The towing business can provide you with all of the income your looking for!
Background Information about the Towing business
Many times, there will be a need for someone's vehicle to be towed. Either the car has broken down and it needs to be towed to a mechanic's so it can be fixed, or it is parked somewhere illegally and the owner of the property wants the vehicle removed. Only certain types of trucks have the capacity to tow these vehicles and not many people have these vehicles. This is where starting a towing business can profit you.
Pros of the Towing business
- The work is easy as you only need to hook the car up to your truck and drive away with it.
- The Towing Business is profitable
- The towing business is in Demand
- If you can get a AAA contract, then you'll have a stable flow of income.
Cons of Running a Towing business
- You may have to deal with angry people who's vehicles are being towed.
- You could be called at all hours of the night to deal with vehicles that need towed and it can happen in any sorts of weather, making the work harder and more miserable.
- Accedient calls take time and expertise. When there is an accident you have to work fast to get the road open again.
- It's hard to find drivers that will stay on because of the hours
- Its hard working in cold weather
- You'll need to learn how use a lockout tools for people that lock themselfes out fo ther car
- You're on cal 24/7
Licensing or Special Requirements for a Towing business:
You will need licensing to be allowed to drive a tow truck as well as special liability insurance to cover anything which may happen. You will also need to purchase permits which allow you to operate your towing truck within certain limits of certain areas.
Getting Started in the Towing business:
If you decide that you want to get involved in the towing business, you will want to determine how much the permits and licensing will cost for your area.
If you will be able to afford it, you will want to apply for those permits and then talk to both local car dealerships and mechanics to begin building relationships with them so that they will use you for their towing needs.
After you have the permits, a tow truck, and the licensing to allow you to drive the truck, you can start your towing business.
Minimum Start up Cost:
This can cost anywhere from $50,000 to $200,000 depending on the area that you want to start a towing business in. Permits and licenses can cost very different amounts based on how urban the area you are starting in is. This will also vary based on the truck that you can find to work with.
Minimum Start up Equipment:
You will obviously need a tow truck to begin a towing business. You'll need a lockout tools for people that lock themsleves out of thier cars. You will also need permits and licenses to be allowed to tow in your area and these permits can be quite expensive. Finding out what licenses you need is a very important step to your towing business.
Optional or Advanced Equipment
You may want to carry a number of tools which can help any minor repairs that you may come across. Additional things like extra chains, cables, and oil may also come in handy.
Hours of Operation:
You will need to be available around the clock for any emergencies which may come up. This will allow you to always take business and to keep both your customers and your partners happy.
Minimum Number of People required to Operate A Towing business:
You only need one person to run a successful towing business. This means, however, that you will have to be the only person to always go out on a job. Having an extra person to help you can be useful sometimes because this will allow you to have an occasional night off and will provide service for you while you are sick.
Associations:
Towing And Recover Association of America
http://www.towserver.net
Important Point To Keep In Mind
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