Before you start your own towing company there are a few things you are advised to consider before you get down to business. They range from something as simple as where to locate the towing business to something as crucial and important as who your customers will be. Coming up and starting a towing company can be both a rewarding and challenging process. You may be excited to get the wheels rolling and have the cash coming in but take some time and consider a few things before opening your door to others.
What Kind of Towing Company do you Want to be?
When running a towing company, the diversity in sources of businesses is very important and a key factor to think about. In this towing business the adage that says do not keep all your eggs in basket is important to note. Make sure you understand the potential sources of business or where the calls will be coming from. It is important to determine how profitable and helpful they will be in the success of your towing company before you even kick it off. It is also important to have a healthy mix of sources to protect you from being vulnerable to the flow of any source demand.
What Assets Will you have on your Day One?
Many new business owners make the big and expensive mistake of buying an expensive truck or a fleet of vehicles during their first month of being in business. Having to keep up with the truck payments and other big expenses during the first year of operation may not be the best path to success for you and your towing company. It has always proven not to be the wisest choice. There is the issue of fluctuation of fuel prices, employee expenses and other supplies may sneak up on you as a business owner therefore reducing chances of making promises. Always have a nice amount of money in your business at all time. This cash could go from accounts receivable, any cash advances for the body shop clients and any prepaid insurance premiums.
How do you Want Any Future and Current Customers to Describe your Company?
It is vital to work on building a brand rather than just the company. There is an abundance of towing companies that the consumer may choose from and most potential clients tend to select a company randomly and call to ask for a quote. Make sure you have your company stand out and having a good name and strong marketing plan. Remember you do not need to spend a lot of money for online advertising commitments or any annual yellow page business directories. Most advertisements you can do yourself without having to spend a fortune.
Who Will be the First Customer for your Towing Business?
Begin by building your contacts now. You do not need to wait for your business to be up and running before you begin printing your business cards and go around starting to introduce yourself to any potential customers. You can tell them three months in advance you are launching and you can even go ahead and ask them about their expectations of a good company. This will show them you are dedicated and able to provide good services. This way you can gather even more insight on things to do so as to compete with the fellow professionals.
Having a business of your own can be a great experience and it will also require hard work. Making sure you prepare for the common pitfalls before you open the doors of your company can help ease any stress and have you better prepared to take on the challenges that are associated with a tow company or business. It is however not difficult work but it requires hard work and dedication. Commit yourself to be the best when it comes to solving any customer problems by making sure you get the job done well. This will go a long way in ensuring your success and will give you a big boost over your competition.
Written by the staff of Tiger Towing in Columbia, MO.
