taxi business plan philippines

How to Start Taxi Business in Philippines: Step by Step Guide

Taxis are one of the most popular modes of transportation in the Philippines. In fact, there are more than 500,000 registered taxis in the country. If you’re looking to start your own taxi business in the Philippines, then you’ve come to the right place. In this article, I will give you a step-by-step guide on how to start a taxi business in the Philippines.

Easy Steps for start taxi business in Philippines:

1). requirements for starting a taxi business in the philippines.

The first step is to consult with the Land Transportation Franchising and get their requirements. A “For-Hire” or “Public Utility” taxi will have different criteria than the other.

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2). Get the necessary permits and licenses

After you have consulted with the LTFRB, you are going to be required to get the essential permits. and licenses from them. These include a Certificate of Public Convenience (CPC) for “For-Hire” taxis and a Certificate of Registration (COR) for “Public Utility” taxis.

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3). Choose the right vehicle

The next thing you need to do for your taxi business is select an appropriate car. You will need to consider the type of vehicle, as well as the size and capacity. The most popular type of taxi in the Philippines is the “sedan” type, which can seat up to 4 passengers.

4). Get your vehicle insured

The moment you’ve settled on the ideal automobile, you will need to get it insured. This is a requirement of the LTFRB, and it will protect you in case of accidents or damages.

How much does it cost to start a taxi business in the Philippines?

The cost of starting a taxi business in the Philippines will depend on a few factors, such as the type of vehicle you choose, the number of vehicles you plan to operate, and the permits and licenses you need to obtain. However, you can expect to spend at least 500,000 PHP (approximately 10,000 USD) to get started.

How to find drivers and employees for your taxi business?

The best way to find drivers and employees for your taxi business is to post ads in newspapers or online. You can also try contacting driving schools in your area, as they may have qualified drivers who are looking for work.

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It’s important that you take the time to screen and interview potential drivers, as they will be representing your business. Verify their driving histories and that they possess a current, legal driver’s license before allowing them to drive.

What kind of marketing and advertising should you do for your taxi business?

You may use a variety of marketing and advertising methods to promote your taxi service. Most populars:

Social media marketing.
Traditional advertising (newspaper, radio, TV).
Direct marketing (flyers, brochures).
Referral marketing (customer referral programs).

The best way to find out what marketing and advertising strategies will work best for your taxi business is to experiment with different techniques and see what produces the best results.

How to manage your taxi business finances?

The best way to manage your taxi business finances is to keep track of all your income and expenses. This will help you see where your money is going and identify any areas where you can save money.

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It’s also a good idea to set up a separate bank account for your business, so you can easily track all your business transactions.

Finally, you should create a budget for your business, so you can plan your finances and make sure you are not overspending.

Conclusion:

I hope this guide has been helpful in giving you an overview of how to start a taxi business in the Philippines. Starting a taxi business can be a great way to earn a good income, and it’s a service that is always in demand.

How to Start a Taxi Business in the Philippines: A Step-by-Step Guide

Starting a taxi business in the Philippines can be a very beneficial business. Still, on the other hand, it requires meticulous planning, an understanding of regulations, and a lot of strategies. This blog will clear your all concepts about starting a taxi business in this particular region. Don’t worry it’s not a very difficult task.

Table of Contents

Here are the following concepts for everyone, Who wants to start a taxi business. Now start reading this blog:

Understanding the Market and Opportunities

Market Research: Conduct thorough market research to comprehend the demand for taxi services in various regions of the Philippines. Understand the demographic, economic, and geographic factors that influence the need for transportation services.

Develop a Business Plan: This is the most important step in starting a taxi business. Create a detailed plan outlining your business goals, and target audience, Like which region you want to target and the type of services you will offer (standard taxis, luxury rides, ridesharing) how you’ll price your services, your marketing strategy, and financial projections.

Legal Requirements: Register your business and obtain the necessary licenses and permits to operate a taxi service. This includes business licenses, vehicle permits, and insurance. These licenses are very important for running a successful business. On the other hand, if you do not have these licenses it can cause some issues for you. You have to make sure that your drivers have original licenses.

Acquire Vehicles: This is the selection step, in which you have to choose your vehicle according to your budget and audience needs. Firstly you have to decide how many vehicles you want to run, and their types. You can start with a small fleet and expand based on demand. Consider purchasing or leasing vehicles that comply with safety standards and require regular maintenance.

Hire Drivers: I think this is a very intellectual decision-making step. In this step, you have to examine your employee and their skill set in customer service and his profession. Firstly check their licenses, and gather background information, Like he/ she has a clean background. And in the final call him/her for the interview, because this is the final expression in which you will examine the person. Ask him/her about customer service, because you are hiring for your customer.

Implement Technology: As everyone knows this is the era of technology, so every business has to use the latest technology his business in the taxi business, developing a mobile app for booking the taxi, location updating, and any information about your business, like how much you charge for one location to another, and how much you charge for per km. This is very important for every business owner to take care of his information.

Market Your Business: The last and least important step in this business is marketing and advertising. Without brand awareness is not possible to achieve his/her goals. Every business owner has to provide enough information and brand awareness to everyone. For marketing, there are a lot of applications on Google for advertising like Facebook, Twitter, Instagram, and many others.

Focus on Customer Service:

Customers are very important to every business, You have to make your customers happy, For this purpose, you can hire many professionals. Who can provide better customer service without any issues? Ask your customers about your service gather feedback, and evaluate them.

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Last Expression:

Every Business requires time, money, and some professionals. Same as another business taxi business requires special attention time place and money. For this purpose, Start with market research and conduct information about various places. Outlining your plans and goals, legal requirements.

Hello, I’m Zubair Ahmad, a blogger passionate about sharing insights and stories. Join me on this journey of exploration and discovery in the world of ideas. Welcome to my corner of the internet!

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Back to All Business Ideas

How to Start a Taxi Business

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on March 3, 2022 Updated on May 8, 2024

Investment range

$3,250 - $7,400

Revenue potential

$47,000 - $275,000 p.a.

Time to build

0 – 3 months

Profit potential

$38,000 - $55,000 p.a.

Industry trend

Think taxis are a thing of the past? Think again! Rideshare services like Uber and Lyft have grabbed a large share of the market, but they have not made taxis obsolete. The US taxi industry is still worth $66 billion, so there’s money to be made. You can start your own taxi business as a solopreneur, and eventually grow into a full-fledged company with a fleet of cars and drivers. All you need is one car and a taxi license to get started.

First, though, you’ll need to understand the ins and outs of starting and running a business. Luckily, this step-by-step guide will provide all the information and insights necessary to get you on the road to taxi cab entrepreneurship.

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Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a taxi business has pros and cons to consider before deciding if it’s right for you.

Low Startup Costs – One car and you’re off to the races
Flexibility – Pick your own hours, run the business from home
Large Market – Demand for taxis is still high, particularly in large cities
Tough Market – Compete with apps like Uber and Lyft
Long Hours – To make money, you need to be a workhorse

Taxi industry trends

Industry size and growth.

Industry size and past growth – The US taxi and limousine market is worth $66.6 billion in 2022 and has grown nearly 3% annually for the last five years.(( https://www.ibisworld.com/industry-statistics/market-size/taxi-limousine-services-united-states/ ))
Growth forecast – The global taxi industry is expected to grow an impressive 66% by 2026.(( https://www.mordorintelligence.com/industry-reports/taxi-market ))
Number of businesses – In 2022, 2,568,140 taxi and limousine businesses were operating in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/taxi-limousine-services-united-states/ ))
Number of people employed – In 2022, the US taxi and limousine industry employed 2,379,410 people.(( https://www.ibisworld.com/industry-statistics/employment/taxi-limousine-services-united-states/ ))

Trends and challenges

Trends in the taxi industry include:

Customers are seeking apps to book taxis, so taxi services need to embrace this trend to be successful.
Eco-friendly hybrid or all-electric taxis are also in demand. This presents a huge opportunity for an eco-friendly taxi business to differentiate itself.

Challenges in the taxi industry include:

A continuous challenge in the taxi business is finding and keeping good drivers who provide excellent customer service.
Rising fuel prices are cutting into the profit margins of taxi businesses.

Demand hotspots

Most popular states – The most popular states for taxi drivers are Rhode Island, Connecticut, and New Hampshire.(( https://www.zippia.com/cab-driver-jobs/best-states/#rhode-island ))
Least popular states – The least popular states for taxi drivers are Colorado, Utah, and Montana.

What kind of people work in taxi businesses?

Gender – 23.5% of taxi drivers are female, while 73.3% are male.(( https://www.zippia.com/taxi-cab-driver-jobs/demographics/ ))
Average level of education – The average taxi driver is high school educated.
Average age – The average taxi driver in the US is 48 years old.

How much does it cost to start a taxi business?

Startup costs for a taxi business range from $3,200 to $7,400. Costs include a down payment on a vehicle and signage for the vehicle. You’ll also need to get a car for hire license from your city. In some cities, this can be a significant cost. For example, in New York City a taxi medallion costs about $80,000, while in Columbus, Ohio it only costs a few hundred dollars.

How much can you earn from a taxi business?

Taxi fare rates vary by city but usually include a flat base charge, a charge per mile, and an hourly wait time rate. These calculations will assume that your average fare will be about $15. Your profit margin after fuel and insurance costs should be about 80%.

In your first year or two, you could work as a solopreneur and do 10 trips per day 6 days per week, bringing in $47,000 in annual revenue. This would mean nearly $38,000 in profit, assuming that 80% margin. As your brand gains recognition, you could have five taxis and hire drivers, and sales could climb to 50 trips per day 7 days per week. At this stage, you’d rent a commercial space and hire staff, reducing your profit margin to 20%. With annual revenue of almost $275,000, you’d make a tidy profit of more than $55,000.

What barriers to entry are there?

There are a few barriers to entry for a taxi business. Your biggest challenges will be:

A clean driving record is required, and you may have to pass an exam
Competition from other taxis plus apps like Uber and Lyft

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Step 2: hone your idea.

Now that you know what’s involved in starting a taxi business, it’s a good idea to hone your concept in preparation to enter a competitive market.

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research taxi businesses in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a limousine taxi service, or an electric taxi service.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as bike taxis in urban areas.

This could jumpstart your word-of-mouth marketing and attract clients right away.

What? Determine your services

You’ll need to determine what kind of taxi service you want to have. You could have a limousine taxi service, a black car taxi, a minibus taxi service, an eco-friendly taxi cab, a bike taxi, or even a water taxi. You also need to decide if you want to have a taxi booking app.

Who? Identify your target market

When determining the target market for your taxi business, it’s important to recognize that your audience will vary depending on the type of services you offer. For instance, tourists needing transportation from airports or hotels represent a different segment compared to those requiring event transportation or specialized services like taxis for the disabled.

It’s advisable to have a broad target market to cater to a wide range of needs. This approach allows you to maximize your customer base and adapt to various demands in the transportation industry.

Acquire vehicles for your taxi business

Starting a taxi business requires a reliable and efficient fleet of vehicles. Here’s how to make the best choices for your fleet:

1. Assess Your Needs:

Capacity: Determine the size of the vehicle needed based on the typical number of passengers. Consider sedans for up to 4 passengers or minivans for larger groups.
Fuel Efficiency: Choose vehicles with good mileage to minimize fuel costs, an important factor in your business’s profitability.
Comfort: Opt for models that offer a comfortable ride, as this can significantly impact customer satisfaction.

2. New vs. Used Vehicles:

New Vehicles: Offer the latest features and are less likely to require repairs, but are more expensive.
Used Vehicles: More cost-effective but may have higher maintenance costs. Opt for certified pre-owned cars for better reliability.

3. Leasing vs. Purchasing:

Leasing: Provides the option to upgrade vehicles regularly and avoids the depreciation cost, but may come with mileage limitations.
Purchasing: Results in owning the asset outright, offering more control but requires a larger upfront investment.

4. Maintenance Plans:

Consider maintenance costs in your budget. Regular maintenance is crucial for safety and prolonging the life of your vehicles.
Establish relationships with trusted mechanics or consider service contracts with dealerships.

5. Regulatory Compliance:

Ensure that the vehicles meet all local regulatory requirements, such as emissions standards and safety features.

6. Technology Integration:

Install necessary technology such as GPS systems, fare meters, and card payment terminals.

How much should you charge for taxi fares?

Your fare rates will be dictated by the rates in your city. When you’re working by yourself, your costs will be limited to fuel and insurance. You should aim for a profit margin of 80%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Where? Choose a location for your vehicles

Selecting the right locations for both storing your taxi fleet and identifying hot spots for operation is crucial for the efficiency and profitability of your taxi business. Here’s how to approach these two aspects:

1. Storing Vehicles When Not Active

Centralized Garage or Parking Facility:

Proximity: Choose a location central to your service area to minimize the time and fuel costs for vehicles to reach their first customers.
Cost-Effectiveness: Look for affordable parking options to keep overhead low.
Security: Ensure the area is secure to prevent theft and vandalism.
Accessibility: Easy access for drivers, especially during shift changes.
Maintenance Facilities: Nearby maintenance services are beneficial for quick repairs.

2. Identifying Hot Spots for Active Service

High-Demand Areas:

Airports and Train Stations: Constant flow of travelers needing transportation.
Business Districts: High demand during rush hours for commuting professionals.
Tourist Attractions: Tourists frequently require taxis to explore the city.
Entertainment and Nightlife Areas: Demand peaks during evenings and weekends.
Hospitals and Medical Centers: Regular need for transport by patients and visitors.
Shopping Centers and Malls: Popular destinations, especially during weekends and holidays.
Residential Areas: Targeting suburbs can capture daily commuters and those without personal vehicles.
Event Venues: Concerts, sports events, and conventions draw large crowds needing transportation.

Step 3: Brainstorm a Taxi Company Name

Here are some ideas for brainstorming your business name:

Short, unique, and catchy names tend to stand out
Names that are easy to say and spell tend to do better
Name should be relevant to your product or service offerings
Ask around — family, friends, colleagues, social media — for suggestions
Including keywords, such as “taxi” or “taxi service”, boosts SEO
Name should allow for expansion, for ex: “RapidRide Cabs” over “Airport Cabs”
A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.

Find a Domain

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Taxi Business Plan

Here are the key components of a business plan:

Executive Summary: Provide a brief overview of your taxi business, highlighting its focus on reliable and efficient transportation services within a specific geographic area.
Business Overview: Describe your taxi service, including the provision of on-demand transportation for individuals and groups in urban and suburban areas.
Product and Services: Detail the transportation services offered, such as standard taxi rides, airport transfers, and potentially app-based ride-hailing options.
Market Analysis: Evaluate the demand for taxi services in your area, taking into account factors like population density, public transportation availability, and peak travel times.
Competitive Analysis: Compare your service to other local transportation options, focusing on your competitive advantages like quicker response times, customer service, or technological integration.
Sales and Marketing: Outline your strategy for attracting customers, such as through local advertising, partnerships with businesses, or online platforms.
Management Team: Highlight the experience and skills of your management team, especially in areas like transportation, logistics, and customer service.
Operations Plan: Describe the operational process of your taxi service, including vehicle management, driver scheduling, and ride dispatching.
Financial Plan: Provide an overview of the financial aspects, including start-up costs, pricing strategy, and revenue projections.
Appendix: Include additional documents like vehicle maintenance records, driver training manuals, or market research data that support your business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to taxi businesses.

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your taxi business will shape your taxes, personal liability, and business registration requirements, so choose wisely.

Here are the main options:

Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

Bank loans : This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
SBA-guaranteed loans : The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
Government grants : A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
Friends and Family : Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
Crowdfunding : Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
Personal : Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a taxi business. You might also try crowdfunding if you have an innovative concept.

Step 8: Apply for Taxi Business Licenses and Permits

Starting a taxi business requires obtaining a number of licenses and permits from local, state, and federal governments. You’ll need to get a car for hire license or taxi medallion from your city.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your taxi business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

General liability : The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
Business Property : Provides coverage for your equipment and supplies.
Equipment Breakdown Insurance : Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
Worker’s compensation : Provides compensation to employees injured on the job.
Property : Covers your physical space, whether it is a cart, storefront, or office.
Commercial auto : Protection for your company-owned vehicle.
Professional liability : Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
Business owner’s policy (BOP) : This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business.

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.

You may want to use industry-specific software, such as Cab Treasure , EverTransit , or TaxiMobility , to manage your bookings, dispatching, fares, and payments.

Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero .
If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Developing a website and a mobile app is essential for a modern taxi business, serving as digital gateways for customers to access your services. A user-friendly website should provide clear information about your services, pricing, and contact details, along with an easy-to-use booking system. Complementing the website, a mobile app offers convenience for on-the-go customers, allowing them to book rides, track their taxi in real-time, and make secure payments. Both platforms should reflect your brand’s identity, be intuitive to navigate, and include features like fare calculators, customer reviews, and support options.

Launching a successful taxi business requires a robust marketing strategy that ensures visibility and customer engagement. Here are effective tactics to consider:

Optimize for Local SEO: Ensure your website ranks high in local search results by incorporating relevant keywords, location-based content, and maintaining an up-to-date Google My Business profile.
Get Listed in Local Directories: Register your business on local directories and review sites like Yelp, TripAdvisor, and Yellow Pages to increase your online presence and credibility.
Leverage Social Media Marketing: Regularly post engaging content on platforms like Facebook, Instagram, and Twitter to connect with your community and offer promotions.
Engage in Community Events: Participate in local events and sponsor community activities to build brand awareness and goodwill.
Develop Partnerships: Collaborate with local businesses, hotels, and event organizers for mutual referral programs.
Offer Promotions and Loyalty Programs: Introduce discounts for first-time users and loyalty rewards for frequent customers to encourage repeat business.
Utilize Email Marketing: Send out newsletters and promotional offers to keep your audience informed and engaged.
Invest in Vehicle Branding: Wrap your taxis with your business logo and contact information to serve as mobile billboards.
Encourage Customer Reviews: Prompt customers to leave reviews online to build trust and attract new clients.
Advertise in Local Media: Use local newspapers, radio stations, and community bulletin boards for targeted advertising.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your taxi business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your taxi business could be:

Eco-friendly taxi service – all-electric cars
Bike taxis so you can see the sights of the city
24-hour limousines to travel in style anytime

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a taxi business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in taxis for years and can offer invaluable insight and industry connections.

