Do you want to start a Pedicab and need to write a plan? If YES, here is a detailed sample Pedicab business plan template & FREE feasibility report.
Starting a business in the transportation sector could be fun, profitable and interesting business for someone with business sense, perseverance and smartness. With comfortable pedicabs, the right location, top-notch service and good marketing, you can serve a large customer base.
It is important to note that starting a standard pedicab business with over a handful of pedicabs and drivers also needs a significant investment capital, solid planning, and concentration to detail in order to keep your business profitable.
A Sample Pedicab Company Business Plan Template
1. Industry Overview
Pedicab business is a subset of the taxi and limousine services industry. A pedicab is a small, pedal-driven vehicle operated by a driver. Just as with taxi cabs, customers hire pedicabs to take them to a desired destination. This type of transportation is amazing because it is a rickshaw vehicle powered by a bicycle that gives people tours around the tourist attractions.
Pedicabs were introduced in North America in 1962, where they were a means of transportation at the Seattle World’s Fair in the state of Washington. Pedicabs are better suited for short trips, as the cab’s fuel is limited by the strength and endurance of the driver.
Pedicab businesses provide a clean, quiet, alternative form of short distance transportation. Pedicabs are known to help ease traffic congestion during well-attended events for both tourists and residents. The Taxi and Limousine Services industry is a major sector of the economy of the united states and it generates over billion annually from more than 338,882 registered and licensed Taxi and Limousine services companies.
The industry is responsible for the employment of over 413,046 people (drivers and administrative staff members). Experts project the industry to grow at a 6.7 percent annual rate. There is no establishment in this industry that has a dominant market share in the United States.
A research conducted by IBISWORLD shows that the Taxi and Limousine Services industry is in the mature stage of its life cycle. Industry value added (IVA), which measures the industry’s contribution to GDP, is also expected to grow at an average annual rate of 5.3 percent within the next 10 years.
Within that same period, GDP is estimated to increase by 2.1 percent per year on average. Basically, the industry demand is usually influenced by disposable income levels corporate profit and domestic trips by US residents.
When it comes to advertising your pedicab services company, there shouldn’t be any limit to how far you can go. You could start with handbills and distribute them in cooperate organizations and public places. If you have cash you can place advert spots on Newspapers, TV and Radio, and if you don’t have enough cash you can start with the worldwide web.
As a matter of fact, the internet has become one of the cheapest and most potent advertising platforms. Pedicab services businesses all over the world are still enjoying good patronage particularly if they have comfortable pedicabs, professional drivers, if they are well positioned and if they know how to reach out to their target market.
2. Executive Summary
Jesse Black® Pedicab Services Company, Inc. is a licensed and registered pedicab company that will based in Miami Beach, Florida – United States of America and we will have active presence in other tourist locations in Miami, Jacksonville, Clearwater, Tampa, Fort Lauderdale, North Miami, West Palm Beach, Palm Harbor, Deltona, Orlando, Palm Bay and Panama City et al.
We chose to operate in these cities because we know that our services will be in high demand due to the tourist sites and demographic composition of Florida. We are well trained and equipped with some of the finest pedicab drivers and comfortable and trendy pedicabs.
Our services will involve providing and charging customers a fare for transportation via our pedicab, create specialized sightseeing tours via our pedicab, provide tours for residents and tourists in our pedicab and also by contracting with businesses to make use of our pedicabs for advertising goods and services.
Although our intention of starting Jesse Black® Pedicab Services Company, Inc. is to offer only the above stated services, but we will not close our doors to diversification (additional services) as long as it does not affect our core services.
We are quite optimistic that our values and quality of service offering will help us drive Jesse Black® Pedicab Services Company, Inc. to enviable heights and also help us attract the number of clients that will make the business highly profitable. We will be dedicated to establishing good business relationship with our clients giving them value for their money and reasons for them to hire our services over and over again.
We are quite aware that in order to become the number one choice in the cities where we operate, we must continue to deliver quality and highly reliable services. Our excellent customer service and the quality of services we offer will position us to always welcome repeated customers.
Jesse Black® Pedicab Services Company, Inc. is owned and managed by Jesse Black and business partner, Jude Williams. They both graduated from University of Florida and they are equipped with the required qualifications and experience to grow Jesse Black® Pedicab Services Company, Inc.
3. Our Products and Services
Jesse Black® Pedicab Services Company, Inc. is a standard and well – equipped pedicab services company that is positioned to make profit and favorable compete with leaders in the industry and we are going to do all that is permitted by the law of the United States of America to achieve our business aims and ambition.
