Starting a tow company sounds exciting as it is pretty rewarding. However, towing business has its own set of challenges, which are usually unavoidable. You have done all the research, have the budget ready, and decided a place for your new business and everything else – You’re excited to get the wheels rolling and money flowing in. But wait, there are some important things that you must consider before opening your business doors.
How Much Will You Charge Per Call?
This is probably the most important question before starting a new towing business. It is directly linked to the fact that how much do you want to make. A rough calculation can be in the form of estimating your desired income, adding all the expenses and then dividing the figure by the number of estimated calls you’ll perform. Since all of these numbers are estimates, some of you would argue that this is putting too much pressure on your ability to guess correctly. However, making guesses and estimates is inevitable when starting any new business.
You can also call other local competitors and conduct a small, informal review of their prices. Then based on your estimate of expenses and volume of calls, decide your rate! As you move on, it is also important to keep an eye on the actual figures and then adjusting if the calls are over or under-performing.
What Assets Will You Have On Day One?
One of the most common mistakes most businesses make is buying all sort of fancy trucks in the first month. The idea, however, should be to keep expenses and truck payments to a minimum in the first year of operation. Expenses like salaries, supplies and fuel management can really sneak up for new towing businesses – so you must be ready for the surprises and save where you can. Experts say that a new business should always have $10,000 to $20,000 of cash or cash equivalent available at all times.
How Do You Want Customers To Describe Your Company?
When it comes to your towing company, building a strong brand is important. For customers, there are many options to choose from – so give a little thought to “why you?”. You can’t really build a brand in one day but a strong marketing plan can help you achieve that quickly. With a strong marketing plan and your focus on building a brand rather than a company, the money you spent on ads will work harder for you.
Who Will Be Your First Customer?
We all know how important contacts are in any business. Ideally, you should start spreading the word and meeting people in the same industry 3 months prior to the official launch of your company. Doing this will show you’re serious about the business while gaining some important industry insights even before the startof the company.
Through my research and years of experience running a towing company, I have learned that keeping an eye on pitfalls before starting a company can really go a long way. It helps you prepare for the worst and keeps you in the right direction. Also, when it comes to towing business, most work we have is not difficult work but hard work. So, if you’re ready to sweat and have a strong plan, then the sky is the limit.