How to Start Your

GPS Tracking Business

positionlogic.com The People Powering IoT

 TABLE OF CONTENTS

1. Why Start a GPS Tracking Business

2. Get Focused! Pick a Niche For Your Business

a. Find a Customer
b. Choose a Business Model

3. Develop Your Product and Your Pitch

a. Product
b. Pitch

4. Test The Waters

5. Land Your First Customer and Form Your Company

a. Establish the Company
b. Create a Brand

6. Deliver Results

7. Do What’s Best For Your Customers

8. Grow, Grow, Grow

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1. WHY START A GPS TRACKING
BUSINESS
The market for GPS tracking services represents a
fast growing and relatively untapped opportunity
for entrepreneurs and small businesses. There are
currently more than 12 million commercial vehicles
registered in the US alone, and in Latin America,
the number approaches 20 million. Currently, only
a small percentage of these vehicles are backed by
fleet management software – but this is beginning
to change.
The fleet management market alone is expected to
grow at a CAGR of 24% to a value of $25 billion USD
by 2019. In Latin America, it’s expected to grow to
2.3 million units, at an astounding growth rate of
over 20% per year. Increases in mobile technology
& wireless connectivity have created an increasing
number of applications for GPS tracking. These
numbers are indicative of the growing opportunity
for GPS tracking services in just location monitoring.
GPS tracking software as a fleet management tool
involves much more than just location tracking.
While location monitoring is of central importance,
there are other equally valuable pieces of data that
GPS tracking software can collect, interpret, and
use to help your potential fleet management clients
improve their own businesses. By offering GPS
tracking, you can help fleet managers:
§§ Increase productivity
Know their vehicles’ locations and thus utilize
the most efficient routes.
§§  educe fuel costs
R some initial steps necessary to launching a GPS
Understand how inefficient routes or excessive
speeding are affecting their fuel costs.
§§ I mprove driver safety
Keep drivers secure with panic buttons and
improve safety by knowing when a vehicle is
stranded on the side of the road without cell
phone service.
§§  rovide better customer service
P
Create happier customers with faster service.
Purchasing GPS tracking services is an easy decision
for most fleet managers because it quickly pays
for itself through increased productivity, reduced
costs, and improved customer service. As fleet
owners begin to recognize the benefits GPS tracking
services can have on their bottom line, more are
going to begin adding the technology to their fleet
management tool kits.
If you’re considering starting
a GPS tracking business,
know that you’re starting off
on a good track towards
entrepreneurial success.
Starting any new business is challenging and
there are many factors to consider. But if you’re
considering starting a GPS tracking business,
know that you’re starting off on a good track
towards entrepreneurial success. A GPS tracking
business has many facets that make it attractive
for entrepreneurs (which is probably why you’re
reading this guide), including the perk of recurring
revenue from service subscriptions. Before starting
your GPS tracking business, there are several steps
to consider that will put your company on the
road to success. This guide will walk you through
tracking business.
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 2. GET FOCUSED! PICK A NICHE
FOR YOUR BUSINESS.
FIND A CUSTOMER
An important question for you to ask yourself in
this early planning stage is: “Who do I want my
customers to be?” There are many kinds of fleets,
and many types of businesses that will benefit from
GPS tracking services.
While it may be tempting to answer: “I want anyone
that could use GPS tracking as my customer”, resist
that temptation, at least to start out with. Not
everyone needs GPS tracking, or even needs the
same type of GPS tracking. Pursuing every single
business that could possibly use a fleet tracking
solution as a potential customer is a foolish strategy
and will wear thin your initial resources. Your
business will be far more successful dominating a
niche market, rather than trying to be all things to all
clients. Your marketing and sales pitch will be more
focused, compelling, and successful if you’re able to
picture your ideal customer and direct your business
towards fulfilling their needs.
In an effort to hook customers and generate mass
appeal, many business owners will fall into the
trap of believing that their products must be for
everyone, and that they must focus on providing
GPS tracking services to every business with a
vehicle. Obviously, this is not focus at all -- and
many of these entrepreneurs will subsequently
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flounder because they don’t know who their real
customers are.
CHOOSE A BUSINESS MODEL
The GPS tracking industry has a large and diverse
supply chain, and there are many kinds of GPS
tracking businesses that you can start within the
industry. From hardware manufacturers, to software
developers, to GPS service providers, to system