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in taxis. You’ll probably generate new customers or find companies with which you could establish a partnership.

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a taxi business include:

Taxi drivers – take fares, customer service
Dispatcher – take bookings, dispatch drivers
General Manager – staff management, accounting
Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.

Step 13: Run a Taxi Business – Start Making Money!

A taxi business is probably one of the easiest kinds of businesses to start. You just need a vehicle, some signage, and a taxi license. You can make good money, even just working by yourself with one car, but you can also grow your company until you have a fleet of taxis.

Taxis are an industry worth over $60 billion, so why not grab a share of that fare? You understand the business side of things now, so go ahead and get on the road to entrepreneurial success!

Taxi Business FAQs

Yes! Believe it or not, the taxi industry is still worth over $60 billion in spite of competition from ride-sharing apps. If you market yourself well and provide great customer service, you can definitely make money with a taxi business.

Fares are typically set by the city or municipality where you’re located. Rates include a flat base rate, a rate per mile, and an hourly rate for wait time. Check with your city for your local rates.

For a taxi business, you can use various types of vehicles depending on your target market and local regulations. Common options include sedans, minivans, SUVs, or even specialized vehicles for specific purposes like wheelchair-accessible taxis.

First and foremost, reliability is crucial. Ensuring that taxis are available promptly and operate on time is essential. Excellent customer service, including courteous and knowledgeable drivers, clean and well-maintained vehicles, transparent and fair pricing, and easy booking and payment options, also play a significant role.

To ensure the safety and comfort of passengers in your taxis, prioritize regular maintenance and inspections of your vehicles to ensure they are in good working condition. Implement safety features such as functioning seatbelts, GPS tracking systems, and security cameras. Train your drivers in defensive driving techniques, customer service, and safety protocols. Keep the interior of the taxis clean and comfortable, with adequate legroom and temperature control options.

Utilize online platforms and mobile apps to make booking convenient and accessible for passengers. Offer competitive pricing, promotions, or loyalty programs to incentivize repeat business. Partner with local businesses, hotels, or airports to establish referral networks.

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How To Start Taxi Business In Philippines

Do you want to start your own taxi business in the Philippines? Here are some tips to help you get started:

1. Get a good license. A taxi license is required in the Philippines, and there are many different requirements depending on the city you are operating in. Make sure you are aware of all the requirements before you start your taxi business.

2. Get a good taxi. It is important to get a good taxi. Make sure you research which taxis are the best in your city. The taxis you choose will play a big role in your success as a taxi business owner.

3. Get a good location. The best location for a taxi business is one that is close to the customer

Table of Contents

BUSINESS TIPS: What About Taxi Business? | Q&A

Do your research.

The first and most important thing you need to do to start a taxi business in the Philippines is to do your research. You will need to know the laws and regulations governing the taxi industry in the Philippines, as well as the taxi market in your city or province. You will also need to know the prices that the average taxi driver in your area charges, as well as the types of taxis that are available in your city or province. Finally, you will need to know which taxi companies are the most reputable and safe to work for.

Choose a location

Once you have done your research, the next step is to choose a location for your taxi business. You will need to assess the feasibility of operating your business in a particular location, as well as the costs associated with operating a taxi business in that location. You will also need to assess the competition that you will face in that location, as well as the potential for growth in that area.

Get a taxi license

Once you have chosen a location for your business, the next step is to get a taxi license. You will need to submit an application to the local government, and you will need to pay a licensing fee. You will also need to obtain a taxi permit, which will allow you to operate your taxi business.

Register your business

Once you have obtained your taxi license and taxi permit, the next step is to register your business with the local government. You will need to provide the

Decide on a business model

There are a few different models for starting a taxi business in the Philippines. You can either operate as a solo operator, partner with another taxi driver, or join a taxi association.

Solo taxi operation is the most common model in the Philippines. You can start this business by purchasing a quality taxi vehicle and setting up your own taxi business.

Partnering with another taxi driver is another popular taxi business model in the Philippines. You can partner with a friend or family member who has a taxi driver license and is willing to share his or her taxi business with you.

Joining a taxi association is another option for starting a taxi business in the Philippines. This is the most common model for taxi businesses in metropolitan areas. You can join an existing taxi association or create your own taxi association.

Select the right taxi for your business

Selecting the right taxi for your business can be challenging. You need to decide what type of taxi you want to operate.

There are six types of taxis in the Philippines: van taxis, jeep taxis, open-air taxis, multicab taxis, luxury taxis, and plying taxis.

Van taxis are the most common type of taxi in the Philippines. They are usually small and have two or four seats.

Jeep taxis are similar to van taxis but have a higher seating capacity.

Open-air taxis are taxis that operate on the street.

Multicab taxis are

Choose a catchy name and logo

One of the first things you need to do when starting a taxi business in the Philippines is to choose a catchy name and logo. A good name for your taxi company could be something like “Taxi Philippines” or “Taxis for You!” or “The Best Cabs in the Philippines.” You can also choose a logo that portrays your company’s values and strengths. For example, you could choose a logo that has a yellow taxi and a green taxi inside a green and white shield, or a logo that has a yellow taxi inside a red and white shield.

First, you will need to register your business with the government. This can be done through your local municipal office. Next, you will need to obtain a taxi operating license. This can be done through the government or through a taxi license bureau. Finally, you will need to obtain a taxi vehicle license. This can be done through the government or through a taxi vehicle bureau.

Get the necessary permits and licenses

First and foremost, it is important to note that starting a taxi business in the Philippines will require permits and licenses from the local government. The most important permit you will need is a Certificate of Public Health (COPH), which will prove that you are physically and mentally able to operate a taxi business. Additionally, you will need a Gasoline License, a Vehicle Transfer Certificate, and a Taxation Certificate. You will also need to apply for a business license from the local government, and you will need to pay a registration fee.

Once you have obtained all of the necessary permits and licenses, it is now time to set up your taxi business. First, you will need to find a taxi garage or lot where you will be able to park your taxis. Next, you will need to purchase a taxi meter and a taxi telephone. You will also need to purchase a taxi sign, and you will need to obtain a taxi driver’s license. Finally, you will need to create a business name and logo, and you will need to advertise your taxi business.

Purchase your vehicles

The first step to starting a taxi business in the Philippines is to purchase a taxi fleet. There are several options available, from used cars to new and used jeeps and vans. Once you have your vehicles, it is important to get registered with the local government. This will give you a license to operate your business, and it is also necessary to obtain a taxi permit.

If you are thinking of starting a taxi business in the Philippines, here are some tips to help get you started:

1. Research the local taxi market before starting your business. There are a lot of different taxi companies in the Philippines and it can be hard to decide which one to choose. Do your research and find out which company has the best reputation.

2. Get a taxi license. If you want to operate a taxi business legally in the Philippines, you will need to get a license from the government. There are a lot of requirements, so make sure you are prepared before starting your business.

3. Find a taxi company to partner with. Once you have your license, the best way to start

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How to Start and Run a Successful Taxi Business

Understanding the market, creating a solid taxi business plan, securing financing for your taxi business, how to run a successful taxi business, leveraging technology in your taxi business, get started.

Are you intrigued by the prospect of starting your own taxi business? The transportation industry, especially the taxi sector, offers ample opportunities for aspiring entrepreneurs. With the advent of technology and evolving consumer preferences, there are innovative ways to establish and manage a successful taxi business. However, the journey from inception to profitability requires careful planning, efficient execution, and adaptability to changing market dynamics.

Before delving into the logistics of starting a taxi business, it’s crucial to conduct comprehensive market research. Assess the demand for taxi services in your target area. Identify the competitors, their strengths, weaknesses, and the gaps you can fill. Analyzing consumer preferences and understanding the demographics of potential customers will lay a strong foundation for your business strategy.

A well-crafted taxi business plan acts as a roadmap, guiding you through various stages of establishment and growth. Define your business objectives, target market, marketing strategies, operational structure, and financial projections. Incorporate innovative ideas to differentiate your services and attract customers. Your plan should be adaptable yet robust enough to navigate unforeseen challenges.

Financing is a critical aspect of starting any business, including a taxi service. Depending on the scale of operations, you might need funds for vehicle acquisition, insurance, licensing, marketing, and technology integration. Consider exploring various financing options like business loans, investors, or crowdfunding platforms. A well-defined financial plan will not only aid in starting the business but also in sustaining and expanding it.

Efficiently managing a taxi business involves more than just owning a fleet of vehicles. Exceptional customer service, leveraging technology for bookings and dispatch, regular vehicle maintenance, and managing drivers effectively are essential components. Implementing feedback mechanisms and adapting to market trends are also crucial for sustained success.

In today’s digital age, technology plays a pivotal role in the success of any business. Integrate user-friendly mobile applications for seamless bookings, GPS navigation systems for efficient routing, and data analytics for informed decision-making. Embracing technology not only enhances customer experience but also streamlines operations and improves overall efficiency.

Starting and managing a successful taxi business requires meticulous planning, a customer-centric approach, adaptability, and a willingness to embrace innovation. By understanding the market, crafting a robust business plan, securing adequate financing, and effectively managing operations through technology integration, you can position your taxi business for long-term success.

Remember, the key to sustaining a profitable taxi business lies in continuous evaluation, adaptation, and a commitment to delivering exceptional service to your customers.

In summary, understanding how to start a taxi business, creating a sound taxi business plan, managing finances effectively, and knowing how to run a successful taxi business are crucial elements for any entrepreneur venturing into this industry. By incorporating these strategies, you can steer your taxi business towards profitability and long-term growth.

If you’re considering entering the transportation industry, the insights shared here will serve as a valuable guide on your entrepreneurial journey.

Are you ready to embark on the exciting yet challenging road of starting and managing your taxi business?

Starting a Taxi Business: Key Takeaways

Market Research: Understand the demand, competition, and customer preferences.
Business Plan: Create a comprehensive plan outlining objectives and strategies.
Financing: Secure adequate funds for operations and growth.
Efficient Management: Implement efficient operations and exceptional customer service.
Technology Integration: Leverage technology for streamlined operations and improved service delivery.

By implementing these key elements, aspiring entrepreneurs can establish and manage a thriving taxi business successfully.

Taxi Butler

A complete suite of taxi booking tools that powers taxi bookings from venues.

Business Ideas
Registered Agents

How to Start a Taxi Business in 14 Steps (In-Depth Guide)

Updated: March 13, 2024

BusinessGuru.co is reader-supported. When you buy through links on my site, we may earn an affiliate commission. Learn more

The global taxi market is growing considerably. In 2021, the market reached $215.35 billion and is projected to reach 464.26 billion by 2030. This means the market could continue to expand at a compound annual growth rate (CAGR) of 9.29% from 2021 to 2030.

As urban populations grow and citizens seek affordable, convenient transportation, starting a taxi service can be a profitable business venture. Taxi companies rely on name recognition and quality service to earn repeat customers. With low startup costs compared to other transportation businesses, the taxi industry remains accessible for aspiring business owners.

This guide will explain how to start a taxi business. Topics include market research, competitive analysis, registering an EIN, obtaining business insurance, and creating an official business entity. Here’s everything you need to know about starting a taxi business.

1. Conduct Taxi Market Research

Market research is an important part of starting your own taxi business. Research provides insight into the best taxi booking app, how to price your taxi cab business and other details for your business model.

Some of the market research you’ll learn about your private taxi company includes:

The taxi industry consists primarily of three segments: yellow cabs, private sedans, and app-based ride-hailing.
App-based services like Uber make up the remaining 28%.
New York City alone sees over 500,000 daily taxi rides.
The taxi customer base includes both business and leisure travelers looking for quick and easy rides around town.
Business travelers are especially lucrative, spending an average of $550 per month on taxis.
Airports also provide steady taxi revenue, with 70% of airport traffic traditionally using cabs for ground transportation.
While app-based services now dominate airport pickups, taxis are regaining market share by implementing their own apps and electronic booking.
The taxi industry is a fragmented market with 97% of companies operating ten vehicles or less.
Ongoing expenses average $150 per day for insurance, gas, maintenance, and licensing.
To be successful, new taxi companies must focus on customer service and speed.
Reliability, safety, and cleanliness are top priorities for riders.
Creative promotions like loyalty programs and referral bonuses also help attract repeat business in competitive markets.

In summary, the growing demand for flexible urban transportation and low barriers to entry create an appealing opportunity for entrepreneurial taxi startups. Niche markets by geography and customer segment provide options to secure market share against app-based and legacy competitors.

2. Analyze the Competition

Understanding the competitive landscape is crucial when launching a new taxi company. Conduct an in-depth analysis of established operators and app-based services in your target market.

Some ways to investigate competitors as a taxi cab service include:

For traditional taxi competitors, identify the major brands and fleet sizes.
Visit cab stands and airports to observe how many taxis each company has operating.
Research their customer reviews and ratings online to evaluate service quality.
Gauge price points by getting sample fare quotes. Analyze their marketing messages and brand personalities as well.
App competitors like Uber and Lyft, sign up as a driver to understand their technology and economics.
Check customer feedback on app stores to assess satisfaction.
Search media coverage about market share and growth projections.
Monitor driver forums to learn about reputation and risk areas.
Online review sites like Yelp provide visibility into customer sentiment across competitors.
Search engines reveal the SEO strength of each brand based on web page rankings.
Social media listening can uncover real-time conversations and perceptions.
Size up potential advantages your startup may have over incumbents. Look for gaps in service quality, technology, or customer experience to exploit.
Seek niche segments or territories competitors are overlooking.
Analyzing competitors gives insights that will shape your business and marketing plan.
Use SWOT analysis to identify market threats to defend against and opportunities to pursue.
Competitor intelligence informs pricing, service offerings, vehicle types, and geo-targeting.
Ongoing monitoring lets you keep ahead of industry changes after launch.

Vigilant competitive research ensures your taxi startup is strategically positioned. Target underserved customer needs, emphasize your differentiators and mitigate competitor threats. Entering the ring prepared gives your business the fighting chance it needs to win.

3. Costs to Start a Taxi Business

Starting a taxi company involves both initial investments and ongoing expenses. Carefully projecting costs is crucial for securing financing and operating successfully.

Start-Up Costs

For an individual cab, plan on $25,000-$35,000 for a new minivan or crossover SUV.
With a small fleet of 5 cabs, costs can range from $125,000-$175,000.
Next is licensing and insurance, which varies by state and city regulations. Liability insurance runs $9,000-$15,000 per vehicle annually.
Administrative fees also add up with new taxi companies. Business licenses and permits average $500-$1,000 depending on location.
Accounting software like QuickBooks is around $200 for setup. A commercial phone system for dispatching can be $1,000.
Outfitting cabs with meters, signage, radio equipment, and GPS costs approximately $3,000 per vehicle.
A basic website for customer bookings would be around $1,500.
Other startup costs may include an office lease at $1,000-$1,500 monthly.

Total start-up costs for a single taxi generally run $20,000-$25,000. For a small 5-cab fleet, expect around $60,000 in startup costs. Expenses scale higher with larger fleets exceeding 50 vehicles.

Ongoing Costs

Once up and running, taxi companies face a variety of recurring monthly and annual expenses.

Fuel averages $300-$400 per cab monthly. Maintenance and repairs run approximately $200 per vehicle each month.
Cab replacement occurs every 3-5 years, incurring another $25k-$35k investment per new vehicle.
Insurance remains a major necessity, costing $750-$1,250 per cab monthly.
License renewals typically happen annually at around $300 per taxi.
Personnel is another primary expense. Dispatchers average $15/hour, costing $2,000-$3,000 monthly. Drivers may be employees or independent contractors.
Those choosing hourly wages cost around $3,000 per driver based on $15/hour.
Office rentals, utilities, phone, and Wi-Fi amount to roughly $2,500 per month.
Accounting and legal services are about $500 monthly.
Marketing budgets range from $300-$500 monthly for digital ads and promotions.
Miscellaneous expenses like payroll fees, supplies, fees, and taxes add up to around $1,000 each month.
For a single taxi, average monthly costs are approximately $5,000 including insurance, licensing, personnel, fuel, repairs, office expenses, advertising, and more.
Annual costs can reach $60,000-$70,000.
With a 5 cab fleet, monthly expenses scale to around $25,000 covering the above costs times 5 vehicles.
Overall annual costs for a 5-taxi operation average $300,000-$350,000.

Carefully estimating both start-up and ongoing costs ensures taxi businesses remain lean and profitable. Update projections as fleet size, staffing, and scope evolve. Financial diligence is fundamental to running a successful transportation company.

4. Form a Legal Business Entity

When starting a taxi company, one of the first legal decisions is choosing a business structure. The four main options each have advantages and drawbacks to consider.

Sole Proprietorship

A sole proprietorship is the simplest as it’s essentially you as an individual operating the business. However, it offers no liability protection as you’re personally responsible for all debts and lawsuits. This high risk makes sole proprietorships inadvisable for taxi businesses exposed to accidents and injuries.

Partnership

Partnerships allow two or more owners to share control and liability. A general partnership still exposes all partners fully while a limited partnership protects silent partners. Overall, partnerships can get complicated with profit/loss allocations and disagreements between partners.

Corporation

A corporation provides limited liability for shareholders but requires formal management and reporting. The tax structure is less advantageous for small businesses as income is taxed at both the corporate and shareholder level. Overall, the formality and regulatory requirements make corporations unrealistic for most taxi startups.

Limited Liability Company (LLC)

An LLC (Limited Liability Company) combines pass-through taxation with liability protection for members. Profits and losses pass directly to each owner’s returns. An LLC shields personal assets from business liabilities and debts. Ownership can be easily transferred with fewer formalities than a corporation.

