The automaker has acquired the technology and most of the assets of the San Francisco-based ride-hailing pioneer Sidecar Technologies Inc.
business deals business expansion General Motors investment Lyft mergers & acquisitions on-demand service Sidecar TNCs Uber
Follow @lctmag on Twitter
via Limo News http://ift.tt/2kyLaTR
employee issues gig economy TNCs Uber
Follow @lctmag on Twitter
via Limo News http://ift.tt/2kySBus
CNNMoney.com article via Channel3000.com here
business travel corporate business corporate travel TNCs Uber
Follow @lctmag on Twitter
via Limo News http://ift.tt/2kyH9Lc
autonomous vehicles driverless cars self-driving vehicles
Follow @lctmag on Twitter
via Limo News http://ift.tt/2k5kyK2
charter and tour operators Donald Trump motorcoaches special events Washington DC operators
Follow @lctmag on Twitter
via Limo News http://ift.tt/2k5rHtH
business growth Donald Trump economic outlook fleet management Fleet Vehicles operation growth
Follow @lctmag on Twitter
via Limo News http://ift.tt/2k5haim
Although the company had good cash flow, a strong balance sheet, and solid net profit margins, Kini said it was a “game changer” after he learned how he really needed to embrace and manage the details in his budget all year. With a 20-vehicle fleet and a background in business, Kini said he learned to hone in on five key areas: Financials, marketing, sales, operations, and human resources.
“You have to have a clear strategy about your budget plan and recognize that cash is king,” Kini said. “Numbers don’t lie. So you have to pinpoint any reckless spending by looking at every budget line item and ask yourself why this is happening — then adjust.”
For example, Kini mentions office supplies as a line item. “We looked at that line item expense and you look at the trends and we found we were not as disciplined as we should have been. We looked at the vendors we were using and asked ourselves, are we getting the best prices and any ancillary benefits from using one vendor over another, such as free shipping or cash back? That’s managing your budget to keep expenses low,” he explains.
One of the key components in preparing and staying on budget is factoring in “unknowns,” advises Ron Sorci, founder and CEO of Miami-based Professional Consulting Resources, Inc., and a LCT financial columnist. “You have to factor in unforeseen events that disrupt business, such as a lawsuit that requires hiring an attorney, loss of a major account, increasing insurance, and other events that can disrupt cash flow.”
Micromanage The Money
“January is the perfect time of year to prepare a budget by reviewing your historical data and preparing for the New Year. For example, do you plan on increasing your rates in 2017? Then you need to factor the increase into your budget.”
Sorci, who writes the “Profit Driven” column for LCT Magazine, is a firm proponent of paying attention to the details of running your company. He says operators need to be as objective as possible in preparing a budget, and revisit it often to ensure your are on track.
“The first thing operators need to do is list every single line expense and figure out what it costs them to run their business, all their expenses, and then break down every single source of where revenue comes from (corporate, retail, etc.) and plug in what you want your profit margin to be. In this industry, it ranges from 8% to 13%, so if you want to make a 10% after tax profit, plug that into your budget.”
As a consultant — and echoing Kini’s advice to stay on top of your budget — Sorci advises operators to review their budgets often to stay on course. “You should review your budget on a month-to-month basis and every three months consider revising your budget to be more realistic if you have had a major loss, such as losing an account.”
Expect The Unexpected
Another example of a budget buster is if you have accidents through the year and high deductibles that must come out of your pocket, which can throw a wrench into a tight budget and cash flow.
Sorci notes six examples of unexpected expenses that can seriously impinge on a budget:
“Unexpected costs not factored into your budget can seriously disrupt your cash flow if you are not prepared for such costs,” Sorci says. Lawsuits and natural disasters happen that can trigger cash flow problems plus insurance hikes, and competition from TNCs can stretch the budget rubber band if you are not prepared.”
A Living Document
A former hedge fund manager with a finance MBA from the University of Pennsylvania Wharton School, Fertig understands how a budget is a working document that needs to be relied on and adjusted constantly to ensure profitability.
“If you see you are having a bad month, you need to react and do something about it to stay on budget,” Fertig says. “That may mean running specials or handing out flyers, or whatever it takes to bring in business to make up for any shortfall. Suppose your heating bill comes in at $1,700 and you only budgeted $1,000? What are you going to do, just sit there? A budget isn’t just numbers; it has a real purpose to help you run a profitable business every month.”
