The need of mode of transportation whether private or public remains prevalent. In developed countries, government transportation system like buses is very common. However, the need of taxi services is also increasing day by day. It offers to pick and drop service at your door step. Advancement in technological system and availability of mobile apps business helping the customers to avail quick taxi opportunity.
To start a taxi business, you require a taxi service business plan first. OGScapital is there to provide you competent and thorough business plans at affordable prices. We make sure that all the facts or figures along with the objective presented in the plan are accurate. Our team of professionals makes sure that each and every information is precise before including it in the business plan.
Who utilizes Taxi Services?
Taxi services are hired by many institutes like schools for kid’s taxi, hospitals for health taxi. Many hotels and bars also hire taxi services for their customers whereas many big companies also offer Limousine Taxi services. Thus, Taxi service business is expanding rapidly. Increase in the taxi business also bringing the new competitors in the market on a daily basis.
How to start a taxi business?
To start a taxi company, you need to first start with writing a business proposal. The proposal or plan needs to address many important and essential details of the prospective taxi company. The success of the business is always depended on how it has been conceptualized. The OGScapital specializes and provides the opportunities to the startup investors to write their business plan of professional standards. We help you to write the it at low cost and according to your need. This tailored make proposal which will guide you how to start a taxi business and flourish it. We also help you to compete with the best in the city and provide services to the community. Further, we help to utilize your budget in a cost effective manner.
When you write your taxi business plan, it might be biased or ignore some basic or key components. Further, your research may be based on only positives and ignore the negative or threats of your potential company. We can solve this problem for you if your hire our services. You can confidently present these ideas to other investors or the bank for the loans. We have experienced writers and guaranteed to provide quality services. Our primary objectives in writing plan for you would be:
- Focus on guiding you about how to start a taxi service in your city
- Focus on current market trends through analysis of the market
- Consulting professionals to do accurate project
- Develop a tailored plan for fulfilling objectives, vision, and mission of your project.
- Develop plan according to your financial resources.
- Develop practical marketing strategies for you.
- Develop advertising strategies to attract the potential customers.
The business proposal does not guarantee to help you to find an investor, but a comprehensive and precise proposal gives a clear idea of what you want to start to the investors. It also improves your credibility and shows potential in front of the investors. Investors are also looking for the accuracy of the data. You might get some wrong or biased information or depends on peer information and may result in the loss.
At OGScapital we do proper research for you and crosscheck information while adding it to your proposal. You may hire our services to start a taxi company, or you may look on our website for sample projects.
Contact us today to avail our business plan service for getting a professional taxi service business plan written at affordable price and know how to start a start a taxi service.
Sample Template for Taxi Company proposal.
Many investors look for the new opportunities to invest. However, new entrepreneurs don’t know how to start a taxi service because of lack of experience. It requires a concrete and precise taxi company proposal developed on the basis of your business vision.
You must know that you are providing community services and community satisfaction is important to get success in your business. Your skills and performance would help you to determine growth in the taxi business. There are many consultancy services, and agencies are available to help you to progress your business proposal.
You can also take help from internet and view proposals. You should have prior information related state laws before starting your own business. A good knowledge would help you to earn more profit in less investment.
In the transportation industry, you are not only providing services to the local people but also to the executives. You may also think to start health taxi for the patients and kid taxi services for the children. Taxi business is not only related to dry land traveling but also air taxi and water taxi services are available. You should select one service based on your location and funds, but if you are intended to start more than one like both common taxi and health taxi, write a separate proposal for them. Generally, taxi business plan should give an idea about following questions:
- What are the primary goals and objectives of your taxi company?
- What is your targeted community (elderly, children, kids or executives)
- Would you do a partnership?
- What would be the source of funding?
- Would you start the business from scratch buy a franchising business plan?
- How to start a taxi service in an estimated duration?
- What would be your taxi company structure?
- What would be your marketing and financial strategy of Taxi Company?
- What would be the core challenges you may face to start a new taxi company?
- What is the current position of the taxi firm in your area?
- What special equipment is required for your taxi like GPS system?
Sample Taxi Business Plan
Below is the template to start a taxi company. If you want to know how to start a cab business, follow the below-given sample plan for cab business:
- Write down the Executive summary. Your taxi company proposal would start from the executive summary of your prospective company. It would explain the potential customers, location, and services you would provide. Taxi business is a community business so, write down about those who are likely to use your taxi e.g. executives, children or patients. Discuss the location of your main office of the company and route of the taxi like in the central plaza of the city.
