Starting a Minibus Service Company

28 Aug

Starting a Minibus Service Company

Starting a minibus service  company, whether to provide touring services or car hire services, requires a solid plan. Starting this business can be a huge challenge, while staying afloat in the business is much harder. Unless you have taken time to study the market and known it well, you might end up losing all your investment. Therefore, before you make the final decision to put down money for a few minibuses, let us look at what to consider.

Have a Business Plan

Create a business plan that you will use to assess the progress of your business. The plan will have your mission and vision, strategies and a budget. This will help you operate the business efficiently and make sure it achieves its intended outcome.

Know Your Objective

Your aim for starting the business should be top on the list when considering the main factors to consider. For instance, are you starting the business because you have identified a gap in the market or you have an idea of a contract that is coming to an end soon? To succeed in the minibus hire business, you need to make sure you have enough business to cover expenses and keep the business running.

Make contact with institutions and businesses in your neighborhood that will need your services. Let them know that you plan to start a minibus company and gauge their reaction.

Before you hit the road to get the licenses you need, make sure you know the rates charged by your would-be competitors so that you understand when you will break even. This is vital especially when you plan to use credit facilities to start and run your business.

Acquire the Right License

This is where it might get a little tricky. For starters, you need a business license to run the company. Make sure you understand what you need for the specific region you are establishing a company in.

The next hurdle is to make sure you (or all your drivers) have a valid driving license. A minibus is a passenger-carrying vehicle that has a minimum capacity of 9 passengers and a maximum of 16 passengers (including the driver). Regulations require that the person who will be driving the minibus has a special license, which might require an additional driving test(s).

You also require a special license if you are planning to charge customers for the ride. This might mean additional tests for you as well to justify the safety of passengers.

Apart from the insurance, make sure you secure all the legal documents necessary for a smooth running of the business. These documents also help you increase your credibility.

Know Your Insurance Needs

This isn’t an optional item – it is important that you the driver, the passengers and any other road user s fully covered in case of an accident or incident.

Should you go for a regular insurance cover for your minibus? No, don’t. This is because the standard policy can only cover 9 passengers, yet a minibus carries between 9 and 16 passengers. The type of insurance you opt for is dictated by what you plan to use the minibus for. In this case, you have to choose commercial insurance.

You need to spend some time analyzing available packages so that you get the right cover for your minibuses. Before you make the final decision, make sure you read the “small print” of each insurance policy. Understand what the policy covers and what it doesn’t.

Know Where to Get the Minibuses

Before you launch the business, you MUST have a few minibuses that will do the work. One of the ways to get these is by buying new minibuses. However, this can be expensive when you are just starting out, or when you have a limited budget. The best option in such a case is to go for used minibuses. These cost a fraction of the amount you will pay for a new bus, leaving you enough to use on other vital business needs. One of the best places to start your search for used vehicles in this category is to check out MiniBuses, a company specializing in used minibuses.


Starting a minibus company can be beneficial only if you have identified a need for the services. Once you do this, you stand to reap big from the services you will offer. Follow the tips outlined above to make sure you get a reasonable return on your investment. Make sure you have the right licenses, suitable insurance cover and know where to get the minibuses you need.