Build a Solid Business Plan

Next, create a business plan to build a successful towing business. Decide on your target client. Will you provide roadside assistance for the public or tow impounded vehicles? Or perhaps you want to offer towing services for the city or auto repair shops.

Use Smart Financial Planning

Being successful will also take careful financial planning. To run your business the right way, you will need enough capital to afford overhead costs and expand your business.

Below are some recurring expenses and startup costs that you’ll want to account for in your budget planning:

• Licenses and permits

• Purchasing tow truck(s)

• Tow truck insurance

• Employee salaries

• Business insurance

• Marketing expenses

• Vehicle maintenance and upkeep

• Gasoline

Buying a tow truck is probably the most expensive but vital investment for your business. Some new tow trucks cost $100,000 plus. Consider buying a used tow truck to save cash. However, buy a used truck with caution to ensure you purchase a quality used tow truck that’s in the best shape with lower miles.

Marketing Matters: Gain Visibility and Increase Exposure in the Marketplace

Once your business is set up correctly and you’ve purchased the truck(s) you need, then it’s time to grow your network of customers. Below are some helpful recommendations for promoting your business.

• Work with a graphic designer to create business and rack cards.

• Post your advertising materials at restaurants, grocery stores, and other venues with community bulletin boards.

• Place regular business card-sized ads in your local newspaper’s business and services directory and other directories.

Search Engine Optimization

Tow truck business owners may see greater returns by increasing their Internet exposure. One great way to do that is through search engine optimization or SEO. SEO is about understanding what your customers are searching for and what content appeals to them. Drivers needing assistance are more likely to do a quick Google search for a tow truck. SEO best practices help your website information appear on the top page of Google, increasing web traffic.

To optimize your content further with SEO, think about ranking for terms specific to your area like “tow truck Texas” or “towing in Dallas.” Narrow searches more using specific terms for geographic regions, even by a city or county.

Another idea is to complete online business profiles on sites like Google and Yelp to improve your chances of being found.

Multiple Sources of Business

To grow your business, you should seek multiple sources of business. Participate in roadside assistance services and police rotation work, and private business calls. Auto repair shop tows and non-profit vehicle donation pickups also can grow your business.

The American Auto Association (AAA) is a nationally recognized brand offering roadside assistance. Many of the tow trucks they dispatch are local contractors, so this may be one good way to expand your business.

Many drivers are AAA members and use them as their dedicated roadside service providers. Improve your reputation and build credibility by association with this trusted brand. Visit your nearest AAA to inquire more about signing on as a contractor.

Grow and Hire More Employees

Once your towing business grows and you purchase more trucks, you should invest in a central dispatch office. A multi-truck company is easier to manage with a dispatcher. As your business grows, you’ll receive more service requests and will need to hire more employees. Training your call representatives in customer service excellence will improve relations with your customers. Customer service, quick response times, and professional services are critical marketing tools to retain customers and attain new business.

Speedy Tow Truck Financing

Ready to get financing on a tow truck and start making money? Commercial Fleet Financing is one of the top tow truck financing teams in North America. CFF’s veteran loan specialists get deals done for customers who’ve been rejected by everyone else.

With the most rigorous training in the industry, you can count on getting the fastest, easiest, and best quality financing deal and service from the loan consultant experts of CFF for rotator tow trucks, rollback tow trucks, repo tow trucks, heavy-duty tow trucks, medium-duty tow trucks, and light-duty tow trucks.

You can expect credit pre-approval in as little as two hours, super-fast loan and lease funds, zero-money-down, and the most flexible programs in the industry.