More and more people are choosing to start businesses of their own rather than going to work for someone else.
After all, there aren’t a lot of job openings currently on the market. Creating your own business can be a good alternative to waiting around for a traditional job.
It is precisely this entrepreneurial attitude that helped so many others before you start their own UK-based taxi services.
If you are thinking of starting your own taxi service, the following tips can help:
1. Is there enough demand?
The taxi business can be highly competitive. Check to find out if there is already another company that services the area you are interested in.
You may find that there are already more taxis in service in a particular area than there is demand. In this case, it is probably best to look at other locations.
You should also try to figure out what type of rides you would provide most often.
For instance, if your company is going to be located near an airport, it is a pretty safe bet that you would help passengers get to and from their flights.
One way to set yourself apart in a crowded market is by providing specialty services. For instance, you may position yourself as the top cab service for a hospital in your area.
2. Secure the proper licensing
Regardless of how or where you plan to start your business, you need to make sure that you have a valid operator’s license before you begin.
Apart from Hackney licenses, the local council is usually responsible for issuing these licenses. There are a number of requirements that you must meet before they will agree to give you a license.
These requirements may include passing a background check or purchasing taxi insurance for your vehicle.
Be sure you understand the difference between a Hackney license and a private hire license so that you get the right one for your needs.
3. Purchase insurance for your taxi
Because your car will be used for commercial purposes, you can’t just purchase standard vehicle insurance, but instead, need to look for a taxi-specific insurance policy. You may also want to consider coverage for interruption of earnings or public liability issues that may arise.
4. Know that taxi businesses take a lot of work
People don’t just need rides during regular business hours. You need to be willing to work around the clock if you want to succeed with this business model.
That includes working holidays and weekends as well as evenings. In fact, these times are often your busiest.
Check with your family before you start your business to make sure that they are on board with you being gone a lot of the time.
If you plan to have more than one taxi, you can either have drivers bring their own vehicles, which has a number of downsides, or you can lease a fleet of vehicles for the drivers to use.
You may find that a leased fleet is easier to insure and that the vehicles come with warranties that can cover any damages that may be incurred.
Having a fleet of cars may also help you qualify for a lower insurance rate.
