Showing posts with label 2016 at 02:37PM. Show all posts
Showing posts with label 2016 at 02:37PM. Show all posts

Friday, November 18, 2016

You Can’t Go Solo When Leading A Business

<p>Adam and Jay Erlich, COO and CEO of Europe Limousine Service</p>PARAMUS, N.J. — Brothers Jay and Adam Erlich understand how you need to distinguish your operations to stay ahead of the Ubers and Lyfts of the world. Jay, CEO of Europe Limousine Service, and COO Adam, grew up working for their parents’ company and carried on the old school values that set apart luxury transportation services. However, they’ve also applied a lot of what they’ve learned as they’ve grown, and listened to what clients crave.

Independent M.O.

Europe Limousine Service runs on a different model than what many companies are allowed to do in other states; they use independent contractors as chauffeurs.

“It’s a highly regulated, popular model in New York City, and it’s one of the last markets that are really booming with it,” Adam says. It’s becoming increasingly popular because operators don’t want the overhead of owning the vehicles, say peers they’ve spoken to.”

But it’s certainly not as easy as one would think. “To make it successful, you have to be on top of the details,” Adam says. Their chauffeur manager, Sam Drobachesky, has been in the industry for 30 years and helps them ensure everyone is on task. Jay says Drobachesky and his team are on the road three days a week conducting random spot checks, and in the office for two.

“This puts the drivers into the mindset of, ‘They are going to see me, so I better be dressed well, and my car better be clean and contain magazines, candy, and water,’” Jay says. If someone is running low on supplies, they want to be there to assist them.

“We are a very chauffeur friendly company,” Adam says. “Our father was a chauffeur, so he understands their plight — the long hours, sitting in traffic, etc.”

While this may seem like an unfamiliar way of running a luxury fleet business, there are some similarities. “A lot of our peers in the industry who own vehicles, their chauffeurs keep the cars, and take them home, so they don’t see them on an everyday basis either,” Adam says.

Their chauffeurs are licensed by the New York City Taxi & Limousine Commission (TLC), which has strict rules and regulations. They must pass multiple tests just to obtain their TLC diamond sticker, and then come into the office and take a written test and drug test. The TLC inspects them every four months. “It’s kind of like an employee model, but a lot of the work gets done by the city,” Jay says.

<p>Eli and Dorlee Cook, Jay and Adam&rsquo;s mother and stepfather</p>Parental Guidance

The company opened in 1992, when Dorlee and Eli Cook, Jay and Adam’s mother and stepfather, decided it was time to branch out on their own. Eli emigrated to America from Israel, worked as a chauffeur for quite a few years, and was eventually told by clients they wanted to have him drive them privately. He started the business out of his house with one phone; he drove while Dorlee, Jay, and Adam served as the reservations and dispatch team. “We grew through customer service and my dad being the face of the company for a long time,” Jay says.

Jay started answering phones and doing billing at age 9, learned the proper procedures of the business, and worked at the company through high school. The family moved into an office building about eight years ago, and when Jay graduated college he decided he wanted to stay in the industry. He started from the bottom, and about a year into working as a reservation and billing agent, he took over as general manager for the company.

Never one to let “good enough” be good enough, Jay spoke with clients often and learned they had to start adapting to a more modern way of doing business. He remembers his stepfather saying, “In the first year, we’ll find out if you’re going to sink or swim.” Within eight months of being promoted to manager, Jay called on Adam to come help him out.

“Although the titles may seem different, we are on the same level in the business and we run it together. It’s amazing how we are versatile in different ways; we are very yin and yang. We never fight, and everything we do is very hand in hand,” Jay says. Adam is the more tech-minded of the two. Together, they’ve grown the business into five times the size it was when they first started.

Not Knowing It All

Something that helped Jay and Adam grow the business is attending trade shows. In the beginning, they didn’t have many industry connections, but as they went to more of them, they began to apply a lot of what they learned to their company.

