Airport shuttles transport people between the airport and either their homes, hotels, or where they parked their cars. Airport shuttles are used by business travelers, groups, families, and solo riders. The driver picks travelers up at a predetermined location and drops them off wherever necessary; typically with no more than two stops on each route. Vehicles are generally spacious, with ample room for riders to store their luggage.
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Start an airport shuttle business by following these 10 steps:
- Plan your Airport Shuttle Business
- Form your Airport Shuttle Business into a Legal Entity
- Register your Airport Shuttle Business for Taxes
- Open a Business Bank Account & Credit Card
- Set up Accounting for your Airport Shuttle Business
- Get the Necessary Permits & Licenses for your Airport Shuttle Business
- Get Airport Shuttle Business Insurance
- Define your Airport Shuttle Business Brand
- Create your Airport Shuttle Business Website
- Set up your Business Phone System
We have put together this simple guide to starting your airport shuttle business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
Exploring your options? Check out other small business ideas.
STEP 1: Plan your business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What will you name your business?
- What are the startup and ongoing costs?
- Who is your target market?
- How much can you charge customers?
Luckily we have done a lot of this research for you.
What will you name your business?
Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Airport Shuttle Business Name Generator
If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.
When registering a business name, we recommend researching your business name by checking:
- Your state’s business records
- Federal and state trademark records
- Social media platforms
- Web domain availability
It’s very important to secure your domain name before someone else does.
What are the costs involved in opening an airport shuttle business?
Those without the capital to start out with a fleet of vehicles and multiple drivers typically work out of a home office for the first year or so. Without the added expense of leasing a workspace, entrepreneurs are able to focus on what matters most – growing the business. Successful shuttle owners advise having between $10,000 and $50,000 set aside for start-up expenses. These numbers vary depending upon what assets you currently have to offer.
Before opening your “doors” you’ll need the following:
- At least one reliable vehicle – Make sure you invest in a van that’s wheelchair accessible and can transport 14-20 passengers comfortably.
- Fees for acquiring any required licenses
- Scheduling software
- Insurance
- Website – While your site doesn’t have to cost a fortune, you do want it to offer the basic services. Most travelers are on-the-go, using their smartphones or tablets to book reservations and confirm plans. As your business becomes more profitable, you should also consider offering a mobile application. This service could attract a whole new set of customers.
There are a number of franchising opportunities in this industry. Driverseat’s franchising fees start at $35,000.
What are the ongoing expenses for an airport shuttle business?
Until your business starts to grow, your ongoing expenses will be fairly minimal. You’ll have the cost of fuel, cleaning, and maintenance on the vehicle. Once you start building a fleet (and a team) your costs will rise significantly. Unless you’re comfortable with drivers taking the company vehicles home each night, a space to store your fleet will become necessary. This is the time to start looking into leasing office space. Experienced professionals cite payroll as their largest expense. A staff of nine could represent $35,000-$41,000 of your monthly budget.
Who is the target market?
It goes without saying that each customer will be traveling, either for business or pleasure. Since this encompasses a large number of people, and every city has something different to offer travelers, you’ll need to conduct research specific to your area. If your town is a tourist destination, vacationers from around the world might be your target audience.
For entrepreneurs living in an area that hosts large corporations or banks, individuals traveling for business would be a great demographic to cater to. As part of your research, find out how many shuttle businesses are already operating, which areas of the city they cover, and what niche they’ve carved out for themselves. With a little investigation and innovation, your business can carve out its own niche.
How does an airport shuttle business make money?
Shuttle businesses charge each customer a fee for transporting them from Point A to Point B. Some charge per mile, while others charge a flat fee. When drafting your business plan, consider whether you would like to transport individuals or if you would rather work with large groups who are all headed to the same hotel, terminal, etc.
How much can you charge customers?
Pricing varies depending upon a number of factors, both regionally and based on the client’s specific needs.
How much profit can an airport shuttle business make?
There are a number of factors influencing your organization’s prosperity, resulting in varied published profits. Successful shuttle business owners, however, have reported a profit up to $30,000 the first year, jumping to $64,000 by the third year.
How can you make your business more profitable?
Airport shuttle businesses have successfully increased their profits by implementing these strategies:
– Purchase land near the airport. Have a parking lot and an office built on it. Travelers can pay to park and you can have a van dedicated to getting travelers to the airport and back to their car when they return. The building can serve as your office and the lot can store your fleet during downtime.
– During downtime, consider offering your shuttle services to places like nursing homes and medical facilities.
– Approach the large corporations, casinos, and medical facilities in your area. Offer reduced fees for those who will retain your services for employees and customers who travel regularly. Contact your local school board to determine who transports children for sporting events and field trips.
– Get to know caterers and party planners in the community. Hosts often offer their guests off-site parking and shuttle service when parking near the party location is sparse.
– Offer multiple sizes and styles of vehicles. While your specialty is in transporting groups of people, you’re limiting yourself if you only offer your customers one option. Remember, diversity is strength.
Want a more guided approach? Access TRUiC’s free Small Business Startup Guide – a step-by-step course for turning your business idea into reality. Get started today!
STEP 2: Form a legal entity
One crucial aspect that cannot be overlooked when starting your airport shuttle business is the importance of establishing a solid business foundation. While sole proprietorships and partnerships are the most common entity types for small businesses, they’re a far less stable and advantageous option than LLCs.
This is because unincorporated business structures (i.e., sole proprietorships and partnerships) expose you as an owner to personal liability for your business’s debts and legal actions, while LLCs protect you by keeping your personal assets separate from your business’s liabilities.
