Auto Towing

Startup Costs: $10,000 - $50,000
Home Based: Can be operated from home.
Franchises Available? Yes
Online Operation? No

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.