How To Start a Tow Truck Business in South Dakota

How To Start a Tow Truck Business in

South Dakota

Wondering how to start a tow truck business in South Dakota? Looking to start a tow trucking business? Nate Jones Entrepreneur is here to help you with a free tow truck business plan below. Starting your tow truck business in South Dakota the correct way is important.

How much does it cost to start a tow truck business?

$60,000 - For a Reliable Used Tow Truck
$15,000 - Annual Cost of Diesel Fuel
$5,000 - for insurance If you need insurance, reach out to Wexford Insurance, they work with a lot of Tow Truck Businesses. wexfordins.com
$200 - for Tow Truck DOT Registration
$200 - for LLC or corporation registration
TOTAL COST TO START: $80,400
TOTAL COST USING FINANCING:
- $15,000 - Down payment on tow truck
- $500 - Down payment on insurance
- $400 - for DOT and LLC
- TOTAL: $20,400

How much a month does it cost to fuel up a tow truck?

$1,000-$1,500 a month = 350-400 gallons of diesel fuel a month

How much money can you make with a tow truck business?

The average revenue per load for a tow truck is $75 - $125 per load
The average number of loads a tow truck can haul a day is 6-7 tows.
If you drive a tow truck 6 days a week you would have 42 tows a week.
- Hauling 168 towing a week would make $4,200 a week on average.
On a monthly basis, your tow truck business would make $16,800 a month
On an annual basis, your tow truck business would make $202,000 a year
As you scale your tow truck business, you can continue to make more money by buying more trucks with the expense of hiring a tow truck driver.

Are Tow Truck Businesses Profitable?

Yes, a single tow truck can make around $16,800 a month. With monthly expenses (loan, insurance, fuel, etc) of around $4,500-$5,500 a month a tow truck business can profit around $11,500-$12,000 a month.
A tow truck business can profit around $135,000 - $140,000 a year with one tow truck.

Types of Tow Truck Businesses:

Flatbed Tow Truck
Hook and Chain Tow Truck
Wheel-Lift Tow Truck
Boom Truck
Integrated Tow Truck

Positives of a Tow Truck Business

This Business is always needed. Cars will always be breaking down or wrecked on the side of the road.
This business can be scaled. You can continue to add more tow trucks and grow your business.

How to Start a Tow Truck Business

Save up money for down payments on a tow truck
Form your LLC with the Federal Government and Local Government
Obtain a DOT Number from the FMCSA
Purchase Insurance
Make connections with local police authorities, garages, create a website with SEO, tow truck companies, and tow brokers.
Run your business!

Sioux Falls - Rapid City - Aberdeen - Brookings - Watertown - Mitchell

Need the Complete Guide?

If you are wanting to successfully launch and scale a tow truck business, you will need this E-Book. In this book we review the following topics:

Business Planning for a Tow Truck Business
Legal and Regulatory Requirements for Tow Trucks
How to finance and acquire tow trucks
How acquire loads and market your tow truck company
How to manage your finances and bookkeep your tow truck business
How to set up and scale your tow truck business.