Business Opportunities

It doesn’t matter whether you have an established limousine hire business or you are looking at starting a new venture, you will always need enquiries and most limo operators are always going to want even more. here are a few tips for generating more enquiries.

Optimise your Website

Advantages

1. Once your site has been optimised properly, provided you add new content and include your website in some quality general directories you should remain within the search engine results

2. You do not have to pay other people for enquiries or lead generation

Disadvantages

1. The cost of search engine optimisation varies wildly and the results may only be temporary

2. Search engine algorithms change on a regular basis and this can affect your rankings, whatever content and updates you complete

3. SEO specialist will offer no long term guarantees

4. Maintaining a good position in the search engines may well require adding your website to some good quality general websites and even some niche directories, adding to the overall cost of the optimisation.

Pay Per Click

Advantages

1. Setting up an account is simple

2. Placing you add is a very fast process and your advertisement could be up within a few minutes

3. You can set a daily/weekly budget

4. The advertisement can be paused or cancelled whenever you wish

Disadvantages

1. Can be very expensive unless you are very specific on your keywords

2. You will need to bid on the keywords and this can very expensive

3. If you set your budget too low, your advert will not be shown once your budget has been met and you cannot determine when this will be

4. You can be subjected to ‘click fraud’ where someone, competitors, advertisers etc., deliberately click on your advert. There are safeguards against this type of fraud, but it would be impossible to remove the risk altogether.

List in a General Directory

Advantages:

1. Listings in some of the better directories may only require a reciprocal link and you could gain a backlink to your own website. In fact, some directories do not even insist on a reciprocal link, they just insist that you adhere to their listing guidelines.

2. Most paid directories are not expensive and tend to be better optimised that the free directories, therefore, the chances of someone finding your business in their search engine results are much higher. Some directories also allow you to have a separate page, where you can place additional information about your services and normally add deep links back to specific pages on your site.

3. There is no shortage of general directories to choose from

Disadvantages

1. General directories are just that. Therefore finding a good one can be very hit and miss. A good start is to complete a keyword search for limo hire ‘your area’ and see which directories appear in the first few pages.

2. Many directories also use some form of ‘pay per click’ advertising programme, therefore you listing (paid of otherwise) will be competing with these entries

3. You may be placed on a high value, visible page initially, but after time you could find your listing much further down their list, unless you elect to go for a directory with your own dedicated page.

List in a Niche Directory

Advantages

1. There are a good selection of limousine directories  and chauffeur car directories to choose from

2. Prices are generally fixed, payable annually in advance and quite reasonable (under £50)

3. The better optimised directories receive a lot of traffic looking for your services

4. You can normally pick and choose which sections, towns, cities or counties that you want to be included in

5. If the directory includes your website address, you will gain a valuable and relevant backlink to your own website from each page your are listed on

Disadvantages

1. Some directories supplement their income by adding ‘pay per click’ to each page, these are then competing with a listing that you have paid for

2. Not all directories are the same. If the directory has not been optimised for local search, then it relies heavily on users searching for ‘limousine directories’. Not very likely, therefore it is recommended that you complete a keyword search for limo hire ‘your area’ and see if the directory comes up in the search engine results

3. Most directories rely on visitors visiting your site or sending you an email, rather than sending you enquiries. This could be an advantage however, because you will not be receiving the same enquiry that everyone else in you area has been sent.

Lead Generating Directories

Advantages

1. These types of directories are generally optimised very well

2. You do not need to invest too much money into optimising your own website

3. These types of services are generally available on a fixed monthly cost or on a pay per lead basis

4. Costs can be fixed in advance

5. As soon as you have agreed to go ahead, you can start receiving enquiries right away

Disadvantages

1. Most directories of this type send enquiries to a number of limousine companies which means that you will be competing with other limo operators in you area

2. Pay per lead can be expensive given the quality is not guaranteed and of course, it is difficult to budget given the costs are based upon the number of leads you receive

3. Fixed costs will aid you budgeting process, but can be quite high

Agents or Brokers

Advantages

1. You do not need to concern yourself with the internet at all, or if you have a website, you do not have to put aside too much money promoting it

2. Typically, the agents or brokers do most of the work. Responding to enquiries, quoting and securing the orders

3. You do not need to man telephones or respond to individual emails

Disadvantages

1. After taking account of the agents or brokers fees, the revenue earned for the hire will be low, as a result, there may be a question over the long term viability of your business, given most limousine operators have a net margin of between 25 and 30%.

