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Tow Truck Business Plan Template

Written by Dave Lavinsky

Tow Truck Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their towing companies. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a tow truck business plan template step-by-step so you can create your plan today.

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What is a Tow Truck Business Plan?

A business plan provides a snapshot of your tow truck business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Tow Truck Company

If you’re looking to start a tow truck business or grow your existing towing business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your tow truck business in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for tow trucks

With regards to funding, the main sources of funding for a tow truck business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for tow trucks.

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How to write a business plan for your own towing company.

If you want to start a new tow truck business or expand your current one, you need a business plan. Below we detail what should be included in each section of your own business plan:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of tow truck business you are operating and the status. For example, are you a startup, do you have a tow truck business that you would like to grow, or are you operating tow trucks in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the tow truck industry. Discuss the type of tow truck business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of tow truck business you are operating.

For example, you might operate one of the following types of tow truck companies:

• Passenger Car Tow Truck : this type of towing company focuses on towing cars that have broken down, or that are being impounded.
• Commercial Vehicle Tow Truck: this type of tow truck specializes in towing heavy trucks or machinery.
• Specialized Tow Trucks: this type of business offers towing services for special vehicles, such as exotic and classic cars.

In addition to explaining the type of towing truck company you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the towing business?
• What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, signing X number of service contracts, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal business structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the tow truck industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the tow truck industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section:

• How big is the tow truck industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your towing truck company? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: consumers, law enforcement, trucking companies.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of towing truck company you operate. Clearly, consumers would respond to different marketing promotions than law enforcement, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other tow trucks.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes in-house towing vehicles and mobile repair and maintenance operations. You need to mention such competition as well.

With regards to direct competition, you want to describe the other tow trucks with which you compete. Most likely, your direct competitors will be tow trucks located very close to your location.

For each such competitor, provide an overview of their towing businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of vehicles can they haul?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide shorter wait times for service?
• Will you provide towing services that your competitors don’t offer?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a towing truck business, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of tow truck company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to towing passenger cars, will you provide minor maintenance services such as changing tires, or any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your towing truck company. Document your location and mention how the location will impact your success. For example, is your tow truck company located near an expressway, or next to an airport, etc.  Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your tow truck marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your towing business, including answering inbound calls, providing towing, billing and other administrative tasks, maintaining equipment, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to tow your Xth vehicle, or when you hope to reach $X in revenue. It could also be when you expect to expand your business to a new city.  

Management Team

To demonstrate your tow truck company’s ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing tow trucks. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a towing company or successfully running an auto repair shop.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you operate one tow truck, or will you have multiple trucks with varying capabilities? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your towing business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a towing business:

• Cost of trucks and maintenance.
• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses  

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your location lease or contracts you have won.

Tow Truck Business Plan Template PDF

You can download our tow truck business plan PDF to help you get started on your own business plan.

Putting together a business plan for your towing truck company is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert and know everything you need to about how to start a tow truck business. You will really understand the tow truck industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful tow truck business.  

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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to hire someone to write a business plan for you from Growthink’s team.

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Tow Truck Business Plan

It was 1916 when the first tow truck was invented, and towing industry has only grown since then. So starting a towing company can indeed be an attractive and profitable business endeavor.

Starting and managing a tow truck business can be challenging, but a solid business strategy and a well-thought-out business plan will help you succeed.

Need help writing a business plan for your tow truck business? You’re at the right place. Our tow truck business plan template will help you get started.

Free Business Plan Template

Download our Free Tow Truck Business Plan Template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write a Tow Truck Business Plan?

Writing a tow truck business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

• Introduce your business: Start your executive summary by briefly introducing your business to your readers.
• This section may include the name of your tow truck business, its location, when it was founded, the type of tow truck business (E.g., light-duty towing, medium-duty towing, heavy-duty towing.), etc.
• Market opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
• Product and services: Highlight the towing services you offer your clients. The USPs and differentiators you offer are always a plus.
• For instance, your towing services may include, towing services, vehicle recovery, transport service, roadside assistance, and salvage services.
• Marketing & sales strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
• Financial highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
• Call to action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

• Business description: Describe your business in this section by providing all the basic information:
• Light-duty towing
• Medium-duty towing
• Heavy-duty towing
• Describe the legal structure of your towing company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.
• Owners: List the founders or owners of your towing company. Describe what shares they own and their responsibilities for efficiently managing the business.
• Mission statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
• Business history: If you’re an established towing service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.
• Additionally, If you have received any awards or recognition for excellent work, describe them. Future goal: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

• Target market: Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.
• For instance, a towing company may target commercial business owners, municipalities, law enforcement agencies, and insurance companies that require towing assistance.
• Market size and growth potential: Describe your market size and growth potential and whether you will target a niche or a much broader market.
• Competitive analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your towing services from them. Point out how you have a competitive edge in the market.
• Market trends: Analyse emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.
• For instance, safety is a top concern in the transportation industry, so explain how you deal with this concern. This may include focusing on safety measures, such as driver training, safety equipment, and accident prevention.
• Regulatory environment: List regulations and licensing requirements that may affect your tow truck company, such as business registration, commercial driver’s license, vehicle permits, tow truck safety regulations, and operating permits.

Here are a few tips for writing the market analysis section of your tow truck business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products offered to customers. To write this section should include the following:

• Towing services
• Roadside assistance
• Storage services
• Vehicle recovery
• Salvage services
• Vehicle transport
• And other towing services.
• Describe each service: Provide a detailed description of each service you provide, including the process involved.
• For instance, towing services include towing of light-duty, medium-duty, or heavy-duty vehicles, such as cars, RVs, trucks, and motorcycles.
• Quality measures: This section should explain how you maintain quality standards and consistently provide the highest quality service.
• This may include regular inspections and maintenance, driver training and certifications, and safety equipment.
• Additional services: Mention if your tow truck company offers any additional services. You may include services like, emergency towing, accidental recovery, winch-out services, etc.

In short, this section of your tow truck business plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

• Unique selling proposition (USP): Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.
• For example, a diverse fleet of tow trucks, 24*7 availability, and quick response time could be some of the great USPs for a towing company.
• Pricing strategy: Describe your pricing strategy—how you plan to price your towing services and stay competitive in the local market. You can mention any discounts you plan on offering to attract new customers to your towing service.
• Marketing strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, Google ads, brochures, email marketing, content marketing, and print marketing.
• Sales strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include direct sales calls and emails, partnering with other law enforcement agencies and businesses, offering referral programs, community involvement, etc.
• Customer retention: Describe your customer retention strategies and how you plan to execute them. For instance, you may include introducing loyalty programs and offering personalized service as your customer retention strategy.

Overall, this section of your towing company business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your towing business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

• Staffing & training: Mention your towing business’s staffing requirements, including the number of tow truck drivers, mechanics, dispatchers, and other employees needed. Include their qualifications, the training required, and the duties they will perform.
• Operational process: Outline the processes and procedures you will use to run your tow truck business. Your operational processes may include receiving service calls, towing vehicles, maintaining tow trucks, and ensuring safety and compliance.
• Equipment & machinery: Include the list of equipment and machinery required for a tow truck business, such as tow trucks, winches, safety equipment, tools and supplies, diagnostic equipment, etc.
• Explain how these technologies help you maintain quality standards and improve the efficiency of your business operations.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your tow truck business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

• Founder/CEO: Mention the founders and CEO of your towing company, and describe their roles and responsibilities in successfully running the business.
• Key managers: Introduce your management and key members of your team, and explain their roles and responsibilities.
• It should include, key executives, senior management, and other department managers (e.g. operations manager, safety manager.) involved in the tow truck business operations, including their education, professional background, and any relevant experience in the towing industry.
• Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
• Compensation plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.
• Advisors/consultants: Mentioning advisors or consultants in your business plans adds credibility to your business idea.
• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your towing services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

• Profit & loss statement: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement. Make sure to include your business’s expected net profit or loss.
• Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
• Balance sheet: Create a projected balance sheet documenting your tow truck business’s assets, liabilities, and equity.
• Break-even point: Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.
• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.
• Financing needs: Calculate costs associated with starting a tow truck business, and estimate your financing needs and how much capital you need to raise to operate your business. Be specific about your short-term and long-term financing requirements, such as investment capital or loans.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the towing industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your towing business plan should only include relevant and important information supporting your plan’s main content.

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This sample tow truck business plan will provide an idea for writing a successful tow truck plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our tow truck business plan pdf .

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Frequently asked questions, why do you need a tow truck business plan.

A business plan is an essential tool for anyone looking to start or run a successful tow truck business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your tow truck company.

How to get funding for your tow truck business?

There are several ways to get funding for your tow truck business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your tow truck business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your tow truck business plan and outline your vision as you have in your mind.

What is the easiest way to write your tow truck business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any tow truck business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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How To Write a Winning Tow Truck Business Plan plus Template

Creating a business plan is essential for any business, but it can be especially helpful for tow truck businesses who want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every tow truck business owner should include in their business plan.

Download the Ultimate Business Plan Template

What is a Tow Truck Business Plan?

A tow truck business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Tow Truck Business Plan?

A tow truck business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Tow Truck Business Plan

The following are the key components of a successful tow truck business plan:

Executive Summary

The executive summary of a tow truck business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your tow truck company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your tow truck business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your tow truck firm, mention this.

Industry Analysis

The industry or market analysis is an important component of a tow truck business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the tow truck industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a tow truck business’ customers may include:

• Local businesses with a fleet of vehicles
• Individuals who own one or more vehicles
• Auto body shops and auto mechanics
• Car dealerships

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or tow truck services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or you may promote your tow truck business via word-of-mouth marketing.

Operations Plan

This part of your tow truck business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a tow truck business include reaching $X in sales. Other examples include expanding to new markets or launching new services.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific tow truck industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Tow Truck Company

Balance Sheet

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Tow Truck Company

Cash Flow Statement

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup tow truck business.

Sample Cash Flow Statement for a Startup Tow Truck Company

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your tow truck company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

A business plan is not a static document but should be updated as your tow truck company grows and changes. Review and revise your business plan regularly to ensure it remains relevant and accurate, especially if you plan to attract investors.  

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The Complete Guide on How to Start a Tow Truck Business in 2024

• By Rakesh Patel
• Last Updated: April 29, 2024

• Establishing a tow truck business requires securing the required permits, insurance, and licenses, in addition to adhering to safety and environmental regulations.
• Efficiency and service quality can be increased by spending money on dependable, well-maintained tow vehicles as well as specialized equipment and gear.
• Providing extra services like tire replacements, jump starts, and roadside assistance can increase customer satisfaction and provide new revenue streams.
• Maintaining accurate records and paperwork, such as logs and invoices, ensures easier accounting and tax reporting and guarantees compliance with requirements.

Do you want to start a tow truck company but need a stepping stone to get started?

You’ve come to the right place.

The tow truck industry is rife with opportunities. The automobile towing industry in the United States is worth $11.3 billion and is expected to grow by 2.9% by 2022. This staggering figure shows that starting a tow truck business is feasible and profitable.

This article will help you with everything you need to know about starting your own tow truck company. We’ll go over the various towing services you can offer in your small business and the steps you need to take to start a successful tow truck company.

Start your engines because we’ll pull out valuable information to help you start a successful towing business.

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Table of Content

• Why Start a Towing Business?

Mistakes That Lead to Towing Business Failure

Things to know before you start a towing company, 10 steps to start a towing business, how route optimization enhances profitability for towing companies, how does upper help tow truck business become more profitable, shift your gears towards owning a tow truck company, why start a towing business .

A towing company may be the way to go if you want to start a business that provides stability and little stress or excitement. Also, the towing business provides you with the following benefits.

1. High-profit margins

Net profits for your towing truck are generally around 90%, which is very high and helps you grow your business while easily managing costs.

2. You are your boss

You are responsible for almost all operations when you purchase a towing truck. Making decisions can be both empowering and liberating.

3. You have a good eye for mechanics

While a tow truck operator may not have to repair the vehicles they tow, understanding mechanics can help you identify automotive issues and advise customers. Furthermore, if something goes wrong with a truck, you might be able to fix it yourself.

4. You thrive in high-stress scenarios

You will almost certainly encounter many uncooperative vehicle owners who argue and become aggressive when you attempt to tow their vehicle, even if you are following the law. But, if you know how to handle these stressful situations well, you are suited for the towing industry.

5. It is highly scalable

Your company will always need new services, features, and products, with businesses and processes evolving daily. Furthermore, you can implement various business models and pricing tiers to reach a wide range of customers.

Even in a booming sector, some towing businesses fail to get off the ground due to some common reasons:

• Inadequate planning: This includes entering the market without a solid business plan, estimating expenses and competition too low, or not having a distinctive approach to differentiate oneself from competitors.
• Insufficient capitalization: A lot of towing businesses fail because they lack the initial funding necessary to maintain operations throughout the first difficult phase before profitability, which puts pressure on finances and ultimately results in closure.
• Poor marketing: Many towing companies suffer from poor marketing strategies, which make it difficult for them to continually attract new clients and build their brand. These issues eventually hamper their growth and success.
• Operational inefficiencies: This includes improper route optimization, excessive fuel and maintenance costs due to inefficient operations, and poor customer service, leading to negative reviews and loss of clientele.
• Regulatory non-compliance: Failure to secure the required licenses, permits, and insurance coverage causes many towing companies to fail, resulting in fines and legal problems that can seriously affect business operations.
• Substandard vehicles/equipment: Towing businesses that rely on outdated, unreliable tow trucks are prone to frequent breakdowns, service delays, and dissatisfied customers, ultimately damaging the business’s reputation and profitability.

Sometimes, even the best company ideas fail if they lack meticulous planning, enough funding, effective marketing, and operational excellence.

Before we dive deep into the steps, you need to start a towing business. There are a couple of things that you should be aware of.

How much does it cost to start a towing business?

Starting a towing business involves several expenses. The primary expense is the purchase of a tow truck, which can range from $40,000 to $100,000 based on its kind and condition. 

You’ll also need to budget for registration costs, insurance, licenses, and permits. Other startup costs include equipment like towing gear, safety lights, and vehicle maintenance tools. 

Marketing expenses, such as website development, advertising, and business cards, are also necessary to draw clients.

Thus, it is imperative to create a detailed business plan to estimate these costs accurately and secure funding accordingly.

What are the different types of towing businesses?

There are many different types of towing, just as there are thousands of different types of vehicles on the road. Most of these involve transporting vehicles from where they broke down to the workshop, but others are a little more unique.

The most common types of towing companies are:

1. Light-duty towing services

These services are appropriate for most small cars, motorcycles, vans, and light commercial vehicles.

2. Medium-duty towing services

It involves trailer and horse box towing.

3. Heavy-duty towing services

It involves towing commercial vehicles, up-righting rolled-over trucks, load shifts, etc.

4. Transportation services

It involves the transportation of compressors, generators, construction equipment, etc.

For more insights on maximizing your towing business’s profitability, consider checking out how to make money with a cargo van for innovative strategies and tips.

How to get your tow driver ID?

A tow driver ID is required to start a towing business and drive a tow truck yourself.

To get a Tow Driver ID in the United States, you’ll need the following qualifications:

• 18 years of age or older.
• A commercial driver’s license.
• A perfect driving record.
• In the previous three years, no more than three accidents occurred within a year.
• No DUIs in the last five years.
• No more than one DUI in the previous ten years.
• Conversational English is required.

These rules may be subject to exceptions and more specific criteria based on your location. The main goal of these stringent guidelines is to ensure that only trustworthy individuals operate tow trucks and handle vehicles. Additionally, ensuring your dispatch office and parking facility meet the required guidelines adds to a more secure and reliable towing service.

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A towing company is a profitable and evergreen venture that cannot be affected by the recession. However, getting started necessitates preparation. Let’s detail the steps you need to know before you start your towing business.

Step 1: Choose the towing service you want to provide

Starting a towing business is simply the initial step; you must also decide what type of towing business you want to open. Tow truck companies are classified into two types: retail towing, also known as consensual towing, and non-consensual towing .

• Consensual towing is when a company offers roadside assistance to a customer whose vehicle has broken down or been damaged in an accident.
• Non-consensual towing companies work with private property owners and law enforcement to tow vehicles illegally parked or otherwise in violation of the law. 

However, non-consensual towing companies face challenges such as belligerent, uncooperative vehicle owners and strict local regulations governing where and how long vehicles can be impounded. Non-consensual towing company owners spend a lot of time in court, but they rarely lose cases.

Therefore, understanding the dynamics of each type of towing and taking into account your actual location is essential before starting your business venture.

Step 2: Make a business plan

Every successful company begins with a good idea and a solid plan to back it up. Writing a towing business plan may appear daunting, but it simply entails getting your ideas out of your head and onto paper.

You’ll need to decide what type of towing services your company will provide and who will receive them. Business expenses also play a crucial role in your planning.

Will you do all the towing yourself, or will you have a team of tow truck drivers working for you? 

Making these decisions early on will assist you in determining the structure of your towing business.

In addition, you should figure out your business budget and choice of location. You should know how much you will spend on a truck and other startup expenses for your company. 

While business planning, consider insurance, marketing, and branding materials. Also, determine how much your business will need to charge to be profitable.

Will you charge flat rates or by the hour? 

It’s a good idea to develop specific processes for your tow truck business at this point. For example, you should write down the steps you’ll take every time you go out on a call, from when your phone rings until you deliver the vehicle to its final destination.

Step 3: Register your business

You must first complete some important paperwork before you can open your doors for business. To register your company with state and local agencies, you must choose the business legal entity that will influence how you file your business taxes and risk exposure. This decision also plays a crucial role in establishing your business name and brand identity in the market.

We’ve narrowed it down to the two most common:

1. Limited liability company

Limited Liability Company (LLC) can be formed as a single entity or with several business partners. This business structure appeals to tow truck companies because it provides some personal liability protection. You, the individual, are protected during a legal dispute.

2. Corporation

Forming a corporation may be the way to go if you want to grow your business into a national brand. This independent business entity enjoys many of the same liability protections and tax advantages as LLCs and others. However, more paperwork is required, such as creating bylaws and forming a board of directors.

You will also require liability insurance and business insurance. You can consult with a lawyer to determine what type of liability insurance you need and how to structure your contracts to protect yourself if a vehicle towed by your company is damaged.

Accidents happen, but accidents involving something with a monetary value, such as a vehicle, can be extremely costly to your company. Ensure you have adequate insurance not to cost your company a fortune if something goes wrong.

Step 4: Open a bank account and register for EIN

After registering your towing business, you should apply for an employer identification number (EIN), which is essentially a tax identification number, on the IRS website. Your EIN allows you to open a business bank account on behalf of your new towing company.

Open a bank account with a debit card and charge all business expenses. This includes towing vehicles, equipment, gasoline, tow truck insurance, truck financing, and anything else required to perform your duties.

Business accounts will keep your tow truck business finances separate from your personal finances. This will help to avoid tax headaches and build business credit. Business credit helps you qualify for credit cards and other lines of credit.

Step 5: Obtain licenses and permits

To operate a towing business, you must obtain the necessary licenses and permits. Check with your state’s Department of Transportation to ensure you meet all requirements for the business license. Business owners need to check with their state and local county clerk’s offices to check for specific permits.

Tow truck vehicle owners will typically need to obtain the following company licenses and permits:

• Indictment management permit 
• Private property permit
• Consent to tow permit 
• Oversized vehicle permit
• Overweight vehicle permit
• Class B driver’s licenses

Step 6: Purchase a tow truck

To provide towing services, you’ll need to purchase a tow truck. As it will be your most expensive purchase, you can go for business loans. Depending on the model, the tow truck cost will likely range between $40,000 and $100,000.

The type of tow truck you purchase will determine the services your company can provide. A truck designed for regular vehicles cannot transport an oversized load, such as a standard-sized vehicle.

Here are various types of tow trucks you can choose for your business:

• Flatbed trucks
• Tow truck for oversized loads
• Tow trucks with wheel lifts
• Tow trucks with hooks and chains

Step 7: Look for a route planner 

Fast response times enable a tow truck to compete with other towing services. Individuals frequently want their vehicles towed as soon as possible when they break down, and property owners want improperly parked cars removed as soon as possible. Providing prompt service keeps these customers satisfied.

However, manually planning routes is time-consuming, and this method results in going on fixed routes with no real-time data about the current condition.

Route planning strategies are essential if a company wants to reduce all unnecessary overhead  costs.

Avoiding route planning hurts both performance and fleet management.

Therefore, it is preferable to use intelligent route planning software to find efficient routes.

Step 8: Identify your target market

With the legal issues settled, it’s time to move on to the fun part: determining your company’s target audience.

Regarding towing, you should decide whether you want to go the B2B or B2C route. B2B is an abbreviation for “business to business,” meaning you’ll serve other businesses. B2C implies that you will serve customers directly.

Making this difference from the start will help you with everything you do for your tow truck business in the future.

What types of businesses will you serve if you do? 

Will they be roadside assistance companies like AAA, or will they be local garages and auto repair shops?

For heavy-load towing, your company could specialize in moving manufactured homes and equipment, so your target audience would be builders or construction companies.

And on the consumer side, you could tow vehicles for people who have a breakdown and prefer to take their car home rather than to the shop.

Determine who your company will serve, and then create a more specific ideal client profile.

Step 9: Build your brand

Establishing your brand will be a piece of cake once you’ve identified your target audience.

Your brand’s visual elements will include your website’s logo, fonts, color palette, business cards, pamphlets, and other marketing materials.

The ultimate goal is to create a brand that connects with members of your community and fosters brand loyalty. You want your brand to be the first thing that comes to mind when someone needs a tow truck.

Step 10: Promote your business

Consider how you will publicize your business. Here are some marketing suggestions for your tow truck business to reach their potential customers:

1. Create a website

Create a website that includes an online request for a quote or booking form, as well as a list of your services, experience, and relevant licenses and permits. Make sure your website is optimized for search engines; this will ensure your site ranks highly when someone searches for two truck services. Finally, make sure your website is designed for both desktop and mobile users.

2. Create an account on social media handles

Establish business pages and accounts on Yelp, Facebook, Google My Business, and Twitter for an online presence where you can share updates, news, images, and reviews.

3. Advertise

Spend your marketing budget on advertisements in local newspapers, online forums, radio, and highway billboards. Print flyers and business cards and hand them out to local businesses.

In the towing business, making a profit depends on getting as many towing jobs done as possible. Your potential revenue increases with the number of tows you can manage.

Route optimization is the key to maximizing the number of tows your business can complete . 

Optimizing the routes involves considering pickup and drop-off locations, tow truck capacity, travel times, and driver schedules. Additionally, optimized routes also reduce the total distance traveled, which saves a significant amount of money on fuel. By taking this action, you can increase operational efficiency and make your business run more smoothly. 

However, route optimization is tough because there are lots of things to consider, especially if you have many tow trucks. Therefore, implementing route optimization software automates this process, eliminating the guesswork and maximizing profitability.

