A bus tour company offers excursions to both visitors and locals. Tours of beautiful and historical regions, as well as other points of interest, are an important community service. Bus excursions bring people together to share an experience. They also teach people about historical sites, local history, geography, and other vital features of your city and its surroundings.
Table of Contents
Start a bus tour company by following these ten steps:
Plan your Bus Tour Company
Create a legal entity for your bus tour company.
Register your bus tour company for taxes.
Create a Business Bank Account and a Credit Card
Create an accounting system for your bus tour company.
Get the Permits and Licenses You Need for Your Bus Tour Business
Purchase Bus Tour Business Insurance.
Define your bus tour company’s brand.
Make a website for your bus tour company.
Configure your Business Phone System
Starting a company entails more than just registering it with the state. This basic guide to beginning your bus tour company has been put together by us. These stages will guarantee that your new company is well-planned, correctly registered, and legally compliant.
STEP 1: Make a business plan.
A well-thought-out strategy is vital for entrepreneur success. It will assist you in mapping out the intricacies of your organisation and uncovering some unknowns. Consider the following crucial topics:
What are the initial and continuing expenses?
Who is your intended audience?
How much money may you charge your customers?
Fortunately, we have done a lot of the legwork for you.
What are the expenses of starting a bus tour company?
A bus tour company must have at least one tour bus. It might be a regular bus, a party bus, a coach bus, or a double decker bus. For the bus, you will need commercial car insurance. An intercom system with speakers must be installed so that the bus operator may inform guests about the tour’s attractions. People will not flock to this sort of company based on word-of-mouth recommendations. Marketing is required. Employees are required, but if you are ready to work long hours, you may manage a one-man bus tour firm.
A secondhand bus should cost between $5,000 and $10,000. A new tour bus filled with amenities might cost $100,000 or more. However, most tour buses of middling size sell for between $30,000 and $60,000. A tour bus may be rented, albeit acceptable models normally cost approximately $1,000 per day. Purchasing one or more tour buses makes greater economical sense. Expect to pay several hundred dollars each month for business vehicle insurance. Installation of an intercom system and speakers will cost between a few hundred dollars to a few thousand dollars, depending on the kind of bus, the quality of system to be installed, and the number of speakers requested.
What are the recurring costs of a bus tour company?
The bus has to be serviced and refuelled. Plan on spending at least a few hundred dollars every week on gasoline and maintenance. Bus drivers often earn between $10 and $25 per hour. Mechanics often make between $20 and $40 per hour. Marketing and accounting professionals make $30,000 to $60,000 per year or more. Budget at least $500 to $1,000 each month for marketing. Commercial motor insurance will most likely cost between $100 and $200 each bus. Each month, set aside $50 to $100 for office supplies and utilities.
Who is the intended audience?
The primary target market is tourists. These visitors are curious in the area landmarks and history. However, some bus tour firms operate in places where visitors are scarce. Everyone will be interested in enjoying an instructive, interesting, and enlightening bus trip, from retirees to students and families.
How does a bus tour company earn money?
This sort of company generates revenue by selling tour tickets. People will pay a high price to take a bus trip that enables them to appreciate the beauty of a location without having to worry about driving.
How much money may you charge your customers?
Tickets for bus tours range in price from $50 to $500 or more. The actual pricing is determined on the area the trip visits and the demand for tickets.
How much money can a bus tour company make?
If many buses are in operation, this sort of company may be quite profitable. Another key consideration is the location of the company and the trips. If the tour bus company operates in a tourist-heavy location, the company may achieve a six-figure profit in the first year of operation. As more buses are added to the fleet, earnings might approach a million dollars.
How can you increase the profitability of your company?
Selling food, beverages, and souvenirs before, during, and after the bus trip may help you earn extra money. Consider charging a fee for customised seat selection and expedited boarding/exit. If you have numerous buses of differing class, try charging extra for tickets on the more luxurious buses.
STEP 2: Establish a legal entity
Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.
Establishing a formal business organisation, such as an LLC or corporation, shields you from personal liability if your bus tour company is sued.
STEP 3: File your taxes
Before you can begin for business, you must register for a number of state and federal taxes.
To register for taxes, you will need to get an EIN. It’s really simple and completely free!Taxes on Small Businesses
Depending on the business form you choose, you may have multiple choices for how your company is taxed. Some LLCs, for example, may benefit from being taxed as a S company (S corp).
These guides will teach you more about small company taxes:
Taxes on LLCs
LLC vs. sole proprietorship
Corporation vs. LLC
S Corp vs. LLC
How to Form a S Corporation
S Corporation vs. C Corporation
There may be state taxes that apply to your company. In our state sales tax guides, you may learn more about state sales taxes and franchise taxes.
