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The following is a list of requirements for starting a
limousine service business in Houston, TX.
- The owner of the company must be a U.S. Citizen or
documented to work in the USA.
- An application must be filed with the Transportation
division of the City of Houston and a hearing will be scheduled.
- You must have four vehicles to start a company or a stretch
and two other vehicles which can be Town Cars, SUV’s or
15-passenger vans. The stretch may not be older than 10 years.
The Town Cars or Van cannot be older than six years. The
vehicles cannot have more than 100,000 miles when first put into
service. There is a list of luxury sedans and SUV’s that are
acceptable.
- The commercial limousine insurance for the cars is
expensive, with annual premiums of $2,500 to $4,000 per vehicle,
depending on the level of coverage.
- Drivers must be 25 years old (For insurance purposes),
eligible to work in the USA, pass FBI background checks, be drug
tested and fingerprinted, have no felonies the last 10 years and
no tickets for speeding or DUI. (Insurance reasons).
- Most residential areas prohibit limo companies from being
operated out of a home. Some also have a restriction on the
number of vehicles parked near the house.
- Most warehouse leases prohibit living on the premises,
especially with children, although you can have a night watchman
or operate around the clock.
- Yellow Page advertising can cost $5,000 to $50,000 per year.
- The nature of the business is very competitive. .There are
already 300 companies and 1,300 vehicles. These companies will
do anything they can to steal your regular customers. You might
want to consider working for a company before starting your own.
Burn-out is a big problem among operators. Owning your own
business is no bed of roses.
- You should have enough capital reserves to operate in the
red for two years before you start showing any noticeable
profits over expenses. Your family may or may not understand why
you never have time for them anymore.
- Want to know how to make a small fortune in the limousine
business? (Start out with a large one).
- If you have carefully read and understand what’s contained
in this article and still want to start a limo company, the
first thing you should do is join the Limousine Association of
Houston and come to meetings where you will learn fast about all
these problems and you can network with other operators, new and
old. You should also go to the national limo conventions in Las
Vegas and Atlantic City. There is room in any business for a
true entrepreneur willing to put forth maximum sustained effort
for a long period of time.
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