Tow Professional

VOL4 ISS2 2015

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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Y our Money Many businesses will have problems in the first few months because the o wner runs out of money. That's why it's important to know what you want to accomplish before you start, so you know how much money you will need to accomplish your goal. It's important to know how much money you are spend- ing each month, and how much money you are going to make each month. If you're a big company you probably use some sort of accounting system to keep track of this for you. The question is how often do you look at your books and make changes necessary to increase your prof- its. Running out of money is a result of poor planning. Goals and Objectives In your planning process create goals and objectives for your business. Break d own goals and objectives by quarter – in other words, identify all of the things that must be done during the first quarter, the s econd quarter, the third quarter and the fourth. Look at the things I listed above and make them some of your goals. Measure Goals and Objectives All too often, once a business starts operating, the owner becomes too busy in the daily operations to take the neces- sary time to assess the progress of the business. It is fine to establish opera- tional goals and objectives, but you also have to measure how well your business is performing against those goals and objectives. Measuring against the identi- fied goals and objectives will tell the owner whether or not changes are neces- sary. Keep in mind that you goals can change based on business activity. That's ok, that's why it's important to monitor your business operations monthly. Watch Your Cash Flow There is an old saying in business "Cash is King". None holds truer than in towing. It's important to know where you are making your money and where you are spending your money. That's why monitoring cash flow is extremely impor- tant. It is really as simple as this: if you continue to spend more money than you Volume 4 • Issue 2 | www.towprofessional.com | Tow Professional 21

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