Most tow truck businesses now use Upper’s delivery truck routing software to simplify their drivers’ routes. Here’s how Upper can help the tow trucking businesses:

• Route Optimization: To find the most effective routes, Upper’s sophisticated route optimization algorithms examine several variables, such as driver schedules, traffic patterns, and pickup and drop-off locations. Upper increases the number of tows completed in each trip and reduces fuel costs for tow truck companies, which helps them run more profitably and efficiently.
• Driver Management: Tow truck companies can effectively schedule jobs depending on their drivers’ timetables and proximity to service locations by using Upper to track their drivers’ positions in real-time. This guarantees timely service and efficient resource utilization, which eventually boosts productivity and profitability.
• Customer Support: Upper makes it possible for tow truck companies to give their clients precise arrival times and to stay in constant contact with them during the towing process. Tow truck companies can increase customer satisfaction and loyalty by managing client expectations efficiently and providing great service, which can result in good referrals and repeat business.

You can explore the best trucking GPS apps for truckers to enhance the efficiency of your towing business. Streamlining logistics and navigation will eventually help improve operations and revenue.

So, why not try us out for a 7 days free trial ? You will have full access to our features, which you can use in your towing business. Check to see if it helps you save money and time.

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Frequently Asked Questions

Although having past towing expertise might be advantageous, it’s not necessarily required to start a towing business. Many successful business owners have learned the necessary skills via training, mentoring, or on-the-job training despite having no prior experience.

A flatbed truck is a large truck with a flat body that lacks sides and a roof that surrounds the bed. Typically, these trucks transport large loads that can withstand inclement weather or rough roads without damage. Their bed design is ideal for loads too large for an enclosed-body truck.

A tow truck driver earns between $29,000 and $50,000 per year, with a median wage of $38,555. There are strict salary regulations, so make sure they qualify because misclassifying someone as a salary can be costly.

Towing professionals offer a wide range of towing services, including emergency roadside assistance. If a customer runs out of gas, they can rely on your experts to provide gas services to refill the tank. If they need assistance with deflated tires, your towing providers will replace the tire or re-inflate it, depending on the situation.

Starting a towing business requires careful planning and consideration of essential regulations. These include investing in towing equipment, acquiring the required licenses and permits, and obtaining sufficient insurance coverage. Additionally, having a dedicated storage facility, having clear pricing structures, and hiring trained towing operators are also equally crucial.

Physical damage refers to a group of insurance policies that protect your vehicle. This term encompasses collision insurance as well as the option of purchasing full insurance or the more limited fire and theft coverage of Combined Additional Coverage (CAC) insurance.

To grow a towing business effectively, consider strategies like diversifying services, spending money on marketing, and emphasizing top-notch customer service. Additionally, staying updated on industry trends, maintaining the fleet well, and fostering positive relationships with insurance companies can also contribute to sustained growth.

Starting a towing business is doable, but it will take some grit and dedication on your part to make it successful. Don’t be afraid to devote extra time to developing your business plan. It will help you succeed and secure startup funding, especially when purchasing your tow trucks.

You’ll increase your tow truck business’s chances of success if you follow these steps, secure the necessary startup funding, and have a passion for serving your customers.

Alongside, you require quick route options that streamline your towing business, and Upper Route Planner is the best option to save time and increase productivity for your operations.

To experience the transformation, sign up for a free 7 days trial .

Rakesh Patel, author of two defining books on reverse geotagging, is a trusted authority in routing and logistics. His innovative solutions at Upper Route Planner have simplified logistics for businesses across the board. A thought leader in the field, Rakesh's insights are shaping the future of modern-day logistics, making him your go-to expert for all things route optimization. Read more.

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Tow Truck Company Business Plan Sample

Published Oct.02, 2018

Updated Apr.24, 2024

By: Jakub Babkins

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Table of Content

Do you want to start towing business?

Do you want to start a towing business? Well, this business has so wide scope and opportunities, that you need to plan wisely before initiating it. Basically, a towing business is based on removing the impaired or inoperable, or illegally parked vehicles from the road.

Sometimes, special types of tow trucks are also used to remove the equipment and illegally kept cargos from the road. The towing business for roadside assistance is often needed as during the traffic hours, undesired vehicles or property on the road can cause inconvenience and even accidents on the roads.

So, if you are looking for how to start a tow truck business , you must decide first whether you want to buy and run a tow truck by yourself, opening a franchise or want to organize a number of trucks to start your own business. After taking the decision, you have to devise a detailed business plan covering all the details. In case, you need assistance on how to start your own roadside assistance business , you can take help from this sample business plan for a tow truck business startup named, ‘Texas Towing’.

Executive Summary

2.1 the business.

Texas Towing Company will be located at a 10-minute drive from SeaWorld, San Antonio, a rich colonial city in Texas. Texas Towing will be, a registered and licensed company owned by Michael Finney, with towing trucks operating in the whole city. All the trucks will be kept in the best condition for working on urgent basis, and all the drivers will be well-trained to resolve common technical issues before provided with a CDL license. Texas Towing business will be based on moving emergency, impounded, inoperable or improperly parked vehicles from the roads throughout the city, timely and efficiently.

2.2 Management

If you are going to start a roadside assistance business , you will all be dependent upon the work efficiency of your drivers. So, the management is the core concept, upon which your whole towing service depends. Michael has been associated with the automobile industry for more than 5 years, after doing a pervasive research on how to start a towing business , he has decided to manage the business by himself by purchasing trucks and employing drivers.

2.3 Customers

Before thinking about how to start a towing company , you should know the category of the people will need to avail your service. Our major customers will be the traffic policemen, road district officers, and the local residents of the city. There can be various phenomena when residents and road users will require our services, for instance, their vehicle can get out of order in the mid road, run out of gas or they may have accidentally locked them up in their own property!

2.4 Target of the Company

Our target is to provide fast and incomparable service to the inhabitants of San Antonio. Our main business targets are summarized in the following column chart.

Company Summary

3.1 company owner.

Michael Finney will be the owner of the Texas Towing. Michael has been working in vehicle-related industry for more than 5 years. His two-year successful experience as a senior manager of a truck transport business and his friendly affiliation with all his employees has made him passionate enough to start his own business.

3.2 Why the Business is being started

Michael has excellent management skills, which he wants to devote to a profitable business. He has studied about many businesses and finally found starting a towing business , the most suitable for him. San Antonio is the seventh most populous city in the United States, that’s why Michael has chosen this as his marketplace, as the need to keep streets and roads clear for the incoming traffic is more in populous areas. Moreover, the larger the audience, the more will be the requirement of a towing service, and the more profit you can generate.

3.3 How the Business will be started

A large building with a wide parking facility will be taken on rent, company’s office will be established in the same building. The business will be licensed and registered by the state government, giving a 24-hour service to its customers. After doing a great research on how to run a successful towing business , Michael has understood the importance of the efficiency and dedication of the staff needed for running the business. Therefore, he has decided to hire and train his staff who will be solely responsible for the success of his startup, one month before the launch. Telephones, record registers, office furniture, computer systems and other inventory will be bought for running the business. The startup requirements are as follows:

The detailed startup requirements and expenses are given in the table below.

Services for customers

Your services will mark your position in the market, if you want to enhance or grow your business, you must upgrade your services timely according to the market demand.

This sample business plan will help you for starting your own tow truck business, and determining the services you can provide. Texas Towing will provide the following services to its customers.

• Roadside Assistance: Probably you will be worried if your car has run out of gas in the middle of a busy road, or has locked up in such a manner that you are unable to move it. Rest assured if you are in San Antonio, as we will be providing roadside assistance in the whole city 24 hours a day. Our drivers are trained to fix the problem in a very few minutes when it is possible to repair the vehicle on the road. Otherwise, our tow trucks will be helpful in moving your vehicle and saving others from the inconvenience or possibly an accident.
• Long Distance Towing: We have special flatbed tow trucks to carry your vehicles for long distances. Our service is more useful for the traffic maintenance department in case they want to capture improperly parked vehicles.
• Heavy Duty Towing: For loading large-sized trucks, or more than one vehicle at a time such as when we have to remove illegally parked vehicles, our drivers will reach timely and perform their duty.
• Equipment & Cargo Hauling: Our specialized drivers will also lift the heavy equipment and cargo within the city.

Marketing Analysis of Towing Business

What do you think will be required to open up a new tow truck business? Trucks, office, employees, yes of course, but what will you do with all these things if you fail to attract your target customers? So, before you start your new business, you must think about the reason of failure of so many startups. Well, it all depends upon how successfully you market your services. Understanding the marketing trends before making your towing business plan , will help you in developing your strategies. It is really important to consider the market demands and the requirements of your potential customers before finalizing your towing company business plan sample . A preliminary study of your target market will not only help you in writing a productive tow truck business plan but also tell you which program and policy will work and how. There are thousands of tow truck business plans  available on the web, but a better practice is to make solely yours, focusing on your own market area. This tow truck business plan sample  is written for Texas Towing focusing the marketplace of San Antonio. If, you have a different marketplace, then instead of depending upon this sample business plan for towing company , you should hire the services of marketing analyst to do accurate analysis of your market and make a perfect tow truck company business plan  for you.

5.1 Market & Industry Trends

Having an idea of the market trends and tendency before designing your towing business plan template  can assist you in determining your business strategies. The demand of tow truck business is facing a decline in the United States since the past few years as newer vehicles are equipped with modern systems to avoid accidents. Moreover, people usually prefer to help themselves instead of calling a tow truck company. A pre-knowledge about the reasons that caused decline in people’s interest in taking help from tow truck businesses will help you in running yours. After pointing them out you can amend those prior practices to ensure that you are doing well. According to IBISWorld, there are about 46 thousand towing businesses in the United States generating a revenue of $7 billion annually. The business is the cause of employment for more than 96 thousand people. The statistics are not really bad, but apart from them, you must focus on increasing the customer’s trust in you, if you want your startup to succeed.

5.2 Marketing Segmentation

The success or failure of a startup depends upon how accurately you know your target customers. Marketing segmentation must be included in your tow truck business plan sample, covering the details that how will you gain and maintain more and more customers inside and outside your target groups. Considering the importance of marketing analysis, Michael has hired the services of a marketing expert to identify his target customers and devising efficient sales strategy. You can take help by downloading this towing business plan pdf, we are providing towing company business plan sample  free of cost for everyone who want to start this business. The detailed marketing segmentation of our target audience is as follows:

5.2.1 Local Residents

This group comprises of the residents or tourists who live in San Antonio. These people will surely need to come on the roads, their vehicle can damage, can run out of gas, the engine may seize, or may accidentally locked up in such a way that even the owner become unable to move his/her vehicle. These all situations seem worse when you imagine that you are in the middle of a busy road. Here this group of our target customers will need our service to either get the issue resolved by our technically skilled driver or by moving the vehicle to some other place or workshop.

5.2.2 Police & Road Maintenance Department

In big cities, and especially populous cities, there are many instances when people park their cars improperly or in prohibited places. Same is the case with cargo and equipment which shopkeepers or retail salesmen install on the road. In all these cases the police department needs our services to move or seize those equipment and vehicles. We’ll be providing discount to the police department so that they will use only our services whenever they need a tow truck.

5.2.3 Accident Responders

In the rush times, the rate of accidents and collisions increase in big cities. Whenever an accident occurs, there is a need of towing services to remove the damaged vehicle from the place to avoid inconvenience for incomers ensuring smooth flow of the traffic. We’ll also provide discount to this category, to remove the hesitation of people to acquire our services. The detailed market analysis of our potential customers is given in the following table:

5.3 Packages Pricing

We have decided to keep the price of our services low initially, as it is necessary to gain people’s trust for the business. We have different discount packages for all our customers in the first three months, and for accident responders, and road maintenance department throughout our servicing period. Due to our less prices, people will surely try our services at least for once, after the first contact we believe, that they will blindly trust our services for the rest of their lives.

5.4 Target of the Company

Our main business targets to be achieved over the course of next three years are as follows:

• To become the most renowned and most successful towing company in the whole San Antonio, by providing high-quality services
• To achieve the net profit margin of $10k per month by the end of the first year, $15k per month by the end of the second year, and $25k per month by the end of the third year
• To balance the initial cost of the startup with earned profits by the end of the first year

After identifying the groups of people, whom you need to attract, the next step is to advertise your services and come up with the incomparable competitive edges, so that more and more people avail your services whenever they need a tow truck. Before you think about how to start your own tow truck business , you must think that what will you be providing to the people that others are not, and why would they prefer you over all your competitors. In case, you are new to this business and need assistance while making an appropriate sales strategy, you can take help from this sample business plan written for how to start a roadside assistance company .

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Very Efficient Service! Knowledgeable team! Helped me to get the positive result from the concerned entity Very happy with the outcome; Alex and his team are highly efficient,committed professionals with a diverse bank of knowledge.

6.1 Competitive Analysis

Our biggest competitive advantage is our fast and quick service. On a call, our all-time ready and equipped tow truck will reach at the location in the nick of time and fix the problem. Our next biggest competitive advantage is that our truck drivers are specialized and trained to fix common vehicle issues, like if your car has stopped in the half-way, the first attempt of our drivers will be to fix the problem instantly, and if the issue can’t be resolved at the moment, then your vehicle will be taken away in a very careful and quick manner. Lastly, we are in a location where we can serve a lot of people as well as the road maintenance department. San Antonio is the second most populous city in Texas and the seventh most populous city in the whole United States, and for Michael’s, a larger population means enormous business opportunities!

6.2 Sales Strategy

If you are looking for how to start your own towing business  and how to develop an effective sales strategy, you can take help from the following brilliant ideas, our experts have presented to advertise our services,

• We will advertise our company on social media and by setting up a company webpage by which our customers can contact us
• We will offer 20% discount to the accident responders to remove damaged cars
• We will initially offer 20% discount on all services for first three months
• We will offer 10% discount to the departmental police on our servicing

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel Plan

Personnel plan is the most important part of a tow truck business plan sample, as this business will be solely dependent upon the skill of the drivers. If you are looking for how to start a roadside assistance company , put your major focus to the staff you hire. The staff required for a tow truck business startup and an estimate of their salaries is given here to help you in evaluating your startup costs and determining how to run a tow truck business  successfully.

7.1 Company Staff

Michael will act as the General Manager of the company and will initially hire the following people:

• 16 Tow Truck Drivers
• 2 Accountants for maintaining financial and other records
• 2 Sales Executives responsible for marketing and discovering new ventures
• 3 Technicians for maintaining trucks and resolving technical issues of trucks
• 1 IT Expert for managing the company’s official website and social media pages
• 1 Customer Representative for interacting with customers
• 2 Telephone Operators for receiving calls and orders

To ensure the best quality service, all employees will be selected through vigorous testing and will be trained for a month before starting their jobs. Especially the truck drivers will be trained to resolve common technical issues of vehicles.

7.2 Average Salary of Employees

Financial Plan

The last but the most important step you have to take if you are initiating a business, is to develop a precise and detailed business plan covering all the details of how you will be able to balance the startup costs, the salaries of your employees, and the expense of your trucks and parking area with your   tow truck business income . A comprehensive and effective financial plan is the one which contain the planning of how the company will achieve its goals and financial targets. So, before starting a tow truck business plan sample , you must formulate a detailed financial plan estimating your expenses and investment group business plan on the startup and its marketing, and roughly calculating the tow truck business profit that can be earned after meeting all the expenses. It is good to hire a financial expert to make an accurate financial plan for you, especially if you aim at widening your business scales. However, if you are starting at a small scale, then you can make your financial plan by yourself taking help from the sample business plans available on how to start a roadside assistance business . The details of sample financial plan for Texas Towing company are given here for your help:

8.1 Important Assumptions

The financial projections of the company are forecasted on the basis of following assumptions. These assumptions are conservative and can show deviation but to a limited level such that the major financial strategy of the company will not be affected.

8.2 Brake-even Analysis

8.3 Projected Profit and Loss

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 Business Ratios

Download Tow Truck Business Plan Sample in pdf

OGS capital professional writers specialized also in themes such as business plan for taxi service , comprehensive business plan for dump truck , transport business plan , transportation business model , truck driving business idea , logistics company business strategy and many others.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

One thought on “ Tow Truck Company Business Plan Sample ”

thanks for sharing lot of points

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Towing Business

Back to All Business Ideas

How to Start a Successful Towing Business in 13 Steps

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on October 14, 2021 Updated on August 27, 2024

Investment range

$18,000 - $66,000

Revenue potential

$60,000 - $89,000 p.a.

Time to build

0 - 3 months

Profit potential

$40,000 - $62,000 p.a.

Industry trend

When starting your towing business, keep these essential aspects in mind:

• Towing permits — Apply for towing permits as required by your state or local government. Requirements vary by location and may include background checks and specific fees.
• Commercial driver’s license (CDL) — Ensure all drivers have the necessary commercial driver’s licenses (CDL) to operate towing vehicles.
• Towing trucks — Invest in high-quality towing trucks suitable for the services you plan to offer, such as flatbed trucks, wheel-lift trucks, and heavy-duty wreckers.
• Equipment — Ensure you have all necessary equipment, including winches, chains, tow bars, safety gear, and communication devices. Regularly inspect and maintain your vehicles and equipment to ensure safety and reliability.
• Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately using ZenBusiness LLC formation service or hire one of the best LLC services on the market.
• Legal business aspects — Register for taxes, open a business bank account, and get an EIN .
• Choosing a location — Select a location with adequate space for parking your tow trucks and storing towed vehicles. Consider proximity to high-traffic areas and potential clients, such as auto repair shops, dealerships, and busy highways.
• Hire staff — Hire experienced and reliable drivers, dispatchers, and administrative staff.
• Partnerships — Build relationships with local businesses, auto repair shops, dealerships, and law enforcement agencies to generate referrals and collaborate on promotional activities.

Interactive Checklist at your fingertips—begin your towing business today!

You May Also Wonder:

What types of services can a towing business offer?

A towing business can offer emergency roadside assistance, vehicle recovery, long-distance towing, heavy-duty towing, motorcycle towing, and vehicle transportation services. Additional services may include battery jump-starts, tire changes, lockout assistance, and fuel delivery.

Is a tow truck business profitable?

The tow truck business is indeed profitable. You can expect to make around $40,000 in annual net profit as a solopreneur. However, starting a towing business will require a sizable investment since buying a tow truck could be extremely expensive. Given this, the return on investment may be low as compared to alternate business options that you may consider before pursuing this business venture.

Is buying a tow truck a good investment?

Buying a tow truck is regarded as a safe investment because it has great resale value. If your towing business is underperforming and you have decided to shut your operations, your business will undergo liquidation. The tow trucks will be sold in the second-hand truck market and a major chunk of investment will be easily recovered if the trucks are in good condition.

How much is insurance for a tow truck?

The insurance premium may range between 2% to 3%, but it will vary greatly depending upon your truck value, condition, location and insurance company. You may expect to incur $100 to $500 per month on tow truck insurance.

Where do tow truck drivers get paid the most?

Based on  job listings on Indeed , the top five states where truck drivers get paid the most are Pennsylvania (PA), Illinois (IL), Nevada (NV), Texas (TX), and California (CA).

Step 1: Decide if the Business Is Right for You

Starting a towing business requires time and effort. You need to fully understand what is involved before you decide if it’s right for you. 

Pros and cons

• Fast and easy to start; no expertise required
• Flexibility — can start from home
• Cars break down, so demand is constant
• Trucks are expensive, which may hinder growth
• Need to be available around the clock

Towing industry trends

As the pandemic recedes, people are sure to be moving about more, which means more vehicle breakdowns and greater demand for towing. All of this means there is a great deal of opportunity for the entrepreneur. 

Industry size and growth

• Industry size and past growth – The US automobile towing industry is worth $11 billion in 2022, after growing more than 5% annually over the past five years.(( https://www.ibisworld.com/industry-statistics/market-size/automobile-towing-united-states/ ))  
• Growth forecast – The global towing market is projected to grow 4% annually through 2024.(( https://www.researchandmarkets.com/reports/4835374/global-towing-vehicle-market-forecasts-from )) 
• Number of businesses – There are 47,000 towing businesses in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/automobile-towing-united-states/ )) 
• Number of people employed – The industry employs nearly 114,000 people.(( https://www.ibisworld.com/industry-statistics/employment/automobile-towing-united-states/ ))

Trends and challenges

Trends in the towing industry include:

• Higher probability of car accidents as more people return to onsite work
• Advanced safety features in new cars

Challenges in the towing industry include:

• Risk of accidents and injuries
• Bad weather

What kind of people work as tow truck driver?

• Gender – 96% of all tow truck drivers employed in the US are male, while 4% are female.(( https://www.zippia.com/tow-truck-driver-jobs/demographics/#gender-statistics ))
• Average level of education – The most common degree for tow truck drivers is high school diploma with 57% graduates(( https://www.zippia.com/tow-truck-driver-jobs/education/ ))
• Average age – The average age of a tow truck driver is 48 years old.(( https://www.zippia.com/tow-truck-driver-jobs/demographics/#age-statistics ))

How much does it cost to start a towing business?

Starting a towing business costs between $18,000 and $66,000, averaging about $42,000.

The largest is of course the tow truck itself. A new tow truck will run you about $100,000, which means the down payment could be $20,000. But you might be able to find a used truck for $25,000, and pay half that amount upfront to take the keys. You might want to pay a visit to the Truck Paper . 

While it may not be absolutely necessary, getting your commercial driver’s license (CDL) is a good idea when starting a towing business, as you might at some point cross the weight threshold (26,000 pounds). Check with your state for details. You will also need to gain Light Duty certification from the Towing and Recovery Association of America, which requires at least 90 days of tow truck experience. 

How much can you earn from a towing business?

The average cost per tow service is about $95, and after your expenses, of fuel, insurance, and marketing, you should have a profit margin of 70%. 

In your first your or two working as a solopreneur, you might respond to two service calls per day for six days a week. This would give you about $60,000 in annual revenue and a profit of more than $40,000. 

As your business gains recognition, you can expect to get three service calls per day, giving you annual revenue of $89,000 and a profit of nearly $62,000. At that point, you could save up, add another truck or two to your fleet and start making serious money. 

What barriers to entry are there?

The biggest barrier to entry is financing, particularly the buying of a truck, along with maintenance. You will also pay a high insurance premium every year to protect your assets from accidental damage and theft. 

Another barrier to entry is the stringent regulations, as you may need a permit from the state as well as your CDL and towing certification. This will require significant training and experience. 

The competition is also fierce in the towing industry as all businesses offer the same services and most will have more experience than your startup.

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How to Start a Hot Shot Trucking Business in 13 Steps

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How to Start a Successful Trucking Business in 13 Steps

Step 2: hone your idea.

Now that you know what’s involved in starting a towing business, it’s a good idea to hone your concept in preparation to enter a competitive market.

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research towing businesses in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a towing service that offers a mobile app. 

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as partnering with taxi and limousine services.

This could jumpstart your word-of-mouth marketing and attract clients right away.

What? Determine your services

Vehicles break down at unexpected times. It may happen during your road trip or commute to work as well as in the parking lot or in your garage. You may also get involved in a road accident. You can’t do anything except call a towing company to come to your aid.

