Roadside assistance business is basically helping a traveler who by some reasons is in trouble and needs assistance that can be of various types. For example, suppose you are traveling on a road in your car and suddenly your car’s tire gets inflated. This is where a roadside assistant will come and help you and in return he will charge you a certain amount. In the present times, the business of roadside assistance has taken a new surge and has become an area of investment from curious investors.
Roadside assistance is not limited to car assistance but has wide scope based on different issues and different places. Since the common mode of transport these days is road transport and there are millions of vehicles running on the road, it is obvious that some of them may get into trouble and require assistance. Some of the simple problems get solved easily but some of them require special help and that is where these roadside assistants come into play.
The market of roadside assistance has now increased to $6 billion and has much scope in times to come. Many of the travelers struggle to get help when they get into trouble on a lone highway. It is obvious that every traveler intends to ensure that his vehicle is trouble free but who can avoid the inevitable if its time has come.
Some of the Common Issues where Roadside Assistance is needed
- Changing inflated tires
- Refueling of vehicle
- Cooling of vehicle after excessive heating
- Mechanic help because of failure of machine
- Repairing certain parts of vehicle because of accidents
Such helps become boon at such point of time and you can charge double the money charged normally.
If you are interested to start a business related to roadside assistance then this article will guide you. To start a roadside assistance business there are certain steps you must take. Some of them are:
Studying your Market
Since this market is quite different from the rest and it is obvious that you are new into this business, it would be better that you study the market you are going to enter. Studying your market requires feasibility analysis of your proposed business.
Feasibility analysis deeply researches over the topic by going through all the possible aspect of the business, its pro and cons, suggestions on how the business can work, how to make profits, which region offers better market and which is bad, challenges one can face in the business, resources required to start business and lastly, the budget required. This whole study will give you a report that will be the base from where you will proceed ahead towards incorporating your business.
The Grand Business Plan
The feasibility analysis report will help you in drawing your business plan. This business plan will carry all the details related to your business. Some of the important points that a business plan carries are:
- Steps required to start your business
- Overview of the business
- Resources required
- Manpower required
- Investment required
- Probable challenges in the business
- Procedure to follow
- Return on investment
A business plan thus carries almost all the details that you require to start your business. Preparing a business plan is necessary as it will guide you while working on your business and it will also be helpful in inviting investors and seeking loans from banks.
Choosing the Area of Specialization
It is very necessary to choose the area of specialization while starting your business. Here are some of the common fields.
- Mobile Mechanic Service
- Roadside Assistance Service
- Passenger Car Towing Service
- Servicing Garage
- Wrecking Services for Motor Vehicles
- Light Weight Truck Towing Services
These are few of the most common services that a passerby needs on road. Based on your financial budget you have to take a call on what type of service you can provide. If you are new into this business and have limited budget then it is obvious that you will choose a business type that is simple and less expensive. Based on your business plan you can take the right call.
Competition in the Market
Competition plays an important aspect in every business and its success. If you are entering into a business that is highly competitive then chances are that you will struggle a lot unless you come up with revolutionary or at least smart ideas that are different from the rest. Other things that makes the difference is your standard of service and charge for your work.
The type of service you are going to provide also matters a lot because not everyone is as much active in the above mentioned types of service and you can always choose the less competitive one. Lastly, the location of your business also plays a major role in determining the level of competition.
The well-known business roads always have dozens of roadside services on their bay but newly constructed roads or the roads that are in remote locations or tough terrain have hardly any roadside assistance and this is where you can make an impact.
Choosing the Location of your Business
There are few factors that should determine the location of your business. They are:
Competition in the Market: A competitive location that already has dozens of roadside assistant services will make your business miserable and full of struggle as you will find hard to get your clients. In such markets, people mostly rely on well-known assistance services and even in that the profit margin becomes minimal given the competition. Therefore choose a location that is less competitive.
Roads that are newly constructed and have less Assistance Service
Roads that are newly constructed would obviously have less assistance service or even if they have any they will be less known to the people traveling through the road. This makes your job easy and you will get ample of opportunities to make your business well-known to the travelers. Roads that have tough terrain are also good choice as not many of the services would be found at such place.