In practice, this means that if your airport shuttle business were to face a lawsuit or incur any debts, your savings, home, and other personal assets could not be used to cover these costs. On top of this, forming your business as an LLC also helps it to appear more legitimate and trustworthy.
More than 84% of our readers opt to collaborate with a professional LLC formation service to kickstart their venture. We’ve negotiated a tailored discount for our readers, bringing the total down to just $29.
Note: If you’re interested in more information before getting started, we recommend having a look at our state-specific How to Start an LLC guide (DIY) or our in-depth Best LLC Services review (for those opting for a professional service).
STEP 3: Register for taxes
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It’s really easy and free!
You can acquire your EIN through the IRS website. If you would like to learn more about EINs, read our article, What is an EIN?
There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.
STEP 4: Open a business bank account & credit card
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
Open a business bank account
Besides being a requirement when applying for business loans, opening a business bank account:
- Separates your personal assets from your company’s assets, which is necessary for personal asset protection.
- Makes accounting and tax filing easier.
Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.
Get a business credit card
Getting a business credit card helps you:
- Separate personal and business expenses by putting your business’ expenses all in one place.
- Build your company’s credit history, which can be useful to raise money later on.
Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.
STEP 5: Set up business accounting
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
Make LLC accounting easy with our LLC Expenses Cheat Sheet.
STEP 6: Obtain necessary permits and licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
Federal Business Licensing Requirements
The federal government has its own transportation laws specific to any part of the transportation industry you plan to join. In particular, any transportation that crosses state lines (i.e., interstate transportation) is subject to federal law as well as the laws of the states you’re leaving from your original destination, passing through en route, and entering as your final destination.
State & Local Business Licensing Requirements
Certain state permits and licenses may be needed to operate an airport shuttle business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.
Each state has its own administrative oversight and law enforcement bureaus and officers to enforce transportation and commercial driving regulations. According to the IRS, “two state agencies have regulatory authority over the trucking industry in each state: the Public Utilities Commission and the Department of Motor Vehicles.” These regulations include filing proof of insurance and obtaining permits.
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.
Vehicles
Registration
Businesses are required to register vehicles which will travel across state lines for commercial purposes. Check here for a list of state requirements.
Class B Driver Licensing Requirements
In most states, licences are issued by classes, operating according to the weight of the vehicle being driven. Drivers of standard cars and trucks require a class A commercial driver’s license (CDL), while operators of heavier vehicles, including most tow trucks, require a Class B CDL to operate. More information can be found here.
Make sure your vehicle is disability-friendly and complies with the ADA, and also that you are complying with relevant airport ground transportation rules.
STEP 7: Get business insurance
Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.
Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers’ Compensation Coverage.
Find out what types of insurance your Airport Shuttle Business needs and how much it will cost you by reading our guide Business Insurance for Airport Shuttle Business.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you already have a logo, you can also add it to a QR code with our Free QR Code Generator. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.
STEP 9: Create your business website
After defining your brand and creating your logo the next step is to create a website for your business.
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
- All legitimate businesses have websites – full stop. The size or industry of your business does not matter when it comes to getting your business online.
- Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
- Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.
Recommended: Get started today using our recommended website builder or check out our review of the Best Website Builders.
Other popular website builders are: WordPress, WIX, Weebly, Squarespace, and Shopify.
STEP 10: Set up your business phone system
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2024 to find the best phone service for your small business.
Recommended Business Phone Service: Phone.com
Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it’s fair pricing.
Is this Business Right For You?
Individuals possessing the drive to own their own business and the inclination to interact with people would be best suited for this business endeavor. Since much time is spent on the road, the entrepreneur that enjoys driving would be the ideal candidate.
Want to know if you are cut out to be an entrepreneur?
Take our Entrepreneurship Quiz to find out!
What happens during a typical day at an airport shuttle business?
The specifics of your day will vary depending upon what skills you bring to the table and what aspects of the business interest you most. Some owners have the desire to be out in the field, transporting customers, while others prefer managing the office, leaving the driving to their staff.
As the shuttle business owner, your days will be spent performing the following activities:
- Transport customers
- Manage shuttle schedule
- Supervise shuttle drivers
- Perform routine maintenance on vehicles and make necessary repairs
- Bookkeeping
- Marketing
To reduce overhead expenses, many entrepreneurs start out wearing many hats. They perform all administrative duties and drive customers to their destinations. As the business grows, they’re able to add to their fleet, hire additional drivers, and employ an office manager to handle administrative tasks.
What are some skills and experiences that will help you build a successful airport shuttle business?
As consumers become more conscientious about the environment, they’re looking for ways to reduce their carbon footprint. They’re carpooling whenever possible, willing to share a ride with strangers. This paves the path for significant industry growth in the years to come. Business owners who are able to target a previously untapped demographic have realized significant growth, expanding their fleet and driving staff to more than ten drivers. The key to long-term growth and success in this industry is a well thought-out marketing and networking strategy.
What is the growth potential for an airport shuttle business?
As consumers become more conscientious about the environment, they’re looking for ways to reduce their carbon footprint. They’re carpooling whenever possible, willing to share a ride with strangers. This paves the path for significant industry growth in the years to come. Business owners who are able to target a previously untapped demographic have realized significant growth, expanding their fleet and driving staff to more than ten drivers. The key to long-term growth and success in this industry is a well thought-out marketing and networking strategy.
Useful Links
Industry Opportunities
- Super Shuttle Franchise opportunity
- Airport Ground Transportation Association
- Drivers Seat Franchise opportunity