integrators, and more, there are many opportunities
for success in this fast-growing industry, and there is
no need to feel you must master all of them.
Just to get you thinking, here are six ideas for GPS
tracking companies you could start:
§§ Fleet management
Many companies have fleets of vehicles that
need maintenance and service. Providing those
companies with GPS installations and vehicle
tracking in addition to general maintenance
Your marketing and sales pitch
will be more focused, compelling,
and successful if you’re able to
picture your ideal customer and
direct your business towards
fulfilling their needs.
 could be a compelling offer as a means to lower
fleet costs.
Because you do not have the
resources or expertise to be
a master of every business
segment, you should align
yourself with companies that are
experts in their respective fields.
§§  PS device sales and installation
G when equipment is moved unauthorized off
Companies with fleets need to keep track of
these valuable assets. Selling GPS tracking
devices along with installation, maintenance,
and tracking is a service that will remain in high
demand, as companies look to maintain contact
with their assets.
§§  ispatching service
D segment, you should align yourself with
Many local service providers like plumbers
and HVAC companies have many technicians
in the field, but would benefit from a central
dispatch hub that could schedule visits, receive
requests, and send techs out to do their jobs. A
dispatching service could install GPS 8 units on
their clients’ vehicles to track vehicle location
and send the closest tech to the job, maximizing
efficiency and customer satisfaction.
§§  elf-storage
S
Storage companies could use GPS tracking
services as an add-on to their storage facilities.
Mobile storage units or boxes within a storage
unit could feature a low-powered GPS tracking
device placed in them that will alert owners and/
or management when moved. This could add a
premium layer of security to property stored in
self-storage units.
§§  atient tracking services
P
A new company could sell and service patient
tracking GPS devices for assisted living facilities
or nursing homes. Those devices could be worn
by assisted living and nursing home residents,
so they can be easily found if they wander off
the premises. The same business could sell both
the devices to assisted living facilities as well as
provide the monitoring service.
§§  ecure construction assets
S
A GPS tracking company could focus on serving
construction sites and builders by offering GPS
tracking for construction assets, equipment, and
materials. Low-powered GPS devices could alert
security and management during after-hours or
the premises.
§§  ind a partner
F
A critical part of creating an effective business
is identifying quality partners within your value
chain. Because you do not have the resources
or expertise to be a master of every business
companies that are experts in their respective
fields. For example, if you choose to be a
GPS service provider, it is important to align
yourself with quality devices from a hardware
manufacturer, and an effective user platform
from a superior system integrator. These
partners have the power to make your business
look great in the eyes of your customers, while
allowing you to focus on your capabilities.
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 3. DEVELOP YOUR PRODUCT AND
YOUR PITCH
PRODUCT
Once you know your target clientele and what kind
of GPS business you intend to be, you will need to
develop your service offering. Offering the right
mix of products and services to your target market
will be the key to your success. Will you offer a
subscription plan featuring GPS tracking service?
Will you provide installations for GPS tracking units?
Will your company feature GPS monitoring and
management of fleets? Or some mix of the above?
Again, the same principle as picking a niche will
be true of picking your particular offering. Make a
product offering that appeals specifically to your
target customer. Don’t start out by trying to offer
every conceivable GPS tracking product and service.
Instead, make a focused and compelling offer to your
ideal customer.
PITCH
It is nearly impossible to sell a service you can’t
articulate. Even when the results of the technology
speak for themselves, your business will still need to
have someone to speak for it, especially when you’re
first starting out. Finding the right positioning for
a company is incredibly challenging, but knowing
what value you offer will help you find the right
words to say. This will, in turn, help you sell more
of your services and close the gap between when
you introduce your company to a new prospect and
when they start to see how you will help them. Your
value proposition will address the needs of a specific
customer base, which you have already chosen,
through a business model tailored to that customer,
which you have also identified previously. This value
proposition should succinctly provide your customer
with compelling reasons why they should buy your
product, and what specific benefits it will convey to
their business. A great value proposition will also
differentiate your product from your competitors