2. More often than not, there is no direct relationship with the customer prior to the hire, in addition, you will not know what the customer has been promised

3. If you have accepted a ‘low margin’ hire, you will not be able to complete any hires with higher margins that may come in through other sources at the same time on the same date

4. The agent or broker may attempt to negotiate prices with you to maximise their own profits rather than to secure the hire

5. There are generally no clear lines as to who is ultimately responsible if something goes wrong, unless the agent or broker allows you to use your own terms and conditions

6. If this is your primary source of confirmed hires, then you are totally reliant on a third party for the success of your business

7. Unless the agent or broker knows you, your business and your limousines, they may sell you short!

Limousine Franchise

Advantages

1. Leeds are generated nationally and distributed to the owners of each franchised areas

2. Enquiries are sent exclusively to the franchisee rather than all of the other limousine operators in the area

3. You are provided with your own website and do not have to be concerned with search engine optimisation, which falls to the franchisor

4. You benefit from their brand, reputation and presence

5. Limousine Franchisees are typically provided with a ‘package’ of services, rather than just generated leads

6. If you are looking at setting up a new business, then you can ‘hit the ground running’ and gain from the franchisors experience

7. You will be working as part of a network, therefore you will have support from fellow franchisees in the event of a vehicle breakdown or where you need a larger number of limousines to secure a contract

8. Issues such as contracts, terms and conditions of hire, booking forms and so on will be provided

Disadvantages

1. If you are already trading then you will have to change your operating name

2. You will be limited to a predefined area

3. There will be a fixed monthly costs

4. You will have to enter into a contract with the franchisor

5. There will be a set of rules that you have to adhere to and there may be conditions on the type and age of the vehicles you operate

For most businesses, unless you decide to opt for the franchised route, it is likely that you will use a combination of the above. There are also other mediums you can use such as your local Yellow Pages and their online counterpart, Yell.com. The latter is quite expensive, but for local hires, could be a good source of enquiries. This article does not seek to pass judgement on any of the organisations offering the types of services referred to in this article, it is very much a case of ‘horses for courses’, the best advice that can be given is to complete your own research, because as with all organisations, there will be good ones and bad ones. Any organisation specifically named in this article has provided their permission.

Cars for Stars Limited is a UK based company operating chauffeur driven cars and limousines. With a Head Office based in London, providing a national service for limousine hire and chauffeur cars through an extended branch network of franchised offices. All Cars for Stars franchisees are required to be licensed by their respective local authority or district council.

So, you have decided to licence your limousine company for private hire, which has three principle steps which are outlined below. The first thing to take account of is the amount of time it will take, from start to finish, but you must also consider the order. You must first identify the appropriate Licensing Authority for your area, this would typically be the District Council. Most have websites and you can usually download the appropriate forms from their site, failing which, it is also worthwhile attemptint to get an appointment with the Licensing Officer. Bear in mind that for London, Licensing is handled by the Public Carriage Office on behalf of Transport for London, therfore, the process, but not the principles will vary.

Step One: Is to apply for a Private Hire Operators Licence

Step Two: Is to apply for Private Hire Vehicle Licence for each vehicle (Read this: for further information on stretched limousines).

Step Three: Is to apply for a Private Hire Drivers Licence for each chauffeur/driver (Read this for further information on the requirements for your chauffeurs’ or drivers)

It is not always possible to complete each of these tasks in parallel, therefore a meeting with the local Licensing Officer, may be advisable. Realistically, new applicants should allow up to 3 months from start to finish. Typical delays are in obtaining the CRB (Criminal Records Bureau) checks, these can take anything up to 3 months and the Private Hire Licence for the limousines. The latter normally relates to whether or not the limousine is on the local authorities ‘approved list’ and if they require the limousine to have an SVA and/or to have been built in accordance with amanufacturer approved coachbuilders programme (such as Ford’s QVM or Cadillac’s CMC).

