For most people the sight of tow truck business income is not a particularly pleasant one, especially if they are the ones in need of a tow. For business owners, however, they represent a great source of income and a key capital investment. They are used for accidents, repossessions, and other times and places where hauling in a good old fashioned pickup just will not do the job.
Tow Truck Business Income
Tow truck business income were invented in 1916 when a garage worker had the unfortunate experience of having to drag a car out of a creek using nothing but blocks, ropes, and manpower. Today these movers are grouped into several categories, based upon the type of lifting they do. Boom, hook and chain, wheel lift, flatbed, and integrated are all on the road servicing stuck vehicles.
Tow truck business income can range from the low $10,000s for a reasonably working used vehicle all the way up to $81,000 for a top of the line brand new truck just off the assembly line. Either way a person is looking at a major outlay of capital, which is somewhat daunting, especially in these economically-troubled times. Those who are just starting their businesses may want to look at leasing one to start and then purchasing once the business is up and actually generating a profit business income
Tow Trucks – Great For Business Owners
Maintenance is also a key factor. As a source of revenue generation the truck should be kept at the best possible condition at all times. Nothing will decimate revenue (not to mention reduce customer appearance) than having to call a tow truck to pick up another tow truck.
Another area when deciding on truck is the drivers. Almost all jurisdictions require drivers in a towing business to be licensed above and beyond normal resident drivers. State requirements vary, so if an owner of a business does not have a license themselves (which is unlikely) they should study the law to know what is required. Many jurisdictions also require the business to be bonded in case of damage to vehicles that are towed. These examples show that the truck, while a significant outlay of business capital, is not the only outlay.
Tow trucks can bring in a lot of money, but like other investments they can require a lot of money. Proper planning is required to make sure that any business built around towing doesn’t become, to use a phrase, stuck in the financial mud.