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Most customers interact only with their chauffeur and the person who answers the limousine company's phone. Growing your business will require you to make some decisions about who picks up the phone when you cannot.

Your options:

Proper telephone etiquette will ensure the first impression of your business is a good one. Read these article from LCT Magazine to create a telephone answering protocol that will be followed regardless if the phones are answered in-house or by service:
Telephone Etiquette 101 by Amy Carter
Phone Voices by Rebecca Christiansen
When Is It Time For the Owner To Stop Driving? by Tom Mazza
How to Increase Phone Sales by Denise Bibee

Most new companies cannot afford the payments and down payment of a new limousine. In fact, most new limousine companies shouldn't even buy stretch and focus on sedan work.

Remember, in the beginning you can farm out work to other companies with the types of vehicles that are not currently in your fleet. Don't buy a new vehicle unless know you have enough work to cover all of the new expenses each vehicle brings.

Be sure to review our section on Coachbuilders to get a better understanding of how to choose the right vehicles for your new limousine business. Wheels of Gold by William J. Goerl has a great section on choosing your first vehicle.

Keep in mind; an increasing number of insurance companies are not going to insure a vehicle that is not QVM or CMC certified or over 3-5 years old.

Buying a used limousine basics:

Where to find used limousines and sedans:
LCT Magazine classified section
International Limousine & Livery Trader
LimoForSale.com/
Limos4Sale.com
WestWindLimo.com
EbayMotors.com
AutoTrader.com
Cars.com

All professions require the proper education and driving a Limousine is no exception. Offering a training program shows your customers, employees, and insurance company that you understand there is a lot more to being a Chauffeur than just getting behind the wheel.

Customers appreciate professionalism. The majority of your limousine clients will only interact with the reservation department via the phone and the Chauffeur that picks them up. Making a commitment to training will insure a consistent high level of service as they interact with different members of your staff. Consistent service equals repeat customers whom are confident in referring your company to friends and family.

Accepting credit cards is vital if you are going to operate a limousine service. The trouble is, rates charged by credit card processors can be deceiving. The section is designed to help you, the limousine entrepreneur, get an understanding of how the system works and retain more of each dollar earned.

As Tom Mazza, the leading limousine industry consultant points out, “A great rate of 1.7 percent can, in actuality, be four or even five percent after factoring in various set-up charges and per-transaction fees.” Mr. Mazza also identifies why limousine operators have a difficult time getting low processing fees, including: Many operators are home-based, a high number of limousine businesses close yearly and a large number of transactions done over the phone.
Don't Let Credit Card Fees Take a Big Bite Out of Profits by Tom Mazza
Time to Get Techno Savvy by Neil Weiss (see Swipe to Save on Credit Card Fees)

How the process works
StartUpNation.com has a Webinar (on-line seminar) that explains the benefits of accepting credit cards and helpful tips on setting up a merchant account. If you want an in depth explanation of how the whole credit card processing system works, then check out Credit Card 101 from Shift4 a leading developer of enterprise payment solutions.

Like most new limousine owners you will wear multiple hats. You are the:

• Friendly voice booking reservations
• Prompt and courteous chauffeur
• Well connected sales professional
• Meticulous vehicle maintenance technician
• Penny pinching accountant
• Visionary CEO

A one-man show has little time for growth. Finding, training and retaining quality employees to fill each of the above roles should be your main focus. It is also every successful entrepreneur's path to enjoying more free time and income with each passing year.

There is a great book called The E Myth: Why Most Small Businesses Don't Work and What to Do About It by Michael E. Gerber. The main theme of the book is; most entrepreneurs spend all of their time 'working in their business' instead of 'working on it'.

The key idea of the E Myth is to structure your business like a franchise that is going to be sold. This is done by creating detailed job descriptions, specific functions and easy to follow systems. Hiring is much easier when you know exactly the type of person you are looking for, what they will do each day and how to measure their performance.

In the end you have created a company that runs well even when you take time off. An added bonus, as each position is filled you move higher on the corporate ladder and are entitled to greater compensation.

