Where there are cars there will always be a need for tow trucks. If you are thinking of starting your own tow truck business, it’s important to understand just what you need to do to ensure your business venture is profitable and successful. Here are 5 steps you’ll need to take when starting your own towing business:
Step #1: Decide on the Types of Services You’ll Offer
There are different types of towing services, and you need to determine which services you’ll offer before you can proceed. If you plan on towing stranded vehicles, you’ll need a specific type of truck. If you plan on towing cars that are parked illegally, you’ll need to learn the laws and partner with different establishments. Once you identify which services you’ll offer, write a detailed business plan that includes a list of services you’ll offer, the estimated cost to start the business, funding options and how you’ll market to the public or other businesses.
Step #2: Apply for Your License and Business Insurance
When it comes to specializing in heavy duty towing, Houston officials require that you have a special license. To apply for the license needed, you must submit your application and payment to the county clerk’s office on Houston. You may need to prove you have business insurance or a surety bond in place to protect the public when you are offering services. If you are hiring drivers, you also need to purchase worker’s compensation and apply for an Employer Identification Number.
Step #3: Shop Around for the Equipment You Need
You will obviously need a tow truck, but you’ll also need other special towing equipment to start your business. Price the cost of heavy duty trucks being sold by companies that are going out-of-business. You can also price the cost of trucks being retired from a fleet. Price shopping is the most effective way to keep start-up costs low.
Step #4: Find a Location to Store Vehicles
If you are going to hold vehicles in storage, you will need to rent a commercial space to park the vehicles. Keep in mind that you can charge your customers a daily rate for storage fees once you start towing. Consider the location, security measures you will need to take, and special insurance you’ll need to invest in.
Step #5: Start Advertising and Marketing
You’ll need to let used car dealers, vehicle owners, and businesses know that you are offering towing services in the area. Join networking groups, partner with different management companies, and start building your book-of-business.
Starting your own business can be risky, but when you know the steps to take you improve your chances of succeeding. Be informed before you start your business and reduce the time it takes to grow.