Starting and growing a tow truck company can be a big money maker. The key things to take into consideration when growing your business is to do business in your home city along with the surrounding cities around you, and to scale the business by investing in more tow trucks and employees. It can be tough to know when to invest into growing your business and expand to other cities so we wanted to give you a few tips that we’ve learned along the way of owning our tow truck companies.
The first and hardest thing to gauge is when to grow your business. There are many factors that go into growing your towing business and we want to make it clear to you that there’s not one right answer for everybody. A few things we think you should take into consideration are:
- If you invest in more tow trucks and employees, what marketing do you have in place that will guarantee you will be able to put those trucks and employees to work without losing money?
- What is your cash flow going to be after investing the money to grow the business and what will the projections be the next year?
- If you’re growing your business into surrounding cities, what marketing plans do you have in place for them and what lot of land are you going to use to store the impounded cars?
These questions might seem obvious to most but for some of you it will make the difference between you being successful or failing in your business. A lot of tow truck business owners are worried about borrowing money and only want to expand once they have sufficient funds in the bank. If you have little risk tolerance, there’s nothing wrong with going this route. For those of you who are experiencing some success and have a taste for the money your business is bringing in, expanding quickly by borrowing money can be an extremely viable and smart option. Some of the biggest companies in the world, like Coca-Cola for example, is in debt billions of dollars! However, with the greater risk comes a greater rewards so be careful when making these business decisions.
What do we recommend?
If you’re looking to expand this is what we would do… We would have different lead generating websites in all the cities we wanted to get into. We would make sure those websites were ranking for all the keywords we wanted (read this article to learn more) and also make sure that our company is at the top of the Google map pack. Once this happens you will probably be getting more business than you can possibly handle. Now you are ready to invest into more tow trucks and more employees to handle the influx of business. This is the safest way to grow your business because the demand is already there, and you are simply investing in fulfilling the demand. Once you’re getting those leads from your websites coming in make sure to follow our tips on how to close more sales to make sure you’re maximizing your profits! Please contact us with any input, thank you for reading!