How to Start and Build a Successful Traffic Control Business

Want to start your own business but not sure where to begin? A traffic control business could be a great option. Traffic control services are always in demand to help direct vehicles and pedestrians at construction sites, special events, emergency situations and more. If you're looking for a business opportunity with lots of potential for growth, starting a traffic control company may be just the ticket.

In this article, we'll walk you through the steps to get your own traffic control business up and running. From obtaining the proper certifications and equipment to finding new clients and managing your business, we've got you covered. Ready to learn how to start directing traffic (and profits) your way? Let's get started!

The Traffic Control Business Market

The traffic control industry provides an essential service to a wide range of clients. Your target audience will include construction companies, event planners, public works departments, emergency responders, and anyone else who needs help directing vehicular and pedestrian traffic. This business caters to both public and private sector clients on a local level.

Your Service: Professional Traffic Control and Management

As a traffic control business, your core service will be providing traffic direction and management for your clients. You will dispatch trained and certified traffic control specialists to job sites to help guide vehicles and pedestrians safely through work zones or events. What will set you apart is your commitment to professionalism, safety, and customer service.

You will deliver your service by sending traffic control crews to locations as needed by your clients. Your crews will use proper safety gear like reflective vests, hard hats, and lighted wands to direct traffic. You will need to invest in high-visibility clothing, signage, cones, and other equipment to properly manage traffic flow.

To develop your service, you'll need to obtain the necessary certifications and training to legally operate in your area. You'll also need to build a team of traffic control specialists and provide them with training on how to safely and effectively direct traffic. You'll need to establish standards and procedures for your crews to follow to ensure consistent, high-quality service for all your clients.

The Economics of a Traffic Control Business

The costs to start a traffic control business primarily include equipment, certifications, marketing, and labor. Equipment like signs, cones, reflective gear, and lighted wands can cost between $5,000 to $10,000 to get started. Obtaining certifications and permits will also cost a few thousand dollars. You'll need funds for a website, marketing materials, and advertising to attract new clients.

Your main ongoing costs will be labor. You'll need to pay competitive wages to hire and retain qualified traffic control specialists. You can expect to pay between $15 to $25 per hour for traffic controllers. You'll also need funds to continue training your crews to maintain high standards.

For pricing, you can charge by the hour or per project. Hourly rates for traffic control services typically range from $35 to $75 per hour per crew member, depending on your location and experience. Per project pricing will depend on the specifics of the job and your estimated hours. Many businesses charge time-and-materials for emergency or short-notice calls.

To be profitable, aim for a 30-50% gross profit margin. Keep costs low by optimizing routes and schedules for your crews and negotiating good rates from equipment suppliers. Satisfied repeat clients and word-of-mouth referrals will also help boost your revenue over time. With the right pricing and cost management, a traffic control business can be very lucrative.

Marketing Your Traffic Control Business

To attract new clients and grow your traffic control company, you'll need to implement effective marketing strategies. Here are some of the top techniques to consider:

Search Engine Optimization (SEO): Optimize your website content for search engines to rank higher in results for terms like "traffic control" and "traffic management." Focus on your location and key services. SEO can drive organic traffic and leads.

Social Media Marketing: Build profiles on sites like Facebook, LinkedIn, and Twitter to raise awareness of your business. Post updates, share photos, and engage with your followers. Participate in local networking groups on these platforms to connect with potential clients.

Direct Outreach: Contact local construction companies, event planners, public works departments, and emergency responders directly to promote your services. Call them, send emails, or meet in person. Educate them on how you can meet their traffic control needs. Ask for a chance to submit a bid or proposal.

Advertising: Place ads on websites, in publications, and on local radio stations that your target clients frequent. Sponsor local industry events or job fairs to get in front of key decision makers. Advertising boosts visibility and credibility for your new company.

Networking: Join your local chamber of commerce and attend industry networking events. Meet people, exchange business cards, and look for opportunities to discuss your traffic control services. Face-to-face networking is an effective way to build relationships that lead to new clients.

Referral Program: Offer discounts or incentives for existing clients to refer your business to others. Satisfied customers are one of the best sources for new leads and jobs. A referral program encourages word-of-mouth marketing which has a high conversion rate.

Sales Strategies for Your Traffic Control Business

To win new clients and contracts, you'll need to implement proven sales strategies for your traffic control company. Here are some of the best techniques to use:

Cold Calling: While many people dislike cold calling, it can still be effective for a business like this. Call contractors, event planners, and municipalities in your area and pitch your traffic control services. Ask to schedule a meeting to discuss their needs and your solutions. With practice, cold calling will become easier.

Proposals and Bids: Respond to requests for proposals (RFPs) and submit bids for traffic control jobs. Focus on presenting your qualifications, experience, services, and competitive pricing. Provide references and case studies demonstrating your ability. Submitting proposals and bids, even if you don't win the job at first, helps establish your company as a contender for future opportunities.

Consultative Sales: Meet with prospects to understand their specific traffic control challenges and requirements. Then present solutions that meet their needs. Educate them on best practices and your professional processes. A consultative sales approach focused on problem-solving builds trust and credibility. It allows you to show your value as a partner versus just another vendor.

