Planning to establish a towing business, but wondering how you can make it work? If you want to be successful and surpass the competition you’ll need to pick a niche and increase your operational efficiency. We’ll discuss this in more detail below.
In this article, we’ll discuss several tips for running a thriving towing business. Let’s get started!
Steps for Starting a Successful Towing Business
Figure out what type of towing you want to do
The majority of tow trucks haul broken down vehicles to repair shops where they can be fixed, but there are more uses for one than just that.
To name a few, here are some of the different types of towing:
- Oversized load transport
- Parking enforcement
- Roadside assistance
- Classic vehicle transport
- Accident removal
- Heavy equipment transport
While there are several types of towing, you don’t need to opt for them all. Choosing a particular niche is a good start to building your brand. When your customers navigate to your website or call your number they’ll know exactly what type of work you do and spread the word.
Lastly, you may be wondering, how much does a tow truck cost anyway? Well, the type of towing you choose to do directly affects the price. The more heavy-duty the vehicle, the costlier it’ll be.
Lower operating costs when possible
Reducing your operating costs at your towing business without a doubt minimizes your expenses in the long run. That is every business’s goal right? Luckily for you, there are several ways you can go about this.
The following are some money-saving tips to help cut down on operational costs:
- Implement training programs to reduce accidents
- Reduce your idling time
- Stay on top of maintenance and repairs
- Monitor your tire pressure
- Install vehicle tracking systems
- Discourage aggressive driving habits
- Consider going electric
Keep an eye on your startup costs
As a startup, it’s important to cut down on unnecessary costs so that your business can grow and flourish. Therefore, choosing more cost-effective vehicles can be a good start. You don’t always have to opt for the newest and biggest tow truck on the market. In fact, some used tow trucks can outperform new ones with proper care and maintenance.
Buying used is an excellent option for those who are new to the industry and looking to grow their fleet. This way your capital can go towards multiple tow trucks instead of just one, or you can use what’s leftover for better equipment and safety training.
As a business owner in the towing industry, safety should be your number one priority. Not only will safe practices lower your chances of getting into an accident and help you save on insurance costs, but you’ll be known as a reputable company. As a startup, you’re reputation is everything and it can ultimately make or break you in the beginning stages.
You can improve safety at your towing business by:
- Implementing a thorough screening process for new hires
- Holding regularly scheduled safety training for drivers
- Requiring drivers to have their CDL
- Creating a pre-trip inspection checklist
You may be asking yourself, do you need a CDL to drive a tow truck? Well, not necessarily as it depends on your vehicle’s GVWR. Even though it’s not required in every instance, it’s a worthwhile investment if you plan to operate a tow truck for a living. Not only does it give you vital safety knowledge but you can also reduce your insurance rates!
In a nutshell, running a successful towing business can be done by taking into account the above tips.