Information is Everything

financial analytics, business man working with charts, fintech

I wrote an article a while back where I talked about having the right information that will help you to make decisions. I will talk about my company first, and then give you a few tips on how to use the information you have to grow your business.

We decided that we want to increase revenue over the next three months.  We have been running customers for just over a year so we have data to look at to help us make decisions. Our goal is to double our tows over the next three months.  Here is how we can do that using the data we collected. Here is the data we are looking at:

1. We know how many markets we are in

2. We know how many tows our customer gives us for each market

3. We know how many tows we are completing in each market

4. We know how many tow companies there are in each market

5. We know how many tow companies are registered with TowTrax in each market

6. We know the tow rate the tow companies are looking for in each market

It’s fun when you have current data to work with.  Take your company and the data you have and identify what you want 2022 to look like.

Tip 1. 

Set your goals.  Identify how much you want to increase your revenue, what expenses you want to cut or what new expenses you will have.

Tip 2. 

 Identify the resources you will need to execute your plan. It might be adding staff, adding additional trucks, or making other investments

Tip 3. 

Write your goals down so you look at them every day.  Get your staff involved.  You will be surprised at what they will bring to the table to accomplish your goals.  If getting a new truck is a goal, hang a picture of it on the wall.  This may motivate your drivers to do more.

In order for me to double my volume, I need to add staff; I need to make some system changes that allow my app to be more user-friendly to tow companies. (Allowing the tows I get from my customer to go through their dispatch) There will be travel involved such as tow shows or sales calls.  The system changes are completed so I just need to add staff which will be a big step in reaching my goals.  As the driving force behind my business, I need to make sure I am in a position to do the things necessary for me to accomplish my goals.

Tip 4. 

As you well know, towing can be stressful. You have to make sure your health will not be an issue that could cause problems.  When you set your goals make sure you have the resources necessary.

Tip 5. 

Make sure you pay yourself first so you have the motivation for you to continue executing your plan. Go to a tow show and make it a mini-vacation and an educational experience that benefits you.  That is an expense that will pay great dividends.

I’m working with two small tow companies that included my company in their future growth. The company in Detroit started out with 2 to 3 tows a day.  He put together a plan and set goals that have allowed him to grow his business to 40 calls a day with TowTrax.  We have talked and he wants to grow even more.  I’m working with him to make that happen.

I have a small tow company in Syracuse that started out good with TowTrax.  Then inflation hit and the price of gas is creating a problem for him.  Then to make matters worse a competitor came into town and is offering tows at 40% less than the market allows.  This affects all the tow companies in that area.  What he did was come to me and told me he needs more money from me to offset the business he is losing.  I explained to him some things he can do to get back on track.

Tip 6. 

I know millionaires that live on $55,000 a year.  That’s how they became a millionaire. The same is with towing.  When you start facing problems like my friend in New York I told him other things he can do to generate more business and make more money without adding additional expenses.

Tip 7. 

Find alternative ways to make money do things like:

a. Store cars for other people

b. Rent u-haul trailers out of your storage yard

c. I had one friend whose wife opened a tanning salon at their storage yard.

d. At your storage yard you have security and you are 24/7. Find someone who needs that environment.

In my business I have markets where I do not get many tow offers, so I will not spend a lot of resources in those markets.  On the other hand, I have markets. I am missing 20 calls a day because I don’t have the tow companies to support the volume.

Tip 8. 

Think big and out of the box.  I want to double my volume and I have to make sure my goals are realistic.  They may not be realistic but when I look at the data closely and come up with a plan, they are very achievable.

Tip 9. 

Don’t be frightened by failure

With my business, I will address what I am paying the tow company so they want to use TowTrax for their tows, and I will address the fees I am charging my customers allowing me to increase the tow fees.  I provide a great service and I have to show the value to both the tow company and the customer.   Using the data I have will allow me to make a few simple changes allowing me to reach my goal...

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Dan Messina
In 2003, Dan Messina started his own towing company starting out with just one truck and no accounts. In two short years, he was number one in the industry. In 2006, he founded Southwest Tow Operators, one of the largest tow associations in the U.S. We are proud to share Dan's business advice with the towing industry.