5. Register Your Business For Taxes

One of the first legal steps when starting a taxi company is obtaining an Employer Identification Number or EIN from the IRS. This unique number identifies your business for tax purposes similar to how your Social Security number identifies you as an individual.

An EIN is required to open a business bank account, apply for licenses, hire employees, and file taxes for your company. Sole proprietors can use their SSN but should still get an EIN to keep personal and business finances separate.

The good news is applying for an EIN is a quick and free process that you can complete online via the IRS website in just minutes.

Simply provide your personal identifying information, business name, address, and taxation details. Choose the type of legal business entity you formed. Specify if you plan to hire employees or operate multiple businesses under the EIN.

Once submitted, your EIN will be provided immediately. This number should be included on all applications, tax documents, and other financial records for your taxi business.

In addition to your federal EIN, you’ll also need to register with your state taxation department for sales tax collection. The application process is similar to the EIN and can also be completed online in most states.

Sales tax registration enables you to legally collect and remit sales tax on taxi services provided in your state. It may also require filing regular sales tax returns. Check your state taxation department website for specifics.

Obtaining an EIN and sales tax registration are simple processes that add legitimacy and compliance to your taxi business. With your official tax numbers established, you can confidently move forward with vendors, licensing, hiring, and daily operations.

Failing to register your business properly may lead to fines, vehicle repos , or full closure, so make sure everything is in order.

6. Setup Your Accounting

Proper accounting is crucial for taxi companies to track finances, comply with taxes, and prove legitimacy if audited. Investing in accounting software, working with an accountant, and separating business and personal finances will set up your company for success.

Accounting Software

Begin by getting small business accounting software like QuickBooks to manage all financial transactions. Quickbooks integrates with bank accounts to automatically import income, expenses, invoices, and payments. It generates reports for profit/loss statements, balance sheets, payroll, and taxes. Quickbooks makes accounting a breeze with automation while giving you control over the numbers.

Hire an Accountant

Consider hiring an accountant to handle bookkeeping, payroll, quarterly taxes, and year-end filings. They can provide consulting on maximizing deductions and setting up ideal accounting workflows specific to taxi businesses. Expect to invest around $200-$500 monthly for full bookkeeping services.

At a minimum, engage an accountant annually to prepare your business tax returns. Rates average $500-$1,500 to file your Schedule C, payroll returns, and other tax documents. Their expertise saves money in the long run by ensuring full compliance and avoiding tax penalties.

Open a Business Bank Account

Be sure to separate all business finances into dedicated accounts. Obtain an Employer ID Number (EIN) from the IRS to open a business bank account. Fund it exclusively with taxi company income and pay for all expenses from there.

Apply for a Business Credit Card

Also, apply for a small business credit card using your EIN. Business cards don’t rely on personal credit scores and have higher limits to handle larger purchases. Make all taxi-related purchases on this card exclusively.

7. Obtain Licenses and Permits

Before operating any taxis, your new company must get approved for all relevant licenses and permits. Obtain federal license information through the U.S. Small Business Administration . The SBA also offers a local search tool for state requirements.

One of the first steps is obtaining a vehicle-for-hire license from your state regulator or local taxi commission. This business license proves you are registered and approved to transport passengers for a fare. Requirements and fees vary but expect to submit your business plan, insurance, vehicle info, background checks, and more.

Vehicle permits or medallions specifically authorize each cab to operate. Major cities like NYC and Chicago have a limited number available for purchase or lease. Expect to pay tens if not hundreds of thousands per medallion. Less restrictive cities still require annual permits per taxi typically costing a few hundred dollars each.

Your local municipal office can provide a general business license to operate within city limits. Fees range from $25 to the hundreds. Some cities may require additional permits related to ground transportation providers.

Commercial auto insurance is mandatory, with minimum liability limits of $100k property damage and $300k bodily injury per incident. Higher 100/300 limits or supplemental policies should be considered given taxi accident risks. Expect $150+ monthly per vehicle.

The FAA requires aircraft radio licenses for two-way dispatch equipment in taxis. The application involves proving you have appropriate frequencies allocated. The license costs around $150 and must be renewed every 10 years.

Taxi drivers themselves will need commercial driver’s licenses (CDL) in most states. Options include a full CDL, taxi limited license, or standard license with a for-hire endorsement. Renewals happen every 4-8 years.

Any independent contractors you use must carry adequate rideshare insurance on their vehicles with state minimum liability coverage. Avoid legal exposure by confirming their active coverage.

8. Get Business Insurance

Operating a taxi business without proper insurance opens you to massive risks that could bankrupt your company. Accidents, lawsuits, property damage, and employee claims could all destroy an uninsured business.

For example, a major car crash by one of your drivers that injures passengers could result in hundreds of thousands in medical bills and legal claims without protection. Or an electrical fire that destroys your garage and vehicles would cost tens of thousands to recover from uninsured. Even a minor slip-and-fall by a passenger in your office could lead to legal action.

The good news is obtaining business insurance coverage can shield your company from these threats. Start with a commercial auto policy that covers liability, collision, uninsured motorists, and passenger medical. General liability insurance protects against third-party claims of injury, property damage, and more.

You may also want commercial property coverage for your office, dispatch equipment, and other assets and business interruption insurance to replace lost income if forced to close. Workers’ comp is required if you have employees. An umbrella policy provides additional liability coverage above your base limits.

Expect to budget $150-$400 per vehicle monthly for a full commercial taxi insurance plan. However, this small ongoing expense can save you from utter financial devastation if the worst happens down the road.

9. Create an Office Space

Having a dedicated office provides legitimacy and gives taxi businesses a central base for dispatching, meetings, and administrative work. The right office setup supports daily operations and customer service.

Home Office

A basic home office is the most affordable option starting around $200 for a desk and supplies. It works for sole owners doing sales and promotion from home. However, home offices lack space for dispatchers and have less professionalism for meetings.

Coworking Office

Coworking spaces like WeWork provide amenities like WiFi, conference rooms, and front desk staff for $300-$500 monthly. The flexible terms and networking can benefit small taxi startups. However, coworking lacks parking for taxis and has noise that could disrupt dispatch calls.

Retail Office

Retail office spaces in shopping plazas start around $1,000 monthly. The street visibility and walk-in traffic aid marketing efforts. Retail offices also give easy access to taxis and customers. The downsides are costs, business hour restrictions, and longer leases.

Commercial Office

Classic commercial office spaces offer the most room with dedicated buildings and ample parking. Expect $1,500-$2,500 monthly for spaces accommodating dispatch stations, taxis, meetings, and parking. However, commercial spaces require long leases and offer few amenities.

10. Source Your Equipment

From cars to meters, new taxi companies need to acquire essential equipment to get up and running. Smart sourcing saves money while meeting operational needs.

For the latest models with full warranties, purchase vehicles, and gear directly from manufacturers and authorized dealers. Expect to pay MSRP or slightly below for sedans like the Toyota Camry, minivans, and light SUVs ideal for taxi use. Meters, signage, radio equipment, and other accessories are also available now.

Buying Used

Save over 50% by buying quality used vehicles with 50k-75k miles from dealers, auctions, or private sellers. Facebook Marketplace , and Craigslist list reliable used taxi models like retired Crown Victorias, Camrys, and Odyssey vans discounted to $5k-$15k. Scour taxi auctions and dealers for used meters, radios, and other gear.

Renting vehicles lets you test models before purchasing a whole fleet. Rental costs range from $300-$500 weekly for common taxi vehicles. Short-term rentals of dispatch equipment, meters, and two-way radios are also available from specialty providers for a few hundred a month.

Multi-year leases allow you to operate new vehicle models for a fixed monthly fee averaging $300-$600 over 2-4 years. Maintenance and roadside assistance are often included. Leasing provides reliability without large upfront purchases. Refurbished meters and hardware can also be leased affordably.

11. Establish Your Brand Assets

Creating a strong brand identity is crucial for taxi companies to stand out from the competition and build recognition. Investing in branding builds customer trust and boosts marketing efforts.

Get a Business Phone Number

Acquire an official business phone number through a service like RingCentral to enable professional communications. Choose a local area code and a dedicated line to convey legitimacy versus using a personal cell. Expect to budget $25-$50 monthly for a hosted business phone with call routing and voicemail services.

Design a Logo

Design a sleek logo and brand identity that instantly identifies your taxis and marketing materials. Consider iconic symbols and color palettes that connect to your location. A bold, minimalist logo works for taxi brands versus overly complicated images. Use a service like Looka to develop concepts digitally for $20-$50 per design.

Print Business Cards

Business cards featuring your logo, phone number, and dispatch info make introductions and referrals seamless. Hand these out at local events and hospitality businesses to aid marketing. Vistaprint offers affordable printing of 500 basic cards for $20.

Buy a Domain Name

Secure a domain name that matches your taxi brand for a professional online presence. Short .com addresses from Namecheap convey expertise. Expect to budget $10-$15 annually for domain registration.

Design a Website

Build a one-page website detailing your services, booking options, and phone number. Use a drag-and-drop site builder like Wix for easy DIY creation or hire a freelancer on Fiverr for $200 to design the site. This digital home solidifies your legitimacy.

12. Join Associations and Groups

Joining local business groups and online communities provides invaluable connections when starting a taxi company. Take advantage of these networking opportunities for insider advice and customer referrals.

Local Associations

Research associations like the Taxicab, and Limousine & Paratransit Association offer national conferences, regulatory advocacy, and fleet insurance programs. On the local level, chambers of commerce and transportation associations facilitate networking events and lobbying efforts.

Local Meetups

Keep up with trends and expand your network by attending regional taxi and ground transportation meetups. Use sites like Meetup to find regular gatherings of fellow business owners, drivers, and vendors.

Facebook Groups

Dozens of Facebook groups connect taxi owners globally. Search for established communities like Global Taxi Driver Group and join relevant local groups like NYC Taxi Cab Enthusiasts & Owners to tap collective insights.

13. How to Market a Taxi Business

Implementing ongoing marketing is essential for gaining new taxi customers and growing your company. Leverage digital campaigns, real-world promotion, and customer referrals to build your brand.

Personal Networking

Start by tapping your inner circle for referrals to friends, family, and colleagues. Offer free or discounted rides to first-time customers sent your way. Satisfied passengers will organically spread the word about your service if treated well.

Digital Marketing

Digital campaigns provide affordable access to local customers. Consider:

Google Ads geo-targeting local keywords like “taxi near me” and your city name. Expect to budget $100-$300 monthly. Track phone call conversions.
Facebook and Instagram ads focused on area residents. Target based on location, demographics, and interests. Budget $50-$100 monthly per platform.
Search engine optimization to rank highly for “taxi/cab + your city” searches. Research tactics or hire an SEO consultant.
Email collection via your website to send promotions and build loyalty. Offer discounts for email signups. Send regular updates and coupons to subscribers.
Getting customer reviews on Google, Facebook, and Yelp highlighting your service quality and professionalism.

Traditional Marketing

Traditional approaches also aid visibility:

Vehicle signage and wraps are seen throughout your region while in service. Gets name recognition.
Business cards and flyers at hotels, restaurants, and airports to catch potential riders. Focus on concierges.
Airport carousel ads drive business from travelers. Costs range from $100-$300 per month based on impressions.
Radio spots on local stations for brand awareness. Expect to budget $500+ monthly depending on frequency.
Chamber of Commerce networking for corporate accounts. Cater to business travelers.
Direct mail postcards to households announcing new services or promotions like discounted first rides.

Mix digital, print, networking, and other tactics to attract customers. Track response rates and refine strategies over time. Marketing done properly delivers continual growth.

14. Focus on the Customer

Providing excellent customer service is crucial for taxi companies to earn repeat business and referrals. Given the competition, focusing on rider satisfaction and great experiences builds loyalty.

Some ways to increase customer focus as a profitable taxi business include:

For example, ensure vehicles are clean and comfortable. Greet passengers warmly and politely confirm their destination.
Avoid phone calls or conversations with other drivers during the ride. Ask if the temperature or radio station needs adjusting.
Thank riders as they exit and offer to assist with bags or other cargo.
Follow up via email with first-time customers to see if their rides met expectations.
Send the occasional coupon to frequent patrons to show appreciation.
Train staff and drivers on ideal service standards.
Empower them to address complaints and remedy issues.
Monitoring online reviews lets you identify and improve upon friction points.
Satisfied customers become vocal champions for your brand. They will specifically request your company over competitors for future rides.

With commoditized offerings like rides, customer service stands out. Small gestures like bottles of water, mints, and charging cables surprise and delight. When riders feel genuinely cared for, you earn their loyalty for the long haul.

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Taxi Business Plan

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Executive Summary executive summary is a brief introduction to your business plan. It describes your business, the problem that it solves, your target market, and financial highlights.">

City Taxi is a San Francisco, CA based company, whose mission is to provide reliable, timely, and safe cab services by using complete, in-car credit and debit card access, along with computer-aided dispatch. The company will establish its presence in the industry by acquiring an existing taxi cab association, Mighty Cab, a family-owned business that was formed 12 years ago.

City Taxi will provide complete taxi cab services using the latest equipment and technology to facilitate the travel of individuals in and around the San Francisco area. The company’s products and services show that we are an innovative, forward thinking company that recognizes the need to move with ever-changing customer needs. At City Taxi, our philosophy is one that emphasizes service, and a realization that effective communication is a key component in our business. The company also realizes that, in a competitive environment, flexibility and professionalism maintain that leading edge.

The company has drivers and employees that are helpful, courteous, and fully trained on the use of the computer dispatch system. As an added safety measure for both drivers and passengers, City Taxi cabs are fitted with Global Positioning Systems (GPS), which enable the cabs to be tracked or located in an emergency. All City Taxi cabs will be clean, well maintained, and inspected regularly for safety and comfort.

The company’s strategy is to build reputation and market share by establishing our business offering as a viable alternative to existing taxi cab services in the area. The company’s goal in the next year is pursue an aggressive marketing campaign and from that, penetrate at least 65% of the market share. The company’s long-term goal is be the top rated ground transportation company in San Francisco.

The company’s emphasis is on the dispatch, mobile data, and credit/debit card markets of the taxi industry. In aggregate, these markets are believed to represent potential sales in excess of $119 million as of March 1999. Within these markets, City Taxi will focus on the more lucrative credit card/debit card segment. This segment, when introduced into any area, has started out slow but over a three-year period has increased by 20% each year in Maryland and Virginia, and by 25-35% in New York each year.

Companies with whom City Taxi competes are Transportation, Inc., Capital Cab, Yellow Cab, and Diamond Cab. Their weaknesses are that they do not have the credit/debit card payment option, and some still use the radio dispatch system. The company has a competitive advantage, however, because our technology is unique to the taxi industry in San Francisco. The GPS will enable the company to provide timely service by giving an accurate estimated time of arrival (ETA). The credit/debit card feature will give customers convenience and privacy during the transaction period.

Reliable communications are essential under all circumstances in this business. As such, City Taxi will use the KDT 5000 system. The KDT 5000 system design provides multiple levels of reliability to assure communications will be maintained under the most rigorous condition. The company will also run a state of the art call center that will be established by Rockwell International.

The company is seeking $2.5 million of financing to fund the acquisition of Mighty Cab Association and its initial operations. This funding will cover the purchase of Mighty Cab, marketing, purchase of extra vehicles, software, and hardware. Projected revenues for 1999 to 2001 are $200,000, $1.5 million, and $2.2 million, respectively.

Taxi business plan, executive summary chart image

1.1 Objectives

The company’s goal in the next year is to pursue an aggressive marketing campaign and from that, penetrate at least 65% of the market share. The company’s goal in the next two to five years is be the top rated ground transportation company in the San Francisco Metro Area by continuously monitoring, evaluating, and following up on customer call-ins.

Key components of City Taxi’s initial strategy can be summarized as follows.

Establish Relationship with Rockwell International. The company is currently working to establish and develop a working relationship with Rockwell International. This will enable City Taxi to lock into the many services that they offer including, but not limited to:

Continuous improvement

1.2 Mission

The mission of City Taxi is to provide reliable, timely, and safe cab services by using complete in-car credit/debit card access, along with computer aided dispatch.

1.3 Highlights

Highlights of City Taxi

Exclusive rights to software . City Taxi has the exclusive rights to the latest taxi cab software in San Francisco.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Legal Business Description:

City Taxi was founded in 1997 in San Francisco, California, by Mr. Johnson Taylor. The company is a California C-Corporation under the name Patriot, Inc. d.b.a. City Taxi.

2.1 Company Strategy

The City Taxi’s strategy is to saturate the market with television ads depicting the company as a premier taxi service. The company will leverage the newest in car technology to dominate the credit card segment of the market. City Taxi will dominate the market because no other company has this unique feature.

The company’s strategy is to build reputation and market share in our target market by establishing our business offering as a viable alternative to existing taxi cab services. City Taxi intends to get the confidence of customers and establish itself as a company that provides superior customer service by using up to date technology to provide timely and reliable services.

2.2 Company History

As can be seen in the chart and table below, the company performed well its first year, but sales have not been fully actualized. That is the intent of this plan: to increase sales by utilizing our competitive advantages and by the acquisition of a rival taxi company.

Taxi business plan, company summary chart image

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Adequate facility . City Taxi realizes that it is difficult to locate a facility with the space required for all operations. City Taxi has found a facility with ample space for all operations. There is enough room to set up repair facilities, and there is adjacent space to store vehicles.

2.4 Value Proposition

City Taxi’s products and services offer the following advantages to customers:

State-of-the-art Call Center . City Taxi’s call center allows us to provide a timely service by picking up the closest vehicle when a call comes in. When a call comes in, it is put into the system, the system sends a message to dispatcher, the system then tags the closest vehicle in the zone, neighboring zone, on the way to the zone, or the dispatcher can call.

City Taxi provides taxi services utilizing computer dispatch to help with timely pick up and quality customer care. The software and hardware systems used by City Taxi give customers convenience by allowing them to use credit and debit cards in the taxi.

