If you feel that a towing company could greatly fit the needs of your community, then starting your own may be a lucrative opportunity for you. You may be hired to remove illegally parked cars, stranded vehicles, and other large vehicles for whatever reason. You could even start off with just one tow truck, and then get more as your business begins to grow. You could even start this business from home to save on start up costs! Follow this simple step by step guide if this sounds good to you:
Outline Your Business Plan
Every business needs a business plan when starting out. In your plan you’ll need to write about how you plan to operate. What services will you offer? Can you describe your business? What will you startup costs be? Labor costs? How will you get your equipment? You have a lot to think about and it all needs to be outlined in your business plan.
Apply for Your License
All tow truck businesses need a license to operate legally. Contact your local towing and recovery board, or your department of motor vehicles to apply for yours. Afterwards you’ll need to register your business in the area you plan on operating. Don’t forget to let the government know what you plan on doing either by filling in your tax return documents and going online.
You’ll need adequate insurance cover to protect yourself, your business, and your clients. You will need to compare all kinds of deals to work out which cover you best. There’s property insurance, liability, business, and even worker’s compensation. This will protect you in case of damage to your equipment, and any lawsuits. Make sure you’re honest when you apply so that you get cover suited to your business.
Start Off Your Fleet of Tow Trucks
Now it’s time to start off your fleet of tow trucks. You may only need one to start with, after which you can expand when you start getting more business. Truck leasing is an option if you don’t want to buy your first truck outright and just see how it goes.
Lease Some Land
As well as your trucks, you’ll need to purchase or lease some land to take the vehicles you tow. For this, a real estate agent should be able to advise you and help you to find a good location.
Get a Professional Phone Number
This isn’t compulsory, but it will make you look like a bigger, more professional business. Get a number just for business use that your clients can contact you on. Unlimited calls will be best.
Start Marketing Your Business
Now you need to focus on marketing your services when everything else is sorted. People need to know that you’re operating in order to get in touch with you! Build a website, buy TV ads, advertise in your local paper, etc. Why not make your business as environmentally friendly as possible to attract more clients?
You’ll need a bit of startup capital to get your business going, but you could soon be the owner of a successful towing company!