1. Executive Towing Business Plan
Executive Towing
16458 E Queen Creek Rd
Queen Creek, Arizona 85290
(480)564-5456
Executive Summary
Executive Towing is a add on to our existing towing company Phoenix Metro
Towing, that offers towing for any kind of vehicle with its special equipment.
Executive Towing will service to Queen Creek, Arizona and the surrounding
Phoenix metropolitan area. Executive Towing will grow into a business with 1.2
Million in income by the third year.
The towing industry doesn’t have a lot of competition because there are not that
many towing companies out there. But the competition that towing companies do
have don’t have a chance against Executive Towing. The reason why they wont is
because Executive Towing doesn’t only provide service, and towing but they also
specialize in High dollar cars.
Executive Towing differentiates themselves from other towing companies by being
able to provide better ETA’s, truck cleanness which is a main necessity in our
company, politeness, and having the ability to tow high dollar, and altered vehicles
with the proper equipment to keep from damaging costumers cars.
Executive Towing will attract and maintain a reliable customer base through there
great customer service. All employees will only be hired if they have had previous
towing experience. Also all employees are trained and responsive for providing
excellent service developing a long lasting bond with customers. This is very
important, especially in the towing industry where trust, honesty, and cleanness are
not the image of towing companies.
Executive Towing shoots to offer high quality towing services. Executive Towing
focuses on personalized service to its cliental by offering great customer service.
Additionally, Executive Towing ensures that they will be able to tow any vehicle on
the road this day. Finally Executive Towing has strong cliental with many
automotive roadside companies that will be reliable to keep our business going.
Keys to Success
Executive Towing’s keys to success will include:
1.) Great customer service
2.) Quicker ETA’s
2. Market Analysis
Executive towing is a division of Phoenix Metro Towing that will meet the need for
businesses and the public because the demand for towing is here in Arizona and the
economy is strong. There is a high population growth, transportation growth, and
constant demand for road system construction.
The bigger the valley gets and the more people we have that need towing services.
Local businesses already are familiar with the work and quality service we offer. For
every new car dealership or car repair shop, there is need for reliable e towing
company to service their clientele. For every apartment complex there is an
increased demand for impound towing. Businesses that have their own fleet of
company cars or trucks need towing services.
We have existing relationships with many companies that trust our work such as
Barrette Jackson Auto Auction, one of the most famous auto action in the country
that tailors to high dollar clients. AAA automobile club is an existing contacted
company that has encouraged our growth because they are pleased with our service.
We also have been contracted though AAA to service the Copperstate One
Thousand Vintage Car road rally for 5 years in a row.
Since the Sky Harbor Airport built their new state of the art rental car complex
Enterprise Rent-A-Car have contacted us, asking us to take on the work for their
airport location, which is the largest facility they have in Arizona. With all their
locations in the Phoenix metro area, they have over 100 branches. We currently do
service for them but do not have the work force to fully service all their towing
needs.
Make Growth Analysis
Out of the Arizona’s total population of 5,130,632. Maricopa County has a
population count of ,072,149. That means 60% of Arizona’s population lives in
Maricopa County also known as the greater Phoenix Metro Area.
Maricopa county is such a great area for towing because it is the fourth largest
county in the nation (by population) having a 44.8% increase in population and its
leads the state in capital income.
Service Analysis
There is a need for more service providers in the towing industry and we plan to
dominate it with a company that offers higher standard of quality service. Customer
service will be a key point in having a return customer. Some of the feedback we
have received from customer surveys next to friendly customer service is; response
times, cleanness of trucks and drivers, up to date and advanced towing equipment.
All these standards will be a factor in our success.
3. Presentation of our employees and trucks will play a key factor. Our trucks will be
kept clean and up to date with state of the art equipment needed for a changing
automotive industry as automotive design and technologies change year by year. The
employees will be presentable in a clean cut fashion with required company attire
and customer friendly.
The standard we have set for our response time Is with an average of one hour or
less for basic service. This has been proven an expectable standard not only from
our customer services but also across the county. This is better than most of our
competitors.
Marketing Income
Executive Towing plans to focus its clientele on larger companies such as, car
dealerships, emergency roadside companies, insurance companies, and larger
apartment complexes. These types of businesses offer a large quantity of work in
exchange for set pricing. They all are more reliable when it comes to paying for
services.
Secondary income will be from bank repossessions and storage fees. The income
can be very good in repossession work as long as the selection of clientele is chosen
correctly. Again, we will only focus on the larger banks an will be selective
depending on the fees they pay verses the time involved. Our staff is experienced in
repossessions, and knows which companies will be profitable for us.
Expected Revenue Streams
Executive Towing expected revenue streams will be in the one million dollar ranges
by the second year without any expenses added. The total profit by the second year
will be around five hundred thousand dollars. Based on the current market
opportunity with all the contracts Executive Towing will have more than enough
trucks to keep busy.
The way that we are going to achieve this five hundred thousand dollar profits is
with the contracts that we will have and all our personal clients. Executive Towing
believes that with just the contracts that we have with AAA, Cross Country, and
Enterprise Rent a Car we can make eighty eight percent of our income. The other
twelve percent will come from all of our other contracts, personal clients, and
miscellaneous things like impounds and repossessions.