3.1 Service Description

Taxi Cab Services

The taxi driver is often the first contact that a visitor has with San Francisco and as such, City Taxi realizes the importance of first impressions and customer care. The company’s customer-oriented philosophy and its commitment to service are reflected in the careful selection of drivers and the comprehensive training program. Customers can expect the following high standards when they travel with City Taxi:

Most practical route taken

Maintenance/Repair Services

This division of City Taxi deals with the pure maintenance of vehicles. Drivers will be charged at discounted rates for tune-ups, wheel alignments, and other repairs.

3.2 Technology

GLOBAL POSITIONING SYSTEMS . City Taxi has a unique Global Positioning System (GPS) that pinpoints the nearing driver thus allowing the driver to give an accurate estimated time of arrival.

RADIO SYSTEM . Reliable communications are essential under all circumstances. City Taxi will use the KDT 5000 system design because it provides multiple levels of reliability to assure communications will be maintained under the most rigorous condition.

CREDIT/DEBIT CARD SYSTEM . City Taxi will use the in-car credit/debit card system, which is a new market segment for the taxi industry in San Francisco. This involves customers using their debit cards in any City Taxi cab with approval being given instantly, eliminating the need to dial in to head office for approval numbers. By using this system, the company will be addressing the need for convenience and reliability. City Taxi also features a computer-aided dispatch system which will be represented under the Patriot name. The company is currently in the process of making Patriot a trademark. The company has also applied for a license to run a 490 narrow band frequency and voice data transmission. From the perspective of customers, the advantage of City Taxi’s products and services is the high level of technology, which leads to superior customer service. In contrast to competitors, City Taxi’s products and services offer convenience. The key pad and swipe machine are built into the back seat, thus giving the customer privacy. Whereas competitors have to call in a credit/debit card transaction for approval, our customers will be able to get on-the-spot approval before the driver even pulls over.

3.3 Future Services

City Taxi plans to respond to market needs by following up with taxi plus (wheelchair accessible taxi vans with credit card access inside) with the next 5 years. City Taxi believes it can capture this niche and a gain in overall market share. Additional plans for next generation products and services include rent to own options for our drivers. Introduction of the company’s next generation product and services is expected to be within 12 months.

Market Analysis Summary how to do a market analysis for your business plan.">

The company’s emphasis is on the dispatch, mobile data, and credit/debit card markets of the taxi industry. In aggregate, these markets are believed to represent potential sales in excess of $119 million as of March 1999. Within these markets, City Taxi will focus on the more lucrative credit/debit card segment. This segment, when introduced into any area has started out slow, but over a three-year period has increased by 20% each year in Maryland and Virginia, and by 25-35% in New York each year.

The company believes that the major future trend in the industry will be complete credit card access for consumers. The International Taxi Livery Association (ITLA) forecasts a very steady growth for the taxi industry in the next four years.

Market Size Statistics :

4.1 Market Segmentation

Customers and Target Markets

City Taxi’s focus will be on the credit card market with target customers in the low to mid income range in the Metropolitan San Francisco area. The target customers are motivated to use our services over that of competitors because of the convenience and quality associated with our services.

Customer Buying Criteria

We believe our customers choose our cab service based on the following criteria:

Convenience . This involves the credit/debit card feature.

Taxi business plan, market analysis summary chart image

4.2 Service Business Analysis

Market 1-Taxi Cabs

This category covers establishments engaged primarily in furnishing passenger transportation by automobiles not operated on regular schedules or between fixed terminals. Taxi cab fleet owners and organizations are included, regardless of whether drivers are hired, rent their cabs, or are otherwise compensated.

Industry Snapshot

Organization and Structure

Most taxi companies followed a similar organizational pattern. Managers, sometimes the company owners’ ran the business, hired drivers, and performed other administrative duties. Dispatchers took calls and assigned cabs to passenger locations. The position of dispatcher once represented a promotion awarded to experienced cab drivers, whose familiarity with the city best qualified them for the job. However, the increase in computer-based dispatching in the early 1990’s prompted cab companies to favor computer skills over specialized knowledge of local geography when filing the dispatcher position.

Regulation of the U.S. taxi industry varied from city to city. While almost all cities had some form of licensing requirements, larger urban areas had the strictest regulations. San Francisco regulations focused on fares charged to customers, with rates assigned to designated zones of the city.

Current Conditions

In 1998, 6,342 taxi fleets, consisting of 144,000 cars, were operating in the United States. On a national level, in the early 1990’s, taxi’s made approximately 2 billion passenger trips a year. Most taxi fleets were small, family-owned businesses or individual partnerships; only 5% were corporations. Almost all operated within a single municipality, and more than half of all taxi companies had fewer than 10 vehicles. In rural areas, companies tended to be extremely small, with 1 to 3 cars available for customers. In cities of 100,000 people, the average fleet size was 20 cars. In urban centers of 200,000 or more people, cab companies retained hundreds of cars and carried more passengers than the multitude of smaller companies combined.

Research and Technology

Although the taxi cab industry was not regarded as demanding in a high degree of technology, several innovations have changed the way businesses operate. Computerized dispatching–in which cabs were tracked by computer and dispatch instructions appeared only to the cab assigned to a call–allowed more efficient assignment of cabs to passengers. Computerization also helped remedy the problem of “fare stealing,” in which one driver intercepts a message meant for another and picks up the first driver’s fare.

Another development likely to change the industry’s focus involved its use of certain radio frequencies. In the late 1980’s and early 1990’s, with investment in cellular and digital communications skyrocketing, taxi cab companies found themselves in possession of a valuable asset in the form of the broadcast frequencies granted them by the Federal Communications Commission. During this time, the FCC, allowing them only two frequencies in any one area, heavily restricted the cellular telephone industry’s use of the airwaves. By the mid-1990’s, some cab-related services, such as New Jersey’s dispatcher Fleet Call, were in a strong position to become players in the burgeoning telecommunications industry.

Industry Leaders

Due to increasing decentralization in the industry, few national taxi corporations were in operation in the early 1990’s. A few companies, however, many of which were owned by larger holding corporations, had operations that reached beyond the local. Figure 1 shows the industry leaders in the San Francisco area and their share of the market.

Figure 1 Breakdown of Market Share in San Francisco .

Market 2- Taxi top Display

Taxi top display is a market from which City Taxi can gain a substantial amount of revenue. This has been shown to be a viable means of advertising for a number of companies and it is used widely. Figure 2 shows the growth in the taxi top display market segment from 1993.

4.2.1 Competition and Buying Patterns

Competitive threats come from existing taxi cab companies in the San Francisco area. Their weaknesses are, however, that they do not have the credit/debit card payment option, and some still use the radio dispatch system. Transportation, Inc. has computer-aided dispatch but no credit card processing capabilities. Capital Cab, Yellow Cab, and Diamond Cab all have radio dispatch with selected drivers accepting credit cards. However, these drivers do not offer in-car processing, approval must be given at the home office.

Taxi Cabs . City Taxi’s competitors include existing taxi cab companies that have been operating in the San Francisco area. Specifically, competitors include:

Town Cab is an organization run by Mr. Pete Whitehead. The company uses the radio dispatch system and has a fleet of 800 cabs.

City Taxi’s competitive advantage is our cutting edge technology which is unique to the taxi industry in San Francisco. The GPS will enable City Taxi to provide timely service by giving an accurate ETA. The credit/debit card feature will give our customers convenience and privacy during the transaction period.

Maintenance and Repair Services . City Taxi’s competitors include the above mentioned companies and general maintenance and repair shops in the area. Some of these operations do not have the capacity to handle a large amount of vehicles. While others may have the capacity, their operations are run in a primitive manner, and City Taxi intends to capitalize on that.

City Taxi’s competitive advantages include the availability of space, operations management, and skilled employees.

Strategy and Implementation Summary

Sales Strategy

At City Taxi, the sales process is the same for each of City Taxi’s two areas: taxi cab services and maintenance and repair services. The company intends to establish its presence online by developing a website from which sales will be generated. The District of Columbia Cab Commission regulates pricing for taxi cab services.

Taxi business plan, strategy and implementation summary chart image

5.1 Marketing Strategy

Marketing Strategy

City Taxi markets its products and services as solutions to transportation needs in the city of San Francisco. Other target markets include customers in the low to mid income range. Direct mailings and television advertising will be the company’s main marketing channels. These channels ensure that target customers are reached repeatedly and effectively. The company will monitor its market position through constant tracking by Value Pack and TCI Media, Inc.

TCI Media Services – The proposed advertising package, titled “The Championship,” will yield:

Ads on the TV guide channel

5.1.1 Marketing Programs

City Taxi plans to communicate through direct mail and television advertising to generate sales. TCI MEDIA Services and Val-Pak Direct Marketing will spearhead the marketing campaign. The key message associated with our products and services is cleaner, efficient, flexible, and convenient taxi cabs.

Additional Plans–The company also has additional promotional plans which are diverse and include a range of marketing communications described below:

Val-Pak Direct Marketing : the challenge of any direct marketer is to take a massive amount of amorphous data and create tailored messages to targeted market segments. Perhaps no company is more familiar with that challenge than Florida-based Val-Pak Direct Marketing, a leader in local, cooperative direct mail advertising. More than 53 million households in the United States receive Val-Pak coupons in their mailbox. In 1997, Val-Pak designed, printed and distributed more than 11 billion incentive coupons promoting various products and services. Val-Pak targets as few as 10,000 households or as many as 53 million with any given mailing.

5.2 Strategic Alliances

The company has strategic alliances with King Communications, Surfside Systems, and Commercial Electronic Services. These alliances are valuable to City Taxi because they allow the company to get updates on technology and added tech support, and they are valuable to the ally firms because City Taxi is a growing customer. All agreements come with a stipulation that if new technology becomes available, City Taxi will be notified and provided with the technology to expand on current technology, helping us maintain a competitive edge. Details of the strategic relationships that City Taxi has are given below.

Mighty Cab Body Shop . The owner of Mighty Cab also owns a body shop. City Taxi will seek to establish a relationship with it for body work and towing services.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Organization

The company’s management philosophy is based on responsibility and mutual respect. City Taxi has an environment and structure that encourages productivity and respect for customers and fellow employees.

The City Taxi team is organized into two groups:

Maintenance and Repair Services . This division will deal with the maintenance of vehicles. Drivers will be charged at discounted rates for tune-ups, wheel alignments, and other repairs. This division will be staffed with seven employees to begin with.

Officers and Key Employees

City Taxi’s management is highly experienced and qualified. Key members of City Taxi’s management teams, their backgrounds, and responsibilities are as follows.

Ms. Glenda Jones, Call Center Supervisor.

Financial Plan investor-ready personnel plan .">

7.1 Important Assumptions

The table below shows the key assumptions for City Taxi.

7.2 Break-even Analysis

City Taxi’s Break-even Analysis indicates that the firm has a strong balance of costs and sales. The company estimates a monthly break-even sales volume of approximately $43,000, which will be reached by Fiscal Year (FY) 2000.

Taxi business plan, financial plan chart image

7.3 Projected Profit and Loss

City Taxi is in the early stage of development, thus initial projections have only been made on accounts that are believed to most drive the income statement.

7.4 Projected Cash Flow

The table below outlines the company’s cash flows for FY 1999-2001. The required $2.5 million will be spent to acquire Mighty Cab’s operations ($1.25 million), as well as to purchase additional property ($250,000) and equipment ($200,000). An additional $500,000 will be spent on other short-term assets.

7.5 Projected Balance Sheet

The table below provides City Taxi’s actual and projected balance sheets for 1999-2001.

7.6 Business Ratios

The following table contains important business ratios from the taxi cab industry, as determined by the Standard Industry Classification (SIC) Index #4121, Taxi Cabs.

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Taxi Business Plan Sample

Mar.14, 2017

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Table of Content

Taxi business plan for starting your own business

Are you looking for how to start taxi service ? If yes, then this taxi service business plan is all you need. The taxi service business can be a great choice if you have a good budget for buying and maintaining vehicles. Starting a taxi services business doesn’t require you to be an expert in the transportation field. The business can be started with just a few cars and drivers. Moreover, it can easily be expanded whenever you want.

To start a business, it is important to follow a certain procedure. You need to draft a transport business plan for your taxi service business as the first step. For that, you can look at associated plans such as tipper truck company business plan . If you also want to launch a mobile app to let your customers book a taxi online, you should also analyze mobile apps business plan .

Executive Summary

2.1 about the business.

Grab A Cab will be a taxi service business owned by Benjamin Williams. The business will be based in San Francisco. The main aim of this taxi service business will be to provide trustworthy, well-timed, and safe cabs whenever and wherever someone needs them. Grab A Cab taxi service will provide cab services while integrating the operations with technology to facilitate individuals even more.

2.2 Management of Taxi business

After you have learned how to start a taxi service, it is important to figure out how to manage the taxi business operations successfully. There is no better way to plan out every aspect of your taxi service than developing a business plan for taxi service pdf . To know how what your business plan should include, you can read the strategic plan provided here. In this taxi business plan example, we will guide you about all the components of a strong business plan so that you can develop your call taxi business plan.

It is better to hire business planning services to get a professional business plan for your startup. However, if you have the business knowledge and you want to create the business plan on your own, you can do so after doing adequate research. In that case, it is recommended to also go through a logistics company business plan .

2.3 Customers of Taxi business

Through our market survey and feasibility studies, we identified those customers that are most likely to benefit from our services. The recurring customers of the taxi service business will be:

Schools
Event planners
Retirement and care homes
Hotel and airport transfers

2.4 Business Target

The main goal of our taxi service business is to become the most-liked transportation company in the San Francisco Metro Area within three years. We aim at doing so by continuously evaluating, monitoring, and following up on customer call-ins.

Company Summary

3.1 grab a cab owner.

Benjamin Williams will be the owner of Grab A Cab taxi service business. Williams completed his MBA two years ago. After that, he pursued a position as a manager in a noteworthy company. He was quite fascinated by the cab service in his state. After a few months, he left the post to fulfill his lifelong passion of starting his own taxi service business.

3.2 Why Grab A Cab is being started

Benjamin Williams noticed that the other cab services businesses around him used traditional and outdated methods to serve their customers. He decided to use the latest technological features to bring innovation to the business domain.

3.3 How Grab A Cab business will be started

Step1: Plan Everything

Good planning is crucial when you are going to start a business. To ensure that you plan well for your startup, you should explore how to open a taxi company in the United States.

A business plan for taxi service can best aid in planning and managing a business. To write your taxi driver business plan, you can take help from this sample taxi business plan. You can also go through other examples like truck driving business plan to get an idea of what to include when planning for a startup.

Step2: Develop a Brand

The next step in starting up a taxi companyis to highlight your business and its unique offerings. This can be achieved by creating a brand around your business idea. This will include everything from your principles to your competitive advantages.

Step3: Establish Your Office

The next important step is to establish your business. For this purpose, Benjamin Williams decided to buy a large parking space in the main San Francisco commercial area. He made sure that the place was spacious enough to park all his cabs. Moreover, he also got a workshop constructed inside that place to maintain and repair the cabs. In this way, he reduced the expense of sending damaged cabs to other workshops.

Step4: Establish a Web Presence

Since we are living in the Information Age, it is necessary to establish a web presence to get known. Therefore, Williams decided to develop a website for the business and establish social media presence for marketing to attract a wider audience.

Step5: Promote and Market

The last step is developing and executing an effective marketing plan to promote your services.

Services of taxi business

Before setting up a taxi business, you need to decide on your business’s services. You may have a taxi business plan tempelate, but it might not have everything you need for your sample plan.

You can follow this guide on how to open a taxi service to figure out what the market for the business looks like and what services are ideal to be included in your startup.

The cost factor is necessary to keep in mind while considering your services, so you can develop a taxi service business plan startup costs pdf to keep an estimate. Since Williams started with various services, this format can be used to develop even a uber taxi business plan or an airport taxi business plan.

Door-to-Door Taxi Service

We will provide door-to-door taxi service to our customers as it is more convenient to use. Our capable drivers will pick up customers from their homes and drop them off directly at their destinations. Our customers will be able to book a cab through our mobile app or website.

Wheelchair Accessible Cabs

Our specialized service will provide wheelchair user passengers with a ramp or a passenger lift to assist them with getting into the vehicle. This approach is used as it is far easier than transferring from a wheelchair to a car seat and dismantling the wheelchair for the journey.

Seniors on the Go

We’ll also provide our professional, skilled, and highly patient cab drivers to assist seniors with their chores. Our company will provide senior citizens taxicab coupon booklets to maximize senior citizens’ benefits. We will aim to provide maximum customer satisfaction.

Hourly Service

We will offer our clients affordable discounts that pay off in the long run with our hourly packages.

Marketing Analysis of Taxi business

Excellent work.

excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!

When starting a taxi service business, you should have an excellent understanding of your target market. You can gain this understanding by doing an extensive market analysis as a part of your taxi business plan sample.

Your business plan for a taxi business should also analyze the price of similar services in the market. This data should be used to forecast the prices you will set for starting your own taxi business.

If you don’t know how to open a taxi company, you can take help of this taxi cab business plan. A complete market analysis is necessary for running a taxi business.

If you want to learn how to setup your own taxi business, then this business plan taxi service will be of great use.

5.1 Market Trends

Taxi operations provide over 60 billion dollars a year to the general US economy. The industry employs 2,026,478 people. The growth rate of this industry has remained in step with the general growth of the country’s GDP. Management feels that by maintaining a local client base, the company can continue to generate revenues despite the current deleterious economic conditions in the United States.

5.2 Marketing Segmentation

The potential customers of Grab A Cab are divided into the following groups:

Business plan for investors

5.2.1 schools .

Our primary customers will be the school students. They are expected to avail of our regular services to go to school, travel to sports matches or class trips.

5.2.2 Event Planners

Our second target customer will be event planners. They need to organize events, and for this purpose, they have to travel to different places. They will utilize our cab service to get maximum comfort. Our cabs will pick them up from their pickup location and drop them at their destination.

