Should I buy a bus company or start one?
Buying gets you existing route, charter or school contracts, a track record, drivers and a working fleet. Starting means winning that work from nothing, recruiting drivers and choosing vehicles yourself. Weigh how hard the contracts are to win without a history, and how much of the fleet’s age and condition you would inherit.
A bus or coach company sells reliability. Customers who hire one want to know that the vehicle will arrive, the driver will be qualified and the service will repeat. A new company has to prove that from the beginning. An existing one has already done part of it. This page compares the two routes. The buying guides assume you have decided to buy and explain what comes next.
Contracts and track record
Many customers choose operators with a record they can check. Route, shuttle and school work may go to companies with a record of dependable service, which a newcomer may find hard to show. Buying an operator with standing contracts shortens that wait. Ask which contracts exist, when each ends, and whether a change of owner affects them. Your lawyer can read the terms.
Drivers and staff
Finding qualified drivers is a steady task in this trade. A purchase may bring a working team, along with mechanics and a dispatcher who know the routes. Starting means recruiting and training from the beginning, often before you have steady work to offer. Ask how long the current drivers have stayed and what keeps them, then ask which of them are likely to remain after a sale.
The fleet you inherit or choose
A purchase includes the vehicles as they stand. Ask about their age, upkeep records, inspection history and how soon any will need replacing, since a tired fleet moves a cost to you. Starting lets you choose vehicles that suit the work, but you must pay for them or finance them before you earn anything. Both routes involve a big commitment to vehicles.
Questions to put to yourself
- Could I win contracts without a record of service?
- Can I recruit and keep drivers on my own?
- Am I comfortable taking on a fleet I did not choose?
- How long could I fund a start-up before it supports me?
Related reading
15 pages on the same subject, grouped by topic.
Buying
- GuideBuying a school bus contractor in Canada
- GuideBuying a limousine and black car service in Canada
- GuideBuying a taxi fleet in Canada
- GuideBuying an air charter operator in Canada
- GuideBuying a driving school in Canada
- Expert answerHow do I find a flight school for sale in Canada?
- Expert answerShould I buy an aviation business or start one?
- Expert answerHow do I find a helicopter company for sale in Canada?
- Expert answerWhat am I buying when a jet charter company manages other people’s aircraft?
- Expert answerHow do I assess a day camp’s field trip and bus vendor relationships?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Transport CanadaGovernmentMotor carriers, commercial vehicles and drivers
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