- Write down Taxi company overview. Writing business overview is important in any business proposal. You should write about the current taxi companies already operating in the market along with their location, and the services they provide. Taxi business is growing these days as it provides transportation services to the public and has not fixed routes and schedules. Most of the taxi companies earn their profit through leisure and business traveling. Innovation and creativity are the two main components that play the key role in the success of your venture. You should think of novel and unique ways to attract public like developing of mobile application, facility on weddings, renting luxuries cars, etc. You can easily compete with the large and already operating taxi businesses. In the US, taxi business earns estimated six billion dollar revenue each year. Taxi business mainly comprised of services like transportation of riders, renting of recent cars and vans, however, and the main revenue is earned through local passengers. You be careful about the needs and demands of the passengers and community. The biggest markets of taxi are in Europe, USA, and China. The laws and regulation also protect this industry. The public can utilize taxi services through using apps or through phone calls. The taxi is dispatched according to the time mentioned by the client. You may send taxi through your main office or have taxi stands. You must have a number of vehicles along with a maintenance and repair shop for the cars. You must have a proper computerized system to track the activity of the taxi and the routes. The taxi industry has to compete with other modes of transportation like the local business system, so must bring innovation in the taxi business to earn maximum profit. The reasons for growth and shrinking of this industry are almost same. Computerized innovation and availability environment-friendly cars at cheaper rates equally contributed to its success and shrinking as many people can start their own taxi business. In many densely populated areas, government tends to increase taxes and cause a market shift.
- Write down vision, mission and aim of your business. You should develop a precise vision and mission and mission statement for your taxi business and write it down in your taxi business plan. Your vision could be to start a number one taxi service in your state that gives kids taxi service or any other taxi service. Your goal could also be to start a highly profitable business that provides excellent transportation service in your area. Your objective could also be to open a taxi business and then sell your franchise. A clearly define mission and vision could help you make your business strategy to accomplish it in right direction. You must write down the aim of your taxi business in next upcoming year. Your objectives might be to develop an association with the executive’s companies. Along with improving relations, your objective might be the improvement in the managerial services, customer service efficacy and call center, management consulting, product management and improvement in the overall structure of the business.
- Business structure of the taxi company. A good foundation of the taxi business is essential for the success of the business. You should write it in your proposal. Julia W.
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- Technology advancement in your vehicles. Today, the taxi services are equipped with the latest technologies and this is the reason of the survival of the taxi business. Enlist and write down about the technological equipment in your taxi. Your taxi would be equipped with latest GPS system that guides the nearest driver to take the order and inform about the accurate time of arrival to the customer. You taxi cars would have lasted radio system to ensure communication in every situation and ensure reliable communication. If you are targeting the executives or high-class people, then installing in car credit and debit cards system might be a good idea as the world is going cash free these days. It would be installed on the back seat to give privacy to the customer. Further, instant transaction approval would be given to the clients rather than to receiving a call for approval and improve your taxi company reputation.
- Market strategy for the taxi company. Elaborate marketing strategy in your taxi business plan. You should include it in your taxi company proposal and write it down in your proposal about the demographics of your potential clients. You must understand that taxi business is demanded by all age groups especially working class. Some families may have their car, but at the same time, this car may not fulfill the requirement of the whole family. These days taxi business has been updated to the new standard. Niches for the taxi business may include children’s taxi services, health taxi, water taxi, car rental services and limousine services, etc. You must write down the specific niches you want to provide in your business. Understand the extent of competition. It is important to understand the number of taxi’s on the roads are increasing day by day that means this business has potential to grow. You should not underestimate the potential loss in the beginning, but you should prepare for any shortcomings. It is important to understand local market competitions in your industry. List down the famous taxi businesses in your area and services provided by them. Think what novel you can add your business to compete with these names. The marketing strategy should focus on the following things:
- Write down economic analysis in your taxi company proposal. You must write down the monetary analysis of your potential business. Taxi business is unique in each region and country because of constantly changing dynamics. It requires proper in-depth study of current economic sceneries and proper preparations to earn more profit. The taxi business is also affected by fuel prices, economic depreciation, fares and conditions of the roads.
- Take the decision regarding how to start a taxi service. You should think about how to start a taxi business based on business overview and financial resources. Many people set their taxi business from scratch, or some buy their own franchise. Both have their own pros and cons. If you start from very scratch, it will give you the complete hold on your business, but chances of failure and loss strongly prevail. On the other hand, if you buy a franchise it would give you the chance to work in already flourished business but you will have a less control over it.