He points out a budget has to consider such variables as fluctuating fuel costs, slow periods, and other factors that can affect profit and loss. “For example, the long Thanksgiving is slow, so we let staff take time off, which didn’t reduce costs, but ate up some vacation time during a slow period.”
One piece of advice Fertig offers owners is to build your salary into the budget. “l learned early on from other operators to pay yourself a respectable compensation because that’s important. You work hard, and at the end of the year, you have managed a budget that makes the company profitable.”
— Tom@LCTmag.com
Former CFO and industry consultant Ron Sorci points to one line item that quickly can become the silent killer of a company’s operational budget: Overtime pay. “More companies struggle with managing overtime because it creeps up on you during any given week and operators don’t budget for more than an employee’s 40-hour work week.”
Sorci notes overtime costs create the most headaches for operators of all sizes because it’s not factored into their budgets. “Nobody seems to budget it, and then they are surprised when they have a larger payroll that affects cash flow.”
For example, he says a dispatcher may not have enough chauffeurs during a busy time period and decides to keep them working longer hours to handle the volume, or on standby in case of client ASAP calls, or other unexpected business such as affiliate runs.
“I love to pay overtime — as long as it’s directly tied to revenue,” operator Richard Fertig adds. But he cautions overtime can be a killer if operators have to pay time and a half, or in California, where he also does a lot of business, double time after 12 hours.
“Operators need to factor in all the workmen comp costs with overtime because that $15 an hour hourly rate is now $30 an hour, and that eats into profit margins and causes negative cash flow.
“You’ll see operators look at their P&L statements and they wonder why they didn’t make a profit that month. Well, hey, you didn’t plan for overtime costs that didn’t drive revenue.”
disasters insurance rates lawsuits maintaining profitability profits saving money
Follow @lctmag on Twitter
via Limo News http://ift.tt/2ja7MFU
One company applying in the 1-10 vehicles category attached supporting documents typed on personalized stationary, giving their application a professional look.
Here’s an excerpt from their safety and insurance section: “Our employees are our most valuable resource in ensuring the quality of our services; therefore, it is our goal to provide employees with a workplace environment promoting health and safety.”
Another business sent in a form for the 11-30 vehicles category and included its TripAdvisor page with an outstanding and consistent five star rating. They also sent in proof of insurance and a well-crafted PowerPoint presentation of the services the company offers.
Speaking of PowerPoints, an operator applying for the award in 51+ vehicles category attached a detailed document revealing results of their recent customer service survey. Aiming to be transparent, they’ve also sent in a loss run report.
Finally, one operation in the Motorcoach Operator of the Year category not only included well-written answers for each category void of grammatical errors, they also attached high-resolution photos to back up their claims.
LCT gives Operator of the Year awards to six operators who excel in the areas of customer service, technology, chauffeur training, media and marketing, safety and insurance, and community/industry involvement.
A panel of judges scores finalists in each of those categories for the following OOY awards: 1-10 fleet vehicles; 11-30 fleet vehicles; 31-50 fleet vehicles; 51+ fleet vehicles; motorcoach; and global/international.
ENTRY FORM HERE (The form also can be accessed at the top of the LCTmag.com home page by clicking the “LCT Awards” link)
Winners will be announced and honored on Tuesday, March 14, 2017 from 7 p.m. to 10 p.m. during the LCT Magazine Awards Gala at the International LCT Show in the Sands Expo between The Palazzo and The Venetian Resort Hotel Casinos in Las Vegas.
honors and awards ILCT 2017 industry events Las Vegas LCT Events limo tradeshows NLA operator achievements Operator of the Year Awards tradeshow preparation
Follow @lctmag on Twitter
via Limo News http://ift.tt/2k5lE8x
David Wright, senior general manager at Forest River, said, “When we decided to launch a brand-new division almost a year ago, we made the commitment to build America’s best luxury bus. After months of research and development, and spending extensive time with our dealers and their customers, we are proud to introduce the Berkshire Ultra.”
Troy Snyder, general manager of Berkshire Coach, added, “We simplified the process for our customers and their dealers by making all luxury options standard equipment and backing it up with one of the most complete warranties in the industry. From Ultra Lux seating to individual USB ports at each seat, and everything in between, it all comes standard and is covered with a comprehensive 5-year/100,000-mile warranty.”
Visit berkshirecoach.com for more information. Berkshire Coach is a division of Forest River.
[CD0117]
via Limo News http://ift.tt/2k5tO0T
