How to Start a Towing Business Using These Resources

September 2, 2020 1417 views

In this post, you’ll find a variety of tips and resources from various authors on starting a towing business, offering you a broad overview of the towing industry.

You’ll use these resources to decide if you want to start a towing business and you will use them later on if you decide to move forward.

Before you get to the resource section, there are a few issues to consider about getting into this kind of business.

A Broad Overview

As a tow truck driver, you’ll be helping motorists that need their vehicles towed. In many cases, you’ll get calls to change a flat tire, unlock doors because keys were left in the vehicle, or if someone ran out of gas.

Keeping up with the calls can be a stressful job, especially when you’re behind. You could be on one call, and another call comes in, and another, and so on.

If you’re on your own without any help, you could be on call 24/7, and that’s a tough way to go because you never have any time off. You can’t set your hours. Most towing operations run 24/7, so there is no time off.

At times you’re slow and have no work, and other times you won’t be able to keep up with the calls.

When starting, you might want to try and do everything yourself until you get established. Once your business is fully operational, you will need help to keep up with demand and have 24/7 coverage.

Questions About Your Company

Answering the following questions will help you plan your startup. You don’t need to have all the answers now, but you will need answers before you start.

  • Will you be doing all the work yourself during the startup phase, or will you be hiring staff?
  • Will you be operating as a home business, or will you need a commercial location?
  • What type of towing will you provide? Regular towing for vehicles, or will you focus on heavy rescue.
  • How will you finance your business?
  • Will you be bringing in partners or investors?
  • How will you market your new company?
  • What type of customers will you be targeting?
  • Will you purchase new or used vehicles?
  • Will you purchase one truck or a fleet of trucks?
  • Will you provide vehicle storage?
  • More in the resources to follow

Are You Passionate About the Towing Business?

The passion you have for your business will affect how successful you’ll be. If you have a passion for towing, then you have the drive needed to succeed. When problems arise, you’ll look for solutions rather than a way out.

If you want to know how passionate you are, consider this. If you had five million dollars in the bank and all your debts paid in full, would you still start this business?

If you answered yes, you’re on the right track, and you are passionate. If you answered no, consider what you would do, and should you focus on doing that instead?

Is There a Demand For Towing In your area

When you’re considering starting this type of business, it’s very important to ensure that there is a demand for your services in the area you’re planning to operate.

If you plan to open in a small town, the demand for your service may not be enough to make you a healthy profit.

On the other hand, if there are many tow truck operators in the area, you may be trying to get into a saturated market. If the market is saturated, it will be difficult for you to get any business in that area.

The competition may be fierce, with truck operators competing for each call.

Your ideal situation is to find an area where there is a demand for towing services, and the market isn’t saturated.

Inside Information

Here’s a tip you can use to get inside information that is useful and comes from someone who’s qualified.

Search for tow truck businesses that are for sale. Find the ones that you can visit and speak with the owners.

Before your visit, make a list of questions you have about the business.

When you meet with the owner, you’ll have a glimpse of what it’s like to operate the company, how profitable it is, what are the biggest challenges of running the business, why they want to sell it. Etc.

You’ll probably get a tour of the business and will be able to meet with any staff that they have.

The benefit of this approach is that you have inside information from someone qualified and experienced in the towing industry.

The second benefit is that you may find it is better to buy an established business instead of starting from scratch. Once you’ve met with the first owner, it’s time to set up another appointment with the second and so on, until you have exhausted your list.

Now you have inside information into this industry and whether it’s better to start your own business or buy one already in operation.

You’re not finished yet. Your next step is to look into getting into a franchise for towing. Like looking at businesses for sale, these meetings will also allow you to ask questions and get an overview of what it’s like running a franchise. You may find that getting into a franchise is a better route to take. Everything set up for you, including your business plan and steps for execution.

After the above meetings, you’ll have enough knowledge to make a better decision then you can at this point.

In the resource section, you’ll find towing businesses for sale and franchise opportunities to start your research.

A Collection of Resources Related to Starting a Towing Business

Considerations Before You Start

In this section, you’ll find tips and resources to help you identify if running a business is the right fit for you—some people like dealing with the products and services but don’t like attending to the business tasks involved.

Have a look at the article below to help you identify if running a business is a good fit.

What You Must Consider Before Starting Your Business

How to Start a Towing Business

In this section, you’ll find various points of view, for starting your business. Although the articles are similar, you’ll pick up tips and insights you haven’t considered by going through all of them.

