Tow truck as a business
Today, given the steady growth in the number of vehicles on the roads, it is advisable to open and organize a business for the provision of tow truck services. In case of an accident, breakdown, parking in the wrong places, you cannot do without evacuation. The demand on the market for these services only increases, regardless of the chosen business project.
Download a business plan for the opening of a tow truck service
Possible cooperation and conclusion of contracts with government agencies. An alternative solution would be to create your own private company, which will solve the problems of car owners in case of all kinds of troubles on the roads. In any case, with the right organization, running a car evacuation business is guaranteed to bring you a stable income.
Where to start?
You can conclude contracts with municipal enterprises that provide similar services for the provision of technical assistance and transportation. Close cooperation with the road inspection is also possible. In this case, the functions of a tow truck will include forced evacuation of cars in the Primorsky District from inappropriate parking spaces or removal of vehicles in an emergency condition.
However, running such a business is unlikely to ensure your popularity among car owners. But such a choice of activity is quite acceptable and justified for initial earnings in order to further develop their business.
When creating any business, in order to withstand the competition, it is important to develop a marketing strategy. The market for such services should be studied. It is ideal when the evacuation business brings profit to the owner and at the same time the services provided will be readily available to potential clients.
To attract new customers and retain them, you should:
Advertising of your company plays an important role
It can be done in different ways:
- regular distribution of leaflets;
- exterior decoration of their work machines; <
- contact phone number that is easy to remember.
Tow truck services are required by those who are in a difficult situation and cannot cope with the car on their own. Taking into account the number of accidents and other unforeseen situations with transport - services are in demand. Therefore, the business is also profitable.
Competition is unusual in this area. In large cities, private tow trucks are in demand, and large companies win the competition (small ones cut prices, buy cheap cars). In small ones, you have to compete with municipal services, they are the first to be addressed. We offer to consider a tow truck as a business and develop the right strategy
How to better organize the work
It all depends on your budget. There are two basic options:
- Creating a large company. In this case, in every district of the city there will be cars that can quickly arrive at the place and evacuate the car. Traffic jams are not a big threat here. A fleet of 10 or more cars is already considered large. It is recommended to open in large cities with a population of over one million. Here you will have to hire personnel and approach your business as responsibly as possible.
- A small company with a fleet of 1-5 cars. If you know how to handle a tow truck, you can work alone in your own car. This is a good option for a startup, so you can "join" this business. You can gradually increase the number of cars, find 1-2 drivers, then more.
There is a great way out for a beginner who is just getting started in this field. It's hard enough to attract customers for a small company. Therefore, in some cases, it turns out to agree with other companies and municipalities on orders for evacuation. Situations often arise when they lack cars, especially with heavy traffic and traffic jams.
If you want to work alone or are going to use 2-5 machines, it is better to register as an individual entrepreneur. You practically do not need personnel, accounting matters can always be entrusted to an outsourcing company if necessary, and as a dispatcher you will handle it yourself.
The sole proprietor should be liquidated for a short time and made an LLC when you need personnel. It takes you less than a week to become an entrepreneur:
- fill out an application;
- pay the state duty;
- submit documents to the Federal Tax Service at your place of residence.
After that you will be registered. Open a bank account and get to work.
The car must be registered with the traffic police, and also insured. You (if you work yourself) must have category B and C driving license. This also applies to all other drivers. No special work license required.
The business of providing such services is simple, if you yourself know how to drive a car, you know the peculiarities of operating a tow truck, and have minimal skills in conducting a marketing policy. The competition in this area is quite high, it is impossible to survive by just providing quality services. Nevertheless, there is still a place on the market for both large companies and small firms.
First, let's figure out who needs the services of a tow truck, who will have to work with while doing business. According to experts, the target audience almost completely coincides with the target audience for the car sales market. These are usually family men aged 30-45 years. But as for the specific business in question, these are mostly business people who do not have time to study the features of a car, to personally repair it. They prefer to save time by having this issue resolved by a specialist. Therefore, in the event of a breakdown on the highway or road, they call a tow truck without hesitation.
As already mentioned, this business is associated with high competition, although the threshold for entering it is quite high. The fact is that the funds are returned fairly quickly, the business begins to generate income in a short time. Moreover, this feature does not lose its relevance over the years.
Competition in the market is mainly concentrated between municipal organizations and private firms. As a rule, in large cities, tow truck services are mostly offered by commercial organizations. The competition there is much tougher, and private traders are able to react faster and more flexibly to market trends. Therefore, they managed to bypass municipal companies due to flexible pricing policy, high quality services, and various promotions.
State organizations run the show in the regions due to the fact that it is easier for them to establish the necessary connections with utilities, road inspection. In addition, in the periphery, potential clients are more likely to turn to municipal services simply because they do not know about the existence of a private tow truck.
