How to Start a Towing Business

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How to Start a Towing Business Business Overview:

If you’re a people person who likes working with cars and you are looking for a way to be your own boss, you should learn how to start a towing business. Maybe you already work for a towing company or auto mechanic business and are looking to branch out on your own. Or maybe you’ve never towed before but want to break into this business by hiring a crew of tow truck operators. Either way, the first thing you need is a tow truck business plan. This plan will help outline things like whether you’ll purchase a franchise or start your own business from the ground up. Your business plan will also help you figure out how many trucks and tow truck operators you will need initially—and what rate of growth you’ll need to experience in order to add more. Starting a towing business can be a costly investment so you will need to line up some financing. Find out where the best places are to purchase tow trucks. You don’t necessarily need a storefront for this business idea but you will need a home office where you can keep your records. You will also need a place to keep your tow truck(s) so you need to look into garage space if there is no room at your home. Once you have your trucks and your staff, you will need to kick your marketing plan into action and form relationships throughout your area. Talk to the police station to see if you can be on the list of towing companies they call when there’s an auto accident. Talk to the city office in charge of parking violations; find out how the impound lot works and how you can get on that list. You can contact AAA and seek to be registered with them. Also, you should distribute your business cards to local auto repair and auto detail shops. Just getting the word out will help build your client base immensely. Unfortunately, everyone will need a tow sooner or later. Learning how to start a tow truck business could put you on the fast track to financial freedom while helping others get through a difficult time.

A Day in the Life of a Towing Business Owner:

This article brought to you by Business Ideas! If you enjoyed this article, make sure to subscribe to the Business Ideas Newsletter to get ideas sent straight to your email inbox.If you are the sole tow truck operator of your business, you will want to always have your cell phone with you so that people may reach you when they need a tow. Each day you will spend your time talking to people about your business and distributing your business cards around town. If you have a staff working for you, you or an answering service will work as the dispatcher, taking calls when they come in and assigning jobs to your crew. Your day as a towing business owner will not end at 5 o’clock since tows are needed 24 hours a day. You will likely be on call at least a few days a week so you will need to have your phone on and be available at a moment’s notice to take that next job. As with any business, you will need to record each day’s payments and keep an eye on your finances.

About Your Customers:

Your customers will be individuals needing a tow for their broken down car, the police department needing a wrecked car towed, the city needing a car towed to impound and other various individuals who need an automobile moved to another location.

What You Need to Start:

  • Business plan
  • Marking plan and materials
  • License and insurance
  • Tow truck(s)
  • Tow truck operator(s)
  • Area to house your truck(s)
  • Computer with finance software

The Good:

  • This business is truly recession proof.
  • If you offer fast, friendly service, you can charge top dollar.
  • Towing is relatively easy work.
  • You don’t have to work at an office 9-5.
  • You get to work with people all day.

The Bad:

  • The initial investment can be high.
  • You will work odd hours, nights and weekends.


Start This Business Today:

To start a towing business today, we recommend you purchase The Business Plan for Your Tow Truck Service.   This excellent guide to creating a towing business plan will help you prepare your business to be a success. This book provides detailed instructions for creating the ultimate business plan for your towing business. For more information or to purchase this HIGHLY RECOMMENDED book, click here.

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