Based on Budget and Comfort
It would be absurdity to expect you to start an assistance business miles away from your location just in order to satisfy the above two conditions. Make your choice based on your budget and feasibility.
Requirements for your Roadside Assistance Business
As you are going to start your roadside assistance service it is obvious that there would be vast range of requirements that will include mechanical equipment for servicing vehicles, machines, mobile vehicle to provide services to the aggrieved location, mechanics or manpower, tools, fuel, and other required items. Here is a brief detail about the probable requirements you will have for your business.
Customer Care Service
Only in few conditions your customer will approach you directly to your location of business and in the rest of conditions he will call you or contact you through email. Most likely he will give you a call or notify you through app if you have started that service as well.
In order to facilitate your customers you will have to start your customer care service, a dedicated group of people who are there to receive and assist your customers whenever required. A better customer care service will help you in gaining customer base.
After you get a call from the aggrieved customer it is time to help him at the location he is. For this you will need a vehicle that is equipped with all the necessary equipment, tools, fuel and machines that will be required to service the vehicle. A mobile vehicle can be any van or similar vehicle that can accommodate two people and the equipment required for use.
It would be advisable that you have more than one vehicle so that if two people call for help at the same time you can assist both in the same time. This will help you in catering better services.
Equipment and Tools
There is nothing much to mention in this section as any good mechanic can advise you to purchase the required equipment and tools. If you are into repairing cars, trucks and motorbikes then each of these motors may require different sets of tools therefore consult an expert and purchase such tools in the set of two for both the mobile vehicles you sent for assistance.
In order to fill air in an inflated tire you will require the concerned machine along with the motor. For welding purpose you may also require some machine. Consult an expert who will guide you to get the required machines. In case they are costly you always have the option of renting it.
A towing vehicle is the one that is used to pick those vehicles that are not able to move on their own. Like a car that has broken down and is unable to start, in such cases, a towing vehicle picks that car up and takes it to the servicing bay for repairing. Towing vehicles are mostly mini trucks or in case of picking mini trucks, it can a medium sized truck or JCB.
Mechanic and Manpower
A mechanic is the person who is an expert in servicing motor vehicles. Though he may be an expert in any of the vehicles, he is still good enough to service common problems of almost all common vehicles.
While you are on a hunt to get your mechanic, it would be advisable to go for someone who is an expert in servicing all kinds of vehicles like a motorbike, car or truck. An all-rounder will help you in reducing expense for hiring many mechanics. It is not possible for a mechanic to service all types of cars from different brands. In such cases you can get them through the required training.
Starting from Scratch or getting a Franchise?
Both options have pros and cons and it depends entirely upon you to take a call. There is nothing bad about starting from scratch as all the profit that you make will be entirely yours and you would be the boss of your own.
On the other hand, a franchise model will remove the initial phase of trouble like managing to get your business started, struggling with the management and in getting customers, the initial phase of building your business, being new into the business has also many troubles as you are not much aware of the situations, etc.
A franchise model will help you in above all cases but is a bit expensive and comes with some limitations regulating your freedom. Make the choice after consulting experts based on your conditions including your budget.
Registering your Business
Though it is not much necessary to do so but you should go for registration with the necessary documents. You may also require a certificate of specialization in this business which you obtain from the concerned authority after getting trained. Registration helps you in building your own brand with a majestic business name and logo. If you have plans to expand then registration is a must.
The business plan you have created would give you the correct perspective on financial requirements. You can arrange the capital that will be invested either through your personal savings or through bank loan. You can also ask interested parties to invest in your business.
Return on Investment
It would be unwise to expect good returns in the initial days of your business as such conventional businesses are time taking. Yet you can maximize the chances of healthy rturns by advertisement and marketing. You can list your business on apps that are made for roadside servicing which locates that nearby servicing business near the location of your customer. Ads on hoardings on the roads, through posters, etc. can be helpful in attracting new customers. Your location is one such big reason to get new customers. Be patient in your early days and work hard with smartness and your success is guaranteed.
The last advice would be to focus more on service rather than making profit especially in the initial phase of your business. Win the trust of your customers and you will definitely make an impact in the market.