Home – New Forums Starting your journey opinions about my business idea

  • This topic is empty.
Viewing 9 posts - 1 through 9 (of 9 total)
  • Author
    Posts
  • #990638
    lilmis
    Participant
    • Total posts: 20
    Up
    0
    ::

    Hello friends

    I have a business idea that I would like you to consider. I’m not in any planning stages yet, if i decided to do ahead, i may try to arrange some surveys and more research, but I do think it would be successful.

    What’s one thing that we will always keep having? Children. And one thing that we seem to run out of? Time.

    When I was in year 7, my parents didn’t have enough time to drop me off at school & pick me up. But they also didn’t want me catching public transport on my own, not yet anyway. So like some schools, they offered a private bus service.

    I have been researching and to my surprise, not many schools offer this. So my idea is to offer just that, but on a small scale, well to start off anyway and see how it goes.

    One of my main talents and passion is organising and planning and this would require a lot of that.

    Main expenses: A 12 seater mini van. Business start up. Lots on insurance. police, children’s check ect. Ongoing costs e.g. petrol, insurance, rego.

    How it would work. Get support from the ‘chosen’ school’, although the service isn’t through the school, we would need a good relationship. All i would need is 12 children that require to be picked up and taken to school and then home again. Set daily route with pick up times.Full door to door service. Providing parents with security and relief. Pay e.g. per term, it’s an ongoing planned service. price e.g. $10 per pick up. So if they need to go to school and home again, it’s $20 a day. imagine 10 kids X $20 per day, daily $200 X 5 days $1000. Deduct all the expense and tax, still not bad for part time hours.

    Thats just a rough description. BUT would you, or anyone you know would consider using the service? For $100 per week, her child gets full door to door service and it’s safe.

    Thankyou in advance.

    #1177927
    LucasArthur
    Participant
    • Total posts: 3,171
    Up
    0
    ::

    Hi {insert name here}

    Glad you jumped into forums, even before ready to proceed…

    Not having direct input of the costs and clarifying if i would pay those fees i do however wish to play devils advocate…. if that is ok?

    Only doing this as i must be missing something in the outline and cant see where the profit would come from. Allow me to explain.

    Lets do the sums for profit: 12 kids @ $100 per week is revenue of $1200 making it annually $62,400. This sum looks nice based on maybe 2 – 3 hours per day of work..

    However, you may also want to consider below:
    – 14 Seater Van (cant find 12 seat) cost for new Toyota is approx $60k – if lease this vehicle at moderate rate 6% over 5 years with 30% residual ($18k) you will be paying back a little over $200 per week
    – Then there will be insurance approx $1500+ for vehicle ($30 per week)
    – Then there will be business insurance and public liability as you have children in your care – would hazard a guess of between $2500-$4000 per annum (lets say $50 per week)
    – Petrol/Diesel – lets say 12 kids within 5km radius of school maybe 10ks each way per day so approx 30ks per day x 5 = 150k per week – say 20-30 litres diesel per week @ $1.6 per litre approx $50 per week diesel
    – Registration on vehicle approx $1k per annum ($20 per week)

    Above figures have a cost of approx $350 per week before wages. This leaves a $650 amount that isnt bad for 10 hours a week i guess, although you will need to note that i have not included costs for servicing, accidents, infringements, parking, etc etc and any unforseen costs i am not familiar with in this line of work.

    Some other fees may be working with Children requirements and licensing (police checks and so forth) for each person working with the kids – drivers etc as well as any regulatory licensing that you may need to undertake to be able to work with children in this manner and drive them around – not sure if this is a requirement though :)

    I know this reads as negative, although to be honest i re read what i have written and it really highlights that you may need to look at other opportunities that could be developed to ensure profit is higher than initially projected.. Some ideas may be as below:
    – have a tiered drop off time.. So instead of just having 1 drop off and pick up, maybe you could schedule 2 in the mornings and 2 in the afternoons. This will double your revenue with little effort. In doing this, in the mornings you may start with the furtherest kids picked up first and closer second (to reduce time disruption) and in the afternoons drop the closest off first and the further away second.
    – Offer services to senior clubs for excursions during school hours
    – Do work with adults on weekends for parties or driving services such as shopping tours etc if this is an option

    The reason i say look for other revenue opportunities is that you have a fixed amount of expenses that will eat into a fair bit of your revenues that will maintain a constant whether you do the same or more work – just a way to maximise revenues, maybe. Although i am no expert.. These fixed costs are things such as insurance, rego, etc

    Again, awesome thoughts and initial post..

    Hope others pop along with thought provoking input for you as well.