Our services offerings are listed below;
- Providing and charging customers a fare for transportation via our pedicab
- Providing tours for residents and tourists in our pedicab
- Create specialized sightseeing tours via our pedicab
- Engage in contracting with businesses to make use of our pedicabs for advertising their goods and services (lease our pedicabs to the local Chambers of Commerce for both promotional and advertising purposes)
4. Our Mission and Vision Statement
- Our vision is to become the number one pedicab services company in the whole of Florida with active presence in key cities all around the State of Florida.
- Our mission as a standard pedicab services company is to develop a highly successful, profitable business which provides quality pedicab tours and transportation services in our city and to become a standard for an ideal pedicab services business not only in the State of Florida but also throughout the United States of America where we intend launching our business and selling our franchise.
Our Business Structure
We are quite aware that the success of any business lies in the foundation on which the business is built on, which is why we have decided to build our pedicab services company on the right business foundation.
As a matter of fact, we are set out to build a pedicab services company that will be a standard in the United States of America and Canada. We want to build a business of dedicated workforce who will go all the way to ensure that our customers are satisfied and they get value for their money.
We aware that it takes a business with the right employees and structure to achieve all what we have set to achieve, which is why we will be putting structures and processes in place that will help us deliver excellent services and run the business on auto pilot.
With the wide range of our service offerings, we are only expected to employ more than it is required to run a conventional pedicab services business.
Definitely, we will have various employees (full – time and contract staff) to man the various services offering of Jesse Black® Pedicab Services Company, Inc. Jesse Black® Pedicab Services Company, Inc. will employ professionals and highly skilled people to occupy the following position;
- Chief Executive Officer
- IT Specialist
- Admin and HR Manager
- Marketing and Sales Executive
- Professional Drivers (Pedicab Drivers)
- Customer Care Executive / Front Desk Officer
5. Job Roles and Responsibilities
Chief Executive Office:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defining job positions for recruitment and managing interviewing process
- Carrying out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
Marketing and Sales Executive
- Identify, prioritize, and reach out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Writing winning proposal documents, negotiate fees and rates in line with company policy
- Responsible for handling business research, market surveys and feasibility studies for the organization
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Document all customer contact and information
- Represent the company in strategic meetings
- Help increase sales and growth for the company
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Create reports from the information concerning the financial transactions recorded by the bookkeeper
- Prepare the income statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper.
- Provides management with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the company
- Serves as internal auditor for the company
Professional Drivers (Pedicab Drivers)
- Serve as a professional driver for the organization by driving pedicabs as assigned by the management
- Keep their vehicles safe, clean, and attractive for customers
- Maintain a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
- Keep a record of vehicle inspections and make sure the pedicab is equipped with safety equipment
- Inspect vehicles for mechanical items and safety issues and perform preventative maintenance, replace any worn parts as needed and ensure that the tires are kept properly inflated and seat belts fully functional.
- Comply with pedicab driving rules and regulations as well as with company policies and procedures
- Report defects, accidents or violations
Client Service Executive/Front Desk Officer
- Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the manager in an effective and timely manner
- Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
- Receives parcels / documents for the company
- Distribute mails in the organization
- Handles any other duties as assigned by the line manager
N.B: Please note that in future, we will set up our own maintenance and repair shop so as to reduce maintenance expenses and increase profits for the business.
6. SWOT Analysis
Pedicab services business is one of the many businesses that can easily generate sales with little stress as long as they are well positioned and equipped to carry out their services. We are building a standard pedicab services business with the plans to sell our franchise all across the United States of America and Canada which is why we have decided to subject our business idea (company) to SWOT Analysis.
Ordinarily we can successfully run a normal pedicab services business without writing a detailed business plan, but because of the fact that we intend becoming of the leaders in this line of business we want to establish, we don’t have any option other than to follow due process.
We hired the services of a Business consultant with bias in startups to help us conduct SWOT analysis for our company and she did a pretty job for us. Here is a of the result we got from the SWOT analysis that was conducted on behalf of Jesse Black® Pedicab Services Company, Inc.;
The strategic locations we intend covering, the Business model we will be operating on, ease of payment, wide range of highly reliable and comfortable pedicabs, highly trained and courteous drivers and of course our excellent customer service culture will definitely count as a strong strength for Jesse Black® Pedicab Services Company, Inc.
So also, we have a well – experienced and qualified team that can give our clients value for their money; a team that are trained and equipped to pay attention to details.
A major weakness that may count against us is the fact that we are a new pedicab services company and we don’t have the financial capacity for now to compete with multi – million dollars taxi and limousine service companies that are also offering pedicab services and are already influencing the direction of the industry.
The fact that we are launching out in the heart of Miami – Florida, provides us with unlimited opportunities to market our services to a large number of people. We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they patronize our services; we are well positioned to take on the opportunities that will come our way.
