If you are considering a start-up towing company, writing a good business plan should be your first step. The written business plan will help shape your ideas and goals as well as force you to complete research on equipment costs, income potential, insurance requirements, state regulations, competitors and marketing campaigns. A business plan is an essential tool when applying for outside funding such as small business loans and grants.
Obtain sample business plans from your local Small Business Administration or download free or low cost software containing business plans. You may prefer to meet with a business consultant who can help you design your towing company business plan.
List your primary business goals. Obviously you plan to provide towing services but broaden the scope of your business plans to include details such as what distance you will travel, the hours your service will be available and the size of the vehicles you plan to tow.
Research costs to determine how you will set the towing pricing. State agencies may regulate the amounts you can charge for towing services. Pricing may also be based on the cost of gasoline, tow trucks, insurance, licenses and administrative time. Include pricing information, costs and potential profitability in your business plan. Determine daily, weekly, monthly and annual costs to capture a realistic picture.
Review local competition. Research the number of towing companies in the vicinity, the services they provide, their contracts and their pricing. Determine how your towing company will fit into the area market and document competitor information in your business plan.
Complete a marketing plan for your towing business. Include a section in your business plan documenting how you plan to advertise your services. Factor costs for print brochures and mailings, website and business telephone services. Determine how you will sell your services and the possibility of contracting with garages, automobile clubs and car dealerships.