Whenever it comes to starting something new, two things have to be considered. The demand and your knowledge about the business. As far as demand is concerned, towing is going to stay in demand.
Is the Business Beneficial?
Yes, the towing business is beneficial as the demand is consistent. The profits are good and considering that you don’t need much qualification to start this business, it all adds up. All you need is good driving skills and you are good to go. There are very few surprises and you will be helping others most of the time.
What are the Business Regulations?
To drive a tow truck, you need a license issued by the regulatory authorities. You must meet the required criteria to get the license. The laws may differ from state to state but the baseline is the same. After getting your license, you need to check the local laws covering your business locations. Register your business and make it legal. You will also need business insurance. Speak to your lawyer about whether you need liability insurance or not.
What kind of truck to buy?
A truck is the main requirement of this business and the kind will depend on the stuff you plan to tow. Your budget counts here so you have to decide carefully to get a truck that fulfills your requirements while staying within your budget. You may wonder whether to get a new or used one. The new one will be expensive but it will last longer with no worry for issues while an old one will be susceptible to problems though it will be cheap. If you decide for used, get an inspection first.
Consider these before deciding on your truck.
- The stuff you will tow with it.
- Mileage and how old the truck is. (in case of used ones)
- Towing capacity of the truck.
- Features you will need while towing.
Have a Business Plan
You must have a business plan. In towing business, a business plan means the services you will offer and your target customers. Whether you will be towing vehicles or loads of all kinds. You should decide whether you will work solo or hire a team. You should also plan your budget for the cost of setting up the business.
Learn some Skills
Towing business is a manual job and you should learn some skills if you don’t know them already. The whole towing business revolves around hitches so you should learn how to install a 5th wheel hitch. Some other skills include hitching, unhitching the trailers, changing tires, maintaining the truck et cetera.
Learning these skills is necessary as you won’t always find a mechanic on the road. Moreover, hiring a mechanic for every issue will cost you so much. You should at least learn to solve minor problems by yourself. For major issues, you can always hire a mechanic. In this way, you will increase your net profits considerably.