Towing business is not just a way to earn some profits; it also allows the service provider to help those people who are stuck with their vehicles on the highways. Hence, car towing is a business that is rewarding in a dual manner.
However, before starting your own towing business, you need to make some preparations. This involves obtaining the business registration, driving license and permits. If you are planning to start this business on a large scale, you may need a small business loan to finance your towing business.
If you are starting a new business, it must undergo the registration process. By doing so, you not only get your business registered with the state authorities but also give a proper structure to such a business entity. You can choose a sole proprietor entity, a limited liability company or a corporation.
Obtain a Class B Driver’s License
You can’t drive a tow truck with your ordinary driving license. For this, purpose, you must first seek the requirement for the Class B driver’s license. After obtaining this license, you can drive your towing vehicle. When your towing business grows, you would need more drivers and trucks. You must be careful when choosing drivers and hire only those having a proper driving license.
Buy a Tow Truck
Once you have done all the basic work, it is time to buy a towing truck. Usually, a used truck may cost up to $50,000. On the contrary, the price of a new towing truck is above the range of $90,000. This suggests that buying a used towing truck will be a wise decision if you are starting your business on a small scale.
If you don’t have enough money to buy a good truck, you can get help through financing services. In fact, various dealerships also offer this kind of financing that allows the buyer to receive a vehicle after paying the down payment.
DMV Registration and Permits
Different states have their own regulations regarding permits and DMV registration. However, most of the states require that tow trucks should be registered as “for hire” vehicle and must also obtain the permit. For this purpose, you must obtain commercial auto insurance policy as well as a general liability policy. After getting the insurance cover, you can download the form through the DMV website.
This particular form is essential for the tow truck registration; therefore, you need to fill it properly and without any errors. Moreover, for those tow truck companies that also serve across the state borders, such service provider must need another registration from the bordering state.
Build your Network
Once you have started your tow truck business, you need to give some kind of initial boost to your business venture for a good start. For this purpose, you can advertise your business in the area where you are offering the services.
In addition, you can also seek a few additional opportunities by collaborating with other companies. These companies have huge networks and offer their services throughout the country. By contacting these companies, you can serve their clients in your respective area.
Besides, you can contact various charities or organizations and offer them your car towing services at competitive rates.