Shuttle buses are among the most important means of transportation today.  With the rising cost of fuel, people are opting to ride public vehicles as an alternative means of transportation.  People are able to go from one place to another at a lesser cost.  It also helps alleviate traffic as people will no longer use their own cars except for certain occasions.  

This can serve as a leverage for budding entrepreneurs who wish to enter into the passenger transportation business, particularly shuttle buses. If you are one of those who are interested or are dreaming of owning a fleet one day, then perhaps these tips can help you start up.

6 Tips on How to Start a Passenger Transportation Business

Tip #1: Identify Your Market and Create Your Business Model

Before you begin to draft your own business plan, it is important for you to understand foremost the behavior of the passenger transportation industry.  Even if you are specifically looking into starting a shuttle bus company, you have to note that your market includes those who use taxi services, airport shuttles, trains, ferry boats, passenger airlines, and ridesharing services like Uber and Lyft.

You must also determine who the passengers you want to cater to are and what kind of service you are planning to offer.  Are you going to run a private shuttle catering to private groups and tours?  Do you want to be an airport shuttle?  These are a few things that you should consider so you can decide on your niche and work on your business plan.  

It is very important to get good information on your market as this is the basis for your business model.  Ask yourself, what do you envision?  Every business model has its own corresponding costs and regulations to follow.  For example, having a private bus may require a smaller fleet compared to public shuttles.  By doing this you can assess your budget and your long-term and short-term goals. 

Tip #2: Draft Your Business Plan

So what is a business plan?  It is creating the very heart and soul of your business.  This is where you will always refer to. It is a summary that describes your entire business.  Here you will list down your:

• Services
• Industry description
• Target market
• Location
• Vision and mission statements
• Goals
• Legal structure
• Capital and expenses
• Financial projections
• Analysis of competition
• BCG Matrix and more

By identifying all the key ingredients in your business, you will be able to create a good business plan that works best for you.  It will also put you on track and help you start your business properly.  After all, the investment involved in a shuttle bus business is not a joke.

Tip #3: Purchasing Your Bus or Fleet

When buying you should decide on how many you need or can afford at the moment, and if you are looking at buying brand new or used shuttle buses.  It is at this point that you might want to check on your current cash or budget, or your financing options.  You can avail of small business loans, bank loans, credit lines, and your peers.  There are also some states that offer grants to business owners who purchase new, environment-friendly vehicles.

Some people may decide to lease their buses. It’s fine.  In fact, the advantages are, you can spread your lease over time, and you won’t have to worry about repairs.

Tip #4: Get Proper Licenses and Registration

Never do shortcuts when it comes to paperwork.  You have to make sure that your business has met all the legal requirements.  You must register it with the Secretary of State, get a tax ID number and a commercial transportation license or business license.  Contact the Department of Motor Vehicles in your state so you will know what kind of permits and licenses you will need to operate.

Tip #5: Hire the Right Drivers

When you hire your drivers, require a valid driver’s license and make sure they have commercial driver’s insurance.  Ask them to submit to drug tests and background checks as well.  Driving a shuttle bus is a profession that requires safety not only on the driver and vehicle but more importantly on the passengers.  It is very important that you hire responsible professional drivers to do the job.

Tip #6: Market Your Business

Of course, when you have already established your business, you have to promote your services to your target niche.  Make use of all the ready resources at your fingertips, such as social media, other websites, and tv or print ads.  Marketing is a very important part of every business because it brings in leads that can be converted to sales.

You may also opt to partner or tie up with travel and tour agencies and private companies.  There are also travel and trade shows that you can attend where you can showcase your services.  And don’t look too far; you must market around your neighborhood first.  They are likely to be the fastest and most frequent customers you will ever have.

We hope that these pointers can guide you into starting up your shuttle business.  It may not be that easy at first, but once you have clearly set your goals and stick to them, you will go a long way in this industry.