Business Overview

A limousine rental business is a very versatile business. Between corporate events, high school dances, and cultural black tie affairs, the need for such a business extends year-round.

Who is this business right for?

This business is good for a “people person,” for it involves dealing with a wide variety of clients and a wide variety of drivers for the limousines themselves. Those who already have skills and experience with repairing automobiles will also be able to save a lot of money over time when it comes to limousine upkeep and repair.

What happens during a typical day at a limo business?

In no particular order, some of the day-to-day activities include taking reservations for future events, following up with clients on upcoming events, and coordinating with your drivers so everyone has access to relevant information. You may also network with similar or related businesses to plan for large upcoming events, work on marketing your businesses (especially around peak seasons), and either schedule necessary maintenance and repairs of limousines or conduct such activities yourself.

What is the target market?

The preferred clients for most limousine businesses would be corporate customers. Corporate customers know exactly what they want and exactly what it should cost, making your job much easier. Though the preferred clients includes corporate customers, your business make see peaks in rentals during specific times of the high school year, as many students like to rent limos for special events such as homecoming dances and prom. Though these younger, inexperienced customers may not be ideal, it is important that you keep your doors open to them as they can provide a jump in profits during these special occasions.

How does a limo business make money?

Limousine rental services make money by charging fees to chauffeur clients for a fixed amount of time. Typically, such businesses charge clients by the hour. If your business has access to multiple kinds of limousines, you may consider charging different hourly amounts for the use of different kinds of vehicles.

What is the growth potential for a limo business?

The growth potential for a limousine rental business has been steady in past years, but has been somewhat threatened by the rising prominence of app-based services such as Uber and Lyft. By embracing ideas such clients want (such as advertising via social media, allowing people to contact you via an app, etc.), you can mitigate the negative impact of competing services in your area.