My Plan

[strictbiz]

Hello Fellow Entrepreneurs.This is kinda long but bear with me.

Here goes:
In my country the taxi business is run like this:
You buy a car usually between $4000-$5000, these are second hand Japanese cars which in m experience usually have a trouble free period of 3-4 years. The contract with the taxi driver is that, they bring a certain agreed upon fixed amount everyday the car is in operation while taking care of the fuel and salary themselves.This amount comes to about $400 per car every month(with tax,insurance,salary and minor servicing taken care of). In the evening they bring the car to park.
Main risks are:
• Accidents which I intend to take care of through insurance which varies from $50-$75 a month, per car.
• The other risk is of course theft, which I intend to handle to a certain extent by implanting all my vehicles with tracking devices. Not too preventive but will help the worst situation and lower my insurance premiums
• The other situation is the driver not adhering to the contract and bringing in less than is agreed upon, I intend to be strict and ensure that behavior like this only lasts 3 times at which I will look for a more serious driver.
Now The Math
1. I get initial funding from an angel investor or business partner of $20 000,lets say in form of a loan at 25% to be paid in two years time that comes to $25 000,I will be getting approximately $1600 and paying about $1200 towards the loan. by 12th month I would have paid 50% of the loan. At which point I would have also gained the trust of the banks with my monthly cash flow and assets, so that I can take out a $10 000 loan with hopefully good interest and payment period up to five years. With which I will buy two more cars and increase my monthly cash flow to 2400 with $1500 going to the 2 loans and $900 as monthly profit.in year two.
Not too much but in my country thats accomodation,food,bills and basic luxury taken care of nicely and obviousely company expansion will always be on my mind and plans.
Guys I know the environment is quit different but feel free to comment and critique.I need your advice because this will also be part of the plan I present to potential investors.So tell me how it looks from an investors point of view as well as your own
Thanks

[The Stealthy One]

Do you know anyone else who has successfully done this? In your area or elsewhere in your country? Could you possibly pick their brains for something you could be overlooking? What is your plan if the economy turns downwards, or if your local government "nationalizes" taxi service, or some other unforeseen event?

[strictbiz]

Hey,
I have some experience with this being that my family owns two taxis already and am the one whose been handling the cashing from the drivers and their discipline for the past 18 months.I have been researching from the few other people an a company I know who own Taxis and that is how I came up with those figures.As for nationalisation,I don't see that happening anytime,being that our country is a stable democracy and a liberalized economy,even the few parastatal companies around are being privatised,namely our electricity and telcoms providers,the mines were privatised about 15 years ago.
As for other unforseen events,I can't think of too many short of war that would cause a huge problem.
thanks