How to Start a Private Tour Guide Business

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A private tour guide business takes people on excursions while guiding them through historical monuments, museums, and other locations. Tour guides have pertinent cultural, historical, and practical information that may be imparted to travelers.

Most private tour guides are enthusiastic about their city’s culture, rather than schlepping around vast groups of strangers, they usually accompany small, intimate groups or individuals to hidden jewels of the city.

Private tour guide business is a subset of the tourism industry, and available statistics show that the market size, measured by revenue, of the tourism industry in the United States, is $957.4 billion. The size of the travel industry in the United States and Canada was estimated at USD 951.8 million in 2021, and it is projected to grow at a CAGR of 10.3 percent from 2022 to 2030.

Steps on How to Start a Private Tour Guide Business

Conduct Market Research

Proper research is essential because it will enable you to carry out an in-depth analysis of a certain issue that you aim to address with your group home, using scientific approaches. The purpose of performing market research for a group homes is to obtain an analysis of the data and open up a dialogue for the development of fresh ideas, concepts, and perceptions of the competitive landscape.

With market analysis for a group home, you will be able to go into uncharted territory and discover fresh opportunities in the sector where you wish to start your organization.

a. Who is the Target Market for the Private tour guide business?

Tourists
Students on excursions
Visitors

b. Is a Private Tour Guide a Profitable Business?

Yes, the private tour guide is a profitable business. As a matter of fact, the industry is projected to be worth $957.4 billion.

c. Are There Existing Niches in the Industry?

Yes, there are existing niches when it comes to the private tour guide business, and here are some of them;

Independent private tour guide business
Consortium private tour guide business

d. Who are the Major Competitors?

USA Guided Tours
Avenues of the World Travel
Beachfront Travel
Frosch Travel
En Route Travel –
MK All Around Travel, Inc.
CruiseOne, Hargarther, Thaler & Associates LLC
Independent Agency of Avoya Travel
Cary Travel Express
Frosch Travel
CWT Vacations
Connie Lemmon Travel, an Independent Agency of Avoya Travel
LoBracco Travel, LLC, an Independent Agency of Avoya Travel
World Travel
First in Service
Bluegreen Travel Services
CruiseOne – Gary E. Smith & Associates
My Paradise Planner.

e. Are There County or State Regulations or Zoning Laws for Private Tour Guide Businesses?

Private tour guide businesses are not subject to county or state regulations and zoning laws, but operators in this industry are required to abide by the rules that are governing similar businesses in the state where they operate.

It is important to note that American government departments and agencies frequently approve deviations from laws and regulations. So, you only need to complete the form, or you might need to have your request heard in front of the city council, zoning board, or some other authority.

f. Is There a Franchise for a Private tour guide business?

Yes, there are franchise opportunities for private tour guide business, and here are some of them;

Cruise Planners
Dream Vacations
Travel Leaders
Expedia Cruises
Results Travel
Tix Travel and Ticket Agency
Expedia CruiseShipCenters.

g. What Do You Need to Start Private Tour Guide Business?

A feasibility report
Business plans
Business licenses and permits
A good office facility
EIN (Employer Identification Number)/Federal Tax ID Number
A corporate bank account
Office equipment
Employees
Startup Capital

Choose a Memorable Business Name

When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.

Some of the catchy business name ideas suitable for a private tour guide business are;

Creative Private Tour Guide Business Name ideas

Mendy Hanson© Private Tour Guide, Inc.
Palm Green Private Tour Guide, LLC
Harry Marshal© Private Tour Guide, Inc.
Tour Solutions® Private Tour Guide, Inc.
Pence Nelson™ Private Tour Guide, Inc.
T Torin™ Private Tour Guide, LLC.
Sight and Sounds© Private Tour Guide, LLC
Jonny Moore® Private Tour Guide, Inc.
Tour Genius© Private Tour Guide, Inc.
Seba Lena© Private Tour Guide, Inc.
Ken Richards and Sons® Private Tour Guide, LLC
Los Angeles® Private Tour Guide, LLC
Moore Dollars™ Private Tour Guide, LLC
Famous Gabriel© Private Tour Guide, Inc.
Around The World® Private Tour Guide, Inc.
Silas Martins™ Private Tour Guide, Inc.
Golden Tours™ Private Tour Guide, Inc.
Anderson Global© Private Tour Guide, Inc.
One Stop® Private Tour Guide, LLC
James Brothers™ Private Tour Guide, Inc.

Register Your Business

a. What Type of Structure is Best for the Private Tour Guide Business?

There are several options when it comes to the structure of a private tour guide business, but the one most players in this line of business considered is an LLC. This is because the providers want to protect themselves from lawsuits.

b. Steps to Form an LLC

Choose a name for your LLC
File articles of organization
Choose a registered agent
Decide on member vs. manager management
Create an LLC operating agreement
Comply with other tax and regulatory requirements
File annual reports.

c. What Type of License is Needed to Start a Private Tour Guide Business?

