Growing Your New Business

The Small Business Administration says that “It takes at least five years to see if a company’s going to survive … sometimes more.” For the entrepreneurial tower, overnight success is a pipedream. Long hours, mechanical set-backs, lack of funds, family issues, and more … equates to slow growth.

The towing and recovery industry is a hard-knocks business that demands complete focus and hard work to see the light to profit maybe around year three. But not all tow companies survive to year three. While the industry can be lucrative, it’s a cash-eating machine that takes its toll on early profits before that third year. While some profits may be seen … it’s common that new owners roll menial profits back into operations. Tow trucks aren’t cheap and even if finding a used one makes good sense, a broken tow truck with mechanical issues is the first place where those intended profits drain the company’s coffers … a truck that goes down unexpectedly is a priority that can’t wait for eventual repairs.Owners must spend considerable time bringing together resources, people, capital, know-how, sourcing, vendors, infrastructure … and then the owner must find the first customers. Because other local tow companies may demonstrate tough competition, finding new customers is no easy task. Breaking through the “good ol’ boy” network is sometimes a hard and difficult path … especially for new companies vying to become police towers.Offering quality and timely service aren’t always enough, as the effects of cold calling and drop-in visits oftentimes can’t overcome the competition. It takes drive and motivation to succeed in chasing prospective new customers and accounts. Over time, and as your company’s services improve, your company gets better at securing the all-important repeat business. Eventually, business grows through aggressive marketing and, hopefully, word of mouth.As the new tower in town, expect growth to take time … at least several years. If you’re not prepared to fully invest in your tow business for at least three to five years, you might consider another trade. Set long- and short-term obtainable goals.Avoid the urge to grow too fast. Don’t start thinking about adding another tow truck and hiring employees until your foundation is solid and growing. Business growth is like eating an elephant: it’s possible by taking one small bite at a time.