How to start a chauffeur business

Despite the economic challenges the coronavirus crisis presented, 2020 also saw an impressive 835,494 new company incorporations made in the UK from January 2020 to January 2021 – estimated at around 2,282 new businesses per day.¹ So, if you’re considering a career change, or perhaps recent events have motivated your entrepreneurial spirit, you’re not alone. If running a chauffeur business sounds up your street, these are the types of events you could cover:

• weddings
• executive meetings and gatherings
• tours
• dinner and dance events
• birthday parties
• prom nights

There are many things to consider and a lot of planning to undertake. Here’s our brief guide to setting up a chauffeur business.

Do you have chauffeur qualities?

Being a chauffeur is much more than about getting someone from A to B. Yes, you’ll need to be a good driver with a full DVLA driving licence, but personality and good communication skills are essential. You’ll need to be committed and willing to work unsociable hours, sometimes at very short notice. Reliability is critical; letting even one client down can severely damage your reputation. Not only will it be likely they won’t use you again, but you’ll also lose out on referrals to competitors.

Training courses cover the differences between drivers and being a professional chauffeur, including the personal skills required.

Do your research

Have an idea of what type of clientele you are aiming to attract. Research the market: are there already multiple companies servicing these clients? Is there something you can add to the services that they don’t offer? If there isn’t any competition, consider why – could it be a lack of demand for chauffeur services?

Once you’ve decided on your market, you’ll have a clear idea of the type of vehicle you’ll need to purchase and how much to charge for your services. Be realistic with your pricing, too low, and you undervalue your services, too high, and you’ll be out of people’s price ranges.

Costs

Besides purchasing your vehicle, there are other set-up and ongoing costs to consider: licensing – for yourself and your car – (some local authorities require twice-yearly inspections), tax, MoTs and insurance.

Having the right insurance in place is essential

Chauffeur insurance is specialist insurance that protects against the risks you face – many of which aren’t covered by standard car insurance. Chauffeur insurance can offer protection for you, the driver, your vehicle, and your passengers.

You’ll also need to consider protecting yourself against other risks. These include:

• Public liability – to help cover legal fees and compensation if a client or member of the public suffers injury or property damage due to your work and makes a claim against you.
• Breakdown cover – to help get you back on the road or minimise disruption to your clients’ travel should you suffer a vehicle breakdown.
• Multiple vehicle cover – if you operate between two and five vehicles, it may be more time and cost-effective to cover them all under one policy with a single renewal date.

Promoting your chauffer business

Once you’re ready to launch your business, you’ll need to tell people about it. You don’t need an extensive marketing budget. In fact, in the early stages, you need to keep costs down as much as possible. Start by creating a basic but informative and welcoming website – make sure it’s Google-friendly.² Social media presents many opportunities for you to tell people about the services you offer and for your clients to share their positive experiences of your service.

Running a chauffeur business can be rewarding and financially lucrative. However, it’s worth spending time researching and planning, before you start spending.

Get help to find the right chauffeur insurance

If you are in any doubt about the type and level of chauffeur insurance you need, we are here to help.

Our expert team is always ready to work with you to understand exactly the risks you face and the protection you need, before finding the insurance solutions that meet your specific business needs.

So, why not take a look at our specialist chauffeur insurance or get in touch to discuss your chauffeur insurance requirements.

^Sources:

<sup>1. https://www.rebootonline.com/digital-pr/assets/the-most-company-incorporations-past-year/
2. https://support.google.com/webmasters/answer/40349?hl=en</sup>