Employees are literally the driving force behind a successful limousine business. Besides expertly carrying out the everyday tasks that keep a company running smoothly, experienced drivers and management teams contribute to the long-run viability of a business by enhancing its value. Whether you’re hoping to expand your limo service or sell to a buyer for a good price, hiring and retaining a strong staff will pay off.
Protect Relationships
In a service-oriented industry like the chauffeur business, relationships are everything. All limo businesses perform essentially the same service; what differentiates them is how they perform that service. Employees who are well-trained, trustworthy, and personable make a lasting positive impression on customers. Not only is this good for business, it’s also good for business value. If you need to put your limo business for sale one day, buyers may pay a premium for longtime employees who have relationships with loyal clients. When a business is sold, customers who are wary of a new owner may be tempted to try a competitor. If the clients have strong bonds with staff, however, they may be less apt to stray.
Maintain Smooth Operations
The critical few weeks after a business is sold can make or break the continued success of the company. If a business is heavily reliant on the current owner, it could take months for a new owner to learn the ropes. In the meantime, customers and suppliers may take their business elsewhere, reducing cash flow and damaging the company’s reputation. But if the business is able to largely run itself because day-to-day duties are shared by key employees, a new owner may be able to ease himself into his role without much disruption. Because experienced employees have a stabilizing effect during transitions, they reduce risk – and increase value – for those interested in buying a limo business.
Reassure Lenders
The business lending climate may be better today than it was a few years ago, but getting a loan still isn’t a walk in the park. Today’s banks are looking to take on as little risk as possible. Given the choice between funding a brand new business or an existing business, banks will opt for the company with the proven track record every time. Experienced employees can help guide a company through trying transitions like ownership changes, periods of rapid growth, and inevitable economic downturns. To lenders, consistently good performance means a good chance a borrower will make payments. To buyers, the ability to secure funding makes the prospect of buying a limousine business for sale more realistic. Whether you plan to put your limo company for sale in a year or a decade, the people you hire today will shape your business well into the future.
