|
When the deck is stacked against you, it may
be time to change businesses. Successful entrepreneurs can often
transfer their skills to related fields.
Dear Small Biz Adviser
My husband and I run a towing business in New Jersey. The prices
we can charge are regulated by our city government. In 1983 we were
receiving $50 per tow when called to an accident scene or a disabled
vehicle. In the year 2000 we still can only charge $50. But our
costs to run such a business have doubled.
Also, many drivers are now members of AAA and
then only a towing firm that is an AAA "member" can tow the vehicle
and the owner of the vehicle has no out-of-pocket costs. No business
can survive when you are not allowed to increase your rates to meet
higher costs. At age 55, how does one turn the skills of towing
into some other profession? Any suggestions?
A Frustrated Tower
Dear Tower:
This has to be one of the most difficult inquiries I have ever read.
You obviously are in a no-win situation. However,
your attitude of digging yourself out of a hole is to be commended.
And don't be concerned with the matter of age. My attitude has always
been you're as old as you want to be, and the continuous changes
of the economy in the United States and worldwide have resulted
in millions of working adults shifting careers.
For three years, while teaching at the Entrepreneurial
Institute in Florida, so many of my students came from companies
big and small that closed down, moved to other parts of the country
or simply downsized. So you are not alone, and you won't be the
last to deal with this difficult mid-life crisis. In fact, don't
consider it a crisis: It is an opportunity to do something new and
different.
You and your husband have many years experience
as entrepreneurs. That you were able to survive 17 years with the
same price structure, combined with cost increases, is a testament
to your ability to run a profitable enterprise.
So let's consider a wide spectrum of ideas.
Having been in the towing business so many years,
you and your husband may want to consider an automotive parts store.
To do so independently would require significant capital for inventory
alone, not to mention store fixtures and leasing a building, so
you may want to consider a franchise.
Another idea may be to go into automotive repair.
I don't think I have met a tow truck driver who wasn't able to tell
me what was wrong with my vehicle within minutes after arriving
at the scene. Something to add on to the automotive repair could
be a service station. Again, this is a situation like auto parts
where a franchise may be the less expensive route to financing.
A third idea somewhat aligned to towing is the
equipment rental business. Many people, yours truly included, prefer
to do as much as possible to fix their own houses, dig their own
irrigation trenches and pressure clean their own roofs, rather than
hire someone to do the jobs. It is a type of business where you
meet many of the same types of people you towed off of AAA cards.
And I suspect your husband knows a lot about those types of equipment.
On the other end of the spectrum is turning
a hobby into a profession. For example, if the world of business
planning were to go down the tubes, I would truly be interested
in starting a business related to sport fishing, my absolute hobby
of choice. I wouldn't have any qualms about considering spending
the rest of my working life on or near the water, selling fishing
tackle, lures, bait and more to my fishing friends.
Perhaps the least-attractive alternative is
to apply for a federally funded job-training program. These agencies
constantly deal with clients in need of training for a new profession.
And my last suggestion may not be appealing
at all. Move your business out of New Jersey. I know the chamber
of commerce probably doesn't want to read that, but if you love
the car towing business so much that you don't want to consider
alternatives, what other choice would there be?
Your 17 years of endurance suggest you will
survive, and I truly wish you well.
Bankrate.com writers base their answers on our editorial
content and advice of financial professionals. We make no claims
or representations about the accuracy, timeliness or completeness
of such content, advice or the answers provided to you. Our content,
advice and answers are intended only to assist you with your financial
decisions. However, by its nature such information is broad in scope.
Your financial situation is unique, and our content, advice and
answers may not be appropriate for your situation. Accordingly,
we recommend that you get different opinions and seek the advice
of your accountant and other financial advisers before making any
final decisions or implementing any financial or investment strategy.
-- Posted: July 21, 2000
|
