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
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 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