NatWest - Helpful Banking

How I did it - transport

The Flying Boot Taxi
In 2009, Bruce Induni started his one-man taxi firm, The Flying Boot, specialising in taking walkers to and from the start of their routes in the Dorset countryside.

‘I’m a keen walker and the idea for The Flying Boot came to me a couple of years ago, when I was walking with my wife. Many routes in Dorset are linear, so there’s always a problem for ramblers about how to get back to their starting point. I’d run a business in the 1980s, so I knew I was competent with the financial admin of doing my accounts and cashflow projections. I took my business plan to the business advisor at my bank and was granted a loan to launch my idea. As well as my past experience, one of the reasons I secured funding was my business USP and local knowledge – I can give my clients a good experience, as I know all the local walking routes and the best pubs to stop off in for lunch on the way.

‘Taxi driving is a single-asset business, and that’s your car. The Flying Boot needs a larger than average car because of the walking equipment people carry. I spent £19,000 on buying the right vehicle and around £600 on licenses and registration. The AA reckons it costs 50p per mile to run a car, which includes variable costs like fuel, tyres and insurance. I’ve decided to charge my customers £1 per mile, to factor in depreciation on my vehicle and my profit margin. This is less than the local authority rate set for taxis on the meter, but I had to be aware of local market rates. And my charges do include a premium for the specialist service I offer. To pay myself £25,000 to £30,000 per year, I need to work around 30 to 40 hours per week, although I have to factor in that the business is seasonal – there are far more walkers in the summer than the winter months.

‘Marketing my business is an ongoing job. I’ve established relationships with local B&Bs and advertised on websites. By far the most important relationship I have, though, is with my local garage. I could have bought my car cheaper out of the area, but part of my deal was that they would offer me prompt repairs and services for my car. When you’re working in the transport sector, the backup you have for your vehicle is of primary importance.’

Moving etc.
Jane Finch is an independent consultant to the removal industry and founder of Moving Etc. Her previous experience includes running domestic, office and multinational removals firms.

‘Moving Etc. offers a recommendation and networking service to professional movers registered with a trade association, as well as providing advice for people moving home on how to organise their move and the best company for the job. From my 20 years’ experience in the removals sector, and the comments of removers on the Moving Etc. network, I would say that these are the basic set-up and running costs for anyone starting a removals firm’:

• Operator’s Licence for a heavy goods vehicle (training, purchase, time and fuel): £1,500
• Operator’s Licence funding requirement (the sum required as cash savings before you will be granted a licence): £8,000
• Vehicle (basic removal van): £3,000
• Kit and packing materials: £400
• Parking/garaging: £100 per month
• Goods in Transit, Public Liability and Employers’ Insurances: £250 per month
• Freephone phone number and call forwarding: £60 per month
• Website, PC and broadband: £600
• Marketing material/business cards: £150
• Advertising: £1,500
• Tax and contingency fund for vehicle: £1,000
• Preventative Maintenance Inspection: £150
• Accountancy fees for setting up and registering the company: £250
• Bank account deposit: £100.