How to Start a Towing Company?

Answer 1

Starting a small business can be a daunting task, but knowing the freedoms of being your own boss can be worth the hassle. While there are an endless number of fantastic business possibilities, a small towing business is one that can provide steady profits and unlimited growth potential for the potential investor. Here are a few tips you should know before taking the plunge into your new business venture:

1) Know the Costs: Starting any business can be a financial burden, especially if costs aren’t accounted and budgeted for up front. Starting a towing company (between licensing fees, employees and trucks) can cost anywhere from 10,000 to 200,000 dollars. The amount of start-up capital can vary significantly depending upon location, size of the potential business and other highly variable factors.

2) Obtain Proper Licensing: In order to operate a towing company, you will need to get the proper licensing from state and/or county officials. This license is often separate from the actual business license and may require extra certification. Licensing for towing companies often involve a lot of “red-tape” that may be difficult for a small-business person to get through on their own. Seeking legal advice is advised when going through any licensing procedure to ensure a smooth process.

3) Choose the Right Market: Like any business, you must have the proper customer base in order to be successful. Choosing the right market for your towing company can be just as crucial as getting the proper towing equipment. Likewise, you must let that market know that you are in business! Just because you start your towing service, get trucks and obtain your licensing does not mean that you will instantly have a customer base. Choose locations to advertise that will speak to your demographic and have the biggest potential to reach your future customers.

4) Pick a Name: Towing services are usually needed when it is an emergency. Your average customer does not keep the name and numbers of towing services in their glove box for when they might need them. If you pick an easy to remember name and number (like Rick’s Towing- (888) 888-RICK) a customer is more likely to call you when they are in need!

So while it may seem like a near impossible task, remember that starting your own towing business can be worth the hassle and could result in some big rewards down the road.

Answer 2

good way to make some money would be to begin a business that tows vehicles. Even if you are a small business that only has a single tow truck, you can still make plenty of money. However, it will take a little bit of money, plenty of hard work and some imagination to boot.

1. All businesses, with this one being no different, should start out with a well thought out business plan. Business plans often includes what your available capital is, what assets you own, what you will need to buy in order to begin the business, as well as necessary licenses and insurances, so on.
2. Since this is a towing business, you will probably need to buy a towing truck if you haven’t already. If you are looking to expand your business, you will eventually have to buy more tow trucks. Make sure whatever you purchase can be relied upon.
3. Make sure you get a license in every city you will work within. Be prepared for this to take awhile.
4. Similarly, you will need to go out and get your insurance. Proof of this purchase will be necessary upon the approval of your license. Include your liability costs for any potential damage which might occur, be it to a car or to a person, if an accident occurs.
5. Advertise to the best of your abilities. Do this by making and handing out business cards, learning the local businesses and the owners of local repair shops. These are people you will probably get phone calls from someday. Tell the local businesses that you will be happy to tow their unwanted vehicles for free.
6. Head to the local police station and inquire about being added to their list of tow truck services.
7. Make sure to talk to the impound yard to make sure you have everything you need so that you can start bringing vehicles to them.
8. If you don’t already have one, get a cell phone that you don’t mind everybody having access to. This is a number that must be accessible day or night.
9. As your business grows, feel free to hire more people and buying more trucks in order to expand your business.