The short answer to the question is not to develop the software, but to take an existing white label GPS tracking platform, re-brand it, and resell GPS tracking as a service. The practical way is: Pick niche and market, find a white-label or self-hosted tracking platform, find GPS devices and SIMs to fit the niche, get one customer to collaborate (friendly one) to iron out installation and support issues, set pricing based on your costs, and then launch and grow in your niche. The business is able to make two times per vehicle – a one-off margin on hardware and installation, and a monthly recurring service fee that grows over time as the customer remains. It's the recurring revenue and not the device sale that's the business.
At a Glance
| Question | Quick Answer |
| Is it necessary for me to develop the software? | No — white-label or self-hosted platforms allow you to launch your platform in weeks under your own brand. |
| What are the key actions? | Niche, platform, devices/SIMs, pilot, pricing, launch and scale. |
| What is its business model? | The hardware-installation margin plus a service margin, which will be applied each vehicle (the actual engine). |
| What is the amount of investment required? | There is no definitive number – set the budget for the platform, device stock, SIMs, install tools and capacity of support. |
| Is there a technical team required? | Not to get in to the white-label thing, a self-hosted platform requires some simple server skills |
| What decides success? | In determining the most suitable niche focus, the strength of the support and how well it is retained — and not the lowest price — will be considered. |
The decision to launch a business should not be taken lightly.
A GPS tracking business is not a business that sells gadgets, it's a service and subscription business. It's not about the one-time device sale, it's about the money that is generated every month by each of the tracked vehicles, and the longer they stick around, the more money is generated. Good service can multiply year after year as fleet customers seldom move from one to another and changing a tracker across a fleet is disruptive. As a result, it is a more durable B2B tech small business model, but is a reward to operators focused on, and supporting a well, not placed on lowest price.
This tutorial is a step-by-step launch procedure. The companion guide to the scope of the GPS tracking business (economics in depth) deals with underlying business model, revenue maths and the three methods of entering the market. In this case, the emphasis is on doing the thing.
6 Steps to startup a GPS Tracking Business!
The first step is to select your niche and market.
The biggest mistake that is made is serving everyone. Everyone competes for "tracking for everyone", a niche allows you to pitch a specific niche, market it more easily, and get focused referrals. Identify a market size segment you can serve and access — such as School and Staff Transportation, Small Commercial Fleets, Logistics and Delivery Companies, Construction Equipment, and Asset Tracking. Then narrow by geography: If you own "school-van tracking in one city" or "cold-chain fleets in one region," then it's a lot better than city-to-city and region-to-region. After the first niche is up and running, there is room for other niches to be added.
The second step is to choose a Tracking Platform.
This is the basis of the entire business and in this one word is the difference: you don't build it. White label GPS tracking refers to the ability to use an existing tracking system and sell it under your name, your brand, and your domain and pricing. There are two models – either a cloud-based platform on the vendors' servers (quickest to get going, typically pay a per-vehicle software charge), or a self-hosted platform running on the infrastructure that you own or control (this is a one-off licence, and you have data control with no per-vehicle software charge). For those without technical support, cloud is easier to get started with, while those concerned with data control and scaling economic considerations may prefer a self-hosted platform such as Fleet Stack. Either way, make sure that it can be completely re branded, works with the devices your market uses and provides you with the features your niche requires which include geofencing, driver behaviour, fuel checking, and reports.
The third step is to obtain GPS Devices and SIMs.
But you won't get anything done without the proper hardware. Select the GPS equipment that can be used with your platform before it is reliable and locally available, not lowest priced — cheap trackers create support tickets that offset their saving. Do not purchase stock if the device is not listed on the supported devices list, and do not buy hardwired devices for use as plug-in OBD or battery devices for use on unpowered devices. Add AIS-140-certified devices if necessary, for Indian commercial-vehicle categories. Now each device requires a data SIM (M2M/IoT SIM if available) and consider connectivity and its costs from the outset when pricing. Test and verify the device compatibility with the platform's device documentation before signing with device suppliers.
Step 4: Run a Pilot
Rather than accept paying customers, perform a small pilot project, using one friendly customer, a fleet owner you know or your own vehicles. The pilot is meant to bring to light issues that are only experienced in the field such as device installation quirks, SIM provisioning, alert configuration and the actual reports customers are looking for. Install, register the devices on the platform, set up geofences and alerts, and experience the system for some time. Those operators who don't do this find issues during installation or support at the paying customer scale, where it costs money. Your first reference and testimonial will be a clean pilot.
You need to determine your pricing in Step 5.
Don't use a competitor's rate card when it comes to price. Calculate the actual per-vehicle cost (device and installation — typically recovered as a one-time fee — or recurring SIM/data fee, per-vehicle platform fee, and support time allowance), and then establish a recurring monthly charge that includes margin. The recurring fee is the margin that's going to make the business more successful – don't chase the lowest price. Communicate the commercial terms with the first customer, such as what the setup fee covers, the monthly fee, who owns the device, and what support is included. The first place in which operator/customer relations fail is in the area of equipment ownership and support. The scope guide explains each of these lines in detail, as well as the costs and values involved.
The final step is to take the product to the market and grow it.