- Write down potential threats to your taxi business. Each business has its own potential threats. Taxi business also has its own risks and should be calculated before the business. Prices of the fuel and vehicles are the primary issue in this business. High prices of petrol and diesel are directly related to the growth and loss in this business however fuel savers are helping to reduce fuel consumptions. Another major challenge of this business include fares, fees, and taxes. You must have a cost effective tariff package for your customer but also have a look at other costs like parking fees, licensing fees and toll charges. You can also charge them from your clients. The cost of maintenance of vehicles is another major challenge for the taxi business. Cars need be adequately maintained and repaired on time. Further, any accident may affect your taxi business. A good way to handle this issue to have insurance of all the vehicles being used for the taxi business. Another rare risk of this business are the dishonest drivers. If you don’t have computerized or any digital tracking system in your car, the drivers may need runway with your vehicle. You should also have a guarantor for each employee to be held responsible in any case of fraud.
- Focus on Legal issues related to starting a taxi company. You should write the legal issues required to launch the taxi business. As legal matters require money, preplanned legal work would help you to add this cost to your financial strategy. The different type of taxi work need different paperwork, personal liability and bankruptcy protection. You can also work with a sole proprietorship, in a partnership or a limited liability. For, a small scale taxi business being the sole owner is the better choice, and it is more easy and inexpensive method. It would allow you to decide business matters entirely and control over the revenue. Limited liability is the better option for the medium or large taxi business because it has few restrictions on the profit sharing, less paperwork, and limited liability.
- A good and attractive taxi business name. The name of the product you are selling counts more than the service your business provide to get success in the business world. It only way to attract the clients and customer to step into your shop. So, choosing an attractive name for you taxi business is half way success to your business.
- A good insurance policy. You must write down your prospective insurance policy for your taxi business. You may face any property damage due to any accident. Purchasing some insurance policy many cover any damage finances to your taxi business. Taxi insurance, business insurance, health insurance, employer’s liability insurance are some basic insurance policies you might think to opt for. Do proper homework and write it in your taxi business proposal along with the financial cost it might require.
- Protect intellectual property your taxi company. When you think about the new taxi business, you have to design you brand name, logo, business patents, secrets and secrecy agreements. All of these are called the intellectual property and need to be protected to save your money and effort. It is very important to protect your work and for the growth of your taxi company. It keeps your secret, prevent employees from disclosing any private information and also attracting the investors. Many small business owners think that intellectual property rights are only for large scale business, but you must protect them at any cost to grow your taxi business.
- Paper work required to start a taxi company. Taxi business does not require simple picking and dropping customers and clients. It needs proper papers and permits to carry daily routine activities. You may put yourself in trouble if you neglect any important documents. Taxi documents vary from state to state, and according to state laws, however, vehicle permits, a vehicle for service permit, drivers form, commercial driver license, insurance proofs are important documents for the taxi business. Write down all required documents for your business in your taxi company proposal.
- SWOT analysis to start a taxi company. Writing down strengths, weakness, opportunities and threats of your business in the plan is an important aspect. It gives you an idea of what has been done and what should be done to overcome the threats of the business. It also provides an idea to the other investors and attracts them to invest based on your strengths of the business.
Business Plan for Investors
- Target market. Your target market might be celebrities, travel agencies, hotels, business people, gourmet, and households. Market your firm to attract the people of these communities.
- Financial strategy for the taxi company. You should make financial strategy in your business plan and elaborate your budget and finances in detail. A large business with more targeting points or routes may need more finances than the small scale business. A good financial strategy would help you to boost your profit, or you might face loss in case of poor strategy. Your main finances include buying of vehicles, equipment like GPS and tracking system, licensing, insurance, lease of office or garage, and miscellaneous charges. It is estimated that approximate twenty thousand dollars are needed for small business, two lac dollars for medium and five lac dollars are required for large scale business. You should have to write down all your business and then trim it according to the need. Mere just ideas would give you a shock in case of loss. Funds securing for the business is another major task. People don’t agree to spend on any new business. You can finance your business through personal savings, loans from families and friends, look for investors, taking small loans for your business and getting microloans. You should be clear in your perspective about what you are going to do. You may finance your business in more than two ways of utilizing personal saving and taking loans. Write it down your plan.
- Choose a locality for the business. You must carefully select the location of your business. Ideally, the location that minimizes your cost would be best for you. In some areas, government help may also be possible. You should select the area from where you can access all main points in the city and dispatch taxi to the client as soon as possible. You must think about centrally located sites for your business to serve in the entire city.
- Technical and human resources issues in the taxi business. You can easily manage your taxi business, but still due advancement in the technological system you must need technical equipment like dispatch systems, top lights, taxi meters, GPS systems, electronic transaction system, taxi driver protection screens, safety cameras, decals livery, and labels. You should add these if you have enough finances and looking for medium or large scale business. In the case of small business, you may pick up few of these.
