Tow Truck Towing Service Start Up Sample Business Plan!

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What kind of tow truck will you need to do the work you want to do? Different trucks can handle different jobs. How much will the tow truck cost? And, of course, how much will your tow truck insurance cost? When will you turn a profit? And how will you price your towing services? All businesses are not created equal, and this goes for your tow company. Pairing yourself up with people that know your business is smart business.

They may be able to offer advice that can help you reduce costs. You have to go through the process of making your business a legal entity when you start a tow truck business. This is for a couple of reasons. People like doing business with businesses. Having a legal entity makes you seem more professional.

You have to make sure to register for the proper state and federal taxes before you start your tow truck business and hit the road. Keep detailed, thorough records of all of your expenses — and all of your income. This will help you when you have to file your taxes every year because everything will be easy to find and understand.


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Each state has its own regulations for tow truck businesses. Getting the required licenses and permits is essential to having a proper tow truck business. Your DOT can help you get through the process of getting your paperwork, licensing, and permits on file. Pro tip : Make sure the name of your company matches the name on your trucks, insurance, and DOT number if you are getting one. All names must match.

Starting a Tow Truck Company – Sample Business Plan Template

You may not need all the various pieces of insurance unless you are doing a variety of towing operations rotational, roadside, private, auction, etc. Register your business with the secretary of state's office and the county clerk's office that oversees the county where you plan to operate the towing company. Use this number when filing all state and federal tax return documents. Purchase business insurance, such as general liability, property, auto and workers' compensation insurance, from a licensed insurance provider. General liability and property insurance help pay for costs associated with lawsuits, damage to towing equipment or a legal settlement.

Your state or county may require that you purchase a surety bond to help cover additional costs associated with a lawsuit or settlement. Surety bonds are also used to keep business owners honest when providing services to customers. Purchase towing vehicles and equipment from local truck and auto supply stores or online.

Do you want to start towing business?

Visit used auto parts stores or junkyards to purchase items at a low cost. Purchase computer software to maintain accurate towing records, bookkeeping and invoicing.

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Lease or purchase a parking lot or land to park vehicles after towing. Contact a commercial real estate agent to find a location that is large enough to park a variety of vehicles. Market your services to businesses in your community. Attend business-networking functions and auto trade shows or visit local businesses in person.

Any help yall can give me would be greatly appriciated gingin yahoo. How do tow companies find their customers? Not all customers know where they are located or are good at giving directions How do tow companies find people in a reasonable amount of time? It's pretty tough out there with all the competition, fuel prices and the recession. Try to get as many accounts as you can and keep your rates competitive but not to where your losing money.


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Try to get good motorclub contracts and drop the ones that are not willing to pay a reasonable contract rate. It helps to know the area but if you don't that's ok as the gps will guide you to the address given. Regarding insurance for younger drivers : There are insurance agents willing to take you on but are you willing to pay the premiums? Always call your insurance company before hiring a younger drivers as rates may be higher.

If you are looking to purchase new insurance for your start up business and you are young then you may have to do allot of reserch to find a agent willing to insure you. You may be put in a higher risk bracket and therefore pay higher premiums. Keep searching for better insurance rates especially as your business gains experience and hopefully you can show no damage claims for a certain period of time.

Anything is possible with research. Never give up trying to make your bottom line more profitable by reducing costs not only with insurance but in all areas of your towing business.

How to start a tow truck business (and hit the ground running)

Reducing your costs means your customers pay less and ultimately keeps your customers coming back to you and refering others as you have the competitive edge in pricing. Gabrielytu in Tempe, Arizona. I have a tow truck parking in my garage, and I want to start a bussiness in the tow industry. I have my own job, and i want to keep it, until I see it is safe to leave it.

I need to find out what i need to do in order to get started, what kind of licence i need and where to go an get it, also the cost of this licence. I know the insurance is expensive but I am willing to take the risk if i find the right driver in los angeles van nuys area. If i find the right person and I can afford the cost of all this, I will be fair with this person. Gabriel, my adress is: Gabrielytu aol.

You should be able to apply for the business license online. To get your business license type in google search: business license and your state. You will also need a federal tas id number. Tpye that in google search also. As far as what your willing to pay your driver , you are in the ballpark. If you need towing business training visit: howtotow.

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Old Tow Guy in Auburn, Washington said: by the way how much experience do you have? I am currently writing a ebook about starting your own towing business and it will show you everything except repo's and impound yards. I will send you a copy when I am done if you want. I would like to have a copy of your book, just tell me how much it will cost me, this is my email address. Gabrielytu aol. You can sign up at howtotow. If for some reason you were not redirected immediately after payment contact me by email from the email address on the site previously mentioned and I will send you a link ASAP.

Here's the link to obtain a federal tax id number online. Also your when registering for a state business license or federal tax id number make sure that. GOV is listed somewhere in your web browsers address bar so that you know that it is not a scammers fraudulent site. For WA State business license the link is www. I'm having a bit of troubl eexpanding. Mot because of the money but becuase I dont have the buisness to keep two or more truck rolling. Anyhow I know all the how to's of loading and unloading vehicles. So do you think its any other info in your course that i could benifit from?

There is other information in my course that you could benefit from such as the motor clubs phone numbers and addresses. If you need to keep two trucks rolling I would suggest signing up with as many motor clubs or roadside assistance companies as you can. The motorclubs will send you more work than local or retail accounts. They do not pay as well but they will make up for it in quanity and hopefully pay your bills. Since you have been a owner operator for a few years and have experience I don't know exactly what infomation in my course you could benefit from.

There is about 18 different topics and even trailer building plans. DMV Send me your email to: support howtotow. If you find it useful then you can go to howtotow. DMV towing in Woodbridge, Virginia. I'm am currently with several motorclubs and there are a few that i am having trouble getting with.

I have a couple of questions for you if you would like to lend an ear send me your e-mail. Can anyone help me with a little info. Looking at buying a rollback for my car lot and possible towing business. Bed limit the type vehicle I can tow? Any advice? Just one more thing dvau11, You might want to do a test and Load a extended cab truck on the tow truck just to make sure you are personally comfortable with the length. I don't know what year the tow truck is but check with your insurance company regarding the rates due to the year.

Upload your resume Sign in. Advanced Job Search. Forums are open to the public. Content is not continuously monitored. All content is user created. If you have a complaint about any content on Indeed, please contact Customer Support. Indeed reserves the right to remove any posts which Indeed feels are not relevant to jobs and company search. AZsaxon in Queen Creek, Arizona months ago charlescarl in Phoenix, Arizona said: In Nevada, you need to put in 2 years or 10, hours in the tow business and need to take a 50 question test to get a business license, but the tow truck drivers does not to take any test, but to have a good driving record, only..

Tow Trucks What type of truck should you buy? I see many people asking what are the requirements for their State? Unquote I Know that it can be difficult starting out and trying to figure out the best way to make a small towing business successful. Hope that helps. Best Regards, Wally. Thanks for the question DMV. For jobs in Finland, visit fi. Job title, keywords, or company.

City, state, or zip code. AZsaxon in Queen Creek, Arizona months ago. Hollywood in Hampton, Virginia months ago.

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