STEP 4: Establish a company bank account and credit card
Personal asset protection requires the use of distinct business banking and credit accounts.
When you combine your personal and business accounts, your personal assets (your house, vehicle, and other possessions) are at danger if your company is sued. This is known as penetrating your company veil in business law.
Furthermore, understanding how to develop corporate credit may help you get credit cards and other financing in your company’s name (rather than your own), lower interest rates, larger lines of credit, and other benefits.
Establish a business bank account.
Opening a business bank account is not only required when asking for business financing, but it also:
Separates your personal assets from the assets of your firm, which is required for personal asset protection.
It simplifies bookkeeping and tax reporting.
Create a net 30 account.
Net 30 accounts are used to develop and grow company credit while also increasing cash flow. Businesses use a net 30 account to purchase items and refund the whole debt within a 30-day period.
Many net 30 credit suppliers submit information to the main business credit agencies (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how firms establish business credit in order to get approved for credit cards and other lines of credit.
Apply for a business credit card.
Obtaining a business credit card benefits you in the following ways:
Put all of your company’s costs in one location to separate personal and business spending.
Build your company’s credit history, which will be important for raising funds in the future.
STEP 5: Establish business accounting
Recording your numerous costs and sources of revenue is crucial to assessing your company’s financial status. Keeping precise and thorough accounting also makes yearly tax filing much easier.
STEP 6: Obtain all required permissions and licences
Failure to get appropriate permissions and licences may result in significant penalties or possibly the closure of your firm.
Requirements for State and Local Business Licensing
Certain state permissions and licences may be required to run a bus tour company. Visit the SBA’s reference to state licences and permits to learn more about licencing requirements in your state.
For information on local licences and permissions, visit:
Check with the clerk’s office in your town, city, or county.
Contact one of the local organisations mentioned in the US Small Business Associations database of local business resources for help.
Waivers of Liability
Bus tour companies should have their customers sign disclaimers to prevent liabilities and possible litigation.
Registration of Vehicles
Businesses must register automobiles that will cross state boundaries for business reasons. A list of state requirements may be found here.
Requirements for Class B Driver Licensing
Most states offer licences in categories based on the weight of the vehicle being driven. Drivers of regular automobiles and trucks must have a Class A commercial driver’s licence (CDL), but operators of larger vehicles, such as most tow trucks, must have a Class B CDL. More information is available here.
STEP 7: Obtain commercial insurance.
Insurance, like licences and permits, is required for your company to operate safely and legally. In the case of a covered loss, business insurance protects your company’s financial well-being.
There are several sorts of insurance plans designed for various types of companies with varying risks. If you are unaware about the hazards that your company may encounter, start with General Liability Insurance. This is the most popular coverage required by small companies, so it’s a good place to start for yours.
Workers’ Compensation Insurance is another important insurance product that many companies need. If your company will have workers, your state may require you to purchase Workers’ Compensation insurance.
STEP 8: Establish your brand
Your company’s brand is what it stands for, as well as how the public perceives it. A strong brand will help your company stand out from the crowd.
How to Promote and Market a Bus Tour Company
Advertise your bus tour company on billboards near hotels, bus stops, popular tourist attractions, airports, and eateries. Make connections with the owners and managers of hotels, retirement homes, schools, wedding planning companies, and travel agencies. These individuals will assist you in connecting with consumers.
How to Keep Customers Returning
Marketing bus excursions in tourist locations is the most effective strategy to attract clients. In or near airports, hotels, restaurants, and other local amenities, advertise through billboards, signage, bus wraps, fliers, and local media. Most tour bus clients do not return to enjoy the same trip a second time, making it difficult to retain them. Consider providing an alternative tour with a different path. If clients appreciate their experience on the main route, they may be willing to pay for a ticket for bus excursions that take them on various routes with distinct attractions.
STEP 9: Create your company’s website.
After you’ve defined your brand and designed your logo, the next step is to build a website for your company.
While developing a website is an important step, some may be concerned that it is out of their grasp due to a lack of website-building skills. While this was a fair concern in 2015, online technology has made significant advances in recent years, making the lives of small company owners considerably easier.
The following are the primary reasons why you should not put off developing your website:
Every genuine company has a website, period. When it comes to bringing your company online, it doesn’t matter what size or sector it is.
Social media accounts, such as Facebook pages or LinkedIn company profiles, are not a substitute for your own business website.
STEP 10: Install your company phone system.
Getting a phone for your company is one of the finest methods to keep your personal and professional lives distinct and private. That isn’t the only advantage; it also helps you automate your company, provides it legitimacy, and makes it simpler for prospective clients to identify and contact you.