Automotive repair guide

Starting a Towing Business

Towing issues, starting a business franchise, start tow truck business

So you are thinking to start a business, and exploring the business ideas. Here is a good business idea I am suggesting. Think of starting a towing company. It is not so much difficult as you are thinking. It is a good business venture having a lot of money earning potential due to less competition in the market. Also stable profits are assured in the business. You can start even with a single tow truck. Like all the businesses you need a firm planning, hard work, devotion, imagination and some initial amount to cover start up costs. Your initial investment may be approximately $10K depending upon location and type of operation. Yes in urban areas it may be high up to approx. $2 lacs.

What you need to start a towing business?

Here is a list of things you need to have for starting the business.
Business Plan: For a good business you need to make a concrete plan in advance. It will include your available capital to cover start up costs, your assets, list of things you need to buy, license and insurance etc. Think of a good business name which is easy to remember.
Tow Truck: As already stated you can start with a single truck. You may purchase a used truck of good quality. It should not be breakdown prone as it may mar your whole the budget in its repairs. Buying used tow truck may save a good amount of money which can further be invested in advertising your business. You can buy another tow truck after successful establishment of your business.
License: The most difficult part of your venture is obtaining a license to operate your towing business. Towing licenses are strictly regulated. You can not run your business in any city without this. It is a slow and difficult process and you need to be very patient while obtaining the license.
Insurance: You will need to purchase a good insurance policy for your tow truck. This insurance should cover all the breakdown costs and other costs involving damage to other vehicles or persons due to this tow truck. Also insurance policy is compulsory for operating the towing business.
Business Advertisements: It is a fact that for any business to be successful advertisements is essential. You may use your local news papers for the purpose. Advertisement through billboards, local radio station and yellow pages may be other options. Keep in mind that you have to advertise locally only in your area of operation. You may use good printed business cards. Referrals from other businesses for which you will work may be much helpful. You may also spread word of mouth about your business through your own personal contacts. This is a free but much effective form of advertising any type of business.
Co-Operation: You are a business person now and think like that. Try to take cooperation of your local bodies like Municipality, Police Stations etc. They will often need your services.
So what are you waiting for? Take the action now and establish your new business. Your profit will depend upon the number of hours you devote to your business. Earn more money, hire more workers and add more trucks to your business.

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