How To Start a Tow Truck Business in
Massachusetts
Wondering how to start a tow truck business in Massachusetts? 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 in Massachusetts the correct way is important.
How much does it cost to start a tow truck business?
-
$60,000 - For a Reliable Used Tow Truck
-
$15,000 - Annual Cost of Diesel Fuel
-
$5,000 - for insurance If you need insurance, reach out to Wexford Insurance, they work with a lot of Tow Truck Businesses. wexfordins.com
-
$200 - for Tow Truck DOT Registration
-
$200 - for LLC or corporation registration
-
TOTAL COST TO START: $80,400
-
TOTAL COST USING FINANCING:
-
$15,000 - ​Down payment on tow truck
-
$500 - Down payment on insurance
-
$400 - for DOT and LLC
-
TOTAL: $20,400
-
​
How much a month does it cost to fuel up a tow truck?​
-
$1,000-$1,500 a month = 350-400 gallons of diesel fuel a month
​
How much money can you make with a tow truck business?
-
The average revenue per load for a tow truck is $75 - $125 per load
-
The average number of loads a tow truck can haul a day is 6-7 tows.
-
If you drive a tow truck 6 days a week you would have 42 tows a week.
-
Hauling 168 towing a week would make $4,200 a week on average.
-
-
On a monthly basis, your tow truck business would make $16,800 a month
-
On an annual basis, your tow truck business would make $202,000 a year
-
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?​​
-
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.
-
A tow truck business can profit around $135,000 - $140,000 a year with one tow truck.
​
Types of Tow Truck Businesses:
-
Flatbed Tow Truck
-
Hook and Chain Tow Truck
-
Wheel-Lift Tow Truck​
-
Boom Truck
-
Integrated Tow Truck
​
Positives of a Tow Truck Business
-
This Business is always needed. Cars will always be breaking down or wrecked on the side of the road.
-
This business can be scaled. You can continue to add more tow trucks and grow your business.
How to Start a Tow Truck Business
-
​Save up money for down payments on a tow truck
-
Form your LLC with the Federal Government and Local Government
-
Obtain a DOT Number from the FMCSA
-
Purchase Insurance
-
Make connections with local police authorities, garages, create a website with SEO, tow truck companies, and tow brokers.
-
Run your business!
​
Boston - Worcester - Springfield - Cambridge - Lowell - Brockton
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:
​​
​
-
Business Planning for a Tow Truck Business
-
Legal and Regulatory Requirements for Tow Trucks
-
How to finance and acquire tow trucks
-
How acquire loads and market your tow truck company
-
How to manage your finances and bookkeep your tow truck business
-
How to set up and scale your tow truck business.
​
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:
​​​​
-
How to find a business idea that fits your lifestyle.
-
How to uncover business ideas that no one else is starting.
-
How to potentially buy your first business instead of starting one.
-
How to start your business and set it up to succeed.
-
How to scale your business so you have a life.
​