Beginner’s Guide on Starting a Limousine Hire Business in the United Kingdom
It is everyone’s dream to be able to ride a fancy limousine. However, limousines are pretty expensive. To make one’s dream come true, limousine hire businesses were conceptualized and operationalized. Nowadays, this industry still has a pretty big demand, and starting a limousine hire business will be a great idea!
What Are the Trends in the Limousine Hire Market?
The limousine hire industry has swiftly grown in recent years. As proof, there is an increase in the number of limousines that can be seen along the roads of the United Kingdom.
Traditional limousines are the most commonly used for-hire vehicles. Aside from that, they are also usually utilized for formal occasions such as civic ceremonies, weddings, and funerals. These vehicles are being driven by who we call the chauffeurs, and this type of service is pretty in demand for business users, VIPs, and those who want to experience an upmarket airport transfer.
In the early 20th century, limousine hire had a steady demand, and the main contributor to this is the airport transfer. However, during an unexpected economic downturn in 2010, there is a reduced demand for limousine hire from corporate clients because many businesses decided to cut back on their expenditure during that time. Besides that, the number of tourists during holidays and non-holidays in the UK has also declined in the same year. Only weddings and promenades are what upheld the industry during these trying times.
Come the second half of 2013, the economy is improving, and the recovery continues until 2015. During this period, consumers were now spending on their experiences and entertainment, driving the market of limousine hire again.
How to Start and Register Your Limousine Hire Business
The market of limousine hire nowadays is still pretty steady, and you might want to take advantage of it by starting a limousine hire business of your own! Here is how you can do that.
Step 1: Do Your Research
Before you can proceed with your company registration in the United Kingdom, you must research many things first. You must have information on your target market, estimated demand, and possible competition.
Limousine is a luxury type of car, and there are many groups that can be your target market. These groups can be the members of the public, corporate employees, local celebrities, trade customers, large firms, big organizations, sports clubs, and tourists. Once you are done choosing which group/s will be your target market, the next thing that you should do is to identify their needs, preferences, and more. The information that you will gather in this part will be used later on when you are planning your services.
Estimating demand, on the other hand, can be quite complex. The level of demand can be affected by the nature of your surrounding area and by how big the local population in that area is. Bigger demand can potentially be found in bigger towns and cities. However, there are also other factors that can influence the demand for limousine hire, and these may include the presence of an airport, the size and number of local businesses present within the area, and if there are existing colleges and universities.
Lastly, you also have to consider the level of existing competition. You must research what kind of service they offer, who are their target markets, what other perks do they give out, how they price their services, and more. Successfully identifying and having sufficient information about the existing competition can help you with how you should strategize your business.
Step 2: Conceptualize and Plan Your Business
In this step, you will have to decide which services you will offer. If you don’t have any idea yet, you can consider providing limousine hire services for any of these events:
- Airport transfer
- Birthday parties
- VIP events
- Business travels
- Guided tours
- Day trips to sporting events
- Group outings
Just take note that different customers will always have varying expectations on the level of service that you will provide. For example, in a wedding, they are most likely to expect to see you in a formal coat and tie attire and that you would go out first to help the bride get off the car. Another example is when picking up your clients from the airport, they will be expecting you to carry their luggage.
Aside from determining what services you will provide, this step also includes pricing your services. This is the point where your research about the existing competition will become helpful. Well, your pricing needs to be at par or better than theirs if you want clients to notice you.
Once you are done with this, you are just three steps away from achieving your UK company incorporation.
Step 3: Minding the Legalities and Licenses
Over the recent years, limousine licensing has become a point of debate. Limousine licenses, among other required legal information to be collected from limousine owners, are required for those who want to promote their limousine services for hire. The National Limousine and Chauffeur Association (NLCA) is among those who want a standardized regulation for limousine licensing and has cooperated with several travel organizations such as the Vehicle and Operator Services Agency, Driver, and Vehicle Standards Agency, and the Department of Transport. This cooperation aims to establish a clear framework for limousine licensing over the coming years.
Eight-seater limousines are required to have licenses issued by local authorities. Regulations across all authorities regarding limousine licenses will also be standardized. Discussions regarding stretched limousine types will also likely result in the same licensing process. For limousines that have up to 16 seats, there may be some amendments to the existing limousine legislation.
Take note that limousines without proper licenses will be subjected to impound and condemnation. Aside from that, we can also help you with minding the legalities. Just ask for help from our corporate service provider in the United Kingdom. Luckily, at 3E Accounting, we specialize in helping aspiring business owners with all the legalities.
Step 4: Insuring Your Business
Having insurance coverage will protect you and your business from the cost of unforeseeable events. You must have insurance coverage for each different risk that comes along with running a limousine hire business.
As a start, you can avail yourself of General Liability Insurance. This type of insurance will help you cover medical expenses and lawyer fees in case a bodily injury or property damage takes place.
Step 5: Promote Your Limousine Hire Business
What will be the sense of putting up a business if you won’t have customers? To attract customers, you need a successful marketing initiative. You should create a good image, such as becoming a trustworthy limousine hire business or a limousine hire that provides comfort and safety. Once you have built your brand, you can now appeal to your customers by giving them discounts and other perks. For example, if your market is local celebrities, VIPs, and party-goers, offer them a bottle of wine or champagne!
Get the Limousine Hire Business Running With Us!
Take advantage of the growing demand for limousine hire and start your business with us! We can help you start your limousine hire company by assisting you with your business registration, permits, and licenses. Aside from that, we can also help you with your other needs, such as accounting and secretarial services.
So, if you want to get your limousine hire business up and running, contact 3E Accounting. We will make sure that your dream business will come true!