Since the first horse drawn wagons in France, the introduction of limousines has grown into a thriving empire that doesn't seem to slow, yet. The 2005 figures revealed that it is a hefty $4.3 billion dollar trade in USA. Almost 70 percent of the established businesses have reported that they enjoyed on average a 25 percent boost in their income when compared to the last fiscal year. There were over 125,000 limousines in service in the United States in 2004 and these figures are on the rise every year. The estimated number of operators in the limousine business constituted almost 12,000 businesses in 2004. The Limo Business The modern limos are hiredfor a variety of reasons that may includebirthdays, weddings, corporate functions and party. An important issue remains whether the limousine business is still beneficial. With a compact playing arena, the various limousine companies still find it a lucrative opportunity. The revenue in the industry seems to be constantly increasing and the number of manufacturers increasing with it. Is it beneficial? According to the Limousine and Chauffer Magazine tourism sector will likely draw most companies while the stretched limo concept is projected to bring the most business for the night functions. The airport to hotel driven service is also a profitable idea which is perfect for otherwise small limousines. In United States, it is estimated that every one out of three limousine business accumulates more than $100,000 year in overall revenues. Most of the new businesses are focusing onlarge corporations which regularly require the use of executive limos or its extended version that can suitably be named, corporate limousines. Costs The cost of starting such abusiness vary but experts usually recommend to start anywhere from 2 4 limousines and grow accordingly. Major limousine companies can manufacture a limousine within 6 10 weeks, depending on the brand. The job requires a professional staff of welders, technicians and fiber glass specialists among others. The frame is cut into half and the space is then filled with the user specified or other custom designed space and tools. The business owners will have to be qualified as a QVM, qualified vehicle manufacturer. They will also need to adhere to the stringent criteria of quality control and security needs. Is it for you? It should be noted that a proper limousine business will require a good amount of financing which can easily range in half a million for a small limousine manufacturer. The manufacturers will also require a large warehouse and a workshop where they can build one of these large vehicles. On the other hand, it might be easier to start a limousine rental business which may not require such strict quality control. As a rule of thumb, a typical limousines sells anywhere between 15 to 20 percent of the actual cost of the vehicle. Whatever your ambitions, just make sure that you do a great deal of study on a costly but an otherwise very lucrative market.
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