Taxi business plan for starting your own business
Are you looking for how to start taxi service ? Then this <srong>taxi service business plan is all you need. The taxi service business can be a great choice if you have a good budget for buying and maintaining vehicles. Starting a taxi services business doesn’t require you to be an expert in the transportation field. The business can be started small with a few cars and drivers, and later on, it can be expanded as you begin to profit.
To start a business, it is important to follow certain procedures. You can also easily draft up a transport business plan for your taxi service business. You can look at associated plans such as tipper truck company business plan as a guide. To make your business plan much better, you can also develop a mobile apps business plan when considering the marketing of the company.
2.1 About the Business
Grab A Cab will be a taxi service business owned by Benjamin Williams in San Francisco. The main aim of this taxi service business will be to provide trustworthy, well-timed, and safe cabs that will make use of complete in-car credit and debit card access, along with computer-aided dispatch. Grab A Cab taxi service will provide complete cab services using the latest equipment and technology to facilitate individuals’ travel in and around San Francisco.
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2.2 Management of Taxi business
If you are considering how to start taxi service, then it is important to establish strong management. Adequate business planning services must have a good management team. And there is no better way to plan out every aspect of your taxi service than through a business plan for taxi service pdf like the one offered here.
Other business plans like logistics company business plan can also aid you in developing the core plans of your company.
In this taxi business plan example, we will guide you about all the components of a strong business plan. To write up a call taxi business plan follow our format.
2.3 Customers of Taxi business
Through our market survey and feasibility studies, we identified those customers that will benefit greatly from our service offerings. The recurring customers of the taxi service business will be:
- Event planners
- Retirement and care homes
- Hotels and airport transfers
2.4 Business Target
The main goal of our taxi service business is that in the next three years, we will be the well-liked transportation company in the San Francisco Metro Area by continuously evaluating, monitoring, and following up on customer call-ins.
3.1 Grab A Cab Owner
Benjamin Williams will be the owner of Grab A Cab taxi service business. Williams completed his Masters in Business Administration two years ago, after which he pursued a position as a manager in a noteworthy company. He was quite fascinated by the can service in his state. Conversely, four months ago, he left the post to fulfill his lifelong passion of starting his taxi service business.
3.2 Why Grab A Cab is being started
Benjamin Williams noticed that the other cab services businesses around him used traditional methods to work for their customers. Here, he saw the opportunity to cater to customers of San Francisco and the nearby regions with the latest technology cabs. The result was Grab A Cab, a taxi service that provides chauffeuring services to its customers by using the latest technology and equipment in cabs.
3.3 How Grab A Cab business will be started
Step1: Plan Everything
Good planning is crucial when learning how to open taxi company. A business plan for taxi service can best aid in planning and managing a business. To write your taxi driver business plan, you can take help from this sample taxi business plan. The business plan for Grab A Cab is detailed here. You can take help from this example or go through other examples like truck driving business plan to get an idea of what to include when planning for a startup.
Step2: Develop a Brand
The next step in starting up a taxi companyis to highlight your business and its unique offers. This can be achieved by creating a brand around your business idea. This will include everything from its principles to its unique value above its competitors. For this business to be successful, brand matters a lot.
Step3: Establish Your Management Grounds
The next important step is to maintain the physical aspect of your business. For this purpose, Benjamin Williams decided to buy a big place in the main San Francisco commercial area. The place would be spacious to park all his cabs. Moreover, there will also be a workshop inside that place to maintain and repair the cabs. This will effectively reduce the expenditure of sending damaged cabs to other workshops.
Step4: Establish a Web Presence
At present, it is necessary to establish a web presence. Therefore, Williams decided to develop a website for the business and social media presences for marketing as It will be essential to attract a wider audience.
