There are so many types of business out there involving transportation is some way. And while you may have already considered starting one, have you ever thought about launching your own towing and recovery business. This kind of company works directly with the general public, businesses and municipalities, and often involves helping people out in their hour of need. There are a few obvious qualities that you need to make a success of your new business venture including equipment, know-how, and ideally, some knowledge of the sector. As well as this, you also need to have a clear business plan that you follow to achieve the type of success that you are looking for. So, let’s look closer at how you cat get starting in the world of towing and recovery.
Draft Up a Business Plan
Starting any type of company involves creating a very clear plan of action that you write down, covering everything from the logistics of how you will set up your business to financing and marketing. Make sure that you calculate all expenses carefully including your start-up costs, assets, permits, licenses and insurance.
Consider Financing Carefully
If you are planning to start by running a one-truck operation, financing may not be that much of a problem to begin with. A traditional bank loan is likely to cover the cost of the truck and other related equipment (we will talk more about this in the next section). But if you have a plan which is on a bigger scale, you may need to look closer at the other financing options which are available to you. Be upfront with your lender so that they can fully assess your situation, your needs and the likely cashflow and turnover of your company.
Purchase the Tow Truck and Other Equipment
Obviously, your business will very much centre on your tow truck, so make sure that you choose wisely when you are deciding on the right one for you. As well as this, you may well need other equipment such as traffic cones and emergency lighting. You will also need a location where you store your truck, supplies, and other towing equipment that you require. Think about leasing storage units to store the vehicles that your recover. Establish your hours of operation and consider how many employees that you are going to need to hire to manage the business successfully.
Complete the Proper Paperwork
Make sure that your towing and recovery business has all the proper insurance provisions to cover events such as worker’s compensation, traffic accidents and property damage. Register your business and apply for business licenses and permits as required. Check out how to apply for the specific towing license that you need to properly run your business. Make sure that you keep clear records of all your paperwork. Of course, this is so much easier these days as everything is digitised.
Advertise and Promote Your Business
Once all the logistical details are dealt with, you have your equipment and your infrastructure is in place, the time has come to start advertising and promoting your business to your customer base. Start by designing some fliers and business cards that you can hand out to both local business owners and members of the community. Of course, your business name and number should be clearly displayed on your truck so that it becomes a moving advert. It is a good idea to start building up some good business relationships with local mechanics and owners of auto body shops who may need a towing company for their customers. Your local police station may be another good starting point where you can encourage repeat business.
To make a name for yourself, you could start off by towing unwanted vehicles away from people’s houses at a discounted rate. Don’t forget that digital marketing is also highly important these days. After all, if people find themselves in a difficult situation on the roads, Google may well be the first place that they head to. When you are thinking about SEO, make sure to target location-based keywords as this is what tow truck businesses centre on.
Be Flexible with Your Hours
When you are first trying to make a name for yourself in this sector, you may find yourself having to work longer hours so that you can get ahead of the competition. Advertise that you can be reached day or night and provide a number that people can call in case of emergency. Make sure that your number is clearly listed on any newspaper, television or radio advertisements that you choose to put out.
Hire the Right Members of Staff
For many people, the most daunting part of starting a business if they have never done so before is hiring and supervising employees. Finding staff with mechanical know-how and towing experience shouldn’t be too much of a challenge. But you should also be looking for people who are going to represent your company well. Customer service is also an important part of running a business of this kind. After all, your staff members will be encountering people at very difficult times in their life. The ideal candidates should be able to put complex mechanical details into layman’s terms.
Cover off all these points one by one and you will put yourself on the right road when it comes to starting a towing and recovery business. Every successful business starts with a strong plan, so take the time to draft this carefully in the first instance. Next, you will need to set about investing in the correct equipment and applying for all the necessary licenses, insurance, and other such paperwork. Advertise and promote your business to attract a wide customer base – perhaps offering some special offers and promotions to make a name for yourself. Finally, hire a team that makes you proud and encourages customers to recommend your business to their friends and family.