Even though the customer experience varies on a large scale, one thing is for sure. Start a towing company is one of the most lucrative on-road business there is in our time.
You had a brilliant idea to start a tow truck 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 business is that the competition is quite less in this market.
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.
Types of Towing Services
- Tow Disabled Cars
- Roadside Assistance
- Tow for Law Enforcement
- Tow Impounded Vehicles
- Tow for a City Government Body
- Motor Club Towing
- Tow for an Auto Repair Shop
- Tow for an Auction House
You need to select which type of towing service you want to offer with your towing business startup.
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 more in-depth research on your specific model of towing business.
Top 5 Tips to Start a Successful Towing company
1. Initial Cost of Starting a Towing Business
To keep your towing business startup cost low, it’s always better to buy a used tow truck instead of a new one. A used truck costs quite less and is usually in good condition due to less overall usage. The money you save on purchasing the truck would be better used in your advertising budget.
2. License and Registration of Your Towing Company
Each state has its own regulations So you must check with your state’s department of transportation to see what permits you’ll need to launch your tow truck business legally. Getting the required permits and licenses is very important to start a towing business. Starting a towing business without an appropriate business license would be an illegal action.
3. Liability Insurance for Your Tow Truck Business
Common Tow Truck Insurance Coverages
- Auto liability protects you if you are at fault in an accident.
- Bodily injury liability covers the driver’s medical bills in case of on-work medical needs.
- Property damage liability reimburses the property damaged while assisting your customer.
- Collision coverage pays for repairs or replacing your truck in case of an accident.
- Comprehensive coverage pays for any accidents other than collisions such as fire, vandalism, an animal strike, or falling objects.
- On-hook coverage protects you financially by covering the client’s car while it’s hooked up to your tow truck.
4. How to Advertise Your Towing Company
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. Still, 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.
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.
5. Digitization of Your Towing 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.
Still Confused on How to Start a Towing Business?
This article is on the general tips and advice 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.