Step5: Promote and Market
The last step is developing and executing an effective marketing plan to promote your services.
|Research and Development||$10,000|
|TOTAL START-UP EXPENSES||$299,600|
|Other Current Assets||$226,000|
|Start-up Expenses to Fund||$299,600|
|Start-up Assets to Fund||$1,019,400|
|TOTAL FUNDING REQUIRED||$1,319,000|
|Non-cash Assets from Start-up||$1,319,800|
|Cash Requirements from Start-up||$126,000|
|Additional Cash Raised||$56,000|
|Cash Balance on Starting Date||$35,000|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$56,000|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$1,319,000|
|Loss at Start-up (Start-up Expenses)||$145,600|
|TOTAL CAPITAL AND LIABILITIES||$1,536,800|
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Services of taxi business
Before setting up taxi business, you need to decide on your business’s services to your customers. You may have a taxi business plan tempelate, but it might not have everything you need for your sample plan.
You can follow this guide on how to open a taxi service to figure out what the market for the business looks like and what services are ideal to be included in your startup.
The cost factor is necessary to keep in mind while considering your services, so you can develop a taxi service business plan startup costs pdf to keep an estimate. Since Williams started with various services, this format can be used to develop even a uber taxi business plan or an airport taxi business plan.
- Door to Door Taxi Service
We will provide door-to-door taxi service to our customers as it is more convenient to use. Our capable drivers will pick customers from their homes and drop them directly at their destinations. Our customers will be able to book a cab through our mobile app or website.
- Wheelchair Accessible Cabs
Our specialized service will provide wheelchair user passengers with a ramp or a passenger lift to assist them with getting into the vehicle, which is far easier than transferring from a wheelchair to a car seat and dismantling the wheelchair for the journey.
- Seniors on the Go
We’ll also provide our professional, skilled, and highly patient cab drivers to assist seniors with their chores. Our company will provide senior citizens taxicab coupon booklets to maximize senior citizens’ benefits. We will aim to provide maximum customer satisfaction.
- Hourly Service
We will offer our clients affordable discounts that pay off in the long run with our hourly packages. Plus, booking hourly service will take the pressure off in terms of booking reliability: calling a cab and expecting the company to have an available vehicle at all times is a far stretch; however, booking an hourly service in advance ensures you’re covered 100%.
Marketing Analysis of Taxi business
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When starting a taxi service business, you should have an excellent understanding of your target market. You can gain this understanding by doing an extensive market analysis as a part of your taxi business plan sample.
Your business plan for a taxi business should also analyze the price of similar services in the market. This data should be used to forecast the prices you will set for starting your own taxi business.
If you don’t know how to open a taxi company, you can take help of this taxi cab business plan. A complete market analysis is necessary for running a taxi business.
If you want to learn how to setup your own taxi business, then this business plan taxi service will be of great use.
5.1 Market Trends
Taxi operations provide over 60 billion dollars a year to the general US economy. The industry employs 2,026,478 people. The growth rate of this industry has remained in step with the general growth of the country’s GDP. Management feels that by maintaining a local client base, the Company can continue to generate revenues despite the current deleterious economic conditions in the United States.
5.2 Marketing Segmentation
The potential customers of Grab A Cab are divided into the following groups:
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Our primary customers will be the school students. They are expected to avail of our regular contract to and from school, traveling to sports matches or class trips.
5.2.2 Event planners
Our second target customer will be event planners. They need to organize events, and for this purpose, they have to travel to different places. They will utilize our cab service to get maximum comfort. Our cabs will pick them up from their pickup location and drop them at their destination.
5.2.3 Retirement and care homes
This will be our third target group of customers. Our taxi company will provide services to the people in retirement or care homes who may no longer be confident to drive. Our wheelchair assessable cabs are specially designed for these customers.
5.2.4 Hotel and Airport transfers
Lastly, our potential customers include families and individuals on holiday and business travelers. These groups don’t typically mind paying a bit more for a solution that takes care of transportation in an all-in-one way, so they don’t have to worry.
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
|Retirement & Care Homes||25%||21,600||25,920||31,104||37,325||44,790||10.00%|
|Hotel & Airport Transfers||24%||22,600||27,120||32,544||39,053||46,863||11.00%|
5.3 Business Target
- To become the number one taxi service throughout San Francisco and adjoining areas.
- The main target of our taxi service business is to pursue an aggressive marketing campaign and penetrate at least 75% of the market share.
- To earn a net profit margin of $50.5k per month by the end of the third year
5.4 Product Pricing
Our business plan for transportation service ensures that our prices will be economical compared to our competitors as we will provide them with cabs that will be technologically advanced and equipped at nominal rates.