Towing companies use different types of trucks depending upon what and how they need to tow. The following are four common types of trucks and their common uses:

• Flatbed Tow Trucks — These trucks are very common in the tow industry. They carry a long, flat, empty, and hydraulic bed on their back. A ramp is used to move up the vehicle on the bed.
• Boom Trucks — Unlike conventional but unsafe hook and chain tows, boom trucks use slings or belt lifts to tow a car which is much safer. They have a telescopic crane fixed on a commercial truck chassis which is called a “boom”. Boom trucks use outriggers to stabilize the body while the crane lifts the vehicle.
• Integrated Tow Truck — These trucks are designed for heavy-duty towing as they are self-loaders that are capable and stable. These are often used to tow buses. They are also used for repossessions.
• Wheel-Lift Tow Truck — These trucks are equipped with a metal yoke which is used to hoist the rear or front wheels of the towed car. They also use a hydraulic system to ensure safe carriage of towed vehicles on a bumpy surface.

While the main service of a tow company is to move a vehicle from point A to point B, some businesses offer roadside assistance to maximize their revenue. These emergency roadside services include:

• Dead batteries
• Empty gas tanks
• Other quick repairs

How much should you charge for towing services?

Tow truck service charges range between $2 and $4 per mile, depending upon your location. The average cost per tow is about $100, but can vary widely. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

You will mainly get calls from people who get into road emergencies and need to tow their vehicle to the nearest auto repair shop. You should also expect to get calls from the local police department, car clubs, service stations, auto auctions, and property owners to tow and move a vehicle. You could reach out to all these organizations and let them know of your services, and you could also contact hotels and other tourist accommodations, and look for related businesses on LinkedIn and Google Maps. 

Where? Choose your business premises

In the early stage of business development, you may want to operate your business from home to help you keep your overhead expenses in check. But as your business grows and operations intensify, you will hire workers for various job roles and may need to rent out a shop or office. 

You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices . When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Towing Company Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “towing” or “car towing”, boosts SEO
• Name should allow for expansion, for ex: “Rapid Response Towing Services” over “Junk Car Removal Solutions”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

Powered by GoDaddy.com

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Tow Truck Business Plan

Here are the key components of a business plan:

• Executive Summary: Summarize your tow truck business’s goals, highlighting its services in vehicle towing, roadside assistance, and recovery operations.
• Business Overview: Describe your business’s provision of tow truck services, including emergency towing, vehicle recovery, and roadside assistance like tire changes or jump starts.
• Product and Services: Detail the range of services offered, from light-duty towing for cars to heavy-duty towing for larger vehicles, and additional services like lockout assistance.
• Market Analysis: Assess the demand for towing services in your area, considering factors like traffic volume, accident rates, and partnerships with local businesses or government agencies.
• Competitive Analysis: Compare your business to other local towing companies, focusing on your advantages such as response time, pricing, or specialized equipment.
• Sales and Marketing: Outline your strategy for attracting clients, which might include online marketing, agreements with auto repair shops, or contracts with motor clubs.
• Management Team: Highlight the experience and qualifications of your team, especially in areas like automotive services, business management, and customer relations.
• Operations Plan: Describe the operational process, including dispatching, towing operations, vehicle maintenance, and customer service protocols.
• Financial Plan: Provide an overview of financial aspects, covering startup costs, pricing strategy, and revenue projections.
• Appendix: Include supplementary documents such as business licenses, insurance policies, or agreements with local businesses to support your business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to towing. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your towing business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund Your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans : This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans : The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants : A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Venture capital : Venture capital investors take an ownership stake in exchange for funds, so keep in mind that you’d be sacrificing some control over your business. This is generally only available for businesses with high growth potential.
• Friends and Family : Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding : Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal : Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a towing business. You might also try crowdfunding if you have an innovative concept. 

Step 8: Apply for Licenses/Permits

To run a tow truck business, you need to comply with a number of local, state, and federal regulations. Below are some of the licenses and permits that you’ll need to operate your towing business:

• You may need to get a permit from the local municipality, state, and even from the highway department. Check with the relevant authorities to find out what permits you need to run a towing business.
• The truck driver will most likely need to obtain a Class B driving license , giving legal permission to drive a vehicle weighing 26,000 pounds or heavier or tow another vehicle that weighs 10,000 pounds or less.
• Private property permit will be needed if you are towing an illegally parked vehicle without the owner’s consent.
• Indictment management permit will be needed to tow a vehicle without its owner’s consent at the request of law enforcement authorities.
• Consent to tow permit will be needed to tow a vehicle with the consent of its owner.
• Oversized vehicle permit will be needed if you occasionally tow a vehicle exceeding the permitted weight.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your towing business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.  

You may want to consider using AutoRepair Cloud , TowManager , and MedinyX to easily communicate with customers, manage and keep track of inventory, allow customers to track the repair process, send quotes and invoices to customers, and more. 

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

You can implement an online booking system on your website, making it easy for customers to request towing services directly from your site.

Your clients are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google.

Here are different marketing strategies to help you attract local customers and grow your brand:

• Local SEO Optimization : Ensure your website is optimized for local SEO by including relevant keywords (e.g., “Towing services in [Your City]”) in your content, meta tags, and headings.
• Google My Business : Claim and optimize your Google My Business listing with accurate business information, high-quality photos, and customer reviews to improve local search visibility.
• Local Directory Listings : Get your towing business listed in local online directories like Yelp, Yellow Pages, and TripAdvisor to increase your online presence and reach local customers.
• Social Media Presence : Create and regularly update social media profiles on platforms like Facebook, Instagram, and Twitter to engage with your local community and share towing tips, updates, and promotions.
• Content Marketing : Start a blog on your website to share informative articles about safe towing practices, car maintenance tips, and local news related to your industry to establish your expertise and build trust with potential customers.
• Online Advertising : Run targeted online ads on platforms like Google Ads and Facebook Ads, focusing on local keywords and demographics to reach potential customers in your service area.
• Local Partnerships : Collaborate with local auto repair shops, insurance agencies, and car dealerships to establish referral partnerships and gain access to their customer base.
• Branding and Vehicle Signage : Invest in professional branding and signage on your towing vehicles to increase visibility while on the road and create a memorable brand image.
• Community Involvement : Get involved in local community events, sponsorships, or charity drives to show your commitment to the community and increase brand awareness.
• Online Booking System : Implement an online booking system on your website, making it easy for customers to request towing services directly from your site.
• Email Marketing : Collect email addresses from customers and use email marketing to send promotions, updates, and safety tips to keep your brand top of mind.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your towing service meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your towing business could be: 

• Fast towing, 24/7
• We offer towing and much more! 
• Full-service towing for your luxury car 

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a towing business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working as a towing truck operator for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in towing. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business. 

Step 12: Build Your Team

You may not need to hire any employees if you are starting out small from a home-based office. But as your business grows, you will likely need to recruit full-time employees for various job roles, such as:

• Marketing Lead
• General Manager

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Towing Business – Start Making Money!

Roadside assistance service provider Agero says almost 70 million vehicles break down in the US each year, costing the economy more than $40 billion and posing road hazards that sometimes lead to fatal accidents. By starting a towing business, you would be clearing the roads of these traffic hazards and helping your community while earning good money at the same time. 

You’ll have to be mindful of the risks and make sure you have safety systems in place. Now that you’ve done all your business homework, it’s time to hit the road to entrepreneurship and start your towing business! 

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Towing Company Name
• Create a Tow Truck Business Plan
• Register your Business
• Register for Taxes
• Fund Your Business
• Apply for Licenses/Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Towing Business - Start Making Money!

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BUSINESS STRATEGIES

How to create a tow truck business plan

• Nirit Braun
• Sep 12, 2023

When starting a business in the towing industry, crafting a well-structured business plan is akin to having a reliable GPS system—it's indispensable. A tow truck business plan acts as a guiding compass, outlining the goals, objectives, strategies and financial projections for your tow truck company. Keep reading to learn the ins and outs of mapping out your business plan.

Looking to promote your business online by building a website ? Test drive Wix's website builder .

Why create a tow truck business plan? Some benefits to consider

When you're in the tow truck business, a well-structured business plan packs a punch, offering a perks like:

Raising capital with confidence : Your business plan becomes your persuasive ally when approaching investors or lenders. It serves as a detailed pitch, laying out your business's value proposition, target market, competitive analysis and financial projections. This comprehensive information helps potential backers assess the potential return on investment, increasing your chances of raising money for your business .

Strategic resource allocation: Your plan prompts you to rigorously assess the resources, supplies and equipment essential for the effective launch of your tow truck business. It assists in determining the appropriate number and types of tow trucks, as well as the tools and safety equipment required. By identifying these needs, your plan ensures that your business begins with the right infrastructure to deliver reliable services.

Building a skilled team: Your plan outlines key roles—such as drivers, dispatchers, mechanics and administrative staff—specifying the qualifications and expertise needed for each position. This clarity streamlines the recruitment process and ensures that your business assembles a skilled team ready to provide top-quality service.

Preparing for challenges: In the tow truck business, surprises are inevitable. Your business plan helps you spot potential curveballs like vehicle breakdowns, accidents or shifts in market demand. You'll be prepared with contingency plans, bolstering your business's resilience.

Competitive edge: Your plan dives deep into the tow truck market, revealing customer needs and identifying competitors. Armed with this knowledge, you can find ways to stand out, whether through unique services or strategic pricing, giving your business a competitive edge.

Financial clarity: Financial projections within your business plan provide a clear picture of anticipated revenue, expenses and profitability. This information helps you evaluate the financial feasibility of your business, make informed decisions and set achievable growth goals.

How to write a tow truck business plan in 6 steps

In the following sections, we’ll guide you through six essential steps to craft an effective tow truck business plan that sets you on the path to starting your tow truck business .

Executive summary

Company and domain names

Market analysis and research

Operations plan

Marketing and advertising plan

Financial plan

01. Executive summary

The executive summary is a concise overview of your tow truck business plan, providing a snapshot of the key elements and goals of your business. It's usually the first section of the business plan and serves as a compelling introduction to capture the reader's attention. For a tow truck business, your executive summary should succinctly outline the purpose of your business, your unique value proposition, target market and your financial projections. It should also convey your business's mission and goals in a compelling manner.

02. Company and domain names

Picking the right business name is crucial for building brand awareness and trust within the towing industry. A memorable and descriptive name can resonate with customers and convey your business's essence. Consider utilizing business name generators to brainstorm creative options that align with your services and values.

Be inspired: Trucking business names

When choosing a domain name for your website, aim for simplicity and relevance. The domain name should ideally match or closely relate to your company name. Conduct thorough checks to ensure the domain name is available and doesn't infringe on trademarks. A clear, easy-to-remember domain name enhances your online presence and makes it easier for potential customers to find you.

Remember to register your business once you've landed on the right company name and legal structure.

03. Market analysis and research

The market analysis section of your tow truck business plan delves into the competitive landscape of the towing industry. Conduct thorough research to understand market trends, customer preferences, and your competitors' strengths and weaknesses. Identify your target market and analyze their needs, ensuring that your services align with their expectations.

Effective market research allows you to develop a strategic business approach that highlights your competitive advantages. This insight helps you tailor your services, pricing, and marketing strategies to stand out in a crowded market.

04. Operations plan

The operations plan outlines the practical aspects of running your tow truck business. It includes details about your business location, facilities, equipment and staffing requirements. Specify the number and types of tow trucks you'll need, along with any specialized equipment for efficient service delivery.

Determine the optimal location for your business, considering factors such as proximity to high-traffic areas and accessibility. Outline staffing needs (including drivers, dispatchers, mechanics and administrative staff), highlighting the qualifications and roles required for each position.

05. Marketing and advertising plan

The marketing and advertising plan outlines the strategies and campaigns you'll employ to promote your tow truck business. Focus on a mix of online and offline trucking marketing efforts to reach your target audience effectively.

Online strategies may include making a business website , utilizing social media platforms for engagement and employing search engine optimization (SEO) techniques to increase your online visibility. Offline efforts could involve partnerships with local auto repair shops, distributing flyers and participating in community events.

06. Financial plan

The financial plan is a crucial component of your tow truck business plan. It details your startup costs, projected income, expenses and profitability timelines. Determine your initial funding sources, whether through personal savings, loans or investments. Include estimates for business registration ( starting an LLC for example), vehicle acquisition, equipment, employee salaries, maintenance and marketing expenses.

Develop realistic financial projections for the first few years of operation, factoring in things like seasonal fluctuations, competition and market growth. Your financial plan demonstrates your understanding of the financial aspects of your business and helps potential investors assess the viability of your venture.

Example of a tow truck business plan

Here’s a draft of a business plan template for hypothetical tow truck business. Keep in mind that this is a simplified template and you can modify and expand it according to your specific needs and ideas.

TowPro Towing Solutions business plan

Part 1: executive summary

TowPro Towing Solutions is dedicated to offering top-tier towing services to the urban and suburban regions of Crescent City. With a focus on prompt, professional and reliable assistance, we aim to redefine the towing experience for stranded motorists. Our fleet of advanced tow trucks, operated by experienced professionals, will set new standards in the industry.

At TowPro, our core values center around customer satisfaction, safety and efficiency. By providing unparalleled service, we strive to become the preferred choice for towing needs in Crescent City and surrounding areas. Our comprehensive business plan outlines our strategy for success and sustainable growth.

Part 2: company and domain names

We've chosen the name "TowPro Towing Solutions" to reflect our expertise and commitment to professionalism. Our domain name, www.TowProSolutions.com, complements our brand identity and ensures easy online access for our customers.

Part 3: marketing analysis and research

Our extensive market research has highlighted a consistent demand for dependable towing services in Crescent City due to its busy roadways and high incidence of breakdowns. TowPro aims to address this demand by offering specialized towing solutions that cater to various vehicle types and situations.

Through competitive analysis, we've identified a need for exceptional customer service and transparency within the towing industry. By emphasizing these aspects, TowPro seeks to differentiate itself from competitors and build lasting relationships with clients.

Part 4: operations plan

TowPro's operational hub will be strategically located to cover Crescent City and neighboring areas efficiently. Our fleet will comprise a variety of tow trucks, including flatbeds and wheel-lifts, to cater to different vehicle sizes and towing requirements. A team of well-trained drivers, dispatchers, mechanics and administrative staff will ensure smooth operations around the clock.

Part 5: marketing and advertising plan

Our marketing strategy combines online and offline tactics to build brand awareness and reach our target audience effectively. A user-friendly website will showcase our services, rates and contact information, making it easy for customers to engage with us. Social media platforms will be leveraged for engagement, customer interaction and advertising campaigns.

We'll also collaborate with local auto repair shops and insurance agencies to establish referral partnerships. Additionally, community engagement through sponsorships of local events and participation in safety workshops will contribute to our reputation as a reliable towing service.

Part 6: financial plan

The financial plan outlines the initial investment required to launch TowPro Towing Solutions, covering vehicle procurement, equipment, staffing and marketing expenses. We anticipate an initial funding of $200,000 through a mix of personal savings and a small business loan.

Based on thorough financial projections, we expect to achieve profitability within the first two years. Our revenue forecast considers factors such as service demand, competition and market trends—while our expense estimates encompass all operational costs, allowing us to make informed decisions about pricing and resource allocation.

TowPro Towing Solutions is poised to make a significant impact in the towing industry by providing exceptional services in Crescent City. With a comprehensive business plan in place, we are confident in our ability to offer timely assistance, build strong customer relationships and establish TowPro as a trusted and dependable towing partner.

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How to Start a $1M/Month Tow Truck Business

Did you know that 69 million vehicles need to be towed each year?

That’s nearly 190K people who call up a towing business every day.

We talked to Vanice and Vincent Serrano, founders of ASAP Towing, to find out how to start a tow truck business that makes more than $10M each year. They provide insights on how towing services make money, how to hire employees, how to become a tow truck driver, and more.

Tow Truck Business Case Study: ASAP Towing

Learn about the towing industry, step #1. identify your target market, step #2. research local regulations, step #3. create a tow truck business plan, step #4. consider a startup loan, step #5. register your business, step #6. open a business bank account, step #7. get tow truck business insurance, step #8. get the required licenses and permits, step #9. buy equipment and tools, step #10. develop and implement a marketing strategy, step #11. provide great customer service, frequently asked questions, hiring tips, top towing influencers.

Vincent grew up working in auto repair shops owned by his dad, but he wanted to have a business to call his own. They already owned a tow truck and had land, so they decided to start a new tow truck company.

The business venture was mostly Vanice and one employee during its first year. About 18 months in, Vincent had to quit his day job and work at ASAP full time because it was making $250K per year.

The local tow truck company offers towing services for breakdowns, lockouts, accidents, impounds, and more. Check out our interview with Vincent and Vanice below.

Before we discuss how to start a towing company, it’s important to learn all about towing and how the industry operates. We’ll discuss:

• The cost to start a tow truck business
• The amount towing vehicles makes
• Industry profit margins
• Major players
• Industry outlook
• Legal requirements
• How to get a tow truck driver license

How much does it cost to start a tow truck business?

Vincent told us starting your own towing company requires around $10,000 to get a truck, licenses, and towing equipment. We’ll discuss individual costs more in other sections.

How much do tow truck drivers make?

As of January 26, 2024, the average salary for a U.S.-based tow truck driver is $44,198, with a range of $38,820–$50,211, and an average hourly rate of $18.54.

You’ll normally want to pay yourself this salary in addition to some profits from the business when you are an owner-operator.

Your location, experience, employer, skills, and education may impact the pay for tow truck driver jobs. Some drivers will also get bonuses and tips.

According to Indeed , the tow truck driver salary is highest in the following cities:

• Milwaukee, WI
• Sacramento, CA
• Los Angeles, CA
• Las Vegas, NV

How much profit can a towing business make?

Transportation businesses normally make 30.59% gross margins and 5.91% net margins. Some people who own towing companies make up to 33.65% profit, which means that the Serranos are likely bringing in somewhere between $700K and $4 million in profits.

Who are the major players in the towing business?

Because many tow truck businesses are privately held companies, it is difficult to find accurate revenue numbers for the largest towing businesses. Along with ASAP Towing, some other large tow truck businesses include:

• United Road Towing : Dun & Bradstreet (D&B) estimates United Road Towing’s annual revenue to be $99M .
• Jamie Davis Towing : ZoomInfo estimates annual revenue is under $5M for this towing company.
• Certified Towing: Revenue is estimated at $1M , according to D&B .

What is the towing industry’s outlook?

IBIS World values the U.S. towing industry at $12.5B and expects it to grow around 2.9% in 2024. They expect it to continue growing at a faster rate after inflation settles down.

Any industry that exceeds the GDP growth in the U.S. is a great one to enter as a business owner.

What are the requirements for a tow company?

Before starting a tow truck company, you will need various tools, permits, and licenses. Consult your local small business office, the DMV, or a lawyer who specializes in tow truck businesses.

A tow trucking company will normally need:

• Drivers with class B driver’s licenses
• Business structure as a limited liability company (LLC) or corporation
• Comprehensive auto insurance with uninsured motorist insurance and higher limits than the state minimum (no less than $250K, but $1M is better)
• Business insurance
• High physical damage insurance
• An oversized vehicle permit (depending on what you will be towing)
• Indictment management permit (if towing without consent)

How to Get a Tow Truck License

To drive a truck with below a 26,000-pound towing capacity, you only need a regular driver’s license. You’ll need a commercial driver’s license (CDL) for anything bigger.

That means you’ll need to take a CDL course, which takes about a month. Then you’ll need to pass the DMV test.

Next, we’ll look at how to start a tow truck business.

How to Start a Tow Truck Business

Starting a tow truck business requires special considerations because of the nature of dealing with vehicular accidents and repossessions. You’ll want to follow the process below to start a successful towing business:

1. Identify your target market. 2. Research local regulations. 3. Create a business plan. 4. Consider a startup loan. 5. Register your business. 6. Get the required licenses and permits.

7. Buy equipment and tools. 8. Develop a marketing strategy. 9. Get liability insurance. 10. Open a business bank account. 11. Provide excellent customer service.

Keep reading to learn how to start a towing business.

Tow truck companies use multiple business strategies to bring in revenue. An indispensable strategy is identifying your target market. Potential customers include:

• Insurance companies: Companies like AAA and Roadside America need towing and roadside assistance for their customers.
• Government agencies: These entities impound cars and need someone to tow them. Not that there may be minimum truck requirements.
• Banks and lenders: Repossession services work with banks and lenders. Learn more about repo laws on the American Recovery Agency website .
• Motorists: Towing businesses can also work with civilians to tow vehicles when they break down or are otherwise immovable.
• Subcontracting: Many businesses outsource their towing needs.
• Automotive companies: A towing business might also work with car dealerships and auto auctions to deliver cars to dealerships or customers.

Every towing business needs to understand the local, state, and federal laws that the automobile towing industry operates under. Make sure to check the regulations for all levels of government based on the towing services you provide.

A tow truck operator will normally be governed by federal law in two scenarios:

• Maximum towing capacity for different types of trucks
• Interstate commerce laws, which come into play when commercial vehicles cross state lines

States and local governments will often have laws and regulations that govern the tow truck industry, including minimum tow truck insurance and CDL requirements.

You don’t have to write a towing business plan, but it won’t hurt. It will help you keep track of how your towing company is progressing toward its goals. Tow truck business plans should follow a process similar to this:

• Find customers.
• Get your permits and licenses to drive a tow truck.
• Start your company.
• Buy a tow truck.
• Start towing vehicles.
• Follow a marketing plan to take on more work.
• Buy more trucks.

Download our business plan template, then check out our interview with Mike Andes on how to write a business plan below:

Starting a towing business isn’t cheap. With the cost of a flatbed truck, tow truck insurance, commercial auto insurance, and small business insurance, you can expect to spend $10K to start a towing company. Other sites estimate the tow truck business startup cost can range from $62 to $2M .

• Personal funds or assets
• A loan from family or friends
• Funds from a business partner
• Government programs
• Crowdfunding
• Credit cards
• Home equity loans
• Business loans ( Check out our partners .)
• Rollover for business startups (ROBS)

The Small Business Administration (SBA) offers free courses on financing options and funding programs . For info on using personal funds to start a business, check out this article from The Hartford .

Registering a tow truck business will require you to:

• Choose a business name: You’ll want a tow truck business name that is available as a website domain name, social media handle, and registered business name with your secretary of state and the U.S. Patent and Trademark Office. Check domain availability on GoDaddy .
• Create a business structure: You’ll want to get either an LLC or a corporation when starting a tow company. You do not want to get a sole proprietorship because it will expose your personal assets to a lawsuit if you get in a wreck with the tow truck.
• Apply for an EIN: An employer identification number (EIN) is required to file taxes for business entities on the IRS website. It is also used to associate employee payroll taxes with the correct company.
• Acquire a sales tax permit: Most states have a sales tax, and you need to adhere to their requirements. This blog isn’t the place to discuss the permits for all 50 states, but Avalara has a guide on sales tax permits . Check it out.
• Labor law posters: All employers must display workplace posters that signal they’re following labor laws. You can download them from the Department of Justice website . You must also follow all hiring laws.
• Unemployment Insurance (UI): You’ll have to pay about $420 per employee on a federal level plus any state UI. Check the U.S. Chamber of Commerce for more information.

Having an open bank account for your business is crucial to keeping your personal finances and tow truck business finances separate. If you have a limited liability company or a corporation, you’ll also need it to get business loans and personal liability protection.

If you have a business bank account, you can also get a business credit card and potentially commercial truck financing.

