Step 1. Research the Minibus Market
You most likely already have identified a gap in the market, it may be a contract that is up for renewal with a local council or school, or a lack of large people carrying vehicles in your local area.
For a business to be successful it needs to identify a niche or gap in the market and then offer a service or product that people want.
A few things to consider:
Where are the nearest local Minibus companies?
What do the competition offer that you could improve on?
Who needs your minibus service?
Step 2. Make a business Plan
New start-ups without a business plan have a far higher chance of failing than those that do.
Business plans are critical for the following reasons:
- To raise money for your business – Such as a bank loan to finance minibuses.
- To make decisions
- Help identify and potential issues with cash flow etc.
Step 3. Plan your Finances
Starting a minibus company can require a lot of money particularly for purchasing of vehicles, insurance and paying for all the relevant licences. It is well worthwhile putting together a spreadsheet that collated all the costs and predicts cash flow.
Step 4: Your Business structure.
When you are starting a business it is worth speaking with a qualified accountant to ensure the business is set up correctly. An accountant will advise the correct business structure which may be as a limited company or a sole proprietor or a number of other ways.
Step 5: Pick a Name
Choose a name that appeals not only to you but also to your customers.
Step 6: Get the correct Licences and Permits
If you are setting up a Private Hire business and you have over 9 seats you will need to speak to VOSA and apply for an Operator’s Licence more details can be found on the VOSA website. You will also need to speak with the DVLA to ensure you have the correct extensions on your Driving Licence.
Step 7: Choose an accounting system that fits your business
A good accounting system is critical for managing budgets and cash flow, alternatively your accountant may deal with all of your accounting for you.
Step 8: Promote your business
To attract clients it is critical you promote your business be it distributing business cards, posters social media or adverts in magazines. It is recommended that you also put together a marketing plan to detail where you intent to receive your enquiries in.
If you need any help with the Insurance side of your new minibus business please do not hesitate to call our dedicated Minibus team on 0208 691 9691. We wish you many years of success!