How To Start A Roadside Assistance Business

a man providing roadside assistance service

The roadside assistance service industry is booming across the globe as the number of car owners continues to grow. Since car emergencies cannot be avoided and most car owners don’t know what to do during such emergencies, this is a perfect opportunity to invest in becoming a roadside assistance service provider. If you’re interested in learning how to start a roadside assistance business, you’ve come to the right place.

This article serves as your guide to help you get started in the roadside assistance service industry. We will walk you through everything there is to know about the roadside assistance business from the estimated capital to the possible return of investment. However, keep in mind that in this business, your knowledge counts a lot for your success.  

What is Roadside Assistance?

Roadside assistance is a field of business that assists car owners or drivers who have car issues while driving on the road. It is a fact that no matter how careful the car user is or how well maintained their vehicle is, there could still be unexpected car malfunctions along the way. This is where roadside assistance comes in, providing immediate car troubleshooting solutions as fast as possible.

Car Issues Where Roadside Assistance is Needed

Roadside assistance offers a range of services. Here’s list of car issues where roadside assistance is often needed: 

The scope of roadside assistance is broad and is not limited to these issues alone. There is also assistance like car towing, supplying gasoline, starting a dead battery, and more. Such services will surely give the car user a wide option to choose from depending on the need at hand. 

How Much Does It Cost to Start a Roadside Assistance Business?

The cost may differ on the tools and equipment purchased. The tow truck is the most expensive one ranging from $10,000 to $200,000. Then the tools, roadside assistance business insurance, and paperwork will take another $7,000- $10,000.

How Much Does a Roadside Assistance Owner Make?

The income from roadside assistance differs per area. The usual range of profit when starting a roadside assistance business is between $25,000 to 40,000 per year. 

How to Get a Roadside Assistance Business License

As you are about to start a roadside assistance business, you must ensure to procure three (3) licenses to run a car towing business. Here are the following licenses you will need: 

  • First is the Indictment Management, which is required by law enforcement as to the request for moving of the car. 
  • Second is the Private Property, which is used when a tow truck tows a car as requested by a park facility owner. 
  • Then lastly is the Consent Rows, which is used when the car owner requested the tow truck to tow his vehicle. 

How to Start a Roadside Assistance Business

In any kind of business, having enough knowledge of the market is a must. One must research more on the practicability of roadside assistance, study its pros and cons, learn how you can earn money, and how it will work in the long run. The owner should have a roadside assistance business plan as a guide in the implementation of the business.

With this in mind, you might ask about how to start your own roadside assistance business. Here is a checklist you may need.

  1. Customer Care Service – It is essential to make a customer support service to be able to give help and assistance to the customer in need on time. As the owner, you must ensure to provide a designated team for this matter. 
  2. Mobile Vehicle – This is very important for the full operation of the business. This is where you transport all the needed tools, fuel, or machinery required for the services being asked from your company. 
  3. Equipment and Tools – An owner should invest in excellent and heavy-duty equipment and tools as these items are what makes roadside assistance business possible. 
  4. Servicing Machines – These are all equally important things in the business. An example of this is a machine used for filling the air in the flat tire. The must-have machines will always be according to your offered car services.
  5. Towing Vehicle – This is used for picking up cars whose engine does not start. Vehicles are mostly mini trucks or medium-sized trucks.
  6. Mechanic and Manpower – A mechanic who has substantial experience in handling different vehicles is a very important asset in this business. He should be able to deal with the maintenance and repairing of cars. 

Conclusion 

Starting a business can be quite challenging but like any other field of business, you have two choices. It is either you do it from scratch or you take the roadside business assistance franchise.

There will always be advantages and disadvantages whichever way you take. For example, starting a business from scratch means all the profit is yours alone and you will be solely in charge. While a roadside business assistance franchise is already established and has more experience business-wise, it also requires more money and has limits and constraints.

The choice will always be yours! Before starting a roadside assistance business, talk to people who are experts in this field. Seek advice especially in financial estimates. Once you are decided, you must register your business. Registration will help you a lot as you make your company fully equipped through getting certificates of specialization. 

Prepare your financial requirements and invest wisely either through your savings or bank loan. Meanwhile, the return of investment may not happen right away but through guided marketing and advertising, it will come in no time. Once you’ve opened your business, invest your energy in providing excellent services and you will reap the rewards this industry has to offer. 

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Neighborhood Roadside is a New Jersey business based on values of integrity and excellent customer service.

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