“They are so important to us and the industry; not just because of the education sessions, but having the opportunity to learn from your peers,” Jay says. “I took a lot of what I’ve learned from the tradeshows and intertwined different aspects from different operators into our business.”

Through trial and error, they found the niche that worked for them. For example, Jay says when he learns something about dispatch operations from four or five other providers, he’ll adopt their methods and then his dispatchers will give him feedback. “We have an open forum here. If someone feels like we should do something better, I’m not going to ask them to keep it to themselves. I want to hear about it. It’s a lot about adopting strategies from other companies; that’s how you should build your business. No one knows everything.”

Another thing Jay’s learned is how much faith you must place in your staff. “You can’t do everything and micromanage, because you won’t succeed in this business,” he says. “You’ll drive yourself crazy, and you won’t have any time to grow your business. You’ll be stuck dispatching and taking reservations for the rest of your life.”

He believes listening to those around you will be much more beneficial.

Service & Sharing

When it comes to customer service, you can’t have an “I’ll get to it later” mentality; if you have an issue, you need to handle it on the spot. “If you are informed of an incident, you should be calling within three minutes to the client reaching out to ask multiple times how you can fix it,” Jay says.

No one is 100% perfect. Communication with your clients will save you from receiving complaints after the fact. This is especially important if you decide to change the way you run a part of your operation. “If you have new technology or something new you are introducing, call your clients and let them know the capabilities you now have. You don’t want to stay stagnant; you should be ever-changing.”

One thing’s for sure — Jay and Adam love the industry and want to help others become just as successful as they have been. “We care very much about the industry and where it’s going,” Jay says. “There are some really great leaders in our industry who have mentored and taught us a lot. They helped us whenever we had questions, and we want to do the same for smaller operators.”

If you ever see them on the trade show floor, they urge you to come up to them and ask questions.

Keywords

employee vs independent contractor   family businesses   LCTFast40   limo tradeshows   managing chauffeurs   Millennials   New Jersey operators   New York operators   New York Taxi & Limousine Commission   WebXclusive   

 

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Thanksgiving Event Goes On Despite Founder’s Death

<p><a href="http://ift.tt/2g4RgbR">Inglewood Mayor James Butts speaks Nov. 14 at the funeral for E.J. Jackson, the founder of Jackson Limousine, who has provided Thanksgiving dinners for the needy in South Los Angeles for the last 34 years. Despite Jackson&rsquo;s death Nov. 1, the limousine company and the EJ Jackson Foundation will continue providing meals to needy families. (Photo by Tyrone Cole)</a></p>SOUTH LOS ANGELES — Colleagues, friends, and family are still mourning the Nov. 1 death of Jackson Limousine founder E.J. Jackson, even as they prepare for his annual Thanksgiving grocery giveaway.

“Mr. Jackson was all heart. He never gave up on anyone,” said retired employee and family friend, Charlie Jamm. “He helped [many] that were unemployable, and he never stopped believing in them.”

That big heart extended to the homeless and hungry, whom he fed every Thanksgiving through his E.J. Jackson Foundation. Friends say Jackson seemed to have prepared the organization for his death, so that his staff could continue distributing more than 12,000 meals to families in need, days after his funeral. His goal this year was to provide 20,000 meals.

Los Angeles Wave article here

Keywords

California operators   charity   death   holiday   

 

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Questioning The Gig Economy’s Effects On Society

<p><a href="http://ift.tt/1QXlpow">Photo via PEXELS user&nbsp;</a><br /><a href="http://ift.tt/1QXlpow">J&Eacute;SHOOTS</a></p>Whether you call it the gig economy or the Uber economy, they both mean the same thing: Freelance, on-demand workers. Nearly 27% of American workers are self-employed or do temporary work.

Free market purists point to the Uber economy as the kind of entrepreneurial innovation we need to rebuild the middle class. But most gig economy workers are merely supplementing full-time work, and critics say it’s a poor replacement for genuine, well-payed jobs.

