A towing business can earn you a significant amount of money. But is the towing business a viable option? Is it scalable? Although you can scale this business, you will have a fixed expense increase. You will have to buy another tow truck if you are scaling your towing truck company.

Video Source

That means you will have to hire another person to help you with the second tow truck. You will have an increased fixed monthly payment cost if you are financing the tow truck and the monthly payment of having an employee.

So, the barrier entry for scaling is not as easy as you would like because you must hire the right employee. Unfortunately, it is not easy to find the right employee. You will need to do a thorough assessment before getting that employee you so desire to have at your disposal. The employee will also need to take care of the tow truck and maintain it. You will have two trucks to maintain, which can be expensive.

Your geography can also fix you. If you are in a city, you cannot tow a truck in another state. You are limited to your radius, but that will not be that big of an issue because there are probably more tow trucks. Starting this business can be a noble idea if you have the capital to do so.


About The Author

Scroll to Top