Why start a towing business in the first place?
Consider the question of why start a towing business in the first place. What is the point of buying a tow truck and devoting 80 hours per week to your business? Is it because you want to be the white knight riding in to save the day, or is a towing business simply a vehicle for getting what you really want? I certainly hope it’s the latter because if you don’t have a specified goal, mission, or objective in mind, you’re like a rudderless ship that drifts at the shifting wind and sea.
What you do every day should be in support of a specific objective or mission. I’ll go with the word mission because a man on a mission cannot be stopped. So, the first step is to determine your mission. And finely define what you want. If your mission is to create a business that provides financial security for you and your family, what exactly does that mean? Does it mean having a million dollars in an investment that continually grows? Or does it mean having a steady dollar amount of profit every month? It’s important for you to know exactly what you want. And then constantly remind yourself of it.
Focus on what you want by having a written mantra that you read and repeat every day. After doing this for a while, you’ll begin to recognize the negative aspects of your business that are holding you back, and you’ll start to look for ways to improve your business. While you might accept certain clients, like motor clubs, for a time, you’ll only do so if it further propels you to the achievement of your mission. Having a mission forces you to know your numbers.
Why start a towing business that gets you nowhere?
It doesn’t matter what business you’re in, you don’t even need to be in business for yourself, but if you want to get somewhere, you must have a mission. Because if you don’t, you’re going to bounce from one thing to another and never create the life you want. Your business is just a vehicle designed to get you where you need to go. If you drive a car that has a bad engine or needs repairs, it must be fixed before you can get where you’re going.
Examine your negative feelings regarding money. I can’t count how many times I’ve heard from people who want to start their own towing business, “I don’t want to make a million dollars. I just want to make enough money to live.” Like having a million dollars is bad or something. Of course, I get it. Maybe your upbringing or your religious background has instilled in you the idea that money is the root of all evil. If that’s the case, you need to look up that bible verse again for clarity. It says, “For the love of money is the root of all evil.” Meaning putting money above your family and God is wrong.
So, if you’re mission is for your family to be financially stable, then having a million dollars in an investment is putting your family’s welfare above the money. Do you see how that works? If you remain conflicted and think that having a million dollars is bad, then how are you ever going to be successful? Once you understand that having a lot of money is in your family’s best interest, then it will be much easier for you to work toward completing your mission.
How can I save money while growing my business?
Next, there’s the question of saving money while growing your business. In my mind, the answer is clear. You simply put a small amount of money every week or every month into a savings account and continue to grow your business. Stash your mission money away until it’s large enough to put into an investment. Right now, as the economy seems to be flailing in the wind, it looks like gold and silver are good investments. And as you grow your business and more dollars land in your bank account, simply increase the amount of mission money you stash each week.
Of course, there’s the argument that you might be able to grow your business faster by taking the money you’re setting aside for your financial investments and using it to invest in your business. While I understand the logical side of this argument here, I disagree. When you put money into a vehicle (investment) that will eventually allow you to step away from the day-to-day operations of your business, you’re buying peace of mind. Not only that, but you’re also creating and reinforcing the habit of saving. Peace of mind and the habit of saving are much more valuable than buying a new truck, for which you may or may not have the calls to justify the expense.
I’m not saying that you shouldn’t continue working on increasing the size of your business. You absolutely should be building relationships and adding new business and trucks. I’m simply saying, don’t do anything that causes you to stop working toward the achievement of your mission.
Lastly, there’s this idea that rather than setting aside money and investing it for the future, a business owner should pour every dollar of profit back into his business. The rationale is that once the business has reached its apex, then the money will flow like a waterfall, and he’ll be able to take out tons of cash. Unfortunately, it doesn’t always work out that way.
Besides the fact that you’re not taking advantage of compound interest, life always seems to get in the way. What if, right when you reach the height of your business, a large competitor sets up shop next door? Or maybe a son or daughter wants to take over the business. Of course, you could sell, but because you love them, there’s the tendency to cut them a deal. Rather than letting these unforeseen circumstances guide your actions later in life, take control now and work on your mission.
You should view your business as a vehicle to get what you want. Rather than being the business where you take every little slight or setback personally, look at these hiccups as opportunities to get better so that you can make more money. Do you have negative feelings regarding money? If so, that’s the first thing you should work on. Money is not evil in and of itself, it’s simply a tool that, when used right, provides security and peace of mind for you and your family.
Working on your mission and growing your business are not mutually exclusive. In fact, I would argue that disciplining yourself enough to put money aside every week will help you to grow into a more disciplined person in all areas of your life. When you see money growing in your bank account, you’ll see your customers and clients in a new light. Your work will cease to be the day-to-day drudgery of getting up and towing cars and trucks because you’ll be working toward a worthy goal.
So consider the types of tow trucks you’ll need when you’re just starting out and work toward getting it paid for as quickly as possible and then begin growing your business using the methods discussed elsewhere on this website.