Tow Professional is a comprehensive publication for the towing and recovery market. It is mailed directly to more than 29,000 decision makers including owners, presidents, CEO's and principals of towing companies throughout the United States.
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b ring in, you will soon be out of business. Cash flow is all of the money that you take in each month minus all of your e xpenses. Cash inflow is cash sales and accounts receivables collected. Cash outflow is all monies paid for inventory purchases and operating expenses (rent, heat, hydro, salaries, mar- keting expenditures, etc.). Watch your money. Knowledge is Power Knowing where the industry is going will determine how you meet your goals and make money. Join an association, attend a trade show, or subscribe to "Tow Professional Magazine". These are great ways to know what is going on in the industry. Its changing and you better be prepared to change with it. What are the trends in your industry – is it growing or declining? What are new opportunities that can help you grow? Where can you position your business in this industry in order for your business to succeed? Will new technologies have an impact on your industry? I'm always surprised how many com- panies don't know where they are making their money. Know who your best cus- tomer are and reward them. Know who your worse customers are and give them to your competitor. Understand your industry will deter- mine where you are going in 2015 Be Different Customers need a reason to come to, or to want to do business with your com- pany. If your products or services are the same quality and prices as your competi- tor(s), why will people use your service? They already have an existing service. If you can offer a different or better service, better quality, lower prices, broader selec- tion, faster delivery, better location, etc.), prospective customers will want to do business with your company. Every business owner must objectively a sk this question "If I were a customer, why would I want to do business with this (my) company?" If you cannot identify t wo good reasons, then rethink your posi- tioning and your strategies. Know Your Competition Some business owners underestimate the competition. When I ran my business I always knew who my competition was and what they were offering. I never copied anything they did but it was important to know what they were doing. The best way to get new business is to offer something new. Don't ever let price determine your business. If you compete in price you will be out of business soon. You are a service provider and the best service wins all the time regardless of price. Make one of your goals to provide a new or improved service. Simply wear- ing uniforms, or driving clean trucks or improving customer service will put you ahead of the competition. Increase profit If one of your goals is to increase your profit margins it's a simple formula. Lower you expenses and raise your rev- enue. Don't spend more than you make. You would be surprised how many busi- ness owners don't know their expenses o r their revenue it's hard when you are running calls all day. One of your goals for this year should be to increase profits. T he first thing you want to do is identify all your expenses. I have some forms you can use to do this just give me a call. Once you know your expenses you will know how much money you need to cover your expenses. I will be happy to help you with this Pricing your services will determine your profit. Remember you are a service provider and if your services are good your customers will pay for it. Don't com- pete with your competitor concentrate on providing the best service in the industry. If your selling prices are the same as your competitors and their operating costs are lower, their margins will be higher. If that is the case and you get into a price war with a competitor, you will not survive. You will have to find ways to reduce the cost if you plan to last in this industry. The lowest cost producer will always win a price war. Poor Management Skills I teach this in all my seminars, your employees are you biggest asset. If you plan on meeting your goals your employ- ees are the one to make it happen. Frequently customers do business with companies because they like the people that they deal with in that company. If you do not treat your people fairly and with respect, you may have a constant turnover of employees. After a while, due to constant turnover, customers may become wary about dealing with your company. I fine managing employees is the hard- est job for most business owners because they never got educated in the skills nec- essary to manage. My website could be a good solution to improve your manage- ment skills. Treat your employees well and they will enthusiastically help to grow your business. I hope this helps you know what you want to be in 2015. 22 Tow Professional | Volume 4 • Issue 2 | www.towprofessional.com I igh ful alk The best way to get new business is to offer something new. Don't ever let price determine your business. If you compete in price you will be out of business soon. You are a service provider and the best service wins all the time regardless of price.