Has is been a year already? It's actually been more than a year we have officially been in business. This video has the truth about our status, how we are doing and the future we look forward to.
Ok, first off I'm not a businessman, never attempted to be one. Just a guy that likes to run a SMALL limo service. Here's my take on this whole thing.
1 - Dont get too big too fast!!!! - Most important. I had an old limo guy that dominates St. Louis tell me the way to operate small and profitable...1 sedan 1 stretch 10 pax lincoln and 1 suv limo
2 - Buy USED but GOOD limos. Look at Platinums Escalades....you could fare much better with one of those and they are bitchin.
3 - Split your 15 plus pass limos and your 15 minus pass limos into 2 seperate companies OR "make your big cars smaller" you'll have to email me on these. you'll save $$$$
4 - You need to keep those recurring expenses down, so I would have went with some part timers for cleanup, driving, etc.
I'm not wealthy, but I keep my expenses under 1200 per month total costs inc. insurance. I clean my truck and I pay my drivers when I can't drive. Limo services for the most part are like small trucking companies....the owner drives too and does his own mechanic work *and probably skirts the law when he can* to save money. Thats the limo industry.
Great Words from Signature! I am a business man, honestly this is a hard business to make profitable.
I've been around as long as you have. I started in a completely opposite way from you. Theres always one key in any business, if you grow too fast you've just set yourself up for failure. You are now at a pinnacle point, if you keep doing things the way you have been, you will be out in six months.
When I started I gave myself a small budget an stuck with it. My cars where on the road ALL THE TIME. To the point I was farming all the time. Once I got to that point I then invested in a stretch SUV, because that was the majority of my F.O. Work. The SUV wasn't like anything I own today, but It was an inexpensive tester, it made lots of money and now it's doing the same for a good friend.
Knowing your market is Key. You may have too many big limos, they are awesome. Its all I have now, a year later but Nashville is a party town.
I would suggest you liquidate some of your units and downsize, and re-work EVERYTHING. So far it hasn't worked to well so change is honestly eminent.
You may not really know the Portland market. I would trim down to 1 Stretch SUV, 1 10 Pax Stretch, and a Sedan. This way if you do hit the gutter you'll live. Once the demand is there for more cars buy what the clients ask for, and BUY YOUR CARS RIGHT!!! Don't just jump at the first cool limo, they are revenue generating cars not your personal cars, letting your own personal presences and emotions in on the deal screws you. Once you are farming 3-4K worth of revenue out buy add something.
Your next step is to trim down your operations. If you can't handle calls hire a receptionist. If you can't clean your cars hire ONE $12 and Hour part timer. Your day to day expenses are insane. You don't need a MANAGER at this point, your company is sucking money every day. The truth is the majority of operators that start out like this fail. Your best bet in any business is start out small and grow when your customers ask you to.
The things I would change NOW:
--SELL EVERYTHING EXCEPT 1 SUV, 1 10 PAX & A SEDAN
-- Trim down your day to day operations
-- Get aggressive on google. (I know thats a drop in the bucket for you)