to help the customer understand what unique
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Finding the right positioning
for a company is incredibly
challenging, but knowing what
value you offer will help you find
the right words to say.
services or features you offer that others do not. If
a customer does not clearly understand what value
you provide – increased earnings, new business,
improved efficiency, or decreased costs – they will
not purchase your product.
Just as a GPS system can provide the best route for
where you want to go, a well-developed elevator
pitch can give you a clear understanding of what you
want your business to do. Putting together a short
elevator pitch is a challenging but necessary step
in preparing to launch your GPS tracking business.
Most good elevator pitches allow listeners without
special expertise or industry knowledge to still get
the gist of what the business does, what it offers its
clients, and why they should want to hear more – all
within 1-2 minutes.
Your elevator pitch will be useful for explaining your
company to potential customers, investors, and
employees. It’s even useful for explaining to family
members what you’re spending so much of your time
doing. Your pitch does not need to contain every
detail about your business and services-- in fact,
it shouldn’t. If the short pitch inside the elevator
goes well, you’ll have follow-up meetings or further
conversation. Salespeople and politicians have
their elevator pitches rehearsed and polished to
perfection; business owners need to follow suit
and have their pitch ready even before they start
presenting their company to potential customers,
employees, or investors.
4. TEST THE WATERS
Anytime you start your own business, you can
anticipate a costly and challenging endeavor.
Although it is important to focus on your particular
niche, not every GPS business idea is good. There
are many industries that use GPS tracking and many
kinds of GPS companies you could start, but not
every business idea will work. And there’s no reliable
way to tell ahead of time which ones will succeed
and which will fail.
Entrepreneurs often run the risk of wasting valuable
time and money on ideas that are doomed from
the beginning because there is no demand for their
offering. It is wise to invest some money upfront to
vet out your business idea and gauge the demand for
your services.
You can mitigate some of the risk in your new
venture by testing your idea prior to launching your
company. This will help you discover if your business
idea is viable or not at its cheapest possible point,
and can give you valuable feedback as to how you
might need to pivot your business model to satisfy
your target customers. You don’t want to wait until
you have an office, employees, and other overhead
to discover that no one wants your services.
Before printing off your business cards, and signing
the papers for your LLC, you should first verify that
a demand exists for your supply. One of the fastest
and cheapest ways to do this is through Google
Adwords. A few hours of dedicated work and a
few hundred dollars can get you enough real world
data to see if there is sufficient demand for the GPS
service you plan to offer.
To get started, follow these three steps.
§§  reate a simple landing page
C
Once you have a firm idea of the unique value
proposition you want your GPS tracking
business to offer, create a basic landing page
on the web that outlines what it is you intend
to offer. Make sure to include a sign up form
for a mailing list that will announce when the
service becomes available. This way, you are
able to capture the contact information of
people interested in your offering without yet
having a product ready to deliver. The first
landing page does not have to be overly ornate
or complicated. It doesn’t have to say when the
service will be available or give details on pricing
or features. At this stage in the process the
simpler the better.
§§  uy search traffic for your landing page
B
The next step in testing out your business idea
is to start a Google Adwords campaign to start
driving targeted keyword traffic to your page.
This Adwords campaign will tell you a number
of things. First, it will give you an idea of how
many people are searching for the keywords
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 related to your business idea and clicking on
the ads. Secondly, visitors to your page that fill
out the form become viable leads for your new You can mitigate some of the
business. With this information, you will be able risk in your new venture by
to estimate how large of a demand there is for
testing your idea prior to
your offering. .
launching your company.
§§  alk to your leads
T
Communicating with the leads that sign up on
your landing page will give you an indication of
the likelihood that they would actually buy GPS
tracking services from you. After running your
test campaign and speaking with your leads, you
will have a better understanding of the potential
of your business idea. You will be much closer to
knowing if you are on the right track and
should move forward or if you should reassess
and take your GPS tracking business in a
different direction.

