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How To Start a Roadside Assistance Business

Roadside assistance is a valuable service to have when you’re stranded on the side of the road. It can help drivers get back on their way quickly and safely. If you’re thinking about starting a roadside assistance business, there are a few things you need to know first.

Here are the 10 steps you can take to get started on building your very own roadside assistance business.

 

10 Steps to Launching a New Roadside Assistance Business

1. Choose Your Type of Roadside Assistance Business

The first step in launching a roadside assistance business is to identify the type of roadside assistance business you want to launch. You might choose from the following types among others: 

  • Towing company
  • Auto glass repair
  • Flat tire repair
  • Jump start services
  • Locksmith

Learn more about the types of roadside assistance businesses.

 

2. Name Your Roadside Assistance Business

Give your roadside assistance business an identity so people will think of it as a well-known and respected brand. You can take the name of your roadside assistance business from your industry, focus on a geographical location, or use your own name among other options.

The main goal for naming your roadside assistance business is to make it sound appealing and trustworthy so customers will be more likely to use your services.

 

3. Determine Your Roadside Assistance Business Model

There are several possible types of business models for a roadside assistance business including:

  1. Per-job: You charge a fee for each job you complete.
  2. Hourly: You charge an hourly rate for your services.
  3. Subscription: Customers pay a monthly or yearly fee for access to your services.
  4. Pay-per-use: Customers are charged per use of your services.

Your business model will likely be determined by the type of roadside assistance business you’re running. For example, a tow truck company will likely use the per-job or hourly model while a locksmith might use the pay-per-use model. 

No matter which model you choose, make sure that it aligns with your business goals and the services you offer.

 

4. Choose a Legal Form for Your Business

By incorporating your roadside assistance business, you will limit your liability. You can incorporate as a Limited Liability Company (LLC), a C Corporation (C-Corp), or an S Corporation (S-Corp). Or you can operate as a sole proprietorship.

The business structure you choose for your roadside assistance business will determine the amount of taxes you pay and which state or federal tax forms you need to file.

Read our article comparing the most common roadside assistance business structures.

 

5. Write a Roadside Assistance Business Plan

All roadside assistance business owners should develop a business plan. 

A business plan is a document that outlines the goals, strategies, and operations of a business. It can be used to secure funding from investors or lenders, as well as to guide the day-to-day operations of the business. The business plan should include information on the company’s products or services, market analysis, financial projections, and management team among other things.

Read our article about how to write a roadside assistance business plan.

 

6. Apply for the Necessary Permits and Licenses

There may be required licenses and permits you need to obtain before launching your roadside assistance business.

For example, if you’re starting a tow truck company, you will need to get a commercial driver’s license (CDL). If you’re starting an auto glass repair business, you will need to get certified by the National Glass Association. And if you’re starting a locksmith business, you will need to get a locksmith license from your state.

You must also register your roadside assistance business as a legal entity with the state where you plan to do business. You can simply file an online form through your Secretary of State website.

Registering with the federal government is also essential so you can properly pay taxes for your business. You will also need an Employer Identification Number (EIN), which you can apply for at the IRS website, if you plan to hire employees.

Read our article about obtaining the proper roadside assistance business licenses.

 

7. Determine Your Budget & Apply for Funding as Needed

In developing your roadside assistance business plan, you will figure out how much funding you need to start and grow your business.

If you have your own funds to invest in your roadside assistance business, you may consider taking advantage of that. In addition to your personal funds, other forms of potential funding for your roadside assistance business include traditional bank loans, SBA loans, credit cards, angel investors and family and friends.

Read our article about the costs associated with starting a roadside assistance business to help you determine if funding is needed. 

Read our article about how to fund your roadside assistance business

 

8. Get the Technology & Software Needed to Run Your Business Efficiently

When you start your roadside assistance business, it’s essential to have the right technology in place to maximize efficiency. You definitely need a computer with Internet access, and accounting software for tracking expenses and revenues. 

You may also want to invest in software specifically designed for your roadside assistance business, like a tow truck software or an auto glass repair software program. This type of software can automate scheduling and dispatch, invoicing and payments, and other important tasks for your business.

Read our article about the technology and software you need to run a roadside assistance business.

 

9. Market Your Roadside Assistance Business to Potential Customers

Before you start selling your services, you have to let the world know you exist. The first step is to create a website so people can learn more about your services and how they benefit them.