As for the competition between private traders, it is more difficult for small organizations. They cannot afford to include more expensive tow trucks in the procurement plan, as large firms do. In addition, a company with a large fleet of cars can afford to open several points in different parts of the city and respond more quickly to calls. Therefore, small companies often dump prices and buy cheap cars.
The advantage of a business is that you do not need any licenses or permits for legal activities. It is enough to include the registration of the company in the business plan. Moreover, if you are opening a small company, you can choose an individual entrepreneur. But if you plan to open a network of points in the city, it makes sense to register a legal entity, for example, LLC.
It is imperative to include in the business plan the purchase of OSAGO insurance for each tow truck. It is recommended to issue an insured amount of 2 million rubles. Each insurance will cost about 35 thousand rubles. In total, about 70 thousand rubles should be included in the cost plan for this stage.
The number of cars in Russia is growing steadily. The majority of car owners do not have the skills to repair cars on their own. And therefore, if a breakdown occurs on the way, then the car owner will most likely call the vehicle evacuation service. Following the growth in car sales, the demand for tow trucks is increasing.
The core of the target audience for evacuation services, in general, coincides with that for the car sales market. These are men aged 30-45, with the most active family members. An important group of target customers are entrepreneurs. They do not have time to fix a stopped car, and they immediately call a tow truck.
Assessed by experts as high. Despite the rather high entry threshold, entrepreneurs are attracted by the quick return on business (and this trend remains relevant to this day). In big cities, it is difficult for newcomers to the tow truck market to start, since the niche is firmly occupied by large firms with a large number of cars in the composition, distributed throughout all areas of the settlement. Young businesses are forced to dump and purchase tow trucks of cheaper brands.
Office & Parking
For a small service (2 tow trucks) you will need an office for the control room. The optimal area of the room is 15 sq. ... Its rental in Moscow will cost 25-30 thousand rubles. per month, in the regions - 15-17 thousand
You will also need a territory for the temporary placement of the evacuated vehicles (if it is impossible to transport them to the target address). Its optimal area is 100 sq. ... (about 5 parking places). Location is better where there are usually no traffic jams. You can rent a parking lot with such an area for 40-50 thousand rubles. per month (Moscow), 20-25 thousand (regions). Investments are also to be made in the arrangement of the parking lot - about 300 thousand rubles.
Total office and parking costs in the first year: 1-1.2 million rubles. (Moscow), 700-800 thousand (regions).
NameQuantityPrice, RUBTotalComputer120,00020210Printer15,0005000Radio station for 3 points140,00040000GPS equipment135,00035000Total100,000
The main asset of the company will be tow trucks. The optimal option for a novice entrepreneur: GAZ Valdai (cost - 1 million rubles). It can be used to move most cars (which most potential customers drive).
Total investments in equipment and machines: 2.1 million rubles.
Investments: from 500,000 rubles
Payback: from 12 months
The business of providing tow truck services, at first glance, seems primitive and unremarkable. But upon closer examination, it is clear that the idea is profitable and in demand.
It has already been said that the provision of tow truck services is a profitable and demanded business: the reason is that the transportation of broken vehicles is not the only reason for calling. The services of a tow truck are also used when:
- transportation of snowmobiles, quads and similar equipment;
- transportation of portable building structures (mobile garages, trailers, etc.);
- delivery of construction equipment to construction sites (loaders, rollers, etc.).
From the point of view of expediency, this business is one of the best. Statistics show that the demand for cars is growing, and, consequently, the number of motorists is increasing. Since there are no ideal mechanisms, there will always be breakdowns in machines. It remains to use this wisely, realizing the potential for evacuation. At the same time, one should not forget about other customers of similar services. In general, the evacuation business is an entrepreneurial niche with good prospects.
What is needed for implementation
The implementation of evacuation activities is not an easy task, but it can be done step by step by following standard procedures. When deciding to open such a business, an entrepreneur must:
- purchase and insure special equipment. You can start with one tow truck or several. In big cities, it is not rational to have 1 car for the provision of transport services, because the flow of customers is large, and there is not enough equipment. At the same time, in small settlements 1-2 cars are enough. The average cost of a good tow truck varies from 1,500,000 to 3,500,000 rubles (if desired, you can find from 500-700,000). New car or not, imported or domestic - no difference. The main thing is a good technical condition of the equipment and its ability to work for a long time, without problems;
- find a driver for each car. There are no special requirements for drivers. Enough, the rights of categories B, C and the corresponding medical certificate;
- have the necessary documents for official registration. It all depends on the scale of the case being opened. In some cases, it is enough to register an individual entrepreneur, and in others (when opening a legal entity) - having an office, registering with a PF, recruiting personnel, opening a dispatch line, and so on.