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.

Auto Towing Ideas

Auto Towing

Bring in more profits with an auto towing company.

Boat Rentals

If you own a boat that sits on land more than water, consider renting it out for others to enjoy.

Automotive Used Parts

Apply your auto industry know-how to sell used car parts.

More from Business Ideas

Side Hustle

4 Simple Mistakes That Can Crush Your Creative Side Hustle, From an Expert Who Raised $45 Million to Support Independent Workers

Ben Huffman, CEO and co-founder of Contra, became a "power user" on Elance and Odesk (now Upwork) and realized freelancers needed more support.

Side Hustle

How to Go From Side Hustle to 7-Figure Business and Beyond, According to 3 Women Who Did It

What starts as a way to earn extra cash just might launch you into full-time entrepreneurship — if you're strategic.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.