You’ll want a variety of insurance policies when you own tow trucks. You’ll want:

• Auto liability insurance: covers the vehicle owner if one of their tow truck drivers gets in a wreck
• Uninsured motorist insurance: covers your flatbed truck and your employee if an uninsured driver hits the vehicle
• Workers compensation insurance: covers the medical fees and lost work if employees get hurt or killed on the job

When you own tow truck company assets, you’ll also want various types of business insurance, like general liability, a business owner’s policy, and commercial property insurance. Try Simply Business to get quotes from many of the best business insurance companies.

As stated, tow trucks may require you to apply for additional permits and licenses. We suggest anyone who wants to tow vehicles reach out to a local business law attorney to verify that they have complied with all laws and regulations.

One of the major business expenses for a successful towing company is the cost of flatbed trucks for hauling wrecked vehicles. Some of the places you can find the different types of tow trucks include:

• A bank repoed tow truck sale
• Auto auctions
• Failing tow truck businesses
• Commercial Truck Trader

You’ll want to focus on marketing when starting a tow truck business. Vincent suggests using the following marketing for tow trucks:

Instagram and Facebook

• Videos platforms

Launch a Website

Creating a website helps people get the information they need about the services you offer, how much they cost, and where your business is located.

Some services you might list on your website include:

• Roadside assistance
• Repossession services
• Impounding and storage
• Vehicle auctions
• Heavy-duty towing services

Tow places should optimize their website for search engines for search engines. For example, adding a Google Map location to their website’s footer can help it show up higher on Google.

Vincent told us he has one company that does his videos, another that does search engine optimization, and a third that does social media. You can find all-encompassing services, as well.

Your business budget should include some expenses for advertising on Google. Vincent told us:

We’re spending a little over $1,000 per month on Google right now.

Vincent told us that he is fairly new to Instagram, but it is starting to provide some returns. He said he has found success on Facebook.

Like many business owners, Vincent is starting to get into video marketing.

When you start a tow truck business, you can create videos about the common types of calls a tow operator gets. You can also explain how to do things like change a battery, replace a tire, and what to do in an accident—but make sure not to give any legal advice.

How much should a towing business spend on marketing?

Established tow truck companies should spend between 2% and 10% of desired revenue on marketing, depending on whether they are marketing their towing business to businesses or consumers. Business-to-consumer companies normally spend more on marketing.

According to entrepreneur Thomas Minieri , new companies should spend up to 20% of their target revenue on marketing to help them grow faster. You will normally want to spend between 15% and 20% of your budget on advertising costs.

Despite the suggestions, many small business owners spend much less on marketing. For instance, both Kenneth and Vanice spend less than 1% of their revenue on marketing.

Tow companies need to provide great customer service. Whether you’re towing for law enforcement, a business, or people in need of repairs, you should try to be compassionate.

Towing companies often provide emergency roadside assistance, but some partner with other businesses to transport vehicles that are (often unintentionally) parked illegally. When someone gets their car towed, remember they may not have known that their car was parked improperly.

Now that you know how to start a tow truck business, let’s look at some frequently asked questions about the industry.

We’ll start with the question on everyone’s mind:

How much do tow trucks cost?

There are a few different types of trucks:

• Flatbed tow truck for sale
• Ramp trucks for sale
• Wrecker truck for sale
• Integrated tow truck for sale

In most cases, expect to spend $25K or more.

How can I start a successful tow truck business with no money?

You have to start somewhere. Kenneth suggested the following solutions:

• Can you finance?
• Can you get a lease on a truck?
• Can you ask friends and family?

He also told us:

I went looking for a loan so I could buy a tow truck and found out that you can’t get a loan to start a business unless you’ve been in business for two years.

I wound up going into it on a lease, rent to own. The truck sold for $50,000. By the time I’m done paying for the truck, it’ll be $106,000.

He went on to say:

The benefit of leasing is you can get into a vehicle with a limited amount of money. The downfall of it is, if you don’t find the right leasing company, you’re gonna be paying them to double whatever the original amount was. So do a little diligence and find out. If they say there’s no puny penalty for prepayment, make sure that the amount is going to be adjusted.

There are more ways to fund a towing company.

Common funding paths include:

• Personal funds or personal assets

The SBA offers free courses on financing options and funding programs . For info on using personal funds to start a business, check out this article from The Hartford .

Running the tow truck company is what you will spend most of your time doing. This includes aspects like hiring employees, helping customers, keeping inventory in stock, accounting, and payroll.

Kenneth had a lot to say about hiring drivers. He said the most important aspects of drivers are:

• Do they have the required licensing?
• Do they stay in communication with the owner?
• Do they have mechanical experience, or are they willing to learn?

Without the required licensing, they won’t be able to earn money. But the other aspects are more important to focus on for the bigger picture. Here’s what he had to say about communication:

[An employee is valuable] when they stay in contact with you and they keep you aware of what’s going on with your vehicle. If they’re having any problems, just tell me what your problem is. And I will give you the answer, ’cause my job is to help you.

He also emphasized the importance of being mechanically inclined:

I’ve hired three people in the last month. I had to fire one quick because I explained to ’em, you know, the truck needs maintenance. I can’t be driving 16 hours a day and work on my truck, your truck, and everybody else’s truck.

It’s just not gonna happen. You have to take care of the truck. So, if you don’t know how to be a car mechanic, that probably is a tough spot to begin with.

I’m even willing to teach you what you need to know. I don’t have a problem with that because we succeed together as a team or we fail as a team.

Find out what other people in the industry are doing:

• Jamie Davis Towing: Check out his YouTube Channel
• Get Hooked: A towing industry Podcast

We’ve covered how to start a tow truck company; now it’s your turn to get the licenses and permits, find some customers, get a truck, and start towing.

If you’ve already started one, what has been the most challenging part of starting an independent towing service?

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My name is David warrick I live in arizona..I like to learn how to operate a tow truck and own one ,this is the job I want to retire from im a 52 now..still twenty years to go. I really want this

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Free Tow Truck Business Plan Template

A successful tow truck business is based on a solid business plan. To help you out, we've designed a business plan template PDF specifically for tow truck business owners. Get your copy today!

How can a tow truck business plan help you?

A solid business plan acts as your strategy guide for building a successful tow truck business.

Whether you're an existing tow truck business or just starting out, a business plan helps you get organised.

Use a business plan to help secure funding for your tow truck business.

Get your free tow truck business plan template:

What is tradify.

Tradify is the best tow truck business management software that runs all your jobs from start to finish.

Bring together all your enquiries, estimates, quotes, jobs, staff, invoices, and more — all in one place, across every device.

Save time and eliminate stress with Tradify!

Tow Truck Business Plan Template [Updated 2024]

Tow Truck Business Plan Template

If you want to start a tow truck business or expand your current tow truck business, you need a business plan.

The following Tow Truck business plan template gives you the key elements to include in a winning Tow Truck business plan.

You can download our Ultimate Business Plan Template (including a full, customizable financial model) to your computer here.

Below are links to each of the key sections of your Tow Truck business plan: I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

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Tow Truck Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

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How to start a towing business.

Towing is a service that will have a consistent demand for the near future. Even though cars are becoming more and more reliable, accidents and breakdowns happen, and drivers need somebody to give them a tow.

In this post, we’re going to cover everything you need to know about starting a tow truck business of your own. We will talk about the variety of towing services you can offer in your business, and the different audiences you can serve. From there, we will cover the eight steps you need to follow to launch a successful tow truck business.

Fire up your truck because we’re pulling out tons of valuable tidbits on how to start a successful towing business.

Here’s What We’ll Cover:

Why Start a Towing Company?

Can i start a towing company with no experience, types of towing businesses, what you need to get started, how to start a successful towing business in 8 steps, tips for growing your towing business.

Launch Your Towing Business

More Resources for Your Towing Company

If you’re looking to start a business that provides a sense of consistency and very little stress or unnecessary excitement, a towing company could be the route for you.

It’s not that driving a tow truck is boring. In fact, truck drivers meet tons of interesting people day in day out that will make it quite enjoyable.

Even though the job likely won’t be stressful for you, the nature of towing is typically helping people through stressful situations. That in itself can be fulfilling.

Let’s take a quick look at some other benefits of starting a towing company.

Benefits of Starting a Towing Company

• It’s consistent: The life of a tow truck driver is relatively predictable with very little drama and rarely any surprises
• You’re helping others: Tow trucks often come in a time of need, so your towing company will truly be helping others in your community
• Anybody can do it: As long as you have great driving skills and a clean record, you could start a towing business
• Lots of specializations: There are several paths your business can take in terms of specialization

Yes, you can start a tow truck business with little to no experience. 

However, you will need to learn the mechanics of your truck, how to drive with a heavy load, and safety practices for roadside assistance. Learning how to properly load vehicles onto your specific tow truck is also a must in order to avoid any damage to your clients’ property.

Just like there are thousands of different types of vehicles on the road, there are many types of towing. Most of these involve transporting vehicles from the spot where they broke down to somewhere that they can be fixed, but others are a bit more unique.

Here are a few of the most popular types of towing businesses.

• Post-accident clean up: Some towing companies are dedicated to picking up wrecked cars after a collision.
• Contractor for roadside assistance company: AAA and other roadside assistance companies bring work to lists of preferred local towing businesses.
• Oversized load : Have you ever seen a house (or half of a house) cruising down the highway? Oversized load-hauling is a kind of towing.
• Vehicle transport: Some tow truck drivers specialize in transporting vehicles long distances.
• Other: Some towing companies transport other things like boats.

Do I Need to Choose a Niche?

Choosing a niche for your business isn’t necessary. However, you’re only going to be able to tow vehicles that your tow truck can carry. 

Certain types of towing will require specialization to some degree. For example, if your business has a truck designed to carry oversized loads, you’re probably not going to be the person showing up to get cars that are broken down on the side of the street.

While it isn’t necessary, specializing in a specific type of towing is good for building your business’ reputation with your target audience.

In order to start a towing business and drive a tow truck yourself, you will need to have a Tow Driver ID. 

The exact rules and regulations vary from state to state, and sometimes even county to county, but in general, you’ll require the following qualifications to apply for a Tow Driver ID in the United States:

• 18 years or older
• Valid driver’s license
• Clean driving record
• No more than three accidents within a year in the past three years
• No DUIs in the past five years
• No more than one DUI in the past 10 years
• Speak English at a conversational level

More specific criteria may apply based on your location. Some jurisdictions may even have exceptions to these rules. The main purpose of these strict guidelines is to make sure that reliable people are operating tow trucks and handling people’s cars.

For a specific example, check out the Tow Driver Requirements for Palm Beach County, Florida. We’d like to reiterate that the rules and requirements vary from jurisdiction to jurisdiction, and this document will simply give you a general idea of what to expect.

Starting a towing business isn’t hard if you’re qualified for a Tow Driver ID and you know how to load and drive with a vehicle in tow.

Here are eight actionable steps for starting a towing business of your own.

1. Create a Business Plan

Every great business starts with a good idea and a solid plan to back it. Writing a business plan may sound like an intimidating task, but it just entails getting your ideas out of your head and onto a piece of paper. 

You’ll want to identify exactly what type of towing services your business will offer and who you’re going to offer them to. Are you going to do all of the towing by yourself or will a team of tow truck drivers work under you? Making these decisions early will help you determine the structure of your tow truck business.

Additionally, you should create an outline of your budget. How much will you invest in a truck and other startup costs for your business? Consider branding , marketing, licensing, insurance, materials and tools.

From there, determine how much you will need to charge for your business to be profitable. Will you offer flat rates or will you bill per hour? How much will you charge for after-hour services?

At this stage, it’s a good idea to hammer out specific processes for your tow truck business. For example, you should document the procedures you’ll follow every time you go out on a call from the moment your phone rings until you deliver the vehicle to its final destination.

Now is also an appropriate time to decide how you’ll approach billing , bookkeeping , payroll and other administrative tasks for your business. Documenting each of these processes will make it easy for you to hire an assistant to help you handle these tasks if you intend to spend most of your time on the road.

2.Take Care of the Legalities

Register your towing business to make it a legal entity. You can register your tow truck business as a limited liability company (LLC) or a corporation. An LLC should be fine to start.

You’re also going to need liability insurance and business insurance. We recommend speaking with a lawyer to determine what sort of liability insurance you require, and how to set up your contracts to protect yourself if a vehicle your business is towing is damaged.

Accidents happen, but accidents that involve something with a price tag like a vehicle can be very costly to your business. Make sure you have the appropriate insurance so that it doesn’t cost your business a fortune if something goes wrong.

3. Open a Bank Account

Once you’ve registered your tow truck business, you can apply for an employer identification number (EIN) on the IRS website, which is essentially a tax identification number. Your EIN gives you the ability to open a bank account on behalf of your new towing business.

Open a checking account with a debit card, so that you can put all business expenses on that account. This goes for vehicles, equipment, gas, insurance and anything else you require to do your job.

This will keep your tow truck business finances separate from your personal finances, which will help you avoid headaches at tax time.

4. Buy a Tow Truck

To offer towing services, you’re going to have to buy a tow truck. This will be your largest expense. Depending on the type of tow truck you’re buying, the investment will likely be between $40,000 and $100,000.

The type of tow truck you invest in will determine what kind of services your business can offer. For example, you won’t be carrying an oversized load with a truck designed to carry standard-sized vehicles.

Here are a few different types of tow trucks you can choose from for your business:

• Flatbed truck
• Oversized load tow truck
• Wheel lift tow trucks
• Hook and chain tow trucks

Keep in mind that you may save some money by purchasing a used vehicle for your business. A new vehicle will likely last you longer, but you’ll pay a lot less for a used one. Those lower startup costs will help you have a positive cash flow sooner.

However, if you’re buying used, you’ll want to have your mechanic take a look at it to make sure everything is in good shape before you buy so that no avoidable expenses rise soon after your purchase.

5. Determine Your Target Market

With everything worked out on the legal side, it’s time to dive into the fun part: Identifying your business’ target audience. 

For towing, you’ll want to determine whether you’re going the B2B or B2C route. B2B is short for “business to business,” and that means that you’ll be serving other businesses. B2C means that you’ll serve consumers directly.

Making this distinction from the start will help you with everything you do for your tow truck business going forward.

If you are going to serve businesses, what sort will they be? Will they be companies like AAA that offer roadside assistance, or will they be local garages and auto repair shops?

For heavy load towing, your business could specialize in moving manufactured homes and heavy equipment, so builders or construction companies would be your target audience.

On the consumer side, you could tow vehicles for people that break down and want to take their vehicles home rather than to the shop.

Become very clear on who your business will serve in a broader sense, and from there, build a more specific ideal client profile.

Narrow down where your ideal client is located, and what sort of budget they have for your services. For B2C audiences, you could go as far as identifying your ideal client’s age, occupation and income.

Don’t worry about being too specific, but the more fine-tuned your profile is, the easier it will be to speak to this audience.

6. Build Your Brand

Your brand is what gives your new company its own professional identity and breathes life into your business. 

Once you’ve established the target audience for your business, building your brand will be a breeze. Your brand should be geared towards the audience that you plan to serve while representing what your business has to offer.

The visual elements of your brand will include the logo, fonts and color palette that you’ll use on your website, business cards, pamphlets and other marketing materials.

Your brand’s persona will be built around your core values. It is a good idea to establish a mission statement that you follow in everything that you do. It could be about serving your clients to the best of your ability, making a difference in the community, or whatever rings true to you.

The end goal would be to build a brand that connects with the members of your community, and develops a sense of brand loyalty. You want your brand to pop into people’s heads immediately whenever they require a tow truck.

7. Market Your Services

How you market your towing services will depend on whether you’re targeting businesses or consumers.

When you start a towing business, the B2B model will likely make it easiest for you to get started. You can develop contracts with the businesses mentioned above so that you’re their go-to tow truck driver when their clients require assistance.

If this is the approach you’re going to take, you should make a list of businesses that meet the ideal client profile that you created, and propose the partnership. You could cold call or send emails, but stopping by in person is likely the most effective, especially if the list is short.

Come prepared with a custom pitch that shows how your tow trucking company can meet their unique needs and help them better serve their clients. Have pricing estimates worked out and a rough outline of what the process of working together would look like.

However, marketing to consumers is a bit different. You have to put yourself in your ideal client’s shoes. Recognize that they are going to be looking for a tow truck in a time of need. Where will they turn to find you?

The first answer is likely Google or another similar search engine. This means that you’ll want to make sure your business pops up when they search “tow truck near me” or “tow truck in [your location].”

To make this happen, you’ll want to invest in search engine marketing (SEM) or search engine optimization (SEO). SEM is when you pay for an ad to place your website and contact information at the top of search results, and SEO is when you optimize your content for it to rank as the top result organically. 

Either option can be highly effective.

8. Prove Your Reliability

Reliability is huge in the towing industry. No matter if you serve businesses or consumers, you’ll want to be on your game all the time, especially since you’ll likely be called in for time-sensitive jobs.

When you partner with a business to serve their clients, showing up and getting the job done to the best of your ability will prove that you’re reliable. You’ll likely be working with these clients regularly, so they will see the consistency.

However, if you’re working directly with consumers, collecting reviews on Yelp, Google and Facebook will help prove that you’re reliable. The reviews will pop up when they search for you, and they will speak for themselves.

By now, you have a decent understanding of how to start your towing business. However, you can start laying the framework for long-term growth from the get-go.

Here are a few tips and tricks for growing your towing business:

• Maintain great relationships with your customers
• Be easy to reach during working hours
• Prioritize timeliness
• Hire an assistant to take care of administrative work
• Give your business card to every customer
• Ask happy customers to leave you a review on Google

Remember: Growth will not happen overnight, but as long as you treat your clients well and render your services as promised, you’re destined for success. Also keep in mind that many of your clients will be calling you in a time of need, so you must be compassionate, patient and kind when you show up. 

Launch Your Towing Business 

Launching your own towing truck company is an exciting step. It gives you so much more control over your career and your future.

We are confident that our eight steps for starting a towing business will set you up for success. Setting out with a solid plan and carrying it through until you have your first happy client will make for such an amazing journey.

Stay true to your mission and focus on serving your clients to the best of your ability, and you’ll be destined for great things.

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If you’re ready to learn how to start a business that is focused on cruising the roads, helping drivers in their time of need, and handling automobiles, then you might be ready to start a tow truck business.

Right now is the perfect time to join the tow truck industry: The automobile towing industry brought in $8 billion in revenue in 2019. This whopping figure proves that starting a towing business is possible and profitable, even in 2020.

If you’re ready to learn more, read on for how to start tow truck business in six steps.

Step 1: Write your business plan

Your business plan will serve as your guide to building a successful tow truck business. Also, it will be your key to securing a business loan , should you need it. Here are some areas to pay careful attention to when writing your business plan.

Consider which clients you want to serve

When you think of a tow truck, most will probably think about roadside assistance should you ever run into car troubles while driving. However, there are a variety of services you can offer and clients across several industries you can serve. Here are a few services and industries to consider:

Roadside assistance for the general public

Towing impounded vehicles

Towing services for the city

Auto repair shops

Law enforcement

Auction houses

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Financial planning

Having a strong handle on your finances early on will prepare you for success down the road. Capital is what keeps your business up and running. Without it, you’ll quickly have to close your doors and shut down. Here are some steps to be mindful of when planning your finances:

Create a business budget

A carefully planned budget ensures that you have enough capital to afford overhead costs and expand your business. If your business is losing money, revisit your budget to see what costs you can reduce.

When creating a business budget for a towing business, here are some recurring expenses and startup costs that you’ll want to account for:

Licenses and permits

Purchasing tow truck(s)

Tow truck insurance

Employee salaries

Business insurance

Marketing expenses

Vehicle maintenance

Choose your equipment

Purchasing the right tow truck is probably the most costly but critical investment in your business. A new tow truck can cost $100,000 or more. However, you can save money by purchasing a used tow truck without sacrificing performance. Here are the various types of tow trucks you can expect to use for your business:

Flatbed trucks: This is the most commonly used towing vehicle. Its long, empty bed with a flat top makes it easy to move the towed vehicle in place and secure it onto the flatbed.

Integrated tow truck: These heavy-duty tow trucks are often equipped with extra axles for towing large vehicles, such as large trucks or buses.

Hook and chain tow truck: These tow trucks used to be popular before the flatbed truck took over. This type of tow truck is best suited for hauling wrecked vehicles to the junkyard.

Depending on what type of towing business you start, your equipment needs will vary. However, flatbed trucks are the most widely used and versatile type of tow truck. They should accommodate most situations you encounter when dealing with clients.

Separate your personal and business expenses

Neatly separating your personal and business assets is a must for any business owner. That’s why it’s recommended to open a business checking account . This extra step acts as a financial barrier that serves two useful purposes:

Taxes: When you’re reviewing your business expenditures for tax write-offs, you’ll find it easier when there’s a line drawn between your personal and business assets.

Personal liability: Should you form an LLC or corporation, you’ll need to separate your personal and business assets to enjoy your various personal liability protections. This protects your personal assets during any financial or legal disputes.

Opening a business bank account is just one way to distinguish your personal and business assets. Another tip is to open a business credit card , which you’ll use for all your business-related expenses.

Price your towing services

You’ll be making your revenue by charging your customers for towing vehicles. This charge includes a flat fee for the tow, a mileage fee, and sometimes a storage fee.

Many tow truck businesses price their services starting from $75 to $125. On top of this base cost, you can then charge between $2 and $4 for miles traveled when towing the car. If you’re keeping the vehicle within your custody for an extended time, you can also charge a storage fee for each night it's within your custody.

Step 2: Register your business

You’ll need to complete some important paperwork before you can open your doors for business. Registering your business with your state and local agencies will require you to complete the following steps:

Choose a business entity

The business entity that you choose will affect how you file your taxes and your risk exposure. We’ve narrowed down your options to the three most common ones:

Sole proprietorship: This business structure is the most simplistic and requires the least paperwork. Your personal and business taxes are filed together. However, this simplicity comes at a cost—you assume total liability (meaning both your personal and business assets are at risk). This may not be the best decision when working in an industry that’s exposed to a large degree of risk.

Limited liability company (LLC): LLCs can be formed as an individual or with multiple business partners. For tow truck businesses, this business structure is attractive because you enjoy some personal liability protection. During a legal dispute, you, the individual, are protected.

Corporation: If your goal is to aggressively grow your business to, for example, a nationwide brand, then forming a corporation may be for you. This independent entity shares many of the liability protections and tax perks that LLCs do and more. However, there is more paperwork involved, including writing bylaws and forming a board of directors.

Secure a unique business name

There are over 30 million businesses registered within the United States alone. A unique business name ensures that your business won’t be confused with other businesses. After you’ve found a business name that you’re satisfied with, confirm its availability with your secretary of state’s office and the U.S. Patent and Trademark Office .

Don’t forget to check if the domain name is available. Building an online presence is important for marketing purposes. Verify whether the domain name is available by using sites like Name.com or GoDaddy.com.

Register for an employer identification number

You’ll probably be hiring more drivers to expand your towing business. Before you do, you must register for an employer identification number (EIN) online with the IRS. This number is critical when filing your business taxes, applying for funding, and more.

