Are you looking to set up a taxi company that is profitable ?
That’s a good business idea.
One of the most lucrative businesses in existence today is the transportation is taxi.
Even in the technological advanced world, where people can transact billions of dollars worth of business virtually, there is still need to move persons or goods from one part of a country to the other.
Transportation business has many facets. There is air transportation, water transportation, rail and road transportation.
This article will focus on one of the commonest aspect of road transportation -Taxi.
Sometimes they are referred to as cabs; most times they are called taxis.
Whatever you chose to call it, any means of transporting an individual or a small group of individuals from part of a city to another is what this article is dwelling on.
If you are interested in starting your own taxi company, you have picked interest in the right business, irrespective of the country you are presently, taxi business have been around for scores of years and it is not ready to go.
Places that used to be towns have become major cities.
Population explosion has made crowded cities to become more congested.
Even when some nations claim to be experiencing economic hardships, businesses still boom, more investors are attracted, more people are employed, many more move from one part to the country to the other.
Millions of taxis are waved down the world over on a daily
basis, thus generating millions of dollars in income for
those who own the taxi companies.
It is not too late to tap
your own millions as you invest in your own taxi company
What can you do? How can you go about setting up
a cab or taxi company ? Please read on.
How Much Money Can You Make From Taxi ?
You decide how much money you want to make from your
taxi business, the better you are in managing it, the money
money you make. Average taxi in the major cities in Ghana
makes about $150 daily.
From this you will
settle the expenses such as fueling and others.
You get to
keep whatever the remaining if you are driving it yourself.
Since you are operating as a taxi company, charge
percentage of fares for the right to drive the cab from each
driver you employ.
If its a new taxi and your company is
registered and approved by the Government, the rate you
charge will be about $70 daily flat rate while the
driver takes care of fueling and keep the rest.
that to how many taxis you have. If you have like 100 taxis.
Get Governmental Approval
Registering a business name is not the same as getting an
approval from the government.
Getting authorization here
involves licensing from the government for you to be owner
of Cab or Taxi Company and its operations.
It also includes
getting the right to paint your cars in the approved colors
depending on the city you are situated.
You will also need
to get the routes that your cabs will ply approved.
All these can be done within few weeks and the Lawyer
who helped in your company registration can also do it
together with obtaining the Government approval for you.
Get Cars Suitable For A Taxi Company
You may not need to buy a lot as a beginner; there are
people who will be willing to partner with you as a taxi
Such ones however will only bring their car to
you as partners when they see that you already have a
structure on ground.
For now, you may have to start with
two or three cabs of your own.
Before you go to the auto-
mart, what are some of the things you need to give serious
At this stage, care is needed on your part so
that you do not go for cars that will constitute problems for
you later in the future.
While it may not be wrong to appreciate beautifully
designed cars, you are not going into the business so that
you can exhibit beauty.
Even if you are an absolute
neophyte, take your time to ask around for brands that
combine comfort with durability.
Cars that are fuel efficient are your best bet as you will be
running on a lot of fuel.
You also need to consider if the car
you are buying does not attract expensive maintenance.
you have decided on what to buy, take an experienced
automobile expert with you so that he will do the final
inspection before you pay.
Never go for second hand or used cars.
The original owner
may hide some faults that the car has from you.
taxis are put to use much more than private cars, buying
used vehicles will only put your business at risk as they
will soon wear out, requiring constant expenses.
go for something new does not mean you have to expend
all the fortunes on buying cars, it is also important that you
look out for something relatively affordable.
Insurance Is A Necessity
The business you are about to start attracts a lot of risks;
do not attempt to dodge insurance. Every car you buy must
have a comprehensive insurance cover.
Apart from the fact
that the law necessitates that you do insurance cover for
your business; insuring them will serve as a protection.
While budgeting for your taxi company, it is important that
you include funds for budgeting in the business.
Paint And Tag
The next stage is taking your car to experienced auto
painters so they can spray paint your car for you.
that they use the exact colour specified by the authority so
that you do not do double expenses.
You also need to tag
each car for identifications.
While some companies use
number tags, others use letters and others chose both
number and letters.
Tracker Is Important
At this stage, you need to set up a monitoring and
surveillance system for your business.
Apart from the fact
that it will prevent your cars from theft, it will help you a lot
to monitor their whereabouts every time.
Thus they will not
be able to step out of the bounds you have set for them.
Get Responsible Drivers
You need to go for experienced and responsible drivers
licensed by the government to do the business.
You are not
organizing a car race, so you need to employ not on the
basis of their ability to race, but on the basis of their ability
to drive with minimal accidents.