These days, one would agree that one of the most profitable industries is road transport. Why not consider starting your own tow truck business? With such high demand, you’re most likely to succeed if you’re mechanically inclined and can create a solid plan to match the business. But before you start, know that you should have more than just a vision and a plan to succeed. Here’s what you need to know before you start a tow truck business venture:
Draft a business plan
Write a solid business plan. Establish your long-term and short-term goals and determine your market. Do you intend to offer your service to private property owners? Or would you rather work with the police? Also, plan how you intend to finance the company. Did you save enough cash for your vehicles, physical location, insurance, etc.? Would you need to apply for a loan to finance all these?
Acquire the necessary licenses, permit, and insurance
Aside from having a driver’s license to drive a tow truck legally, you’ll need to have your business permit and other special permits as necessary. Some states will require you to acquire a zoning permit for the lot where you intend to keep the impounded vehicles. Due to the risks that come with transporting damaged cars, you’ll also need to have the necessary insurance such as carry liability insurance.
Build your tow truck business fleet and equipment
Do you have a limited budget? Then you can always start with a single tow truck. There are different types of tow trucks to choose from. But startups usually go for flatbeds over hooked wreckers. Also, make sure that you’ve got reliable tow truck lights. Your vehicles need to be highly visible and well-lit even during the day.
Secure a lot for your office and towed vehicles
Know that there are car owners who will fail to claim and pay for their towed and impounded cars. This is why you’ll need to secure a parking lot where you can keep the towed vehicles for up to weeks at a time.
Create a central dispatch office
You’re also required to have a dispatch office. When starting with a single truck, you can accept calls from your mobile phone (if you are the driver). As your business grows, you’ll need to obtain more vehicles to complete your fleet. Find ways to organize your business better, and this includes a central dispatch office complete with a dispatcher.
Hire the best employees
A business can’t be successful without a team of dedicated professionals to work with you. Hire only commercial drivers who have a clean driving record. Assess their backgrounds, train them properly with your company rules, and always remind them to put their best foot forward to encourage repeat clients and excellent reviews.
Start with your branding and marketing
It’s time you let the word out that you have a brand-new towing company that caters to your preferred market. Advertise locally both online and offline, keeping in mind to have consistent branding across all mediums and channels. It pays to create a business website, be active on social media, and take advantage of local citations. Of course, a business won’t thrive without offering excellent customer service.
If you think that you can handle a tow truck business and are ready for the opportunity to build your brand, then this list can help. Knowing the things that you will need to get you started is the first step in taking advantage of your investment successfully.
