How Do You Start a Towing Business?

How do you start a towing business?
How do you start a towing business?
A towing business can be profitable if done correctly

How do you start a towing business? Owning a towing and recovery company is like owning any business. You will have to determine costs, location, target customers, and investments. Starting a towing business can be profitable, but you will need to take a few things into consideration before moving into this space.

Legal Considerations

Starting a business requires a business license, and a tax ID number. You also may need permits and special licenses depending on where you want to start your business.

Depending on the type of truck you will be using you may need special permits to operate it. Check here to see if your truck falls into this category. Also, don’t forget about insurance. Not only vehicle insurance, but insurance to protect you from being sued and to protect your property from damage or theft.


The point of most businesses is to earn a profit. You will want to pay special attention to all associated costs and expected revenues with operating a towing business. Uniforms, equipment, maintenance and repairs, tools, fuel, and buildings are a few of the things to consider.

Expected revenue can be determined by researching what other towing companies are earning. You may be starting small, so don’t expect to earn as much as a company with a fleet of vehicles and contracts with other businesses and local municipalities. But you can do your homework and determine what you reasonably expect to earn per year.

Target Customer

Who will your target customer base be for your towing company? Early on you will most likely be doing light recovery and ad-hoc work. More established companies will likely have contracts with other businesses and with local municipalities to do towing work. They may have exclusive contracts with parking garages and with local police departments. You will need to build your reputation and scale your business before reaching such a level.

Equipment Needs

Once you determine what type of work you want to do and what types of customers to target, then you will need to decide on the equipment you will need to run your business. Do you want a flatbed truck or a traditional hoist and chain truck? What other recovery equipment might you need? Will you be buying new or used? Be thorough here. You don’t want to show up at a recovery site and realize that you don’t have the needed equipment to successfully do the job.

Customer Service and Efficiency

Starting out, you will more than likely be running your business alone. This makes prompt and courteous service a must on your part. Once you scale you will want to build your team with responsible and professional people who share in your goals and vision.

Be sure to use technology to your advantage. Not only for marketing and advertising to build a website but also to run your business. Having software to track your fleet can give you an edge when trying to build a reputation and grow your business.


How do you start a towing business? Like any other business, you will need to do research on everything from market viability to expected costs and revenue. Once you understand your market, your customers, and your goals, then you can confidently launch a towing business.

Read Also:

Starting a Business? Here’s What You Need to Know About Business Loans from the SBA

Why You Need to Invest More Into Your Small Business’s Marketing Efforts

Consumers Impact on Small Businesses

Why Your Business Needs to Invest in High-Quality Electrical Equipment

How to Start Your Own Taxi Business With Under $15,000