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Starting your own business can put you on the road to complete financial independence. You can work hours that suit you that are flexible. This can greatly improve your quality of life and help you earn extra money and have more time for your family.
Becoming a taxi driver is a great way to start your own business. It is a job that is always in demand, as people use private hire vehicles to get around every day. The public relies on taxis for doing the school run, getting to and from work, or visiting the supermarket, and each journey is a profitable fare that can put money in your pocket. Here is a simple guide to some of the steps you should take before you become a taxi driver. This is to help make sure you start on the right foot and maximise your profits.
Tips for Starting Your Own Business as A Taxi Driver
Getting The Right Vehicle
When you are a taxi driver, your vehicle is your new business. You generate your income protection through this car, and its reliability and features will have a huge influence on your success as a driver. Finding the right vehicle for you is important. It needs to be economical to run, as fuel will be one of your biggest regular and transportation costs. Its size and the size of its engine will also impact your insurance costs, another regular expense. Before you start getting any paperwork in order or finding a taxi firm to work for, you should build a shortlist of vehicles and find out more about them.
The Toyota Corolla Touring Sports makes the perfect private hire vehicle. As an estate vehicle, it can handle lots of luggage for profitable airport runs and can handle larger loads like lots of shopping from the supermarket. For the full spec, head to CabDirect.com to find out more about this economical estate, and lots more information about cars that make great cabs. Choosing a vehicle that offers space and versatility, as well as fuel efficiency, is crucial to becoming a profitable private hire driver.
Researching The Market
Before you jump into taxi driving, you would research the area you live in and the existing taxi market. You should find out how the taxi fares work in your area, how much licencing costs, and what existing firms are operating that you could join. If you widen your search area a little, you may find better options just a short drive away. This would add a little to your daily expenses, but you may make more money overall by driving a taxi in the next town or city, rather than in the one you live.
Set aside a few hours to start researching online. Break down the costs of driving in each area to see where you could make regular savings, factoring in fuel costs. The fares can vary wildly between different towns and counties. If you live near a city with an airport, you may be able to make a lot more money working there than in your home town. Doing a little research before you make your move into the taxi industry can save you a lot of stress, and boost your profits on every mile you drive and hour you work.
Licencing And Testing
Becoming a taxi driver requires some more testing and licencing than a standard UK driving licence. The requirements vary between counties and cities. You need to do a little research on this as well so that you can make the right choice for you and your new business. Driving a taxi in London, for example, requires some additional testing and costs compared to driving a cab in one of its surrounding areas or elsewhere in the country. Before you commit to an area, research the licencing requirements and costs thoroughly.
Drivers are required to complete some NVQs, or national vocational qualifications, to ensure they can provide customers with a reliable, safe, and legal service. This includes English language qualifications. Many of these can be completed online, though your local council will require you to attend some in-person classes and testing as part of becoming a taxi driver. These tests will include some local knowledge components that will help ensure you know your way around the area, getting customers to where they want to go efficiently. In London, this is known as the ‘The Knowledge Test’ and is one of the most extensive tests of its kind in the country. Outside of London, these tests are much less intense.
The Bottom Line
Driving a taxi can be a great small business, and comes with a lot of conveniences as well as profit. The most important step to take in the industry is your first step. Research the market, the vehicles, and the licencing requirements to find the right balance of costs and potential profits for you. When you get these things right from the start, profit and job satisfaction will follow. Do not speed into driving a taxi, plan your route carefully.