The average car on the road is over a decade old and there are more than 250 million owners in the US who will at some point need a tow. It also means more municipalities and businesses require enforcement and tow services to maintain their parking lots.
If you’ve decided to start a tow truck business now is the perfect time to do so. You want to be successful so there are some important steps to take when you start a tow truck business.
We’ve got a payload of info to help you start a tow truck business that is on the road to success right from the word Go!
The More You Know…About Everything In Tow
You need to know what you’re getting into before making a major decision like starting a new business, especially one that is in the towing industry.
Don’t get us wrong, it’s a great industry, but it’s crucial to your success that you make informed decisions rather than get in over your head or have problems because you forgot a step.
What’s Your Niche?
There are many niches you can focus on when you run a towing company:
- Law enforcement and accident calls
- Roadside assistance
- Wreckers and auto body shops
- Auction houses and car lots
- Motor clubs such as AAA
- Private business impound
You may also choose to focus on long-distance or intercity shipping/towing services or assist with a car show and racecar maintenance and transportation.
You’ll want to research where there’s a need in the market within your area. Have a backup plan in case one area is not profitable enough. You’ll likely have various contracts that may include a combination of the above mentioned niches.
It’s Just Business
Running a business in any industry can be tough because there are a million and one things to juggle and it all falls on your shoulders as the owner. You need to know something about business and seek the counsel of others who know more in order to be successful.
Look at other companies and see what they do that works and what isn’t working. Why is one business really busy and expanding its fleet of trucks when another one is selling off assets?
You don’t have to be an expert in every aspect of business just don’t be afraid to seek the help of one when needed.
There are many areas of business you may want to outsource or hire someone with extensive experience to handle:
- Accounting and Bookkeeping
- Company Physical and Cyber Data Security
- Website Design and Maintenance
- Marketing and Social Media
- Scheduling, Contracts,
- Insurance (important info here)
You will probably also want to have a company lawyer or legal representative to help you navigate any legal matters that may arise.
Have a Solid Business Plan
You may think it’s as easy as buying a tow truck, creating a webpage, and waiting for the calls to come in but there are a lot of things to consider when starting a new business especially in the towing industry.
You’ll need to make sure you cross all your t’s and dot all your i’s when dealing with people’s cars to avoid major headaches later.
There are things to consider like:
- Business Mission and Vision
- Business Structure
- Target Audience
- Financial Resources and Projections
- Marketing Plan
- Expenses and Financing Plan
- Licenses, Certifications, and Insurance required
- Employee Policies and Procedures
- Human Resources
The more detailed you make your business plan, the easier it is for others to see your vision as well. To secure any needed financing you’ll need to provide a clear picture of how you will make the business successful.
This will also help your entire team and clients know exactly what your vision for this company is and how you will accomplish it.
Make It Official
It’s important to ensure the business is official and a separate entity from you when dealing with property as pricey as a car. You will also be spending a lot of time on the roads and that increases your risk of accident, damage, or injury at some point.
You don’t want someone to be able to come after you personally in court. Making sure everything is official is also going to be helpful come tax time.
Before you fill out the paperwork and give your company its official name put some thought into what your company name, logo, and marketing plan will be so that you don’t regret calling it ‘Zzz Night Towing’ only to realize you’d be last on every alphabetical list of towing companies there was.
Shop and Go
You can’t start a tow truck business without a tow truck so that’s something you’ll have to take care of before you go on your first call. It’ll be hard to tow a car without one.
Be Your Brand
Once you give your company a name and have a clear understanding of your mission, vision, and goals it’s time to “be your brand’!
As you build your office, buy equipment, hire employees, create websites and social media profiles, create marketing material and begin networking with clients and other businesses make sure everything said and done is a positive reflection on your brand.
In order for your company to be successful, your brand has to give clients what they want. It can be particularly difficult to be seen in a positive light by everyone if you’re towing people’s vehicles on them.
You’re going to face a lot of emotion from individuals at times and you are going to have to remain professional with every single one of them to represent your brand and reflect your company in a positive light even if in a negative situation.
Online Marketing Strategies When You Start a Tow Truck Company
Philosophy students today ask “If a company isn’t on the internet, does it really exist?”
You need to be online and allocate resources to creating an effective and successful online marketing strategy that includes:
- Company Website
- Social Media Profiles
- Company Blog
- Business Directory Listing
Every aspect of your online presence should be search engine optimized and your business reputation should be closely monitored. Customer reviews, comments, and complaints should be immediately addressed in a professional and helpful manner.
Ready, Set, Tow
Now that you know more about how to start a tow truck business it’s time to get on the road and make all your dreams come true.
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