Starting a New Business: Advice for getting into the Towing and Recovery Industry
Towing and recovery companies are beneficial to many different people, including police officers, the public and other businesses. They take abandoned or broken down cars off the roads or away from parking lots and other public areas. These businesses can turn a profit, but you must know what you are doing and have the right equipment to complete the job. In addition, you must be passionate about your work and know how to get the word out about your company.
The first step is to work on a business plan for your company. Write down how much money the business will cost you initially, what you think your expenses will be, any assets you have, and the costs associated with getting insurance and your license.
Next, purchase a tow truck and any necessary equipment. A few things to consider are strobe lights, floodlights and traffic cones. You must have a place to put all these items, so a storage unit may be necessary. Depending on how much business you are doing, you are likely to need at least a few employees. Figure out when you want to be on the job and post the hours for your business.
Get insurance. You never know what can happen; your truck could be involved in an accident, a car you are towing could be damaged or an employee could make a costly mistake. You need to be covered for all of these circumstances.
Register your business with the proper authorities and consider the structure you want your business to work under.
- Try being a Sole Trader
- Partnership Formation can work
- Limited Company Formation is an option
Find out if you need approval for any other aspects of your business, like your storage area.
Get the proper licenses for your new business. You have to get insurance before you will be awarded a license. If you are full time then mention this to the insurer and if not then look for cheaper part time motor trade insurance. Carefully go over all your paperwork before you turn it in.
Get the word out about your new business. Set up a website and a social media site. Create business cards and flyers that you can pass out. Introduce yourself to the owners of local garages and ask them to think of you if they need assistance. Offer specials to get your name out there.
Let the local police station know about your business. They may be able to use you when dealing with car accidents.
Always have a cell phone on your person. Make sure people can reach you when they need you, even if it is in the middle of the night.
Figure out where you can take unwanted cars – this can also be important and is often overlooked.
These tips will help you and your business and ensure that you flourish and get the most from your new venture. So, make sure to pay attention to them and go for it.