roadside assistance business plan

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Roadside Assistance Business Plan

The extensive marketplace, exciting money, and flexibility of operations make roadside assistance a lucrative business model for anyone looking for new business opportunities.

Anyone can start a new business, but you need a detailed business plan to beat the severe competition and scale the business like a pro.

Need help writing a business plan for your roadside assistance business? You’re at the right place. Our roadside assistance business plan template will help you get started.

Free Business Plan Template

Download our free roadside assistance business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write A Roadside Assistance Business Plan?

Writing a roadside assistance business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

• Introduce your Business: Start your executive summary by briefly introducing your business to your readers.This section may include the name of your roadside assistance business, its location, when it was founded, the type of roadside assistance business (E.g., standard roadside assistance, premium roadside assistance, recreational vehicle roadside assistance), etc.
• Market Opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
• Products and Services: Highlight the roadside assistance services you offer your clients. The USPs and differentiators you offer are always a plus.For instance, you may include towing, dead battery jump start, tire changing, and lockout assistance as services and mention eco-friendly practices and concierge services as some of your USPs.
• Marketing & Sales Strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
• Financial Highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
• Call to Action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

• Standard roadside assistance
• Recreational vehicle roadside assistance
• Commercial roadside assistance
• Premium roadside assistance
• Describe the legal structure of your roadside assistance company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.
• Owners: List the names of founders or owners at your roadside assistance company. Describe what shares they own and their responsibilities for efficiently managing the business.
• Mission Statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

• Target market: Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.For instance, individual commuters, uninformed drivers, and road trip travelers would be an ideal target audience for a premium roadside assistance business.
• Market size and growth potential: Describe your market size and growth potential and whether you will target a niche or a much broader market.For instance, a billion-dollar roadside assistance market shows a promising growth rate for premium service providers. Tapping into this niche market can turn into a profitable business venture if planned properly.
• Competitive Analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your roadside assistance services from them. Point out how you have a competitive edge in the market.
• Market Trends: Analyze emerging trends in the industry, such as vehicle telematics technology, mobile applications, etc. Explain how your business will cope with all the trends.For instance, premium roadside assistance has a booming market; explain how you plan on dealing with this potential growth opportunity.
• Regulatory Environment: List regulations and licensing requirements that may affect your roadside assistance company, such as business licensing, compliance with FMCSR, tow truck licensing, environmental regulations, compliance with consumer protection laws, etc.

Here are a few tips for writing the market analysis section of your roadside assistance business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

• Tire changing
• Fuel delivery
• Mobile mechanic services
• Battery replacement
• Dead battery jump start
• Quality measures: This section should explain how you maintain quality standards and consistently provide the highest quality service.This may include regular maintenance of equipment and vehicles, adherence to service standards and protocols, and timely training for the service staff.
• Additional Services: Mention if your roadside assistance company offers any additional services. You may include concierge services, related insurance, law enforcement services, real-time tracking, etc.

In short, this section of your roadside assistance plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

• Unique Selling Proposition (USP): Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.For example, advanced telematics integration for vehicle health monitoring, Real-time GPS tracking, and mobile applications for service requests could be some of the great USPs for a professional roadside assistance company.
• Pricing Strategy: Describe your pricing strategy—how you plan to price your assistance services and stay competitive in the local market. You can mention membership and subscription plans you plan on offering to attract and retain customers in your assistance business.
• Marketing Strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—partnerships and affiliations, vehicle signage, social media marketing, Google ads, brochures, email marketing, content marketing, and print marketing.
• Sales Strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include collaboration with insurance companies, auto repair shops and car dealerships, referral programs, customized sales proposals, demonstrations, and trials, etc.
• Customer Retention: Describe your customer retention strategies and how you plan to execute them. For instance, introducing loyalty programs, memberships, subscriptions, referral discounts, etc.

