Taxi business plan for starting your own business
Are you looking for how to start taxi service ? If yes, then this 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 with just a few cars and drivers. Moreover, it can easily be expanded whenever you want.
To start a business, it is important to follow a certain procedure. You need to draft a transport business plan for your taxi service business as the first step. For that, you can look at associated plans such as tipper truck company business plan . If you also want to launch a mobile app to let your customers book a taxi online, you should also analyze mobile apps business plan .
2.1 About the Business
Grab A Cab will be a taxi service business owned by Benjamin Williams. The business will be based in San Francisco. The main aim of this taxi service business will be to provide trustworthy, well-timed, and safe cabs whenever and wherever someone needs them. Grab A Cab taxi service will provide cab services while integrating the operations with technology to facilitate individuals even more.
2.2 Management of Taxi business
After you have learned how to start a taxi service, it is important to figure out how to manage the taxi business operations successfully. There is no better way to plan out every aspect of your taxi service than developing a business plan for taxi service pdf. To know how what your business plan should include, you can read the strategic plan provided here. In this taxi business plan example, we will guide you about all the components of a strong business plan so that you can develop your call taxi business plan.
It is better to hire business planning services to get a professional business plan for your startup. However, if you have the business knowledge and you want to create the business plan on your own, you can do so after doing adequate research. In that case, it is recommended to also go through a logistics company business plan.
2.3 Customers of Taxi business
Through our market survey and feasibility studies, we identified those customers that are most likely to benefit from our services. The recurring customers of the taxi service business will be:
- Event planners
- Retirement and care homes
- Hotel and airport transfers
2.4 Business Target
The main goal of our taxi service business is to become the most-liked transportation company in the San Francisco Metro Area within three years. We aim at doing so 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 MBA two years ago. After that, he pursued a position as a manager in a noteworthy company. He was quite fascinated by the cab service in his state. After a few months, he left the post to fulfill his lifelong passion of starting his own 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 and outdated methods to serve their customers. He decided to use the latest technological features to bring innovation to the business domain.
3.3 How Grab A Cab business will be started
Step1: Plan Everything
Good planning is crucial when you are going to start a business. To ensure that you plan well for your startup, you should explore how to open a taxi company in the United States.
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. You can also 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 offerings. This can be achieved by creating a brand around your business idea. This will include everything from your principles to your competitive advantages.
Step3: Establish Your Office
The next important step is to establish your business. For this purpose, Benjamin Williams decided to buy a large parking space in the main San Francisco commercial area. He made sure that the place was spacious enough to park all his cabs. Moreover, he also got a workshop constructed inside that place to maintain and repair the cabs. In this way, he reduced the expense of sending damaged cabs to other workshops.
Step4: Establish a Web Presence
Since we are living in the Information Age, it is necessary to establish a web presence to get known. Therefore, Williams decided to develop a website for the business and establish social media presence for marketing 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|
Services of taxi business
Before setting up a taxi business, you need to decide on your business’s services. 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 up customers from their homes and drop them off 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. This approach is used as it 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.
Marketing Analysis of Taxi business
excellent work, competent advice.
Alex is very friendly, great communication.
100% I recommend CGS capital.
Thank you so much for your hard work!
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:
Business Plan for Investors
Our primary customers will be the school students. They are expected to avail of our regular services to go to school, travel 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 people in retirement and care homes since they 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 travels. These groups don’t typically mind paying a bit more for a solution that takes care of transportation in an all-in-one way. Therefore, we expect to earn a handsome amount from them.
|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. The prices are set at a minimum to get introduced to a wider audience from the very beginning.
Marketing Strategy of Taxi business
To open taxi business, you must develop the best business plan for a taxi business. In addition, before starting up a taxi company, you also need to develop a strong marketing strategy to attract more customers.
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 presence, customers can inquire about our services.
- We will also implement ideas from roadside assistance business plan to prevent any inconvenience to our customers.
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|
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 details regarding the startup of the taxi service business.
Understanding the importance of good staff, William 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
It is essential to manage your operations timely to earn profits. A detailed financial analysis is necessary to ensure that your business is not getting into a loss. To ensure that you make a detailed financial plan, you should include all the components that we have mentioned in this taxi business sample plan pdf.
The taxi service business plan startup costs are also 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. This approach would also 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
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.|
- 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 do that.
- How does the taxi business work?
The taxi business works by purchasing some taxis, procuring a large parking area, and hiring staff to run and manage services. In this taxi top advertising business plan we have explained all these three aspects in detail. If you want to set up this business, you can take help from this taxi service business plan.
- 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.
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.