How To Start A Tow Trucking Business in 2022

How to Start a Tow Trucking Business

For an entrepreneur with the right skills, starting a towing business is relatively risk-free and has a high probability of success. The car towing industry, where cars continue to break down and people still park in the wrong places, will continue to thrive. In fact, there are few signs that the US traction business will slow down with $8 billion in sales in 2019. 

It’s not easy to start a towing vehicle business. It takes time and effort to aggregate costs, purchase equipment, and get the right permits. In addition, running today’s traction business presents many challenges and difficult choices. 

This guide looks at the facts and numbers of the towing industry, considers the characteristics of the right person to run a tow truck company, and details the steps required to kickstart the towing business.

Current Market Stats

  • In the United States, it has more than 51,000 trucking businesses and employs more than 101,000 people. 
  • The market size of the towing automobile industry is over $ 6 billion. 
  • The towing vehicle industry is made up of most small and medium-sized enterprises, with no one having a market share of 5% or more. 
  • Between 2015 and 2020, the market size of the towing automobile industry decreased by an average of 0.2% each year.

Why Should You Start A Tow Trucking Business?

Starting a towing business is not for everyone. This work requires diligence, dedication, and detailed knowledge of the car. Below are some characteristics that make people suitable for the towing industry. 

  • When you start your own traction company, you run the show instead of working for others. If you like that freedom, we encourage you to start a towing business. 
  • Tow truck drivers can identify car problems and provide advice to customers to understand the mechanics who don’t really need to repair the vehicle they tow. 
  • Also, if you run into problems with the track, you can fix them yourself. If you choose to tow not based on the settlement, you can deal with many angry vehicle owners who can claim to be towed and become aggressive, even if you are under the law. Being able to properly handle these stressful encounters is a good fit for a towing business. 
  • According to ZipRecruiter, the average owner of a tow truck in the United States earns $88,156 per year. According to a 2019 report released by the U.S. Bureau of Labor Statistics, this is about $40,000 more than the average annual salary of a full-time or wage worker.
  • It costs over $ 200,000 to buy a truck, get a towing license and other necessary permits, and start a brick and mortar business. If you don’t think you can reach this huge amount, consider other entrepreneurial opportunities. 
  • Obviously, a tow truck driver should feel comfortable in the driver’s seat of a medium-duty truck. A medium-duty truck weighs a minimum of 26,000 pounds, so you must have a Class B (or Class A) commercial driver’s license.
Find Vetted Teams For Your Project With GoodTroopers


Team Structure To Develop Your Tow Trucking App

  • Android developer 
  • iOS developer
  • UI/UX designers
  • Quality assurance engineers
  • Business analyst
  • Project Manager
  • DevOps

How Do You Start A Tow Trucking Business?

  • Consider The Kind Of Business You Want To Start

There are ways you can make a living by towing. You can tow vehicles with disabilities, seized vehicles, etc. So take the time to think about what you want to do and who your ideal customer is. The number of possibilities and paths is endless. You also need to consider whether to promote the contract and, if so, with whom. 

And you have to think about the cost of starting your own business. What about overhead costs? What other costs do I need to consider, such as licenses and permits? What kind of tow truck do you need to do what you love to do? How much does towing cost? And of course, how much does your tow truck insurance cost? When are you making money? Also, how would you price your towing service? 

Not all businesses are created equal, and this applies to towing companies. If you don’t have a truck dealer, a finance company, an accounting firm, an insurance agent, or even a mechanic, work with a professional who knows your industry. Pairing yourself with people who know your business is a smart business. They may be able to give you advice that can help you cut costs.

  • Determine Your Target Market

It’s time to jump into the fun part because you’ve done well in all legal aspects: target your business. For towing, you need to decide whether to use the B2B route or the B2C route. B2B stands for “business-to-business” and refers to providing services to other businesses. B2C means providing services directly to consumers. 

Making these divisions from the start supports everything you do for your future tow truck business. What kind of business would you like to use? Is it a company like AAA that provides roadside assistance, or is it a local garage or car repair shop? In the case of heavy towing, your business can specialize in the movement of prefabricated homes and heavy equipment, so builders and construction companies will be the target customers. 

Consumer side breakdown You can tow a car for people and want to take it home rather than take it to bury. Be very clear about who your business will serve in a broader sense, and build a more specific and ideal customer profile from it. 

Narrow your budget for ideal customer locations and services. For B2C spectators, you can identify the ideal customer age, profession, and income. 

Don’t worry if it’s too specific. However, the finer the profile, the easier it is to talk to the audience.