Keep in mind these articles are a starting point. You’ll need to expand your research and speak with the right people to get the best information to plan correctly.

How To Start A Towing Company | Tow Company Marketing

How to Start a Towing Company

How to start a tow truck business (and hit the ground running)

How to Start a Towing Business: Everything You Need to Know

How to Start a Tow Truck Business

How to Start a Towing Business – StartingYourBusiness.com

How To Start A Towing Business? | Liberty Capital Group | Small Business Funding

How to Start a Towing Company in 2020: Towing Business Startup

Trends and Statistics

In the articles below, you will find tips and insights to give you an overall understanding of the towing industry. You’ll be able to identify trends showing if this industry is on the rise or the decline.

Take a look below for statistics and trends related to the towing industry.

Automobile Towing in the US – Market Size | IBISWorld

Tow Truck and Towing Services – Industry Analysis, Trends, Statistics, and …

2020 Automobile Towing & Road Service Industry Statistics & Market Research Report – AnythingResearch

2019 Motor Vehicle Towing Market Research Report

Profitability and Revenue

There is profit to be made in towing. Your profit will depend on how many trucks you operate, how busy you are, and how many calls you can handle per day.

Your profit will depend on your monthly expenses. If you have a large crew size, many trucks, operate out of a commercial building then naturally, your expenses are going to be high.

If you do all or most of the work yourself operate one or two trucks and run the business from your home, your expenses will be much lower, and your profits will be higher.

Your profit will depend on how you set up and operate your business.

How Much Does a Towing Business Profit | Abingdon Tow Truck

How Much Does a Tow Business Profit? | Bizfluent

Are Tow Truck Companies Profitable? – RITA

Startup and Operating Costs

Your startup cost will depend on how you set up your business. If you run it out of a commercial building, buy brand new trucks, and hire a lot of employees, your monthly costs will be high. On the other hand, if you start from home, and do most of the work yourself your startup and operating cost will be a lot lower. In regards to your monthly operating costs, the majority will fall under fuel, maintenance, insurance, and wages.

Have a look at the articles below for more insights on your monthly expenses.

When Getting Started In The Towing Business You’ll Need To Know The Costs | Tow Company Marketing

11 costs of running a tow truck business | Tow Truck Insurance Rates

Starting A Towing Business with Tow Truck Financing


Here are a few items you’ll need to have for your operation.

  • Equipment & Tools
  • Clevises & J Hooks
  • Chains
  • Hooks & Fittings
  • Jump Starters
  • Lights
  • Lockout Kits
  • Ratchets
  • Slings
  • Specialty Tools
  • Hand tools
  • Air Tank
  • Shackles
  • Snatch Blocks
  • Tie-Down Kits
  • Vehicle Movers
  • Winch Line
  • Towing Accessories
  • Truck Accessories
  • Impact wrenches
  • Fuel Containers
  • Jacks
  • More in the resources Below

When it comes to equipment, your most important piece of equipment you’ll be purchasing is your tow truck. When you’re starting, getting the right size truck that will be able to do the work is important. You want to research the marketplace for a truck that’s suitable for your needs. The last thing you want is a truck with a reputation for breaking down or is expensive to run.

Another issue you want to consider is whether you plan to purchase a brand-new truck or a used one. Naturally, used vehicles have wear and tear. You want to make sure you get something that’s in good shape.

Have a look at the resources below for the equipment you need to consider.

Tow Truck Equipment & Tools | Towing Supplies – I/D/E/A Auto Repair

5 Must-have Tools For Any Towing Company | NYC Towing Services

Essential Gear for Tow Truck Drivers – Pepe’s Towing Service | LA Towers


Trucks – Pre-Owned

Tow Truck For Sale – Equipment Trader

Tow Trucks For Sale – 2540 Listings | TruckPaper.com

Tow Trucks for sale | eBay

New & Used Heavy Duty & Medium Duty Tow Trucks & Wreckers for Sale

Wrecker Tow Trucks For Sale – Commercial Truck Trader

Tow Trucks | Wreckers For Sale & Lease – New & Used 1 – 22

Truck Accessories, Towing Equipment and Cargo Control: TrucknTow.com

Towing, Hauling & Recovery Products & Accessories | Zip’s AW Direct

Towing Equipment For Sale – Southern California Tow Equipment


The section focuses on the legalities of setting up your business. You’ll need to set up a company and other permits required to operate a tow truck on public roads.

