Hey buddy! Wanna try your business luck and start something that will have a consistent demand for the near future? Then start a towing company. And, if you are interested in cruising the road and helping drivers in need then this business is right up for your ally.
Moreover, as per the reports towing industry has brought around $8 billion in revenues in 2019 and is assumed to be even more profitable in years to come. Hence, we are here to share with you valuable tidbits on how to start a towing company along with other related information.
Keep reading to know more!
As already mentioned, it is considered one of the most profitable businesses. But there are other benefits as well which may double your interest in this sector. Let’s dive in!
Benefits of starting a towing company
Starting a towing company is worth all your hard work, as it involves very little stress and the satisfaction of pulling out people from stressful situations is itself very fulfilling. Well there are benefits as well, like:
- Provides you the opportunity to help people when they are stranded and stuck somewhere in the middle of the road with their automobile.
- It offers consistency in your work life as it hardly involves any unnecessary surprises or excitements.
- No specific rulebook to start a towing company. You just need to be a good driver and must have a clean record.
- Offers numerous routes for specializing in this sector to improve your business growth.
All vehicles on the road aren’t the same- right? So are the types of towing!
Types of towing business
Check out the below list to know about some of the popular towing businesses:
- Post-accident clean-up: Dedicated to carrying wrecked vehicles like most cars after accidents.
- Oversized load: This involves load-hauling, which is basically cruising a house or half of it over a highway.
- Contractor for roadside assistance: Roadside assistance companies bring a set of work lists to the preferred towing business to help those who are stranded and need urgent help.
- Vehicle transport: This involves transporting vehicles long distances with the help of tow trucks.
- Others: There are other towing businesses as well who transports or carries other things like boats.
So here are your options. Let’s now figure out how to begin a towing company!
How to start a towing company
It isn’t difficult to start a towing business if you meet the required eligibility criteria.
Formulate your business strategy:
A business can get off the ground successfully if you have a solid plan to back it up. This also includes effective budgetary strategies to keep your business finances always steady and stable. Plan out how much you are ready to invest in the business and how much you should rate your services to earn a decent profit. Moreover, frame your policies efficiently so that it protects in times of need.
Take care of your business legalities:
Make your business identifiable as a legal entity for which you need to create a suitable business model and need to get it registered. Refer to a professional lawyer to get your business insured in every way possible so that your business future is secured in case something goes wrong.
Determine your targeted audience:
First, decide which way you are going to follow- B2B or B2C. Then decide your target audience and make arrangements, as the requirement would be specific for each type of business.
Develop a brand:
Branding your company is something that makes your identity visible in the business world. Design a professional website, logo, font and create business cards, pamphlets, and other marketing essentials to hold your brand’s persona. Establish a strong mission statement to let your brand be the first option when someone thinks of a towing company.
Purchase a tow truck:
Buy a towing truck depending upon your business. The investment would likely be between $40k-$100k. Some of the different types of tow trucks are flatbed, oversized load, wheel lift, and hook and chain. Opting for a new tow truck would be safe, but you can also go for a used one. Just make sure to investigate its condition by a professional mechanic to avoid expense rise soon after purchasing.
Market your services:
Invest in SEM or SEO, pay for Google ads to optimize your website position so that one gets to know about you instantly within the first few options.
Take care of business finances:
Open your business bank account to keep your business income separate from your personal assets. Moreover, get an effective online invoicing tool like Billbooks to simplify your invoice and estimate-making process. This would ensure error-free outcomes with speedy payment processing.
Establish your business credibility and reliability:
No matter, you are a B2B or B2C company proving your business reliability is a constant game throughout your business career. Make sure you ask your happy clients to provide you with feedback and reviews on Google. Good reviews will help you establish your business credibility with your prospective clients.
Does one need to be experienced to start a towing company?
Practically you don’t have to be experienced to start a towing company. But a basic knowledge of the mechanics of your truck or how to drive heavy loads would be advantageous for your business. Knowledge about how to load heavy vehicles will be a great add-on as that would help to avoid damage to your client’s property.
To have a clear understanding of the business eligibility take a look at the section below.
How do you become eligible for a towing business?
The most basic thing that one must have before starting a towing company is a Tow Driver ID. The other thing varies depending upon the jurisdiction you are in. Specific rules are set, which may vary from state to state or county to county. But despite the variation, there are few things which are constant and of utmost essential. Those are:
- Only those who are 18 years or above are eligible to start a towing company.
- One must have a valid driver’s license and a clean driving record.
- One must not have a record of three accidents in a year in the past three years.
- No DUIs in the past five years and not more than once in the past 10 years.
- One must be capable of speaking English at a conversational level.
So let’s put together everything in short!
- Frame a strong business plan to survive the competitive market.
- Maintain a healthy customer relationship for the betterment of your business.
- Focus on the target audience and market your services properly to reach out to your prospective clients.
- Be easy to commute during working hours and always prioritize your timelines.
- Hire staff for added assistance to take care of every aspect with special attention and dedication
- Do ask happy clients to leave a review on Google so that you can prove your credibility to your prospective clients.
Like all other businesses, starting a towing company also involves grit and dedication on your part. Invest your effort and time in this to make your business afloat as this business offers time-sensitive services. Follow the above guide to establish a successful business to have a bright business future.