San Francisco Limo

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Limousine Taxi Business Plan

Management Summary

The management of the company is jointly undertaken by both owners. Both owners are well aware of the pit-falls of growing too fast and are now taking a more cautious approach to growth. Growth of the company up through the end of year 2001 will be handled by keeping the owners themselves as principle drivers. The projections have assumed peak production hours per month of 316 in 1999 increasing to 390 per month in 2001. This work load can be handled by each owner working 160 hrs per month (i.e. 40/week) with the remainder taken up by the present third driver. Since some time is necessary handling administrative and sales work, it is assumed that the third driver will gradually increase his driving hours to 40 per week in order to free up sufficient management time for non-production administrative/sales work. After year 2001 the management of the company will consider adding additional drivers and/or support staff to handle further growth.

6.1 Organizational Structure

The organizational structure is a simple one. The two owners are in constant contact during the day, and confer on all management and marketing decisions. One owner is primarily responsible for entering the accounts into the computer. The other owner handles the credit card aspects. Leased equipment has been obtained to facilitate the credit card activity and conversion to cash within a two to three day period. The third member takes his instructions from both owners. Each member has a two-meter unlimited use transmitter/receiver providing an effective communication link.

6.2 Personnel Plan

At the present time San Francisco Limo has three vehicles. Two are being driven full time by the two owners and the third part-time by a relative. The part-time driver, Brian, mainly handles the CATA contract--which requires approximately two hours per day. Growth in demand for San Francisco Limo's services cannot be met with the present arrangement. Growth will require Brian to work a full 40-hour week. Based on the assumptions made when projecting sales the following production hours (behind the wheel) will be necessary.  The following table shows the projected hours per month:

Market Sector199920002001
Airport Transfer150170180



The above production time will be met by the hired driver (Brian) working 40 hr/week for a total per month of 160 hours. The remainder (156 per month in 1999 up to 230 per month in year 2001) can be handled by each owner working a maximum of 30 hrs driving, with the remaining time spent handling administrative and marketing matters.

It is assumed that each owner will increase his salary, drawing up to $500 per week, beginning December 1999 and increasing to $650/wk and $800/wk as of June first in years 2000 and 2001 respectively. Brian's salary will remain $9/hr for 1999 increasing to $9.50 in 2000 and $10/hr in 2001. He will work 40 hrs per week beginning in September 1999, until which time he will work 25 hrs/week.

Personnel Plan
1999 2000 2001
Tim Politano $15,200 $28,200 $32,800
Peter Battinelli $15,200 $28,200 $32,800
Brian $12,960 $19,760 $20,800
Other $0 $0 $0
Total People 3 3 3
Total Payroll $43,360 $76,160 $86,400