I launched a towing business a few months ago.
I got this crazy idea: Spend $30/day on Google ads for “fast & affordable towing”.
Then get paid to bring those broken cars to one of our 35 auto repair shops.
In May, I bought one truck and jumped in.
Guess what? It worked!
From May to August, we’ve generated $58,000 in (very profitable) repair work
However, the towing business itself incurred a loss.
We quickly learned that one truck isn’t enough.
It can’t generate enough towing-only revenue to cover the fixed cost overhead.
My solution? Doubling down by buying two more tow trucks for $152,000.
I shot a YouTube video that shows the entire process, breaking down the exact financing strategy and tax advantages that make this deal even more attractive.
In business, you have to invest money to make money.
If I said, “I must maximize this first truck before I buy a second,” I’d be on a hamster wheel forever.
In towing, speed is everything.
When a customer calls with a breakdown, they want help NOW.
We’re constantly saying no as soon as we say yes.
This principle applies to ALL mobile businesses – window washing, power washing,and landscaping.
With one truck, your team drives all over the city.
Higher fuel and payroll costs with lower sales.
With multiple trucks, I can send one guy north, another south, and the last east/west.
We can say yes to more jobs with faster response times.
More revenue AND lower payroll as a percentage of revenue since we’re more efficient.
In this business, every minute we’re not towing costs money.
It’s more profitable to take 30% less per job to drive volume if we can increase our capacity to 90% efficiency.
More jobs = more broken cars into our shops
Cheers!
Brian
P.S. I’m trying some new “behind the scenes” vlog-style videos instead of my usual studio setup.
Let me know what you think – if you like this format, I’ll do more.
