Starting a Spot hire/railtour company

[tgm999]

Hi, I was woundering how i'll go abouts starting to own and operate my own heritage stock on the BIG mainline on railtours and lending out to other TOC's plus how much of my life savings do i need to spend.

it's not going to happen for a few years yet but anywho why not ask now

 

[90019]

Have a look at this thread;
http://www.railforums.co.uk/showthread.php?t=26621

It's going to cost a lot of money and will take a lot of time and effort.

Starting up a business is going to be a daunting task, and there will be a lot of things that need done that you may not even be aware of.
It's also not really advisable unless you have previous experience of working on the railways as well.

 

[theblackwatch]

A six or seven figure sum might get you a small fleet.

 

[tgm999]

where do i get cash like that from?

 

[theblackwatch]

where do i get cash like that from?

The bank or building society?

 

[90019]

where do i get cash like that from?

• Business loans
• A large inheritance
• The lottery
• Rob a bank

Obviously the second two are down to luck and the fourth isn't exactly a smart idea. However for the first you will have to have prepared a very good and detailed business plan that shows that your business is likely to succeed, and shows the estimated costs and revenue so that you can convince them that you will be a worthwhile investment.

Obviously there are other ways, but those are what come to mind.

 

[tgm999]

• Business loans
• A large inheritance
• The lottery
• Rob a bank

Obviously the second two are down to luck and the fourth isn't exactly a smart idea. However for the first you will have to have prepared a very good and detailed business plan that shows that your business is likely to succeed, and shows the estimated costs and revenue so that you can convince them that you will be a worthwhile investment.

Obviously there are other ways, but those are what come to mind.

Thank you i know that at the moment it's not a good idea to start a business and to get any sort of a loan so i'll get more experience in the railway industry and speak to people who own a business. then in a few years i'll give it a shot and hopfuly be sucessful and if it goes tits up then at least i've tried

 

[37412]

Thank you i know that at the moment it's not a good idea to start a business and to get any sort of a loan so i'll get more experience in the railway industry and speak to people who own a business. then in a few years i'll give it a shot and hopfuly be sucessful and if it goes tits up then at least i've tried

Not wanting to be the negative one here but is it worth it? Unless you have got millions to spend on a fleet of brand new engines then you will have to use motive power avaliable to buy after other companies have finished with it, is there the call for such an operation, look at the Riviera fleet of 47's that do very little, FM went out of business, Cotswold the same way, while charter work would always be available if you are operating heritage engines there is not going to be a call for it every weekend. Just wondering what other people think on that point but if there is no demand then there is no need to supply.

 

[route:oxford]

Thank you i know that at the moment it's not a good idea to start a business and to get any sort of a loan so i'll get more experience in the railway industry and speak to people who own a business. then in a few years i'll give it a shot and hopfuly be sucessful and if it goes tits up then at least i've tried

Why isn't it a good time to start a business or get a loan?

Remember, most of the companies going "bust" had failed business models - they were probably barely managing in the good times.

If you have a good business model, the skill-set and the ability to offer security (ie the business assets, personal assets, your home - all of which you could lose) then it may well be the right time for you.

Think laterally though, and plan your model well.

 

[90019]

Thank you i know that at the moment it's not a good idea to start a business and to get any sort of a loan so i'll get more experience in the railway industry and speak to people who own a business. then in a few years i'll give it a shot and hopfuly be sucessful and if it goes tits up then at least i've tried

Just be prepared to lose a lot if it does all go wrong.

 

[almark]

Try asking Adrian Parcell.......

 

[Drimnagh Road]

The spot-hire market seems very tough. For example, I always wonder about Rail Blue for example. Congratulations to them in becoming a major player in the market with high quality rolling stock, but what happens when W&S return all their leased stock, the FGW diagrams end, plus with the GWML electrification programme meaning new train sets and releasing hundreds of coaches, then slap bang the demand for their products could be gone. It is likely that this business will get even tougher to be in. While a long way off, this is what people entering business need to think about.