  • Turning Your Business Official

When you start a tow truck business, you have to go through the process of incorporating your business. When you do it, you are doing it all formally, and you are also shifting the responsibility into your business itself as an individual. 

Basically what we’re talking about is this: Don’t manipulate with your own name. There are several reasons for this. First, if for some reason you do not pay your insurance claim, it gives you a layer of financial protection. Second, good marketing. People like to do business. If you have a legal entity, it may look more professional.

  • Have Your Taxes Aligned

Yes, you can’t avoid taxes. 

Before starting a tow truck business and going out on the road, you need to prepare the proper taxes. Make sure you have all your tax information organized. You may want to partner with an accounting firm and business tax professional. Then you won’t be able to leave your hard-earned money on the wrong table or misunderstand complicated rules. 

  • Have Your Bank Accounts Sorted

It is advisable to open another bank account for your business so that you can organize your finances. When starting a towing vehicle business, you can separate the business finances of opening a checking deposit from your personal finances. 

Accounting also has a summary. Keep a detailed and thorough record of all expenses and all income. Everything is easy to find and understand and will help you when filing your annual tax returns.

  • Have your Licenses & Permits in Order

Each state has separate rules for trend truck companies. You need to go with the state of the state to see which business license you need to legally start your trend truck. The receipt of the license and the necessary license is essential to have a corresponding trail truck business. Your point can help you to pass the process of taking your papers, licensing, and licenses in the profile.  

  • Also take care of your insurances

Insurance is a complex part of your business, and it’s the second most expensive part after your equipment. It is really important to know what your needs are and to work with the right insurance company. There is nothing to do with all of the various insurances until you do various towing operations (rotation, roadside, private, auction, etc.). The tow truck business comes with a lot of risks that different types of insurance need to protect yourself.

  • Market Your Business

Of course, your tow truck business cannot prosper without customers. You need to go out to the world to say that you are the best of the best – that is, commit to marketing your traction business. The only way people know that you are around is whether they can see you in many places. advertisement! Research the best places and ways to promote your business in the most cost-effective way. The better you promote, the more returns you will get. 

Start a website to raise awareness of your company and strengthen your business. Use social media to establish a presence online. There are many who need a tow truck business. Create a marketing plan and help them find you.

  • Scale Your Business

And then eventually as your business starts growing, scaling your business becomes the next step automatically. So you can always take your offline business online with the help of an on-demand tow trucking app — designed specifically for your business alone. 

This will not only help you take your business to an untouched audience but will add ease of use, accessibility in the experience of your users & will boost the credibility of your business manifold.

Suitable Technology To Develop An On Demand Tow Trucks App

Data and Application– jQueryPython, Node.js, React, NGINX, Java, MySQL, PostgreSQL, MongoDB,Redis ,EC2, Kafka,Swift,Go, Objective-C, Backbone.js,Cassandra, Spark is an Apache project,Hadoop,Apache Thrift, RIBs,,AresDB.

Utilities- Google Analytics,Elasticsearch,PayPal,Twilio SendGrid, Twilio, Mixpanel,Optimizely,TensorFlow,Crazy Egg,Heap,Braintree,HackerOne,Ludwig.

DevOps– Grafana,Terraform,Sentry,RequireJS,Prometheus,Puppet Labs,Nagios,Zookeeper,Graphite,Jaeger,Brunch,uberalls,M3,Zap,Kraken by Uber,Makisu, Peloton.

Business Tools-G Suite, Asana, Zendesk, Mattermost, OneLogin, iDoneThis, Delighted.

Wrapping Up

Launching your personal towing truck organization is an interesting step. It offers you a lot of extra management over your profession and your future. 

We are assured that our steps for beginning a towing commercial enterprise will set you up for success. Setting out with a stable plan and wearing it through till you’ve got your first glad patron will make for such a top-notch journey. 

Just Stay real on your task and cognizance of serving your customers to the best of your ability, and you’ll be destined for remarkable things. It takes a little willpower and difficult work, however, it’ll be really worth it. 

The best part is that you don’t have to undergo this process alone – we have the experts right here to assist you with any questions you’ve got about launching your own tow trucking business. We may even assist you to store cash in your tow truck coverage.

You can ask us for a free quote with our online quote form or by calling us.

Frequently Asked Questions When Building An Uber For Tow Trucks App (FAQs)

Q- Are there any on-demand tow trucking apps?

A. Some of the existing apps which provide similar services are: Honk, Morni, StrandD

Q. How do I increase the reach and recognition of my app?

A. Post-development, you need to make sure to have different marketing and partnership campaigns to increase the reach and recognition of your app.

Q. How do I make sure my app is working properly?

A. You need to give time for proper QA testing of your app to make sure that it is bug-free.

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