5.2.3 Retirement and Care Homes

This will be our third target group of customers. Our taxi company will provide services to people in retirement and care homes since they may no longer be confident to drive. Our wheelchair-assessable cabs are specially designed for these customers.

5.2.4 Hotel and Airport Transfers

Lastly, our potential customers include families and individuals on holiday and business travels. These groups don’t typically mind paying a bit more for a solution that takes care of transportation in an all-in-one way. Therefore, we expect to earn a handsome amount from them.

5.3 Business Target

To become the number one taxi service throughout San Francisco and adjoining areas.
The main target of our taxi service business is to pursue an aggressive marketing campaign and penetrate at least 75% of the market share.
To earn a net profit margin of $50.5k per month by the end of the third year.

5.4 Product Pricing

Our business plan for transportation service ensures that our prices will be economical compared to our competitors. The prices are set at a minimum to get introduced to a wider audience from the very beginning.

Marketing Strategy of Taxi business

To open taxi business, you must develop the best business plan for a taxi business. In addition, before starting up a taxi company, you also need to develop a strong marketing strategy to attract more customers.

In this taxi cab company business plan, we’re providing the sales strategy of Grab A Cab. You can learn a lot from here if you aspire to make a city taxi business plan.

6.1 Competitive Analysis

We have quick customer care services. We respond to customer queries efficiently and respect their feedback to improve our services.
We have excellent customer support staff that guides our customers in choosing the best traveling package according to their budget.
Through our 24/7 online presence, customers can inquire about our services.
We will also implement ideas from roadside assistance business plan to prevent any inconvenience to our customers.

6.2 Sales Strategy

We’ll advertise our services through social media platforms like Facebook and Instagram.
We’ll give a free ride to our first 50 customers
We’ll offer a 25% discount to school and college students.

6.3 Sales Monthly

6.4 sales yearly, 6.5 sales forecast, personnel plan of taxi business.

There are a lot of taxi services in the world. But only those are popular that make customers happy and satisfied. This taxi service business plan sample has all the details regarding the startup of the taxi service business.

Understanding the importance of good staff, William included some essential features as a part of employee hiring criteria in the taxi cab advertising business plans. He also formed a list of employees necessary for running his business. This list can be seen in this taxi business plan pdf.

7.1 Company Staff

1 Operations Manager
1 Customer Support Officer
1 Marketing Officer
10 Drivers
2 Mechanics
1 Web Developer to manage online sites

7.2 Average Salary of Employees

Financial plan of taxi business.

It is essential to manage your operations timely to earn profits. A detailed financial analysis is necessary to ensure that your business is not getting into a loss. To ensure that you make a detailed financial plan, you should include all the components that we have mentioned in this taxi business sample plan pdf.

The taxi service business plan startup costs are also important for your financial plan. Moreover, in your financial plan, you must identify when and how you’ll cover your investment amount with the earned profits. This approach would also help to analyze your yearly expenses to determine the possibilities of reducing them.

Here we’re providing the detailed financial plan made for Grab A Cab so that you can get an idea of the business finances.

8.1 Important Assumptions

8.2 Break-even Analysis

8.3 Projected Profit and Loss

8.3.1 profit monthly, 8.3.2 profit yearly, 8.3.3 gross margin monthly, 8.3.4 gross margin yearly, 8.4 projected cash flow, 8.5 projected balance sheet, 8.6 business ratios.

How do I start a taxi business?

To start a taxi business, you need to develop a good sample business plan for taxi service. The above business plan taxi company will detail how to do that.

How does the taxi business work?

The taxi business works by purchasing some taxis, procuring a large parking area, and hiring staff to run and manage services. In this taxi top advertising business plan we have explained all these three aspects in detail. If you want to set up this business, you can take help from this taxi service business plan.

How would you describe a taxi service?

The taxi service provides transportation facilities to people without facing public transport problems. Business plan taxi provides details for setting up taxi business.

Download Taxi Business Plan Sample in pdf

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Business Plan for Taxi Company

Business plan for taxi service

how will you stay ahead of your competitors;
how will you meet the needs of potential customers;
how you will attract employees.

5 Important steps for developing a taxi business plan

Define the business concept.
Do a competitor analysis.
Calculate the market capacity in your city.
Calculate the costs of starting a business.
Calculate the payback period of investments.

Step 1. Define the business concept

Step 2. do a competitor analysis.

how much the services cost;
how fast the vehicle is served;
what vehicle are in the fleet: make, appearance, year of manufacture;
how professional and polite the drivers are;
whether the drivers like their working conditions;
how customers are attracted;
what channels are used to advertise services.

Step 3. Calculate the market capacity in your city

Step 4. calculate the cost of starting a business, step 5. calculate the expected profit and payback period, taxi business plan sample.

We have been working in the taxi market for more than 20 years and have become real experts in our field.
We help companies around the world to start a taxi business.
We support customers at every stage of the launch.
We regularly analyze the work of different companies and help them optimize processes.
We implement technical solutions that allow our customers to automate their work and. successfully compete with major aggregators.

Taxi business plan sample pdf

Description of the taxi company's business model;
Calculation of the market capacity;
Calculation of the initial costs;
List of the initial expenses;
Calculation of the return on investment and payback period;
Information on how to attract customers;
Information on how to attract drivers;
Information about the automation of business processes in a start-up company.

Taxi business plan xls

Get a working taxi business plan template from taxi master.

How To Start a Business in the Philippines: The Complete 15-Step Guide

Here’s the cold harsh truth about employment:

It’s a rat race and even if you win it, you still end up a rat.

A rat with no control over his schedule, income, and projects to work on.

I’m not saying everyone should leave their jobs en masse. Some people consider their jobs as a vocation and can’t imagine doing anything else.

But for others who are yearning for more freedom and feel stuck at their current jobs, there’s a great alternative–entrepreneurship.

The best part is you don’t have to start big. Even with a small capital, you can open a business in the Philippines and make it profitable through smart planning. This article will teach you exactly how.

How To Start a Small Business in the Philippines With Small Capital: A Step-by-Step Guide

Great things start from small beginnings.

When they started their businesses around WWII, Max’s Restaurant and National Bookstore were deprived of advantages. But with sheer persistence and great strategies, they eventually became household names.

The same is true for almost all the famous brands we recognize today.

Therefore, whether you want to supplement your current income or become your own boss someday, the only way to go big is to start with a small business.

Small business or small-scale enterprise is one that hires few employees and has a relatively smaller asset size.

In order for a small business to qualify for government assistance and incentives, it should have capital assets amounting from Php 3 million to Php 15 million and with employees numbering from 10 to 99 workers 1 . Anything below these levels is classified as microenterprise while businesses that exceed them are known as medium- to large-scale enterprises.

However, the consensus today is that micro, small, and medium enterprises all fall under the general term “small business”.

By starting a small business in the Philippines, you as the owner will pretty much wear several hats–from marketing and finance to production and management.

Hence, it’s crucial to arm yourself with knowledge about all these fields especially at the beginning when you still don’t have the means to hire specialists.

This article will teach you how to start a business in the Philippines with a small capital, no business experience, and little or no college education.

Let’s get the ball rolling.

Step 1: Know your “Why.”

how to start a business in the philippines 1

Holocaust survivor Victor Frankl wrote in his book that “those who have a ‘why’ to live can bear with almost any ‘how'” .

Starting a business may not be as tragic as a Holocaust but it is certainly not a walk in the park either.

On one side, owning a business gives you unlimited opportunities to earn money , be your own boss, explore your creativity, help others, and build a legacy.

But there’s another side to the entrepreneurial coin: the risk of failure.

In addition to that, starting a business in the Philippines where unpredictability abounds will push you to go beyond your comfort zone. Success won’t come easily. Long hours of work, missed family times, and sleepless nights will hound you especially during the early stages.

And did I mention you’ll be juggling a lot of hats so you’ll be responsible not just for the welfare of your family but also for the livelihood of your own employees?

So, before taking the plunge, test the water first.

If you only want extra income , don’t resign from your job and look for a part-time job instead. But if you want complete control of your destiny, then it’s time to plan your exit. It doesn’t matter if you take baby steps; what’s important is you carefully weigh the risks and rewards and then make a decision based on your own judgment.

If you get discouraged, look at yourself in the mirror and ask the big “Why?”

As long as you know your purpose for starting a business, you can weather any challenges that life may throw at you.

Step 2: Understand What It Takes To Succeed in Entrepreneurship

how to start a business in the philippines 2

You don’t need an MBA to start a profitable business in the Philippines.

However, life-long learning is at the core of successful entrepreneurship. You learn best from your own failures and the mistakes of those who came before you.

Another way to hone your knowledge is to take free or paid training courses designed for beginners. For example, the Philippine Trade Training Center (PTTC) and the U.P. Institute for Small-Scale Industries offer “start your own business” programs that will teach you basic principles of running a business.

We also recommend the following training centers/courses:

Businessmaker Academy (1503A West Tower, Philippine Stock Exchange Building, Exchange Road, Ortigas Center, Pasig City).
TESDA Online Entrepreneurship Training Program .
Ultima EntrePinoy Center for meat processing, baking, and other food business courses (Nutrition Foundation of the Philippines Building, 107 E. Rodriguez Sr. Ave., Quezon City).
Department of Trade and Industry Negosyo Center – Seminars and Workshops .

Entrepreneurial success takes more than just technical knowledge. Your business can only grow to the extent that you do . Hence, it’s important to also invest in personal development if you want your small enterprise to prosper.

According to Management Systems International 2 , there are attributes common among successful entrepreneurs that led them to the success they have today. These characteristics can be grouped into three clusters–Achievement, Planning, and Power.

Achievement cluster

Opportunity-seeking – the ability to see opportunities and seize them as they come. For example, when people from your hometown are craving for donuts and there’s no single donut store that has been put up yet, will you be quick to act on this opportunity? An opportunity-seeking business person certainly would.
Persistence – a trait that will allow you to stick to your vision even in the face of criticisms and failures.
Commitment to contract – which means getting the job done on time and honoring your promises without any excuses.
Risk-taking – or more specifically, taking calculated risks to minimize potential losses. A good business person doesn’t just invest in any venture without carefully studying the market and identifying flaws in the business model.
Demand for quality and efficiency – a characteristic of great entrepreneurs who uphold excellence in everything they do and don’t just settle in a “puwede na ‘yan” attitude.

Planning cluster

Goal-setting – a skill that enables you to clearly define your goals and withstand the pressures and struggles of today in the name of achieving these goals.
Information-seeking – a quality you need in order to come up with informed decisions and calculated risks. When the future of your business is at stake, you gather only the best information from all the best sources–suppliers, experts, competitors, banks, and even government agencies.
Systematic planning and monitoring – while planning gives you the opportunity to choose the right supplies, manpower, and materials to achieve your goals, monitoring allows you to fine-tune your plan to bring you closer to achieving your goals.

Power cluster

Persuasion and networking – if you know how to leverage the power of persuasion, you can literally make everything you want to go in your favor: from persuading the bank to give you a loan to convincing your buyers that your product is worth a try.
Self-confidence – if you don’t believe in yourself and your ideas, then no one else will. You can’t succeed in any undertaking if you have a deflated ego. Believe in your dreams and everything else will follow.

Step 3: Come Up With a Business Idea

how to start a business in the philippines 3

Every successful business starts with one idea.

The problem, however, is many people think that a million-peso idea only shows up in a select few; it’s either you have it or you don’t.

While it’s true that some successful entrepreneurs got their ideas by accident, they are exceptions rather than the rule. For most of us, a winning business idea won’t magically fall into our laps so we have to look for it ourselves.

To start generating a list of business ideas, ask yourself the following questions:

What are the things you’re interested in?

Running a business can be tedious in the long run so you might as well choose a business that is in line with your interests.

Don’t worry if the idea has already been taken. Your goal, after all, is not to be original but to explore an already existing idea you’re interested in, turn it on its head, and make it better than what’s already out there.

Instead of trying too hard to be original, find ways to dominate an already existing market by offering better, cheaper, or faster products or solutions.

Do you have pain points in your life or problems that bother you that you wish could be solved?

Famous entrepreneur and Internet personality Gary Vaynerchuk believes that the best way to find the next great business idea is to stop looking 3 .

Instead, go through the daily grind of life with an open mind so that you can zero in on things that bother you when you encounter them. Chances are, you’re not the only one experiencing the same problem so if you figure out how to fix it, then you have a potential business idea.

The key here is to always have a problem-first approach; after all, the world doesn’t need more products but more solutions to their everyday problems .

What are your core skills or the skills you’ve developed?

You’re more likely to succeed in a business if you have the experience, knowledge, and skills that it demands.

Look back at your employment history and note the skills you’ve developed over the years that you’re both naturally good at and you enjoy doing. These can provide clues on what kind of business to pursue.

And we’re not just talking about skills that you’ve developed in your previous jobs; those that you’ve learned outside work are equally important and perhaps more reliable in helping you figure out what business to try. Since you enjoy doing them without any incentive to motivate you, then you can potentially turn it into a business you’ll never get bored doing.

What businesses are currently booming/trending?

First of all, there’s a difference between a business fad and a business trend. Whereas a business fad enjoys initial hype but proves to be short-lived, a business trend lasts longer as the consumers don’t easily lose interest in the product/service.

Apparently, your focus should be on the trending businesses because more people doing it means the idea is very profitable. In the Philippines, trending business ideas fall in any of these three categories: Food, online, or service.

Food businesses either focus on food manufacturing (i.e., creating your own products from scratch like what Eng Bee Tin did and other big names with humble beginnings in their founders’ own kitchens) or food trading which involves selling ready-made or frozen products like siomai, shawarma, etc.

Online home-based businesses are mostly done by professionals who sell their services instead of tangible products. These include virtual assistants, freelance writers, social media managers, bloggers, bookkeepers, graphic artists, and many more.

Last on the list are businesses in the service industry that are now thriving as more and more people become busier. Some of the best examples are laundry businesses , transportation/delivery services, pet grooming businesses, photography businesses, and wedding and events coordination businesses, among others.

In addition to asking yourself the above questions, you can further increase the number of business ideas you generate by reading this article: 100+ Best Small Business Ideas in the Philippine with High Profit.

Step 4: Conduct Market Research

how to start a business in the philippines 4

Starting a business without doing market research is akin to entering an unfamiliar territory without any map to guide you.

But what exactly can you achieve with market research? The answer is knowledge. A wealth of information and insights about who and where your customers and buyers are; when they’re most likely to buy or use your product/service; who your competitors are; and how big is the potential market demand for the product/service you’re currently developing.

In other words, everything that can help your business start off on the right foot.

This step has three components:

Market segmentation;
Market research;
Competitor analysis.

To begin your research, you have to know first that your business doesn’t necessarily need to appeal to everyone . It’s easier to focus on one segment of the market first and then expand later on.

In order to find this target market, you need to divide the general market into smaller subgroups. Also known as market segmentation, this process involves grouping the market according to location, demographics, behavior, or other variables that make sense for your business.

Let’s say you’re planning to develop and sell a mobile phone. You can find your market either at shopping malls or online shopping sites where mobile phones are being sold.

Through market segmentation, you can divide this market into different groups according to their motivations in buying a mobile phone. There are the housewives who only need phones with the most basic features since they’re only using them to call their loved ones; the students who look for phones with cameras and other features that will help them with their studies; the yuppies who prefer phones with a flashy look and more features to meet their professional needs; and so on and so forth.

Another example would be a business that will manufacture its own soap. There’s a huge market for soap but what type of soap exactly?

With the use of market segmentation, you’ll be able to identify different segments of the market with varying demands for a specific type of soap. There are the buyers who want to achieve whiter skin; people with sensitive skin who want to get rid of their pimples; people who just want a skin-friendly moisturizing soap; those who want scented soaps; people who prefer herbal soaps; etc.

After segmenting the market, it will be easier for you to figure out which specific group or type of buyers will be the target of your marketing efforts.

Once you’ve identified your target market, it’s time to put it under the microscope and get to know your prospective customers a little bit better.

This is when the market research comes into the picture. You employ tools and techniques to reach out to your target market and discover what makes them tick.

And if the sound of “market research” intimidates you, don’t worry. Although big companies require an equally big budget to recruit a huge number of respondents for their market research, small entrepreneurs can also gain access to a wealth of valuable information about their target markets without breaking the bank.

The following are the most common techniques you can use to conduct low-cost market research:

1. Survey – is the old-school way of collecting data from a sample group that is assumed to be the representative of the whole. You can use this method to learn what people think about the products currently available in the market and how you can create a better one in terms of quality and price.

Just make sure the survey participants are neither your friends nor relatives because of the biased opinions they tend to provide.

The questions in the survey should explore the factors the respondents consider when buying; what they like or dislike about the current products in the market; the kind of improvements they would like to see; and the price of the product that is reasonable for them.

2. Observation – is probably the crudest form of market research but one that remains effective nonetheless.

It can be in the form of contextual observation where the entrepreneur pays close attention to a sample of the target market as they use or experience a certain product or service. Other entrepreneurs take matters into their own hands and do a mock journey where they put themselves in the consumers’ shoes by buying and using the product/service themselves.

3. Prototyping – known in layman’s terms as simply “taste test” or “sampling”, this method allows the entrepreneurs to put their minimum viable product (or the early version of their product, warts and all) out there and use the customers’ feedback to further improve the said product as they go along.

Market research is a critical part of your initial entrepreneurial journey as it will help you realize whether there’s a demand for your product or not and if there is, who is most likely to buy it, how many they are, where they’re located, and how you can promote your business to them.

It will also identify both your direct (i.e., businesses selling the same product/service) and indirect competitors (i.e., businesses selling different products/services but are in the same category as you).

Speaking of competitors, the competitor analysis is just as, if not more, important than the market research itself.

Not finding time to learn more about your competitors, what they offer, and how much they cost will put your business on the losing end. This is because competitive analysis helps you discover ways to give your business a competitive advantage which will effectively prevent your target market from choosing others over yours.

