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.

Invoice Factoring and Accounts Receivable Financing for Small Business

Small Businesses are still suffering from a lack of available capital for expansion, purchase of new equipment and for just making payroll until a client pays.

First a little background. Factoring, or the act of selling invoices at a discount, is a financial product that has been available since the birth of merchant and customers. There are many factors in the world and many focus on specific industries or even segments within industries. Like Temporary Staffing, Trucking, Software Developers, Coders, Oil and Gas services and more.

Accounts Receivable financing, another name for Factoring, requires a small business owner to sell an invoice for an advance against that invoice. The factor will typically provide an advance of between 70-95% of the face value of the invoice depending on a few things. First, the strength of the Account Debtor or the person that owes the small business money, for a service or product. The Account Debtor is typically another business.

The process for starting to factor is much like obtaining a commercial bank loan or home loan, expect that Factors will work with clients who aren’t bankable or able to secure financing from a traditional community bank, credit union, or national bank. A basic application is completed and information is provided for the underwriting of the invoice and client. These documents will usually include the businesses financials, information on the account debtor, a background check, and documents related to the invoice, contracts, purchase order and more.

Once all the documents are gathered the factor will complete its due diligence and underwrite and quote factoring the invoice. The underwriter will also recommend a term for factoring, since you will be putting your future invoices up for security in the event the invoice doesn’t pay, or some other calamity prevents the payment of the factored invoice.

Factoring can be expensive, and it can also be very reasonable. When comparing the cost of financing, merchant advance loans, credit cards, and other typical small business financing, factoring may actually be a bit cheaper. Again the cost to factor is based on the risk and likelihood the invoice will pay the factor. The cost is also determined by the credit, collateral, character of the small business requesting the factoring.

The easiest way to look at factoring is figuring its cost on a monthly basis. It’s not uncommon for a factor to offer very attractive rates or at least advertise them online .35% to5.55% but the reality is those are 10 day rates or something near that. A typical factor will charge between 1.5% for the highest quality factor to over 5% for risky invoices that have a higher risk profile.

Top 5 Tips for Local Businesses to Rule the Local SEO Competition!

More and more people using Google search are seeing more local results thrown up on the top. They are bombarded with local options for nearly everything they search especially when on a mobile device. Hence now it is more important for businesses with a local base targeting to target and top the local search metrics. Here we are listing top 5 Tips for local SEO to top local search results and boost their traffic and business.

1) Claim Your Online Listing: This is the first and the most important step. You need to claim your listing on Google Places, Bing Local and Yahoo Local. Once you fill out your details after creating an account on these platforms, you will need to verify your business details through a straight forward process of post card verification or a phone call. Once it is done you are ready for the next steps. If you don’t have a physical address on some location or don’t want people to know your real business address and have reason to keep it discreet you can use certain services which provide you with business mail forwarding and other services (please keep in mind that use of these services is in the grey area and should be avoided for all practical purposes.

2) Optimize your Listings: Putting in accurate and detailed business information such as address and phone number, is of utmost importance. Opening closing times and days of operation etc. are required. Description of your business activities is very important as well as using your keywords in the text as well. Use high quality images and videos of your business. This is of utmost importance as it plays a major role in enhancing user experience. Leaving any of the important field in the listings blank is not recommended. Accurate information that is optimized to help you rank well and also to attract your potential clients and impress them is the key to proper local SEO.

3) Online Business Reviews: Reviews are another important part of your local Listing. Reviews play a super crucial role in local SEO and most of the local listing sites are completely fine with businesses requesting their customers to leave a review. You should request your customers for writing a review through e-mails, invoices, contact form and thank you pages, among other places. Keep in mind any review is good for business, even negative ones. However keep in mind not to have too many bad reviews. No business is perfect and negative reviews are part of business life. Many businesses are afraid of bad reviews, but keep in mind no company can keep 100% of their customers happy. Another important thing to remember is that many potential customers may find it suspicious if a company only has positive reviews.

4) Optimizing your Website: Optimizing your website is also crucial. Display a local phone number prominently on your homepage and landing page in text format (don’t use image) and mention your local business address again in text format only. Make sure that the phone number is a real working local phone number with local dialing code mentioned and not an 1800/800 type of number. Also make sure to use the full mailing address of your business and make sure that the details are same as used on the listing and there is no difference. Make use of schema to optimize your website. Use multiple landing pages if your business caters to different geo locations. Optimize each page according to the targeted location.

5) Local Citations: It is important to list your business in the local directories and local classifieds sites. The search engine algorithms still depend on these to gather more information about the business and their popularity. So use sites such yelp, yellow pages etc. to list your business and help boost your local rankings.

These five top tips will help you in your endeavor to boost your online presence and help you beat the local SEO competition.