Get The Capital
Cab taxi business is a lucrative business but capital intensive due to the high cost of buying a vehicle, even if you decide to start with just one car, it will still involves start up capital of about N600,000. This will be used to buy a fairly used car to start your taxi business, you can buy products like Mazda, Opel, Mitsubishi, Toyota Corolla, and other related cars that are durable and cheap to maintain.
You can get your capital either through funds from family and friends or simply obtain loan from micro finance banks, it might even be your own personal savings. It is advised you start your taxi business in a small way and then grow to the level of owning fleet of cars. Ensure you buy a good car that can pay back what ever you have borrowed.
Rental or Hire Purchase?
Rental in cab business means you give the car to the driver and he gives you returns on a daily basis, you will remain responsible for the car registration at any motor park, license, maintenance and repairs. If you choose the hire purchase arrangement, the hirer take full responsibility of the car which includes registrations at motor parks, licenses, maintenance and repairs of the vehicle. Which ever one you choose, it is important you carry out proper background checks on any driver you intend to rent or hire your car to. They should provide guarantors who can testify to their good and recommendable character and integrity, and ready to stand for them and be held responsible in case of any problem.
Remember, if you don’t carry out your investigation properly and you fall into the wrong driver, he may use or drive your car recklessly, damage your car or even sell it out-rightly, pocket the money and disappear. So make your research right before employing any driver.
Where Do You Want To Run It?
The areas you choose to run your taxi business will determine how much your driver will deliver to you on daily basis, for instance, if you run your cab through Victory Island you might get daily delivery of about N10,000 while in some part of Ikorodu in Lagos you can earn daily delivery of N3,000 to about N7,000 on a daily basis. This daily delivery is only applicable if you choose a rental service.
License And Mode Of Dressing Is Important
You must ensure that your drivers have the acceptable commercial driver license. This will help your driver to avoid embarrassment from the law enforcement agents on their daily activities.
Some drivers think their job is just to drive car and drop their passengers at their destinations and so, this makes most drivers look so unkept that they cause a lot of discomfort to the passenger/customer. You could just introduce dress code to your drivers. People address you base on how neatly you are dressed so make sure your drivers are neatly dressed.
When your business is fully set for operation, all you need to do is watch your business grow and then think of how you can expand in your taxi business.