An alternative to the Adwords route is to cold call

prospective clients in your area to see if you can set
up meetings to discuss the GPS tracking services
you will soon provide. If you are planning to start
a GPS tracking business, you owe it to yourself
to perform the due diligence that will lay the
foundation for your business’s success.

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5. LANDING YOUR FIRST
CUSTOMER AND FORMING
YOUR COMPANY
Once you have a well-established target customer, a
product to offer them, and the evidence that there is
legitimate interest in what you are setting out to do,
it’s time to start getting customers. But before you
can have customers you’ll need to have a customer.
Finding that first person to commit to buy your
services is the real turning point from planning your
GPS tracking business to actually having one.
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.
ESTABLISH THE COMPANY
Getting customers to express true commitment
to and trust in your business with their wallets
should probably should come before making the
business official. Getting your first customer or
first few customers is vital to establishing your
business. Without customers, your business will
quickly wither away. Once you have landed that
first customer, it will require hustling and hard work
to grow your client list and build your business.
However, 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.
The ultimate goal of any company
is to win the hearts and minds
of its customers — and this is
particularly true as a GPS service
provider, where you are asking
potential clients to entrust your
brand with tracking their assets.
Once you have a few committed clients, you should
be ready to form your company. You have the
business idea, the product you’ll sell, and even a
handful of customers. The next step is to make your
business official, i.e., getting the business license
and filling out the rest of the necessary tax and legal
paperwork. A tax attorney could be ideal for
this step.
Incorporation, licensing, tax, and other paperwork
are something you could take care of by yourself.
However, at this stage in growing your business,
your time will be better spent hustling for new
clients. If this is to be a serious venture, you can save
yourself many headaches down the road by hiring
a lawyer or other professional to take care of the
details that need to be perfect. Hiring a professional
will free up valuable time to work on the things that
are essential for growing your business: finding and
serving clients.
CREATE A BRAND
The second part of forming your company is
establishing the brand and marketing materials that
will help you reach more new clients as well as hire
the right people to help service those clients. The
ultimate goal of any company is to win the hearts
and minds of its customers — and this is particularly
true as a GPS service provider, where you are asking
potential clients to entrust your brand with tracking
9
 their assets. You always want to let your name be
known and hopefully grow into the company that
people immediately turn to when in need of GPS
tracking, fleet management, or other relevant areas.
If you don’t give your company an image that
consistently communicates who you are, potential
clients may lose interest quickly or choose a
competitor that seems more legitimate. Brand
consistency and good design can make all the
difference as you grow your business. Your brand
image directly correlates with perceived quality of
your product and your trustworthiness. Having a
stronger, more consistent brand can not only give
your company and product a more reputable image,
but instill recognition and reinforce
customer loyalty.
trying to convey. This is not an area to skimp on. If
your graphic design is tacky or shoddy, it can make
your company seem amateur, hokey, or unreliable
to potential clients. Investing in good graphic design
will pay off in your effort to establish your company’s
image and credibility. However, the best marketing
your business can produce will be through quality
service and satisfied customers
Your brand image directly
correlates with the perceived
quality of your product and your
trustworthiness.

