How to Start and Grow Your Own Auto Tow Truck Business

Owning your own auto tow truck business can be an extremely lucrative business. Entrepreneurs that operate auto towing businesses typically enjoy stable profits. Auto tow truck business owners can begin their operation with one truck, a business plan, a business license and insurance. There is always a need for vehicles to be towed. This results in a stable, practically recession proof business for many business owners. On any day of the week there are a number of vehicles that need to be towed for a variety of reasons. Reasons may include the following:

Vehicles are repossessed.
Vehicles may be abandoned.
Vehicles are parked in no parking areas.
Vehicles are immobilized due to accidents.
Vehicles regularly break down due to mechanical problems.
Vehicles may illegally parked due to violating street cleaning regulations.
Vehicles may have been driven by motorists arrested for various reasons.
Vehicles may be illegally parked with major parking violations such as fire hydrant blocking, etc.

If you start your auto tow truck business with one truck you won’t get in over your head too soon. With one truck you can manage your costs and determine if your actually net income matches your projected income based on your business plan. This also gives you an opportunity to examine weaknesses in your business if any. It also allows you to determine your strengths. This self-assessment is important because if you are aware of your strengths and weaknesses, you can make adjustments where necessary.

When starting an auto tow service business you will need to establish hours of service. You may need to offer 24 hour service if you plan to secure contracts with local and state government agencies. Government agencies as well as many businesses request 24 hour towing service capability as cars need to be towed 24 hours each day.

You can successfully operate a 24 hour operation with one truck. However, you will need two drivers. This way the hours can be divided into two 12 hour shifts for each. Therefore, each person can be on call for twelve hours each day.

You must promote your business so you should have promotional material. This should include at the very least business cards. You should call on companies that need towing services. This should include auto repair companies and other companies that need towing services including government agencies.

As your business becomes more profitable you should look for ways to increase your income. This can be accomplished by hiring more drivers and purchasing additional vehicles. The safest way to do this is to add one additional truck and one or two drivers at a time. This is what many small business owners with limited capital choose to do.

Prior to purchasing another truck you should have determined that the business income is sufficient to accommodate the purchase of an additional truck and the additional equipment required to do the job successfully. Also, there are the increased insurance costs. All additional expenses should be taken into consideration. Taking the time to build your business slowly is often the best road to success.

Getting Accepted For A Small Business Loan

When starting a small business, one of the most important things to consider is financing. You will need enough money (or capital) to run your business until it begins to make a profit. One of the chief reasons that small businesses fail is lack of sufficient capital.

There are several ways to get enough capital to start and maintain a business but you first must decide just how much money you need. Do you need the money to expand or are you just beginning the business? Capital is especially critical in the beginning stages of a new business. Assess your risks, as that will affect your financing options and cost. Whether your industry is stable, growing or depressed it all affects how much money you can borrow and what interest rates you can get.

After assessing how much capital your business needs, you will decide whether you want equity or debt financing. Debt financing takes into account the company’s debt to equity ratio, the relation of the funds you have borrowed and those you have invested in the business. If you have invested a considerable amount into your business and have decent equity, it will be easier to attract financing. When a company has a less equity than debt, you’ll want to increase your equity investment for more funds so that you aren’t over-leveraged.

Banks, commercial finance companies, the U.S. Small Business Administration (SBA) and savings and loan companies offer debt financing. Historically, businesses have patronized banks for financing, especially for short-term loans. Banks will often turn down small businesses requesting long-term loans because of the risks involved. When a business applies for a loan, the lenders usually ask for the borrower’s personal guarantee as well as considering the business’s equity. This could require merely a signature or posting of collateral.

Most small businesses make use of equity financing. Commonly, the source of equity funding is from venture capitalists. These are institutions that risk money on small businesses, hoping for a good return for their investment. These venture capitalists may be individuals, government sources or financial concerns. One well-known example of capitalist investing is Silicon Valley.

Whether you decide on equity or debt financing, you will need to present a financial picture of your business. Any financial institution or investor will require documentation of your real or projected annual sales, how many people you employ, how long you have been in business, which type of business you have and who owns it.

You will need to put together financial statements for the past few years as well as current statements and submit personal financial statements of any partners, officers or stockholders that own twenty percent or more of the business. Any person or institution lending your business money will want to know exactly how the business will use the funds.

Lenders will scrutinize your financial statements carefully so the statements should be accurate and up-to-date. You will need balance sheets from the last three fiscal years, cash flow projections, personal tax returns for the past three years, income statements on the business’ profits or losses as well as accounts receivables and payables.

As you can see, it takes much careful preparation should you decide to apply for a loan. Your local SBA can be a tremendous resource in preparing for and applying for a small business loan.

What Is Life and Business Coaching?

What is Coaching?
Life coaching is a service that helps clients with life improvement, specifically working toward reaching goals. As income and education levels rise in our society, so does the demand for coaching. People are consistently looking for help in organizing and strategizing ways to reach their goals. People know, if they can reach their goals, they will have an overall better quality of life. Coaching has taken flight and has become an international service. Coaching is not only for individuals. Coaching is often done with couples, in groups, and for businesses. Often times businesses request “lunch and learns.” The company selects a topic, and during the employee’s lunches, a coach coaches them on this particular issue. Some topics include, team building, conflict management and diversity and sensitivity. Coaching services are offered face to face, over the phone and via the internet.

Coaching uses clients’ internal motivation and drive to propel them into reaching their goals. Goals are often centered on career advancement, life improvement, fitness and or weight control, increase sports performance, drug or alcohol rehabilitation, academics, parenting, enhanced relationship satisfaction, and adolescents. A life coach will help you to develop goals and minimize the barriers which block goal attainment. Together you and your life coach will review some techniques that did not work in the past, and revise the action plan in order to move forward. There is very limited focus on the past, and more focus on the here and now and future.

Many people are unaware of the differences between coaching and therapy. Both coaching and therapy focus on assisting people with goal achievement, however coaching places a strong emphasis on the future, where the client plans to go and the steps to get there. Therapy often places more focus than coaching does on the past and examines the psychological issues that have led to the problems. Coaching attempts to move the client forward quickly and works to remove barriers that hinder progress. Coaching also does not involve any diagnosis or treatment of a mental disorder. When selecting a coach, you want to ensure competency. A coach does not have to be certified to coach. Be sure you are reading reviews and checking credentials. Look for a coach who is certified, experienced and or has a degree closely related to the field.

Overall, you will find that coaching is a service that is structured to help you meet your goals. Your drive, determination and motivation will be extracted and together you and your coach will devise a plan that will quickly lead you toward goal attainment. Your coach will assist in organizing the pursuit of your goals and you will activate the plan. Be prepared to achieve!