- Understand how taxi business works. Taxi building, not something to earn from raw material or manufacturing of goods. It is simply related to rendering services the community by providing means of transportation. Taxi does not only provide transportation to the healthy individuals but also to the people living with the health conditions. Taxi services are not only provided on dry land but also on water and air called water taxi or air taxi.
- Write down starting expenses. Write down expected startup expenses in your financial strategy e.g. Registration fee, legal expenses, marketing and/or promotion expenses, charges of consultant, insurance fee, purchase of accounting fee, cost of lease, charges of office stationary, amount for utility deposits, operational cost (salaries, payment of bills), startup inventory (fueling, accessories and car tracking charges), cost of store equipment, cost of furniture and gadgets like computers, cost of website and cost of inauguration of your business. Do proper research and write down financial cost of all of the important finances.
- Write down projected growth. You should write down projected growth of at least three years. It might include total costs of sales, projected cash flow, cash received, cash from operations and current borrowing.
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- The taxi business runs by clients or customer needs. You need put the effort in making clients through waving hands, standing at the taxi stand or use of apps to give your services. These days use of the app to call a taxi is common. The customer simply gives order through mobile application and information is reached to the taxi driver. The taxi driver is obliged to pick the customer of required time. You must remember customer satisfaction is important for the growth of your business. On time arrival to the destination is key for your business.
- Advertisement strategy. Taxi business is not just a business to simply buy cars and run them on the next day. You properly have to make a written taxi company proposal to give concrete shape to your ideas. Marketing strategy is an important aspect of your taxi business proposal. Financial costs involved in the marketing strategy should be included in your financial strategy. You must think of different and creative ideas to attract your customers. Remember a good service providing taxi business without marketing may end your business in the loss. Here are following ways to market your business:
- Unique brand name for the taxi company. People tend to remember unique and novel things. Along with providing excellent services, you must brand your business name. Choose those names that would be unique and easy to remember.
- Business cards for the taxi company. Make creative pocket size business cards to give them to your customers mentioning your number and location. It would be easy for the customers to remember you can contact you in an hour of need. Also, ask people to share their experience with other people.
- Create relationships to promote your taxi company. Make relationships with the people you know call taxi services. It would help you to stream your business. You may also develop relationships with the hospital owners if you are providing health taxi services. Similarly, bar owners could also call you for services for their customers.
- Stand at a location where the taxi is commonly needed. Stand on the site where taxis are regularly called to the hospital, airports, bus stands, etc.
- Use social media. Social media is providing the huge source of information to the people. You may develop Facebook page related to your company and promote it. You should mention contact details, services, and activities. It would increase your customers. Ask customers using your customer services to share their experience on the page.
- Unique advertisements for your taxi company. You may advertise you taxi company in local newspapers and magazine. Try to negotiate on lower price rate. Again, attention-grabbing ads would grasp the attention of local people.
- Sponsor an event. If you are starting medium or large scale business, you may sponsor a charity lunch or dinner to the local community in your location. It would bring notice too many people in your area and increase potential customers. Share your cards with the people.
- Train your driver. Remember it’s not you who directly comes to contact with your potential customer but driver. You should hire and train friendly drivers. They would help you flourish your company on a positive note. Hard and rude drivers may hamper your company reputation. Teach your drivers to be hospitable, honest and show respect to the clients.
- Honest fares. You should be honest in fares. Overcharging your customers may negatively affect your taxi company reputation. You should try to satisfy your customer and maintain your reputation.
- Business sustainability and expansion strategy for the company. Your taxi business proposal should elaborate the sustainability and expansion strategy of your business. It would help to forecast what should be done to expand your taxi business. The sustainability of your business depends on the satisfied customers, the competence of employees, good financial and investment strategy. Put all your efforts in the suitability of your taxi business once started. Your objective must increase cash flow without extra investment and sources. You would focus on the profit sharing once it gets established. You may expand your business in other cities and states and develop offices in those areas. You should not only think about how to start a taxi service but also how to sustain and expand it.
- Operational plan for the taxi company. You should develop an operational proposal for the taxi company. It would include the detailed lists of tasks and execution time of all of these tasks. You should mention each milestone to be covered in a given period of time. For example, getting a license in June location of the office to be decided in July, purchase of vehicle in August, installment of GPS and tracking system in September, Advertisement and charity lunch in October and inauguration in November. Do not make your decision in a hurry. Think rationally and logically about what can help you. Take advice from the business consultants. Hire competent driver that would oblige to follow your company rules. Good communication skills of your drivers would increase satisfaction and attract the customers.
