrier in the United States, offering intercity bus services to more than 75 destinations in the US and Canada. Its services feature amenities such as Wifi, power outlets, and the ability to stream movies on its app.

Gogo Charters: Gogo Charters is a leading charter bus company in the United States, offering buses for groups of any size with various amenities, such as onboard restrooms, DVD players, wifi, and more.

Market trends

The charter bus market has seen a steady growth trend in recent years as more travelers look for affordable and convenient transportation options. Several factors, including the popularity of tourism, increased access to transportation technology, and the growing importance of group transportation for businesses, events, and religious services, drive this demand for charter buses.

Competitive Advantage (USPs)

Our competitive advantage lies in our commitment to safety, service, and convenience. We strive to provide the highest quality service to our customers at an affordable price, and our team of experienced and certified drivers sets us apart from our competitors.

Any questions? Get in Touch

8. Marketing plan

Our charter bus company will focus on a comprehensive marketing strategy, incorporating multiple channels to ensure our message reaches the right audience. Below is a comprehensive strategy that we plan to use within the first year of operations:

Social media – We plan to use our official company social media accounts to engage with potential customers, inform them of our services, and provide relevant information, such as upcoming trips and special deals.
Press releases – We also plan to issue press releases to local newspapers, radio, and TV stations to spread awareness of our services further.
Search engine optimization (SEO) – To ensure our website appears in search engine results, we will invest in SEO keywords targeting potential customers interested in charter bus services.
Online advertising – We plan to utilize online advertising channels like Google AdWords to increase brand visibility and drive people to our website.
Paid directory listings – We plan to invest in paid directory listings, such as Yelp, to increase our visibility online.

Promotions Strategy

Discounts – We plan to give discounts for customers booking multiple trips, offering a special deal for referrals, and discounts for students and seniors.
Contests – We plan to run contests and giveaways to encourage customers to book with us and reward our loyal customers.
Partnership bonuses – We plan to partner with local businesses and offer discounts to customers who book with us and show proof of purchase from our partners.
Social media contests – We plan to create engaging contests on social media, such as asking people to post pictures of their trips with us and rewarding them with prizes for the best pictures.

9. Management Team

Organizational structure

The management team of the charter bus company will be organized as follows:

Chief Executive Officer (CEO)
Chief Operations Officer (COO)
Business Development Director
Brand and Communications Manager
Financial Analyst
Administrative Manager
Customer Service Representative
Maintenance Manager
Sales and Marketing Team

10. Financial Plan

Startup Costs

Purchase of Bus: $275,000
Maintenance and Travel Expenses: $50,000
Insurance: $50,000
Licensing and Permits: $3,000
Employee Salaries: $25,000
Office Supplies and Rent: $20,000
Marketing: $10,000
Website Design: $3,000
Legal and Accounting Fees: $5,000

Total Startup Cost: $441,000

Financial Projections

For the first three years, the financial projections are as follows:

Year 1

Revenue: $150,000
Expenses: $145,000
Net Income: $5,000

Year 2

Revenue: $200,000
Expenses: $150,000
Net Income: $50,000

Year 3

Revenue: $250,000
Expenses: $180,000
Net Income: $70,000

Funding Ask

Business owners seek $250,000 to purchase a charter bus, fund four months of operational expenses and launch the venture. The owners have secured $50,000 already and will contribute an additional $150,000 for additional expenses. The loaned capital will be secured against the purchase of the bus and repaid with interest over five years at an interest rate of 7%. The loan will be amortized over the five years of repayment.

11. Discover the Value of OGS Capital – Your Premier Charter Bus Company Business Plan Consultant

Valentin Marinov

TrustPilot

excellent work

excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!

∙ Valentin Marinov

OGS Capital is a leading charter bus company business plan specialist. With over 12 years of industry experience, the team has crafted hundreds of successful plans for numerous charter bus companies.

This includes extensive market research, personnel strategy development, financial forecasting and budgeting, and more. The OGS Capital business model has been proven to provide comprehensive, detailed business plans that are not only tailored to the specific company but are tailored for future success.

With OGS Capital as your partner, you can confidently move forward with your industry plans and objectives.

12. FAQ

How to obtain a permit for private transportation in the U.S.?
The requirements for obtaining a permit for private transportation in the U.S. vary by state. Generally, the permit will require the applicant to provide proof of insurance, obtain a license from the state, and meet various safety regulations depending on the type of vehicle being used for private transportation. It is important to contact the state or local licensing agency to determine the specific requirements.
Where can I download the charter bus company business plan in PDF format?
There are many sources online where you can download a charter bus company business plan in PDF format. Some sources include websites such as OGS Capital, and others. Looking for PDF versions based on your country or region may be easier, as business plans vary from place to place.

Illustrative business plan samples

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.