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power especially for luxury services like pedicab services. Another threat that may likely confront us is the arrival of a new pedicab services company within same locations where we operate. Government policies can also pose a major threat to businesses such as ours.
7. MARKET ANALYSIS
- Market Trends
The market for luxury services such as pedicab, taxi and limousine services is driven by the growth in the economy and increase in consumer spending – in essence, as the general economy of a country grows, more people will have enough financial resources to patronize luxury services.
Besides, revenue generated by pedicab services is driven by business and leisure travel. No doubt, the profitability of operators in this industry depends on good marketing and networking. As a matter of fact, small pedicab services companies can effectively compete with large ones because there are few economies of scale in this line of business.
Lastly, a technology has indeed played a major role in this industry; especially in cutting cost and enforcing safety and monitoring measure. GPS car tracking device readily comes to mind. There is hardly any pedicab services company that does not have GPS car tracker installed on all their cabs. It helps them in monitoring their fleets and also in planning and budgeting et al.
8. Our Target Market
Before choosing a location to launch our pedicab services company, we conducted our feasibility studies and market survey and we were able to identify those who will benefit greatly from our service offerings. Below is a list of the people and organizations that our pedicab service is designed for;
- Even planners (pedicab rental services for wedding and social functions)
- Business People
Our competitive advantage
Pedicab services business is an easy to set up business especially if you have the finance to acquire comfortable cars and the ability to manage a business. It means that the possibility of pedicab services business springing up in the location where our company is located is high. We are aware of this that is why we decided to come up with a business concept that will position us to become the leader in Miami – Florida.
We can confidently say that the strategic locations we intend covering, the Business model we will be operating on, ease of payment, wide range of highly reliable and comfortable pedicabs, highly trained and courteous drivers and of course our excellent customer service culture will definitely serve as competitive advantage for Jesse Black® Pedicab Services Company, Inc.
So also, we have a well – experienced and qualified team that can give our clients value for their money; a team that are trained and equipped to pay attention to details. For the time being, Jesse Black® Pedicab Services Company, Inc. has no real competitors that can compete with the quality of services we offer. Our customer service will be customized to meet the needs of all our customers.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Jesse Black® Pedicab Services Company, Inc. is established with the aim of maximizing profits in the taxi cab and limousine rental services industry and we are going to ensure that we do all it takes to attract clients on a regular basis.
We will ensure that we leverage on our strength and the opportunities available to us in the U.S. market to generate enough income that will help us drive the business to stability. We will go all the way to explore every available sources of income in the Taxi cab and Limousine rental services industry.
Below are the sources we intend exploring to generate income for Jesse Black® Pedicab Services Company, Inc.;
- Providing and charging customers a fare for transportation via our pedicab
- Providing tours for residents and tourists in our pedicab
- Create specialized sightseeing tours via our pedicab
- Engage in contracting with businesses to make use of our pedicabs for advertising their goods and services(lease our pedicabs to the local Chambers of Commerce for both promotional and advertising purposes).
10. Sales Forecast
One thing is certain, there would always be tourists and residents who would need the services of pedicabs. We are well positioned to take on the available market in Miami – Florida and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six month of operation and grow our pedicab services business and our clientele base.
We have been able to examine the pedicab services market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Jesse Black® Pedicab Services Company, Inc. it is based on the location of our business and of course the wide range of related services that we will be offering;
- First Fiscal Year: $240,000
- Second Fiscal Year: $370,000
- Third Fiscal Year: $500,000
N.B: This projection was done based on what is obtainable in the taxi cab and limousine rental services industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
The marketing strategy for Jesse Black® Pedicab Services Company, Inc. is going to be driven basically by excellent customer service, honesty and quality service delivery. We will ensure that we build a loyal customer base. We want to drive sales via the output of our jobs and via referral from our satisfied customers. We are quite aware of how satisfied customers drive business growth.
Jesse Black® Pedicab Services Company, Inc. is strategically located and we are going to maximize the opportunities that are available which is why we spend more to locate the business in a location that will be visible and enable us to access our target market.
Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of Jesse Black® Pedicab Services Company, Inc. Jesse Black® Pedicab Services Company, Inc. is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our pedicab services business by sending introductory letters alongside our brochure to event planners, households and key stake holders in all across Miami, Green acres City, Miami, Jacksonville, Clearwater, Tampa, Fort Lauderdale, North Miami, West Palm Beach, Palm Harbor, Deltona, Orlando, Palm Bay and Panama City et al
- Print out fliers and business cards and strategically drop them in offices, car parks, libraries, public facilities and train stations et al.
