How To Start An Airport Shuttle Business (The Beginners Guide)

Are you looking for a good business to venture into? If yes, then this particular business idea is for you. Starting an Airport Shuttle Business today will be more profitable to you and the society as well. There are some business ideas you need to develop which within a month you will start smiling with money.

At this point, you need to have it in mind that every business requires money to start and you need to pass through some filling process before you can achieve what you want.

You need to have a clear understanding of what you want to start before making a step ahead. That’s the sole reason why this informative article was written. In this article, you will be given the necessary guides on How to Start an Airport Shuttle Business.

Airport shuttles are used by business travelers, groups, families, and solo riders. The driver picks travelers up at a predetermined location and drops them off wherever necessary; typically with no more than two stops on each route. Vehicles are generally spacious, with ample room for riders to store their luggage.

How To Start An Airport Shuttle Business

1. Plan Your Business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What are the startup and ongoing costs?
• Who is your target market?
• How long it will take you to break even?
• What will you name your business?

Luckily we have done a lot of this research for you.

What Are The Costs Involved In Opening An Airport Shuttle Business?

Those without the capital to start out with a fleet of vehicles and multiple drivers typically work out of a home office for the first year or so. Without the added expense of leasing a workspace, entrepreneurs are able to focus on what matters most – growing the business.

Successful shuttle owners advise having between $10,000 and $50,000 set aside for start-up expenses. These numbers vary depending upon what assets you currently have to offer.

Before opening your “doors” you’ll need the following:

• At least one reliable vehicle – Make sure you invest in a van that’s wheelchair accessible and can transport 14-20 passengers comfortably.
• Fees for acquiring any required licenses
• Scheduling software
• Insurance
• Website – While your site doesn’t have to cost a fortune, you do want it to offer the basic services. Most travelers are on-the-go, using their smartphones or tablets to book reservations and confirm plans. As your business becomes more profitable, you should also consider offering a mobile application. This service could attract a whole new set of customers.

What Are The Ongoing Expenses For An Airport Shuttle Business?

Until your business starts to grow, your ongoing expenses will be fairly minimal. You’ll have the cost of fuel, cleaning, and maintenance on the vehicle. Once you start building a fleet (and a team) your costs will rise significantly.

Unless you’re comfortable with drivers taking the company vehicles home each night, a space to store your fleet will become necessary. This is the time to start looking into leasing office space.

Experienced professionals cite payroll as their largest expense. A staff of nine could represent $35,000-$41,000 of your monthly budget.

Who Is The Target Market?

It goes without saying that each customer will be traveling, either for business or pleasure. Since this encompasses a large number of people, and every city has something different to offer travelers, you’ll need to conduct research specific to your area. If your town is a tourist destination, vacationers from around the world might be your target audience.

For entrepreneurs living in an area that hosts large corporations or banks, individuals traveling for business would be a great demographic to cater to.

As part of your research, find out how many shuttle businesses are already operating, which areas of the city they cover, and what niche they’ve carved out for themselves. With a little investigation and innovation, your business can carve out its own niche.

How Does An Airport Shuttle Business Make Money?

Shuttle businesses charge each customer a fee for transporting them from Point A to Point B. Some charge per mile, while others charge a flat fee. When drafting your business plan, consider whether you would like to transport individuals or if you would rather work with large groups who are all headed to the same hotel, terminal, etc.

How Much Can You Charge Customers?

Pricing varies depending upon a number of factors, both regionally and based on the client’s specific needs.

How Much Profit Can An Airport Shuttle Business Make?

There are a number of factors influencing your organization’s prosperity, resulting in varied published profits. Successful shuttle business owners, however, have reported a profit of up to $30,000 in the first year, jumping to $64,000 by the third year.

How Can You Make Your Business More Profitable?

Airport shuttle businesses have successfully increased their profits by implementing these strategies:

– Purchase land near the airport. Have a parking lot and an office built on it. Travelers can pay to park and you can have a van dedicated to getting travelers to the airport and back to their car when they return. The building can serve as your office and the lot can store your fleet during downtime.

– During downtime, consider offering your shuttle services to places like nursing homes and medical facilities.

– Approach the large corporations, casinos, and medical facilities in your area. Offer reduced fees for those who will retain your services for employees and customers who travel regularly. Contact your local school board to determine who transports children for sporting events and field trips.

– Get to know caterers and party planners in the community. Hosts often offer their guests off-site parking and shuttle service when parking near the party location is sparse.

– Offer multiple sizes and styles of vehicles. While your specialty is in transporting groups of people, you’re limiting yourself if you only offer your customers one option. Remember, diversity is strength.

What Will You Name Your Business?

Choosing the right name for your business is very important. That alone needs thorough planning because you need to relax your mind before you can get the right name for your business.

2. Form A Legal Entity

Establishing a legal business entity such as an LLC prevents you from being personally liable if your airport shuttle business is sued. There are many business structures to choose from including Corporations, LLCs, and DBAs.

You should also consider using a registered agent service to help protect your privacy and stay compliant.

3. Register For Taxes

You will need to register for a variety of state and federal taxes before you can open for business. In order to register for taxes, you will need to apply for an EIN. It’s really easy and free!

4. Open A Business Bank Account & Credit Card

Using dedicated business banking and credit accounts is essential for personal asset protection.

RECOMMENDED: How To Start A Bead Store | The Complete Guide For Beginners

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open A Business Bank Account

• This separates your personal assets from your company’s assets, which is necessary for personal asset protection.
• It also makes accounting and tax filing easier.

Get A Business Credit Card

• This helps you separate personal and business expenses by putting your business’ expenses all in one place.
• It also builds your company’s credit history, which can be useful to raise money and investment later on.

5. Set Up Business Accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

6. Obtain Necessary Permits And Licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

Federal Business Licensing Requirements

The federal government has its own transportation laws specific to any part of the transportation industry you plan to join. In particular, any transportation that crosses state lines (i.e., interstate transportation) is subject to federal law as well as the laws of the states you’re leaving from your original destination, passing through en route, and entering as your final destination.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate an airport shuttle business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Each state has its own administrative oversight and law enforcement bureaus and officers to enforce transportation and commercial driving regulations.

According to the IRS, “two-state agencies have regulatory authority over the trucking industry in each state: the Public Utilities Commission and the Department of Motor Vehicles.” These regulations include filing a proof of insurance and obtaining permits.

Vehicles

Registration

Businesses are required to register vehicles that will travel across state lines for commercial purposes. Check here for a list of state requirements.

Class B Driver Licensing Requirements

In most states, licenses are issued by classes, operating according to the weight of the vehicle being driven. Drivers of standard cars and trucks require a class A commercial driver’s license (CDL), while operators of heavier vehicles, including most tow trucks, require a Class B CDL to operate. More information can be found here.

Make sure your vehicle is disability-friendly and complies with the ADA, and also that you are complying with relevant airport ground transportation rules.

7. Get Business Insurance

Insurance is highly recommended for all business owners. If you hire employees, worker’s compensation insurance may be a legal requirement in your state.

8. Define Your Brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

9. Establish Your Web Presence

A business website allows customers to learn more about your company and the products or services you offer. You can also use social media to attract new clients or customers.