1. Insure Your Vehicle

This is critical and most financiers will insist on your vehicle being insured, but even if they do not this is a critical factor in ensuring that your business is able to survive any major setbacks. Taxis are exposed to the risks of the road more than almost any vehicle and as a result, are far more likely to be involved in an accident.

When this happens your vehicle will be out of business for several weeks whilst it is being repaired, having a good insurance policy and making sure that you contact the insurer immediately and get the paperwork carried out immediately will significantly reduce the time that your vehicle is not working and earning you an income.

Having no insurance may mean that you are completely unable to repair your vehicle or that you have to use substandard repairers and parts which will mean that your vehicle is not only unsafe but is unreliable thus further impacting on your ability to make a living.

2. Service Your Vehicle

Taxis are amongst the hardest working vehicles on the road and as a result they need constant repairs and maintenance. Ensuring that this is done regularly and in a planned manner will ensure that your vehicle is always able to work when you need it to be operational.

A lack of regular and planned maintenance means that;

• Your vehicle will tend to break down at inconvenient times meaning that you miss out on good business opportunities
• The repairs are often far more extensive and expensive when there is a breakdown compared to the cost of regular servicing
• Always use competent and approved service providers to ensure that you get good, competent service and a guarantee for the work done.

3. Keep your Paperwork Available

The traffic police are being far more diligent in policing the taxi industry and as a result will often hold road blocks to check that all taxis in a particular area are working legitimately.

If you have all of your paperwork up to date and with you, these roadblocks will be an inconvenience rather than several hours of not being able to operate your business.

4. Pay Your Fines

Again with the traffic authorities being so diligent, many operators lose several days of being able to work as their vehicles are impounded for outstanding fines, if these are paid or even better, not incurred in the first place, your business is in a far  better place to make you a decent living.

5. Budget & Keep Records

Make sure you understand what your monthly expenses are so that no money is wasted on paying for non essential costs. The best way to do this is to develop a simple budget that estimates the amount of money you will earn each week as well as indicating what your expected essential costs will be.

• Your weekly income is the fee you charge per commuter multiplied by the number of commuters you transport each week.
• Costs will include;
  • Fuel & Oil
  • Rank fees
  • Wages that you owe your driver and conductor
  • A provision for replacing tyres and repairs (this money should be saved so that when you need to replace tyres or repair your vehicle you are able to do so)

Keep track of all your business expenditure each week and compare them to your budget, this will allow you to understand if you are making as much money as you thought and if not where the problem is. This then allows you to try to fix the problem, either by increasing your income or managing costs better.

6. Protect Your Business

Make sure that your vehicle is fitted with a reputable car tracking system and test it regularly to ensure that it is working properly. Without your taxi you have no business so ensure that you are protecting it effectively.

A good reputable vehicle tracking system is essential to do this as they are the only people that are able to respond quickly and effectively enough to protect and recover your vehicle.

7. What to Do if You Are Unable to Service Your Debt

If you find that you are in a position where you are unable to meet your debt commitments the best course of action is to approach your financier first to try to resolve the issue.

In many cases the financier will allow you to surrender your vehicle on a voluntary basis – generally they will then stop charging interest on the loan and will sell the vehicle as quickly as possible. The amount realised from the sale of the vehicle will be offset against your loan but you will remain liable for any shortfall.

Be very cautious when approached by Debt Councillors or Debt Review Agents, some of these people sell their services by telling you that they will reduce your monthly repayments. The problem is that a portion of your new repayment goes to the agent and the financier gets far less than you contracted to pay them.

Should you be successful in getting protection under debt review you will no longer be able to obtain credit for the foreseeable future, this will impact very seriously on your businesses ability to prosper.