Overall, this section of your roadside assistance business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your roadside assistance business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

• Staffing & Training: Mention your roadside assistance business’s staffing requirements, including the number of employees, vehicle operators, servicemen, CSR, and repair technicians needed. Include their qualifications, the training required, and the duties they will perform.
• Operational Process: Outline the processes and procedures you will use to run your roadside assistance business. Your operational processes may include answering emergency calls, routing, and tracking, providing roadside assistance, documentation, and billing insurance companies.
• Equipment & Machinery: Include the list of equipment and machinery required for roadside assistance, such as repair tools, vehicles, tow trucks, office equipment, etc.Explain how these technologies help you maintain quality standards and improve the efficiency of your business operations.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your roadside assistance business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

• Founders/CEO: Mention the founders and CEO of your roadside assistance company, and describe their roles and responsibilities in successfully running the business.
• Key managers: Introduce your management and key members of your team, and explain their roles and responsibilities.It should include, key executives(e.g. COO, CMO), senior management, and other department managers (e.g. operations manager, customer services manager.) involved in the roadside assistance business operations, including their education, professional background, and any relevant experience in the assistance industry.
• Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
• Compensation Plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.
• Advisors/Consultants: Mentioning advisors or consultants in your business plans adds credibility to your business idea.So, if you have any advisors or consultants, include them with their names and brief information about roles and years of experience.

This section should describe the key personnel for your roadside assistance services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

• Profit & loss statement: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement. Make sure to include your business’s expected net profit or loss.
• Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
• Balance Sheet: Create a projected balance sheet documenting your roadside assistance business’s assets, liabilities, and equity.
• Break-even point: Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.This exercise will help you understand how much revenue you need to generate to sustain or be profitable.
• Financing Needs: Calculate costs associated with starting a roadside assistance business, and estimate your financing needs and how much capital you need to raise to operate your business. Be specific about your short-term and long-term financing requirements, such as investment capital or loans.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the roadside assistance industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your roadside assistance business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample roadside assistance business plan will provide an idea for writing a successful roadside assistance plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our roadside assistance business plan pdf .

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Frequently asked questions, why do you need a roadside assistance business plan.

A business plan is an essential tool for anyone looking to start or run a successful roadside assistance business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your roadside assistance company.

How to get funding for your roadside assistance business?

There are several ways to get funding for your roadside assistance business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

What is the easiest way to write your roadside assistance business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any roadside assistance business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

How do I write a good market analysis in a roadside assistance business plan?

Market analysis is one of the key components of your business plan that requires deep research and a thorough understanding of your industry. We can categorize the process of writing a good market analysis section into the following steps:

• Stating the objective of your market analysis—e.g., investor funding.
• Industry study—market size, growth potential, market trends, etc.
• Identifying target market—based on user behavior and demographics.
• Analyzing direct and indirect competitors.
• Calculating market share—understanding TAM, SAM, and SOM.
• Knowing regulations and restrictions
• Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

How detailed should the financial projections be in my roadside assistance business plan?

The level of detail of the financial projections of your roadside assistance business may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a comprehensive view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

Can a good roadside assistance business plan help me secure funding?

Indeed. A well-crafted roadside assistance business will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.

So, if you have a profitable and investable business, a comprehensive business plan can certainly help you secure your business funding.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Roadside Assistance Business

Back to All Business Ideas

A Step-by-Step Guide to Starting a Roadside Assistance Business

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on February 16, 2022 Updated on July 21, 2024

Investment range

$8,550 - $17,100

Revenue potential

$80,000 - $600,000 p.a.

Time to build

1 – 3 months

Profit potential

$55,000 - $120,000 p.a.

Industry trend

When starting your roadside assistance business, keep these essential aspects in mind:

• Specialization — Decide on the types of roadside assistance services you will offer, such as towing, jump-starts, tire changes, fuel delivery, lockout services, and minor mechanical repairs.
• Licenses and permits — Depending on your location, you may need a specific towing license or permit . Ensure all drivers have valid driver’s licenses, and consider obtaining commercial driver’s licenses (CDLs) if required.
• Service vehicles and equipment — Invest in reliable service vehicles, such as tow trucks, flatbed trucks, and service vans equipped with necessary tools and equipment. Stock up on essential tools and supplies, such as jacks, tire irons, jumper cables, fuel containers, lockout kits, and safety gear.
• Dispatch center — Set up a dispatch center to handle incoming service requests and coordinate with field technicians to provide timely assistance.
• Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately using ZenBusiness LLC formation service or hire one of the best LLC services on the market.
• Legal business aspects — Register for taxes, open a business bank account, and get an EIN .
• Industry associations — Join professional associations such as the Towing and Recovery Association of America (TRAA) to network with other professionals, gain access to resources, and stay updated on industry trends.
• Partnerships — Build relationships with local auto repair shops, insurance companies, and car dealerships to generate referrals and collaborate on projects.
• Mobile apps — Consider developing a mobile app to make it easier for customers to request assistance and track service status.

Interactive Checklist at your fingertips—begin your roadside assistance business today!

You May Also Wonder:

Can a roadside assistance be profitable?

