How to Start A Tow Truck Business

February 5, 2020

You have your CDL (commercial drivers license) and a strong work ethic AND you are sick of making someone else rich for your labor. You finally decide that you are going to break off a piece of the United States $7 billion dollar a year tow truck industry. The question is ultimately, how. It is very simple as long as you have a game plan.

Step 1. Find a Truck System

The most obvious factor is the tow truck itself. How can you start a tow truck business if you do not even have a single piece of equipment. Most people think that you have to go out and purchase the latest and greatest towing technology and you can only be successful with a brand-new rig. WRONG. The truck does not make you a dime, it is the system on the back of the truck that churns the real profit. Remember, the truck itself is a cost center, invest in a unit that is reliable and something that is easy on the wallet. That is why Robertson Truck Group can help, we install NRC Systems on used chassis.

See our available systems here

NRC 50CS Wrecker


Please do this. Get in contact with your local government and protect yourself before something bad happens. See this short list on why this is crucial.

  • Legal Protection
  • Credibility
  • Receiving Funding
  • Tax Compliance
  • Wholesale License Benefits

For more reasons why this is important see Bizfluent’s in-depth article here.

Step 3. Insure yourself

You bought nice equipment, now protect it with insurance. Things get crazy out there in the towing world, insurance will cover you in the event that you’re ever involved in an accident.

There are many factors to consider your towing company insurance rates:

  • The type of towing you plan to do
  • The size and scope of your business
  • Your driving record as well as the driving records of your employees

Step 4. Business/Financial Plan

You are a genius. You have a towing rig and now have all the back end paperwork completed.  Unfortunately you now have no idea what direction you are going. Now is the time to establish that. Are you going to work with local law enforcement to move illegally parked cars? Are you going to go the more private side and work with property owners? Is it a good deal to partner with AAA? Formulate a plan of what geographical market you want to become established in and reach out to local contacts within that area.

Step 5. Focus on Profit

You make money on each tow, focus on what is best for YOUR business. Usually within the first few years of the industry you are learning the ropes, take your time to fully understand the towing business. Understand the financials of your tow truck business side of things, weigh your costs and always focus on the bottom line.


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Call Robertson Truck Sales at 844-683-6446 or send us a message
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