If you’re looking for a new lucrative business venture, starting a private hire company can be a great idea. Great for those who love people and driving, this type of business can provide a steady and stable source of income. However, before you get started it’s important to learn as much about starting a private hire company as you can. Here, you’ll discover a brief guide to getting started and the challenges you’ll need to be aware of.
How a Private Hire Differs From a Taxi Business
A private hire business is slightly different to a taxi business. With taxis, you’ll be able to pick people up off the street. However, with a private hire company, it’s illegal to do this. Instead, your customers will need to book in advance. For this reason, many self-employed drivers choose to run a combined taxi and private hire firm. This allows them to take advance bookings for their private hire business, and they can also pick passengers up off the street.
What Will You Need to Get Started?
If you’re interested in starting a private hire company, there’s a few things you’re going to need to get started. Besides the obvious vehicle you’ll need, you’ll also want to consider:
- Private hire license
- A business plan
- Insurance
- Card readers
- GPS
You will need a private hire license, so you’ll need to contact your local council about this. It’s also useful to have a business plan in place when you’re just getting started. This is especially important if you’ll be looking for funding. You’re also going to need a good level of insurance, and the latest technology such as card readers and GPS to improve customer experience.
Finding an Affordable Vehicle
Of course, the main thing you’re going to need is a private hire vehicle. It can be difficult securing car finance if you’re moving into self-employment. So, you’ll want to focus on companies which offer self-employed car finance. You can also save money by investing in a used vehicle, or by leasing one instead of buying. There’s a lot to think about when you’re starting a private hire business. The above are just some of the basics you need to know before you get started. The more research and preparation you do, the easier you’ll find it to set up the business and decide whether or not it’s the right option for you.