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Expert opinion about how to start a taxi business
You must think how to start a taxi business based expert opinions. Taking expert opinion who are already working in this field is important. They would guide you better about practical consideration should be taken in writing the proposal. Here are some guidelines from the expert to ensure that you would run a successful business.
- Make research based realistic plan for your company. According to the expert do proper research on what is required and needed to be done. It is better to write down your ideas rather than building castles in the air. It costs a lot so try to spend at least a year with the people working in this field. Ask your prepared questions with the experts. Take appointments from the famous owners and ask your questions related to estimated time, estimated costs and potential threats to the company. You may also ask about the cost-effective techniques to buy equipment like software and tracking systems. Many consultancy services are available to assist you.
- Try to fund from personal saving rather than loans. Save at least 20-30 percent of your income regularly and then invest it in your company. If you take loans, then interest rate could be a problem for you in the future. The cost of the business would depend on the efficient planning. Your company would flourish on the novelty of your ideas.
- Advertise your company through peers and acquaintances. Your friends and peers could be the great source of help in advertising your company. Arrange a lunch and dinner with your friends and develop a strategy to advertise your taxi company. Your friends can help you to promote it via social networking sites and distributing cards among their social groups. At least spend 4-5 months in the advertisement of your company. Do not leave advertising your company when it gets started. The continuous advertisement would bring more customers.
- Understand the essence of what of you are selling from the core. You must understand dealing with community and provide direct services to the people is different from selling products. It fulfills the need for the transportation of the customers. Customers always hire your services only to meet his need. Your brand cannot be successful until you focus on the needs of the customer.
- You must be honest in your dealings and advertisements about taxi brand if you want to appeal costumers. Developing and publishing a professional website for Taxi Company is an important task. The website must be mobile friendly, and of the professional layout. It should have appealing menu is which services and actions like an introduction, phone call, etc. are clearly visible. Your basic information like name, address, phone numbers, and services must be clearly mentioned so that there not remains any confusion for viewers. Your vision about your brand, its goals and mission should also be elaborated. It is better that it has any navigation system so that the people navigate right areas.
Hence, starting a new brand is not much easy. It needs a lot of hard work. You can get help from online business construction to have a complete search for your proper business plan. The scope of a good business always depends upon its planning. Hard work, honest dealing, constructive plan, business knowledge, resources and a good analysis of business approach are always trump keys to open the treasure of success.
Key points on how to start a cab business
You must know the essential and prerequisites of how to start a cab business before stepping into the business. Below are some key points you must know about how to start a cab business:
Certified training for your taxi drivers.
You must first pay attention to the professional and certified training of your staff and drivers. It will not only reflect your credibility but also increase your professionalism about your brand. Your staff must be trained to understand the needs of your costumers. Your drivers should be capable of giving ease to your costumers.
Central Business location for taxi business.
Your business location must be centered on the important areas where people can easily access you. You should target the populated areas and find the closest customer bases. Different areas have different transportation rates according to their importance.
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Quality equipment’s in your taxi cars.
Your business must give ease to the costumers. You should have comfortable taxi seats. Up to date and professional GPS system should be installed in your taxi cars. For better service, your air conditioners must be perfectly working. Your Taxi should be nice to appeal people. It should be cleaned and well serviced.
Follow state Rules and regulations.
Your taxi services must follow the rules and regulations of the centered areas. You must have a certified taxi license. Your taxi drivers must strictly follow traffic signals and sign board. In case that you don’t follow the rules you can be strictly punished, even your taxi company could be banned, so it’s very important to point which you have to pay attention to state laws and regulation.
Your taxi company business depend upon your staff attitude towards costumers. Your staff must be highly qualified and able to access the customer needs directly. Your employee’s services play a vital role to appeal costumers. Your staff must give proper services to the costumers. You must pay properly to the staff so that they give their excellent services to improve your company. It’s also important to give regular training sessions to staff so that they remain up to date to the latest trends of the society.
To start a taxi business you require proper research, financial resources, well-planned strategy, unique ideas to grow. You should understand the potential threats you can face in future and prepare well to handle them. Taxi business has a wide scope to flourish, so you must know how to start a cab business and where to spend money.
The competent professionals at OGScapital are there to help you establish your new business. Customer satisfaction is critical for us. We create customized business plans and do not use template to meet the distinctive needs of our clients which provide the clients with perfect approach to follow for starting or improving their company. We provide high quality proposals and that too with in time due to our excellent time management skills.
You can trust OGScapital with your new ventures and we will take it to your idea to greater heights with our advisory and business plan writing services.
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