Together, buying a truck, obtaining a towing license and other necessary permits, and opening up a brick-and-mortar business can cost upwards of $200,000. If this hefty sum seems unreachable, perhaps it’s best to consider other entrepreneurial opportunities. According to ZipRecruiter, the average tow truck owner in the United States makes $88,156 a year. This is nearly $40,000 more than the average yearly earnings of a full-time salary or wage worker, according to a 2019 report released by the U.S. In developing your income statement, you need to devise assumptions. For example, will you operate one tow truck, or will you have multiple trucks with varying capabilities?
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your towing company is sued. With the passengers and cargo removed, weight the vehicle using a vehicle scale. Curb weight is the weight of the vehicle in its factory condition.
The other big screen news is the addition of a standard 12-inch digital instrument cluster reminiscent of that seen on the Lightning and an optional head-up display. The average price for a new truck is up by 6.0%, and the average new price for a truck is $60,000. Because new trucks are limited, attention has been on used trucks.
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STEP 6: Obtain necessary permits and licenses
So, while you could technically qualify to be a tow truck driver at eighteen, you might have some difficulty finding work. A tow truck driver that knows what he or she is doing and can correctly line up the yolk with the car can get the job done in well under a minute. They are a safe and comfortable bet for both parties involved. Bracket system tow trucks can be used for both the front and rear wheels of a car. This method of towing is seen as the quickest and most efficient, and the owner of the car being towed can be sure that their car will not be damaged with the use of hooks or chains.
Required forms of insurance for all businesses with employees:
Click here to hire someone to write a business plan for you from Growthink’s team. These could include the dates when you expect to tow your Xth vehicle, or when you hope to reach $X in revenue. It could also be when you expect to expand your business to a new city. While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
GVWR is the maximum weight capacity of a vehicle without a trailer attached. Towing capacity, on the other hand, is the maximum weight capacity of the vehicle, specifically in terms of how heavy of a trailer it can tow. American Automobile Association – A large federation of United States motor clubs that offer roadside assistance and other benefits to its members. Partnering with AAA is a great way for a towing company to increase business. Payroll – You’ll have to account for the salaries or hourly pay of any employees that you hire, keeping in mind average tow truck driver salaries.