After you launch your website, start promoting it through social media channels like Facebook, LinkedIn and Twitter. Also consider networking with other people in the roadside assistance industry through social media and blogs so they can help share your business. 

You also need to start gathering the materials needed to execute on your promotions strategy, which is your strategy for attracting new customers. Roadside assistance businesses should consider the following promotional strategies for which you should start getting prepared: 

  • Develop advertising materials like business cards, flyers and car magnets.
  • Create promotional items like T-shirts, hats, key chains, etc. emblazoned with your company logo to hand out to potential customers.
  • Participate in local events related to your target market.
  • Submit press releases whenever you have newsworthy announcements (e.g., new services, discounts, awards, etc.)

Read our article about how to market your roadside assistance business for more tips.

 

10. Get New Customers & Grow Your Business

When you promote your services, you’ll start to get interest from potential customers

Make sure you’re ready to serve these customers. Also, be sure to establish systems to ensure consistency and reduce costs. And be sure to find and train the right people to help you grow your roadside assistance business.

Read our article about how to effectively grow your roadside assistance business to learn more.

 

Starting a Roadside Assistance Business FAQs

The roadside assistance industry is a $6.3 billion industry that has been growing steadily for the past few years. The growth of the industry is driven by several factors, such as an aging population of baby boomers who are more likely to need roadside assistance, and the increasing number of vehicles on the road.

You should start a roadside assistance business because it’s a great opportunity to be your own boss, make a good living, and help people in need.

To start a successful roadside assistance business, you need to have a strong understanding of the industry and the services you’re offering. You also need to have the right technology in place to run your business efficiently, and effective marketing strategies to get new customers.

To start a roadside assistance business from home you will need a computer with Internet access and accounting software for tracking expenses and revenues. You may also want to invest in software specifically designed for your roadside assistance business, like a tow truck software or an auto glass repair software program. This type of software can automate scheduling and dispatch, and help you manage your business more efficiently.

You will also need to have a phone line dedicated to your business, and a way to take payments from customers (e.g., credit card processor, PayPal account, etc.)

To start a roadside assistance business online you will need to create a website for your business, and promote your website through social media channels and other online marketing strategies. You should also consider networking with other people in the roadside assistance industry so they can help share your business.

You will also need to have the right technology in place to run your business efficiently, and effective marketing strategies to get new customers.

Here are some tips for starting a roadside assistance business:

  1. Research the market
  2. Have the right technology in place.
  3. Promote your business online and offline.
  4. Get new customers and grow your business.

A simple checklist to use when starting a roadside assistance business is as follows:

  1. Choose Your Type of Roadside Assistance Firm: This should be based on what you are best at and how much experience you have. Remember to keep your interests, skills, and experience in mind at all times.
  2. Name Your Roadside Assistance Business: This should be done with care, as your brand is important for attracting the right customers. A simple, memorable name will go a long way.
  3. Choose a Legal Form for Your Business: Whether you choose to become a sole proprietorship, partnership, LLC, corporation or another option will depend on your business. Ensure that you are aware of all the implications of each type.
  4. Determine Your Roadside Assistance Business Model: Determine how your business will make money. Will you sell products, services, or a combination of both?
  5. Write a Roadside Assistance Business Plan: Your business plan will also help you determine what your start-up costs will be and will provide a roadmap with which you can launch and grow.
  6. Apply for the Necessary Permits and Licenses: In most locations you will be required to apply for a business license and/or permits before you can begin operations.
  7. Determine Your Budget & Apply for Funding as Needed: You will need to know how much money you have to spend on all of your business-related expenses before opening any doors. If needed, apply for a small business loan or other funding options.
  8. Get the Technology & Software Needed to Run Your Business Efficiently: You need to have the right tools in place to succeed. Implement software that will help you manage your time, contacts, and business operations in general.
  9. Market Your Roadside Assistance Business to Potential Customers: A solid marketing plan will be crucial to your success. It should focus on attracting the right customers so that you can provide them with the services they truly need. 
  10. Get Customers & Grow Your Business: Once you have a solid marketing plan, it's time to actively pursue and secure those who could benefit the most from your services

 

Summary

Starting a roadside assistance business can be challenging, but with the right tips and tools in place, you can be successful. Make sure to research the market and have a business plan in place before starting out. Additionally, make sure to get the necessary permits and licenses, and promote your business online and offline.