- Use friends and family to spread word about our business
- Post information about our company and the services we offer on bulletin boards in places like car parks, schools, libraries, and local coffee shops et al
- Place a small or classified advertisement in the newspaper, or local publication about our company and the services we offer
- Leverage on referral networks such as agencies that will attract clients who would need our customized services
- Advertise our pedicab services company in relevant magazines, newspapers, TV and radio stations
- Attend relevant automobile expos, seminars, and business fairs et al to market our services
- Engage in direct marketing approach
- Encourage the use of Word of mouth marketing from loyal and satisfied clients
- Join local chambers of commerce and industry to market our product and services.
11. Publicity and Advertising Strategy
Jesse Black® Pedicab Services Company, Inc. is set to establish a standard for pedicab services business in Miami – Florida and throughout the United States which is why we will adopt and apply best practices to promote our business.
Good enough there is no hard and fast rule on how to advertise or promote a pedicab services business. The challenge is that most small and startups pedicab services companies do not have the required money to pump into publicity and advertising.
Here are the platforms we intend leveraging on to promote and advertise Jesse Black® Pedicab Services Company, Inc.;
- Encourage our loyal customers to help us use Word of Mouth mode of advertisement (referrals)
- Advertise our business in relevant magazines, local newspapers, local TV and radio stations
- Promote our business online via our official website
- List our business on local directories (yellow pages)
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, et al to promote our brand
- Install our Billboards in strategic locations in and around Florida
- Direct coupon mailing approach
- Engage in roadshow from time to time in target communities in and around Florida
- Distribute our fliers and handbills in target areas in and around Miami – Florida.
- Advertise our company in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members and drivers wear our branded shirts and all our pedicabs are well branded with our company’s color and logo et al.
12. Our Pricing Strategy
The prices charged for fares vary according to a number of factors such as the size of the pedicab, the number of passengers the distance of desired destination, and the popularity of a local event. Basically, a ride that would normally cost $30 can command three times as much.
Depending on the city and the event, rates can range from $60-$100 per hour. Other prices such as those of tours, remain relatively constant, with $60 being the average cost of a short sightseeing tour. In larger cities, owners can earn as much as much as $1,200 per month in advertising for each pedicab from other business owners.
In view of the above, our pricing system is going to be based on what is obtainable in the pedicab services line of business, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than our competitors are offering in the United States of America.
Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us or when they pay in advance for upward of 3 months.
- Payment Options
The payment policy adopted by Jesse Black® Pedicab Services Company, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Jesse Black® Pedicab Services Company, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
In view of the above, we have chosen banking platforms that will enable our client make payment for our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
Depending on the picture you have in mind, a pedicab business can be started with a relatively small investment, whether the pedicab is leased or purchased. A new pedicab costs between $3200 and $4000, depending on the number of additional features.
For example, a canopy for rain protection costs about $750, a cargo cache about $80, and lights about $20.00. However, this is what it would cost us to set up Jesse Black® Pedicab Services Company, Inc. in the United of America;
- The total fee for registering the Business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits – $1,500.
- Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The cost for hiring Business Consultant (business plan inclusive) – $2,500.
- Insurance (general liability, car insurance, workers’ compensation and property casualty) coverage at a total premium – $5,800.
- The cost of accounting software, CRM software and Payroll Software – $3,000
- The cost for leasing standard office facility with enough parking- $30,000.
- The cost for facility remodeling – $5,000.
- Other start-up expenses including stationery – $1000
- Amount needed for phone and utility deposits – $3,500
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for Start-up inventory (fueling, car tracking devices and accessories) – $10,000
- The total cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Credit card machine, POS, tables and chairs et al): $4,000.
- The cost of Launching a Website: $600
- The total cost for financing the acquisition of the first set of pedicabs – $100,000
- The cost for our grand opening party: $2,000
- Miscellaneous: $1,000
We would need an estimate of three hundred and fifty thousand dollars ($350,000) to successfully launch our pedicab services business in Miami – Florida.
Generating Funds/Startup Capital for Jesse Black® Pedicab Services Company, Inc.
Jesse Black® Pedicab Services Company, Inc. is owned and managed by Jesse Black and his friend and business partner, Jude Williams. They are the sole financiers of the business which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $250,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Jesse Black® Pedicab Services Company, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to offer our services a little bit cheaper than what is obtainable in the open market.
We are prepared to survive on a low – level profits margin for a short period of time. Jesse Black® Pedicab Services Company, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of.
Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Acquiring facility with enough parking lots and remodeling the facility: In Progress
- Acquiring of first set of pedicabs: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed office furniture and equipment, car trackers et al: In progress
- Creating Official Website for the Company: Completed
- Creating Awareness for the business both online and in the neighborhood: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party/launching party planning: In Progress
- Establishing business relationship with key stakeholders in the industry et al: In Progress.