It costs a lot of money to start a new business from scratch. Studies have shown that, on average, people are often forced to put up more than $30,000 to get a new business off the ground.
It takes most new businesses at least two or three years to become profitable, too. It’s why starting a new business can be so difficult to do.
Here is how to make money in the towing business.
Establish a Towing Company
There are some entrepreneurial spirits who are under the impression that the only thing you need to do in order to tow cars for money is buy a tow truck and get to work. But this is not the case!
Before you start towing cars for a living, you need to establish a towing company. To do this, you’ll have to:
- Come up with a name for your towing company
- Register your towing company with your city
- Obtain the proper licenses for both your business and yourself
- Sign up for a business insurance policy as well as a commercial auto insurance policy
- Get access to funds for a tow truck, insurance, gas, etc.
- Put a business plan into place and stick to it
As you can see, there is a lot of legwork that’ll need to be done before you can tow for cash. It’s important to take each and every one of these steps before you begin towing cars.
Set Up a Physical Location
Once you’ve established your towing company and gotten everything into order, you’ll need to look for a physical location for your business. You’ll need a place to bring cars that you’ve towed.
Look for a large plot of land with plenty of places to park cars. An old auto dealership or gas station might do the trick. You might even want to eventually offer auto repair services to those who call on you for towing services.
The location of your physical location doesn’t have to be too fancy or anything. But it should help to legitimize your towing company and let people know that you mean business.
Purchase a Tow Truck
You’re obviously not going to be able to tow cars for money without a tow truck. So after you find the right property to set up shop, track down a tow truck for sale.
You might be tempted to splurge on a brand-new tow truck for your business. But rather than going that route, consider buying a used tow truck instead. It’ll cost less than a new truck and can be fixed up to look like new in no time.
You should have your towing company name put on the sides and back of your tow truck and include your contact information as well. This will help advertise your business to those in your community and provide them with everything they’ll need to touch base with you.
Buy Other Towing Supplies
After you take ownership of a tow truck, you’ll almost be ready to start towing cars for money on a daily basis. But before you do, there are some other towing supplies you might need to ensure your safety when you’re doing your new job.
For example, you should always have wireless tow lights with you when you’re towing cars. They will ensure that other drivers will be able to see cars you’re towing when they’re strapped to your truck.
Create a Website for Your Company
There are more than 43,000 towing companies scattered across the country right now. To make yours stand out from the crowd, create a website for your company.
Your website should include:
- Information about both you and your company
- A list of your towing services
- Your towing rates
- Testimonials from people who have used you for towing in the past
- Contact information
You should consider blogging on your website as well. This will help you improve your site’s SEO and make sure your website pops up when people search for towing services in your area on Google.
Market Your Towing Services
A website will help to market your business to those in your community. But designing a website and updating it early and often shouldn’t be the only steps you take to market it.
You should also:
- Hang signs up throughout your city or town to provide people with your company name and phone number
- Run advertisements on local TV and radio stations
- Sponsor community events to get your name out there
- Wear custom apparel with your business name and logo on it
- Start up social media accounts to connect with your customers
It’s almost impossible to run a successful business these days without taking some or all of these marketing steps. They’ll put you in a position to bring in more business day in and day out.
Hire More Tow Truck Drivers
When you first start your company, you might be able to get away with driving your tow truck yourself and providing all your company’s services. But as you grow, you’ll need assistance from other tow truck drivers.
Create job listings for tow truck drivers and look for the best, most responsible drivers in your area. This will help generate more income for your business and make you profitable in a hurry.
Start to Tow Cars for Money Today
The automotive towing industry is bringing in about $7 billion every year. If you want to get a piece of that pie, you can start to tow cars for money by following the steps listed here.
By establishing your business, getting your hands on a tow truck and towing supplies, and marketing your company, you can set yourself up for long-term success. It won’t be long before you’re stockpiling money thanks to your towing services.
Check out our blog for more information on marketing your business.