Six Steps to Starting a GPS Tracking Business
Starting any new business is challenging and there are many factors to consider. But if you're considering starting a GPS tracking business, you're starting on a good track for success. A GPS tracking business has many factors that make it attractive for entrepreneurs, including the perk of recurring revenue from service subscriptions.
Before starting your GPS tracking business, there are several steps to take that will put your company on the road to success:
1. Pick a niche:
There are many kinds of vehicle tracking businesses. There are many kinds of fleets. There are many kinds of businesses that will benefit from the GPS tracking services you'll be able to provide. An important question for you to ask yourself at this stage is, "Who will my customers be?" It is tempting to say, "Well, anyone that needs GPS tracking." Resist that temptation. Not everyone needs GPS tracking, and going after everyone that does as a potential customer isn't a good strategy. Your business will be far more successful dominating a niche market, rather than trying to be all things to all customers. Your marketing and sales pitch will be more focused, effective, and successful if you're able to picture your ideal customer and focus your business around fulfilling their needs.
2. Pitch the right product:
Once you know your target clientele, you will need to develop your service offering. Will it be a subscription plan providing GPS tracking service? Will you provide installations for GPS tracking units? Will your company provide GPS monitoring and management of fleets? Again, the same principle as picking a niche will be true of picking your particular offering. Make an appealing product offering to your target customer. Don't start by trying to offer every conceivable GPS tracking company product and service. Instead, make a focused and compelling offer to your ideal customer.
3. Choose the right software:
No matter what kind of GPS tracking service business you start, you will need to provide your customers with a way to view the movement and position of the assets they are tracking or that you are tracking for them. Rather than trying to develop it alone, choose GPS tracking software that will scale with your business. Finding a software partner like Position Logic, with powerful software and proven tools, will serve as the backbone of the service you offer your customers.
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4. Choose the right hardware:
Pick solid GPS Tracking Devices to offer your customers. Installing high quality hardware for clients will benefit both your customers and your business. High quality devices require less service and maintenance and command higher margins.
5. Make the business:
Meaning, get the business license and hire a lawyer to take care of the paperwork. A tax attorney could be ideal for this step. You can handle most of the details of setting up the business yourself, but if this is to be a serious venture, you can save yourself many headaches down the road by hiring a lawyer to take care of the paperwork and other details that need to be perfect. Follow the rules. Follow the laws. Stay out of trouble.
6. Get your first customer:
Once you have your target audience, product offering, software, hardware, and business in place, it's time to start getting customers. In reality, getting a customer or customers to express interest in your idea and offering could and probably should come before making the business official. This can be vital in establishing your niche and reputation in a growing business.
Once you have launched your business and gotten your first customer, it will require hustling and hard work to grow your customer base and business. But if you're charging for the hardware, installation, and monthly fees for tracking, it will not take that many customers or tracked vehicles to make the business sustainable, profitable, and successful.
Curious to see how Position Logic can help you start and put your new GPS tracking business on the map? Request a free demo of Position Logic's GPS tracking software to see how our team of GPS experts make sure that you're in business for yourself, but never by yourself.