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Our Business Idea

All discussions relating to Business Insurance and Business Finance

Our Business Idea

Postby Ruadhagan » Mon Sep 05, 2016 7:41 am

We got to Pistor Middle School and we are starting a new business. Our idea is to start a carpooling business that takes kids to certain destinations that their parents don't always have free time to take them. We are charging $10.00 for a ride to and from. We wanted to know if you could help us determine our profit and if you could give us some feedback.THANK YOU FOR YOUR TIME!

ANSWER: This is an interesting concept… What you have to keep in mind is that such a service has high liability issues.  Aside from the general business details such as break even analysis, marketing scope, SWOT analysis, Gas price fluctuation, etc… you have to make sure your lawyer drafts the proper contract legitimate for parents to read without having to ask excess questions.  In addition, the proper vehicle insurance and business insurance will have to be adequate(enough coverage to cover driver and passengers).  

Make sure your business plan includes all details so you won’t question your every move.

---------- FOLLOW-UP ----------

we don't have a lawyer because we are in middle school but we are working with Eller college in Tucson, Arizona so what do you suppose we ask them? also we are student entrepreneurs.
Ruadhagan
 
Posts: 58
Joined: Fri Jan 03, 2014 5:37 pm

Our Business Idea

Postby Usbeorn » Mon Sep 05, 2016 11:58 am

We got to Pistor Middle School and we are starting a new business. Our idea is to start a carpooling business that takes kids to certain destinations that their parents don't always have free time to take them. We are charging $10.00 for a ride to and from. We wanted to know if you could help us determine our profit and if you could give us some feedback.THANK YOU FOR YOUR TIME!

ANSWER: This is an interesting concept… What you have to keep in mind is that such a service has high liability issues.  Aside from the general business details such as break even analysis, marketing scope, SWOT analysis, Gas price fluctuation, etc… you have to make sure your lawyer drafts the proper contract legitimate for parents to read without having to ask excess questions.  In addition, the proper vehicle insurance and business insurance will have to be adequate(enough coverage to cover driver and passengers).  

Make sure your business plan includes all details so you won’t question your every move.

---------- FOLLOW-UP ----------

we don't have a lawyer because we are in middle school but we are working with Eller college in Tucson, Arizona so what do you suppose we ask them? also we are student entrepreneurs.
Usbeorn
 
Posts: 59
Joined: Wed Jan 29, 2014 8:18 pm

Our Business Idea

Postby Earvin » Mon Sep 19, 2016 3:17 pm

Without going to far into detail and deviating from the overall concept of owning a business, such a business involves a lot of research and all details should be concrete creating a basis on your business plan.  Point is, and what will be important in such a business is making sure all your basis are covered.ie... such as who will be responsible if suit is brought against the business entity?, who will handle the books?, who will provide the vehicle?, who will be paying the upfront capital?(gas costs, promtions, etc.?, is this business a branch of another business?, or will this business be an entity of its own?, what type of entity...i.e. corporation, sole proprietor, etc., will this business be registered under an FEIN, will this business, have employees, how will payments be recieved, who will handle the business contracts...ie. weekly contracts for carpooling, monthly contracts for carpooling,  just to give you an overall idea.  There are many more questions that come to mind.  

Having been in business for so many years, I have learned that even the smallest detail is crucial to be successful.

Hope this helps.  
Earvin
 
Posts: 45
Joined: Mon Mar 17, 2014 2:52 am


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