Airport shuttles bring passengers from the airport to their homes, hotels, or parking lots. Business travellers, groups, families, and solitary riders all utilise airport shuttles. The driver picks up passengers at a prearranged spot and lets them off wherever needed; normally, no more than two stops are made on each trip. Vehicles are often roomy, with plenty of capacity for passengers’ belongings.
Follow these ten steps to start an airport shuttle business:
Plan your Airport Shuttle Company
Make your Airport Shuttle Company a Legal Entity.
Tax Registration for your Airport Shuttle Company
Create a Business Bank Account and a Credit Card
Create Accounting for Your Airport Shuttle Company
Get the Permits and Licenses You Need for Your Airport Shuttle Business
Purchase Airport Shuttle Business Insurance.
Create a brand for your airport shuttle service.
Make a website for your airport shuttle company.
Configure your Business Phone System
Starting a company entails more than just registering it with the state. This basic guide to beginning an airport shuttle service 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 an airport shuttle service?
Those who lack the funds to begin with a fleet of cars and many drivers often operate from home for the first year or two. Without the extra cost of hiring a workplace, entrepreneurs can concentrate on what is most important – expanding the company. Successful shuttle entrepreneurs recommend setting somewhere between $10,000 and $50,000 for startup costs. These figures change based on the assets you presently have available.
You’ll need the following before you can unlock your “doors”:
At least one dependable vehicle – Invest in a wheelchair-accessible van that can easily carry 14-20 people.
Fees for obtaining any necessary licences
Software for scheduling
Insurance
Website – While your website does not have to be expensive, it should provide the essential services. Most travellers make bookings and confirm arrangements on the move, using their cellphones or tablets. As your company grows in profitability, you should consider launching a mobile application. This service has the potential to bring in a whole new group of clients.
This sector offers a variety of franchising options. The franchise costs for Driverseat begin at $35,000.
What are the recurring costs of an airport shuttle service?
Your continuous expenditures will be quite low until your firm begins to expand. You’ll have to pay for petrol, cleaning, and car upkeep. When you start growing a fleet (and a crew), your expenses will skyrocket. Unless you’re okay with drivers driving the corporate cars home every night, you’ll need a place to park your fleet. Now is the time to start thinking about leasing office space. Payroll is the most expensive item for experienced professionals. A team of nine people might account for $35,000-$41,000 of your monthly budget.
Who is the intended audience?
Each consumer will, of course, be travelling, whether for business or pleasure. Because this includes a vast number of people and each city has something unique to offer visitors, you’ll need to perform research particular to your location. Vacationers from all over the globe may be your target audience if your town is a tourism attraction.
Individuals travelling for business would be an excellent demographic to cater to for entrepreneurs that live in a region that is home to significant firms or institutions. Find out how many shuttle companies are already in operation, which sections of the city they serve, and what niche they’ve carved out for themselves as part of your study. Your company may carve itself its own niche with a little research and creativity.
How does an airport shuttle company earn money?
Shuttle companies charge customers a fee to carry them from point A to point B. Some companies charge per the mile, while others offer a fixed rate. Consider if you want to transport individuals or huge groups that are all going to the same hotel, terminal, etc. while creating your business strategy.
How much money may you charge your customers?
Pricing varies depending on a variety of variables, both geographically and according to the client’s individual requirements.
How much money can an airport shuttle company make?
A variety of variables influence your company’s success, resulting in varying reported earnings. Successful shuttle company owners, on the other hand, have recorded profits of up to $30,000 in the first year, increasing to $64,000 in the third year.
How can you increase the profitability of your company?
Airport shuttle companies have enhanced their earnings by employing the following strategies:
Buy land near the airport. Build a parking lot and an office on it. Passengers may pay to park, and you can have a vehicle devoted to transporting travellers to and from the airport, as well as returning them to their cars. The structure may be used as your office, and the lot can be used to keep your fleet during downtime.
During downtime, consider providing shuttle services to nursing homes and medical institutions.
Contact local major companies, casinos, and medical institutions. Reduce your prices for individuals who will continue to use your services, such as staff and clients who travel often. Determine who takes students to athletic activities and field excursions by contacting your local school board.
Get to know local caterers and party planners. When parking near the party venue is limited, hosts often provide off-site parking and shuttle service to their guests.
Provide automobiles in a variety of sizes and types. While your specialisation is group transportation, you are restricting yourself if you just provide one choice to your consumers. Remember that variety equals strength.
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 airport shuttle 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.
Create a credit history for your firm, 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 Federal Business Licensing
The federal government has its own transportation rules that apply to any aspect of the transportation business that you want to work in. Any transportation that crosses state boundaries (i.e., interstate transportation) is subject to federal law as well as the laws of the states you depart from, travel through on route, and enter as your ultimate destination
Requirements for State and Local Business Licensing
Certain state licences and licences may be required to run an airport shuttle service. Visit the SBA’s reference to state licences and permits to learn more about licencing requirements in your state.
To police transportation and commercial driving standards, each state has its own administrative control and law enforcement offices and personnel. The IRS states that “in each state, two state agencies have regulatory jurisdiction over the trucking industry: the Public Utilities Commission and the Department of Motor Vehicles.” These rules include getting permits and submitting evidence of insurance.
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.
Vehicles
Registration
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.
Check that your car is accessible and conforms with the ADA, as well as that you are following airport ground transportation regulations.
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.
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.