Aside from collecting and analyzing available data about your competition, you can also go the extra mile and buy your competitor’s products to test them yourself. This way, you can once again put yourself in the customer’s shoes and gain ideas on how you can improve their experience through a product that only your business can provide.

Step 5: Decide Who Will Run the Business

how to start a business in the philippines 5

Most starting entrepreneurs build their businesses on their own as a single proprietorship. However, entrepreneurship can be a lonely endeavor so there’s nothing wrong with starting a business with a partner or a group of people.

The following are the different types of business according to ownership and the pros and cons of each to help you decide which path to take:

Single proprietorship – is the most basic type of business wherein you basically run the whole show. While it’s easier to set up and you’re free from outside interference, this type of business is also the most demanding and puts you at high risk for burnout. The growth of your company is also limited by your financial means.
Partnership – a business owned by at least two parties, this is also relatively easier to set up than a corporation and has the advantage of having the check and balance maintained by the co-owners. Businesses under a partnership tend to grow faster than sole proprietorship since there is more than one investor. However, more owners mean more chances of having a conflict.
Corporation – is a business run by at least five people. Like a partnership, a corporation can also grow faster because of the number of shareholders and is also highly flexible because all the owners can share the responsibilities. The downside is corporations are taxed more than sole proprietors, more difficult to set up, and have a tendency to institutionalize a bureaucracy.

To help you further in deciding which type of business structure to pursue, I recommend reading this section in our business registration guide . It contains crucial information on how to choose the right business structure based on your intention, risk appetite, capacity to raise capital, and other factors.

Step 6: Write a Business Plan

how to start a business in the philippines 6

Ever heard of the saying “if you’re failing to plan, you’re planning to fail?” Nothing can prove this better than starting a business where your own (or your investors’) hard-earned money is on the line.

This is why writing a business plan is crucial regardless of the size of the business you’re planning to start.

A business plan is a document that will show how your business will evolve from start to finish . It offers a closer look into your business model and helps identify any loopholes in its profitability, thereby giving you a clearer picture of whether the business is worth pursuing or not.

Specifically, a business plan will help you accomplish the following:

Prevent or eliminate the risk of losing money invested in businesses that are proven to be lacking in demand.
Reduce total expenses that would not have been possible without a business plan to help you examine details that are easily overlooked. Remember, every peso counts when you’re starting a business in the Philippines so you don’t want it to be wasted on something not essential.
Establish a healthy cash flow for your business especially during the lean and peak months. Cash is king when it comes to running a business for without it you’ll always be on the verge of bankruptcy . Through a business plan, you can create a contingency plan to make sure your business will stay afloat when the demand slows down and will be prepared enough to handle increased demands during peak seasons.
Set goals in terms of the total number of sales, revenues, or expenses and measure the actual performance of your business against these set goals.
Convince investors or lending institutions to lend you money to start your business. No sane person will easily hand you the capital for your business unless you can provide a well-thought-out business plan containing details on how the business will work and earn back the initial investment.

If you truly know your business inside out, it’s not that hard to write your own business plan. The more complicated and larger the business, the more pages the business plan would require.

Should you need assistance in writing a business plan, you may approach the following people/institutions:

SME Counselors from the Department of Trade and Industry (DTI);
Freelance consultants who charge lower fees than consulting firms because they don’t deal with big overhead expenses;
Accountants/bookkeepers;
Business professors;
Extension offices of business schools like Baguio’s St. Louis University Extension Institute for Small-Scale Industries.

As for the content of the business plan, it must depend on what kind of enterprise you’re planning to start. No two businesses are alike so the business plan should be written according to the uniqueness and conditions of your business.

In general, however, the following sections are considered basic components of a good business plan:

Title page – contains the name of your business and other basic details of your enterprise.
Executive Summary – provides an overview of what the company or business idea is all about, the problem the business is going to solve, the solution your business will provide, and how it will fit into the marketplace. This section will give investors an idea of whether to invest or not so make sure to leave a great first impression.
Business description – explains the type of business you’re planning to start, the industry it belongs to, and what it will look like in the future.
Market strategies – describe how big the market you’re trying to penetrate, who your target market is, and how you plan to sell to this market.
Competitive analysis – explores who your competitors are, their strengths and weaknesses, and how your business stack up against them. Essentially, this section shows what makes your business different from everybody and how you’re going to use this to beat your competitors.
Design and development plan – determines what exactly is your product or service and how you will develop it over the short term, medium-term, and long term.
Operations and management plan – describes how a day in your business will look like.
Financial plan – discusses in detail where the money to fund your business will come from and whether it will be self-funded or financed by outside investors. It also covers the projections you should create and what factors you should take into consideration; how much financing you need to start the business; how long it will take to pay back the investments (ROI); how will the ownership be divided, if applicable; and your backup plans in case profits or the demand for your business dries up.

When writing your business plan, keep in mind that nothing is final. It’s a living, breathing document that you can update every now and then as your business evolves.

Step 7: Build Your Product/Service

how to start a business in the philippines 7

Now that you have a business plan, you can start developing your minimum viable product. This is the earliest version of your product that you’ll introduce to your target buyers. You’ll then use their feedback in order to improve the product prior to mass production.

Even if you’re a perfectionist, it’s virtually impossible to create the perfect product or service right off the bat. So instead of succumbing to analysis paralysis, just release the first batch of your product into the wild and let the feedback dictate what changes you need to make.

Whether you’re planning to sell handicrafts, homemade cakes, or something more complicated, there are important aspects of product development you just can’t afford to take for granted. These are the following:

1. Process . Review the different steps that it will take to create your product. Are all of these steps necessary or can you remove some of them to save on costs without sacrificing product quality? What are tools and equipment will you need and how many skilled workers are needed to operate them?

2. Machines and equipment . Determine the things you’ll need to create your product, how much they are, and where are the best places that offer quality products at a minimal cost.

There are also some considerations to make depending on what type of business you’re going to start. Whereas a simple crafts business may only require hand tools and inexpensive machines, an Internet café will require specific computers with features that are completely different from those intended for personal use.

3. Materials . Know where and how you’ll get the materials you need as they will determine the pricing and eventually the profitability of the finished product.

For example, if your supplier is far from your business plant or location, and the transport facilities in the said place are limited, it will not only result in production delays but also additional manufacturing costs that will then jack up the price of the product.

However, it doesn’t mean you should just settle for the cheapest materials. Remember, don’t make a final decision based on price alone 4 as the reputation of your business is on the line.

To find the best deal, you can search online, get industry recommendations, or attend trade shows, among others.

4. Design . The product and the packaging must be able to get someone’s attention within the first few seconds of him/her glancing at them. The packaging should have a clean design, legible text, and clear branding that people recognize even from several feet away.

5. Pricing . Determine a reasonable price for your product/service by factoring in all the overhead costs. Make sure you have a good profit margin otherwise you may need to reduce the manufacturing costs (instead of increasing the product’s price) in order come up with a price that doesn’t turn off buyers.

The price of the product is also determined by the marketplace; if similar products are within a certain price range, then your product’s price should not veer off too much away from it if you want to capture the same market.

6. Trademark filing . Protect your business from copycats through trademark registration. You can either do it by yourself via the Intellectual Property Office of the Philippines (IPOPHL) website or hire a trademark lawyer to handle all the paperwork on your behalf.

Step 8: Get Feedback for Your Product

how to start a business in the philippines 8

In the process of developing our product, we tend to be blinded by our own awesomeness that we forget what actually matters to those who will buy it. This is when feedback becomes very valuable.

Even if you’re only selling a humble kakanin , customer feedback will spell the difference between a profitable business and one that won’t earn repeat buyers.

Your aim is to get honest feedback from actual buyers (a.k.a strangers and not your close friends/relatives) so it won’t hurt if you offer free or discounted products in the beginning.

If you’re selling clothing items, on the other hand, you can sell beta versions of your products in small batches at first and let the customers order through your social media or website. These first few buyers can get your products at a discounted price in exchange for their feedback on the fabric, color, fit, comfort, and other areas of improvement of your product. Done right, these early adopters may turn out to be your first few brand advocates later on.

Through the strategy discussed above, you can get the product to your prospective customers’ hands faster instead of aiming for perfection that can never be attained, especially sans buyer feedback.

This principle, also known as Lean Startup 5 , can be applied to most businesses but most especially to startups that can’t afford to have a long incubation period for their products. Instead of being held back by perfectionism, they push out the early version of their products to the market in order to get that coveted feedback that will then propel those products into a series of improvements.

When collecting feedback from your prospective customers/buyers, remember these tips:

Be thankful for the feedback regardless is it’s a positive or a negative one. This gesture will not only earn you their respect but also encourage them to continue providing honest opinions which you need the most.
Dig a little bit deeper to learn what the negative feedback is all about. If someone doesn’t like your product, he or she is most likely referring to one aspect of the product and not its entirety. Ask questions to figure out whether to improve a specific flaw or just scrap the whole idea altogether.
Look for patterns or the same comments given over and over again. Your customers know what’s best for them so if they’re specifically pointing out the same complaints, then address them as soon as you can before mass-producing your products.

Step 9: Look for Funding

how to start a business in the philippines 9

Regardless of the size of your enterprise, you need money to get it started.

If you’re only selling home-cooked meals or desserts, you probably don’t need as much capital and you can start with whatever money is left in your savings account. No need to borrow money since you can get all or a portion of your profit and then reinvest it into your fledgling home-based business.

The same can’t be said for startups or huge businesses like restaurants that require large upfront capital. Aside from your personal savings, you may also need to go through several rounds of investing in order to get the business off the ground.

Here’s a list of different financing options in the Philippines you may consider to raise funds for your budding business:

1. Your own money. Using your life savings or proceeds from the sale of your personal assets is the safest way to finance your business. Since the money will come out of your pocket, you’ll be more in control of your destiny and retain 100% of your equity.

2. Friends and family. If your own money isn’t enough to raise the needed capital, you may also turn to your well-off friends and relatives with enough cash reserves. The advantage of borrowing from them is you’ll get relatively lower interest rates and more flexible payment terms compared to bank loans.

However, if you still fail to raise the needed funds after exhausting your own savings and borrowing money from friends and/or relatives, then it’s time to consider outside sources.

3. Government financing programs . The Philippine government is aware that small businesses are the backbone of the economy so they have established loan/credit programs to support our entrepreneurs.

Financial assistance is offered by different government agencies which include, but are not limited to, the following:

Department of Science and Technology (DOST) and the Technology Resource Center which offer financing program for small businesses that are technology-related;
Department of Agriculture ‘s Agri-Microfinance Program or AMP which is designed to provide financial relief to farmers and fishermen (and their families) in drought- or calamity-stricken areas;
Department of Social Welfare and Development ‘s Sustainable Livelihood Program or SLP which seeks to improve the welfare and development of marginalized families through livelihood strategies.

For a comprehensive list of banks and government offices that offer financing programs for micro, small, and medium enterprises, you can check out the free ebook 6 published by the Bureau of Micro, Small, and Medium Enterprise Development (BMSMED) in collaboration with DTI.

The Philippine government-owned LandBank of the Philippines also offers lending programs 7 for those who are involved in the agricultural industry. These are the following:

Cacao 100 (Credit Assistance for Cacao Agri-Business and other Organizations) – offers loan assistance to farmers and entrepreneurs with the main goal of catalyzing the growth of cacao output in the Philippines. This is a good choice if you’re looking to fund your cacao nursery, cacao plantation, and all the processes involved in cacao beans processing.
Agricultural Credit Support Project (ACSP) – suitable for agri-businesses needing additional funding to support increased production or business expansion. This is ideal for entrepreneurs who are seeking financing for their fisheries, farm equipment, agriculture-related services, and agricultural product distribution.
KAWAYAN ( Kalikasang Kabuhayan para sa Wastong Pamayanan ) – this program provides financial assistance for farmers, LGUs, and entrepreneurs who have businesses involving bamboo nursery, bamboo plantation, trading, and eco-tourism.
ISDA (Integrated Support for the Development of Aquaculture) – is a program established to help small fishers as well as small and medium enterprises.

For more information about LandBank’s lending programs, you may contact their customer care center at (02) 405-7000, visit the nearest LandBank Lending Center, or send an email to [email protected]

4. Angel investors or Venture Capital investors . Another alternative source of funding is individuals or groups of individuals who already have the intent to invest.

Angel investors are established and wealthy individuals who use their personal money to invest in their chosen startups. The Angel Investment Network is a great online platform that enables you to find individual investors in the Philippines who can relate to the vision of your company.

Venture capital firms like Kickstart Ventures , on the other hand, is composed of a group of professional investors that pool together all the money coming from individuals, corporations, foundations, and pension funds and then invest them to startups of their choice, the majority of which are businesses dealing with technology and science.

5. Startup incubator or accelerator . The thriving local ecosystem has prompted the launch of several startup incubators and accelerators, most notable of which are the IdeaSpace Foundation, Launchgarage Inc., and QBO Innovation Hub, among others 8 .

The goal of these companies is to provide support to startups (mostly technology or fintech companies) in the form of office facilities, consulting, pitch events and equity-free seed funding that will help get their enterprises off the ground.

6. Banks . There are SME-friendly banks that lend money to entrepreneurs despite the risks associated with small businesses. Just make sure you comply with their requirements and show enough proof (including a business plan) that you have a clear vision for the business you’re going to start.

Examples of local banks known for supporting small businesses include the government-owned LandBank of the Philippines, the Development Bank of the Philippines, Metropolitan Bank and Trust Company, and the Planters Development Bank.

Related: Best Banks in the Philippines

7. Pitching competitions . Early-stage businesses can also get funding by joining televised pitching competitions like The Final Pitch and the upcoming reality show “Project GO” 9 sponsored by GoDaddy Inc. and to be aired on AXN.

These reality shows will require qualified contestants to pitch their business ideas in front of a panel of esteemed Filipino business experts and investors (think Shark Tank ). Since they’re joining a reality show, investment decisions will not be made unless the entrepreneurs go through a series of entertaining challenges first.

Prizes for winning contestants may be in the form of funding in exchange for partial ownership of their businesses or equity-free funding to help jump-start their ventures.

8. Other sources of financing . Small business owners can also consider the following when seeking credit assistance:

Pawnshops – the ideal choice if you’re only looking for quick cash. You can get the money you need by pawing your jewelry, gadget, or other valuables and then pay back the amount along with incurred interest.
Credit cooperatives – popular especially in rural areas, the credit coop can lend you an amount up to five times bigger than what you initially deposited when you joined. Unlike banks, credit coops charge a significantly lower interest rate for your loan.
Lending investors – a cross between banks and money lenders, these companies offer short-term loans to small enterprises with interest rates of usually 3% to 5% a month–higher than those offered by banks but lower than those charged by money lenders.

Step 10: Formulate Marketing Strategies

how to start a business in the philippines 10

In a nutshell, marketing strategies refer to how you’re going to convince or influence your target market to buy your product or services.

Your marketing strategies can be summarized into four key components. Let’s go over them one by one.

1. Product strategies – revolve around the product itself and how it will be perceived by your target market. It starts with good branding which is the design, reputation, name, logo, or a combination of these that make your product or service different from other similar products/services in the market. Consistent branding must also be present in the product’s packaging and labeling.

However, an excellent product can only go so far; you also need to invest in product support which is a catch-all term for all warranty, delivery, installation, and other services that come with the purchase of the product.

2. Place strategies – focus on how you want to bring your product or services to your target market. Depending on your business, you can use traditional or modern distribution channels (or even both).

Traditional distribution channels exist in the form of kiosks and brick-and-mortar stores where face-to-face interaction between the buyer and seller can cultivate a long-term buying relationship. New distribution channels, meanwhile, are those that don’t necessarily require an in-person interaction since the transaction can easily be completed via phone or the Internet.

Your choice of distribution channels depends on your target market’s preference and behavior, competition, as well as the current state of the market (think the 2020 pandemic that has forced restaurants and a lot of businesses to shift to e-commerce).

3. Price strategies – cover everything that concerns the price tag for your product.

How you price your product can make or break your business. Therefore, ensure you price your product or service in a way that will keep your business profitable while meeting the needs of the target market.

To come up with a price, there are three factors you have to consider. First is the cost of making the product or service you’re selling. You can add the total cost you incurred in producing your product and then divide it by the total number of the products to determine the unit cost.

For example, if you spent Php 1,500 to bake 100 chocolate cookies, the unit cost would be Php 15 (1,500/100). As for the selling price, you need to add a markup which is a percentage of the unit cost that you think when added will sufficiently cover the direct (i.e., materials, labor, etc.) and overhead costs. Say the markup is 20%, and 20% of Php 15 is 3, then the selling price is Php 18 (15 + 3).

The second factor you have to consider is the competition. You will use the price they have set for a similar product/service as a benchmark when determining the price of your own. You may either go higher to make the target market perceive what you’re offering as higher in quality or lower to make an introductory offer and in so doing gain your first few fans.

Lastly, the current demand for the product/service you’re selling can also determine the selling price. Simply put, the higher the demand for the product that only a few businesses are offering, the higher the selling price becomes. Conversely, the lower the demand for a product with plenty of supply, the lower the price will be.

4. Promotion strategies – make up the core of your marketing strategies since these cover all the tools and channels you’ll use to reach out to your target market.

Remember that whether you’re using Internet ads or television commercials to promote your business, it’s important to convey your message in a way that resonates with your prospective buyers.

To do this, you must focus on highlighting the benefits and not the features of the products. People won’t care how many advanced technologies you’ve used to produce your product unless it offers solutions to their problems. If you’ve studied your market well, then you should know by now what keeps these people awake at night and how your product can address this.

Step 11: Register Your Business

how to start a business in the philippines 11

Now that you’re a few steps away from launching your own business, it’s time to legitimize it by securing all the required permits and registration documents.

Whether your business is a sole proprietorship, partnership, or corporation, you’re required by the government to register it. Doing so will allow your business to be legal in the eyes of the law, file tax returns, apply for government loans, and avoid incurring penalties.