Here are links to articles from LCT Magazine that will help you in your quest to hire a quality staff:

How to Hire Great Chauffeurs, Managers...and Keep Them by Eric Lassiter
How to Hire a Salesperson by Denise Kano
Hiring the Right Chauffeur by Jay Seidel
How To Find Quality Chauffeurs by Rebecca Christiansen
When Your Driver Becomes Your Competitor by Tom Mazza

Unless you plan on being strictly a Limousine Broker, you will need vehicles in your fleet. Each vehicle you purchase is another business expense and liability. Therefore, you want to make sure each vehicle purchased is going to make money.

Doing your homework and asking the right questions is the only way to confidently make critical decisions such as:

Wheels of Gold by William J. Goerl has a great section on choosing your first vehicle. Below are links to articles that will help you answer these questions:

Going to the LCT Show is the best way to meet one-on-one with coachbuilders, dealers and lenders, who will give you a clear picture of what's available. Until you can get to a show follow these links to a list of limousine coachbuilders:
Ford Motor Company Qualified Vehicle Modifiers (QVMs)
The Cadillac Master Coachbuilder List (CMC)

While poor management is cited most frequently as the reason businesses fail, inadequate or ill-timed financing is a close second. Whether you're starting a limousine business or expanding one, sufficient ready capital is essential. This section will help you find the articles and resources you need to start your limousine service.

Not All Money Is the Same. There are two types of financing: equity and debt financing. When looking for money, you must consider your company's debt-to-equity ratio - the relation between dollars you've borrowed and dollars you've invested in your business. The more money owners have invested in their business, the easier it is to attract financing.

Equity financing is 3rd party investments into your company and often comes from non-professional investors such as friends, relatives, employees, customers, or industry colleagues. These investors will only see a return on their investment if you are successful.
How to Borrow Money from Family or Friends

There are many sources for debt financing: banks, savings and loans, commercial finance companies, and the U.S. Small Business Administration (SBA) are the most common. These loans will need to be repaid regardless of your success.

For the most part, limousine startups need money for vehicles. While leasing a vehicle continues to offer certain tax advantages, low interest rates can make financing attractive. Here are some articles from LCT Magazine to help:
How to Master Financial, Credit Management by Neil Weiss
Financing vs. Leasing by Denise Kano
How to Buy a Limousine Today by Jay Seidel and Denise Kano
Strategies to Reduce Your Tax Bill by Mark E. Battersby

Obtaining insurance is a critical part of starting your limousine business. Rates vary state-to-state, but do not get discouraged when you are quoted prices 3 to 4 times higher than your private vehicle insurance.

• Find an insurance broker that specializes in the limousine industry
• Check with your local association for group insurance discounts
• Consider higher deductibles to reduce your premiums
• Check your credit history and correct inaccuracies
• Include a business narrative with your submission to an insurance carrier
• Hire chauffeurs with a clean safety record
• Show you have chauffeur training and retraining programs in place
• Remember, most insurance companies will not insure older vehicles or vehicles that are not QVM or CMC certified
• Ask about discounts for anti-lock brakes, air bags and other safety features

Here is a list of the better known Insurance Agencies that work with limousine companies. Not all agents offer coverage in all 50 States. Don't shop on price alone. There are a lot of other factors that need to be considered, from limits and type of coverage to financial strength of the insurance company. If it sounds too good, it's probably not a good deal. You can find the rating of your potential insurance company from A.M. Best. If you know a company that should be on our list please email us their contact information.

Many new limousine operators opt against buying software because they do not want to spend the money. Even though this is a valid concern, you should look at limousine reservation management software as an investment not a cost.

If your a one man, one car operation you can run your business the old fashion way with a paper based system. However, unless you want to remain a one-man show, you should evaluate and purchase one of the Limousine Management systems.

As you compare limousine software companies, find out what best fits your company's needs and budget. You will also need to determine if your new limousine business is better off with a Web-based or Desktop solution. Having a Web-based system will make it easier for you to enter reservations and accounting from any computer with an Internet connection.