You can make $100 to $125 per tow, sometimes more, and you can charge up to $300 for some services. This can add up to several hundred dollars or more per day, so you can definitely make good money.

How can I create a brand identity for my roadside assistance business?

To create a brand identity for your roadside assistance business, start by defining your target market and unique selling points. Develop a professional logo and visual identity that reflects reliability and trustworthiness. Create a compelling tagline or mission statement that communicates the value you provide. Use consistent branding across your website, marketing materials, and service vehicles. Incorporate your brand values into every customer interaction to build a strong and recognizable brand identity.

How can I attract clients and market my roadside assistance services?

To attract clients and market your roadside assistance services, utilize online platforms and social media to showcase your services and expertise. Optimize your website for search engines to improve online visibility. Offer competitive pricing packages and promotions to attract new clients. Network with local auto repair shops, insurance companies, and vehicle dealerships to build relationships and obtain referrals. Utilize targeted online advertising, such as local directories or pay-per-click campaigns, to reach potential clients in your service area. 

What safety measures should I take while providing roadside assistance?

Implement safety protocols and provide proper training to your staff. Equip service vehicles with safety equipment such as warning triangles, reflective vests, and emergency road flares. Adhere to traffic laws and maintain situational awareness while working on the roadside. 

What types of roadside assistance services can a business provide?

A roadside assistance business can provide various services, including battery jump-starts, tire changes, fuel delivery, lockout assistance, vehicle towing, and vehicle extrication from mud or snow. Additionally, some businesses offer on-the-spot minor repairs, spare key assistance, or transportation for stranded individuals.

Can I start roadside assistance on the side?

Yes, it is possible to start a roadside assistance business on the side. Starting part-time allows you to test the market, build your client base, and refine your services while maintaining other commitments. However, ensure that you have the necessary resources, such as reliable vehicles and proper insurance coverage. Develop a flexible schedule and manage your availability to accommodate roadside assistance requests. 

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a roadside assistance business has pros and cons to consider before deciding if it’s right for you. 

• Good Money – Nice revenue, low ongoing expenses
• Large Market – Cars are always going to break down
• Flexibility – Run the business from home
• Stiff Competition – Compete with the likes of AAA
• High Startup Costs – Tow trucks are expensive

Roadside Assistance Industry trends

Industry size and growth.

• Industry size – The US towing industry was worth $11.3 billion in 2022.(( https://www.ibisworld.com/united-states/market-research-reports/automobile-towing-industry/ ))
• Industry growth – The US towing industry has grown at a 5.5% annual rate the last 5 years.(( https://www.ibisworld.com/industry-statistics/market-size/automobile-towing-united-states/ )) 
• Number of businesses – There are 47,618 towing businesses in the US.
• Number of people employed – There are 113,885 people employed in the towing industry in the US.

Trends and challenges

Trends in the roadside assistance industry include:

• People want greater convenience through mobile apps on which they can order roadside assistance, presenting an opportunity for the tech-savvy entrepreneur.
• Mobile fuel delivery is growing in popularity, presenting an opportunity for roadside assistance companies to expand their services.

Challenges in the roadside assistance industry include:

• Physical danger is a constant problem, with an estimated 60 tow truck drivers killed on the roadside each year. 
• Rising insurance and fuel prices are cutting into the profit margins of roadside assistance businesses.

Demand hotspots

• Most popular states – The best states for roadside assistance businesses are Rhode Island, Vermont, and New Hampshire.(( https://www.zippia.com/tow-truck-driver-jobs/best-states/ ))
• Least popular states – The least favorable states for roadside assistance businesses are Florida, Texas, and Louisiana.

What kind of people work in Roadside Assistance?

• Gender – 91.3% of tow truck drivers are male, while 5.5% are female.(( https://www.zippia.com/tow-truck-driver-jobs/demographics/ ))
• Average level of education – The average tow truck driver is high school educated.
• Average age -The average tow truck driver in the US is 48.2 years old.

How much does it cost to start a roadside assistance business?

Startup costs for a roadside assistance business range from $8,500 – $17,000. The main expenses are for the down payment on a tow truck and tools. You can also take online courses and learn to be a tow truck driver in just 2 weeks for about $100. 

You’ll need a handful of items to successfully launch your roadside assistance business, including: 

• Battery pack
• Jumper cables
• Pull up lockout tool
• Lockout kit
• Breaker bar
• Lug nut removers
• Power inverter
• Screwdrivers
• Tire plug equipment
• Battery analyzer

How much can you earn from a roadside assistance business?

