Do you love to drive and meet new people? You should probably consider an airport shuttle business. It is a great way to meet new people while doing what you love – driving. However, starting a new business requires a lot of planning and research. If you want to start an airport shuttle business, find more info here.
If you’re new to the transportation business world or investing, you’ll need a step-by-step guide detailing everything. Below is the guide you need as you establish your airport shuttle business.
Step 1: Do Your Market Research
Every successful business is built on a unique selling point identified only after market research has been done. Market research is the foundational step you want to take to understand whether your business idea has the potential to scale and make profits.
As part of your market research, focus on these key areas;
The Demand For Airport Transportation
States and cities with airports are better locations to consider for airport shuttles than those without. Start by researching the demand for airport shuttles in your community or city. You can also try to understand the number of people transiting to other cities from your city and how the logistics work out for them.
There are many possibilities when considering the market for your services. You can choose to serve remote and underserved tourist areas. This allows you to monopolize the market and capitalize on tourist demands. You can also choose to serve the regular routes within the airport city, however, this may tend to be a little more competitive.
Identify The Competition
Understanding the existing competition in the market and how strong it is can help shape your business. For stronger and more competitive markets, try understanding what others are doing and how you can improve their services. For less competitive markets, focus on providing excellent services to boost brand awareness and customer engagement.
Unsure of how to conduct market research? Follow these steps;
- Search online for businesses similar to what you wish to establish
- Sample the market and talk to some of your target audience
- Identify the airports in your area and airport traffic
- Identify partnership opportunities to reduce your startup cost.
Step 2: Research The Financial Implications
Starting a new business requires the right amount of capital and a strict budget. With your market research showing a green flag, proceed to research the cost of establishing an airport shuttle, the required setup, and equipment costs.
Knowing the project cost can help you determine your funding source, prioritize equipment and processes, and plan your business. While designing your budget, decide on the best vehicle for your business and consider the two important options available; outright purchase or leasing.
You should also determine whether you want new equipment for the business or would like to save costs by acquiring pre-owned equipment. These considerations can impact your budget and improve your business plan.
Step 3: Check Licensing And Regulatory Requirements
Your business needs to meet the requirements to be registered and fully functional. Now is the time to get more information about setting up a business, the permits and licenses required, and other registration you must complete before full operation.
You should also learn about special permits for private hires, licenses available for drivers, requirements for becoming an employer, etc.
Step 4: Insurance Cover
Every business has its risks. You can minimize the risks of your airport shuttle business by learning as much as you can about the risks involved and the right insurance policies and coverage to purchase.
Getting the right insurance can make a difference between the cost of catering to accidents and damages when they happen. You may not pay a dime out-of-pocket with the right insurance cover to cater to the damages incurred during an accident.
Step 5: Research Service Pricing
Every business owner wants to deliver great services and make money from it. The key to making money and boosting a business’ profitability is setting the right prices. Consider the existing market and the price range for services rendered. You can also do some simple mathematics to understand whether the price point is enough to help your business break even.
Some ways to research service pricing include;
- Attempt booking services on different competitor websites
- Use a fare calculator
- Factor in the additional costs of each airport transportation
Step 6: Target Customers
Customers are always interested in better value for money, making it easier to target existing customers from competitors. A good way to target customers would be to identify your target audience and how best to communicate your message.
Some key ways to target your audience include;
- Digital marketing
- Social media marketing
Following the steps above can give you a good understanding of how to get your airport shuttle business up and running in no time.