Starting a towing business could be a golden decision for you as towing Services are in huge demand in Canada and all around the world. They are in demand as road accidents keep happening every day and towing companies are required often. Moreover, towing services are required for automobile towing due to unauthorized parking violations that keep happening daily. Not only that, hundreds of vehicle breakdowns occur every day, and hence, people keep calling tow truck companies frequently.
My journey: Setting up a towing company in Surrey
The fun fact is that due to such high demand and professional service, towing companies make a lot of money. If I talk about me, I live in Surrey BC and I analyzed the business model of every single towing company operating in Surrey. I figured out that I could also start a towing company in Surrey and start earning heavy bucks. Having determined that, I started my own tow truck Surrey company and now I am earning around $20k+ monthly. If you want to start your towing company, here are some of the fun facts you need to know first. If you guys also want to start a towing company, here I am going to share my own experience with you for setting up a tow truck company. Here are some of the key factors that account for the overall success of a towing business:
Who can own a tow truck company?
Most of the roadside assistance companies are owned by private individuals. It is beneficial to start a towing company near small roads and highways where the flow of traffic is good and the density of service stations is less. If you are a vehicle rental company or simply, an automobile servicing company, you can start your own roadside assistance company along with that.
You can note that in some areas especially near highways and toll junctions, state authorities have their own towing services. Police and other firefighter authorities can also establish their own towing services.
How Towing Companies Operate?
Owners of tow truck companies allot dispatch centers in specific areas. The dispatch centers are further authorized to tow truck drivers. Usually, there are a number of tow trucks available at the dispatch units so as to meet urgent towing demands all at once. Tow truck drivers are given instructions and towing consignments regularly.
Whenever there is a call placed to the towing company, it is redirected to the nearest dispatch centers. Further, a tow truck driver handles the towing project along with his tow truck.
The communication between towing companies and dispatch centers is placed through mobile radios and other mobile devices. Some big companies also communicate through GPS (Global Positioning System) devices. With more technical advancements, a number of wireless communication devices can be used.
Towing Equipment Required
One of the most important towing devices used in towing industry is the navigation system. Some big towing companies make use of Automatic Vehicle Location systems to navigate the closest tow truck to the position of the client. It saves a lot of time to reach the proper location.
Additionally, along with tow trucks, the tow truck company owners also keep a mechanical tool kit in order to deal with any kind of car breakdowns and mechanical failures.
Can I Start A Towing Company too?
Yes, you can. However, you need to plan the stuff properly before making any investment. The first and foremost thing you need to worry about is the capital you will need to invest in the business. If you ask me how much money I need to start a towing business, I’d say near to $10,000 and $50,000 is sufficient.
After you have figured out the investment, the next thing you will need to think about is to gather class B licenses and the legal permits to start a tow truck business. You’ll need to check your local details for exact prices and procedures to gather the license. Also, remember to check for the insurance policies for your business. They may cost you some money for the first few months of the premium.
After setting up with all these things, you need to sit with your team and discuss small but crucial elements like the charges, the locations, the management, the dispatch centers, and other such activities. After deciding about these little and important things about your towing company, you’re good to tow!
A tow truck business can earn you a lot of bucks if you know every know-how of how to start a towing business. However, starting a towing business is not an easy task at all. You will need to prepare an efficient towing system to provide fast and professional towing services to your clients. Setting up dispatch centers and arranging tow trucks will incur some investment from your pocket, but it’s totally worth it if you operate it well.