6 minute read
Where is the $$$$$
When I started TowTrax, I knew I had a great idea that would change the industry. I had a strong developer, and a few good people to help me with the tow companies. I knew I needed a big investor to help me get this off the ground. Other companies had investors willing to give over $50 million. I held a meeting at my office building and invited all the tenants to come and see a demo of my product. I had 22 people in the room, and at the end of the meeting I had three major investors who were willing to invest in TowTrax.
I thought we were on our way when the next day covid hit; all my investors went and hid. I needed money to keep on going so I looked for other ways to get it. I called on the following:
1. Friends 2. Family 3. Investment firms 4. Banks 5. Tow Companies 6. Others
Our goal was to raise $240,000; I was able to raise that. I had good luck with friends and family; they are rooting for me to succeed. Investment firms were a waste of time. I saw an ad on Facebook from an investment firm that would lend me up to $5 million. I filled out all the paperwork and jumped through all their hoops. They came back and said they could lend me $118,000 paid over 18 months with weekly payments and an interest rate of 29%. Once I applied with them, I heard from no less than ten other companies all wanting to lend me money. It was crazy with the deals they offered. High interest rates with short term payback.
I decided to go to banks. They have lots of money. Again, a waste of time. If you don’t need money, they will give it to you. They wanted a personal guarantee from me on the loan. If I had a personal guarantee, I would not need a loan.
My next step in looking for seed money was tow companies. I thought I could raise money from the industry. We wanted to raise one million to keep us going. I reached out to tow companies because they saw what I had developed, and they knew there was a need. I set up a plan
where these tow companies could purchase stock. I had a tow company in Oregon, that I did not know, purchase $375,000 in stock. He is now one of my best friends. Another investor in Alabama purchased $100,000 in stock. Another investor in Texas purchased $100,000 in stock. He had already invested $200,000. I had tow companies in Minnesota, Michigan, Ohio, Pennsylvania, Wisconsin and another in Texas, all of which I did not know, purchase stock in TowTrax. We raised our million.
I thought we were out of the woods when the price of gas shot up. This kept consumers from traveling, and tow companies cutting back on their tows because of the gas price. When our volume dropped, our revenue dropped. This made it hard to operate and grow because I needed money to grow. There were two companies that had over $50 million in investments, and they are struggling. They came to us for help. We have added them as customers, and this should triple our growth along with three other potential customers we are adding.
This is good for the tow companies because we are sending them more tows. We are expanding our markets from 13 states to 31 states and from 17 cities to 151 cities. We are adding tow companies every day as we continue to grow. Our projections for 2023 are outstanding. For our investors, the price of the stock has gone from $1.19 a share to $2.00 a share and should continue to increase in 2023.
With volumes increasing, this also means our expenses are increasing. That means we need more money. We are talking to several venture capital firms all showing a high interest in either investing in TowTrax or purchasing TowTrax. These deals
BUILDING THE BEST WIRELESS TOW LIGHTS IN THE BUSINESS!
36''
23''
LIW-LDTL This highly durable wireless tow light bar was designed for light and medium tows. Our newest 23” unit has a nearly indestructible polyethylene case and a steel handle for ease of use during tows. It also has separate turn signal lights which are required in several states. The LIW-LDTL includes all of the same features of our larger, heavy-duty wireless light bars! LIW-36STR-7R
This 36'' wireless tow light features two amber/white strobes (with a separate switch) for additional driver safety. It’s easy to use, just plug the 7 pin transmitter into your vehicle’s connector; strap the bar on the disabled vehicle; hit the ‘on’ switch, and you’re ready to tow. To save battery life, the taillights do not light when the bar is initially turned on—they work in concert with your vehicles taillights (left and right turn, stop, and taillights).This light bar features DOT LED lights, automotive grade circuitry, and quality construction unmatched in the industry.
ALSO AVAILABLE IN: 48''
LIW-48RFS-7R
Proudly Made in the USA
60''
LIW-60RFS-7R
Contains Auto-grade circuitry Individually serialized to prevent cross-talk & protect against theft!
Toll Free: 800-490-3158 CusterProducts.com
will take a few months to develop as we continue to look for operating capital. If you are interested in purchasing stock or helping us with a line of credit that pays 15% let me know. (459-774-0340).
All of this being said we are proud of what we accomplished. Starting a business from scratch with no working capital, a pandemic, and a gas shortage while still having the success we are having is incredible! Being in this industry as long as I have, I feel we will continue to be successful and have a major impact on the towing industry.
If you are planning to expand your business, purchase new assets, or purchase other tow companies, I urge you to look at what could happen in the first two quarters of next year. I just heard in the past two weeks that the beginning of next year looks bad, and we could be in a recession. Interest rates will be high, inflation will be high, and money will be hard to find if you don’t already have it. We made it through the tough times so far, and we feel that 2023 will be a great year for us. We anticipate tripling the growth, and new partners giving us the working capital we need.
The staff at TowTrax wishes you and your family a Merry Christmas and a Happy New Year, and above all be safe.
OVER ONE – LOSE NONE! Our mission is to:
