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How to Start your own Towing Business

Towing-orlando2Are you thinking of starting a tow truck business? If yes, then you should go for it. The tow truck industry currently consists of more than 50,000 tow truck businesses and brings in more than $7 billion yearly. This stat shows how lucrative the industry is, and there is more than enough space to accommodate everyone.

But before you can get deep into this business, there is a couple of useful information you need to know, as we have outlined in this guide.


Business Plan

The first thing you need to put together is a concrete business plan. You should have a clear plan of what exactly you want to do in terms of services to offer, the market to penetrate, and the structure of your business. Decide if you will be specializing in providing just towing or other services including emergency roadside assistance. Put your financials in order and have a clear team of managers and other towing workers who can deliver your vision and mission.


Business Registration

In this step, there are key issues you need to observe. The first one is coming up with a concrete business name. Your name should be easy to remember and help others easily understand what you offer. Feel free to play with a couple of word variations and if possible, add the term towing somewhere. Once you have figured out a name, make the necessary registration, and obtain an LLC to make your business official.



One of the great things about starting a towing business is that you don’t need a ton of money. The most important thing you need is at least one-tow truck to get things going. You will need to pay for insurance and have a physical location where you operate from and where you can store towed vehicles.



To operate a towing company, you will need to obtain a couple of licenses as set out by federal, state, and local laws. To drive a tow truck, you will need to have a commercial driver’s license. To operate your business legally, you will need to have a business license as well. You also need to obtain other permits as set by the local government to ensure all safety standards are met.


Tow Trucks

To fully operate your business without problems, you will need to have at least one tow truck. It can be tempting to buy the latest tow truck to position yourself as a serious company, but you don’t need to do that. You don’t need to buy the latest truck and shoot yourself on the foot in the process, out of financial debts. A truck as old as 10 years would operate perfectly.


Marketing Strategy

The success of any business in generating revenue and staying competitive lies in its ability to market its services. Marketing is all about getting the word out there. First, set up a website and make use of SEO to ensure you are searchable and discoverable to the users searching for towing companies in your locality. Embrace the full use of social media to get the word out there.

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