The process of business registration in the Philippines can be long and frustrating. Fortunately, we’ve covered all the basics and condensed them into one easy-to-follow business registration guide in the Philippines .

Step 12: Find a Strategic Location

how to start a business in the philippines 12

Choose the right location for your retail business and you already have the battle half-won. But how do you pick a great location? Here are some guidelines you need to follow:

It should be near the source of raw materials. The main reason why some products are priced ridiculously high is that it costs a lot for the raw materials to be delivered to the business location. Therefore, putting up a business near the source of the raw materials (e.g., sugar millers near sugarcane plantation, food processors near fruit/vegetable farm) will bring the transport cost down and in so doing make the product price more affordable for the consumers.
It should be where the market is. In the same way that you save on transport costs by placing your business near the source of your raw materials, you should also make sure that the business is near and accessible for people you intend to serve. If the target market exists within the vicinity of your own home, much better since you can start a home-based business and save on rental fees.
It should be accessible to your employees and customers. Foot traffic is the lifeblood of brick-and-mortar businesses so make sure the place where you’ll establish your store is easy to find, has plenty of public transport, and has available parking spaces for everyone. This strategic location will benefit not just your customers but also your current and future employees. A business near a good source of skilled labor won’t have a hard time finding new employees should the need arises and will also save on accommodation costs since they’re within the commuting distance of the business.
It must be in a place with a reliable and adequate supply of power, water, and Internet services . Even the slightest disruption in any of the aforementioned utilities can drastically affect your daily business operations so make sure you choose a location with an established infrastructure. If you’ll be renting a place, verify beforehand if the utilities are included in the lease so you won’t be caught off guard by any hidden charges.
It should be in a safe and peaceful environment. Building a business in a neighborhood notorious for looting and other forms of violence is a huge risk you can’t afford to take especially if you’re a first-time entrepreneur. Pick a place where established businesses have been thriving for decades and whose residents have high purchasing power. You also need to ensure that your business will comply with existing ordinances and zoning restrictions in your chosen community.
It must be in a decent and pleasant place. You don’t want to start a business in an environment that will drive prospective customers away so make sure to check the place for the presence of disagreeable things like smoke, noise, foul odors, dust, as well as proximity to places like bars and pub houses (unless your businesses are bars and pub houses).
It should be where a moderate number of your competitors are operating . The presence of competition can either be a good thing or not. If the place is full of competing stores placed one after another, it may be more difficult to stand out and penetrate the market. On the contrary, the absence of any competitor may be a telltale sign that the place is bad for business, especially if it has a history of similar businesses closing down or going bankrupt. In most cases, however, establishing your business beside one or two competitors can actually be a good thing since the presence of similar businesses in one place will attract more foot traffic.

Step 13: Form Your Dream Team

how to start a business in the philippines 13

A business won’t run by itself. It needs people to complete its daily operations.

As a business owner, it’s your responsibility to find and choose the right employees to join your dream team. If you own a retail business, the rule of thumb is to hire people who are highly approachable and have a positive attitude. A grumpy Debbi Downer is a liability that will cost you a lot of loyal customers.

Once you’ve found the right people, it’s time to train them well and incentivize them to do their best work consistently. In order to keep your employees motivated and committed to their jobs, not only should you pay them right but also treat them with the same respect and kindness you’d want to receive if you’re the employee.

Should you need assistance in providing technical training for your staff, the government can help you through various programs offered by the Technical Education Development Authority (TESDA), the Technology Resource Center (TRC), and the Department of Science and Technology (DOST).

When it comes to employees’ rights, there are a few important things you have to keep in mind to ensure you’ll be in good terms with your employees:

All employees, male or female, are entitled to equal compensation and work opportunities. Discrimination is not allowed in any way or form so you should not do unacceptable things like not hiring a woman just because she’s married or firing an employee just because she got pregnant.
Every employee should be assured security of tenure. You can’t dismiss an employee unless it’s due to a just or authorized cause. Termination can only be done after observing due process.
Employees are normally required to work for 8 hours a day . This 8-hour period already includes rest periods of less than an hour but excludes meal periods of at least one hour.
Employees are entitled to get a rest day after not more than 6 consecutive workdays. They can also file different types of leaves to take a break from work. These include the five-day Service Incentive Leave (SIL) with pay which can be availed by the employee after a year of service in the company; Maternity Leave which is granted to qualified female SSS members in anticipation of childbirth or due to abortion or miscarriage; and the seven-day Paternity Leave with pay for the male spouse of a woman who is about to give birth or has suffered from a miscarriage.
Employees must be paid the right wage commensurate to the amount of work rendered as well as wage-related benefits like accommodation, overtime, rest day, night differential, 13th-month pay , and holiday.
Employees deserve to be protected from any injury, sickness, or death through a safe working environment .
All employees have a right to join or form a legitimate worker’s organization or labor union without the employer’s interference. These groups are established for the purpose of upholding their rights as workers and doing collective bargaining. For instance, workers can be represented by these organizations in tripartite decision-making involving them, the government, and the employers’ organizations. This way, they can have their voices heard in matters concerning workers’ wages and labor disputes.

Step 14: Purchase All the Needed Equipment and Supplies

how to start a business in the philippines 14

Some businesses can get by with just manual labor. However, for those that invest in machines and equipment, the increase in business productivity and profitability can be phenomenal if done right.

Therefore, you have to apply the same meticulousness in selecting the supplies, machines, and equipment needed to produce your product. Follow these proven tips before making a purchasing decision:

Have a clear idea of what you want to buy before heading to the store/supplier. Know the specific needs of your business, the kind of machine/equipment that can meet these needs, and all the engineering features and operating characteristics you’re looking for. This way, you can cut down on shopping time and simply go straight to comparing only the products that meet all your criteria.
Shop around and don’t settle with the first supplier that you come across no matter how great it is. Instead, get information on each supplier that sells the machine/equipment you’re looking for and judge them one by one in terms of reliability, price, warranty, payment terms, delivery, installation service, maintenance, etc. Just because the product is the cheapest doesn’t mean it’s also the best; multiple factors will determine which one suits your business best.
Choose excellent machine/equipment that is within your price range . Remember, it’s an expensive investment so make sure you have done your assignment of comparing the cost of each machine/equipment that you’ve shortlisted based on their fuel efficiency, capacity, and other technical matters. Alternatively, you can lease or buy a second-hand machine/equipment so you won’t have to spend more money on a new one.

Step 15: Launch Your Business

how to start a business in the philippines 15

And there you have it: You are now ready to start your own business. Although this article has only covered the basic details of jumping into entrepreneurship, it should be enough to get you started.

Remember, it’s not unusual for first-time entrepreneurs to make mistakes in their first ventures but the lessons from these mistakes are what will propel you forward as you learn more about your business.

Entrepreneurship is not just about earning big bucks. It’s also about generating job opportunities that will help a lot of families. As an entrepreneur, you’ll be serving not just yourself but also the community around you.

Regardless of the outcome, consider this journey as a launching pad to greater things. And if there’s one thing that owning a business can teach you, it’s the truth that learning doesn’t stop.

So keep learning and have faith both in God and in yourself. Who knows? Your greatest breakthrough may be just around the corner.

Bureau of Small and Medium Enterprise Development (BSMED). (2015). Your Guide to Starting a Small Enterprise [Ebook]. Retrieved from https://www.dti.gov.ph/resources/e-library/business/starting-a-business/guide-in-starting-a-business-enterprise/
Bureau of Small and Medium Enterprise Development (BSMED). (2015). Do You Want to Go Into Business? [Ebook]. Retrieved from https://www.dti.gov.ph/resources/e-library/business/starting-a-business/guide-in-starting-a-business-enterprise/
Entrepreneur.com. (2017). Need a Business Idea? The Best Way to Find One Is to Stop Looking. [Video]. Retrieved from https://www.entrepreneur.com/video/295451
Goodman, M. (2015). The 7 Steps of Effective Product Development. Retrieved 10 August 2020, from https://www.entrepreneur.com/article/244616
The Lean Startup Methodology. Retrieved 12 August 2020, from http://theleanstartup.com/principles
Bureau of Micro, Small and Medium Enterprise Development (BMSMED). (2012). Financing Programs for Micro, Small, and Medium Enterprises (MSMEs) [Ebook].
Summit Publishing Co. Inc. (2015). 52 Inspiring Success Stories: Breakthrough Ideas for the Aspiring Entrepreneur (pp. 7-9). Mandaluyong City.
Noda, T. (2018). 10 Notable Incubators and Accelerators In The Philippines. Retrieved 14 August 2020, from https://fintechnews.sg/22610/fintechphilippines/incubators-accelerators-in-the-philippines/
GoDaddy, AXN launch reality show to jumpstart ventures of Filipino entrepreneurs. (2020). Retrieved 14 August 2020, from https://mb.com.ph/2020/08/12/godaddy-axn-launch-reality-show-to-jumpstart-ventures-of-filipino-entrepreneurs/

Written by Luisito Batongbakal Jr.

in Business and Finance , Juander How

Last Updated March 31, 2022 07:11 PM

Luisito Batongbakal Jr.

Luisito E. Batongbakal Jr. is the founder, editor, and chief content strategist of FilipiKnow, a leading online portal for free educational, Filipino-centric content. His curiosity and passion for learning have helped millions of Filipinos around the world get access to free insightful and practical information at the touch of their fingertips. With him at the helm, FilipiKnow has won numerous awards including the Top 10 Emerging Influential Blogs 2013, the 2015 Globe Tatt Awards, and the 2015 Philippine Bloggys Awards.

Browse all articles written by Luisito Batongbakal Jr.

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7 steps to creating a taxi business plan

Taxi transport holds a major part in the transportation sector. It is the basic need of every commuter, and the availability of this transport plays an important role in society. So, there is always a place for every taxi company to grow, provided it is different and stands out from other competitors in the market. And everything starts with a well-designed plan.

Every business needs a plan so that it can reach its goal and overcome the cons and hurdles. Planning is the first step towards the success graph of any business, or we can say it’s a seed for the plant that will provide fruits in the future. It is an exercise to identify the problems, make proper decisions, think of the best alternatives, identify the focus areas, and manage resources effectively.

To design a proper business plan for the taxi industry, it is essential to obtain step-by-step insight into the areas that are the most critical parts of the business.

Market research

Market research is critical for the success of any business endeavor, particularly when starting a mobility business. By conducting market research, you can collect and analyze data on various aspects, such as the target area, local regulations, the transportation industry, customer preferences, existing competition, and potential demand. Once the market research is complete, you can pinpoint untapped opportunities, evaluate the competition, and uncover potential areas for unique offerings. These insights will provide valuable guidance for making informed decisions, crafting a robust business strategy, tailoring services to meet market demands, and establishing a distinctive competitive advantage.

Legal regulations

Understanding the legal landscape is crucial when considering the launch of a taxi business. It is important to obtain the necessary licenses and permits from local authorities, such as taxi vehicle licenses and driver permits. It is also essential to thoroughly examine transport regulations to ensure adherence. Having a grasp on price regulation is crucial, as local legislation can impact the way pricing structure and fare calculation procedures are handled. It is extremely important for drivers to undergo thorough screening, including background checks, in order to ensure the safety of passengers.

Financial Considerations

When it comes to cost, there are multiple factors to consider before starting the business. First and foremost is the procurement of vehicles. Deciding on the number of vehicles for your fleet, whether it's through purchasing or leasing, is a crucial step. Additionally, it's important to take into account factors like fuel efficiency, maintenance expenses, insurance, and registration costs. Investing in technology is also essential. A taxi booking app, GPS navigation, and dispatch software can all assist speed up operations and improve the user experience. However, it's important to keep in mind that technology comes at a cost, so it's necessary to plan your budget accordingly. Investing in marketing activities can be essential for promoting a business. It is also important to consider the calculation of salaries for staff members. Remember to allocate a reserve fund to account for unforeseen costs and strategize for future advancements.

In the current transportation industry, technology plays a major part in ensuring the success and efficiency of any taxi business. Embracing technological advancements not only streamlines operations and improves the overall customer journey, but also contributes to increased profitability. By incorporating cutting-edge booking systems and GPS-enabled solutions, taxi companies can optimize fleet management, reduce wait times, and provide unparalleled customer convenience. Deciding upon the technology and incorporating mobile apps that are easy to use enables customers to effortlessly book rides, monitor their drivers in real time, and make cashless payments, promoting a smooth and convenient service. Utilizing advanced analytics and data-driven insights enables a taxi business to make informed decisions regarding pricing routes and understand customer preferences, resulting in increased profitability and an advantage over the competition. Embracing technology is crucial for any taxi business looking to thrive in today's fast-paced, digitally-driven environment. So, it is important to plan the development of the app solution for the taxi booking business.

Vehicle fleet

When launching a taxi business, it's important to carefully plan and organize your fleet of vehicles. A taxi business's fleet is an essential component. Before proceeding, you must determine the fleet's size and composition based on parameters such as target market, geographical region of operation, and demand. When it comes to picking a vehicle, whether it's a traditional sedan, hybrid, or EV, you need to find the right balance that meets the needs of your target customers. It is essential to thoroughly test every vehicle for safety, comfort, and reliability. Creating a maintenance plan is vital for maintaining your fleet in top condition, reducing downtime, and increasing efficiency. A well-organized fleet may help your taxi business succeed, making the ride smooth for drivers and customers.

Driver training and on boarding

Before starting a taxi business, driver training and on boarding are another essential factor. Making sure the drivers receive proper training is important for enhancing customer satisfaction and optimizing business operations. A comprehensive training program should encompass a wide range of subjects, including customer service skills, navigation expertise, vehicle maintenance knowledge, adherence to local regulations and traffic laws, familiarity with technology related to operating your taxi app, understanding of digital payments, and awareness of emergency features like SOS. By offering this training program, drivers can gain the knowledge and skills necessary to deliver exceptional service to customers. A streamlined on boarding process also helps new drivers integrate easily into the taxi business, fostering a sense of belonging and commitment. Investing in this type of training and on boarding establishes a solid foundation for a thriving and long-lasting taxi business, ultimately resulting in business expansion.

Safety and security for drivers and riders

Keeping both drivers and customers safe is an important aspect of running a taxi business. Prioritizing comprehensive safety measures not only increases customer trust, but also creates a positive working environment for drivers. Conducting thorough background checks on potential drivers, along with complete vehicle inspections, establishes a solid basis for a reliable service. Installing GPS tracking systems in vehicles enhances transparency and enables real-time monitoring of routes, ensuring the safety of passengers. Establishing protocols for handling emergencies, such as setting up a dedicated helpline or including panic buttons in the app, promotes a greater sense of security for everyone involved. A taxi company that places a strong emphasis on safety and security measures not only ensures the well-being of its drivers and customers, but also establishes itself as a reliable and dedicated service provider in the highly competitive market.

It is possible to reach the conclusion that the foundation for a successful business is ready after doing an exhaustive evaluation and analysis of each issue. A business can effectively launch and continue to operate over the long term if they take this comprehensive approach.

To further assist, we have developed a basic set of questions that you can answer on your own once you have finished your preparation following the seven steps mentioned above. This will ensure that your business planning is comprehensive and that you are ready to pursue your dream endeavor.

How to write a business plan for a taxi and minicab firm?

Creating a business plan for a taxi and minicab firm is an essential process for any entrepreneur. It serves as a roadmap that outlines the necessary steps to be taken to start or grow the business, the resources required, and the anticipated financial outcomes. It should be crafted with method and confidence.

This guide is designed to provide you with the tools and knowledge necessary for creating a taxi and minicab firm business plan, covering why it is so important both when starting up and running an established business, what should be included in your plan, how it should be structured, what tools should be used to save time and avoid errors, and other helpful tips.

We have a lot to cover, so let's get to it!

In this guide:

Why write a business plan for a taxi and minicab firm?

What information is needed to create a business plan for a taxi and minicab firm.

What goes in the financial forecast for a taxi and minicab firm?
What goes in the written part of a taxi and minicab firm business plan?
What tool can I use to write my taxi and minicab firm business plan?

Being clear on the scope and goals of the document will make it easier to understand its structure and content. So before diving into the actual content of the plan, let's have a quick look at the main reasons why you would want to write a taxi and minicab firm business plan in the first place.

To have a clear roadmap to grow the business

It's rarely business as usual for small businesses. The economy follows cycles where years of growth are followed by recessions, and the business environment is always changing with new technologies, new regulations, new competitors, and new consumer behaviours appearing all the time...

In this context, running a business without a clear roadmap is like driving blindfolded: it's dangerous at best. That's why writing a business plan for a taxi and minicab firm is essential to create successful and sustainable businesses.

To write an effective business plan, you will need to take stock of where you are (if you are already in business) and where you want the business to go in the next three to five years.

Once you know where you want your taxi and minicab firm to be, you'll have to identify:

what resources (human, equipment, and capital) are needed to get there,
at what pace the business needs to progress to get there in time,
and what risks you'll face along the way.

Going through this process regularly is beneficial, both for startups and existing companies, as it helps make informed decisions about how best to allocate resources to ensure the long-term success of the business.

Need a convincing business plan?

The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

To maintain visibility on future cash flows

Businesses can go for years without making a profit, but they go bust as soon as they run out of cash. That's why "cash is king", and maintaining visibility on your taxi and minicab firm's future cash flows is critical.

How do I do that? That's simple: you need an up-to-date financial forecast.

The good news is that your taxi and minicab firm business plan already contains a financial forecast (more on that later in this guide), so all you have to do is to keep it up-to-date.

To do this, you need to regularly compare the actual financial performance of your business to what was planned in your financial forecast, and adjust the forecast based on the current trajectory of your business.

Monitoring your taxi and minicab firm's financial health will enable you to identify potential financial problems (such as an unexpected cash shortfall) early and to put in place corrective measures. It will also allow you to detect and capitalize on potential growth opportunities (higher demand from a given segment of customers for example).

