If you have an interest in the towing business, go ahead and push through with it. It is the type of business that can be very profitable. You may even run it by starting with just a single tow truck; this will already bring in a certain amount of money.
All it takes to let this towing business grow is your investment in time, hard work and the use of your imagination. So if you have set your mind on starting this kind of business, these are some guidelines on how to get you up and running:
Just like beginning any other business, come up with a business plan. Every good entrepreneur is equipped with a plan. Your plan should include a list of every on hand, capital you have, a list of all your resources, an inventory of the things you need to purchase, and a list of the various licenses and insurances you must have.
Purchase a minimum of one tow truck to get started. If you already possess one, then that is an advantage. But as your business progresses, you are going to have to purchase more tow trucks. You have to be sure that these equipment you will be purchasing are reliable.
Get hold of a license for your business. You need to get one for each of the cities you are planning to work on. This step may take quite some time. Keep in mind that you must secure copies of all the documents you will be submitting to these cities.
Buy the insurance suitable for your towing business. You will be required to show the verification of your insurance once your licenses in these cities have been approved. When obtaining your insurance, you should not forget to include liability rates for your vehicles and people in case an accident takes place.
Promote your towing company. You may do this by spending on getting business cards made. Give out these business cards so that people can contact you in case they need your service. Aside from that, be connected with owners as well as managers of car repair shops. These people may one day have the need for a driver of a tow truck. You can also advertise by letting businesses within your area know that you can tow illegally parked vehicles within their properties without any charge to them.
Also be in contact with your city's police station. Have them add you in their list towing companies that could aid them in case any car accident takes place.
Get in touch with someone at the impound yard and talk to them regarding what is required for you to be able to take in vehicles.
Have a separate mobile phone for your business. This will be the phone number you will be giving out to prospective clients where they can contact you whenever they need your service.
While waiting for the processing of your licenses to finish, you may already start advertising your towing company. This is so that when you are already set to run this business, you will have enough contacts and a line of clients standing by.