Home > Business Ideas > Autos/Transportation > Auto Towing

Business Idea Center:
Auto Towing

About Startup Costs

The startup costs provided in this database include an approximate financial investment that will be needed to start the business. This is generalized information and should only be used as a yardstick to determine business startup costs. Your investment will vary based on factors such as equipment, transportation, licensing and permits, operating location, working capital and initial marketing and advertising budgets. Remember a successful entrepreneur is one who carefully researches and plans every aspect of a new business venture, including the financial investment needed to start a business and the working capital required to achieve positive cash flow.

Close Window »

Business At A Glance

Auto Towing

Startup Costs: $10,000 - $50,000
Home Based: Can be operated from home.

About

Franchises Available? Yes
Online Operation? No

Previous Next

Bring in more profits with an auto towing company.

Business Overview

In many areas of North America, obtaining a license to start or operate an automotive towing business can be a frustrating task since auto-towing licenses are heavily regulated. Some operators of towing companies forego the license entirely and don't provide towing services to the general public; instead they only subcontract their services on an exclusive basis to car dealers and property managers. However, this can still be a risky venture given that it may be difficult to secure proper liability insurance for this type of towing operation. The alternative to waiting to be awarded a towing license is to purchase one from an existing towing operator or company. Purchasing a towing license and tow truck in an urban area can cost you as much as $200,000 with no towing accounts in place. Overall, starting an automotive towing business can be a terrific and profitable business venture, providing a license can be obtained or purchased at a reasonable price.

The Market

Your primary customers will be people who are stuck in emergency vehicle situations, or businesses seeking to tow illegally parked vehicles. A strong marketing program--via advertising and word of mouth--will help potential customers remember your business in a jam. A catchy name and easy phone number will greatly help your business.