Financial experts often advise clients to “invest in what you know,” but that doesn’t mean you have to be a limousine expert to experience success buying a limo business for sale. Most limousine companies feature a straightforward business model and stable demand. For investors with a solid general business background and a strong motivation to succeed, the luxury transport industry may be ripe for the picking.
1. Opportunities for investors with strong marketing/sales backgrounds
While there is some variation in vehicle models, most limousines are largely similar. They’re sleek, they’re comfy, and they get customers from point A to point B. If you want to set your chauffeur business apart, you’re probably not going to do it with your cars – you’re going to do it with your marketing skills. Many limousine business owners do not have professional sales and marketing training. If you have the experience and talent to create and market a brand – be it through an ingenious advertising campaign or unique customer service delivery – you have a distinct advantage that can allow you to break away from your competitors and capture a significant market share.
2. Fragmentation equals big opportunities for growth
The limousine industry is highly fragmented, thanks to its low barriers to entry and specialized requirements such as limo insurance and driver training. On one hand, this means investors buying a limo company may spend a lot of time and money fending off many similarly-sized competitors. On the other hand, those competitors represent a chance for growth and consolidation to a savvy entrepreneur. Rather than look at fragmentation as a limitation, look at it as an opportunity. By acquiring or merging with other limo companies, you can vastly increase your customer base and fleet, lower overhead costs, and expand into new territory while taking advantage of the same low entry costs that make the industry so fragmented in the first place.
3. High rates of success for investors with financial backgrounds
Obviously, delivery excellence is critical when you are in a marketplace as competitive as the limo service industry. But great service alone isn’t going to build a business. Sustained success means carefully watching your bottom line and making calculated choices when it comes to reinvestment and expansion. Just as many limo business owners lack marketing skills, they often enter the market without much financial prowess. Investors with a strong financial background may be in a better position to outsmart the competition. By meticulously managing your finances with six sigma type techniques, you may do very well in the limo industry.