How to Start and Grow Your Own Auto Tow Truck Business

Owning your own auto tow truck business can be an extremely lucrative business. Entrepreneurs that operate auto towing businesses typically enjoy stable profits. Auto tow truck business owners can begin their operation with one truck, a business plan, a business license and insurance. There is always a need for vehicles to be towed. This results in a stable, practically recession proof business for many business owners. On any day of the week there are a number of vehicles that need to be towed for a variety of reasons. Reasons may include the following:

Vehicles are repossessed.
Vehicles may be abandoned.
Vehicles are parked in no parking areas.
Vehicles are immobilized due to accidents.
Vehicles regularly break down due to mechanical problems.
Vehicles may illegally parked due to violating street cleaning regulations.
Vehicles may have been driven by motorists arrested for various reasons.
Vehicles may be illegally parked with major parking violations such as fire hydrant blocking, etc.

If you start your auto tow truck business with one truck you won’t get in over your head too soon. With one truck you can manage your costs and determine if your actually net income matches your projected income based on your business plan. This also gives you an opportunity to examine weaknesses in your business if any. It also allows you to determine your strengths. This self-assessment is important because if you are aware of your strengths and weaknesses, you can make adjustments where necessary.

When starting an auto tow service business you will need to establish hours of service. You may need to offer 24 hour service if you plan to secure contracts with local and state government agencies. Government agencies as well as many businesses request 24 hour towing service capability as cars need to be towed 24 hours each day.

You can successfully operate a 24 hour operation with one truck. However, you will need two drivers. This way the hours can be divided into two 12 hour shifts for each. Therefore, each person can be on call for twelve hours each day.

You must promote your business so you should have promotional material. This should include at the very least business cards. You should call on companies that need towing services. This should include auto repair companies and other companies that need towing services including government agencies.

As your business becomes more profitable you should look for ways to increase your income. This can be accomplished by hiring more drivers and purchasing additional vehicles. The safest way to do this is to add one additional truck and one or two drivers at a time. This is what many small business owners with limited capital choose to do.

Prior to purchasing another truck you should have determined that the business income is sufficient to accommodate the purchase of an additional truck and the additional equipment required to do the job successfully. Also, there are the increased insurance costs. All additional expenses should be taken into consideration. Taking the time to build your business slowly is often the best road to success.