General Business License
Zonal Permits
A Sightseeing Guide license.

d. What Type of Certification is Needed to Start Private Tour Guide Business?

There is a certification you should obtain if you want to run a private tour guide business;

Travel and Tourism Professional (TTP)

e. What Documents are Needed to Start Private Tour Guide Business?

The following are legal documents that are required if you want to run a private tour guide business in the United States;

DBA
EIN
Business and Liability Insurance
Federal Tax Payer’s ID
State Permit and Building Approval
Certificate of Incorporation
Business License
Business Plan
Employment Agreement (offer letters)
Operating Agreement for LLCs
Insurance Policy
Online Terms of Use
Online Privacy Policy Document
Contract Document
Company Bylaws
Memorandum of Understanding (MoU).

f. Do You Need a Trademark, Copyright, or Patent?

There may not be a need to register for trademark or intellectual property protection if you want to own a private tour guide business. The nature of the business allows you to manage the firm without having any reason to sue anyone for using your intellectual property unlawfully.

Cost Analysis and Budgeting

a. How Much Does It Cost to Start Private Tour Guide Business?

To start a private tour guide business, on average, you can budget between $10,000 to over $100,000.

b. What are the Costs Involved in Starting a private Tour Guide Business?

About $750 is required to register a business in the United State
Approximately $1,200 in legal fees for accounting services, and the acquisition of licenses and permits
Marketing promotion costs- $80 flyers
Hiring a business consultant will cost about $2,50
About $2,400 in total premiums for insurance coverage (general liability, workers’ compensation, and property casualty).
The price of payroll, CRM, and accounting software is $1,500
About $35,600 is the cost of paying rent
The cost of facility remodeling – $15,000
Other start-up expenses including stationery – $500
Phone and utility deposits will cost – $2,500
The cost of the purchase of office furniture and gadgets – $8,000
The cost of launching a website – $600
Miscellaneous – $2,500.

c. What Factors Determine the Costs of Starting a Private Tour Guide Business?

The size of the private tour guide business
The choice of location
The required licenses and permits
The type of facility
The type of services – offerings
The cost of hiring a business consultant
The cost of branding, promotion, and marketing of the private tour guide business
The cost of furnishing and equipping the private tour guide business office facility
The cost of the insurance policy
The cost of registering the business
Cost of recruiting and training employees
The cost of the purchase and customizing of uniforms, shoes, and caps for the employees
The cost of the grand opening of the private tour guide business.

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

You don’t need to build a facility for a private tour guide business because it is a business that can be operated from a small office or even a shared office space.

e. What are the Ongoing Expenses of a Private Tour Guide Business?

Utility bills (internet subscriptions, phone bills, signage and software renewal fees et al)
Salaries of employees

f. What is the Average Salary of your Staff?

Chief Executive Officer – $62,000
Admin and HR Manager – $42,000
Tours Guides – $40,000
Marketing Executive $40,000
Accountant – $38,000
Customer Care Executive/Front Desk Officer – $32,000 Per year.

g. How Do You Get Funds to Start Private Tour Guide Business?

You can raise funds through the following means; selling shares to interested investors, raising capital from investors and business partners, raising capital from personal savings, applying for a loan from your bank, and sourcing soft loans from friends and family.

Write a Business Plan

a. Executive Summary

John Sienna© Private Tour Guide, Inc. is a US-based registered private tour guide business with a head office in New York City. John Sienna © Private Tour Guide, Inc. is a client-focused and result-driven travels and tours agency that provides broad-based experience, at an affordable fee for the favor of our clients.

We will offer professional travel and tour services to all our clients and corporate clients at local, state, national, and international levels. We will ensure that we work hard to meet and surpass our client’s expectations whenever they hire our services.

b. Services

Organizing trips and conducting research
Putting together and delivering presentations with travel guidance
The planning and direction of excursions
Translating and interpreting, problem-solving, transporting, and escorting tourists.

c. Mission Statement

Our mission is to establish a private tour guide business that will provide top-notch services to both individual and corporate clients in the United States and across the world.

Vision Statement

Our vision is to establish a standard private tour guide business that will become the leading brand in New York, and also to be amongst the top 20 private tour guide agencies in the United States of America, within the first 5 years of operations.

d. Goals and Objectives

The goals and objectives of the private tour guide business are to take groups of people or individuals on excursions while guiding them through historical monuments, museums, and other locations.

e. Organizational Structure

Chief Executive Officer
Admin and HR Manager
Tour Guides
Marketing Executive
Accountant
Customer Care Executive/Front Desk Officer.

Marketing Plan

a. SWOT Analysis

Strength:

A good location for private tour guide business
Experienced and qualified employees and management
Access to robust networks or travel and tours agencies
Availability of tour guides that understands and communicate in at least five international languages like; (English, German, French, Spanish, Portuguese, and Chinese).

