Children's Transportation Business Background Info:
As a child transporter, you will be responsible for safely taking children to a number of different places.
A typical day may require you to pick up several small children and take them to preschool.
Later you may need to take children to little league soccer or baseball or to karate class or even a dentist appointment. The list can go on for some time.
This type of service is required for any activity that does not provide its own form of pick up and drop off. It is also a child centered alternative to public transportation or a taxi service.
Children Transportation Business Considerations:
You will need to consider several things that before starting your business. First, decide on the type and size of vehicle you will want to use. Mini-vans are easy to handle but limit the amount of children you can carry.
Small buses can carry many children but may require special licensing to operate. Next, consider your area. Heavily populated areas like inner cities give access to large amounts of children and shorter distances, however, you will have to deal with more traffic.
Finally, think about your staff. All future staff will need to have a clean driver's license and background check.
Tasks And Skills Needed:
Business Specific Tasks:
Whether you do all the work yourself, hire, or subcontract, here's a list of tasks that need to be attended to when operating a this type of business:
 Keep current on both business and vehicle licenses and insurances- Keep records for tax information
- Advertising/Marketing
- People Skills: Employees, Customers, Vendors, etc.
- Website maintenance and marketing
- Money management
- Accounting
- Invoicing
Industry Specific Tasks:
- Record all instances of pick up and drop off of children
- Work with parents to develop schedules
- Organize trips to accommodate clients
- Develop Excellent driving skills
- Develop Good Time management Skills
- CPR and other emergency or first aid courses
- Patience with children
- Ability to work under pressure (such as in a traffic jam with several noisy, screaming or crying children)
- Keep accurate logs of time and mileage
Approximate Daily Hours Needed:
General Hours of Operation: - This business has variable workday hours that usually coordinate with school hours.
Some children's transportation businesses also run all summer long taking children to camp and other activities.
Hours Needed to Prepare: - Plan to spend about an hour to two hours for trip planning, vehicle checks and log book entries.
Employees Needed To Run This Business:
During the start up phase, you can run this business single-handedly. Once Your Business is up and running successfully, you may need to hire the following:
- Assistant drivers
- Vehicle Maintenance
- Receptionist/Scheduler
Licenses:
 You will need a business license, Federal Employee Identification Number (EIN), insurance and possibly incorporation paperwork such as an LLC.
You will also need a clean driver's license and possibly a chauffeur's license and background check.
You will need insurance on your vehicle and possible commercial vehicle insurance and licenses as well.
Approximate Minimum Start up Cost:
The startup costs could range from around $1,000 USD to $30,000 USD depending on if you have the proper vehicle for your children's transportation service.
Necessary Equipment to Run this Business:
Necessary Start-Up Equipment & Supplies:
- Reliable and safe vehicle that meets all safety requirements
- Cell phone
- Maps and/or GPS unit
- Office Equipment Such as Computer and printer
Supplementary Equipment: - Equipment or helpful products that you can acquire to once your business is off and running:
- Additional vehicles, vans
- In-vehicle radio/dispatch communication equipment and service
- Handicap capable vehicles (if serving special need children)
Monthly Expenses To Consider:
- Fuel for vehicle(s)
- Vehicle maintenance
- Vehicle and liability Insurance
- Wages
- Phone/cell phone/dispatch service
- Internet access
- Advertising/Marketing
- Utilities
- Rent or Mortgage of office and parking lot
Special Requirements For This Business:
 Because of safety concerns today, some children's transportation services now offer photo identification services as part of their package. If you plan on requiring photo id's you will need to purchase a camera and the equipment necessary to encase the id so it lasts. - Secure liability insurance to cover your vehicles, your employees, and the children you will be transporting. Speak to your insurance agent about state requirements. Many states require liability insurance in the range of $500,000 to $1 million for transportation services.
- Screen and hire drivers. Conduct a thorough drug screening and background check for all employees when operating a child transportation business. Professional services are available for drug and background checks.
- Most states require you get fingerprint clearance if you are going to work with children. This allows for a background check to make sure you don't pose a threat to the welfare of kids. There may be other clearances and requirements that go along with this procedure. Make sure to check your local and state laws to see what they are. Usually fingerprinting can be done at your local police department or other agencies and businesses that provide this service.
Pros And Cons:
The Pros of Running a Children's Transportation Business:
- You offer a highly needed and appreciated service
 You have the advantage of being your own boss- Ideal if you have a love for children and/or children with special needs
- Ideal for at-home parents
- This business is completely expandable
The Cons of Running a Children's Transportation Business:
- You may drive in inclement weather
- Insurance can be high due to the nature of the business
- High energy children may be distracting
- There may be a higher-than-average risk of accident
Type of Customers You Need to Attract:
Households with two working parents or single parents. Organizations that sponsor after school activities such as soccer or karate may be interested in your service as well.
Children's Transportation Business Statistics:
According to a U.S. Department of Labor, survey 61% of mothers work. Furthermore, 71% of all single mothers work.
According to a survey done by Kids Cart, a children's transportation company in Oakland, CA, 61% of respondents said they used the service weekly.
Revenue:
This can vary depending on market and business plan. However, Merry-Go-Round, a transportation company in Maryland opened in 1991. By 1996, they operated eight vans and had an annual profit of about $250,000 USD
Resources:
Industry-Specific Websites:
Kids-Kab
Kids on Wheels
The Kid-Mover
Equipment and Supplies:
Tesco
Associations:
AAA Foundation
APTA
Businesses To Related to a Children's Transportation Business:
- Limousine driver
- Taxi driver
- School bus driver
- Shuttle service
See Also:
 Starting A Business Checklist: This section helps you cover all bases when you are getting in to your own business.
 Complete List of Business Ideas - A list of all our business ideas that you can use to stimulate your entrepreneurial spirit. Choose from over a hundred detailed pages.
|