Start outreach, with a tested setup and clear pricing – start focused within niche and area, installation is local, referrals build. Don't make your early marketing campaign too flashy, a normal website, a local trade group presence, industry associations, and even your initial customer as a reference will work out more boffo than a broad and unfocused marketing campaign. When you scale up, the constraint will move from customers to operations (Installation capacity, SIM management, support load), therefore, establish customer management and repeatable install process; Make it their platform: set up geofences, alerts and reports for each customer, not give them the login to a raw map which they can easily switch away from; a configured service is harder to give up than a bare map.
A checklist of what you need to get started:
Before taking your first paying customer:
- ☐ A niche and target area identified
- ☐ A branded platform selected (white-label or self-hosted) and branded.
- Two or three suitable and usable models of devices shortlisted.
- ☒ ☐ A SIM/data plan has been arranged (where possible)
- ☐ On-site installation service or installation by a certified installer.
- The placement of the pilot and their debugging went well.
- ☐ Reseller pricing determined by your costs and then mark up on the recurring fee
- Written terms include: set-up fee, monthly fee, device ownership, and scope of support.
- Identify a simple website and a initial customer for reference
- For commercial vehicles in India: AIS-140 certified vehicles (when necessary)
The number of start-ups is not set and will vary according to your niche, scale and platform model. Plan for 5 items, not a single item — the platform (reoccurring cloud-based subscription or one-off licence for in-house self-hosted platform), GPS device inventory (there's a huge range of price per GPS, treat any number as representative until quoted), SIM/data connection per GPS (also varies significantly depending on class), installation tools and labour, and ongoing support capacity. Remember that the advertised price for the platform may not account for hardware and connectivity costs, and assume your customer base, not the first-year price. This cost break down and the unit economics are fully covered by the scope guide.
What not to do when writing an essay.
- Attempting to please all people. The breadth is going to be competing with everyone and a niche is going to be much better to market and support.
- Purchasing the lowest priced equipment. Support tickets are generated due to unreliable hardware, which wipes out the saving.
- Ignoring SIM management. Silent outages are service fails due to unmonitored connectivity.
- Skipping the pilot. There are much higher costs associated with debugging at paying-customer scale.
- Selling a product based on its price. The bottom is a race to the bottom, the top is a differentiation on the service and niche depth.
- Providing a raw login. It is easy to turn an unconfigured map into, a configured service isn't.
- Vague contracts. Ownership and scope of support issues are inherited from undefined devices.
FAQs
What is the process to starting a GPS tracking company?
Find a niche and market, pick a white label or self-hosted tracking software (don't write software), find compatible GPS devices and SIMs, then conduct a pilot with one friendly customer, charge what it costs and then launch and scale in your niche.
Is it necessary to create my own GPS tracking software?
No one says that you cannot launch your site as a White Label or Self Hosted platform under your own brand on the well established, stable platform of the software you have selected. If you're not selling the tracking software itself, you don't make sense making a new product from scratch.
Can you make money with a GPS tracking company?
It can be, but it doesn't guarantee a margin as there is room for the cost of the device, the efficiency of supporting it, churn, and the discipline imposed on pricing. It's the recurring per vehicle fee which compounds, in that you have to be profitable on it if you want to be profitable, and if you aren't, but you're competing on it, then you'll have a hard time.
What is the start-up cost for a GPS tracking business?
It is impossible to establish a certain number. Estimate costs for platform, device inventory, SIMs, installation equipment and support capacity, and use your best estimate of your target customer size as your model numbers. The cost shape of a one-time vs. cloud per-device subscription is vastly different.
Is there a need for a technical team to get started?
Rather, not to begin with a white label cloud platform — it's mostly configuration and branding. The downside of a self hosted platform is that it requires minimal server skills to operate and maintain, while the upside is that it provides a platform for controlling the data, and no software fees are charged per vehicle.
Which is the best niche for a GPS tracking company?
The ideal niche is one that you can actually access and support – examples here are school/staff transport, small commercial vehicles, logistics and asset tracking. Be wary of the breadth of focus – own a niche in a locality and then expand.
Is it necessary to have AIS-140 devices for commencing in India?
The AIS-140 certified devices must be installed on defined vehicle types for commercial or public service vehicles in India and are not applicable to all States. If those cars are part of your niche, make sure to budget in certified gear, and ensure that the existing rules for your category are as up to date as possible with your RTO.
How would you answer the question of how to acquire your first customers?
Begin with your pilot customer as a reference and outreach to where your niche already populates – local trade groups, industry association and operator communities. The key is a well-crafted and specific pitch to one segment, rather than a general marketing.
Get your GPS tracking business up and running with Fleet Stack.
A fully integrated GPS tracking and fleet ERP solution that is self-hosted, white-labelled and perfect for operators who are creating a tracking business under their own brand; re-brand the web & mobile apps, operate on infrastructure you control, with one-time licence fees not per-vehicle software, and manage subscribers with built-in customer management. While you are doing the steps mentioned above, look at the supported devices and developer documentation to make a plan regarding hardware, review the partner program and determine if the self-hosted model is right for your business. To find out the business model and the revenue calculations in the launch process, read the related guide about the business scope of the GPS tracking business.


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