How to Start a Towing Business

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This section aims to help you come up with ideas for businesses, and to help you learn how to achieve them. Today we’re going to take a look at how to start a towing business, because this is another field that is always in demand and for which there are always customers. Furthermore, you don’t need to make a big investment in order to put the bases of this business, and you can worry about expanding later. Anyone can have a towing business as long as they know their surrounding area well and are good truck drivers. Other than that, you just have to be determined and hard-working and nothing will be able to stop you.

Nevertheless, before teaching you how to start a towing business, we advise you to do some market research and find our whether you would have any competition. If there are already well-established towing companies that people trust you may have trouble in establishing your own customer basis; yet if you think you are able to provide cheaper or better services, or offer something that competitors don’t, you might just succeed. Thus, if you still want to learn how to start a towing business, here are some fundamental steps:

  • List of requirements – You need to find out what the requirements for starting a towing business are in your area; you can probably find a list with the local city government office or something like that. Depending on where you live, you may have to obtain a commercial driver’s license in order to be allowed to drive a truck.
  • CDL and business plan – Once you’ve studied for your CDL, you have to take the test and obtain the license. We have to mention at this point that there is a difference between starting a business on your own, where you’re the only boss and employee, and a business where you want to use multiple trucks to cover a larger area. That being said, you need to come up with a business plan according to your needs and desires. That plan must contain information about the budget you have, the money you are willing to invest, how you expect to recover the investment, and what prices you intend on proposing based on local market. You should also try to come up with some marketing strategies at this point.
  • Get your truck – You can’t have a towing business without a truck, so make sure you purchase the best one you can afford. Ideally, you would buy a brand-new one, but you can also purchase a used one; in this case, you need to call an independent vehicle inspector to tell you whether everything is functional and on the up and up with your truck. Furthermore, there are various types of towing trucks; there’s the classical hook-and-chain truck, but it is said to include a bigger risk to damaging the car it transports. There are also the flat-bed and wheel-lift tow trucks which may be slightly more expensive, but more reliable as well, and they can tow larger cars, whereas the hook-and-chain cannot.
  • Business license – The department of licensing and inspection or something similar should be able to offer you a business license if you apply for one and meet all the demands.
  • Liability insurance – You will need insurance for yourself, your employees and your trucks, but to protect yourself in case customers’ vehicles are damaged as well. This is called a commercial liability insurance policy and it may save you a whole lot of trouble in case there are accidents.
  • Contact – If you’re on your own, you need to have at least a cellphone number and an e-mail address especially made for your business, so people can contact you easily. For a larger business, you need all that plus some headquarters, or at least a space where you store the tow trucks.
  • Promotion and marketing – Try to be as visible as you can; spread flyers around town, put an ad in the newspaper but, most of all, be online. Lots of people find what they need on the internet today, so if you’re present on some social networking platform you will reach a whole separate target market. Furthermore, since you’re only beginning, try to have some special offers, or some special service that your competitors don’t have. This will attract customers’ attention, after which it is up to you to turn them on your side.

If you study and perform these steps accordingly, you will learn how to start a towing business immediately, and you won’t have much trouble fulfilling your goals.

December 2017
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