Step 3: Secure startup funding

Securing startup capital is the catalyst that will manifest your business plan into reality. This is often necessary for starting a tow truck business because purchasing tow trucks can be a costly expense. Here are a few ways to secure the funding you need to kickstart your tow truck business:

Apply for a business loan

Checking with your bank is usually the first step for applying for a business loan. However, banks are often hesitant to work with new businesses that don’t have a history of profits. Fortunately, there are other options to consider, from online alternative lenders to SBA microloans that specifically target new entrepreneurs.

Another avenue to consider is a more specific type of financing. Your largest expenses will likely be your tow trucks, so you may want to explore commercial truck financing . This is essentially equipment financing , but specifically for trucks. In this case, your trucks will also serve as collateral for the loan, which could make them easier to qualify for, even if your financials aren’t perfect.

Self-finance your business

Also called bootstrapping , this route is for those who already possess the financial means to start their business. Self-financing requires financial discipline because you’ll be risking your personal cash reserves. Due to this, it’s advised that you spend extra time in the financial planning section of your business should you self-finance your business. However, this extra risk also carries the benefit of having full ownership of your business.

Friends and family

You also have the option to seek funding from your friends and family to help get your business off the ground. Keep in mind, even though this may feel informal, you’ll want to draw up formal paperwork to make sure both parties are on the same page as far as repayment terms. If your immediate network is tapped, you may also consider crowdfunding your business venture.

Step 4: Obtain licenses, permits, and business insurance

Operating a tow truck business requires you to register for certain licenses and permits. Be sure to check with your state’s Department of Transportation to confirm you’re complying with the necessary requirements. Generally, tow truck business owners will need to secure the following licenses and permits:

Indictment management permit to tow vehicles without consent when requested by law enforcement

Private property permit to tow vehicles without consent when requested by the parking facility owner

Consent to tow permit to tow vehicles with consent by the vehicle owner

Oversized vehicle permit to operate a tow truck that exceeds a certain weight load

Class B driver’s licenses to authorize drivers to operate a vehicle that weighs over 26,000 pounds or to tow another vehicle weighing 10,00 pounds or less

Purchase tow truck insurance

As you can imagine, operating a tow truck business exposes you and your drivers to various road-related risks and hazards. Purchasing insurance ensures that you’re covered during an unfortunate accident. There are various types of insurance to consider for your business:

Auto-liability insurance covers you when you’re at fault during an accident and must cover the other driver’s medical and property expenses.

Physical damage insurance covers any necessary repairs to your tow truck during an accident.

Comprehensive coverage is useful when your vehicle is damaged outside a collision, such as fire, theft, falling objects, or collision with an animal.

On-hook coverage is necessary for protecting you should any vehicles get damaged while hooked up to your tow truck.

Uninsured motorist insurance covers any injury to you or your passenger caused by a driver who doesn’t have insurance or during a hit-and-run incident.

Step 5: Promote your business

You’ve done the legwork to get your towing business off the ground, but now you need to find clients. After all, no clients mean no money for your business. Here are some tips for how to promote your business.

Rank for local SEO

Social media has revolutionized the marketing industry. However, tow truck business owners would likely see more returns if they invested in SEO over social media. Drivers are more likely to do a quick Google search for a tow truck rather than connect with your business through social media.

When optimizing your content for SEO, you’ll want to rank for terms specific to your area like “tow truck California” or “towing in Ohio.” You can even narrow your geographic region by county. When local residents are entering these search terms in Google, this increases your chances of getting found on the first page.

Also, make sure you complete online business profiles on sites like Google and Yelp to increase your chances of being found.

Become a AAA contractor

The American Auto Association is a nationally recognized brand for offering roadside assistance. You might be surprised to learn that many of the tow trucks they dispatch are local contractors.

There are many benefits to partnering with AAA. Many drivers are AAA members and use them as their dedicated roadside service provider. That means more business for you, should any of their members call in for help. Also, you boost your own reputation and credibility by association with this trusted brand. Visit your nearest AAA to inquire more about signing on as a contractor within their network.

Hire more employees

As your business grows, you’ll receive more requests for your services. To keep pace with demand, you can hire more employees and purchase more tow trucks. Also, consider creating a central dispatch office. All calls will be fielded by the dispatch office and those representatives will coordinate with tow truck drivers to execute the job. Training your call representatives in customer service will improve relations with your customers. Customer service, fast response times, and unbeatable service are marketing tools in and of themselves and will increase brand loyalty.

Step 6: Know your responsibilities as an employer

The early stages of starting a tow truck business can feel overwhelming. Before hiring staff, you’ll probably assume several responsibilities, such as answering phones, driving to the client’s location, marketing, and balancing the books.

If you hire employees, you’ll want to research the OSHA Employer Responsibilities to ensure that you’re complying with your obligations as an employer. Some key points to consider are:

Posting the employee’s rights and responsibilities in plain view (especially important if you open a central dispatch office)

Provide safety training using clear language and vocabulary

Confirming that all your tow truck drivers are properly trained and have Class B Driver’s Licenses

Keeping tidy records of work-related injuries and illnesses

LLC Formation

Final thoughts

Starting a towing business is doable, but requires some grit and dedication on your part. Don’t be afraid to spend extra time writing your business plan. It will guide you to success and will help you secure startup funding—especially when it’s time to buy your tow trucks. If you follow these steps, secure the necessary startup funding, and have a love for servicing your clients, you'll maximize your tow truck business's chance of success.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

On a similar note...

Tow Truck Business Plan Template

Written by Dave Lavinsky

Tow Truck Business Plan

You’ve come to the right place to create your Tow Truck business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Tow Truck businesses.

Below is a template to help you create each section of your tow truck business plan.

Executive Summary

Business overview.

TJ’s Tow Truck Service is a startup towing company located in Tacoma, Washington. The company was founded by Tory Jane Jamison, a tow truck driver who has driven tow trucks for a former employer for ten years. She was known among customers as the “most friendly and most experienced” tow truck driver they’d ever met and her former employer gave her the award most years as the “Best in Class Tow Truck Driver” within the company overall.

TJ’s Tow Truck Service will provide a comprehensive array of products and towing services, including towing of cars and pickup trucks, along with smaller recreational vehicles or trucks with trailers. In addition, services such as battery servicing, tire changes, lockouts, and fuel delivery are offered to customers in need of assistance. Because of Tory Jane’s background, her expertise in her role, and her customer reviews, she believes that she can start a successful tow truck business.

Product Offering

The following are the services that TJs Tow Truck Service will provide:

• Towing services within a fifty-mile radius for cars, trucks and vans or small recreational vehicles
• Proprietary app that offers up-to-the-minute service details for clients
• Battery charges, startups, and servicing
• Tire changes, repairs and installations
• Lockout repair and key retrieval
• Fuel delivery when vehicles is out of gas

Customer Focus

TJ’s Tow Truck Service will target residents within a fifty-mile radius. TJs Tow Truck Service will target interstate and state highway travelers within a fifty-mile radius. TJs Tow Truck Service will target retail tire stores, auto repair companies and insurance companies. Commercial fleets (businesses that use multiple vehicles and need long-term contracts) and law enforcement agencies will also be targeted.

Management Team

TJs Tow Truck Service will be owned and operated by Tori Jane Jamison. She recruited three former tow truck driver associates, Ron Harbinger, Track Masters, and Bill Acker, to join her business to take on management roles in the tow truck company.

Tori Jane Jamison started her career as a U.S. Marine, where she was assigned to a truck driving role and service attendant for the U.S. Marines. She served four years within that capacity and ended her career after those years with an exemplary record of duty and expertise in her field.

Ron Harbinger is a thoroughly experienced tow truck driver, with a twenty-year background of successfully towing vehicles of all sizes without a single “event” or “injury” attached to his service. Ron will take on the new role of Tow Truck Supervisor, overseeing the truck-driving team and handling all human resources issues.

Track Masters is a well-trained master of driving in all weather conditions, including snow, ice and thunderstorms. He has seven years of experience and will take on the role of Scheduling & Service Supervisor, overseeing the scheduling of service calls and the customer service environment overall.

Bill Acker is a veteran tow truck driver with almost twenty years of experience. He is joining the team as the Maintenance Supervisor, overseeing the care and safety of all tow trucks, including replacements, repair and serving of all vehicles on the property. He determines when roads are safe to travel or when other weather conditions or events preclude allowing drivers to venture out onto the area roadways.

Success Factors

TJs Tow Truck Service will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly qualified team of TJs Tow Truck Service
• Proprietary app that tracks services and allows up-to-the minute response times
• Emergency service as requested by law enforcement or fire department
• TJs Tow Trucks Service offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.

Financial Highlights

TJs Tow Truck Service is seeking $200,000 in debt financing to launch TJs Tow Truck Service. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:

• Office space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for TJs Tow Truck Service.

Company Overview

Who is tjs tow truck service.

TJs Tow Truck Service is a newly established, full-service tow truck company in Tacoma, Washington. TJs Tow Truck Service will be the most reliable, cost-effective, and efficient choice for residents and travelers in Tacoma and the surrounding communities. TJs Tow Truck Service will provide a comprehensive menu of products and services for any customer to utilize. Their full-service approach includes a comprehensive array of services to be offered to the analyst..

  TJs Tow Truck Service will be able to cover an extensive area of Tacoma, as well as the surrounding communities in several rural directions. The team of professionals are highly qualified and experienced in towing and ancillary services. TJs Tow Truck Service removes all headaches and issues usually experienced by customers who need emergency towing and ensures all issues are taken care of expeditiously while delivering the best customer service.

TJs Tow Truck Service History

Since incorporation, TJs Tow Truck Service has achieved the following milestones:

• Registered TJs Tow Truck Service, LLC to transact business in the state of Washington.
• Has a contract in place at one of the office buildings, where the tow truck company will set up its 10,000 square foot staff lounge and office area.
• Reached out to numerous contacts to include former customers as new customers.
• Began recruiting a staff of six tow truck drivers and office personnel to work at TJs Tow Truck Service.

TJs Tow Truck Service Services

The following will be the services TJs Tow Truck Service will provide:

• Roadside Assistance

Industry Analysis

The tow truck industry is expected to grow over the next five years to over $39 billion. The growth will be driven by:

• an increased number of calls for roadside assistance due to crowded freeways, self-driving cars, electric cars, and other forms of travel not yet known.
• The growth will also be driven by an increased number of customers who own digitally-controlled vehicles that they cannot move (as when batteries die).
• the increased number of accidents on roadways and highways. These will be due to an increase in semi-trucks on the highways and vehicles that crowd city streets.

The two truck industry costs will likely be reduced as tow truck products will be less-expensive to purchase from wholesalers or distributors and new methods of vehicle assistance will come into play, such as apps that can open locked vehicles, or apps that demonstrate the exact issue within the car when it stops unexpectedly.

Customer Analysis

Demographic profile of target market.

TJs Towing Service will target residents within a fifty-mile radius. TJs will target interstate and state highway travelers within a fifty-mile radius. They will target retail tire stores, auto repair companies and insurance companies. Commercial fleets (businesses that use multiple vehicles and need long-term contracts) and law enforcement agencies will also be targeted.

Customer Segmentation

TJs Tow Truck Service will primarily target the following customer profiles:

• Residents of Tacoma, Washington and nearby regions
• Travelers on highways in or near Tacoma, Washington
• Retail tire stores
• Auto repair companies
• Insurance companies
• Commercial fleets
• Law enforcement agencies

Competitive Analysis

Direct and indirect competitors.

TJs Tow Truck Service will face competition from other companies with similar business profiles. A description of each competitor towing truck company is below.

Midway Towing Services

Midway Towing Services is a tow truck service catering to the needs of medium-sized trucks and cars. Midway focuses on the unique requirements of these vehicles and provides assistance with an eye on safety, efficiency, and customer satisfaction. Midway Towing Services is located 30 miles away from Tacoma, Washington and serves travelers on the highways the feed the web of freeways through Tacoma. The towing truck company does not typically take routine service calls, but remains committed to emergency services when charges for services will be more lucrative for the company.

Midway Towing Services is owned by a partnership of family members who concentrate on the superior usage of their trucks and they ensure that medium-weight vehicles, including other tow trucks, vans, box trucks and others can be lifted and towed successfully. The company operates on a 24-hour a day basis and offers a special “Snow Package” to put chains onto trucks and heavy vehicles on a discounted basis.

Titan Towing Solutions

Titan Towing Solutions is owned and operated by Jack Higgins, a former semi-truck driver with over twenty years of experience. Titan Towing Solutions is focused on one type of customer: semi-trucks on the highways or city roadways that need either scheduled assistance or emergency assistance. The company does not offer roadway assistance for any other class of vehicle. Titan Towing Solutions has been in business since 1999 and has garnered several community awards and the “Most Reliable Towing Company in Tacoma.”

Titan Towing Solutions offers products to semi-truck drivers within a small convenience store that can ease the pains of driving shifts; such as semi-truck accessories, snow removal products, apparel, refreshing beverages, caffeine-loaded sodas, snacks and packaged appetizers.

AutoCall Roadway Services

Autocall Roadway Services is a retail store and tire repair service center that also provides tow truck service when the single tow truck owned by the company is available. The main theme of the AutoCall Roadway Services company is that driver safety of vehicles is the most important aspect of driving, so the company representatives will often stop to assist any driver with information or offers to call for tow truck service. As a for-profit company, the retail-comfort side of products available for purchase by drivers is the primary driver of revenue, rather than those of a tow truck service company.

Autocall Roadways Services prides itself on being open 24/7 every day of the year and offers an inventory of multiple food and beverage choices for drivers.

Competitive Advantage

TJs Tow Truck Service will be able to offer the following advantages over their competition:

• TJs Tow Truck Service offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.

Marketing Plan

Brand & value proposition.

TJs Tow Truck Service will offer the unique value proposition to its clientele:

• Highly-qualified team of skilled employees that is able to provide a comprehensive array of towing services and vehicle products for everyday or emergency use.
• Proprietary app that allows up-to-the-minutes resources and response times for clients.
• Unbeatable pricing for customers; they will offer the lowest pricing in Tacoma.

Promotions Strategy

The promotions strategy for TJs Tow Truck Service is as follows:

Word of Mouth/Referrals

TJs Tow Truck Service has built up an extensive list of contacts over the years by providing exceptional service and expertise to former customers. Those customers have already indicated they will use TJs Tow Truck Service when services or products are needed. They’ve also agreed to help spread the word of TJs Tow Truck Service.

Print Advertising

Direct mail response cards will be mailed to all residents, select businesses, and law enforcement procurement offices in the region. The offer will be a discount on services during the first three months of service. In addition, an offer to provide long-term contract pricing will be added for law enforcement or commercial fleet companies.

Website/SEO Marketing

TJs Tow Truck Service will fully utilize their website. The website will be well organized, informative, and list all the services and products that TJs Tow Truck Service provides. The website will also list their contact information and a map of regional service areas. The website will utilize SEO marketing tactics so that anytime someone types in the Google or Bing search engine “tow truck company” or “towing near me”, TJs Tow Truck Service will be listed at the top of the search results.

The pricing of TJs Tow Truck Service will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for TJs Tow Truck Service. Operation Functions:

• Tori Jane Jamison will be the Owner and President of the company. She will oversee all staff and manage client relations. Tori Jane has spent the past year recruiting the following staff:
• Ron Harbinger, a thoroughly experienced tow truck driver, with twenty years of experience, will become the Tow Truck Supervisor, overseeing the drivers and handling all human resource issues.
• Track Masters is a master of all-weather driving and has been a tow truck driver for seven years. He will take on the role of Scheduling & Service Supervisor, overseeing the service calls and customer service.
• Bill Acker, also an experienced tow truck driver, will become the Maintenance Supervisor, overseeing the care and safety of all tow trucks, including replacements, repair and serving of all vehicles on the property.

Milestones:

TJs Tow Truck Service will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to lease office space
• 5/15/202X – Finalize personnel and staff employment contracts for TJs Tow Truck Service
• 6/1/202X – Finalize contracts for TJs Tow Truck Service clients
• 6/15/202X – Begin networking at community events
• 6/22/202X – Begin moving into TJs Tow Truck Service office
• 7/1/202X – TJs Tow Truck Service opens its doors for business

TJs Tow Truck Service will be owned and operated by Tori Jane Jamison. She recruited three former tow truck driver associates, Ron Harbinger, Track Masters, and Bill Acker, to join her business to take on management roles in the startup company.

Financial Plan

Key revenue & costs.

The revenue drivers for TJs Tow Truck Service are the fees they will charge to customers for the products and services they provide.

The cost drivers will be the overhead costs required in order to staff TJs Tow Truck Service. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

TJs Tow Truck Service is seeking $200,000 in debt financing to launch its tow truck driving company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Customers Per Month: 65
• Average Revenue per Month: $162,000
• Office Lease per Year: $100,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Tow Truck Business Plan FAQs

What is a thrift store business plan.

A thrift store business plan is a plan to start and/or grow your thrift store business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Thrift Store business plan using our Thrift Store Business Plan Template here .

What are the Main Types of Thrift Store Businesses? 

There are a number of different kinds of thrift store businesses , some examples include: Vintage thrift store, Consignment thrift store, and Goodwill thrift store.

How Do You Get Funding for Your Thrift Store Business Plan?

Thrift Store businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Thrift Store Business?

Starting a thrift store business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Thrift Store Business Plan - The first step in starting a business is to create a detailed thrift store business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your thrift store business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your thrift store business is in compliance with local laws.

3. Register Your Thrift Store Business - Once you have chosen a legal structure, the next step is to register your thrift store business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your thrift store business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Thrift Store Equipment & Supplies - In order to start your thrift store business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your thrift store business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful thrift store business:

• How to Start a Thrift Store

Towing Company Business Plan Template

🚚 towing company business plan template: steering your tow service to success 🛠.

Launch or Expand Your Towing Empire with Our Custom Business Plan Template Designed for the Roadside Assistance Industry!

📄 Towing Company Business Plan Template Introduction

Introducing our Towing Company Business Plan Template, a comprehensive guide crafted for entrepreneurs gearing up to start or grow a towing service. This template outlines a clear path for establishing a reliable, efficient towing company, combining industry know-how with strategic business planning.

🌟 Key Highlights

• Word Document Template A customizable and editable template, specifically designed to meet the unique challenges and opportunities of the towing and recovery industry.
• Executive Summary A succinct, compelling summary that captures the essence of your towing company, essential for attracting investors, partnerships, and customers in need of your services.
• Company Description A detailed section to outline your company’s mission, services offered, and what sets your towing service apart in the competitive market.
• Towing Industry Analysis Basic analysis of the towing market, offering insights into current trends, customer needs, and the competitive landscape to strategically position your business.
• Organizational Structure A clear depiction of your company's structure, detailing roles and the operational workflow for efficient service delivery.
• Marketing Strategies Tailored marketing plans designed to effectively promote your towing services, focusing on digital marketing, local SEO, and building strong relationships with automotive businesses.
• Funding Request Guidance on formulating a persuasive funding proposal to secure the necessary capital for starting or expanding your towing operations.
• 12-month profit and loss forecast.
• 5-year pro forma income statement.
• A user-friendly, adaptable Excel File.
• Flexibility to adjust revenue streams, operational costs, and staffing.
• Detailed financial analysis for informed business decision-making.

🛠 Tailored for Towing Service Excellence

Our template is crafted for adaptability, allowing you to customize each component to suit the specific needs of your towing company. The Excel financial model is an essential tool for managing your finances, adapting to the unique dynamics of the towing service industry.

🚨 Building a Foundation for Your Towing Business

Begin your journey in the towing industry with a strategic and comprehensive business plan. Our Towing Company Business Plan Template is not just a document; it’s a roadmap to creating a successful and dependable towing service.

📥 Ready to Hook Your Business Goals?

Take the first step towards a thriving towing company. Click HERE to access this vital resource and start planning the future of your roadside assistance venture.

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Want us to complete your business plan template for you ( additional charges and restrictions apply )?  Not a problem!  Just complete our questionnaire, email it to us, and, once approved AND final payment is made, your completed business plan template will be ready in as little as 1 business day !

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"Free" Business Plan Templates

• Pretty Cool - Business Plan Structure
• Excellent - Industry-Related Research
• Awesome - Customized Financial Projections for your Industry
• Even MORE Awesome -Template Written by Paul Borosky, MBA.
• - Fill-in-the-highlighted-areas Format
• - Completed Pricing Strategy
• - SWOT Analysis Completed
• - Organizational Chart
• - Funding Request Section
• - Step-by-Step Tutorial for Business Plan Doc.
• - Step-by-Step Tutorial for Financial Projections Model

Quality Business Plan Templates

• Excellent - Industry-Related Research ($100 value)
• Awesome - Customized Financial Projections for your Industry ($300 value)
• Even MORE Awesome - Template Written by Paul Borosky, MBA.
• Plus... - Fill-in-the-highlighted-areas Format
• Plus... - Completed Pricing Strategy
• Plus... - SWOT Analysis Completed
• Plus... - Organizational Chart... Done!
• Plus... - Funding Request Section... Yes!
• Plus... - Step-by-Step Tutorial for Business Plan Doc.
• Plus... - Step-by-Step Tutorial for Financial Projections Model

Towing Company Business Plan Templates Includes:

• Executive Summary
• Company Description
• Towing Company-related Industry Analysis INCLUDED!
• Organizational Structure for a typical Towing Company.
• Marketing structure for Towing Company usage.
• Funding Request
• 12-month profit and loss statement
• 5-year pro forma income statement
• Basic customizable Excel File
• Ability to change revenues, costs, and labor.
• 12 Profit and Loss
• 5 Yr Annual Projections.

Instructional Video:

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Available Monday - Friday from 8 AM to 9 PM EST. (Usually)

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Hooking Success: The Ultimate Towing Company Business Plan Template

Accelerating toward towing triumphs.

Quality Business Plan introduces a Towing Company business plan template, expertly pieced together as a customizable Word document and Excel financial model. This indispensable toolkit is designed for entrepreneurs venturing into the towing industry or those looking to drive their existing towing service to new heights. It provides a focused, industry-relevant framework for business planning, essential for navigating the competitive and demanding world of towing services.

A Strategic Roadmap for Towing Business Mastery

This all-encompassing template lays out the essential steps for creating and growing a successful towing company. It features crucial sections such as an Executive Summary, Company Description, Industry Analysis, Organizational Structure, and Marketing Strategies. Each segment is meticulously structured to tackle the unique operational and market challenges of a towing service, ensuring a comprehensive and implementable business plan.

Simplified Planning with Expert Navigation

Understanding the complexities of business planning in the towing sector, Quality Business Plan offers accessible tutorial support. These guides, available on their website, assist users through each component of the template, making the planning process manageable and straightforward, particularly for those new to the towing industry.

Marketing Strategies for Maximum Roadside Impact

Effective marketing is key for a towing company to stand out and attract a steady flow of customers. The template includes detailed marketing strategies, utilizing both digital platforms and local networking, crucial for building brand visibility and establishing trust within the community.

Financial Blueprint for a Thriving Towing Operation

Robust financial planning is the foundation of a successful towing company. The template features a comprehensive financial planning section, including a Funding Request and detailed financial projections like 12-month profit and loss statements and 5-year pro forma income statements, tailored specifically for the towing industry.

Conclusion: Steering Toward Success in the Towing Industry

In conclusion, Quality Business Plan's Towing Company business plan template is more than just a document; it's a strategic guide to success in the towing sector. This template equips entrepreneurs with the necessary tools and insights to launch or expand their towing service, paving the way for a successful, resilient, and profitable business in the vital service of towing.