M Live article here

Keywords

Department of Labor   DOL issues. Department of Labor   gig economy   labor laws   Lyft   research and trends   TNCs   Uber   

 

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U.S. Senator Drives For Uber To Hear What People Think

<p>Sen. Ben Sasse, R-Nebraska (Wikipedia Commons photo)</p>LINCOLN, Nebraska — GOP Senator Ben Sasse, who made headlines earlier this year for refusing to endorse Donald Trump, says the gig is a way to connect with constituents and learn more about the changing economy.

Sasse, who already has a five-star rating with Uber, took to Twitter to share tips about his experience with the ride-hailing firm. 

CNBC article here

Related The Hill article: GOP Senator Moonlights As Uber Driver

Keywords

industry politics   Nebraska operators   TNCs   Uber   

 

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GroundLink Launches On-Demand Service In Chicago

NEW YORK — GroundLink, a global, tech-enabled black car service in major cities worldwide, has launched its Ride Now app-based service in Chicago. The service offers rides within as little as five minutes of making the request.

For Ride Now service, customers simply open GroundLink’s mobile app, select the location where they would like to be picked up, and then select Ride Now as the time they would like the ride. Once booked, the customer can watch in real-time as the driver heads to the location.

To encourage Chicago residents, and travelers to the “Windy City,” the ability to try GroundLink’s Ride Now option, GroundLink is offering a 20% discount on all Ride Now rides booked from now through Dec. 31. Ride Now runs can only be booked via GroundLink’s mobile app. Once rides are in progress, customers can track their cars and communicate directly with their drivers.

For customers who want an advanced reservation, whether to and from the airport or for a meeting, the company also offers scheduled service in Chicago. The lead-time for this service, which previously had been upwards of two hours, has now been reduced to 20 minutes or less. Additionally, GroundLink has updated its pricing model which translates into lower rates for shorter distance rides and better pricing to and from the airport.

“Our customers are frequent travelers and they stressed to us how important Chicago was as a destination and business market for them,” said Liz Carisone, CEO of GroundLink.

“Therefore, it was imperative we continue to expand our Chicago operations as we are committed to providing Chicagoans and travelers coming to the city with more options for both scheduled and near-demand services. It was also important for us to adjust our pricing to make it more competitive to what is being offered by ride-hailing providers and much more attractive than costlier traditional limo companies. However, no matter what the price point, we will never sacrifice the safety and security of our customers.”

About GroundLink
GroundLink offers a multiple booking platform for its consumer and corporate clients that includes its website.

Information: www.groundlink.com; (855) 463-7150; on Twitter @GroundLink; on http://ift.tt/1EuXhDv.

Source: GroundLink press release

Keywords

apps   Chicago operators   GroundLink   mobile technology   on-demand service   vehicle apps   

 

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Criminal Record? No Problem. Uber Wants You

<p><a href="http://ift.tt/2fNvXsj">Photo via Wikimedia Commons user Abu Badali&nbsp;</a></p>Uber Will Accept Drivers In Connecticut With Minor Criminal Records: Uber’s change in policy, which goes into effect early next year, will allow people with convictions for nonviolent misdemeanor offenses such as passing a bad check, resisting arrest, petty theft, prostitution, harassment, and causing minor property damage to drive for the company. Hartford Courant article here

Uber, Lyft Fight Fingerprint Checks For Drivers In Maryland: Under a state law passed in 2015, the companies are required to begin background checking drivers Dec. 15 using the fingerprint database maintained by the state and the FBI, unless they prove their approach is equally effective. Both companies filed separate petitions with the state Public Service Commission, which regulates transportation network companies, for permission to continue doing background checks their way. The Baltimore Sun article here

Fake Uber Driver In Maserati Accused Of Sexually Assaulting Teen: On the way to a destination in Mira Mesa, the driver is suspected of reaching into the male passenger’s pants, grabbing him in a sexually inappropriate manner, and soliciting him for sex, police said. San Diego Union-Tribune article here

