Business plan for a taxi firm
• Its key goal being to deliver low cost high quality services to London daily transport demands. Outline market • The key market for the services will be everyday people looking for airport transfers in all London. • Executive VIP people looking for London to U. K transfers. • Business looking to open accounts for their employees. Weaknesses These are the identified business weaknesses and which the firm can control in various ways. • Lack of adequate capital required to start the business. • Complexity in right bookkeeping concepts and record keeping for future evidences. • Lack of confidence that the firm is offering quality services than other existing firms in the industry. Opportunities These are the events and situations which the business can take advantage of. • To clearly study the entire roads which connect the city of Leytonstone.
• By year three • To look into financial records of other companies which have been offering similar services. • To know how to analyze financial records of any taxi firm and give right recommendations in case they are poor. • Five years + • To have built enough confidence in sharing with potential investors in matters related to investing to the right plan. Your business • First year • To saturate market through making television adverts that the firm will be the best and offering right services when compared with other existing firms of the same size. Premises This firm main office will be located in Leytonstone in London, and managerial staffs will make decisions to control entire activities from here. In starting this firm it will be requisite to go through the relevant authorities and ensure that the right documents to start operating in certain premise within the town have been attained.
Attaining the planning permission can be through either filling forms or you can decide to apply online. Data protection act This act will ensure that the confidential information of the company is not lost or shared to the public by wrong people. Most are the details or any physical information related to the customers to be served by the company will be given to any interested party unless court warrants. Employers’ liability Understanding that our taxi will have the drivers and managers of the online system are part of the main staff in the firm and thus should be liable for any hazard that may happen to them in case of performing their daily activities. it the role of the management to know that the safety of the workers is taken into consideration and compensation is catered for incase of damage.
Health and safety In all businesses it is mandatory to comply with the stipulations of health and safety act 1974, which covers all the activities and their associated accidents. It is the responsibility of the employer to ensure that workers are working under safe conditions and in case of risk areas of work; they wear the right protective clothes. According to health and safety policy if you employ more than five people you need to written policy and in this business plan, it will be applicable in that many are the drivers for the cabs and software developers for the online portals. The major costs captured in the survival budget are the ones for purchasing the new cars, the maintenance costs and the cost of paying workers.
• Sales forecast The number of sales from the customers has been estimated to be 100000 in the course of one month. This is quite a good start for the business and the sales are expected to keep rising up. This focused number of sales can be used to estimate the number of expenses to be added in order to have meaning profit. • cash flow forecast Pre Start Month 1 Month2 Month 3 Income FORECAST FORECAST FORECAST FORECAST Cash sales Income 80,000 90000 100000 Credit sales Income 0 0 Hours Charged 0 0 0 Own funds introduced 300,000 Loans Received 200,000 Other Income - Grants etc Total Income = (A) 500,000 80,000 90000 100000 Fixed Costs Owner's / Partner's Drawings (1) 10000 10,000 10,000 Directors Salaries ( Ltd Companies only) Staff Wages/Salaries Rent and Rates 0 8000 8000 8000 Electricity/Gas/Water 0 500 500 500 Telephone 0 300 300 300 Insurances 0 2600 2600 2600 Postage and Stationery 0 100 100 100 Publicity and Marketing 0 30000 Motor expenses 0 500 500 500 Capital expenditure 100000 Total Fixed Costs = (C) 100,000 22000 22000 52000 Figure 1 • profit and loss Profit and loss account of London ecab taxi firm Sales/turnover 100000 Variable costs Total variable costs 40000 Gross profit 60000 Fixed costs Managers salaries 10000 Staff wages/salaries 5000 Ret and rates 1000 Electricity/gas/water 500 telephone 300 Insurance 600 Publicity and marketing 400 depreciation 300 Total fixed costs 18100 Net profit $41900 From this table it is clear much of the fixed costs are coming from the paying of salaries and it is realistic since many of roles need engineers for servicing the cars and drivers for the purpose of driving.
First-hand information collected from some of the residents who travel frequently showed that despite the few taxi services available they are not enough and thus addition of extra service can complement the problem. • Secondary research London has been served by various mode of communication. For example, we have been having London Airport Transfers which do transmit people from airport and take those alighting to their destinations. This type of taxi services are available to all airports in London and are convenient for people who travel to other parts of globe and back to their residents. In addition airport transfers help in arrival to various events in a luxurious manner. Our services will stand out from the other in we will stick to our modes of payment as indicated in our adverts and our services will be offered in parts which are closely linking Leytonstone.
Provision of services at clock cycle is way of ensuring the availability of the services to late customers who wish to reach their residents at wee hours. In the first year we expect to have attained at least 20% of the customers in the whole of the town who use taxi services. We are aiming to be making in a year a net profit of $1000 and average of like 100 customers per day. The objective to monitor quality of services for our clients involves who are retained in using our services and new customers who enter into our services. Our business will embrace all forms of current payments which are up to updated technology and many people are using them. Marketing tactics • product or service Our key services which will be offered in transportation of people and personal luggage to their destinations.
People within Leytonstone town and other parts will be able to enjoy this service. We anticipate to be getting customers daily as people keep moving from one place to another. The key benefit which our customers will get is right convenience and efficiency is the best thing they will enjoy. Our well designed cards will keep marketing our business when we offer to them to our first customers and will help in promoting the business to the people who will be seeing them. The best way to launch our services is to have road launching whereby we can offer free rides to our customers to feel the comfort of our cars and explain to public how the firm will be operating as we move to various we expect our services to be expanded.
Promotional timetable date Marketing task Estimated cost First 4 weeks pre-start Deciding a logo for the London ecab taxi firm Design $30. 00 6 weeks pre-start Source a web-site Design $300. 00 2 weeks pre-start Distribution leaflets around car-parks Petrol $400. • quality-control To ensure quality service for our client will involve ensuring our customers are taken to their exact destinations and we don’t have complains of customers being mishandled by drivers. Our drivers being friendly and social are the key goal in handling our customers. • How will you measure customer satisfaction? The comments given by our customers through our media networks like Facebook, twitter and linked will enable us to measure customer satisfaction. Raised complaints by customers will be forwarded to the management and right channel taken in handling them.
From $10 to earn access
Only on Studyloop