Luxury Coach & Transportation

March 2015

Magazine for the professional limousine, charter and tour industry.

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LIMOUSINE, CHARTER & TOUR MARCH 2015 61 Read It Here First Access Industry News, Company Announcements, Laws/Regulations, Vehicle Updates and more FREE Weekly E-Newsletter Join us at www.lctmag.com/newsletter Northland Insurance: Working with you and for you. Our customers know their Northland team is working to protect their business. Northland brings public transportation expertise from dedicated underwriting to knowledgeable and experienced risk control and claim specialists – all working with you to reduce loss, increase safety and minimize claims. That's the Northland Advantage. To learn more, call your agent or broker, or visit us online at northlandins.com. © 2015 The Travelers Indemnity Company. All rights reserved. M-16990 Rev.11-14 Growth Spurts Rose's business philosophy has been to grow slow and steady. "We have always been a tortoise rather than a hare. I think it's worse to grow too fast than too slow. Here's an example: I had the opportunity early on when I had three cars to take on a big account, but I turned it down because I knew I was not ready to handle it. I real- ized if I took the contract and performed poorly, I'd never get another chance." Rose notes that because contracts are renewed every two years or so, there is opportunity when you are ready to take on larger accounts. Being prepared to take on new accounts is important. How- ever, he cautions eager operators not to get into a situation where they rely on just one or two big accounts that total 40% to 50% of your business. "That's dangerous because if you ramp up to handle one or two new big accounts and they go away or downsize you, that's big trouble," he says. "My reve- nue is made up of all 5% to 6% accounts, so we are not highly concentrated on a few big accounts, so there is lower fnan- cial risk if an account leaves." But there are times when you have to invest although you may not see the re- turn on investment for two years, Assolin cautions. "For example, we just added a 40-passenger Grech bus — the largest purchase in the history of the company. It doesn't make a proft yet, but we know it eventually will. It's the same when we opened an offce in Austin (ranked one of the fastest growing cities in the U.S.) Al- though it put a strain on our fnances, it's now paying off. My point is that you can't always expect an overnight ROI when you are trying to grow your business." — Tom@LCTmag.com CHAUFFEURED FLEETS 1. Small fleet operators (1-10 veh) ......... 65% 2. Medium fleet operators (11-50 veh) ...31% 3. Large fleet operators (51+ veh) ........... 4% MEDIAN FLEET COUNTS Small ........................................ 5 Vehicles Medium ................................. 23 Vehicles Large ..................................... 87 Vehicles Industry Median .....................10 Vehicles 1 2 3

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