HOW TO START A Tow Truck Business
Wondering how to start a tow truck business? Looking to start a tow trucking business? Nate Jones Entrepreneur is here to help you with a free tow truck business plan below. Starting your tow truck business the correct way is important.
How much does it cost to start a tow truck business?
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$60,000 - For a Reliable Used Tow Truck
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$15,000 - Annual Cost of Diesel Fuel
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$5,000 - for insurance If you need insurance, reach out to Wexford Insurance, they work with a lot of Tow Truck Businesses. wexfordins.com
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$200 - for Tow Truck DOT Registration
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$200 - for LLC or corporation registration
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TOTAL COST TO START: $80,400
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TOTAL COST USING FINANCING:
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$15,000 - ​Down payment on tow truck
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$500 - Down payment on insurance
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$400 - for DOT and LLC
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TOTAL: $20,400
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How much a month does it cost to fuel up a tow truck?​
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$1,000-$1,500 a month = 350-400 gallons of diesel fuel a month
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How much money can you make with a tow truck business?
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The average revenue per load for a tow truck is $75 - $125 per load
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The average number of loads a tow truck can haul a day is 6-7 tows.
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If you drive a tow truck 6 days a week you would have 42 tows a week.
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Hauling 168 towing a week would make $4,200 a week on average.
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On a monthly basis, your tow truck business would make $16,800 a month
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On an annual basis, your tow truck business would make $202,000 a year
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As you scale your tow truck business, you can continue to make more money by buying more trucks with the expense of hiring a tow truck driver.
Are Tow Truck Businesses Profitable?​​
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Yes, a single tow truck can make around $16,800 a month. With monthly expenses (loan, insurance, fuel, etc) of around $4,500-$5,500 a month a tow truck business can profit around $11,500-$12,000 a month.
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A tow truck business can profit around $135,000 - $140,000 a year with one tow truck.
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Types of Tow Truck Businesses:
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Flatbed Tow Truck
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Hook and Chain Tow Truck
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Wheel-Lift Tow Truck​
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Boom Truck
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Integrated Tow Truck
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Positives of a Tow Truck Business
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This Business is always needed. Cars will always be breaking down or wrecked on the side of the road.
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This business can be scaled. You can continue to add more tow trucks and grow your business.
How to Start a Tow Truck Business
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​Save up money for down payments on a tow truck
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Form your LLC with the Federal Government and Local Government
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Obtain a DOT Number from the FMCSA
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Purchase Insurance
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Make connections with local police authorities, garages, create a website with SEO, tow truck companies, and tow brokers.
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Run your business!
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FIND YOUR STATE GUIDE TO STARTING A BUSINESS
Alabama - Arizona - Arkansas - California - Colorado - Connecticut - Delaware - Florida - Georgia​​ - Idaho - Illinois - Indiana - Iowa - Kansas - Kentucky - Louisiana - Maine - Maryland​​​ - Massachusetts - Michigan - Minnesota - Mississippi- Missouri - Montana - Nebraska - Nevada - New Hampshire​ -
New Jersey - New Mexico - New York - North Carolina - North Dakota - Ohio - Oklahoma - Oregon - Pennsylvania - Rhode Island - South Carolina- South Dakota - Tennessee - Texas - Utah- Vermont - Virginia - Washington - West Virginia - Wisconsin - Wyoming ​
Need the Complete Guide?
If you are wanting to successfully launch and scale a tow truck business, you will need this E-Book. In this book we review the following topics:
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Business Planning for a Tow Truck Business
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Legal and Regulatory Requirements for Tow Trucks
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How to finance and acquire tow trucks
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How acquire loads and market your tow truck company
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How to manage your finances and bookkeep your tow truck business
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How to set up and scale your tow truck business.
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Need Help Finding a Business Idea?
Download my
E-Book
Are you wanting to start a business but don't know which one or where to even look? Great news, I have done the hard work for you. In this book, you will learn the following:
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How to find a business idea that fits your lifestyle.
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How to uncover business ideas that no one else is starting.
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How to potentially buy your first business instead of starting one.
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How to start your business and set it up to succeed.
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How to scale your business so you have a life.
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