You had a brilliant idea to start a towing business, congratulations. But, you don’t even know the ‘T’ of Towing, no worries because we are here to help you. The best thing about starting a Towing service company is, it is one of the less competitive markets. There are not enough towing companies in any given city so you are safe from cut-throat competition.
Almost all the existing towing businesses are making a decent profit and are quite stable due to the low number of other companies that exist. There are some key aspects that you should know about how to start your own towing service company:
Categories Of Towing Services
You need to select which type of towing service you want to offer with your towing business startup:
Bike towing service
Bike towing service uses lightweight trucks for towing multiple bikes at once.
Heavy duty tow trucks
Heavy duty tow trucks for towing cars
Boat towing service
Boat towing service used at lakes, rivers and at the sea.
We will be considering Heavy duty car towing for this article as this service holds the majority in the towing service industry. So answers would be more specific towards the question, “How to start a tow truck business?” However, the answers provided may also give you a general idea of how to start any towing company. There would be many differences in other towing businesses compared to car towing but all these differences are minimal in nature and you will learn about them as you do deeper research on your specific model of towing business.
Now let’s answer the question that is drilling a hole in your head, “How much does it cost to start a towing business?” If you are starting your towing business you need at least $10,000 to $25,000 as an initial investment according to your individual business model. The cost depends on various factors like location of business (urban, rural), type of vehicle you are purchasing, etc.
To keep your towing business startup cost low, it’s always better to buy used tow truck instead of new ones as used truck costs quite lower and usually in a good condition due to less overall usage.
The money you save in purchasing the truck can be used in your advertising budget.
Getting a tow truck driver’s license could be quite difficult as the regulations for this category are very strict. However getting your towing truck business registered is easier and quicker process. Remember that starting a towing business without an appropriate business license is considered illegal. Most of the documentation is simple so administrative processes would not take a lot of time.
License and Registration
Liability insurance is a must before starting a towing and recovery business as there is always a chance that you could make some mistake and damage your client’s vehicle, not matter how big or small the damage is, you end up being responsible for it. Liability insurance takes care of such cases and pays for such damages.
Just starting a towing truck business doesn’t get you the customers, people must know that your company exists and you offer better service than your competitors. Advertising is a must for any startup and for a business like yours, it’s more than necessary to reach to people. People don’t usually remember phone numbers or names of companies so you should get a very easy and simple name for your company that people can remember and also purchase a phone number that is very easy to remember.
Besides this, some old school advertising methods like getting your details in your local phone directory and having billboards or posters set on main roads and crossings will make it easier for people to get to you. No other marketing is as efficient as internet marketing. When all the eyeballs are set on mobile and computer screens, it’s necessary to build your presence on such screens.
It’s not necessary that the place where a person’s car breakdown has your advertising billboard nearby. Most of the people don’t know who to contact when their car breaks down. Majority of the people call repair and auto body shops whose service they have used before. So partnering with such shops will give you more branding and clients through word-of-mouth advertising. You can also offer your services to these shops as many times their shop’s space is used up by cars that are just sitting there until their parts are shipped for installation.
Rather than remembering the phone number people prefer to have an app for any service. So, developing an app for towing business is a very promising idea. Having a handy app that your customers can use whenever they need your services is good for business. People will always opt to open the app on their mobile rather than going on the internet to find any other towing service, so it would be better if the app on their phone is yours.
You would need a team of excellent mobile app developers to build a high-end personalized app for your business. It’s of utmost importance to select the right team with the right budget to work on the towing truck on demand app development project. The cost of developing a mobile app can range from $5000 to $45,000 based on factors like how advanced features are you using, whether you have given the work to a company in your state or outsourced it, and many such points.
Towing business is very cost-effective and less competitive so with the proper input you can build a good name and successful towing service company for yourself. This article was focused on the general tips and advices for entrepreneurs who have just entered this field. If you need more information on the costing and advanced information on how to start a towing service company Contact US
The CEO of Excellent WebWorld and a digital marketing expert. Paresh loves to experiment with new techniques and strategies. The posts written by Paresh are awesome for businesses who are seeking for marketing ideas.