How to Start a Towing Business?
If you are looking for a good business venture that you can invest in, you might want to take a look at the money-earning potentials of engaging in the tow business industry. Aside from the fact that there is less competition in the tow truck business, entrepreneurs that are engaged in auto towing businesses are more often assured of stable profits owing to the small number of towing companies that exist.
If you want to start a towing business, the following information can prove to be helpful:
Start-up cost and requirements
You will need a license to operate a towing company. Remember however that you need to be patient in securing a towing truck business license because obtaining a towing license can prove to be difficult. This is because towing licenses are strictly regulated.
People who are planning to invest in a tow truck business must also have at least $10,000 for a towing business start-up capital. The starting capital for a towing company however can vary depending on your location and the type of operation you intend to have. In urbanized areas, for example, you might need around $200,000 if you are going to purchase a tow truck and a towing license.
Operating a Towing Company
Starting a towing company will not guarantee you that people will automatically call for your towing services business services when they need help with towing vehicles. You must do something so people will know about your auto towing business company. It is therefore best if you can have a good marketing strategy so people will remember your towing business should they need the services of a towing company.
You can post ads in local newspapers so people can read and know about you. It is also a good idea to contact companies that might need towing businesses to service them when they need to tow illegally parked cars in their vicinity. Towing business operators are also advised to come up with easy-to-remember names and phone numbers so people can easily recall their company when vehicle towing services are needed.
A towing business is a good business opportunity given the small number of competitors in the industry. If you intend to invest in a vehicle towing business, make sure that you have the necessary capital needed as a start-up cost for your vehicle towing business. It will also help if you have an effective marketing strategy so people can easily contact your towing business when they need auto towing providers.
It is always better to focus on a small part of your niche as the market has grown very big and it will be tough to compete with others when you are just starting and don’t have a specialized service. When I say specialized service then I mean either you concentrate on starting a heavy-duty tow trucks business, boat towing service, bike towing, etc.
It is always advised to buy used tow trucks to start the business rather than going for new ones. If you buy the used ones then you save on your budget and can use the extra money on advertising your towing business because end result depends on the number of hours you keep your tow trucks busy.
Watch this Training Video, If You Wish to Start This Business
- Getting Tow Truck Insurance
Now, finding the best quotes for your tow truck insurance is easier if you know where to go. Learn more on how you can get more tow truck insurance benefits for your vehicle.
- How to Successfully Start Your Own Motorcycle Towing Business
Bike towing is rare, you don’t see that many people in this business but the scopes are unlimited in motorcycle towing business. Here are the steps to start a motorcycle towing company.
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LET ME HELP YOU UNDERSTAND TOWING AND RECOVERY INSURANCE. Call Travis Barlow Company for a FREE INSURANCE GUIDE and for a FREE INSURANCE ESTIMATE at 800-537-7152 - ASK FOR ANN at EXT. 3108. www.travisbarlow.com
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- A towing license is a requirement for any business that impound abandoned, inoperable or improperly parked vehicles. In Arkansas, one must secure a tow safety license and permit depending on the nature of the towing business. There is a license for a Consent Only towing, which means, the towing was done with permission from the owner of the vehicle; and there is another one for a Non-Consent Towing for unattended, abandoned, disabled or inoperative vehicle. The Web site of the Arkansas Recovery board provides information for those who want to contact the office regarding requirements for filing of a towing license and permit. The forms for licensing and permitting are also downloadable from the site. To get a license, the business' towing truck must pass inspection. The business must submit a copy of its Certificate of Liability Insurance. An additional insurance is required for a Non-Consent towing operator. Tow Safely License costs $100, while a Tow Vehicle Safety permit costs $36.00. The license and permit must be renewed yearly.
Towing Business Adviser
I have been thinking of starting a towing business. Why is there such a diverse amount of capital needed to start. I noticed $10k to $200k in capital was needed. Also I wanted to know how I could acquire funding to start the business. Is there any grant opportunities? If so can you assist me in my search. What are the pros and the cons, ans what can I expect for an earning potential of two trucks.. I thought of having a niche in recovery services for lending institutions seeing that the market for repossessions are extremely high. I appreciate any advice that you can give.