    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1177928
    bb1
    Participant
    • Total posts: 4,485
    Up
    0
    ::

    Jason,

    i read it earlier in the night and had the same thought, that the costs would outweigh the benefits. But the other little issue I saw was that you would have a couple of hours work in the morning than nothing until 3 in the arvo. So you idea of additional work would work.

    BUT, having said that there is a company in the area here that does exactly that a few parents have gotten together and organised a private (X seater) bus to do that exact thing. I dont know the full details but by what I gather they offer the service to go to a hand full of school down the hill, and my understanding when it started about 2 or 3 years ago it was a goer. Not sure if it is still running or the cost to parents. Admittedly it was in an area where not every school (mainly private) had buses running up the hill, so it took the hassle away from the parents to do pickups and dropoffs. In my situation, I had to get my child up the hill, when the bus was coming down, and Vica versa, so never really looked into it. Also I know they do run other charters during the day, which i am guessing covers the costs

    #1177929
    ThexArm
    Member
    • Total posts: 253
    Up
    0
    ::

    Not a bad idea. But you will need to get a school bus permit or something like that. It is very similar to Taxi permit since you are transporting public.

    I would do little bit more research into hiring contractors to do that picking up and dropping. When I say contractors, people who already own these buses so that it would be extra income for them and less upfront cost for you. That way you can scale your business. Only issues would be how they could accommodate this service between theirs?

    #1177930
    Craig.Smith
    Member
    • Total posts: 167
    Up
    0
    ::

    Althought it’s a good idea, I don’t think it would be financially viable. There is obviously alot of money involved in setting up and running a business, not to mention the vehicle cost, licensing and maintenance. You will also very limited to 2 x half hour windows when kids can be dropped off or picked up. I would say in most cases you would only ever be able to fit in one pickup run to get 10 kids and get them to school in the 30min window. In order for it to work, you would need to be utilising that vehicle for a full day everyday.

    #1177931
    MD Clean
    Participant
    • Total posts: 308
    Up
    0
    ::

    Sounds like a bus company.

    There are many just like it in rural areas so you should be able to talk to some people already in this field and find out if your state govt has a program to subsidise parents as the cost is probably too high @ $20 per day (you obviously need to be set up in an affluent area for parents who see value in the security aspect to also have the $$$).

    Go on some mums forums or do a facebook/ad coupled with a test web page to gauge interest.

    Accreditation will be a huge but not insurmountable hurdle.

    For costs – bigger bus – think minimum 20 seaters but perhaps even 32.

    Keep going with the idea – fill it out.

    Love to hear of your progress.

    #1177932
    Anonymous
    Guest
    • Total posts: 11,464
    Up
    0
    ::

    Hi lilmis,

    Welcome to the forum :)

    I hope the feedback from our community here has given you some food for thought.

    Please keep us up to date as your research progresses – we’ll all be interested to keep up to date with what’s going on with this interesting idea.

    Best of luck with it,
    Jayne

    #1177933
    lilmis
    Participant
    • Total posts: 20
    Up
    0
    ::

    Hello. Thankyou everyone that has replied so far. i appreciate your time and comments and am open to constructive criticism.

    I suppose that business would be more of a small transport business. The school pick up/drop off would be just to start it out. rome wasn’t built in a day haha. i have many other ideas i could use the bus for, airport pick ups, elderly pick ups ect…i guess i would need to start off small, so the school service could start me off. i didn’t mention earlier, that if there was interest, as well as the one school bus service door to door. kids go to before and after school care, if there was interest I could offer a small service from home to before school care as an example. Do that run first early morning, then second run for those going straight to school.
    Like i said, the mini van wouldn’t be just to provide that service, but need to start with something.

    It may all end up being too costly, predominately the cost of a new 12/14 seater van. I will do extenuative research into the costs for everything and gather information about weather the service is needed. And if a school that don’t provide their own bus service, be supportive of a private business providing that service.

    thanks again.

    #1177934
    MyGreatIdea
    Member
    • Total posts: 2,278
    Up
    0
    ::

    Perhaps you could budget to use your own car for the first say, three months? See how the figures stack up with that.

    Personally, if I had 2 kids in primary school there’s no way I’d pay $200 a week for someone to do the school run. I’d be looking at car pooling instead if I couldn’t do it myself. Also, consider that the mothers living in the affluent areas who could afford this cost, possibly aren’t working themselves anyway?

    Sorry to sound negative, but I think research with your idea is the key to making it work !

    Wendy :)

Viewing 9 posts - 1 through 9 (of 9 total)
  • You must be logged in to reply to this topic.