The average price of a tow is about $110, which includes a $75 hook-up charge and $2-$4 per mile. Other services might cost from $50 to $300. Your profit margin after fuel and insurance should be about 70%.

In your first year or two, you could work from home and respond to two calls a day, bringing in more than $80,000 in annual revenue. This would mean over $55,000 in profit, assuming that 70% margin. As your business gains traction, the daily number of roadside services could climb to 15. At this stage, you’d add trucks, rent commercial space, and hire drivers and other staff, reducing your profit margin to 20%. With annual revenue of $600,000, you’d make a tidy profit of $120,000.

What barriers to entry are there?

There are a few barriers to entry for a roadside assistance business. Your biggest challenges will be:

• The costs of a tow truck and tools
• Standing out and attracting clients in a saturated market

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Step 2: hone your idea.

Now that you know what’s involved in starting a roadside assistance business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research roadside assistance businesses in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a 24-hour roadside fuel delivery service. 

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as charging batteries or changing tires.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your services

Your services will depend on your skills and equipment but could include:

• Dead battery jump start
• Tire changing
• Lockout assistance
• Fuel delivery
• Mobile mechanic services
• Battery replacement

How much should you charge for roadside assistance services?

The price of towing is generally a $75 hook-up fee plus $2 to $4 per mile. Prices for other services range from $50 to $300. Your ongoing expenses will be for fuel and insurance when you’re working as a solopreneur, so you should aim for a profit margin of about 70%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be extremely broad. You should spread out your marketing to sites like TikTok, Instagram, Facebook, and LinkedIn. You could also go to your local police department to get added to their referral list. 

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office. Find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Roadside Assistance Business Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “roadside service” or “roadside assistance”, boosts SEO
• Name should allow for expansion, for ex: “Roadside Rescuers” over “Towing Titans”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Roadside Assistance Business Plan

Here are the key components of a business plan:

• Executive Summary: Present an overview of your roadside assistance business, detailing the services you will provide and how you plan to quickly and efficiently assist stranded motorists.
• Business Overview: Describe the scope of your roadside assistance services, which could include emergency towing, tire changes, fuel delivery, and lockout services.
• Product and Services: List the specific services you offer to drivers in need, emphasizing any unique offerings like on-the-spot repairs or 24/7 availability.
• Market Analysis: Analyze the demand for roadside assistance in your chosen area, considering factors like traffic volume and vehicle ownership rates.
• Competitive Analysis: Identify other roadside assistance providers and highlight how your service will be faster, more reliable, or more affordable.
• Sales and Marketing: Outline how you will reach potential customers, perhaps through partnerships with auto insurers, local advertising, or digital marketing strategies.
• Management Team: Introduce the team behind the business, focusing on experience in automotive services, customer service, and operations management.
• Operations Plan: Detail the logistics of service delivery, including dispatch operations, fleet management, and response time targets.
• Financial Plan: Summarize the financial aspects such as startup costs, pricing strategy, projected revenues, and profitability timelines.
• Appendix: Include supplementary documents like contracts, service protocols, or affiliations with auto repair shops that support your business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to roadside assistance businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your roadside assistance business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans : This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans : The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants : A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family : Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding : Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal : Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a roadside assistance business. You might also try crowdfunding if you have an innovative concept. 

Step 8: Apply for Roadside Assistance Business Licenses and Permits

Starting a roadside assistance business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your roadside assistance business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability : The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property : Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance : Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation : Provides compensation to employees injured on the job.
• Property : Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto : Protection for your company-owned vehicle.
• Professional liability : Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP) : This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as Tracker , towbook , or Beacon , to manage your dispatching, costs, truck inventory, invoicing, and payments.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Here are some powerful digital marketing strategies for your future business:

