How to Start a Tow Truck Business at Home
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How to Start a Tow Truck Business at Home

You have the freedom to start your own home-based auto towing company from home. Start this business with one small used tow truck and then expand the operation slowly. This process is not hard if you follow the steps that are provided. Learn and find out how to get a car towing company up and running.

Find out how to start a tow car company at home. There are more cars in the United States than any other country. According to the United States Department of Transportation, there were 254.4 million passenger vehicles in 2007. It will be your job to find individuals and companies that need towing services. Keep in mind that cars are every where and they will break down. You will hook a car to a tow truck and take it to a specific destination. Then, collect a fee for the service. Charge $80 for every car you tow. Tow three cars per day and you can make $4,800 a month. Add another truck to your at home business and you can bring home $115,200 a year working five days a week.

Things You'll Need:

  • Start-Up Cash 0-$5,000
  • Automotive Tool Box
  • Home Office
  • Mobile Phone
  • Computer w/Internet Access

Step 1 Tow Car Company Work

Do volunteer work to learn how to start a tow car company at home. Work for a tow car company for at least three months to learn what the business entails. Watch and learn how other tow car drivers perform their job and copy them. Try to interview at least ten drivers and ask them how they got started in the business. Write this information down and use it for a future reference.

Step 2 Tow Car Budget

Decide how much money you are willing to spend on a tow car company at home. Keep in mind that the largest expense will come from trying to obtain a tow truck. Do not finance a truck to start this business. Find a used truck that is in good conditon in your area. Get a mechanic to inspect the truck. Put aside funds for truck repairs in your budget.

Step 3 Tow Car Business License

Go to a city or county office and apply for a license to start a tow car company at home. Visit GovSpot.com to register for your state tax ID number online. Click on the "State Government" box and select your state. Select your state's home page in the "General Resources" section. Call (800) 429-1040 and apply for a federal tax number. Buy tow car auto business insurance for your home business.

Step 4 Tow Car Business Plan

Create a business plan to help you start a tow car company at home. Write in the management section how you are going to plan, organize, direct, and control processes within the business. Describe in the marketing section how you are going to satisfy all your customers and make a profit.Learn how to read the balance sheet, the income statement, and the statement of income in the financial section of the plan.

Step 5 Building a Tow Car Company

Visit a print shop in your city to help you start a tow car company at home. Buy a box of business cards. Pass out your cards to anyone that owns a car and tell them about your new home-based company. Contact the police department and find out how to get on the list to tow cars in your city. Call your city's parking violations department. You may be able to use their services to increase sales revenues.

Tips:

Join the Towing & Recovery Association of America (TRAA)

Sign-up with AAA to provide services for their members.

Expand the business and hire reliable and responsible employees.

Offer discounted towing services to businesses, schools, friends, and anyone that drives a car.

Add additional services as the business expands such as flat tire, jump start, and holiday services.

Warnings:

Stay away from the car repossession business.

Be prepared to work mornings, evenings, nights, and weekends.

Use sales revenue to buy a better truck and equipment.

Make sure your truck(s) are operating properly.

Charge customers a fair price.

Reference:

Small Business Administration-Starting a Business

Small Business Administration - Building A Legacy: Clem's Garage

Towing.Com

Resources:

National Auto Club

Towing & Recovery Association of America

American Towman 

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