<p><a href="http://ift.tt/2g4JqPA">Photo via FOX 4</a></p>Dallas Woman Says Lyft Driver Threatened, Harassed Her: The woman says she asked the Lyft driver to pull over and let her out, but he refused. “He told me he wasn’t going to let me out until I exposed myself to him,” she said. FOX 4 article here

Keywords

background checks   California operators   Connecticut operators   criminal incidents   Dallas operators   driver behavior   Lyft   Maryland operators   Maserati   passenger safety   safety   Sexual Assault   Texas operators   TNC travesty   TNCs   Uber   

 

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Embracing New Rules Of Engagement In The Gig Economy

Keywords

Atlantic city   Gary Bauer   gig economy   Harrah’s   industry education   LCT-NLA Show East   limo tradeshows   Nick Kokas   Richard Fertig   Rick Versace   Sara Eastwood-Richardson   

 

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6 Ways Limo Services Fail & How To Avoid Them

It’s not true: The adage half of small businesses fail in the first two years is wrong. Only 30% fail in that short time period, but after five years, yes, it’s true. Half of new businesses are gone. So says the U.S. Departments of Commerce and Labor.

And if you read other sources like Fast Company and Bloomberg, the statistics are even more dismal. A massive leap of faith is needed to begin a new business venture.

Failure is a tough topic, but planning is critical to avoid the major pitfalls that burden any business. Planning for contingencies is important, too. So while you build processes, grow the client base, and stand out in your market, be sure to plan for the best and prepare for the worst. When a business closes its doors early in its life cycle, it is usually not due to a happy owner who has made too much money and wants to retire. No, it’s sad, ugly, and painful, and worth avoiding.

Established companies are not immune to failure, either. For the larger ones with years of experience, it is often an inability to change direction, to flex when the market demands it, or to keep sharp when competition changes. Still, getting to be one of the “old guard” is not easy.

In the tradition of the “6 Common Failures” format familiar in business media, here are six major pitfalls in the limousine industry to avoid for future success.

#1: Starting Your Company for the Wrong Reasons
We all want to make money. And maybe your think striking out on your own will allow more flexibility. Perhaps you want to build something for your children to take over. These benefits may come to pass, but they do not make a business succeed on its own. Business starters often get frustrated at not having these things happen quickly.

What are the right reasons? First, you must firmly believe and know, from research and experience, you have a solution to a market need. You must love this 24/7 industry and the business so you will be determined to get through the inevitable obstacles. You must have a passion for the people around you, often family, who will help to make or break you. And they need to feel the same way. You must also have the ability to survive the rough patches. Remember, you have lots of metal on the ground rolling at all hours of day and night. You will inevitably encounter problems on the fly. Paint a clear picture of your goal and be sure the same philosophy is shared by others vested in the business.

#2: Not Enough Capital & Financial Know-How
Business owners, especially new ones, often underestimate how much money is needed to operate. Pie-in-the-sky projections coupled with insufficient capital resources will kill an operator fast. Planning for business needs and having extra money for unexpected events is especially important in the first few years. You’ll also need money and capital to either buy or lease expensive luxury vehicles.

What to do? Use someone smarter than you to help with financial planning. A personal banker, small business coach, or seasoned limo operator good with numbers often works at no cost. Each could help determine what your operation needs to start and stay in business. Companies face so many risks with labor issues, lawsuits, sudden events like illnesses, and market shifts that you must understand everything that may be needed in the early stages, and amid challenges. Even for established operators, access to capital is essential for growth, reinvestment, and financial safety. Flexibility and access will be important for many years — that is, if you survive the first few.

#3: You’re Not The Best Manager
We have to look in the mirror on this one. It may be one of the reasons you are struggling. This may actually be the top reason operators fail. This industry has very few barriers to entry — a simple driver’s license may have gotten you started as a chauffeur, but new owners may lack relevant business and management expertise in areas such as finance, operational procedures, fleet and safety concerns, and managing employees.

How to learn to lead when you’re already the leader: Recognize where you can grow. Seek out mentors and operator groups for guidance. Stay educated and constantly review your operational numbers and data. This can never end, no matter how comfortable you are with the business. A successful manager also creates a creative and productive working environment. Forunately, LCT offers two annual trade shows where you can gain this invaluable experience.

