There are more than 40,000 tow truck businesses in the U.S. today.
But that doesn’t mean that there isn’t room for one more in your city or town. With almost 270 million vehicles registered all across the country, there is more than enough work to go around for tow truck companies.
Starting a tow truck business requires more than just a tow truck, though. There are other essential steps that you’ll need to take in order to set your towing business up for long-term success.
Make sure you make all the proper preparations before you officially open up for business and start providing towing services. Here’s how to start a towing company from scratch.
Create a Name For Your Tow Truck Business
When you first decide that you’re going to start a tow truck business, it’s a good idea to begin by creating a name for it.
Technically, there are more important things that’ll need to be done at the beginning of the process. Creating a business plan, for example, is of the utmost importance.
But your towing company isn’t going to feel real until you have a name picked out for it. Brainstorm some ideas and create a name that will let people know what you do while also sticking in their brains long after they’ve heard your name for the first time.
Once you have a name all picked out, you can register it and establish your business. This will make everything feel official and get you excited about setting up the rest of your company.
Come Up With a Business Plan For Your Company
After you’ve created a name for your tow truck business, the next order of business will be to come up with the aforementioned business plan. Your towing company will be destined to fail if you don’t have a clear business plan in place.
Your business plan should answer a bunch of key questions, including:
- What towing services will your tow truck company provide?
- How many tow trucks will you have in service at one time?
- What area will your towing company serve?
- How much will you charge for your towing services?
- Where will your company’s office be located?
- How many employees will you have?
- When will your tow truck company be open?
If you’re thinking about applying for a business loan to get the funding you’ll need to purchase a tow truck and other equipment, a business plan is a must. Lenders will want to see what you’re bringing to the table before approving you for a loan.
Purchase At Least One Tow Truck
You’re obviously not going to be able to run a tow truck business without at least one tow truck. So it’ll be important for you to invest in one sooner or later.
When you’re first starting off, you might be able to get away with using a used tow truck. As long as you repaint it and put your company’s name and logo on it, no one will be able to tell that it’s not brand new.
There is also all kinds of towing equipment that you’ll need to go along with your truck, like wireless towing light bars and more. Shop here for everything you’ll need for your tow truck company.
Hire Experienced Tow Truck Drivers With the Right Licenses
Are you going to be doing most of the towing for your tow truck company at the beginning?
If so, you’ll most likely need to get your hands on a Class B commercial driver’s license (CDL) in order to do it, if you don’t have one already. This will allow you to legally drive a tow truck in most states.
But if you’re not going to be doing most of the towing on behalf of your company, you’ll need to hire experienced tow truck drivers in your area who have a Class B license. You should run background checks on your drivers and try to find employees who will represent your company well and set a good tone for your business.
Set Up a Website That Includes Your Towing Services
Believe it or not, roughly 50 percent of small businesses in the U.S. still don’t have websites set up in 2019. And while this approach might work for those in other industries, it’s not going to work for a tow truck business!
You need to hire a web developer to create a website for you. It should include everything from your brief company history to the towing services that you offer. It’ll allow people to find your company and call on you for help with their towing needs.
Outside of hiring a web designer, you should also bring an SEO consultant on board to improve your rankings on Google. It’ll drum up more interest both at the beginning of your business operations and as you move forward.
Obtain the Proper Insurance Policies
Before you tow a single car, you need to make sure your tow truck company has the proper insurance policies in place. That means regular business insurance as well as any auto insurance that you might need.
Speak with an insurance agent about the best ways to protect your business. The last thing you want is for an accident to derail your plans and put your company out of business.
Market Your Towing Company Within Your Community
With so many tow truck companies scattered across the U.S. right now, the competition in your community is likely going to be tough. You’ll be vying for business right next to other tow truck companies.
You can get a leg up on your competition by running successful marketing campaigns. From hanging up flyers all over town to running advertising spots on local radio and TV stations, your marketing efforts will not go unnoticed by those in your community.
Start Your Own Tow Truck Business Today
One of the best parts about starting a tow truck business is that it won’t require a huge investment on your part. You can get everything you need to start your company for just a fraction of what it would cost to start other businesses.
You can also start to turn a profit pretty quickly. Once your tow truck is all paid for and you add a few more trucks to your towing fleet, you should be able to bring in some serious money.
Check out our blog for tips on building customer loyalty among those who call on you for towing services.