Before you invest in purchasing a tow truck or a plot of land to hold repossessed vehicles, it’s important to understand the costs associated with running the business. The monthly costs associated with running a tow truck business include: the cost of the tow truck(s), insurance, fuel, & business phone number. The optional costs for your tow truck business include advertising, having a website designed (strongly recommended), citations for your tow truck business map listing, and SEO work on your website if you want to get found by more people in the search engines. Lets take a look at the costs of doing business a little further.
The first, and most important cost of staring your tow truck business, is buying a tow truck. It’s important to shop around because tow truck businesses are constantly going out of business, so it’s not uncommon to find some great deals out there if you really apply yourself and look. You need to have a good understanding of the different types of trucks on the market and what job each truck is capable of doing. There are light duty, medium duty, and heavy duty tow trucks available that are all capable of performing different tasks. Most tow truck companies will have at least one of each different type of truck so they can handle any call that comes there way. If you’re just starting out, a light duty tow truck is usually the best option so you can perform basic towing services for small cars and trucks in your city. The other start up costs are pretty self explanatory and are just basic necessities for running your business. We will recommend that you shop around for insurance and try to get the best price, but most of the big insurance companies will have pretty competitive rates.
The optional investments that we mentioned earlier are extremely important to take into consideration. When you think about it, people needing tow trucks are usually busting out their cell phones when they are broke down and calling the first result that pops up from their phones search engine. Having your website and contact information in the map listings show up as one of the top results is very important when it comes to generating consistent business. You should at least have a website with a phone number and e-mail so if you do get found, people don’t have to search around for a way to contact you. We also highly recommend having a “instant quote” form on your web page so that people have a way to contact you if they don’t feel like talking on the phone.
There are some other extremely important factors when it comes to getting your company found on the internet such as map listing citations & SEO work, which we will cover more in depth in future articles. Before investing any money into your business, everything we’ve mentioned here is very important to take into consideration. You need to know how you will get customers, how you’re going to close those customers and sell them on your services, and you need to know how much your services will cost to make your business profitable each month. We hope this basic starters guide provided some useful information for all of you out there considering starting your own tow truck company.