[PAGEBREAK]

<p>(graphic by Kevin Haegele/LCT)</p>#4: Lack of Planning
Many organizations do not spend enough time planning before changing. Likewise, new operators may not plan correctly, either. Planning for growth, for the unexpected, and for the actual business are the three essentials. How can you ever get from Point A to Point B without a business plan, just like two addresses for a pick up and drop off? A night on the town, an event, and a business all need a plan. Most unnerving are the unexpected curveballs in a heavily regulated industry with labor and insurance needs.

What to plan for: First, a business must have a realistic plan based on reliable data to create reasonable and measurable goals. A thorough business plan describes the operation’s vision and goals. It evaluates the competition and considers potential problems and solutions. It develops a solid financial plan with accurate and educated forecasts for revenue, fleet, workforce needs, and other operating expenses. And it coordinates sales and marketing to meet the company’s goals.

#5: Forgetting Your Customers
Your operation will not thrive if you don’t know what your clients expect. Are you listening to them? Is revenue declining? Are you aware of service issues? Maybe something has slipped by, but you have no way to know. In the limousine business, it’s all about experiences you create, and a focus on details.

How to avoid losing touch: Use surveys after rides to collect data. Make random quality calls to clients to stay in touch. Send a simple birthday, anniversary, or congratulatory wish. Personal relationships have always been more important than perfect service, and a friendly approach with clients will keep them loyal when the unfortunate service issue occurs. Keep a database record of client likes, dislikes, tastes, favorites, habits, etc., and then adjust your service repertoire accordingly.

#6: Growing Too Fast
A successful business can lead to blissful, prosperous fates, but unmanaged growth is a leading cause of business disarray while even rapid planned expansion can lead to bankruptcy. You don’t want to stifle growth, but be careful what you ask for. Too much too soon can be very destructive and costly. In the chauffeured world, starting out with one or a handful of vehicles while adding slowly overtime has worked well for thousands of operators.

How to avoid growth problems: Just like daily operations, growth and expansion take careful planning. So before you expand the fleet, you must know you already have the revenue to fully pay for each new vehicle. Breaking out each vehicle as its own P&L unit helps you keep better tabs on day-to-day finances while guarding against long-term surprises.

LCT has a vehicle cost calculator here

If you think a new client contract sounds good, confirm it with a thorough analysis. For example, a hotel contract may mean extra labor for standby cars. Or a corporate client may demand very low prices that don’t make sense. Use those experts surrounding you to analyze the best way scale your growth. Whenever doing RFPs, spend the time gathering as much information about the prospective client company as possible, and never overstate or overpromise what you can deliver. The loss of a valued client supplying a good chunk of your revenue can send your operations reeling.

Our industry has many natural challenges, but we create many of them. By recognizing the mostly likely problems, such hardships will have little effect. With proper foresight, the biggest hurdles will seem smaller.

Keywords

business growth   business management   entrepreneurship   finance   Management   operator finance   startup   

 

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Uber Shows The Future Is Driverless, But Why?

<p>A Google self-driving&nbsp;car. (Image from <a href="https://www.flickr.com/" target="_blank">Flickr</a> posted by <a href="http://ift.tt/1nv12kV" target="_blank">Roman Boed</a>; Creative Commons license <a href="http://ift.tt/1HgRP86" target="_blank">here</a>)</p>In August, Uber rolled out their very first batch of 100 driverless taxis, with Travis Kalanick, Uber’s CEO, proclaiming self-driving cars are inevitable (Uber currently operates the Uber Advanced Technologies Center in Pittsburgh, a facility dedicated to mapping and driverless technology).

But what’s driving the demand for self-driving cars? Is there an enormous citizen outcry we never seem to hear about? Do citizens even want cars that can drive themselves?

Forbes Magazine article here

Keywords

autonomous vehicles   driverless cars   research and trends   self-driving vehicles   Uber   

 

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