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8 Steps to Start a Profitable Towing Business: How to Start Your Own Company

Do you wish to start your own business but don’t know where to start?

Starting any kind of business, however, takes a lot of work. The key is to obtain the right knowledge and avoid all the usual mistakes. Thankfully, you’ve come to the right place, as this step-by-step guide lays out all you need to know about how to start a towing company.

The tow truck industry is rife with opportunities. The automobile towing industry in the United States is worth $11.3 billion and is expected to grow by 2.9% by 2022. This staggering figure shows that starting a towing business is feasible and profitable. So, if you are looking for a profitable business idea and the opportunity to make some money, make your move now.

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Towing is a service that will have a consistent demand for the near future. Even though cars are becoming more and more reliable, accidents and breakdowns happen, and drivers need somebody to give them a tow. So, if you’re looking to start a business that provides a sense of consistency and very little stress or unnecessary excitement, a towing company could be the route for you. 

In this blog, we’re going to cover the eight essential steps to start a towing company. Just follow them and you are all set to join the competition and make profits

Table of Contents

1. Make A Business Plan

If you want to know how to start a towing business, you need to begin with developing your finances and strategies. To this end, you need a solid business plan . Every successful company begins with a good idea and a solid plan to back it up. Writing a business plan may appear daunting, but it simply entails getting your ideas out of your head and onto paper.

To start a towing business , you’ll need to decide what type of towing services your company will provide and who will receive them.  Will you do all the towing yourself, or will you have a team of tow truck drivers working for you? Making these decisions early on will assist you in determining the structure of your tow truck company.

In addition, you should figure out your budget and choice of location. You should know how much you will spend on a truck and other startup expenses for your company. At this point, consider insurance, marketing, and branding materials as well. Also determine how much you will need to charge for your business to be profitable. 

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2. Name Your Towing Business

Before you learn how to start a towing company, you must choose a unique name for your business. Choosing the right name is important and challenging.This must be unique, memorable, yet easy to remember for your target customers. But most importantly, you need to make sure that nobody else has the name you have chosen for your business.

When registering a business name, we recommend researching your business name by checking:

• Your state’s business records
• Federal and state trademark records
• Social media platforms
• Web domain availability

It’s very important to secure your domain name before someone else does.

3. Register Your Towing Business

You must first complete some important paperwork before you can open your doors for business. First, register your towing business to make it a legal entity. You can register your tow truck business as a limited liability company (LLC) or a corporation. An LLC should be fine to start.

Depending on your location, the licensing needs to operate a towing company may vary. Make sure to perform adequate research and reach out to a trusted professional in the towing industry for guidance. As with most specialized businesses, a business license is required. Permits for oversized vehicles may also be required if you use them. Contact your state department of transportation to see exactly what you’ll need to attain.

You will also require liability insurance and business insurance. You can consult with a lawyer to determine what type of liability insurance you need and how to structure your contracts to protect yourself if a vehicle towed by your company is damaged.

4. Open A Business Account

Once you’ve registered your tow truck business, you can apply for an employer identification number (EIN) on the IRS website, which is essentially a tax identification number. Your EIN gives you the ability to open a bank account on behalf of your new towing business.

Open a checking account with a debit card, so that you can put all business expenses on that account. This goes for vehicles, equipment, gas, insurance, and anything else you require to do your job.

When you start a towing company , this will keep your tow truck business finances separate from your personal finances, which will help you avoid headaches at tax time.

5. Determine Your Target Market

Tow truck businesses receive calls from multiple outlets. Police departments, other municipal departments, individuals, motor clubs, repair shops, auto auction companies and property owners may all call a tow truck to move vehicles.

It’s likely local authorities and business owners will already have towing contracts with an existing company. So, in the short term, focusing on breakdown recovery or other ad-hoc orders may be the easiest route. As you build your reputation, you can look to earn contracts doing towing for private parking spaces and the local police or offering recovery services for firms with large fleets of vehicles. 

6. Outline Your Services Offered

Just like there are thousands of different types of vehicles on the road, there are many types of towing. Most of these involve transporting vehicles from the spot where they broke down to somewhere that they can be fixed, but others are a bit more unique.

Here are a few of the most popular types of towing businesses.

• Post-accident clean up: Some towing companies are dedicated to picking up wrecked cars after a collision.
• Contractor for roadside assistance company: AAA and other roadside assistance companies bring work to lists of preferred local towing businesses.
• Oversized load: Have you ever seen a house (or half of a house) cruising down the highway? Oversized load-hauling is a kind of towing.
• Vehicle transport: Some tow truck drivers specialize in transporting vehicles long distances.
• Other: Some towing companies transport other things like boats.

Certain services may require the use of extra equipment. If your company is equipped/qualified to offer those services, this could be a good way to stand out from the crowd. 

7. Arrange Your Equipment

To start a towing business, purchasing the right equipment is the most crucial task. It is advisable to start this business with one or two vehicles. As your business grows, you can go with multiple options. Initially, this business can be operated from home. If you have a spare room, you can set up a home office there to maintain your daily activities. But you will need to arrange safe parking for the towing vehicles. 

A new tow truck can cost $100,000 or more. However, you can save money by purchasing a used tow truck without sacrificing performance. Here are the various types of tow trucks you can expect to use for your business:

8. Invest in Technology

If you want your towing company to make the maximum profit and successfully build a brand for your business, you must leverage modern tools and technology. In this age of digital transformation, tools like towing business software could be your biggest advantage in this fierce market competition. 

In this smart field service management software , you can easily standardize and streamline your business processes to optimize your resources and increase efficiency. For example, towing management software solutions help you to automate scheduling and dispatching , optimize routing, track and monitor your field technicians in real-time, create invoices and send directly to to the customers, organize customer databases, and so on. 

Additional Requirements for Starting A Towing Business

The exact rules and regulations vary from state to state, and sometimes even county to county, but in general, you’ll require the following qualifications to apply for a Tow Driver ID in the United States:

• 18 years or older
• Valid driver’s license
• Clean driving record
• No more than three accidents within a year in the past three years
• No DUIs in the past five years
• No more than one DUI in the past 10 years
• Speak English at a conversational level

More specific criteria may apply based on your location. Some jurisdictions may even have exceptions to these rules. The main goal of these stringent guidelines is to ensure that only trustworthy individuals operate tow trucks and handle people’s cars. 

Wrapping Up

Every tow truck business should have an online presence so that individuals who need a tow can find the business. Tow truck companies shouldn’t completely ignore marketing channels like social media, but they’re usually wiser to direct most resources towards local search engine optimization (SEO) . Individuals are more likely to use a search engine to find a nearby towing service when they need one than they are to engage with one on Facebook or Twitter. 

A well-built website can also help customers find and book services, potentially increasing your towing leads. These clients can share your services online with their friends, giving you the opportunity to ask for referral leads.

So, if you want to start a towing business, you need to use the digital platform efficiently. Besides, digital tools like towing business software can also help boost your business to the next level.

To sum up, learning how to start a towing company in this age of technology involves having essential knowledge of digital tools. If you can achieve that goal successfully, nothing can stop you from launching your own business and making profits.

For more information, contact Field Promax.

A towing business is a terrific but profitable business venture, and it is better to be well informed, so you will not be caught off-guard. Typically, it requires some specialized knowledge and skill. Also, having experience in the transportation industry will help you in this industry.

Most tow truck companies charge by the mile with a base hookup fee. The average cost for towing services can vary by company and region. Many towing companies charge a base rate for the first few miles, then charge an additional cost per mile after that. Besides, tow truck drivers have all kinds of ways to make money besides just towing cars. They can offer roadside assistance to people whose batteries have died, who have a flat tire, or even combine it with mobile mechanic services.

• Create a Business Plan. Every great business starts with a good idea and a solid plan to back it
• Open a Bank Account
• Buy a Tow Truck
• Determine Your Target Market
• Build Your Brand
• Market Your Services
• Prove Your Reliability

Author Name :

My world is made up of codes. It is the central element that drives my universe. I am a self-taught, process-driven programmer with a creative bent of mind. Since I was an engineering student, I dreamt of creating something unique. To satiate my creative appetite, I took to coding. Blessed with abundant support and generous scholarships from my employers, I simultaneously worked full-time and pursued my dream. My passion and high productivity helped me in my journey as well. Finally, I created Field Promax to follow my drive of coding and streamlining processes; and do more of what I know best—coding.

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Towing Company Business Plan

Services, local markets and financial considerations are all accounted for in this free, printable business plan for towing companies.

Sample text from Towing Company Business Plan:

1.0 Executive Summary

Introduction

COMPANY NAME is a roadside assistance and towing company that serves the communities of [COUNTY] and [COUNTY] Counties in northern [STATE]. The firm was established 10 years ago and currently operates 4 flat bed tow trucks, serving as an independent contractor for the three major car club organizations that serve northern [STATE] (AAA, Cross Country Club, and US Auto Club). COMPANY NAME mission is to serve the community, believing a car break-down should not ruin you day.

The firm is located in [CITY], [STATE] and serves the metropolitan area.

The Organization

The firm is 100% owned and managed full-time by INSERT NAME, an experienced entrepreneur who previously owned a messenger/package delivery service and 3 used car dealerships.

• Heavy-Duty Towing & Recovery

• Light-Duty Towing & Roadside Services

• Emergency Roadside Services For Autos, Vans, SUVs, Light Trucks, Motor Homes

• Jump-starts

• Fuel Delivery

• Lockouts

• Standard Vehicle Tire Changes

• Local & Long-Distance Towing

• Roadside Services for Trucks

The firm serves northern [STATE], an area with very high household income due to the heavy presence of government jobs and government related positions and the very high pension income of government retirees. This makes the area somewhat recession proof and the two counties have a combined population of 1,248,000.

Financial Considerations

COMPANY NAME produced $386,000 in sales in 2009 and a net loss of (-$80,000). The firm is projecting $850,000 sales in 2001 and a $78,000 net profit for 2011. The borrower is now requesting $500,000 in grant funding in order to expand the business by purchasing 3 trucks, hiring 3-5 drivers, and hiring 2 office workers. The firm also needs $25,200 held in cash.

The major focus for grant funding is as follows:

1. The firm is a 100% minority-owned.

2. The firm has existing clearance to serve various U.S. government agencies, including the military; and would be available during a state of emergency.

3. Hire employees; the Organization will look to hire veterans, minorities and the unemployed

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How To Start Towing Truck Business [PLAN]

Tow truck business startup guide.

Are you interested in making money by running a towing business? A towing business as with all businesses can be challenging as well as rewarding, especially when a solid foundation for its success is put in place.

With stranded motorists usually not possessing legal tow permits and at the same time, auto repair shops not maintaining tow trucks as part of the auto repair shop; it presents a great investment gap for entrepreneurs to fill in.

Independent car towing companies come to the rescue of stranded passengers as auto repair shops largely rely on their services to bring damaged vehicles to them.

Get a License

In North America, getting a license to operate a towing business is very difficult and challenging due to heavy regulation. Some operators of towing companies have devised a means of going around this problem.

They contract their services to property managers and car dealerships to carry out this work (towing). But this is fraught with risks as they are not covered by proper towing business liability insurance.

The solution to this is to purchase this license from an already established franchise towing company, but this comes at a high cost. Purchasing a license and tow truck can cost as much as $200,000! But if the buyer can get a license and tow truck at a fair price, the possibility for an increased profit margin is unlimited after buying a towing truck business for sale.

Your Target Market

Your target market consists of areas where your services are much in need and putting this in context, there are several thousands of car breakdowns on highways and off highways, vehicles parked illegally in private spaces or property, improperly parked outside public spaces such as roadsides need to be towed.

To enable customers to recall your company/business, a serious and aggressive marketing campaign needs to be carried out to register your business in the memories of potential clients for use whenever they are in a fix. To achieve this, a catchy name and phone number can do the trick. All these should be well captured in your towing business plan.

Startup Procedure

What do I need to start a towing business? What are the requirements for a towing company? There are procedures or steps to take when starting a towing business and among these procedures, filing the necessary paper works with the state or the authorities is required.

Also, it is best if the business is registered as a limited liability company or a corporation because these legal structures protect businesses to a large degree as compared to businesses registered under sole proprietorship. Also, inquires about business permits and other documentation need to be made.

What Cars Make up Your Fleet?

What are the costs of running a towing business? Depending on how large or small a tow business may be, functionally tow trucks or wreckers have to be put in place. The number of towing businesses using the flatbed model of two trucks is on the rise, and you will do well to have one. This is because they can tow badly-damaged vehicles, unlike the hooked wreckers where the rear-wheel axle of the damaged cars needs to be in good shape, including the tires to enable easy towing.

As your towing company expands, more tow trucks and equipment are inevitably needed, and hence, for example, instead of a single cell phone call to the tow driver, a dispatch system would provide easy management and mobilization.

Holding Yard

A secured parking lot is crucial to the smooth operation of a towing company. Impounded cars whose owners are unable to pay for their release are kept in such secure yards pending when their owners offset their bills.

These holding yards can hold vehicles for days and even weeks. Having this is very invaluable to the smooth running of a towing business as it presents another way of generating critical income.

Market Access

To gain a fair share of market access, tow companies both new and old need to make their presence felt by both the authorities and potential customers. How may this be achieved? You may ask, by simply making contact with the local police jurisdictions for your tow company to be included in their roster of accident responders.

Also, you can visit local auto shops around to strike a mutual referral agreement. Also, your towing business company must have an online presence where customers can easily make a tow request if you wish to have a fair share of the local market.

Colorful towing company business cards should be spread across strategic locations such as bulletin boards, auto repair shops and also in local bars. This serves to register your presence and create awareness in the minds of your potential customers about the availability of this service.

Employees/Drivers

For your business to move smoothly, only drivers with good track records of driving and also possessing commercial driving licenses should be hired. They must be polite and helpful and also, they must also possess clean driving records.

Purchase High-Quality Equipment

What are some basic towing business start-up costs? A good and functional tow truck is crucial to tow business success, hence, investing in one or several as your financial strength may allow is necessary.

When buying a tow truck or trucks, the services of an independent vehicle inspector should be enlisted. This is to enable him/her carry out examinations on the car to find out if it is worth buying and would serve the purpose or not.

Commercial Liability Insurance

This is so important to towing business survival as it provides coverage, protections, and insurance against sudden damage or accidents involving either the client’s car or your tow truck. The minimum required coverage as spelled out by the state should be provided or made available and costs should be prepared from your annual towing business income.

Here is how to start a towing company.

TOW TRUCK BUSINESS PLAN EXAMPLE

Here, I will be sharing a sample of how a tow truck business plan should look like. It is expected that you already understand how the business is operated so I don’t need to go into that.

One of the very important documents of all businesses is the business plan which should not be taken for granted when you are about to launch your business.

Business Name: Safe Towing Truck Services

• Business Overview
• Executive Summary
• Products and Services
• Vision Statement
• Mission Statement
• Target Market
• Competitive Analysis

BUSINESS OVERVIEW

A tow truck is also known as a recovery vehicle or wrecker that is used to move broken down vehicles, improperly parked or damaged vehicles away from the road to avoid obstruction of traffic. Tow truck companies also include incidental services in their services such as emergency road repair services and storage for profit maximization.

Reports have shown that over five years, the age of vehicles and the number of vehicles on roads has increased making the number of repairs and towing services increase. The fact that the higher the number of vehicles the higher the need for towing services is very true.

Therefore, the towing industry is a successful and thriving industry in the world, it is one of the major sectors of the economy and is responsible for the employment of a large number of people including staff members and professional drivers.

Starting and managing a tow truck business can be challenging and tasking but at the same time rewarding. The business is open for both aspiring entrepreneurs and big-time investors.

EXECUTIVE SUMMARY

Safe Towing Truck Services is a towing truck company based in South Dakota. This is a standard towing truck business that will provide essential services in South Dakota and United States as a whole by moving broken down, indisposed and improperly parked cars away from the road to avoid obstructing the free flow of traffic and also town both light and heavy vehicles over long and short distances depending on the agreement.

The company’s services will focus majorly on the following cities: South Dakota, Memphis, Chicago, St. Louis, North Dakota, Western Kentucky, Tennessee, Nashville, Evansville, and Missouri.

The business as already being registered and licensed. All licenses and permits required to operate in the United States have been secured and we will ensure that all rules and regulations guiding the industry are obeyed.

The goal of the business is to become one of the leading towing truck company within the first few years of operation.

This is a family business owned by David Steve and his immediate family.

PRODUCTS AND SERVICES

The company is determined and set to deliver brilliant services to customers by helping them move their broken-down vehicles from one place to another. This is because we want to be known and seen as a company that has its clients at heart.

The following are the products and services that will be offered to customers:

• Towing of motor vehicles
• Emergency road repair of vehicles
• Towing of trucks
• Towing of light-duty truck
• Towing of a passenger car towing
• Motor vehicles wrecking services
• Roadside assistance services

VISION STATEMENT The vision statement of the company is to become one of the leading and best companies whenever people are talking about tow truck companies and their services in the whole of the United States.

MISSION STATEMENT

Safe Towing Truck Services’ mission is to have the best and very reliable towing truck drivers to boast of and also to establish a towing truck company that will operate well in the whole of the U.S.

BUSINESS STRUCTURE

Safe Towing Truck Services’ business structure will be designed in a way that both full time and part-time employees will be able to work there. The company intends to start the company with many full-time employees and qualified truck drivers. There will also be adequate provision and packages for full-time employees.

Below is the business structure of the company:

• Chief Operating Officer
• Admin and H.R Manager
• Transport Manager
• Sales and Marketing Manager
• Professional Towing Truck Drivers
• Customers Service Executive/ Front Desk Officer

TARGET MARKET

The target market of the company majorly is transportation and haulage companies and every individual with cars in the United States. The towing will be done within short distances and long distances, that is, both intra and interstate.

The company has a list of people and organizations that we intend to do business with and they are:

• Vehicle Owners
• Haulage Companies and
• Transportation Companies.

COMPETITIVE ANALYSIS

We are fully aware of the fact that the towing industry is highly competitive and the company is ready to compete with other players in the towing industry favorably. The major competitive advantage we have is the industry experience, good business structure and solid reputation of our owner, David Steve who happens to have adequate knowledge about the industry.

Also, some of the basic factors that will give our company a competitive advantage are: good network, honesty, trust, excellent relationship with customers, direct access to major highways, and having a well-qualified and trained management team.

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Towing Business Plan Template & Guidebook

If you're looking to start or grow your towing business, having a comprehensive business plan can be invaluable. The #1 Towing Business Plan Template & Guidebook offers a comprehensive and easy-to-follow outline for entrepreneurs looking to launch their own towing enterprise. This guidebook provides helpful tips, actionable strategies, and key insights into creating a successful towing business that can stand the test of time.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Towing Business [11 Steps]

How to Write a Towing Business Plan in 7 Steps:

1. describe the purpose of your towing business..

The first step to writing your business plan is to describe the purpose of your towing business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a towing business:

Our mission at ABC Towing is to provide fast, reliable, and professional towing services at a fair price for our customers across the Greater New York City region. We will strive to deliver exceptional customer service and be recognized as the premier provider of towing services in our local community.

2. Products & Services Offered by Your Towing Business.

The next step is to outline your products and services for your towing business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your towing business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your towing business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your towing business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a towing business?

Equipment needed to run a towing business can include:

• Tie-down straps and/or chains
• Winches or winch bars
• Wheel lift bars and attachments
• Lights, sirens and radios for communication
• Safety triangles and cones

Supplies needed to run a towing business can include:

• Replacement oil, antifreeze, and other fluids for towed vehicles
• Spare fuses, light bulbs, fuel filters, and other parts as needed for repairs on a tow truck or towed vehicle

Permits needed to run a towing business can vary depending on the locality in which the business is based. Common permits are auto-towing permits, business licenses, occupancy permits, signs permits, vehicle confiscation permits, etc.

5. Management & Organization of Your Towing Business.

The second part of your towing business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your towing business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Towing Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a towing business varies based on many different variables, but below are a few different types of startup costs for a towing business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your towing business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your towing business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your towing business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Towing Business Plans:

Why do you need a business plan for a towing business.

A business plan is essential for any business that wants to organize and clarify their strategy, objectives, and the resources needed to achieve them. A business plan for a towing business should include an overview of the current market trends, a description of the services you will offer, an identification of your target customers, an analysis of potential competitors, financial projections and capital requirements. The plan should also outline your unique selling points and how you intend to manage and grow the business.

Who should you ask for help with your towing business plan?

It may be beneficial to consult a business advisor, accountant, lawyer, or other professionals who have experience creating and managing business plans. They will be able to provide detailed advice and resources to help you create a successful towing business plan.

Can you write a towing business plan yourself?

Yes, it is possible to write a towing business plan yourself. Writing a business plan is not difficult and you can choose the format that best suits your needs. It should include an executive summary, market analysis, industry research, competitor analysis, marketing plan, operations plan and financial projections. Once you have completed these sections your plan should be ready to present to potential investors or lenders.

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Tow Truck Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Automotive Industry » Tow Truck

Are you about starting a tow truck business ? If YES, here is a complete sample tow truck business plan template & feasibility report you can use for FREE .

Tow trucks basically help in towing broken down vehicles on the highway or from one location to another location as agreed. With this type of business, all you need to do is to polish your driving skills, learn the billing administration in the industry, register the business, join the appropriate union and then go all out there to market and promote your services.

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A Sample Tow Truck Business Plan Template

1. industry overview.

A tow truck which is also known as a wrecker, a breakdown truck, recovery vehicle or a breakdown lorry is a truck that is used to move broken down, improperly parked, impounded, or otherwise indisposed motor vehicles away from to the road so as to avoid obstruction of free flow of traffic.

Companies in the Automobile Towing are responsible for towing light or heavy motor vehicles over short and long distances. As a way of earning additional income and improving revenues, players in this industry may also provide incidental services, such as storage and emergency road repair services et al.

In the united states, automobile towing trucks, large trucks and buses drivers require a commercial driver’s license (CDL) before they can be permitted to operate. The activities in the towing truck industry is regulated by the United States Department of Transportation (USDOT), the Federal Motor Carrier Safety Administration (FMCSA) and the Federal Highway Administration (FHWA).

They ensure that drivers and towing truck companies adhere to safety rules and regulations and also that potential towing truck drivers undergo special training on how to handle large vehicle before applying and obtaining their commercial driver’s license (CDL).

A report published by IBISWORLD shows that, over the five years to 2016, revenue for the Automobile Towing industry has grown, due to improving economic conditions, particularly at the consumer level. In addition, the average age of vehicles on the road increased, resulting in more repairs and towing services. The report also stated that in the five years to 2022, revenue for the industry is expected to trend higher.

As the economy continues to rebound, disposable income rises and more people go back to work, roads will become more crowded. The more cars on the road, the more likely towing companies will attend to vehicle issues because it will definitely crop up.

The Automobile Towing Industry is indeed a very thriving industry in most countries of the world. It is a major sector of the economy of the United States and it generates a whooping sum of well over $6 billion annually from more than 34,479 registered and licensed automobile towing truck companies scattered all around the United States of America.