Everything from your logo, website, brochures, ads,

tag lines, signs, and packaging, to your newsletters,
business cards, and letterhead needs to be
congruent with the brand and the message you are

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6. DELIVERING RESULTS
Once you’ve established your GPS tracking business
and started working for a few customers, things
start to get fun. Delivering results for your clients
becomes a virtuous cycle that helps you get more
business from each client and more new business
through recommendations and referrals. Some of
these results will come through your hard work
and service, and some will come from the benefits
inherent in the comprehensive GPS tracking
platform you offer.
For example, improved driver behavior and
improved fuel management will save your clients
a significant amount of money. After the cost of
purchasing vehicles and the wages paid to drivers,
fuel is one of the largest costs in managing a fleet of
vehicles. It is also the expense over which many fleet
managers feel they have the least amount of control.
When fuel prices go down (which they rarely do),
managers celebrate. When fuel prices go up, margins
are squeezed and managers have to pay more to
keep their fleets on the road.
Fleet managers know intuitively that there are
inefficiencies and wasted fuel within their fleet. GPS
tracking software can uncover exactly where those
inefficiencies are happening and what is causing
them. Depending on the size of the fleet, acting on
these fuel-saving opportunities can have a dramatic
effect on costs and can more than offset the cost of
the GPS tracking system. GPS tracking devices are
able to capture an incredible amount of data about
driver behavior and vehicle efficiency. Recording and
analyzing the combination of the vehicle’s efficiency
and the driver’s behavior can create a fuel efficiency
profile for each vehicle/driver pair. The point of all
of this is to use facts to find opportunities to cut fuel
consumption and thus save money.
Driver behavior has a significant impact on the
amount of fuel each vehicle uses. Driving too fast,
leaving the vehicle idling, or taking long routes all
GPS tracking software can
uncover exactly where fuel
inefficiencies are happening and
what is causing them.
lead to higher fuel use. Your business will be able
to help fleet managers use GPS vehicle tracking to
improve their drivers’ behavior in all three of those
areas. By establishing policies based on acceptable
average and top speeds, acceptable daily idling time,
and other driving behaviors, your clients can greatly
reduce the fuel consumption of their fleets.
§§  racking efficiency through average MPG
T
Tracking the miles per gallon of various vehicles
within a fleet can quickly reveal the least
efficient vehicles and drivers. The least efficient
vehicles should be brought in for maintenance.
There could be issues with fuel pumps, tire
pressure, or any number of other problems that
are causing these vehicles to burn fuel more
quickly and run less efficiently. Also, the least
efficient drivers should be retrained on better
practices and more efficient driving behaviors,
and the most efficient ones should be rewarded.
§§ I mproving reporting accuracy
GPS tracking also helps drivers submit more
accurate time sheets. GPS tracking can
automate a portion of the time tracking process
by automatically logging when vehicles start
and stop. This gives managers a more accurate
picture of their employees’ work day. It shows
when they start, how long they take for lunch
and other breaks, and when they return their
vehicles at the end of the work day. This also
serves to improve driver behavior by making the
time-reporting based on accurate verifiable data
and not paper time sheets, which are subject to
human error and exaggeration.
11
 §§ I dle threats
Most commercial vehicles burn about a gallon
of gas per hour they spend idling. One gallon
of gas doesn’t cost that much, but multiplied
across an entire fleet of vehicles over a year, the
§§
cost of fuel burnt without purpose is staggering.
GPS tracking can be used to manage the time
vehicles spend idling. By setting maximum idling
thresholds for vehicles, managers can offer
incentives for reducing average daily idle time.
§§  usiness use only
B driving behavior. They should also be able to see
One of the biggest opportunities for cutting
down on fuel consumption is to verify that
fleet vehicles are only being used for approved
business. A significant portion of the fuel
consumption and wear on vehicles comes from
employees driving work vehicles for personal
use. GPS tracking can make it easy to enforce
policies about using company vehicles for
personal errands. Managers can receive alerts
if vehicles start after 22 hours, and vehicles
can trigger an alert if they go out of an area
designated by geofencing.
pretty suspicious to see your driver put 65
gallons of gas into a truck that only holds 50
gallons, or to see a fuel card used on a driver’s
day off.
 reating a positive feedback loop
C
For best results, drivers must have frequent
access to the results and data regarding their
driving habits. Your business can help fleet
managers distribute weekly reports so their
drivers can see trends and patterns in their
how their driving compares to other drivers in
the company and to the benchmarks set by the
company. For example, if the fleet manager sets
a goal of less than one hour of engine idling per
day, drivers should see in their weekly report
how long they idled each day of the week as
well as the average daily idle time of their fellow
employees. Drivers with the best results should
be rewarded accordingly.

