How to start up a minicab business

Written by camerons
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How to start up a minicab business
Put your new business into top gear. (hand on steering whell image by Andrzej Borowicz from

In the current financial climate, unemployment is at record levels. As a result, many of the unemployed are looking to start their own businesses to create their own incomes. A minicab business can be as big or as small as an entrepreneur desires, however there are a number of key elements involved in successfully setting up a new company. The Taxicab, Limousine & Paratransit Association (TLPA) advises that all new mincab businesses sign up with it as it acts as a regulatory board for the industry.

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  1. 1

    Decide how many cars will be a part of your business. Many minicab businesses start with only a small fleet of cars. If you wish to start the business with the smallest level of start-up cost, you may find that using only your own car is a cost-effective way of testing if your venture will be successful.

  2. 2

    Decide on how much you will charge. The bank Alliance and Leicester places a high level of importance on its recomendation that you decide from the outset how much to charge a customer. Most minicab organisations have a list of prices displayed in their cars, usually broken down per kilometre or mile.

  3. 3

    Talk to your insurance company. If you are using your own car for your new business, you will need to inform your insurance provider. Even if you yourself will not be driving the car or cars in question, it will be your responsibility to ensure all drivers and vehicles are properly covered.

  4. 4

    Recruit personnel. If you are to be driving around yourself, then there is every chance you will need at least one person to man the phones and take bookings. If you wish to be carrying out those duties yourself, you will probably be looking to recruit drivers. In either case, make sure all employees have a clean criminal record and that they are presentable. During the early days of a minicab business, repeat custom is essential.

  5. 5

    Install a telephone line. Depending on the level of work you wish to undertake, you will want to have a specific phone line for customers to call. This may be a mobile telephone if you are looking to keep costs down. If you are looking to expand your business, however, a landline is a far safer, more professional option.

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