Towing business can be a profitable venture. However, you need to adhere to stringent regulations for licensing and other procedures. Below are some of the things you need to succeed in towing business.
Since regulations vary from state to state, it is important that you find out the detailed regulations in place. You are required to supply evidence and details.
Some of the things needed include a detailed list of all drivers who will drive the tow truck, extensive inspection of all facilities and equipment, substantive proof of reliable driving record, report of criminal background check of driver and proof of drug test results.
Capital and insurance
Come up with a plan that involves researching maintenance costs for tow trucks, up-front costs of training, additional marketing costs and employee management. This will give you a rough outline of the capital required.
It is also very important to look for an insurance provider who specializes in tow truck insurance. Look for the best type of coverage with affordable premiums. Tow truck insurance usually covers employees, equipment, impound lots and repairs for cars and trucks that may undergo damage during the towing process.
Analysis of the market
Analyzing the prospective markets will help you decide on the zone in which you want to start your towing business. Consider the population and competition in the area you want to start your towing business.
Once you have all pre-requisites in place, plan out a comprehensive and result oriented marketing strategy. For example, if you will be operating a public towing service, it is a good idea to market your business in the Yellow Pages.