Business At A Glance
Startup Costs: $10,000 – $50,000
Home Based: Can be operated from home.
Franchises Available? Yes
Online Operation? No
Business Overview
In many areas of North America, obtaining a license to start or operatean automotive towing business can be a frustrating task sinceauto-towing licenses are heavily regulated. Some operators of towingcompanies forego the license entirely and don’t provide towing servicesto the general public; instead they only subcontract their services onan exclusive basis to car dealers and property managers.
However, thiscan still be a risky venture given that it may be difficult to secureproper liability insurance for this type of towing operation. Thealternative to waiting to be awarded a towing license is to purchaseone from an existing towing operator or company. Purchasing a towinglicense and tow truck in an urban area can cost you as much as $200,000with no towing accounts in place. Overall, starting an automotivetowing business can be a terrific and profitable business venture,providing a license can be obtained or purchased at a reasonable price.
The Market
Your primary customers will be people who are stuck in emergencyvehicle situations, or businesses seeking to tow illegally parkedvehicles. A strong marketing program–via advertising and word ofmouth–will help potential customers remember your business in a jam. Acatchy name and easy phone number will greatly help your business.