Weakness:

Financial constraints may restrict the publicity and branding of the business
A new business that will be competing with well-established travel and tour agencies and franchises in the city and on the internet
Inability to retain our experienced and qualified employees longer than desired.

Opportunities:

A rise in the number of tourists visiting our city (New York City)
Online market, services, technologies, and the starting of new markets.

Threat:

The arrival of a new private tour guide business within our market space
Low demand during the pandemic will reduce industry profitability
Economic uncertainty
Liability problems
The government could change its regulatory status and decide to enforce strict laws that can strangulate new businesses of this nature.

b. How Do Private tour guide businesses Make Money?

Private tour guide businesses make money by offering the following services;

Organizing trips and conducting research
Putting together and delivering presentations with travel guidance
The planning and direction of excursions
Translating and interpreting, problem-solving, transporting, and escorting tourists.

c. Payment Options

Payment via bank transfer
Payment with cash
Payment via credit cards/Point of Sale Machines (POS)
Payment via online bank transfer
Payment via check
Payment via mobile money transfer.

d. Sales and Advertising Strategies

Introduce your private tour guide business by sending letters, alongside your brochure to travel and tours agencies, hotels, schools, and other key stakeholders throughout the city where your business is located.
Advertise on the internet blogs and forums, and also on social media like Twitter, Facebook, and LinkedIn to get your message across.
Create a website, so as to give your business an online presence
Advertise your business in community-based newspapers, local tv, and radio stations
List your business on yellow pages ads (local directories)
Encourage the use of word-of-mouth marketing (referrals).

Financial Projection

a. How Much Should You Charge for your Services?

The amount traveling agencies charge their clients depends on the type of services rendered, and the commission the third-party provider is willing to give.

b. How Much Profit Do Private tour guide business Owners Make a Year?

The report shows that on average, a small to medium-sized private tour guide business owner can earn anywhere from $50,000 to $120,000.

c. What Factors Determine the Amount of Profit to Be Made?

The capacity of the private tour guide business
The types of services offered
The location private tour guide business is covering
The management style of the private tour guide
The approach of the private tour guide
The advertising and marketing strategies adopted by the private tour guide
The number of years the private tour guide is in business.

d. What is the Profit Margin of a private tour guide Service?

The profit margin of a private tour guide business is not usually fixed. It will depend on some factors that are unique to the service you are offering, and the commission attached to the services.

e. What is the Sales Forecast?

First Fiscal Year: $220,000
Second Fiscal Year: $350,000
Third Fiscal Year: $440,000

Set Up your Shop/Office

a. How Do You Choose a Perfect Location for Private Tour Guide Business?

The demography of the location as it relates to the number of people that visit tourist sites
The demand for the services offered by private tour guide businesses in the location
Accessibility of the location
The number of private tour guide businesses in the location
The local laws and regulations in the community/state
Traffic, parking, and security et al.

b. What State and City are Best to Start a Private Tour Guide Business?

Rowland Heights, California
Portland, Oregon
Oak Lawn, Illinois
Green Bay, Wisconsin
New York City, New York
Las Vegas, Nevada
Los Angeles, California
Ponte Vedra Beach, Florida
Dallas, Texas
Silver Spring, Maryland.

c. What Equipment is Needed to Operate a Private Tour Guide Business?

Booking software
Computers/laptops
Printers
Telephone
Fax machine.

Hire Employees

When hiring employees for a private tour guide business, you should hire a competent chief executive officer (you can occupy this position), human resource and admin manager, accountant, tour guards, and call center, agents.

Launch the Business Proper

No private tour guide opens for business without first organizing an opening party, to officially launch the business. You can do a soft opening party if you are operating on a low budget, or you go for a grand opening party for all the people in the location where your business will be located. With a proper launching, you will officially inform people in your city that your private tour guide business is open.

a. What Makes Private Tour Guide Business Successful?

Choose a good location and office facility to launch the business
Make sure your partner with key stakeholders and offer a wide range of travel and tours services (give your customers options)
Be deliberate with your marketing approach
Encourage the use of word of mouth to promote your business
Leverage all available online and offline platforms to promote your private tour guide business.

b. What Happens During a Typical Day at a private tour guide business?

The office is open for the day’s work
The walk-in areas, chairs, and tables are properly organized
Walk-in customers are attended to
Services are rendered (designing travel routes, acquainting clients with the area on foot or by car, and ensuring that everyone is secure at all times)
Reports are written and submitted to superior officers
The business is closed for the day.

c. What Skills and Experience Do You Need to Build Private Tour Guide Business?

Ability to speak more than one international language
Excellent customer services skills
Good knowledge of the tour
Ability to communicate effectively
Strong empathy and understanding
Charismatic personality
Keen ability to improvise and adapt
Ability to build rapport
Engaging storyteller
Interpersonal skill
Accounting and bookkeeping skills
Business management skills
Work experience in a travel and tour field
Experience in managing people
Experience in business administration
Experience in handling different types of booking software.