How to Run a Towing Business

by Shanika Chapman; Updated September 26, 2017
Tow Away Zone

Now that you have established your towing company, procured your licenses and equipment and begun your marketing campaign, it’s time to focus on how you intend to run your business. As you know by now, running a business is a challenging endeavor. Without a well-managed system to handle your equipment, employees, clients and income, you’ll find yourself struggling to stay afloat. Make a name for yourself by demonstrating excellent organizational skills, a superior work ethic and a commitment to your employees and clients.

Get your office in order. Start by establishing a well-organized office with a filing system for tax paperwork, invoices, employee files and client information. Then invest in software that can help you better manage your company. Look for software providers that specialize in software geared toward towing companies such as Pro Tow XTR, which offers tools for handling dispatching, tow truck monitoring and maintenance, ticket status, liens and vehicle release status, in addition to other general accounting tools for inventory management, payment tracking, employee and client data.

Subscribe to industry magazines such as the Tow Times to stay current on legislation or industry changes that may affect your business, as well as receive tips on how to better your manage or market your business.

Find a reliable mechanic who can tend to your trucks the moment they break down. Conduct regular maintenance checks on your vehicles and equipment.

Establish relationships with city, county and state police, as well as car dealers who may need your services.

Train your employees to take extra care when towing cars; customers who already are apprehensive about having their vehicle towed will be particularly impressed with a tow truck operator who seems genuinely concerned about the welfare of their car. Word of mouth is an excellent marketing tool.

Evaluate the type of jobs you normally do by reviewing invoices or asking your employees. Identify whether you can afford to procure more equipment or larger trucks to offer additional services such as heavy duty towing, automotive or truck repair, or if you can obtain the proper insurance and qualifications to perform repossessions. Check with your insurance company prior to increasing your services as your insurance premium may increase. Larger trucks may cost twice as much to insure as small tow trucks. Verify with your employees that you have provided them with the right equipment to get the job done.

Tips

  • Show your employees how much you appreciate what they do. Don’t be afraid to let go of employees that aren’t performing to your standards.

    Reinforce how important it is for your drivers to maintain clean records and a current commercial driver license.

    Hire drivers over the age of 21 to minimize your insurance costs.

    Hire a towing answering service to reduce your administrative workload.

About the Author

Shanika Chapman has been writing business-related articles since 2009. She holds a Bachelor of Science in social science from the University of Maryland University College. Chapman also served for four years in the Air Force and has run a successful business since 2008.

Photo Credits

  • Ryan McVay/Photodisc/Getty Images
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