How to Start a Towing & Recovery Business in 2019: 8 Steps

A towing and recovery business serves the general public, businesses and municipalities to remove unwanted vehicles out of a property. A big or small towing and recovery business can get profitable. You must have the experience, knowledge and skills of this business and gear to be successful. Additionally, you have to have the devotion to follow your business plan and promote your towing and recovery solutions.

here is 9 steps to start a towing & recovery Business:

1. Publish a business plan

Publish a business plan for the towing and recovery company. Include a list of your expenses, startup costs, assets, licenses, licenses and insurance needed to starting your business.

2. Buy a towing truck and gear

 Purchase other supplies such as traffic cones, floodlights and strobe lights. Locate a place to house the trucks, supplies and towing equipment. Think about leasing storage components for all of the vehicles you recover. Hire workers to control the towing lot. Establish your hours of operation for the business.

3. Secure the correct insurance 

 You need insurance to cover employee’s compensation, traffic injuries and property damage (if automobiles are damaged during the tow).

4. Register your business

Apply for all business licenses and permits required from the state’s Small Business Administration.

5. Towing license from the regional DMV

You must show proof of insurance before you’re able to receive a license. Record all paperwork you submit to the city.

6. Connection

Establish relationships with owners of automobile body shops that may require a towing company to get their clients. Look at towing undesirable vehicles from people’s homes and abandoned automobiles in parking lots at a discounted price.

7. Boost your services at the local police station.

 Try to get on their list for companies that tow and tow vehicles form traffic injuries. Buy a new or used police scanner to listen to police traffic and injury reports. Buy a scanner with an electronics shop or Internet auction. Check your state laws regarding their use. It could be prohibited to use several types of scanners in your area or you might be required to obtain a particular permit.

8. Carry a work cell phone.

Advertise that you can be reached day or night by your customers. This extra service might help distinguish your towing business from the competition in the region.

Prove your mobile phone number in case your newspaper, television or radio advertisements so that the general public can reach you at any time.

More business ideas:


  • Join professional associations such as the Towing and Recovery Association of America for networking and business resources.


Business laws are different in each state. Consult with an attorney when starting your own business.



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