Marketing Strategy of Taxi business
To open taxi business , you must develop the best business plan for a taxi business. For starting up a taxi companyyou also need to develop a strong marketing strategy to attract more customers.
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In this taxi cab company business plan , we’re providing the sales strategy of Grab A Cab. You can learn a lot from here if you aspire to make a city taxi business plan.
6.1 Competitive Analysis
- We have quick customer care services. We respond to customer queries efficiently and respect their feedback to improve our services.
- We have excellent customer support staff that guides our customers in choosing the best traveling package according to their budget.
- Through our 24/7 online services, customers can inquire about our services.
- We will also have a roadside assistance business plan to prevent any inconvenience.
6.2 Sales Strategy
- We’ll advertise our services through social media platforms like Facebook and Instagram.
- We’ll give a free ride to our first 50 customers
- We’ll offer a 25% discount to school and college students
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
|Unit Sales||Year 1||Year 2||Year 3|
|Door to Door Taxi Service||4,250||4,505||4,775|
|Wheelchair Accessible Cabs||3,500||3,710||3,933|
|Seniors on the Go||2,550||2,703||2,865|
|TOTAL UNIT SALES||14,800||15,688||16,629|
|Unit Prices||Year 1||Year 2||Year 3|
|Door to Door Taxi Service||$100.00||$116.00||$134.56|
|Wheelchair Accessible Cabs||$125.00||$145.00||$168.20|
|Seniors on the Go||$100.00||$116.00||$134.56|
|Door to Door Taxi Service||$425,000.00||$522,580.00||$642,564.37|
|Wheelchair Accessible Cabs||$437,500.00||$537,950.00||$661,463.32|
|Seniors on the Go||$255,000.00||$313,548.00||$385,538.62|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Door to Door Taxi Service||$20.00||$22.00||$23.10|
|Wheelchair Accessible Cabs||$15.00||$16.50||$17.33|
|Seniors on the Go||$20.00||$22.00||$23.10|
|Direct Cost of Sales|
|Door to Door Taxi Service||$85,000.00||$99,110.00||$110,309.43|
|Wheelchair Accessible Cabs||$52,500.00||$61,215.00||$68,132.30|
|Seniors on the Go||$51,000.00||$59,466.00||$66,185.66|
|Subtotal Direct Cost of Sales||$278,500.00||$324,731.00||$361,425.60|
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Personnel plan of taxi business
There are a lot of taxi services in the world. But only those are popular that make customers happy and satisfied. This taxi service business plan sample has all the detail regarding the startup of the taxi service business.
Understanding the importance of good staff, Williams included some essential features as a part of employee hiring criteria in the taxi cab advertising business plans. He also formed a list of employees necessary for running his business. This list can be seen in this taxi business plan pdf.
7.1 Company Staff
- 1 Operations manager
- 1 Customer Support officer
- 1 Marketing officer
- 10 Drivers
- 2 Mechanics
- 1 Web Developer to manage online sites
7.2 Average Salary of Employees
|Year 1||Year 2||Year 3|
|Customer Support Officer||$30,000||$33,000||$36,300|
Financial Plan of taxi business
A successful business yields profit. And It is essential to manage your operations timely and efficiently to earn profits. A detailed financial analysis is necessary to ensure that your business is not getting into a loss. The taxi business sample plan pdf must contain all the financial information to start a business.
The taxi service business plan startup costs are important for your financial plan. Moreover, in your financial plan, you must identify when and how you’ll cover your investment amount with the earned profits. Moreover, it would help to analyze your yearly expenses to determine the possibilities of reducing them.
Here we’re providing the detailed financial plan made for Grab A Cab so that you can get an idea of the business finances.