To secure financing

Crafting a comprehensive business plan for your taxi and minicab firm, whether you're starting up or already established, is paramount when you're seeking financing from banks or investors.

Given how fragile small businesses are, financiers will want to ensure that you have a clear roadmap in place as well as command and control of your future cash flows before entertaining the idea of funding you.

For banks, the information in your business plan will be used to assess your borrowing capacity - which is defined as the maximum amount of debt your business can afford alongside your ability to repay the loan. This evaluation helps them decide whether to extend credit to your business and under what terms (interest rate, duration, repayment options, collateral, etc.).

Similarly, investors will thoroughly review your plan to determine if their investment can yield an attractive return. They'll be looking for evidence that your taxi and minicab firm has the potential for healthy growth, profitability, and consistent cash flow generation over time.

Now that you understand the importance of creating a business plan for your taxi and minicab firm, let's delve into the necessary information needed to craft an effective plan.

Writing a taxi and minicab firm business plan requires research so that you can project sales, investments and cost accurately in your financial forecast.

In this section, we cover three key pieces of information you should gather before drafting your business plan!

Carrying out market research for a taxi and minicab firm

Before you begin writing your business plan for a taxi and minicab firm, conducting market research is a critical step in ensuring precise and realistic financial projections.

Market research grants you valuable insights into your target customer base, competitors, pricing strategies, and other crucial factors that can impact the success of your business.

In the course of this research, you may stumble upon trends that could impact your taxi and minicab firm.

You might discover that customers may prefer to book a taxi or mini cab online, rather than by phone. Additionally, market research could potentially reveal that customers might appreciate a loyalty program or rewards for frequent use of your taxi or mini cab services.

Such market trends play a pivotal role in revenue forecasting, as they provide essential data regarding potential customers' spending habits and preferences.

By integrating these findings into your financial projections, you can provide investors with more accurate information, enabling them to make well-informed decisions about investing in your taxi and minicab firm.

Developing the marketing plan for a taxi and minicab firm

Before delving into your taxi and minicab firm business plan, it's imperative to budget for sales and marketing expenses.

To achieve this, a comprehensive sales and marketing plan is essential. This plan should provide an accurate projection of the necessary actions to acquire and retain customers.

Additionally, it will outline the required workforce to carry out these initiatives and the corresponding budget for promotions, advertising, and other marketing endeavours.

By budgeting accordingly, you can ensure that the right resources are allocated to these vital activities, aligning them with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of a taxi and minicab firm

As you embark on starting or expanding your taxi and minicab firm, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is essential for ensuring your business's success.

Both the recruitment and investment plans must align with the timing and level of growth projected in your forecast, and they require appropriate funding.

The staffing costs for a taxi and mini cab company could include salaries for drivers, administrative staff, and management. The company may also need to pay for additional training and development for their staff. Equipment costs for a taxi and mini cab company could include the purchase of vehicles, radios, and other technology needed to run the business. The company may also need to pay for fuel, insurance, and maintenance for their vehicles.

To create a realistic financial forecast, you also need to consider other operating expenses associated with the day-to-day running of your business, such as insurance and bookkeeping.

With all the necessary information at hand, you are ready to begin crafting your business plan and developing your financial forecast.

What goes into your taxi and minicab firm's financial forecast?

The objective of the financial forecast of your taxi and minicab firm's business plan is to show the growth, profitability, funding requirements, and cash generation potential of your business over the next 3 to 5 years.

The four key outputs of a financial forecast for a taxi and minicab firm are:

The profit and loss (P&L) statement ,
The projected balance sheet ,
The cash flow forecast ,
And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

Your taxi and minicab firm forecasted P&L statement enables the reader of your business plan to get an idea of how much revenue and profits your business is expected to make in the near future.

forecasted profit and loss statement in a taxi and minicab firm business plan

Ideally, your reader will want to see:

Growth above the inflation level
Expanding profit margins
Positive net profit throughout the plan

Expectations for an established taxi and minicab firm will of course be different than for a startup. Existing businesses which have reached their cruising altitude might have slower growth and higher margins than ventures just being started.

The projected balance sheet of your taxi and minicab firm

Your taxi and minicab firm's forecasted balance sheet enables the reader of your plan to assess your financial structure, working capital, and investment policy.

It is composed of three types of elements: assets, liabilities and equity:

Assets: represent what the business owns and uses to produce cash flows. It includes resources such as cash, equipment, and accounts receivable (money owed by clients).
Liabilities: represent funds advanced to the business by lenders and other creditors. It includes items such as accounts payable (money owed to suppliers), taxes due and loans.
Equity: is the combination of what has been invested by the business owners and the cumulative profits and losses generated by the business to date (which are called retained earnings). Equity is a proxy for the value of the owner's stake in the business.

example of forecasted balance sheet in a taxi and minicab firm business plan

Your taxi and minicab firm's balance sheet will usually be analyzed in conjunction with the other financial statements included in your forecast.

Two key points of focus will be:

Your taxi and minicab firm's liquidity: does your business have sufficient cash and short-term assets to pay what it owes over the next 12 months?
And its solvency: does your business have the capacity to repay its debt over the medium-term?

The cash flow forecast

As we've seen earlier in this guide, monitoring future cash flows is the key to success and the only way of ensuring that your taxi and minicab firm has enough cash to operate.

As you can expect showing future cash flows is the main role of the cash flow forecast in your taxi and minicab firm business plan.

example of projected cash flow forecast in a taxi and minicab firm business plan

It is best practice to organise the cash flow statement by nature in order to show the cash impact of the following areas:

Cash flow generated from operations: the operating cash flow shows how much cash is generated or consumed by the business's commercial activities
Cash flow from investing activities: the investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.) either to maintain the business's equipment or to expand its capabilities
Cash flow from financing activities: the financing cash flow shows how much cash is raised or distributed to financiers

Looking at the cash flow forecast helps you to make sure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

Your taxi and minicab firm business plan will normally include both yearly and monthly cash flow forecasts so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The initial financing plan, also known as a sources and uses table, is a valuable resource to have in your business plan when starting your taxi and minicab firm as it reveals the origins of the money needed to establish the business (sources) and how it will be allocated (uses).

taxi and minicab firm business plan: sources & uses example

Having this table helps show what costs are involved in setting up your taxi and minicab firm, how risks are shared between founders, investors and lenders, and what the starting cash position will be. This cash position needs to be sufficient to sustain operations until the business reaches a break-even point.

Now that you have a clear understanding of what goes into the financial forecast of your taxi and minicab firm business plan, let's shift our focus to the written part of the plan.

The written part of a taxi and minicab firm business plan

The written part of a taxi and minicab firm business plan is composed of 7 main sections:

The executive summary
The presentation of the company
The products and services
The market analysis
The strategy
The operations
The financial plan

Throughout these sections, you will seek to provide the reader with the details and context needed for them to form a view on whether or not your business plan is achievable and your forecast a realistic possibility.

Let's go through the content of each section in more detail!

1. The executive summary

The first section of your taxi and minicab firm's business plan is the executive summary which provides, as its name suggests, an enticing summary of your plan which should hook the reader and make them want to know more about your business.

When writing the executive summary, it is important to provide an overview of the business, the market, the key financials, and what you are asking from the reader.

Start with a brief introduction of the business, its name, concept, location, how long it has been in operation, and what makes it unique. Mention any services or products you plan to offer and who you sell to.

Then you should follow with an overview of the addressable market for your taxi and minicab firm, current trends, and potential growth opportunities.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Finally, you should detail any funding requirements in the ask section.

2. The presentation of the company

In your taxi and minicab firm business plan, the second section should focus on the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide an overview of the business's legal structure, details about the owners, and their respective investments and ownership shares. This clarity is crucial, especially if you're seeking financing, as it helps the reader understand which legal entity will receive the funds and who controls the business.

Moving on to the location part, you'll offer an overview of the company's premises and their surroundings. Explain why this particular location is of interest, highlighting factors like catchment area, accessibility, and nearby amenities.

When describing the location of your taxi and minicab firm to a third party financier, it is important to emphasize the potential of the area. You could highlight the diverse customer base, as well as any local attractions, events, or businesses that may generate increased demand for taxi and mini cab services. Additionally, you could emphasize the ease of access to the area, whether that be through public transportation, airports, or highways. You may also want to talk about the area's growth potential and potential for future development. All of these factors could make the location of your taxi and minicab firm an attractive investment opportunity for the financier.

Finally, you should introduce your management team. Describe each member's role, background, and experience.

Don't forget to emphasize any past successes achieved by the management team and how long they've been working together. Demonstrating their track record and teamwork will help potential lenders or investors gain confidence in their leadership and ability to execute the business plan.

3. The products and services section

The products and services section of your business plan should include a detailed description of the offerings that your company provides to its customers.

For example, your taxi and minicab firm might offer services such as 24-hour availability, pick-up and drop-off at any location, and a variety of car sizes to accommodate different types of groups. These services can provide customers with convenience, safety, and flexibility when travelling, as they are able to get to their destination in a timely and efficient manner. Additionally, customers may receive an estimated time of arrival and a receipt for their journey.

When drafting this section, you should be precise about the categories of products or services you sell, the types of customers you are targeting and how customers can buy them.

4. The market analysis

When you present your market analysis in your taxi and minicab firm business plan, it's crucial to include detailed information about customers' demographics and segmentation, target market, competition, barriers to entry, and any relevant regulations.

The main objective of this section is to help the reader understand the size and attractiveness of the market while demonstrating your solid understanding of the industry.

Begin with the demographics and segmentation subsection, providing an overview of the addressable market for your taxi and minicab firm, the key trends in the marketplace, and introducing different customer segments along with their preferences in terms of purchasing habits and budgets.

Next, focus on your target market, zooming in on the specific customer segments your taxi and minicab firm aims to serve and explaining how your products and services fulfil their distinct needs.

For example, your target market might include individuals who are looking for reliable transportation. This could include people who are travelling between airports, within cities, or for special events like weddings or corporate meetings. These customers might be seeking a more comfortable and private transportation experience than what a bus or train offers.

Then proceed to the competition subsection, where you introduce your main competitors and highlight what sets you apart from them.

Finally, conclude your market analysis with an overview of the key regulations applicable to your taxi and minicab firm.

5. The strategy section

When you write the strategy section of your taxi and minicab firm business plan, remember to cover key elements such as your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, elaborate on what makes your company stand out from competitors. This becomes especially important if you're a startup, aiming to carve a place for yourself amidst established players in the marketplace.

The pricing strategy subsection should demonstrate how you plan to maintain profitability while offering competitive prices to attract customers.

Outline your sales & marketing plan, detailing how you'll reach out to new customers and retain existing ones through loyalty programs or special offers.

For the milestones subsection, outline your company's achievements to date and your main objectives for the future, complete with specific dates to set clear expectations for progress.

Lastly, the risks and mitigants subsection should address the main risks that could affect your plan's execution. Explain the measures you've put in place to minimize these risks, assuring potential investors or lenders.

Your taxi and mini cab business could face a variety of risks. For example, you may face a risk of driver liability if the driver is involved in an accident or other incident while on the job. Additionally, you might face a risk of property damage if one of your vehicles is vandalized or stolen. Both of these risks could potentially lead to financial losses, so it is important to have a plan in place to mitigate them.

6. The operations section

The operations of your taxi and minicab firm must be presented in detail in your business plan.

Begin by addressing your staff, specifying the main roles and your recruitment plan to support the anticipated growth. Outline the qualifications and experience needed for each role and discuss your recruitment strategies, which may involve using job boards, referrals, or headhunters.

Next, clearly state your taxi and minicab firm's operating hours, allowing the reader to gauge the adequacy of your staffing levels. Additionally, mention any considerations for varying opening times during peak seasons and your approach to handling customer queries outside regular operating hours.

The key assets and intellectual property (IP) required to run your business should also be highlighted. If you rely on licenses, trademarks, physical structures like equipment or property, or lease agreements, ensure they are well-documented in this section.

You could have two key assets and IP that a taxi and mini cab might have. Firstly, they may have a fleet of cars that they own and manage. This could involve purchasing, leasing or renting vehicles from other companies or individuals. Secondly, they might have access to a booking system that allows customers to book a car online or via an app. This could involve having access to a software or technology platform that helps manage bookings and payments.

Finally, provide a comprehensive list of suppliers you intend to collaborate with, along with a breakdown of their services and main commercial terms, such as price, payment terms, break clauses and contract duration. Investors often seek insight into the reasons behind your supplier choices, which may include a preference for higher-quality products or established relationships from past ventures.

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of the content of a taxi and minicab firm business plan, let's look at some of the tools you can use to create yours.

What tool should I use to write my taxi and minicab firm's business plan?

In this section, we will be reviewing the two main options for writing a taxi and minicab firm business plan efficiently:

Using specialized software,
Outsourcing the drafting to the business plan writer.

Using an online business plan software for your taxi and minicab firm's business plan

The modern and most efficient way to write a taxi and minicab firm business plan is to use business plan software .

There are several advantages to using specialized software:

You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
You are guided through the writing process by detailed instructions and examples for each part of the plan
You can access a library of dozens of complete business plan samples and templates for inspiration
You get a professional business plan, formatted and ready to be sent to your bank or investors
You can easily track your actual financial performance against your financial forecast
You can create scenarios to stress test your forecast's main assumptions
You can easily update your forecast as time goes by to maintain visibility on future cash flows
You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your taxi and minicab firm's business plan

Outsourcing your taxi and minicab firm business plan to a business plan writer can also be a viable option.

Business plan writers are skilled in creating error-free business plans and accurate financial forecasts. Moreover, hiring a consultant can save you valuable time, allowing you to focus on day-to-day business operations.

However, it's essential to be aware that hiring business plan writers will be expensive, as you're not only paying for their time but also the software they use and their profit margin.

Based on experience, you should budget at least £1.5k ($2.0k) excluding tax for a comprehensive business plan, and more if you require changes after initial discussions with lenders or investors.

Also, exercise caution when seeking investment. Investors prefer their funds to be directed towards business growth rather than spent on consulting fees. Therefore, the amount you spend on business plan writing services and other consulting services should be insignificant compared to the amount raised.

Keep in mind that one drawback is that you usually don't own the business plan itself; you only receive the output, while the actual document is saved in the consultant's business planning software. This can make it challenging to update the document without retaining the consultant's services.

For these reasons, carefully consider outsourcing your taxi and minicab firm business plan to a business plan writer, weighing the advantages and disadvantages of seeking outside assistance.

Why not create your taxi and minicab firm's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a taxi and minicab firm business plan is a terrible idea.

For starters, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

As a result, it is unlikely anyone will trust your numbers unless - like us at The Business Plan Shop - you hold a degree in finance and accounting and have significant financial modelling experience in your past.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Also, using software makes it easy to compare actuals vs. forecasts and maintain our forecasts up to date to maintain visibility on future cash flows - as we discussed earlier in this guide - whereas this is a pain to do with a spreadsheet.

That's for the forecast, but what about the written part of my taxi and minicab firm business plan?

This part is less error-prone, but here also software brings tremendous gains in productivity:

Word processors don't include instructions and examples for each part of your business plan
Word processors don't update your numbers automatically when they change in your forecast
Word processors don't handle the formatting for you

Overall, while Word or Excel may be viable options for creating a taxi and minicab firm business plan for some entrepreneurs, it is by far not the best or most efficient solution.

Using business plan software is a modern and cost-effective way of writing and maintaining business plans.
A business plan is not a one-shot exercise as maintaining it current is the only way to keep visibility on your future cash flows.
A business plan has 2 main parts: a financial forecast outlining the funding requirements of your taxi and minicab firm and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.

We hope that this in-depth guide met your expectations and that you now have a clear understanding of how to write your taxi and minicab firm business plan. Do not hesitate to contact our friendly team if you have questions additional questions we haven't addressed here.

Also on The Business Plan Shop

How to write a business plan to secure a bank loan?
How to write the business plan for a grant application?
Budget vs business plan
Difference between business case and business plan
Key steps to write a business plan?
Top mistakes to avoid in your business plan

Do you know entrepreneurs interested in starting or growing a taxi and minicab firm? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Dubai Taxi Co. turns in sharp revenue gains in Q1-2024, with profit after tax at Dh108m

Business markets.

Travel & Tourism

Fleet operator recorded significant gains in passenger contracts

Dubai: the Dubai Taxi Company drove up with smart increases in revenue and profits for the January to March period, with profit after tax coming to over Dh108 million from Dh94 million a year ago.

This was from a revenue base of Dh558.35 million, a sharp rise on the Dh480.49 million 12 months ago. (This is the revenue DTC generated from ‘contracts with customers’.

Its taxis and limousines completed 12 million trips during the quarter, an increase of 8 per cent from a year ago.

"We maintained strong momentum into the first quarter of 2024, delivering revenue growth of 15 per cent year-on-year, which drove a 40 per cent increase in EBITDA," said Mansoor Rahma Alfalasi, CEO. "During the quarter, we announced the doubling of our fleet of airport taxis and acquired 94 new taxi licenses at the latest RTA auction, further cementing our position as the largest taxi operator in Dubai.

"We are committed to supporting Dubai’s mobility landscape as the emirate’s urban areas continue to expand by offering solutions that meet the diverse needs of Dubai’s residents and through adopting technologies that enable efficient operations and enhance utilisation.”

Dubai Taxi, which set some records during its IPO and subsequent DFM listing, fared well on its core services. The core taxi services had revenues up 15 per cent year-on-year, with a mix of increased trips and longer trip lengths.

Higher tariffs

Plus, there was the 'higher tariffs', and was also supported by the additional taxis added to the fleet.

"The company has exclusive pick-up rights at both Dubai Airports and benefits from an attractive tariff structure," said a statement. "DTC’s exclusivity agreements in high-volume areas of Dubai provide significant competitive advantage over other operators in the city. Its limousine segment also witnessed solid performance with revenue increasing 7 per cent year-on-year and 17 per cent quarter-on-quarter."

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COMMENTS

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