Starting a Chauffeur Business

Discussion in 'Starting a Business' started by sgadar23, Jan 10, 2010.

  1. sgadar23

    sgadar23
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    I am on the verge of starting a chauffeur business in Atlanta, GA. I hit a road bump during the process and wanted to know if anyone could help me get around it?

    I was told by the Georgia Public Service Commission Transportation Unit, that in order to get a certificate in the state of Georgia to operate as a limousine/chauffeur carrier you have to have a net worth of $50k. The certificate basically allows you to transport passengers for hire.

    My problem is that I don't have anything close to $50k to show as net worth and this could cause a major delay. If anyone has any ideas or strategies that I can use to perhaps get around this hump I would greatly appreciate it. Thanks once again for any response that could help or point me in the right direction.
     
  2. Fergal

    Fergal
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    Welcome to Business Advice Forum sgadar23. Thanks for asking your business questions and sorry to hear that you have hit an obstacle. Like all obstacles it can be overcome. Successful people don't become successful by letting obstacles stop them in their tracks.

    You should ask them for some documentation about that. When you get it have a good read of it and check to see if it applies to what you are looking to do. Look at the documentation positively, with a view to finding a way to launch your business.

    If the condition does apply, ask what evidence you need to give of your net worth. Then take a serious look at your situation and your figures, to determine if there is any way that you can provide them with this evidence.

    Also try contacting taxi, limousine, and chauffeur business associations. Speak to them about the legal requirements and ask them if there is any way round it.

    Are there any small business support organisations, government supported or otherwise, in your area that you could turn to for advice and support? Have a good search in Google and local telephone directories, to make a list of organisations that may be able to help you. Then start phoning them and ask for their advice and support. Then be sure to ask each of them if they know of anyone else who might be able to advise, support or otherwise help you to get your business up and running.

    Don't give up and please post back to update us on your thoughts and progress, we will do our very best to help you.
     
  3. DEADMAN

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    You may better start collecting resources through loan suppliers. You may put your property on hire if you believe that your business will take the successful step. However, as Fergal said don't forget to read the documentation very carefully as it might put you and your property into severals risks.

    Are you sure starting this business will overcome your loan once you started? How much time it will be taking? Have proper calculation on it.
     
  4. sgadar23

    sgadar23
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    Thanks Deadman, I want to exhaust every possible opportunity before having to put my house up for hire. With this type of business its kind of hard to determine how fast I would be able to pay off a loan; due to the fact that its strictly a for hire business, and I can't determine how many clients I'll have starting off. I will definitely have to promote my business before actually starting, in order to determine how much feedback am getting. Even with that, I would have to fully strategies a way to do that so I wouldn't disappoint future clients by not being fully in operation. Thanks for your advice, I greatly appreciate your help.

    Sean
     
  5. sgadar23

    sgadar23
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    Thanks Fergal, I would definitely look further into that and keep you posted on my progress. It was great advice, thank you so much for your time.

    Sean
     
  6. Fergal

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    Thanks for the feedback Sean and good luck with everything.
     
  7. sgadar23

    sgadar23
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    Hey Fergal, I just spoke with the Georgia Public Service Commission Transportation Unit and they informed me that I could show my house has net worth. I was under the impression that my house was considered a debt since am paying a mtg. on it, but they said that I could still show it as an asset. So thanks once again for your advice, now I get to move forward.

    Do you know some good ways to build business credit, I still have to purchase the vehicle and as much as I would love to buy it out right, I may have to lease it or do what's called a balloon finance. If I have to go that route, what are some things that I could do now to put me in the best position to walk away with the car? Keep in mind that this is a new venture so I haven't established any credit as of yet. Thanks!
     
  8. Fergal

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    Great to hear that things are working out for you sgadar23 and that you've received some important clarification that brings you a step closer to getting your business set up.

    You might start off by talking to your local banks and other financial institutions. Approach them one at a time, so that you can use the feedback you get from the first one, to better inform your application to the next one, and so on. When you approach a bank ask them if they would be prepared to finance the vehicle for you and ask them about the application process. If they turn you down ask them why exactly, so that you can address that issue before approaching the next finance provider. The fact that you have your own house should put you in good stead with the financial providers and hopefully you will be pleasantly surprised with their response.

    Another option to consider is approaching your existing mortgage provider. Maybe they are also involved in this type of finance or perhaps they could extend your existing mortgage, to give you the required finance to purchase the vehicle.

    When looking at finance options compare the APR over the term of the finance and try to go with the lowest one.
     
  9. seanstevens

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    Hi, will the business be a limited company (LLC) or will you be trading as a sole trader? Have you actually opened the company yet?

    You should start building your credit score (FICO) as quickly as possible. My feelings on the way the scoring system works is as follows:

    35% - based on your payment history.
    30% - based on any oustanding debt.
    15% - based on the length of time you have had credit.
    10% - based on new credit inquiries.
    10% - based on the type of credit you have.

    Impacts:
    How many times in the past you have paid late.
    If you have been sent out to collection companies.
    Any bankruptcies.
    The more recent the activities the greater the impact.
    How much debt you have in total, mortgage, loans, credit cards.
    The longer you have had credit the better.
    How many inquiries there have been on your credit score can negatively impact it (if you make an inquiry about yourself there is no impact).
    I believe that having different types of credit (rolling account etc) can have a positive impact.

    If you have a credit card (personal) or business if the already started, then start using it. Buy something on it every week or month and pay the balance off as soon as it is due. This will start to build up your score.

    Don't go around town trying to take out loads of contracts on credit. It will count against your score. The more checks made on your history the worse it would look, but don't worry about a few.

    If you can build up a personal history it will help when you try to do things for the business as you will be one of the directors and you can try to point people at your own score as a trustworthy kind of guy. It does not hurt to try it.

    As soon as you open the business open very small credit accounts, maybe with a business card supplier or whatever, and always pay on time or a little early so your score builds up.

    You might want to do a Google search on 'Michelle Dunn'. When it comes to Credit, she is at the top of the game in the US and has various websites that should be able to help you further when it comes to the real details and if she can't help she will know someone that can.

    I'm not sure if I have given you the answer you were looking for, but feel free to ask any specific questions and I'll see what I can do.
     

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