Ev-ian
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No don't...but then if you do some research you WILL know something about it!! Think laterally: talk to the drivers, talk to customers. Get friends to use the firm or do it yourself undercover! Get an accountant to check out the accounts, research if the company has paid its way at companies house on time...have they got any CCJs? Whats the competition? whats the real reason for the sale? has anything changed lately that encourages the owner to sell? For instance a new bigger cab company has just moved in to the area? (If profit is £75000 he could employ a good manager for £30,000 pa and still make £45,000 on top.-so why doesnt he/she)..You could even get a job as a cab driver yourself for a few weeks in a rival company, get a feel for how thing work in your area....There are lots of ways to get some background. This will tell you what you need to know. I take it this is a minicab business? Cab drivers love to sit around and gossip -you will get a feel for whats going on if you can get em chatting (not difficult)!!! Is new legislation coming in that might affect cab busnesses? (For instance, a while ago all black cabs had to be modified to permit wheelchair access)...some new law might cost a business thousands. This is all basic business plan/due diligence stuff......In the end running a cab business is easy: people want to be taken places and they pay and you arrange pick-up and delivery...there is more to it than that but its not hard to pick up (my dad was a london cabbie and my brother drives a black cab in Croydon) |
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Joy2meetU
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Should you buy a business if you know nothing about the industry?
In most cases...No. With any business there is risks and advantages...pros and cons. The more you know in general not just about the industry, the better.
the taxi business:
In any business either you provide a service or a product, multiple products, or both services and products. As with the taxi business, your providing a service to people. Your best realistic approach is to do research first. Gather up a list of competitors in your area, in any business there's competition. However, don't let that scare you...use that to your advantage, learn where the competition is weak.
1.Customer Satisfaction
2.populated areas (more people = more business)
3.demand (high demand*)
4.added touch (ride experience; is your company going to be like any other taxi company. Being different stands out... the new, better, and improved taxi company)
5.knowledgeable friendly drivers, the more knowledge about the area, the better.
6. weekly reviews, monthly reviews (always review the performance of your business and staffs, there's always an area you can improve...always).
7.more leverage (the more you can achieve with less effort, less cost, less negligence, the better).
One thing you must learn everyday and understand:
A satisfied customer, is a customer for life. People like being treated like Royalty...in your kind of business, like precious cargo. When a business builds a good solid reputation with people...those people delight in dealing with that company. They will quickly refer other people (strangers, friends, and family) to that business. That, my friend has nothing to do with a particular business or industry. This golden rule and principial... applies to all business to customer or business to busiess standards.
If you do a good solid research. You should be able to determine: One, that you can build a large customer base. Two, build a good business reputation. Three, provide the best service possible to every customer. Finally, be able to operate with less cost (overhead), with sarcifing service.
In any business you must be willing to learn something new everyday. Never slack, don't ever fall behind.
Best, Fortune... |
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Hat-A-Tat-Tat!!
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if it sounds too good to be true - it probably is. personally, i would not go in to a business project if i knew nothing about the running of it, but i am sure with loads of effort - it is possible to overcome this! good luck with it anyway! |
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ed
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I would be very wary of someone telling me that they show a 52% profit.
I have to assume this is Gross profit.
Show me the expenses, and owners salary.
How much is insurance? Can't be a pittance.
What is the net?
Who owns the vehicles? If the owner does, how much maintainence?
Need a realistic estimate of how long to recover investment. |
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TV
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It always sounds logic to have a hands on operation with business related to service Industry, I guess it is not that difficult for your to gain knowledge but i feel you must be prepared to drive if need arise to prove to your employees that you are ready to face it.
If properly managed and handle with care i am sure nothing is difficult and you will succeed. Remember running taxi company is not that easy in London. Find out why the present owner is selling the company when it can produce almost 51.7% return on investment, there must be some thing else which is missing . |
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juls
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The word business or industry makes it more confusing, but actually it's easy to learn. Before you buy the taxi business, ask the current owner if you could manage it for a few days. You'll se it's easy. Go for it! |
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Teddy Bear 4 Arsenal
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If you don't have any knowledge about the industry, it's better to leave it. On paper, every industries promise good return, in fact, the result is not as you expected. Trust me.
Do what you know well, with a bit of luck, you will be success.
Good luck. |
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stanley harry
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Without knowing will be a bit difficult however it depends on business to business... taxi business i guess is not that diffcult, however you would have to learn fast and have a couple of good experienced people and also people if they have good contacts... |
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