• Local Partnerships: Forge alliances with local auto repair shops, gas stations, and car dealerships to establish a network of referral sources, offering them exclusive discounts for their customers.
• Fleet Programs: Target businesses with vehicle fleets by offering customized roadside assistance packages, providing cost-effective solutions for companies looking to ensure their vehicles are always operational.
• Social Media Campaigns: Leverage social media platforms to share engaging content such as quick roadside tips, success stories, and time-limited promotions, creating a community around your brand.
• Branded Service Vehicles: Ensure your roadside assistance vehicles are prominently branded, turning them into rolling advertisements that attract attention and instill confidence in potential customers.
• Customer Loyalty Programs: Implement a loyalty program rewarding repeat customers with discounts, free services, or exclusive perks, encouraging them to choose your service consistently.
• 24/7 Call Center Visibility: Highlight your 24/7 call center in marketing materials, emphasizing the immediate availability of assistance and instilling trust in potential customers.
• Geo-Targeted Online Ads: Use online advertising platforms to target specific geographic areas, ensuring that your ads reach drivers in locations where your services are most needed.
• Discounts for New Movers: Partner with real estate agencies to offer special discounts to individuals who have recently moved to the area, creating a positive impression during their transition.
• Community Events Sponsorship: Sponsor local events, fairs, or sports activities to increase brand visibility, and consider offering on-site assistance or workshops to showcase your expertise.
• Customer Testimonials: Showcase satisfied customer testimonials on your marketing materials and online platforms to build trust and credibility, demonstrating your track record of reliable service.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your roadside assistance business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your roadside assistance business could be: 

• Back on the road in 90 minutes, guaranteed!
• We’ll fix your tire blowouts, lockouts, dead batteries, and more
• Comprehensive roadside assistance available 24/7

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a roadside assistance business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in roadside assistance for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in roadside assistance. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a roadside assistance business include:

• Tow Truck Drivers – tow services, other vehicle services
• Dispatcher – take customer calls, dispatch drivers
• General Manager – staff management, accounting
• Marketing Lead — SEO strategies, social media 

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Roadside Assistance Business – Start Making Money!

Few things are worse than being stranded on the side of the road. Unless it starts raining. But you could be the hero who swoops in to save the day with your own roadside assistance business. You’re off to a great start with all the business savvy you’ve learned here, now it’s time to hit the road and start building your roadside assistance empire! 

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Roadside Assistance Business Name
• Create a Roadside Assistance Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Roadside Assistance Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Roadside Assistance Business - Start Making Money!

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How To Write a Winning Roadside Assistance Business Plan plus Template

Creating a business plan is essential for any business, but it can be especially helpful for roadside assistance businesses who want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every roadside assistance business owner should include in their business plan.

Download the Ultimate Business Plan Template

What is a Roadside Assistance Business Plan?

A roadside assistance business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Roadside Assistance Business Plan?

A roadside assistance business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Roadside Assistance Business Plan

The following are the key components of a successful roadside assistance business plan:

Executive Summary

The executive summary of a roadside assistance business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your roadside assistance company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your roadside assistance business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your roadside assistance firm, mention this.

Industry Analysis

The industry or market analysis is an important component of a roadside assistance business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the roadside assistance industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a roadside assistance business’ customers may include:

• Private motorists who are stranded on the side of the road
• Commercial trucking companies whose vehicles have broken down
• Taxis and other ride-sharing services that have experienced a mechanical issue
• Motorcycle riders who need help getting their bikes towed 

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or roadside assistance services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, or launch a direct mail campaign. Or you may promote your roadside assistance business via word-of-mouth marketing, or by exhibiting at trade shows.

Operations Plan

This part of your roadside assistance business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a roadside assistance business include reaching $X in sales. Other examples include adding a new service, launching a new product, expanding to a new location, and hiring key personnel.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific roadside assistance industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Roadside Assistance Company

Balance Sheet

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Roadside Assistance Company

Cash Flow Statement

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup roadside assistance business.

Sample Cash Flow Statement for a Startup Roadside Assistance Company

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your roadside assistance company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

Be sure to include competitive analysis, management team bios, and financial projections in your business plan. A successful roadside assistance business plan can attract investors.  

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With our Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

How to Start a Roadside Assistance Business

Starting a roadside assistance business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful roadside assistance business.

Importantly, a critical step in starting a roadside assistance business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start a Roadside Assistance Business :

• Choose the Name for Your Roadside Assistance Business
• Develop Your Roadside Assistance Business Plan
• Choose the Legal Structure for Your Roadside Assistance Business
• Secure Startup Funding for Your Roadside Assistance Business (If Needed)
• Secure a Location for Your Business
• Register Your Roadside Assistance Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Roadside Assistance Business
• Buy or Lease the Right Roadside Assistance Business Equipment
• Develop Your Roadside Assistance Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Roadside Assistance Business
• Open for Business

1. Choose the Name for Your Roadside Assistance Business

The first step to starting a roadside assistance business is to choose your own business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your own roadside assistance business:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your own roadside assistance company.

