Mobile businesses are becoming more diverse, with many people
choosing to ditch the huge property overheads and embrace the freedom that
comes with taking their business wherever the work is. Companies like Coffee Latino and Salon on Wheels have shown that there is demand for
mobile businesses among both consumers and entrepreneurs.
Why choose to go mobile?
There are many reasons why you might consider becoming a mobile
business owner. You may have the desire to be your own boss, or you could be
newly qualified in a trade but unable to find a suitable job. Perhaps you need
work that is flexible - mobile businesses offer you the unique opportunity of
working the hours that best suit your lifestyle, and that can fit in around
other commitments such as having young children.
Many small businesses or start-up companies struggle with hefty
overheads and exorbitant rentals, often feeling restricted by long-term lease
contracts. With a mobile business, none of these issues arise. The flexibility
extends to being able to travel to where the work is; for example, an ice-cream
man can wait outside a school at the end of the day, or a mobile catering
business can attend fairs, markets and other events. The convenience aspect is
also appreciated by the clients. Perhaps they don't want to drag themselves out
for an appointment at a salon on a Saturday morning or after a busy day at
work; instead preferring their hairdresser or beautician to come to them. And
this is not the only benefit for customers. Due to reduced overheads, mobile
businesses are often able to extend lower prices to their customers, too.
Getting your figures straight
One important thing to consider before launching a mobile business
is whether there is a market for your services. For slightly more unusual
mobile business concepts, you will need to carry out substantial research to
ascertain whether it is feasible, and if so, who your target audience will
be. Adequate research is also necessary for well-established trades too,
confirming how many people are offering a similar service to yours. If the area
is already saturated, it might be hard to break into. You will also need to
calculate start-up costs. Although nowhere near as expensive as hefty property
rents and overheads, there will be other regular costs such as petrol,
insurance, vehicle loan repayment (or lease costs). You will also need to consider
what equipment (if any) you will need to get started.
Working out your wheels
One important thing to consider is the transportation you need,
and this will be largely dependent on what kind of business you are setting up.
If it is just for you and a minimal amount of equipment, you may be able to use
your own car. This is a great option for a new business, as no specialist
vehicle is required (keeping costs down), and you can also claim back expenses
for petrol.
If you intend to transport larger, heavier equipment, then you may
require a van or even a lorry. Some businesses will actually carry out their
work inside the vehicle, such as mobile caterers, so it would need to be
specifically modified. If a work vehicle is necessary, you may need to decide
between leasing or buying. Leasing is often the best alternative, especially
for a fledgling company, as it requires minimal cash outlay. Any expensive
repairs or costs would be handled by the lease company, rather than being
incurred by you; and you will not be stuck with a vehicle that rapidly
depreciates in value. Instead you can upgrade to a newer model regularly.
Taking payments on the road
If you're likely to be accepting cash payments most of the time,
it's important that you have a secure way to transport your income without
risk. For example, you should keep it in a vehicle safe while you're on the road, and ideally
make a daily trip to the bank so you never have more than a day's taking in the
vehicle.
You may also need to take card payments - it will be the most
convenient payment method for most customers, ensures you never miss a sale
because you can't accept cards and people will expect to be able to pay in this
way. It's also easier to keep track of sales when you take card payments. You
may be surprised to know that it's perfectly possible to take card payments
when you run a mobile business. Portable PDQ machines such as those available
through Barclaycard's business arm are perfect for mobile business
owners.
Get the right insurance
Anyone driving a vehicle for work purposes needs specialist
insurance. How the insurance is determined depends on what your specific
business is, and what you are using the vehicle for. For example, there is a
difference between whether you are merely using your vehicle to transport
equipment, or actually working inside it. Some mobile businesses require
specific insurance, for example, catering vans which need cover against the
risk of accidents such as fires started during the preparation of hot food.
Another insurance that many mobile businesses require is liability
cover. This protects the business owner against accidental harm to either the
client (in the case of a hairdresser, for example), or damage to property.
So, if you have a profession that doesn't require a static
work-place, have a novel idea for something you can take to your customers, or
don't want the expense of huge overheads, then a mobile business may just be
for you.