The way the market is in Arizona, Executive Towing can make a lot of money in the
towing industry. In the future by about the third year we will be putting our
competitive bid in with Pinal County Police department to do impounds and
4. accidents. By the fifth year we should be making about four percent of our income
just from the police account.
That is basically what our revenue streams are going to be for the next five years.
By year five we will have profited about four million dollars.
Service to Market Plan
The management structure will consist of three total employees, one of them
including Anthony Harper. The reasoning for Anthony Harper being a employee as
well as CEO owner is that if Anthony Harper works it eliminates one less employee
that Executive Towing has to pay.
Also we will only have one manager, which will be Shannon McGregor, and one
assistant manager Dewayne Mardis. The manager will take care of any complaints
or problems. Also the manager takes car of making sure the drivers stay clean cut
and keep the trucks clean inside and outside. The assistant manager will take care of
any problems the employees have and make sure the calls get done in a timely
fashion.
The financial manager will be Francisca McGregor. The financial manager will take
care of all the billing to our customers. Also she will be taking care of our payroll for
the employees, and managing the accounts for things like expenses.
The tow truck driver employee’s job will be tow vehicles. The drivers will be
assigned calls based on how close they are to the customer. The reason for this is
because we want our customers to be satisfied with the time it took the driver to get
to the location. Once they get to the location the driver will take care of the service
the customer need on their vehicle. The employees will also be responsible for
keeping Executive Towing’s trucks clean.
5.
6. Roll Out Plan
Executive Towing is going to release their service to the market first by going to
local businesses and interview them to provide them with business proposals. Also
Executive Towing will be contracting with a few major roadside service companies
like AAA, Cross-Country, and National Automobile Club through competitive bids.
Through out the first year Executive Towing will set up booths at business expose
and at many towing, and repair shop exhibits to spread the word about our
company. We will also be buying lettering to on the side of our tow trucks to let the
public know who we are, what areas we service, and how to get in touch with
Executive Towing. We will also be making business cards to give to our customers
and local businesses that don’t know about us, or how to in touch with us if the
customer needs another tow or service in the future.
In either thing Executive Towing is going to do is create flyers, to let the public know
about our company and we will also be giving a 10% discount of the total bill for
whoever uses our towing services. In order to do this we will be going around to big
subdivisions and going door to door to give the flyers out.
The call process for Executive Towing is:
1.) Executive Towing how may I help you today?
2.) Then we will ask the customer the location of the vehicle, our estimated time
7. of arrival, and the estimated price of the call.
3.) We will then send over the call to the dispatcher so they can give the call to
the closest driver in that area to give the customer the service they need on
their vehicle faster.
Criteria for Success
To ensure my success my year five I will set many goals for the company. One of my
first goals is to over excellent service to all of Executive Towing’s customers.
Executive Towing also has set a goal to have ninety percent of our ETA’s under at
least forty-five minutes.
Our third goal is make at least six hundred thousand dollars in profits in the year of
two thousand ten. Also Executive Towing will have set rules that the trucks have to
stay clean inside and out. If one of the owners or mangers sees the truck and it is
dirty the driver will pay for the truck to be cleaned at the place the owner chooses.
The reasoning for this is that towing companies have such a bad rap of being dirty,
so if we keep our trucks clean the customers will most likely keep on coming back to
our company.
Another rule that will be mandatory is that all the tow truck drivers that we have
will be clean cut. Another thing that will bring Executive Towing to success is that
we be able to tow every car on the road today. The reason we will be able to this is
because we have the equipment to get under any car to keep the customers vehicle
from scraping on our flatbed. This will be one of our major success things because
no other company in the metropolitan area besides our existing company Phoenix
Metro Towing has air bags on their tow trucks.
So these are Executive Towing’s main goals to ensure our success in the towing
industry. If all of these things do come out to be successful than our company has no
worries about failing.
Modification Plan
Executive Towing’s Service should never cost more and earn less. We will do our
best to ensure ourselves with a profit of the total net income.
We expect to make a profit of at least $500,000 every year. To ensure this we will set
up contracts with many roadside companies, repair facilities, co-parts, and possibly
small high dollar dealership, like Diamondback Automotive.
Some of the ways we will ensure that we will make profits is by giving our customers
and contractors great service to keep them coming back. Another way we will make
8. profits is by accepting as many calls as we can handle and turning down the fewest
amount of calls.
Also Executive Towing is open twenty four hours a day, seven days a week, including
holidays. This helps because the customers will be able to tow their vehicles at any
time that is best for them, our if something happens on a holiday they know they can
still get service for their vehicle.
If Executive Towing does start to lose profits we will look for the cheapest way to
save money on expenses like tires, fuel, oil, repairs, and all of our other expenses.
Also we will be doing as much repair work on the trucks as we can before taking our
trucks to repair facilities such as, brakes. Also if we don’t have enough work to keep
our trucks moving we will search for more towing accounts. Some of the accounts
we could add if we need more work are, Maricopa County Police, DPS to tow any
vehicle that breaks down or gets into a accident on the freeway, and also lots of
different dealerships, and co parts places.