For alternatives to registration as a Private Hire Vehicle Operator, refer to this article covering the alternative licence options for limousine operators.

Cars for Stars is a UK based company operating chauffeur driven cars and limousine. Based in London, it offers national service through an extensive, branch network of franchised offices. All Cars for Stars franchises are fully licensed by their respective local authority, or in the case of London, by the Public Carriage Office (PCO), which means that the chauffeurs will have been subjected to a medical and criminal records bureau check and the chauffeur cars and limousines will be subjected to regular and vigorous tests. Cars for Stars local offices can be found in the Chauffeur Cars Directory or the Limousine Hire Directory.

If it is already registered with the DVLA and has been issued with a registration number and, you do not intend to use it for ‘hire and reward’, then probably not. However, if you want to use your limousine for private hire, rather than just for weddings, then in all likelihood, your local licensing authority will insist that the vehicle has an SVA. In fact, it does not just stop there, but this will be covered later.   If you have yet to buy a stretched limousine, then the best advice that can be offered is to ensure that it already has an SVA, if on the other hand you already have limousine that does not have an SVA and, you want to register the vehicle for private hire, then you need to consider arranging for a voluntary SVA. 

In the past, it was possible to register a stretched limousine without the need for an SVA, simply by registering the vehicle as a 10 seat limousine. This is no longer possible. Now as a consequence of the amendments contained in the Road Safety Act 2006, from 1^st January 2008, all stretched limousines that are to be used for hire and reward, will have to either be registered with the local authority for Private Hire or be registered as a Public Service Vehicle, which also requires the owner to have obtained a Public Service Operators Licence. Limousine companies operating within London are governed by the Public Carriage Office, part of Transport for London. 

Section 53 of the Road Safety Act 2006 introduced an amendment to section 75(1) of the Local Government (Miscellaneous Provisions) Act 1976, covering hackney carriages and private hire vehicles in England and Wales (excluding London which is covered separately), whereby paragraph (b) was omitted. It was this paragraph that originally allowed limousine operators to operate without a Private Hire Vehicle licence or Public Service Operators licence. Because the London area is covered by the Private Hire Vehicles ( London) Act 1998, a further amendment was made to this particular Act to ensure that the Licensing requirements were uniform. This part of the Act will come into force from the 1st January 2008.

Whether or not a vehicle has an SVA has gained significance because most local authorities will not register a limousine unless or until it has an SVA. If you already own the vehicle, then fortunately, you can apply for a retrospective SVA, known as a ‘voluntary SVA’. However, it is possible that you may have to complete some additional conversion work before the limousine will be accepted for an SVA and the best advice here is to go to a specialist.

Another issue that will come into play if you wish to apply for a voluntary SVA is whether or not the vehicle was built by a coachbuilder, who was approved, at the time of manufacture, by the vehicle manufacturer. The most popular limousine is the Ford Lincoln and this should have been built by a coachbuilder that was as authorized QVM (Lincoln Qualified Vehicle Modifier) coachbuilder. Another limousine, very rare in the UK is the Cadillac; they have their own programme CMC (Cadillac Master Coachbuilder). Provided the limousine was built by an approved QVM or CMC coachbuilder, then as SVA should not be particularly difficult. However, it should be remembered, that as with any test, no two examiners are likely to have the same opinion of each and every issue. Compliance, therefore, will always be fraught with inconsistencies.

It should be noted, that whilst some of the latest Chrysler 300 stretched limousines have an SVA, many do not and because the manufacturer has not approved the vehicle to be stretched, it has no comparable programme to the QVM and CMC. This does not exclude it from obtaining an SVA, nor does the fact that a limousine was stretched by a non-approved QVM or CMC coachbuilder; however, it does make it much more difficult. This is because VOSA will insist that a great deal of technical information is provided, some of which may be available from the coachbuilder, but  the majority will not be available and if you have to provide the data yourself, there is a very real chance that the cost would exceed the value of the vehicle.