Limo AnyWhere has developed complete limousine reservation management software for small to mid-size transportation companies. They also have a great Limousine Software Comparison web page with all of the leading limousine software solutions. Go here to see which limousine software is right for your company.

Every new company must wade through some red tape. The rules you must comply with and the money you lay out for permits depends on the:
- Address of your business
- Cities and counties you will pick up from
- Air and seaports you will service
- Types of vehicles in your fleet
- Geographical area your vehicles will travel

Permits can be expensive for limousine and sedan startups. In some cities and counties new permits are only issued in yearly lotteries. Do your homework before you buy a vehicle and choose your business address, otherwise you may find yourself with hefty fines and impounded vehicles.

For example if you will ever cross the State border than you will need a USDOT Number. The Federal fine for transporting passengers in interstate travel without a valid MC Number is $10,000.00. You can learn more at The National Limousine Association.

How can you find information for your city, county and state? Finest Insurance Agency, Inc. has compiled a helpful list of regulatory agencies. You should also visit your city, county and state websites.

You will need more than a vehicle. Here are some web sites that offer the extras you need to create a complete experience for your limousine clients.

Naming your limousine business is giving birth to a brand. The new name is an empty container and your job is to fill it with positive customer experiences. As your company grows so will it's brand. Your best bet is a unique, easy to spell name that is NOT trademarked and is available as a dot com.

There is an art to business naming. This page will only help to spark ideas and hopefully assist you in creating a memorable name and positive first impression. Read the articles, follow the steps, have fun with our light-hearted Limousine Company Naming Matrix, but most importantly; take action.

Free Limousine Business Naming Idea Generator
1. Grab paper & pen. Create a grid similar to the one below and start writing your ideas down.
   
   

   Naming Idea	Domain Search	Trademark Search	Fictitious Name Search	Google Search
   Apollo Express Limousines	ApolloExpressLimousines.com is available	No Trademarks found	Fictitious Name is available in Florida	There are 4 companies with a similar name. www.apollolimos.co.uk/ www.apollolimousines.com/ www.apollo-limo.com/ www.apollolimo.com/



2. Get your brain cells firing with these questions:
   - Would you consider using your own name or initials in any way?
   - Would using your city, county or State in the name benefit your marketing?
   - Would you prefer to describe your level of service in your name or you tag line?
   
3. Search for existing companies that may already have taken names on your list.
   Internet Domain: Make sure the dot com is available by going to Directnic.com and typing your new company name into “Find Your Domain Names Today!” search box. If the '.com' is not available then move on. Avoid buying other extensions such as .net or .org unless you want most of your Internet traffic to visit the guy who owns <yourname>.com
   Search the United States Patent and Trademark Office database:
   http://www.uspto.gov/
   Use the default search options and try a few variations of your naming idea. Local Fictitious name search: Go to your state's Division of Corporations web site and see if your name is already taken.
   Google Search: Simply go to Google.com and search for your new name idea.

If your idea is already taken; try adding a numeric value, an adjective, your city, county or state's name. Contact a trademark attorney if you have your heart set on a trademarked name.

In the United States, there are approximately 12,400 limousine companies operating 126,000 vehicles. About 11% of these operations have fleets with more than 20 vehicles. Limousine companies provide work for 275,000 people and transport 400 million passengers annually for a variety of purposes that include airport transfers, business and corporate travel, weddings, and social outings.

The term 'Limousine' is actually somewhat of a misnomer because it encompasses a diversified vehicle fleet. Of the 126,000 vehicles in operation in this category:

Sedans		46,000
Stretch limousines less than 85"		10,000
Stretch limousines 85" to 130"		24,000
Stretch limousines more than 130"		4,000
Stretch SUV's		7,000
Non-Stretch SUV's		8,000
Vans/shuttle buses		16,000
Motorcoaches		4,000
Limo Buses		4,000
Other		3,000

It is highly recommended you join a local limousine association. You will be on top of local regulations, learn better ways of doing things, get discounts, and get over-flow work from your new friends. The National Limousine Association (NLA) offers a directory of local/regional associations.