8.1 Important Assumptions
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.12%||8.20%||8.26%|
|Long-term Interest Rate||8.40%||8.44%||8.47%|
8.2 Break-even Analysis
|Monthly Units Break-even||5340|
|Monthly Revenue Break-even||$132,500|
|Average Per-Unit Revenue||$231.00|
|Average Per-Unit Variable Cost||$0.62|
|Estimated Monthly Fixed Cost||$163,800|
8.3 Projected Profit and Loss
|Pro Forma Profit And Loss|
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||$278,500||$324,731||$361,426|
|TOTAL COST OF SALES||$278,500||$324,731||$361,426|
|Gross Margin %||79.26%||80.33%||82.19%|
|Sales and Marketing and Other Expenses||$145,000||$148,000||$156,000|
|Total Operating Expenses||$565,200||$608,050||$660,960|
|Profit Before Interest and Taxes||$498,800||$717,957||$1,007,362|
8.3.1 Profit Monthly
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8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
|Pro Forma Cash Flow|
|Cash Received||Year 1||Year 2||Year 3|
|Cash from Operations|
|Cash from Receivables||$22,000||$23,760||$25,661|
|SUBTOTAL CASH FROM OPERATIONS||$73,000||$79,570||$85,936|
|Additional Cash Received|
|Sales Tax, VAT, HST/GST Received||$0||$0||$0|
|New Current Borrowing||$0||$0||$0|
|New Other Liabilities (interest-free)||$0||$0||$0|
|New Long-term Liabilities||$0||$0||$0|
|Sales of Other Current Assets||$0||$0||$0|
|Sales of Long-term Assets||$0||$0||$0|
|New Investment Received||$0||$0||$0|
|SUBTOTAL CASH RECEIVED||$74,000||$79,000||$85,000|
|Expenditures||Year 1||Year 2||Year 3|
|Expenditures from Operations|
|SUBTOTAL SPENT ON OPERATIONS||$69,000||$70,000||$76,000|
|Additional Cash Spent|
|Sales Tax, VAT, HST/GST Paid Out||$0||$0||$0|
|Principal Repayment of Current Borrowing||$0||$0||$0|
|Other Liabilities Principal Repayment||$0||$0||$0|
|Long-term Liabilities Principal Repayment||$0||$0||$0|
|Purchase Other Current Assets||$0||$0||$0|
|Purchase Long-term Assets||$0||$0||$0|
|SUBTOTAL CASH SPENT||$69,000||$74,520||$80,482|
|Net Cash Flow||$21,000||$23,000||$25,000|
8.5 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$282,000||$315,840||$355,004|
|TOTAL LONG-TERM ASSETS||$24,400||$27,328||$30,744|
|Liabilities and Capital||Year 4||Year 5||Year 6|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$19,000||$21,280||$23,919|
|TOTAL LIABILITIES AND CAPITAL||$300,000||$329,280||$370,440|
8.6 Business Ratios
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||2.11%||2.34%||2.59%||2.40%|
|Total Current Assets||149.80%||151.00%||152.00%||158.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||93.56%||96.09%||98.78%||97.80%|
|Profit Before Interest and Taxes||41.50%||42.62%||43.81%||33.90%|
|Total Debt to Total Assets||0.18%||0.18%||0.17%||0.40%|
|Pre-tax Return on Net Worth||74.08%||74.89%||75.00%||75.00%|
|Pre-tax Return on Assets||96.30%||101.12%||106.17%||111.30%|
|Additional Ratios||Year 1||Year 2||Year 3|
|Net Profit Margin||33.56%||34.60%||35.67%||N.A.|
|Return on Equity||55.80%||57.53%||59.31%||N.A.|
|Accounts Receivable Turnover||7.7||7.8||7.8||N.A.|
|Accounts Payable Turnover||15.6||16||16.3||N.A.|
|Total Asset Turnover||2.5||2.5||2.6||N.A.|
|Debt to Net Worth||-0.04||-0.03||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$244,000||$257,664||$272,093||N.A.|
|Assets to Sales||0.85||0.87||0.89||N.A.|
|Current Debt/Total Assets||1%||0%||0%||N.A.|
1. How do I start a taxi business?
To start a taxi business, you need to develop a good sample business plan for taxi service. The above business plan taxi company will detail how to start your taxi business.
2. How does the taxi business work?
By providing taxi top advertising business plan you can set up your taxi service business plan and provide your services to targeted customers.
3. How would you describe a taxi service?
The taxi service provides transportation facilities to people without facing public transport problems. Business plan taxi provides details for setting up taxi business.
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