§§  nly fuel your fleet

O
Many fleets use fuel cards so that their drivers
can refuel their vehicles at any gas station and
so management can centrally manage costs.
GPS tracking can help make sure that those fuel
cards are not being used to fill personal vehicles
or friends’ vehicles at the pump. It would be

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7. DOING WHAT’S BEST FOR
YOUR CUSTOMERS
There are numerous benefits your clients will
realize through the GPS tracking services you offer.
However, there are also benefits to helping them
choose the right GPS hardware and teaching them
to make the most of their GPS software. As was
mentioned earlier, identifying quality partners in
the value chain is critical to success. Picking high
quality GPS tracking devices and providing them
access to the best GPS tracking software will benefit
your clients and your business. High-quality devices
require less service and maintenance and command
higher margins, and a comprehensive GPS software
platform will provide many of the features your
clients will need.
It is important is to pick the right GPS tracking
hardware to offer your clients. In any GPS tracking
business, selecting good hardware for your
customers will set your company apart from the
competition. High-quality hardware is easier to
service and maintain, and will help cement the
long-term relationships that will ultimately make
your business grow. There are many kinds of GPS
hardware devices available, and there are several
There are numerous benefits
your clients will realize
through the GPS tracking
services you offer.
features your business should keep in mind when
honing in on the right GPS tracking hardware to
recommend to your clients.
When picking GPS hardware, you should consider
factors like the intended application (vehicle, passive
tracking, etc.), the kind of power source needed
(internal battery, external power source, etc.), the
method of communication (cellular, radio, etc.), as
well as other features like the durability of the casing
and support for cutting engines and overriding
vehicle functions. There are many features to
consider, but try not to get too caught up in feature
sets. Instead, think about your clients’ specific needs
and choose a device that meets those needs.
The GPS tracking platforms offered by reputable
companies are largely device agnostic. This means
13
 that your decision will be less about finding a device
that works with the software – or even worse, being
locked into one manufacturer’s devices -- and more
about picking GPS tracking devices that are right for
your business and for your customers. You will have
the freedom and flexibility to do what’s right for your
clients and select the hardware that is most suitable
for needs. Choosing a GPS tracking platform that
works out-of-thebox with a wide range of devices
also means that your GPS tracking business will be
able to work with your customers’ existing hardware
— lowering their costs and increasing your sales.
Choosing a GPS tracking
platform that works
out-of-the-box with a wide
range of devices also means
that your GPS tracking business
will be able to work with your
customers’ existing hardware
— lowering their costs and
increasing your sales.
14
Also, 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 a GPS tracking platform that will
scale with your business. Picking a software partner
with powerful software and proven tools will serve
as the technological backbone for the service you
offer your customers.
The best thing you can do for your clients is to set
them up with the comprehensive GPS tracking
platform by Position Logic. It has features your
customers will love you for--features that will lower
their fleet’s fuel consumption, features that will
lower their insurance premiums, features that will
keep their employees productive and accountable,
features that will help them serve their
customers better.
8. GROW, GROW, GROW
This final section isn’t really about Starting a GPS
Providing a world-class GPS
Tracking Business; it’s about what you will be able
to do once you’ve completed the previous steps. tracking platform is what
The market for GPS tracking services is huge and Position Logic does for
the opportunities for entrepreneurs to establish businesses all around the globe.
themselves in niches within this market are
numerous and diverse.

Of course, providing a world-class GPS tracking

platform is what Position Logic does for businesses
all around the globe. If you’re 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 makes sure that
you’re in business for yourself, but never by yourself.

15
 Want to find out how Position Logic can
help your business?

Contact one of our GPS Tracking

Software experts today.

www.positionlogic.com

The People Powering IoT

+ 1-866-676-2372
+ 44 0 239-465-0587 (Int’l)

sales@positionlogic.com