The safest bet, if you intend to apply for a Private Hire Vehicle Licence, is to ensure that you only buy a limousine with an SVA and if this option is not available, then at the very least, don’t but a vehicle that has not been built by a QVM or CMC coachbuilder. If you already own the vehicle, then you need to talk to a specialist or the NCLA (National Limousine & Chauffeur Association), who may be able to offer advice or assistance.

If you haven’t purchased a limousine at this time and it is your intention to Licence the Vehicle for Private Hire, then the best advice is to be guided by your local licensing authority. With over 400 separate authorities across the country, interpretation of the rules varies and some may be more lenient than others. If you disagree with their interpretation, you are entitled to appeal, but this process can be time consuming.

Most, but not all, local authorities will not approve under any circumstances a Hummer, Excursion or Navigator even if these have been issued with an SVA (unlikely) or have undergone and passed the Schedule 6 conversions. If you intend top operate of buy one of these vehicles, then it would probably be more appropriate to apply for a Public Service Operators Licence and register the vehicles as Public Service vehicles, however, it must be borne in mind, that to carry more than 8 passengers, the vehicle must have a COIF (Certificate of Initial Fitness). Whilst not impossible, there are very few vehicles that have achieved this status and those that have will have a price attached to them that directly reflects the considerable investment that is required to achieve this certification.

The information herein is provided in good faith, rules and regulations can and do change, as with all advice, you should complete your own research and satisfy yourself that you have all of the facts before making any decision. The author of this article accepts no responsibility for any errors or omissions contained in this article. For the most up to date information, readers are urged to make contact with the National Limousine & Chauffeur Association or contact any of the bodies referred to in this article.

Cars for Stars Limited is the largest limousine franchise network in the UK providing start-up assistance, support and advice for franchisees.

Setting up a limousine business in the UK does not have to be difficult. Cars for Stars are a well established, award winning company operating a franchised business model for budding entrepreneurs.  Independent limousine operators have an unenviable position trying to break into the market and many struggle with the red tape, the risk associated with buying a stretched limousine for the time, generating enquiries and so on.

The Cars for Stars franchise programme removes much, but not all, of the risk. All they have a number of excellent franchised areas available; they are fussy and will not accept anyone carrying an open wallet. They want people that can share their ethics, add value to the network and willing to work hard for the benefit of the network as well as their own business interests.The barrier to entry is low, because Cars for Stars do not charge large ‘franchise premiums’, because they recognise that new businesses need to be investing in their infrastructure and fleet, as well as receiving a return on their investment. All Cars for Stars franchisees can hit the ground running, because enquiries are pouring in through excellent internet marketing activities and a strong brand images. Cars for Stars franchisees enjoy the following.

1. An established trading style, with a highly regarded brand which is registered in all 25 countries of the European Union 

2. Exclusive operating area 

3. All internet and telephone enquiries for their designated franchise area

4. Extensive internet marketing programme including entry in many major web directories, as well as niche limousine directories and chauffeur car hire directories.

5. Free Cars for Stars website and email address

6. Access to a bespoke software programme allow franchisees to automate the handling of enquiries, acceptance of bookings, deliver of chauffeur itineraries, as well as handling some of the ‘red tape’ issues related to local authority licensing and vehicle management

7. Assistance and advice in relation to obtaining an appropriate license to run a limousine hire business

8. Generic templates for stationery and advertisements

9. A fixed monthly “Licence Fee” in place of the traditional turnover based fee calculations

10. Support of an established and experienced team

Cars for Stars is so well recognised that it is always receiving enquiries from perties interested in setting a branded Cars for Stars business in other countries, thse include, Ireland, Cyprus, Spain, France, Greece and Turkey. The best part of enquiring about a Cars for Stars limo hire franchise is that you do not get the ‘heavy sell’, in fact quite the opposite, the meetings are informal and open allowing each party to ask questions of the other in an open forum. Because Cars for Stars Limited does not rely on the limousine franchise income for its survival, interested parties can be sure the interest is about expanding the network, with quality individuals rather than a short-term financial gain through an initial franchise fee.

technorati tags: limo franchise limousine franchise limo limousine franchise chauffeur franchise limo business business opportunities
del.icio.us tags: limo franchise limousine franchise limo limousine franchise chauffeur franchise limo business business opportunities