How To Start Your Own Off-Road Recovery Business – HotCars

Setting up an off-road recovery business makes a lot of financial sense.
According to research, 1 in 3 cars breaks down in the US every year. That statistic could be even higher when it comes to off-road drivers and their cars. That is why setting up an off-road recovery business makes a lot of financial sense. You may think that all you need is a tow truck to get started. Well, if you want to compete with established towing providers in your locality, you need to obtain the right permits, get liability insurance, and understand the laws. Here are some great tips for starting an off-road towing business.
Related: Here's Why Off-Road Enthusiasts Love The 1990 Toyota 4Runner
A business plan outlines your company’s intentions, what you do, the business strategy, and your growth plan. A business plan is essential and can help you identify areas to focus on. You visualize your project as a whole and plan how to implement it. It can also help you to secure a loan from a bank if you don’t have the cash for the equipment.
There’s a lot of information online on how to write a business plan for virtually every kind of business. Digital tools like LivePlan also make the process easier. You can quickly develop a business plan and monitor your performance over time.
When starting a towing company, try to limit yourself to a few towing niches to establish your business and make a name for yourself. Here are the different types of towing services.
Consensual towing – This means towing vehicles whose owners have agreed to have their cars towed. These could be vehicle owners who need their cars taken to auto shops.
Nonconsensual towing – This means towing motor vehicles without the consent of their owners or operators.
Repossession towing – This type of towing is usually done for private lenders. It can be done without a court order, and many states don't require a notice of repossession.
Emergency wrecker towing – This towing is done for regular or large vehicles that require transportation to a junkyard.
Government towing – This means towing vehicles parked illegally on government property, including streets.
Nonconsensual towing is more expensive to start because you’re legally required to have storage for the impounded vehicles. If you don’t have the capital, consider applying for a car title loan. All you need is a car with positive equity to use as collateral.
You can also partner with local businesses to access more opportunities. For instance, you can get work from your local government and tow wrecked or broken-down vehicles. You can also contract with AAA and get jobs from AAA members in your area. Network with auto shops and other businesses in your area who can recommend your services to their customers.
You’ll need a comprehensive insurance policy to cover your business, and you must get it before you start operating (even if you’re offering free services). It’s worth mentioning that tow truck insurance is expensive, but if you take time to shop around, you’ll find the best deal and save a significant amount of money.
Related: Here's How You Can Turn Your Jeep Wrangler Into An Off-Road Beast
Without good customer service, you won’t have any customers. Offer the highest level of customer service at all times. Most of your customers will be distressed when you interact with them, and good customer service can go a long way. If you have staff, get them trained on customer service, as this will help your business.
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