So you want to start your own business. You’ve recently stumbled across the very profitable tow truck business, or maybe you were already familiar with this business model? Well we’re here to tell you that the tow truck business can be a very rewarding one. And if you’re looking to start one up, then look no further. We have all the basic information you need to know!
First thing is first – business plan. Because of the nature of this business, you’ll need a plan to decide which kind of towing you will offer e.g. post-accident, breakdown towing or illegal parking tows. Knowing what you’re able to offer will allow you to understanding everything else in your business e.g. what you require to operate, products and tools and marketing efforts.
Before commencing you’ll need to apply for a local business permit and you’ll need a state tax certificate too. After that you’ll want to jump straight in and purchase your first tow truck or trucks! Eventually you’ll need to invest in several tow trucks so that you can fully maximize your business potential and increase your reach. You’ll also want to look in to the types of tow trucks you want to be driving. Hook and chain ones can be used, but flat-bed and wheel-lift tow trucks are generally less damaging and therefore easier and cheaper to work with in the long term.
Any legitimate tow truck service will have the right insurance in place. Not only will you require business auto insurance but also liability insurance to ensure you’re able to cover any damages to property and/or injuries caused by your operations.
You’ll also want to consider the space that you require in order to run your operation. Commercial space is necessary for such a business model where you will also need space to park and keep your tow trucks safe. Because this is pretty much a phone-based business you will need basic office equipment and a phone line too. Also advisable to have a cell phone linked to your business too so that customers can reach you everywhere and anywhere.
At this point you’ll want to look at the marketing side of your business. Get business cards and fliers made and hand hem out locally, but also to other business owners you know. Local businesses can prosper by placing ads in local newspapers and other local publications as well as placing ads in local telephone directories too. You can also network with local gas stations, vehicle repair shops, car dealers and police stations to let them know about your services and don’t be shy to ask them to spread the word of your business with people they know too! You may also want to look in to becoming a AAA certified tow company, as this could potentially attract new clients too.
Once this is all done, all that’s left to do is to scale your business up! And the more you do, the more truck drivers you’ll be able to hire and train. Once this is done, just repeat the scaling up process and you’ll be living the life before you know it!