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Investing in FL Tow Trucks & Pickup Trucks

20 January 2018 No Comment

Investing in Florida tow trucks is a rewarding business venture. Besides offering emergency roadside assistance to drivers who are stuck after an accident or car malfunction, there are a thousand cases of stranded vehicles left on the road, breakdowns, and illegally-parked cars. As a tow truck company, you will help in transporting these vehicles to impoundment lots, repair shops, or other locations as directed. However, before you venture into this business, here are 4 essential things you should know.

Start Small

The biggest mistake that new business owners make is to buy a fleet of pricey pickup trucks in their first month of operation. Fluctuations in fabrication costs, fuel prices, employee expenses, and supplies can be unstable for the new business owner, and you should thus prepare for the unexpected. Thus, keeping your truck payments and other significant costs to a minimum in your first year of operation is a slow but could be the wisest path to success.

Depending on the area you are servicing, you can start with a single truck and try to find your circle of customers among mechanics, local government agencies, car dealerships, and apartment management firms. As your range of customers and business expands, so should you increase your fleet of trucks.

Get Proper Driver’s License Class

The 2018 FL traffic laws require you to have a Class B driver’s license from DMV to operate pickup trucks. Thus, ensure that the driver you hire has the necessary qualification from a Florida traffic school, passes all the drug-screening tests and maintains a clean driving record. The Driver’s licenses should be valid and not expired, revoked, or suspended at the time s/he is on duty. Other states require your driver to undergo a background and fingerprint checks and have a current child-support payment record, if divorced.

Register with the State

Every business must have a valid registration. Depending on the three general business structures: a sole proprietor “doing business as” entity, a limited liability company, and a corporation, you should acquire the appropriate registration. Speak with your tax adviser about the best structure for your towing business. To register for DBA, visit your county clerk’s office to tender your business name registration, but if you want to register for the other two structures, you will be required to register online through the secretary of state portal. When your entity formation is approved, move to the IRS website to apply for a federal tax identification number.

Hire Qualified Personnel

A good number of tow truck companies prefer drivers with high school diplomas or GED equivalents. They should also have specialized training from a Florida traffic school, an excellent driving record and have the advantage of being familiar with car repair to be able to ascertain the cause of a vehicle’s problem. Once fully certified, they should be able to drive all or any of three types of pickup trucks; a conventional low truck with hook and sling, a flatbed truck; that is used for towing higher-end cars, and a full-float truck or wheel-lift; which uses winches to lift vehicles off the ground and places wheels beneath the axles so it can be towed.

Bottom Line

A towing business gives the chance to save a driver who needs you to tow his/her car, deliver fuel, jump-start a dead battery, change a tire, or provide lockout assistance. However, for the business to be successful, you need a carefully-thought-out plan and well-maintained trucks that are fully equipped to serve your target market. With that, you can increase your income potential by looking for multiple business sources that will allow you to serve your passion.

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