We have probably experienced car towing at one point in our lives. Whether it was from a friend who has a private truck or from a professional towing service, sometimes we can’t help but acknowledge the role of towing on and off the road.
That said, your tow truck business can progress when every detail during the planning stage has been taken into serious consideration. For instance, buying a truck will cost you an arm and a leg. Next is your location. Aside from competitors, towing companies charge per mile. Do you live in a busy area where you see countless vehicles per day? Are there various competitors? These are just some of the things you need to consider.
We’re all for helping entrepreneurs succeed in their venture. So we’ve encapsulated the top seven tips for running a successful tow truck business.
1. Establish a Goal
As with any other businesses, establishing a goal is always necessary, so you know where you’re at with your business. A tow truck business can vary. Some may want to tow private car owners during an emergency crisis. Some may also want to tow cars which are illegally parked in public spaces. You may also work with insurance companies to offer roadside assistance or partner with other third-party organizations.
Whatever you want to achieve out of your tow truck business, always set a clear goal and stick to it.
2. Consider Expenses
Buying a tow truck might be just half the battle. Although you can buy a used one between $10,000 and $40,000, you might need to shell out a lot for maintenance in the long run. Getting a new one on a mortgage may cost around $80,000 payable within six years depending on the payment terms.
Like I said, that’s only half the battle. You’ll need fuel expenses. Say, around $1,000 for a 4,000-mile service. Then there’s insurance, repairs and maintenance, and vehicle damages. These are some of the operational costs to get your tow business up and running for the first two to three years.
3. Obtain Licenses
Never overlook this step, or you can run into trouble with authorities. Always procure the necessary permits and pay the needed licensing fees in your state or area. The fees may vary. But to give you an idea, in Washington DC alone, the total fee of a two-year license is $1,809.50.
4. Get Your Truck Insured
Road accidents are inevitable. Around 20 to 50 million are injured or disabled from a road accident yearly. Get your truck insured to protect you from an accident – financially, at least.
5. Hire Seasoned Drivers
If you’re an experienced truck driver who wants to start your own towing business, always make sure to take refresher courses before hitting the road. If you’re hiring more tow truck drivers, make sure you hire only those with experience.
Your tow truck drivers will make or break your business. They also impact your monthly operational costs — ingrain safety and responsible driving at all times.
6. Find a Location for Your Trucks
You don’t necessarily need a physical storefront for this, but you need space which will serve as your garage that will house your trucks and the towed vehicles safely. Some of these vehicles might stay unclaimed for weeks on end. Remember that you also pay for damages in case anything happens to the vehicles.
7. Beef Up Your Marketing Plan
No matter how new and shiny your trucks are, or how many experienced drivers you have, if people don’t know about your business – you’re still bound to fail. Marketing is a vital step in establishing and growing your business.
One form of marketing that is gaining popularity nowadays is digital marketing. However, outdoor advertising such as flyers, billboards, and posters will still entice a broad target market, especially in high-traffic areas.