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The biggest question start-up operators always have is on what vehicles to buy. If you are going into the corporate transportation business, you probably are going to purchase a new luxury sedan and/or SUV.
Provide documentation on these circumstances, and you may still be deemed creditworthy.
It is very important to remember that in a down economy, banks and other lenders are eager to connect with solid prospects.
Research the type of vehicles in your immediate area and the basic price structure of your competitors. Being available at nights and on weekends dictates you will be a 24/7 operation available for airport runs and special evening occasions. The Small Business Administration (SBA) is a government agency that aligns itself with local lending institutions around the country. Your local limousine association can provide you with this information, as can the National Limousine Association.
Its mission is to lend money to entrepreneurs interested in starting or expanding a business. The SBA requires borrowers to submit a business plan. Designate a specific part of your home as your office.
On the retail side, Americans continue to go to the prom, get married, “do the town,” and even go away on vacation.
But those events all get scaled back, and as the Great Recession proved, many couples delay marriage, child birth, and vacations.
You will more than likely be covered for a good part of the loan under a warranty. Keep a close watch on the mileage driven and on maintenance. Consider getting GPS-based maintenance software or fleet management software that can track every facet of your vehicle and how it runs.
This data can help you discern trends, habits, and waste, thereby saving you money and increasing vehicle longevity.
What all economic upheavels show is that ambitious entrepneurs continue to puruse luxury ground transportation.
A down economy means a smaller pool of potential business, especially in the business travel sector as more companies keep more of their employees local, or just lay them off.