The industry is responsible for the employment of well over 81,670 people (professional drivers and administrative staff members). Experts project the industry to grow at a 1.3 percent annual rate from 2011 to 2016. There is no establishment in this industry that has a dominant market share in the United States.

No doubt starting and operating a towing truck business can be financially tasking and challenging, but the truth is that it can be rewarding at the same time. One good thing about the industry is that it is open for both big time investors who have the capacity to start the business with fleet of towing trucks and aspiring entrepreneurs who may one to start with just one towing truck.

2. Executive Summary

Safe Haven® Towing Truck Services, LLC is a standard registered and licensed towing truck company that will be based in 8009 ND Highway 26 Belle Fourche – South Dakota.

We will provide essential services to the United States economy by move broken down, improperly parked, impounded, or otherwise indisposed motor vehicles away from to the road so as to avoid obstruction of free flow of traffic; towing light or heavy motor vehicles over short and long distances.

Our services and operations will center around highways in an around South Dakota, North Dakota, Southern Illinois; St Louis, Missouri; Southeast Missouri; Evansville, IN; Nashville, Tennessee; Memphis, Western Kentucky, Tennessee and Chicago land areas et al.

Safe Haven® Towing Truck Services, LLC has been able to secure all the relevant license and permits to operate throughout the United States. We will ensure that we abide by the rules and regulations guiding the automobile towing industry and we will only hire experienced and qualified drivers with valid commercial driver’s license (CDL).

At Safe Haven® Towing Truck Services, LLC, our clients’ overall best interest would always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we put standard structures and processes in place that will enable us meet and surpass our business goals and also stay highly competitive in the industry.

Our customers and potential customers alike can be rest assured that they will get quality services at competitive rates when they hire our services. We will go the extra mile to ensure the safety of vehicles under our care and our customers get value for their money.

At Safe Haven® Towing Truck Services, LLC our goal is to provide excellent towing truck service to our customers and we pride ourselves on the integrity and competence of our company and our employees. Safe Haven® Towing Truck Services, LLC will ensure that all our deliveries are on time and we supersede the expectation of our customers.

We will only put towing trucks that are in top shape on the road, and all our towing truck drivers will be trained to be courteous, friendly and to abide by the rules and regulations of the industry. We will maintain and take proper care of all our towing truck drivers as well as our towing trucks and equipment.

Safe Haven® Towing Truck Services, LLC will at all times demonstrate her commitment to sustainability, both individually and as a pet sitting services business, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our clients’ needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Our overall business goal is to position Safe Haven® Towing Truck Services, LLC to become one of the leading towing truck company brands in the United States of America within the first 5 years of operations.

This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are enthusiastic and confident that South Dakota is the right place to launch our towing truck business.

Safe Haven® Towing Truck Services, LLC is a family business; it is owned by Casey Hartford and his immediate family. Casey Hartford has a Diploma in Transport and Logistics with well over 10 years of hands on experience working for some of the leading brands in the United States of America.

3. Our Products and Services

Safe Haven® Towing Truck Services, LCC is a company that looks forward to deliver excellent services in terms of helping our customers move their broken down vehicles from one destination to another destination. We want to be known as the towing truck company that truly cares for her customers.

Our intention of starting our towing truck company is to favorable compete in the industry and of course to make profits from the industry and we will do all that is permitted by the law in the United States of America to achieve our aim and business goal. Our business offering are listed below;

• Emergency road repair services
• Motor vehicle towing services
• Tow truck services
• Wrecking services for motor vehicles
• Passenger car towing services
• Light duty truck towing services
• Roadside assistance services

4. Our Mission and Vision Statement

• Our Vision is to become one of the preferred choices when it comes to the demand for towing truck services in the whole of the United States of America.
• Our mission is to ensure that we build a towing truck company that will operate in the whole of the United States of America; a company that will boast of having some of the best and reliable towing truck drivers in the whole of the United States of America.

Our Business Structure

At Safe Haven® Towing Truck Services, LLC, our business structure will be designed in such a way that it can accommodate but full – time employees and part – time / contract staff; those who just want to take some time off to generate additional incomes.

We intend starting our towing trucking company with a handful of full time employees (professional towing truck drivers and back office staff) and some of the available towing truck driving roles fill be handled by qualified contract truck drivers.

Adequate provision and competitive packages has been prepared for all our full – time employees. As a means of maximizing operational cost, we will contract the maintenance of all our towing trucks to service provider, we don’t intend to maintain a very large overhead from the onset.

But as soon as the business grow and stabilize, we will assemble our own professional in – house maintenance team. Below are the business structure and the roles that will be available at Safe Haven® Towing Truck Services, LLC;

• Chief Operating Officer (Owner)

Admin and HR Manager

Transport and Logistics Manager

Sales and Marketing Manager

• Professional Towing Truck Drivers
• Client Service Executive / Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversee the smooth running of the daily office activities.
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Responsible for coordinating towing truck drivers
• Responsible for operating IT systems for the organization
• Responsible for negotiating and agreeing contracts for the organization
• Responsible for developing and confirming schedules
• Responsible for planning for and negotiating technical difficulties
• Responsible for preparing paperwork for regulatory bodies
• Responsible for liaising and managing staff
• Responsible for implementing health and safety standards
• Handles the planning routes and load scheduling for multi-drop deliveries.
• Handles booking in deliveries and liaising with customers.
• In charge of allocating and recording resources and movements on the transport planning system.
• Responsible for communicating effectively with clients and responding to their requirements.
• In charge of directing all transportation activities.
• Responsible for developing transportation relationships.
• Responsible for monitoring transport costs.
• In charge of negotiating and bargaining transportation prices.
• Responsible for dealing with the effects of congestion.
• Responsible for confronting climate change issues by implementing transport strategies and monitoring an organization’s carbon footprint.
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managers with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Tow Truck Drivers

• Drives towing trucks
• Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
• Keeps a record of vehicle inspections and make sure the towing truck is equipped with safety equipment, such as hazardous material placards.
• Assists the transport and logistics manager in planning their route according to a delivery schedule.
• Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
• Complies with towing truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
• Collects and verify delivery instructions
• Reports defects, accidents or violations

Client Service Executive

• Welcomes / receive clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with parents and students on the phone, uses every opportunity to build clients’ interest in the organizations’ products and services
• Manages administrative duties assigned by the HR and Admin Manager or Transport & Logistic Manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
• Receives parcels / documents for Safe Haven® Towing Truck Services, LCC Distribute mails in the organization
• Handles any other duties as assigned by HR and Admin Manager or Transport & Logistic Manager.

6. SWOT Analysis

Our intention of starting Safe Haven® Towing Truck Services, LCC in South Dakota with operations center around major highways in an around South Dakota, North Dakota, Southern Illinois; St Louis, Missouri; Southeast Missouri; Evansville, IN; Nashville, Tennessee; Memphis, Western Kentucky, Tennessee and Chicago land areas et al is to test run the business for a period of 3 to 6 months to know if we will invest more money, and expand the business all around in the United States of America.

We are quite aware that there are several towing truck businesses all over the United States and even in the same locations where we intend starting ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be well – equipped to confront our threats.

Safe Haven® Towing Truck Services, LCC employed the services of an expert HR and Business Analyst with bias in start – ups to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Safe Haven® Towing Truck Services, LCC;

Our strength are highly qualified and experienced management team, robust fleet operations, direct access to all Atlantic and Gulf Coast ports, our towing truck transportation network serves covers some of the largest population centers and highways in the U.S., size advantages, cost advantages, supply chain, customer loyalty and strong reputation amongst domestic industry players will surely count as a strength for Safe Haven® Towing Truck Services, LLC.

Our weakness could be lack of finance, high debt burden, cost structure, lack of scale compared to our peers who have already gained ground in the automobile towing industry.

• Opportunities:

The opportunities that are available to us as a towing truck company operating in the United States of America are online market, new services, new technology, and of course the opening of new markets within our target locations. In addition, as the average age of vehicles on the road increased, it will surely result to more repairs and towing services.

Some of the threats that we are likely going to face are mature markets, bad economy (economy downturn), stiff competition, volatile costs, and rising fuel prices. Basically, just like any other business, one of the major threats that we are likely going to face is economic downturn.

It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a towing truck company in same location where ours is located. unfavorable government policies can also pose a major threat to businesses such as ours.

7. MARKET ANALYSIS

• Market Trends

The market trends as it involves the automobile towing industry especially in the United States of America and Canada is indeed dynamic and at the same time highly competitive and challenging.

But one thing is certain, once a towing truck company can gain credibility; it will be much easier for the company to secure permanent deals / contracts with big time merchants and haulage / transportation companies who are always moving goods and equipment from one part of The United States of America to another part.

No doubt some of the major factors that counts positively in this line of business are trust, honesty, good relationship management and of course timely and safe delivery.

The advancement in technology in areas such as computers, satellite communication, and the internet, has contributed immensely to the growth of the automobile towing industry. The advancement in technology is responsible for increase of productivity of towing truck companies operations, it helps them effectively monitor their towing trucks and their drivers and it helps driver save time and effort.

Lastly, another common trend in this industry is that once a towing truck company has gained credibility, it is easier for them to go for brand new towing trucks on a long term leasing contract as against making use of second hand towing trucks which are usually expensive to maintain due to constant wear and tears of essential parts of the towing truck.

8. Our Target Market

Our target market is basically transportation and haulage companies and of course every individual we own cars throughout the United States of America. We cover both short distance (inter states) and long distance (intra states).

To move broken down, improperly parked, impounded, or otherwise indisposed motor vehicles away from to the road so as to avoid obstruction of free flow of traffic; towing light or heavy motor vehicles over short and long distances.

In other words, our target market is the whole of the United States of America and below is a list of the people and organizations that we have plans to do business with;

• Vehicle owners
• Transportation companies
• Haulage companies

Our competitive advantage

We are aware of the competitive nature of the automobile towing industry and we are ready to get into the mix and favorably compete with players in the industry. Our major competitive advantage is the vast industry experience and solid reputation of our owner, Casey Hartford and our management team.

Safe Haven® Towing Truck Services, LLC no doubt is a new towing truck company, which is why we took our time to do a thorough market research and feasibility studies before launching the business. We were able to highlight some factors that will give us competitive advantage in the marketplace.

Some of the factors are trust, honesty, good network and excellent relationship management, well – qualified and experienced management team, robust fleet operations, direct access to all major highways, our trucking transportation network serves some of the largest population centers and construction sites in the United States of America and Canada, our size advantages, cost advantages, customer loyalty and strong reputation amongst domestic industry players.

Lastly, our employees ( tow truck drivers and back office staff members ) will be well taken care of, and their welfare package will be among the best within our category ( startups tow truck companies in the United States ) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Safe Haven® Towing Truck Services, LLC will ensure that we leverage on our strength and the opportunities available to us in the U.S. and Canada market to generate enough income that will help us drive the business to stability. We will go all the way to explore every available sources of income in the automobile towing industry.

Below are the sources we intend exploring to generate income for Safe Haven® Towing Truck Services, LLC;

10. Sales Forecast

One thing is certain, there would always be vehicle owners, haulage and transportation companies who would need the services of towing truck companies to help them move their broken down vehicles from one location to another throughout the United States of America.

We are well positioned to take on the available market in the United States of America and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our business and our clientele base.

We have been able to critically examine the automobile towing industry market in the United States of America and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in The United States of America.

Below are the sales projection forsake Haven® Towing Truck Services, LLC, it is based on the location of our towing truck company and of course the wide range of services that we will be offering;

• First Fiscal Year-: $250,000
• Second Fiscal Year-: $550,000
• Third Fiscal Year-: $900,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. So also, there won’t be any major competitor ( towing truck company ) offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

No doubt, networking is an effective way to begin building your client base as a business man or woman and we have plans in place to leverage on all our networks. In view of that, we will look out for gatherings where we can network with vehicle owners, transport and haulage companies and merchants et al.

As a matter of fact, our first port of call will be to connect with the nearest Chamber of Commerce; we are likely going to get our first major deal from them. At Safe Haven® Towing Truck Services, LLC all our employees will be directly or indirectly involved in sales and marketing of our services.

We will create provision for our employees to earn commission when they bring in business for the organization. We will also encourage freelancers to work with us; whenever they refer clients to us they will earn a percentage of the deal as agreed by both parties.

Lastly, we will leverage on the power of the media by advertising our services using both online and offline platforms. We will work hard to ensure that get repeated business from any business deal we execute and also we will encourage our customers to help us refer their friends to us. Part of our strategy is to reward loyal customers and to leverage on word of mouth marketing from satisfied customers.

Over and above, we have perfected strategies to network with people who are likely to refer business our way on a regular basis. In summary, Safe Haven® Towing Truck Services, LLC will adopt the following sales and marketing strategies in sourcing for clients for our business;

• Introduce our business by sending introductory letters alongside our brochure to households, corporate organizations, businesses in the transportation and haulage industry and related industries in South Dakota and throughout the United States.
• Print handbills about our towing truck business and its locations and drop them in public facilities.
• Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get our message across, so that those on the social media or those who read blogs can know where to go when they need the services of a towing truck company
• Creating a basic website for our business, so as to give our business an online presence
• Directly market our towing truck business.
• Join local towing truck cum trucking associations and chambers of commerce for industry trends and tips
• Provide discount days for our customers
• Advertise our business in community based newspapers, local TV and radio stations
• List our business on yellow pages ads (local directories)
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Despite the fact that our towing truck company will be well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our business.

Safe Haven® Towing Truck Services, LLC has a long term plan of covering various locations in major cities in the United States which is why we will deliberately build our brand to be well accepted on highways in an around South Dakota, North Dakota, Southern Illinois; St Louis, Missouri; Southeast Missouri; Evansville, IN; Nashville, Tennessee; Memphis, Western Kentucky, Tennessee and Chicago land areas et al before venturing out to other cities in the United States of America.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Safe Haven® Towing Truck Services, LLC;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
• Install our Bill Boards on strategic locations all around South Dakota
• Engage in road show from time to time
• Distribute our fliers and handbills in target areas
• Position our Flexi Banners at strategic positions in the location where our photo booths are located.
• Ensure that all our workers wear our branded shirts and all our dump trucks are well branded with our company’s logo et al.

12. Our Pricing Strategy

Safe Haven® Towing Truck Services, LLC has a lease arrangement with various companies and the company’s pricing is based on miles per vehicle moved. We have perfected our plans to charge competitive rates since we have minimal full – time overhead compared to our competition in the industry.

We will ensure that we leverage on price to win over customers; our prices will be affordable and negotiable. The fact that our business door is open to both individuals and corporation organizations means that we will have different price range for different category of clients. As the business grows, we will continue to review our pricing system to accommodate a wide range of clientele.

• Payment Options

At Safe Haven® Towing Truck Services, LLC, our payment policy will be inclusive because we are quite aware that different people prefer different payment options as it suits them but at the same time, we will not accept payment by cash because of the volume of cash that will be involved in most of our transactions. Here are the payment options that Safe Haven® Towing Truck Services, LLC will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards / Point of Sale Machines (POS Machines)
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our services.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a towing truck company; it might differ in other countries due to the value of their money.

When it comes to starting a towing truck company the major areas that you look towards spending the bulk of your cash is in the purchase of standard towing trucks and of course renting or leasing a well located facility / yard large enough to accommodate your fleets of towing trucks.

Aside from that, you are not expected to spend much except for paying of your employees, maintaining your towing trucks and fueling. These are the key areas where we will spend our start – up capital;

• The Total Fee for incorporating the Business in the United States of America – $750.
• The budget for Liability insurance, permits and license – $2,500
• The Amount needed to acquire a suitable Office facility with enough parking space for our trucks in South Dakota for 6 months (Re – Construction of the facility inclusive) – $40,000 .
• The amount required to finance the purchase of the first set of towing trucks – $800,000
• The Cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $5,000
• Cost of accounting software, CRM software and Payroll Software – $3,000
• Other start-up expenses including stationery – $1000
• Phone and Utilities (gas, sewer, water and electric) deposits – ( $3,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
• The cost of launching our official Website – $600
• The Amount needed to pay staff for the first 2 months – $20,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500

Going by the report from our market research and feasibility studies, we will need an estimate of $1.2 Million to set up a standard towing truck company in South Dakota.

Generating Funds / Startup Capital for Safe Haven® Towing Truck Services, LLC

Safe Haven® Towing Truck Services, LLC is a family business that will be owned and managed by Casey Hartford and his immediate family. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $400,000 ( Personal savings $350,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $800,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of any business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Safe Haven® Towing Truck Services, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to engage in affordable, timely, safe and efficient towing services at all times.

Safe Haven® Towing Truck Services, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Acquiring of towing trucks and relevant equipment: In progress
• Leasing of Office Facility / Yard large enough in South Dakota: Completed
• Conducting Feasibility Studies: Completed
• Start – up Capital Generation: Completed
• writing of business plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees and drivers: In Progress
• Purchase of the Needed furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with key players in the industry (networking and membership of relevant organizations and chambers of commerce): Completed

Tow Truck Business Package

$ 842.00 $842.00

Product Code: 107

Product Description:

The plan Is for you to operate within the State.

Drug program and drivers files come with this purchase

The hazmat filing is included with this filing.

It is crucial to prove that your tow truck company has what it takes to succeed.

For example, do you plan to assist consumers, trucking companies, or law enforcement?

What Are Business Plans Package?

Are you in need of a tow truck business plan.

Get International! If so, please read below to learn the basics of creating a tow truck business plan. You can also use this page to order a complete sample template for your new company. If you have any questions, please give our organization a phone call. For more information read about it BOC-3 Filing .  

What Are Business Plans?

Think of a business plan as a snapshot of how your new business functions. But do not only think about the present. Your plan should illustrate how your tow truck business will grow in five years. The plan must also explain the business goals of your company.

What are the essential steps for launching a tow truck business?

We recommend that your plan should feature market research. Why? Because market research is a superb tool for giving a plan support. Visit our website, New DOT Authority Package.  

Why Do I Need To Have a Business Plan?

Are you considering starting a tow truck or truck business? Or, do you want to grow your current business? Either way, it is best to use a business plan. The main reason is that a plan can help you secure funding. Plus, you can plan out how you will grow the company using tow trucks. Without question, a plan boosts the chances of business success. Visit on link Driver Qualification Files.  

How To Request the DOT PIN Number

Do not think of the plan as complete. Instead, a business plan functions as a living document. That's why we recommend that you update your plan on an annual basis. Or, you can change the plan as the company grows. After all, you will need a revised plan when your company operates dozens of trucks. It's about the website DOT Compliant Drug & Alcohol Program.

Why did I open up a business for towing ?

What are sources of funding.

MC Number Insurance Requirements It is crucial for you to understand the sources of funding for tow truck businesses. There are four main sources of funding for truck companies. They are credit cards, angel investors, bank loans, and personal savings. Say that you plan on using bank loans at your business. Extra information The Basics of Farm Exemptions.

Banks will need to review the business plan of your company.

New York Highway Use Tax Registration  This way, they will have confidence that you can repay the loans and interest. That is a prime example of why having a professional plan is so crucial. Say that you do not bring a business plan to a meeting at a bank. The bank will not have confidence that you can operate your new business with success. Besides loans, you can also use your personal savings to buy trucks. For more information read about it How to Obtain your MC   

A financial plan should feature a five year final statement

How do i write a business plan for my new towing company.

DOT Number in California Writing a business plan for a new towing business is not that complicated. The key is to go step by step based on the samples below. If you have questions about one of our samples, please contact us. We have included details about what goes inside each section. This way, you can fill in information based on your own unique business. Visit on our website MCS-150 Update  

The Executive Summary

FMCSA Hours of Service Suspended Almost every business plan in the transportation sector begins with an executive summary. The summary provides an introduction of what your plan will involve. This will give each reader a sample of what is to come in the document. Do not write this section first. Instead, save it for last. Why? So that you can include all information from your plan within the summary. Otherwise, the reader would not receive a fair sample of what’s to come. Visit on link Full Motor Carrier Authority  

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Vice President of an interstate carrier

What are some cost-effective approaches to starting a towing business with a tow truck?

The goal of the executive summary is to get the reader 100 percent engaged.

The Basics of Farm Exemptions Begin by explaining the type of towing or trucking business you're operating. If you're opening a towing startup, do not hide this fact from the reader. State how you plan on growing the truck company. Say that you're already operating in different markets. Write what those markets are. It’s now time to include an overview of the following sections of the business plan. For details FMCSA Hours of Service Suspended.

You could begin by providing an overview of the US tow truck industry.

Will you have competitors? Of course you will. So, go ahead and list the towing competitors. Then provide an overview of who your target customers are.

Conclude the section with a sample of your financial plan.

You might also want to list the key plays of your towing business. It's about website Starting a Trucking Company Correctly  

Analysis of Your Company

This section focuses on detailing the type of towing business you will operate. Here are the three most common types of companies in the towing industry. First, there are passenger car tow trucks. This type of business will tow cars that have broken down on the side of the road. The business will also tow cars that get impounded. There is also the commercial vehicle tow truck.

This truck will only tow heavy machinery or trucks. The third major type of towing business is one that features specialized tow trucks. One of these trucks will tow special vehicles, like classic or exotic cars. For more information read about it Texas DOT Number  

Your analysis section must also feature background information about your new business.

DOT Clearinghouse   Answer questions like these. Why did I open up a business for towing? What business milestones have I achieved in the past? What is the legal structure of my company? Is the business incorporated as an LLC, S-Corp, or a sole proprietorship? Do not despair if you get stuck at this section of the plan, or any other section. You can contact our organization to download a business plan template or sample. This way, you will have more information about how to create an ideal plan. Visit on our website Trucking Operating Packages

Analysis of Your Industry

DOT SAP Program  The industry analysis section should feature an overview of the local towing industry. Why? Because the information in this section will educate both yourself and the reader. After all, you need to understand the market where you're operating services. Also, market research will help you develop a better strategy for your business. You want to showcase that you're an expert in the United States towing industry. Visit on link Unified Carrier Registration  

Analysis of Your Customers

Get FMCSA Trucking Authority This section focuses on detailing the types of customers that you want to serve. For example, do you plan to assist consumers, trucking companies, or law enforcement? The answer will impact how you set up your business. Detail your target customers based on demographic profiles. Discuss their ages, locations, genders, and income levels. What do your customers want from your towing services? What do they need? How will you attract and keep the customers? It's about the website USDOT Number Registration .  

Competitive Analysis

This section focuses on direct and indirect competitors that your company will face. A direct competitor is another tow trucking company. An indirect competitor is a customer alternative to any tow truck business. Profile the tow trucks that your direct competitors will use. Then, write down the locations of your nearest business competitors. Chances are, our competitors are only a few miles down the road. Next, document the strengths and weaknesses of each competitor. Conclude this section by stating how you intend to outperform the competitors. For more information, read about it: What Is IRP or Apportioned Registration?  

The Marketing Plan

Are you familiar with the four P’s of every business marketing plan? If not, they are: price, promotion, place, and product. Your marketing plan should feature the prices of services and potential promotions. It must also reference the location (place) of the services.

The product section should reference what you wrote in the competitive analysis section.