You’ll need to contact your local state/province and municipality to see what laws and regulations are in place for your area.

You can find more information by typing “tow truck business license” + your city or state in your favorite search engine.

Have a look at the resources below for insights on licensing.

Tow Truck Company License Application Checklist – DCA

How to Get Your Registered Tow Truck Operator License | StateCE.com | StateCE.com

Apply for a New Texas Tow Company License – Texas.gov

Towing License – Business Services


Make sure you have more than enough insurance coverage for your tow trucks, employees, customers, and the vehicles you are towing.

Take your time and speak with a broker that specializes in insurance policies for tow truck operators.

This type of business has high-risk for mishaps; you could damage a car as you’re pulling it from a ditch. You’re always on the road with drivers that are careless around tow trucks and accident scenes.

Take some time to go through the resources provided below for a thorough understanding of insurance for the towing industry.

Better Tow Truck Insurance at the Best Price | Trusted Choice

Tow Truck Insurance

Tow Truck Business Insurance, Commercial Liability Insurance For Towing Companies

Liberty Mutual Insurance Introduces Trinity Towing Program | LMG

Garage Liability & Towing – Prime Insurance Company

Compare the best tow truck and towing insurance | finder.com

Here’s Everything You Need To Know About Business Insurance

Employee Considerations

Once your company is established, and you start to get busy, you will want to hire staff to help you deal with the workload.

I would say you’re most challenging task is to find good reliable drivers.

Tow truck operation is not a job many people like doing—your working outside, usually in harsh weather conditions.

You’re dealing with issues, like vehicles stuck in a ditch, or a muddy field, you may even need to recover vehicles from rivers, lakes, and ponds. Your employee will need to get in there to hook a chain to the vehicle.

Employees could be working in the dark where it’s difficult to see, and they will be attending many accident scenes. Therefore, you’ll need to make the position attractive to hire and retain employees you can build a team around.

Common Jobs Needed for Running a Business

Financing Your Startup

The startup cost for this type of business is high, especially if you’re looking to purchase an established business or purchase a fleet of trucks and operate a storage facility. Even if you’re a small operation, you may need a wrecker, a flatbed, and a pickup just for lockouts. Any way you look at it, you have a high startup cost.

See the resources below for tips and insights for financing your startup.

Keep in mind; if you’re purchasing your equipment from a dealer, they may have financing options available.

Tow Truck Financing & Loans by Beacon Funding

Tow Truck Loans & Financing for Start-Ups & Small Businesses

Starting A Towing Business with Tow Truck Financing

Loans For Tow Trucks & Wreckers – First Capital Business Finance

Simple Tow Truck Loan and Financing Solutions | Tow Dough

Tow Truck Financing: Rates, Requirements & Down Payments (2020 Update)

Everything You Need To Know About Business Loans

Business Name Ideas

In this section, you’ll find tips and name generators to spark your creativity.

You want to find a name that appeals to you and something relevant to your operation. The name you choose today is the name you’ll use for years to come, so take your time and don’t rush it.

You’ll also want to find a name that you can register along with the domain that matches.

Towing Business Name Generator + (Instant Availability Check)

1,000+ Towing Business Name Ideas + Availability Check

459+ Catchy Towing Company Names Ideas (Video + Infographic)

101 Great Towing Company Names – BrandonGaille.com

Catchy Towing Company Names Ideas

Business Plan

How to Write a Tow Truck Business Plan [Sample template] | ProfitableVenture

How to Write a Business Plan Using This Unique Collection of Resources

Business Cards

Tow Truck Business Cards – Business Card Printing | Zazzle

Towing and Wrecker Services

24 Best Auto Towing Transport Wrecker Business Cards images | Custom checks, Business card design, Business cards

Towing Business Cards for Automotive Towing Services | Towing Marketing – I/D/E/A Auto Repair

Latest Image Search Results Related to Towing Business cards

See Our Resource for Creating Attractive Business Cards That Work


200+ Superb Towing Logos | 50% Off Towing Logo Maker

Towing Logos: the Best Towing Logo Images | 99designs

Tow Truck Logos Images, Stock Photos & Vectors | Shutterstock

Towing Logo Images, Stock Photos & Vectors | Shutterstock

Tow Truck Logos | 81 Custom Tow Truck Logo Designs

Latest Image Search Results Related to Towing Business Logos

See Our Resource for Tips to Create an Impressive Logo


Best Towing Software | 2020 Reviews of the Most Popular Tools & Systems


Best Towing Software – 2020 Reviews, Pricing & Demos

Businesses for Sale

Towing Companies For Sale – BizBuySell.com

Towing Businesses for Sale | Buy Towing Businesses at BizQuest

Towing Companies For Sale, 23 Available Worldwide

Towing Companies For Sale – LoopNet

Towing Service, Auto Towing For Sale in California, CA. Towing Service, Auto Towing Franchises and Opportunities Businesses For Sale | BizBen