Relationship Building: Develop long-term relationships with key clients through quality service, communication, and account management. Check in regularly, provide updates on new services or equipment, and look for additional ways to support their needs. Strong relationships lead to repeat business, referrals, and new opportunities as they grow their own companies.

Cross-Selling: Look for opportunities to provide additional related services to your existing clients. You might offer emergency roadside assistance, traffic planning and analysis, or temporary staffing in addition to your core traffic control solutions. Cross-selling to established clients is easier than finding new customers. But only sell services that you can provide at a high level of quality.

Partnerships: Team up with complementary businesses like construction companies, event rentals, or emergency response teams to provide traffic control services together. Partnerships allow you to bid on larger, more complex projects and reach new potential clients through joint marketing. Look for partners with a similar dedication to professionalism, safety, and customer service. Strategic partnerships can fuel significant growth.

Operations and Execution

To properly operate your traffic control business, you need to establish efficient processes and procedures. Here are some key areas to focus on:

Staffing: Hire qualified traffic control specialists and train them thoroughly on your standards of service, safety procedures, and customer service expectations. Provide ongoing training and evaluation to ensure high performance. Offer competitive pay and benefits to retain good employees.

Scheduling: Develop schedules and routes for your crews that optimize their time and your resources. Use scheduling software and GPS tracking to efficiently dispatch crews to job sites based on location and availability. Careful scheduling will minimize wasted time and keep your teams productive.

Safety: Implement strict safety standards and procedures for your traffic control services. Provide your crews with proper safety gear like reflective vests, hard hats, and steel-toed boots. Ensure all equipment like signs, cones, and lighted wands meet industry standards. Conduct regular safety audits and training. Prioritize safety to limit liability and ensure compliance.

Equipment: Invest in high-quality traffic control equipment and properly maintain it according to standards. Have backup supplies on hand in case of emergencies or last-minute jobs. Regularly inspect all equipment to ensure it is in good, working condition before each use. Well-maintained equipment is essential for safe, effective traffic management.

Customer Service: Provide friendly, helpful customer service for all your clients. Respond quickly to calls and requests. Update clients on the status of jobs. Solicit feedback and reviews to improve your services. Handle any issues or complaints promptly and professionally. Exceptional customer service will earn you more repeat business and referrals.

Accounting: Use accounting software to properly manage invoicing, accounts receivable, expenses, and financial reporting. Send invoices promptly after completion of each job. Follow up on any past due invoices to ensure timely payment. Track all expenses accurately to monitor the profitability of your business. Good accounting practices are key to running an efficient, profitable operation.

Legal Requirements and Regulations

Before starting a traffic control business, be sure to research the legal requirements and regulations in your city or state. You will likely need to obtain proper business licenses or permits to operate. There are also specific certifications and training for traffic control specialists to legally direct traffic. Requirements vary in different areas, so check with your local department of transportation and municipal offices.

Some of the regulations and certifications to be aware of include:

•Business licenses and permits: Most cities require general business licenses and permits to operate. There may be additional permits required for traffic control companies.

•Traffic control certifications: Many states require traffic control specialists to complete training and certification. The most common is the Traffic Control Supervisor Certification (TCS) from the American Traffic Safety Services Association (ATSSA). Some cities and private companies may require additional certifications.

•Insurance requirements: You will need proper business insurance like general liability, auto liability, and workers' compensation insurance for your traffic control company. Requirements vary but typically a minimum of $1 million in coverage is needed.

•Vehicle requirements: Your company vehicles will need to meet certain standards for visibility and safety when used for traffic control services. This includes having lighted signs, arrow boards, and maintenance.

•Safety standards: There are specific standards set by the Federal Highway Administration (FHWA) and ATSSA for traffic control equipment, signage, clothing, and procedures. Your company and crews must follow all required safety standards to legally and safely provide traffic control.

•Labor laws: You must follow all applicable labor laws regarding wages, overtime pay, discrimination, and employee rights. Pay close attention to rules regarding breaks and maximum work hours for traffic control specialists.

Conclusion: Start Directing Your Own Traffic Control Business

Starting a traffic control business can be a rewarding endeavor for the right entrepreneur. If you're looking for an opportunity to build a profitable company providing an essential service, this industry has significant potential. However, it does require obtaining proper certifications and permits, investing in quality equipment, hiring and training qualified staff, and providing exceptional customer service.

With the right dedication to safety, professionalism, relationship-building, and continuous improvement, a traffic control business can become a successful, long-term venture. With so much new construction and development in cities across the country, the demand for traffic management services is steady. And by establishing a reputation for excellence, you'll gain repeat business and referrals to keep your own business moving in the right direction.

If directing traffic and building a business sounds appealing to you, do some research to learn more about the specific requirements in your area. Develop a solid business plan, obtain financing if needed, and start promoting your new traffic control services. You'll be well on your way to entrepreneurship in a fast-growing industry. Here's to your success!