#towing #towtruck Are you looking to start a Tow Truck business? In this video, we explored how you can start a tow truck business and then grow it to $202K a year in revenue! See the steps below:
1. Before you get into formally starting this business, you need to understand how you will bring in business. You can have best business idea, the best equipment, the best shop, but if no one knows you are in business then you can't make any money.
- Marketing Ideas:
-- Contract with Local Law Enforcement
-- Use a Tow Truck Broker
-- Network with Car Dealers
-- Facebook Page
-- Website with SEO to show up on Google
-- Local Marketing
-- Google Ads
2. Legal Up! Create an LLC, buy insurance, and make sure your Tow Truck is Compliant. Most people skip this step. Remember to protect the ship!
3. Create a budge for equipment, loan, marketing, and other expenses. Set Sales Goals and run a Proforma Cashflow analysis.
**How to make $202,000 a year in a tow truck business**
- With the average per tow revenue being between $75 - $125, we will use $100 a tow as our average.
- We will also assume that we can take 7 tows a day on average.
- To hit $202K, you will need to do 7 tows a day ($700 a day) for 24 days = 168 tows a month = $202K a year.
Now let's breakdown the profit!
Revenue: $202K
Expenses:
- 20% of revenue: $40,400
- Truck Loan ($60,000 Used Truck / 25% down payment) = $15,000
- 11 truck monthly payments of $850 a month = $9,350
Total Expenses: $64,750
PROFIT!: $137,250!!!!