Towing Businesses for Sale, Towing Companies for Sale & Tow Businesses for Sale – Buy Sell Auto Car Towing Biz for Sale

Tow Truck Business For Sale – 6 Business Listings at Sunbelt Network

Latest Search Results Related to Towing Business For Sale

What’s the Value of Your Towing Business – Pathfinder USA

Franchise Opportunities

Speedy Towing Franchise Costs & Fees for 2020

Nationwide Towing Franchise | 10-4 Tow

The Ins and Outs of Owning A Franchise

Established Towing Businesses

15 Best Tow Truck Companies in US

Top 10 Best Towing Company in Los Angeles, CA – Last Updated July 2020 – Yelp

Top USA Towing Companies, Towing Services, Towing and Recovery

Marketing Tips

Tow Truck Marketing, More Cash Calls | Tow Company Marketing

How to market your tow truck business by building a brand

How to Promote a Towing Business?

3 Foolproof Marketing Ideas for Towing Companies

Tow Marketing Solutions – Get More Cash Calls & Leads!

How to promote your tow truck business with marketing

Marketing & Advertising Ideas for Towing Companies

Towing Advertising Service, Tow Truck Marketing

Tow company advertising services made easy! | Lift Marketing Group

Tow Panda – Best Towing Leads & Cash Calls for Tow Truck Companies

Article Mix

7 tips for running a successful tow truck business | InsuranceHub

How to Run a Profitable Towing Business | Balboa Capital

Learning the Ropes- Ways to Make it in the Towing Business | Get Started in the Towing Business

Tips To Running Your Towing Business – Durham Towing Company And Auto Repair

Some Positive Stories About The Towing Business – Top Dogz Towing

What are The Average Profits of a Towing Business? | Lift and Tow

Top 5 Challenges For Operating A Tow Truck – Timber Towing Company

Top business tips from towing veterans | InsuranceHub


thinking of starting a towing company: smallbusiness

DOT Compliance &; Asset Maintenance Solutions for Towing Companies – Whip Around

6 tow business marketing mistakes to avoid | Tow Truck Insurance Rates

6 Most Common Towing Company Mistakes On Roads You Must Know And Avoid

Tips to Avoid Common Work Truck Towing Mistakes | For Construction Pros

Common Towing Mistakes – Chicago Towing Blog

Four common mistakes to avoid when looking for towing services | S30 Media Network

Resources for Running a Business

Acey Gaspard’s Guide to Starting a Small Business — Made Simple

The Nine-Hour Business Tune-Up

Learning Center SBA.gov

Entrepreneurship Course Online | HBS Online

LinkedIn Learning: Online Courses for Business

Online Courses — Anytime, Anywhere | Udemy

Courses on Coursera.org Related to Business

Courses on Skillshare.com Related to Business


Top 25 Towing & Vehicle Recovery Blogs & Websites in 2020

Jan’s Towing, Inc. Blog | Towing and Auto Maintenance Tips

Towing Blog – Chicago Towing – Towing Blog – Chicago Towing

Blog | All County Auto Towing

Top 25 Towing And Vehicle Recovery Blogs and Websites To Follow in 2019 | LaptrinhX

Blog | Commercial towing | private vehicle delivery | Fleet Towing | Montgomery County

Irvington Tow Truck – Towing Blog

Our Blog | Driving Safety Tips | Marietta Wrecker Service

Highway Thru Hell | Discovery Canada | Watch Full Episodes | Discovery


Tow Truck Driver Lingo – Newark Tow Truck

The Encyclopedia of Towing Terminology – Glossary of Terms


Books from Amazon Related to Starting A Towing Business

Google Book Search Related to Starting A Towing Business

The Latest about Starting A Towing Business

Google Searches

Latest Search Results Related to Starting A Towing Business

Latest Image Search Results Related to Starting A Towing Business


Latest News Related to Starting A Towing Business


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