Limousine Service Business Plan and SWOT Analysis

Limousine Service Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Limousine Service Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Limousine Service business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready
  • Complete Industry Research for the Industry
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • How to Start a Business Guide
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

Limousine services have remained extremely popular given that these are unique vehicles that are not often owned by individuals. While companies like Uber and Lyft have revolutionized the way that taxi services operate, limousine services have operate in a very specific capacity. As such, a limousine service is less impacted by a potential technological revolution. Of course, there are going to the applications that allow for people to order limousines on demand – however, these vehicles are typically only owned and operated by large-scale taxi and limousine companies. The cost of a limousine can range anywhere from $30,000 to well over $150,000 depending on the type of vehicles acquired. One of the common trends within this industry is to take a standardized car and have it elongated. As such, this creates very high barriers to entry for a limousine company. Generally, the startup costs associated with a limousine company range anywhere from $100,000 to $750,000 depending on the number of vehicles that will be acquired at the onset of operation. These businesses by having a high start up costs and are very low risk given a substantial amount of the capital being used is for the acquisition of tangible limousine vehicles. The gross margins generated from limousine services usually range anywhere from 70% to 90% depending on whether or not the cost of fuel is a factor in the cost of goods sold. The primary expense for any type of new limousine business is usually that of the cost of the driver.

Banks and lenders look to place capital with limousine companies given these businesses are able to use a substantial amount of capital for a vehicle which can serve as a very strong type of collateral. Almost all financial institutions will require that a limousine service business plan is submitted if a loan is being sought. This business plan should include a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page with figures that are standard to the limousine industry. Beyond a financial model specific for limousine service, a full demographic analysis showcasing the population, population size, population density, median household income, median family income, and relevant other statistics should be included as well. One of the foremost things that should be discussed within the business plan is how the limousine service will develop ongoing relationships with event planners, wedding planners, hotels, and nighttime entertainment venues. Given that these vehicles are usually used for a highly specific purpose especially for transporting a large number of people, it is very important that these ongoing relationships are maintained in order to ensure that orders will be placed on an ongoing basis for transportation services.

The limousine service marketing plan should focus significantly on developing a traditional marketing campaign coupled with online advertising. Again, one of the foremost ways of these businesses are able to immediately generate revenues and profits is through the ongoing development of relationships with third-party companies. Prior to the onset of operations, an owner operator of a limousine service should diligently work to send out brochures and other print advertisements to event planners, wedding planners, nighttime entertainment venues, booking agencies, and airport transportation companies, and other relevant entities that have ongoing transportation needs for their customers. It is very important that the limousine service also maintain a proprietary website that showcases the fleet, contact information, hours of operation, and other relevant statistics that will ensure that the limousine service can be found very quickly online. During off hours, many limousine services will keep their cars is use for people that have a large number of people that need to be transfer reported to and from nighttime/event entertainment venues and bars back to their homes. Many limousine companies have also taken to having applications developed so that these can be downloaded directly to the phone and used to communicate directly with the business. Beyond having a proprietary website, it is important that the limousine company also maintain a modest presence on social media platforms such as FaceBook, Twitter, and Google+. Most people use search engines to find limousine companies, but strong reviews on a companies social media platforms can ensure a higher percentage of people using the service on an ongoing basis. While important, is not imperative to have a massive social media presence.

A limousine service SWOT analysis should be developed as well. As it relates to strengths, the startup costs are high and the risks are low for owning and operating a limousine business given the large amount of tangible assets coupled with the high-margin income generated from services. For weaknesses, there are always a number of competitors in any market that are going to be competing for the same fares. As such, it is important to maintain a number of relationships having a expansive marketing campaign ensures that people are aware of the limousine company’s brand name. For opportunities, most owner-operators will seek to acquire additional and unique vehicles on an ongoing basis in order to boost the visibility of the business while concurrently increasing revenue substantially. Almost all financial institutions and investors are willing to put up any needed capital that would be required for the expansion of this type of company. For threats, as stated above there are always going to be technological advances that are changing the transportation industry. However, the uniqueness of these businesses and the vehicles that they own allow for these companies to operate in a non-commoditized capacity. As such, it is important that the owner-operator continue to monitor changes in the technological infrastructure for limousine companies but they can rest assured that this business is not going to change substantially over the next 10 to 15 years.