Towing is a business that is going to thrive in the future. Although vehicles are becoming posher and posher, yet road accidents occur every day. Therefore, the drivers need a little tow.
In the article you will get to know: how to commence a tow truck business on your own; the different towing facilities you can extend in your business and the variety of customers you can deal with. After covering all that, we will deal with the eight steps, which can really make your towing business flourish.
The steps we are going to cover are as follows:
- Benefits of Towing
- Can I Start a Towing Business without Experience?
- Types of Towing Business
- Things We Need to Get Started
- Steps to Start the Business
Benefits of Towing
- Consistency: The experience of the tow truck drivers is hardly filled with any astonishments and thrills. Their life is very consistent and predictable.
- Helping Nature: The tow trucks come when you need them. They are sincerely helping the people in need
- Anyone can start it: Anyone who knows driving and has a driving license can start a towing company.
Can I Start a Towing Business without Experience?
The answer is yes. We can commence the towing services if we have little or no experience at all. We however should learn the techniques of driving a heavily-loaded truck and safety procedures on roads. Also, learn how to adequately load the vehicles onto your towing truck without causing any damage.
Types of Towing Business
Since there are a number of vehicles running on roads, therefore, there are various types of towing in towing industry.
The most common types of towing businesses have been given below:
- Post-accident clearance: A lot of towing companies are working for cleaning up the debris and transporting the broken vehicles after accidents.
- Colossal load: It is a type of towing, which deals with the full or half houses that are hovering over the highways.
- Transporting Vehicles: A large number of tow truck drivers have a speciality in transporting vehicles.
- Other: There are some towing companies that deal with transporting other things such as boats.
Things We Need to Get Started
First and foremost, we need a Tow Driver ID for starting a towing business.
The rules for a towing business are not absolute; they differ from country to country and state to state. Generally, you will need the below-mentioned qualifications for getting a TowDriver ID in the United States.
- The driver must be eighteen or older
- Legal license of a tow truck driver
- No blemishes on driving record
- Not more than three accidents in the record in the last three years or so
- Absence of DUIs in the last five years
- No or only one DUI in the last 10 years
- Conversational language should be English
The real purpose of these rules is to ensure the safety of the people and things included in the services.
Steps to Start the Business
Here are the few steps to start the towing business
1. Create a Proper Business Plan
You need to be very clear about your business plan beforehand. You should know that will you do all towing yourself or will you hire the tow truck drivers. Moreover, the budget for trucks should be finalized at the start along with the budget for marketing, insurance, tools, and marketing.
After budgeting, finalize the payment process for your business. Will you charge on an hourly basis or will you offer monthly payments to the clients?
Afterwards, you should be clear about your administrative tasks that who will take care of all bills, payrolls and other office-related tasks.
2. Take Care of Legalities
Your towing business should be legal and for that, you can choose either a Limited Liability Company or a corporation. Moreover, it is also important to get the insurance of your towing business from the start.
3. Open a Bank Account
After registering your business, you have to apply for the employer identification number (EIN) on the IRS website, which is the tax identification number. The EIN number allows you to open a bank account on behalf of your towing business.
Opening a separate account for your business separates your personal and professional expenses and you can stay at ease this way.
4. Buy a Tow Truck
The largest expense of the towing business is buying towing vehicles. The investment for the truck varies from model to model but the average price can be between $40,000 to $100,000.
Here is the list of some types of tow trucks that you can choose from:
- Flatbed truck
- Wheel lift tow truck
- Hook and Chain tow truck
- Oversized tow truck
Make sure to properly check the truck if you are buying a used one to avoid any extra expenses after the purchase.
5. Check your Target Market
There are two types of markets in towing business that is B2B and B2C. B2B stands for business to business where you deliver to another business. B2C means business to customers where you are directly linked with customers.
A business owner should be clear about the people you will serve like the companies who offer roadside assistance or the local garages or auto repair shops. If you are into heavy load towing, then you can specialize in moving heavy equipment. In this case, your target audience would be the construction or building companies.
You should check your target market that where can you find your ideal customers and how much are they willing to pay you for your services.
6. Build your Brand
A brand gives your business a professional look and identity. The major goal of your business should be to provide loyalty to your customers and make them choose you when they want a towing business. The major elements of your brand will be:
- Business cards
7. Stay Reliable
Reliability is a crucial thing in successful businesses. When you sign a contract, then you should be vigilant enough to show your reliability. Consistency is another important element in the towing business that can build trust between you and your customers.
You can also collect reviews from the customers through social media apps like Google, Facebook, and Instagram etc. When the customers will find the towing business, your brand name will pop up.
Tips for Growing the Towing Business
The few tips and tricks for growing your towing business are:
- Friendly environment
- Maintain good relationships with customers
- Be punctual and regular
- Hire an employee for administrative tasks
- Request the customers to give reviews
- Give business cards to every client