Get specific in your marketing plan. You want to show off that you know how to boost ROI and profit margins. List ideas, like commercials/social media ads, that you think can attract customers. Visit on our website How to Prepare for Compliance DOT Audit  

Plan of Operations

You already inserted your business goals into your plan. It’s now time to describe how you will make those goals become a reality. Consider dividing the plan of operations into two sections. The first section should focus on short-term processes.  

Meanwhile the long-term goals section can go years into the future.

Short-term processes include providing towing, answering phones, and billing people. Long-term goals focus on reaching X in revenue by certain dates. Do you want to expand your business into other cities in the future? If so, you can mention this in your plan. Visit on link FMCSA Registration Regulations Service  

Your Management Team

It is crucial to prove that your tow truck company has what it takes to succeed. That’s why you should feature a strong management team in this section. Go over the backgrounds and skills of every key player.

These are the people who will help your company grow.

The team members should have experience in managing tow vehicles/trucks. Highlight significant accomplishments associated with every key player. It's about website Get FMCSA Trucking Authority, MC Number  

The Financial Plan

How to Prepare for Compliance DOT Audit A financial plan should feature a five year final statement. You can break down the statement into month-by-month or quarter-by-quarter plans. Feature an income statement, cash flow statement, and balance sheet. If you have questions about this criteria, please contact our organization. We can walk you through any step in drafting your tow operation plan.  

What Is IRP End your business plan with a simple but persuasive summary. Illustrate why your new company will stand out from the competition. Remember, there are different templates for drafting a business plan. Please let our organization know if you would like to receive a sample template. We can provide a sample template for every section of your plan.

Our mission is to help you launch and grow a first-rate tow truck service.

All you have to do is send our team a message. It can only say, “tow truck business plan sample Google Docs.” We’ll then know to send the plan through your Google account. Or, your message can say, “tow truck company business plan sample.” Our team will then send a sample template PDF to your email. Visit on our website DOT Clearinghouse Enforcement  

Our experts have provided all sorts of sample business plans to our customers.

For example, we created a food truck business plan for one single customer. This way, the plan was more specific than a standard trucking business plan. The food truck customer could not find enough information online. He had googled “how to write a business plan for a food truck.” But he could not find what he needed.

All you've got to do is tell us about the type of business plan template that you need.

For example, you might need a general freight trucking business plan. Or, even a business plan for food truck. If the latter is the case, we can send you a food truck business plan sample. Now, say that you're starting a box truck company. Our experts will then send out a box truck business plan. We will send it as a box truck business plan PDF.

We know that making business plan for trucking company can seem overwhelming.

That is why we provide business plan sample for trucking company services. Sure, we could send you a food truck business plan template.  

But we also have templates for all other common types of trucking professions.

No matter your business plan needs, we’ll help you find the right solution. It’s that simple. For more information read about it  DOT Week 2021  

If you're looking for a business opportunity that is always in demand, look no further than the tow truck industry.

How To Pass Dot Drug Test People will always need help getting their cars out of ditches and off of bridges, and there's plenty of money to be made in this field. However, starting and running a tow truck business isn't easy. There's a lot of knowledge and knowhow required to be successful. At fmcsaregistration.com. we'll discuss some of the key things you need to know about the tow truck industry. We'll also provide some tips for starting your own tow truck business. More information  IFTA Sticker - Get International.  

How big is the tow truck industry?

The tow truck industry is a $700 million industry in the United States alone. The majority of tow truck businesses are small, family-owned operations. However, there is room for large, national companies in this industry as well. Additional information Top 3 DOT Violations . 

The most important thing to remember when starting a tow truck business is that safety comes first.

You need to have the proper insurance in place to protect yourself, your employees, and your customers. You also need to make sure that your tow trucks are well-maintained and that your drivers are properly trained. More information How To Request the DOT PIN Number .

Another key thing to remember about the tow truck industry is that customer service is essential.

Your customers will be relying on you to help them in their time of need. You need to be able to provide them with the service they expect and deserve. Extra information  MC Number Insurance Requirements.

If you're thinking about starting a tow truck business, there's a lot to consider.

However, if you have the knowledge and knowhow, it can be a very successful venture. With some hard work and dedication, you can build a successful tow truck business. Just remember to always put safety first and to provide excellent customer service. Click here to discover  New York Highway Use Tax Registration.

Do You Need Help Drafting Your Plan? Call Us Now

Please give us a call right now for help drafting your tow truck operation plan.

We can begin by providing you with a tow truck business plan sample PDF. This sample of business plan for towing truck company gets results. It can help any professional create a successful company. You're also welcome to email or message our organization at any moment. To learn more check the link below DOT Number in California .

We look forward to helping you succeed. 

Visit on our website  IFTA Sticker Registration

Why Choose us?

*we can get you a dot number extremely quickly . * we will handle your operating authority needs with class and respect. * we can take less than an hour to do some fmcsa filings. * we're here for people who need quick solutions when their fmsca or gov registration needs filed with government agencies like transportation security administration (tsa). * we have world-class customer service. *we’re ready to prove so through our first-rate resources and professionalism. .

Written by Scott Kester Published on May 31, 2022, 2:06 a.m.

Lillian A Cable

June 3, 2022, 2:40 a.m.

FMCSA help us in starting a tow truck business, plan made by them is excellent. Call FMCSA if your company operates dozens of trucks. We recommend them 100% !!

David Rossi

July 20, 2022, 4:11 a.m.

When it comes to starting a new trucking company, we know just who you should call. FMCSA has made an excellent plan for your business and will help get the ball rolling with all of its needs in one package!

John S. Whited

Sept. 14, 2022, 12:46 a.m.

FMCSA has been a great help to me. I started my own tow truck business and their plan is excellent! If you are looking for someone who can provide quality services, then FMS C A should be your first choice--no question about it!!!

Anne W. Colvin

Oct. 31, 2022, 12:47 a.m.

The FMCSA Tow Truck Business plan is excellent and we are happy with their help. If your company operates dozens of tow trucks, then this agency will be able to assist you in starting a successful business venture!

Marilyn T. Ball

Nov. 11, 2022, 1:55 a.m.

FMCSA has everything you need to start your own trucking company, with one package! When it comes time for starting a new venture into the world of transportation management services our team is here at FMSCA ready. We know just who should call us and will be able provide guidance on how best get things moving in order so they can thrive long term as well

William N. Cornelius

Feb. 20, 2023, 11:10 p.m.

With the help of FMCSA's comprehensive tow truck business plan, your company can get one step closer to launching a successful venture with numerous vehicles. Take advantage of this fantastic opportunity and join dozens who have taken their businesses on the road!

Nelda J. Price

Feb. 20, 2023, 11:12 p.m.

FMCSA provides the full package to get your trucking business off the ground and running! Our experienced team is here for you when it's time to launch onto a successful path in transportation management services. Let us show you how our comprehensive support will give your venture long-term sustainability - we're ready anytime, so don't hesitate to reach out.

Shirley Charity

Feb. 22, 2023, 2:30 a.m.

I was worried about how to do Tow Truck Business and what things needed, then I came on this website for Tow Truck Business Package and found it very helpful. The support helps me fully in understanding everything and helped me in completing the application for me. Thank you so much guys!

John S. Hicks

March 1, 2023, 12:39 a.m.

FMCSA registration is crucial for starting a tow truck business and obtaining the necessary licenses and permits. It ensures compliance with regulations and enables interstate transportation. With the right registration and licensing, you can build a successful tow truck business. Highly recommended.

Miguel A. Peck

March 16, 2023, 1:46 a.m.

FMCSA registration is a necessary step for companies looking to operate a tow truck business in the United States. However, starting a successful tow truck business requires more than just FMCSA registration. It also requires a solid business plan, reliable equipment, and a strong understanding of the industry. By meeting FMCSA requirements and following best practices for the towing industry, businesses can establish themselves as trusted and reliable service providers.

Bruno M. Omalley

June 21, 2023, 12:22 a.m.

The tow truck business plan sample provided by FMCSA Registration was a valuable resource for me. It covered all the essential aspects and helped me structure my business plan effectively. Thank you for this useful tool!

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• National Politics

Springfield will revisit ideas for Kearney Street redevelopment, years after initial plan

Seven years ago, studies and community surveys showed a need for Kearney Street to be reimagined. Deteriorating and aging buildings and outdated curb cuts along the north Springfield corridor were preventing business owners and the city from capitalizing on the estimated $95 million in annual retail potential.

At the time, Springfieldians wanted to see more sit-down family restaurants, a larger focus on the street's Route 66 heritage and development of small, local boutique retail stores. While the corridor between Glenstone Avenue and Kansas Expressway has seen some progress since then, Director of Economic Vitality Amanda Ohlensehlen said much of the redevelopment has occurred on the "bookends" of the street and the redevelopment plan rolled out in 2018 has seen little use.

Seven projects completed, more left to do

The redevelopment plan approved in 2018 declared the area blighted and provided opportunity for investors to take advantage of tax abatement as an incentive. The goal of the plan was to remove blight, encourage redevelopment according to the then-current Vision 20/20 comprehensive plan and enhance safety and visual appearance.

Other than tax abatement, other available incentive programs included business development loans, business incentive loans and brownfields funding.

The plan established standards and design requirements, as well as some prohibited uses that were not eligible for tax abatement. Ohlensehlen said seven projects were completed under the 2018 plan, all but one of which were at the intersection of Kearney and Glenstone. They include:

• Glendalough Convention Center at the DoubleTree Hotel;
• A retail center that includes Echelon Coffee, an AT&T store and Crumbl Cookies at the former Buckingham's BBQ site;
• BigShots Golf, where Kmart used to be;
• A Chick-fil-A at the site of the former Springfield Inn;
• A Whataburger at the same site;
• Long Drive Center, a retail center adjacent to BigShots; and
• MMC Fencing & Railing at 1900 W. Kearney St.

Ohlensehlen said there could be several reasons the redevelopment plan was not used more broadly across the corridor — perhaps the guidelines were too vague or confusing or there was lack of public awareness, or tax abatement wasn't enough to make a investment worthwhile, or there was a lack of public investment in infrastructure.

Kearney Street falls under the Missouri Department of Transportation's purview, limiting what the city is able to do as far as infrastructure is concerned. Some improvements to the road are underway by MoDOT, and Mayor Ken McClure remained optimistic at Tuesday's Springfield City Council meeting that the anticipated improvement plans for Interstate 44 would prompt further work on Kearney.

Moving forward with a new plan, priorities

The 2018 redevelopment plan, which expired in 2023, required renewal every five years.

"We really feel that it's a good time to take a pause to potentially look at amending and re-adopting that plan," Ohlensehlen said at Tuesday's meeting.

The most immediate steps, she said, would be to update the blight report and create a new redevelopment plan that can both take into account the new Forward SGF comprehensive plan and implement updated public feedback. These could be covered with existing staff and resources in the Economic Vitality office. In the long term, Ohlensehlen suggested the corridor should be looked at as a part of the city's larger goal of beautifying corridors across the city while promoting public-private partnership investments as a way to expand the available portfolio of incentives behind redevelopment.

More: New year, new street: Where Springfield road projects stand and what will open in 2024

Councilwoman Monica Horton said she wants to see neighborhood planning be a part of the redevelopment considerations, particularly mentioning the Robberson neighborhood as one that could benefit from increased focus and reinvestment in the community after the recent closure of the Robberson Community School. Last week, the school board declared Robberson to be "surplus" property , clearing the way for it to be sold.

"We need some sort of neighborhood planning adjacent to this corridor that will allow for neighbors ... and businesses to engage in the planning of the entire ecosystem and not just the street," Horton said, noting that a park or community garden are top priorities for many residents of the neighborhood.

Marta Mieze covers local government at the News-Leader. Have feedback, tips or story ideas? Contact her at [email protected].

Once only the responsibility of sustainability managers, ESG performance and sustainability are today considered key areas of strategic focus for organizations, often reflected in Sustainability Action Plans developed by organizations.

Looming investor pressure, consumer awareness and the understanding that sustainability is an important tenet in risk management and corporate governance has seen responsibilities shift and awareness ripple across both departments and management levels. The tidal shift has been embraced by organizations as they champion decarbonization. It presents ever-growing opportunities for innovation and increased investments towards green technologies, which ultimately accelerate sustainability.

Much like operational plans are developed to future-proof an organization’s success, so too are Sustainability Action Plans in helping to achieve a low-carbon business fit for the future. In this article, we lay out practical guidance on how to create a Sustainability Action Plan along with recommended inclusions and structure. We also provide a free Sustainability Action Plan template for download to support your sustainability and environmental, social and governance (ESG) goals.

What is a Sustainability Action Plan?

A Sustainability Action Plan is created by an organization to detail how it will achieve sustainability goals over time, particularly if ambitious targets have been set, such as achieving net zero by a specific time frame. It is usually a static document that details a two to five-year timeline of objectives, although this period is at the organization’s discretion.

Its purpose is to embed ESG and sustainability across an organization, within all business operations. The path to a Sustainability Action Plan typically starts with a vision at an executive level, with the Sustainability Action Plan serving as the detailed strategy of how the vision will be achieved.

To complement the Sustainability Action Plan, organizations often release annual Sustainability Reports that detail the organization’s progress against the objectives. Together, Sustainability Action Plans and Sustainability Reports function as an important communications tool for organizations to illustrate their sustainability journey to a wide audience of stakeholders.

Sustainability Action Plans are not mandatory, rather, they are an initiative of an organization who wishes to make a positive impact on their sustainability performance.

In addition to planning and internal reporting, many organizations disclose their sustainability performance via various ESG reporting frameworks. In some instances, the data collected for the production of a Sustainability Action Plan can be used to support the reporting requirements of frameworks such as GRI, GRESB and SASB.

And vice-versa, organizations reporting detailed information to ESG reporting frameworks may export some of those responses to their Sustainability Action Plans to illustrate how they are performing against their goals.

This task is made easy with Envizi’s ESG Reporting Frameworks module which allows organizations to collate responses for both external and internal reporting frameworks in one place. In addition to collating responses, the module includes functionality to extract responses for use in documentation such as a Sustainability Action Plan.

Who needs a Sustainability Action Plan?

Organizations of all sizes can make steps towards making their business operations more sustainable and positively contributing to their community and environment. Smaller organizations should consider the resource requirements of developing a comprehensive Sustainability Action Plan and achieving those objectives over time.

For larger organizations, a comprehensive Sustainability Action Plan is ideal for outlining the long-term vision and plans to satisfy investor requirements, to change consumer attitudes and to take advantage of opportunities. This is especially the case once pledges have been made, as the next stage in the process is to work out exactly how the organization will achieve those pledges.

How to create a Sustainability Action Plan

A Sustainability Action Plan requires dedicated commitment across all levels of an organization, and it can be transformational as it requires a top-down approach with cultural change, realignment of values and leadership endorsement. As a result, there are several considerations to take into account when developing a plan.

The consultation process and stakeholder engagement

Much like corporate annual reports require the input of an executive team, the Board, finance department and other internal departments, so too does the process of creating a Sustainability Action Plan.

It requires extensive consultation across the executive and leadership levels, committees and even the community (depending on the sector and type of organization) to establish targets and accountabilities. At the center of the consultation process is an organization’s Sustainability Manager. In many organizations, the person in this role is responsible for developing both the business cases and doing the work to support the implementation and management of programs within organizations to deliver on their objectives.

Whether the organization has a Sustainability Manager or not, they may also choose to use the services of a sustainability consulting firm to guide them on the process and support their objectives.

Other examples of stakeholders involved in the consultation and implementation process may include:

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Establishing benchmarks

The Sustainability Action Plan will involve setting outcomes, actions and targets. Therefore it’s important that an organization understands its current ESG performance with accurate data to inform future benchmarks. Using an ESG and sustainability reporting software platform such as Envizi can simplify emissions calculations and automate the collection of energy consumption data, which will be required when reporting on the progress of the plan.

What is included in a Sustainability Action Plan?

Inclusions in a Sustainability Action Plan can vary depending on the type of organization, its size, and the sector it operates in. For example, a start-up or an independent education center such as a school may choose to focus on smaller initiatives to start implementing changes at the business.

Examples of achievable initiatives at this level could include:

• Using water tanks
• Gardening, such as a vegetable garden
• Recycling system
• Turning off lights when not in use
• Using energy-saving bulbs
• Implementing a printing policy

Larger organizations with ambitious goals and extensive resources could include initiatives such as:

Councils and municipalities

• Reducing Scope 3 emissions from suppliers
• Implementing a mass tree planting scheme
• Providing a community shuttle bus
• Introducing cycle routes
• Installing LED lighting

Property developers and organizations

• Optimizing HVAC equipment performance
• Using local labor and materials
• Incorporating water and waste reuse strategies
• Ensuring sustainability is part of client consultation and scoping
• Incentivizing staff remote-work opportunities

Manufacturing

• Reducing GHG emissions in the upstream supply chain
• Reducing power usage in data centers
• Investing in renewable energy sources
• Electrifying the transport fleet
• Upgrading energy-intensive equipment

Commercial real estate

• Developing a demand-side energy management strategy
• Minimizing waste
• Implementing renewable energy
• Improving  GRESB score
• Implementing end-of-trip facilities

Structure of a Sustainability Action Plan

Whilst the structure, inclusions and scale of a Sustainability Action Plan are at the organization’s discretion and stem from the initial consultation process, there are a few inclusions we recommend to ensure a Sustainability Action Plan which reflects an organization’s commitment to sustainability:

Sustainability values

Background on the organization’s view of sustainability and its core values which motivate the development of the Sustainability Action Plan.

Executive message

Endorsement at the C-Level usually from the CEO, outlining the organization’s commitment to sustainability.

Mandatory frameworks

If the organization operates within a sector which legislates reporting to a framework, this section would outline the requirements of that legislation or policy to provide stakeholders with context around the motivations for the Sustainability Action Plan.

Consultation process

Outlines how stakeholders participated in the development of the Sustainability Action Plan (such as workshops and forums), and which stakeholders were involved.

Methodology and review process

Outlines how the targets will be measured and progress monitored, which could include how regularly a Steering Committee or other key stakeholders will be updated. A Sustainability Report could be one of the vehicles for communicating this progress.

These are broad outcomes that steer the detailed actions and targets in the Sustainability Action Plan. Examples of outcomes could be “Decrease energy usage by 2025” or “Educate stakeholders.”

• Secondary outcomes These could be complementary outcomes which help to group actions within the broader outcome. Examples of secondary outcomes could be “Transport” or “Energy and emissions.”
• Action The tangible actions that will be undertaken to achieve a specific target within that secondary outcome, and broader outcome. Examples of actions could be “Replace inefficient HVAC systems” or “Develop recycling policy.”
• Target Specific KPIs placed against the actions to ensure progress is made. Examples of targets could be “100% of older HVAC systems replaced” or “75% increase in electronics diverted to e-waste programs.”
• Responsibility Assigning champions to action the targets could include listing departments or position titles.
• Timeframe Assigning specific months or quarterly timeframes ensures that targets can be realistically achieved.

The structure of a Sustainability Action Plan varies widely, and care should be taken to ensure that the inclusions of the plan, including the targets, are achievable for the organization.

Download template

Build your sustainability data foundation, streamline reporting and accelerate decarbonization with the IBM Envizi ESG Suite

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BREAKING NEWS

Roanoke Police: Man shot and killed by officers after refusing to drop knife

Watch: roanoke police department holds press conference after officer-involved shooting, weather authority alert day issued for aug. 28th and 29th, supreme court rebuffs biden administration plea to restore multibillion-dollar student debt plan.

Associated Press

WASHINGTON – The Supreme Court on Wednesday kept on hold the latest multibillion-dollar plan from the Biden administration that would have lowered payments for millions of borrowers, while lawsuits make their way through lower courts.

The justices rejected an administration request to put most of it back into effect. It was blocked by the 8th U.S. Circuit Court of Appeals.

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In an unsigned order, the court said it expects the appeals court to issue a fuller decision on the plan “with appropriate dispatch.”

The Education Department is seeking to provide a faster path to loan cancellation, and reduce monthly income-based repayments from 10% to 5% of a borrower’s discretionary income. The plan also wouldn’t require borrowers to make payments if they earn less than 225% of the federal poverty line — $32,800 a year for a single person.

Last year, the Supreme Court’s conservative majority rejected an earlier plan that would have wiped away more than $400 billion in student loan debt.

Cost estimates of the new SAVE plan vary. The Republican-led states challenging the plan peg the cost at $475 billion over 10 years. The administration cites a Congressional Budget Office estimate of $276 billion.

Two separate legal challenges to the SAVE plan have been making their way through federal courts. In June, judges in Kansas and Missouri issued separate rulings that blocked much of the administration’s plan. Debt that already had been forgiven under the plan was unaffected.

The 10th U.S. Circuit Court of Appeals issued a ruling that allowed the department to proceed with a provision allowing for lower monthly payments. Republican-led states had asked the high court to undo that ruling.

But after the 8th Circuit blocked the entire plan, the states had no need for the Supreme Court to intervene, the justices noted in a separate order issued Wednesday.

The Justice Department had suggested the Supreme Court could take up the legal fight over the new plan now, as it did with the earlier debt forgiveness plan. But the justices declined to do so.

“This is a recipe for chaos across the student loan system,” said Mike Pierce, executive director of the Student Borrower Protection Center, an advocacy group.

“No court has decided on the merits here, but despite all of that borrowers are left in this limbo state where their rights don’t exist for them,” Pierce said.

Eight million people were already enrolled in the SAVE program when it was paused by the lower court, and more than 10 million more people are looking for ways to afford monthly payments, he said.

Sheng Li, litigation counsel with the New Civil Liberties Alliance, a legal group funded by conservative donors, applauded the order. “There was no basis to lift the injunction because the Department of Education’s newest loan-cancellation program is just as unlawful as the one the Court struck down a year ago,” he said in a statement.

Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

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What We Know About Kamala Harris’s $5 Trillion Tax Plan So Far

The vice president supports the tax increases proposed by the Biden White House, according to her campaign.

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By Andrew Duehren

Reporting from Washington

In a campaign otherwise light on policy specifics, Vice President Kamala Harris this week quietly rolled out her most detailed, far-ranging proposal yet: nearly $5 trillion in tax increases over a decade.

That’s how much more revenue the federal government would raise if it adopted a number of tax increases that President Biden proposed in the spring . Ms. Harris’s campaign said this week that she supported those tax hikes, which were thoroughly laid out in the most recent federal budget plan prepared by the Biden administration.

No one making less than $400,000 a year would see their taxes go up under the plan. Instead, Ms. Harris is seeking to significantly raise taxes on the wealthiest Americans and large corporations. Congress has previously rejected many of these tax ideas, even when Democrats controlled both chambers.

While tax policy is right now a subplot in a turbulent presidential campaign, it will be a primary policy issue in Washington next year. The next president will have to work with Congress to address the tax cuts Donald J. Trump signed into law in 2017. Many of those tax cuts expire after 2025, meaning millions of Americans will see their taxes go up if lawmakers don’t reach a deal next year.

Here’s an overview of what we now know — and still don’t know — about the Democratic nominee’s views on taxes.

Higher taxes on corporations

The most recent White House budget includes several proposals that would raise taxes on large corporations . Chief among them is raising the corporate tax rate to 28 percent from 21 percent, a step that the Treasury Department estimated could bring in $1.3 trillion in revenue over the next 10 years.

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