2. Develop Your Roadside Assistance Business Plan

One of the most important steps in starting a roadside assistance business is to develop your roadside assistance business plan . The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your roadside assistance business.
• Company Overview – this section tells the reader about the history of your roadside assistance business and what type of roadside assistance business you operate. For example, are you a tow truck service, tire changing and repair service, jump start service, or a locksmith? 
• Industry Analysis – here you will document key information about the roadside assistance industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing services like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer 
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your roadside assistance business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your roadside assistance business make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

Finish Your Business Plan Today!

3. choose the legal structure for your roadside assistance business.

Next you need to choose a legal structure for your roadside assistance business and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the owner of the roadside assistance business and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a roadside assistance business together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a roadside assistance business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a roadside assistance business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your roadside assistance business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

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4. Secure Startup Funding for Your Roadside Assistance Business (If Needed)

In developing your roadside assistance business plan , you might have determined that you need to raise funding to launch your business. 

If so, the main sources of funding for a roadside assistance business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a roadside assistance business that they believe has high potential for growth.

5. Secure a Location for Your Business

The best way to find a location for your roadside assistance business is to look for areas with significant traffic. You’ll want to be in a place where there are a lot of opportunities to help stranded drivers. Additionally, you’ll want to ensure the area has ample parking or space along the side of the road to safely and efficiently help drivers.

6. Register Your Roadside Assistance Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your roadside assistance business’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your roadside assistance business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

Licenses and permits required to start a roadside assistance business vary by state. However, some common licenses and permits needed include a business license and a state-issued permit to operate a roadside assistance service.

10. Get Business Insurance for Your Roadside Assistance Business

There are a few different types of insurance you may need to operate a roadside assistance business.

Some business insurance policies you should consider for your roadside assistance business include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Auto insurance : This type of insurance from major auto insurance companies will cover if a vehicle is damaged or stolen.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
• Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
• Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance company, tell them about your business and its needs, and they will recommend policies that fit those needs. 

11. Buy or Lease the Right Roadside Assistance Business Equipment

The most important piece of equipment for any roadside assistance business is a tow truck. Other necessary items include cones, warning triangles, a first-aid kit, and a fire extinguisher. You will also need a variety of automotive tools, including jumper cables, a socket set, and a tire jack. 

12. Develop Your Roadside Assistance Business Marketing Materials

Marketing materials will be required to attract and retain customers to your roadside service company.

The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your roadside assistance business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website : Likewise, a professional roadside assistance business website provides potential customers with information about the services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your roadside assistance business.

13. Purchase and Setup the Software Needed to Run Your Roadside Assistance Business

There are a few software programs you will need to run a roadside assistance business. You will need a customer service program, an accounting program, and a dispatch program. You will also need a GPS system to track your service vehicles.

14. Open for Business

You are now ready to open your roadside assistance business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

How to Finish Your Ultimate Business Plan in 1 Day!

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How to Start a Roadside Assistance Business FAQs

Is it hard to start a roadside assistance business.

No, it's not hard to start a roadside assistance business. However, it is important to have a clear business plan and to be able to execute that plan effectively.

How can I start a roadside assistance business with no experience?

You can do a few things to get started in a roadside assistance business with no experience. First, research what it takes to start a business in this industry. Many resources are available online and through your local library or business association. Also, consider attending an entrepreneur workshop or seminar to gain more insight into the process. Additionally, you can network with other business owners in this industry to gain valuable tips and advice.

What type of roadside assistance business is most profitable?

The most profitable type of roadside assistance business is a towing business. This type of business can make a lot of money because there is consistently significant demand for towing services. There are a lot of accidents and breakdowns that happen, so there is always a need for weight truck towing.

How much does it cost to start a roadside assistance business?

The business startup costs will vary depending on the size and scope of the roadside assistance business. However, basic expenses can range from $500-$5,000, which would include items such as insurance, permits, and marketing materials. The purchase of a tow truck, equipment, and facilities would greatly increase these startup costs. 

What are the ongoing expenses for a roadside assistance business?

The ongoing expenses for a roadside assistance business can include marketing, insurance, and employee costs. The business may also need to regularly purchase supplies and equipment. Other ongoing costs can include leasing or renting a facility.

How does a roadside assistance business make money?

Roadside assistance businesses make money by charging a fee for their roadside assistance services. They typically charge a flat rate, regardless of the distance traveled or the amount of time it takes to resolve the issue. Some businesses also offer memberships, which allow customers to receive roadside assistance for a discounted price.

Is owning a roadside assistance business profitable?

Yes, roadside assistance is profitable because it's an essential service people need when their cars break down. Most people are happy to pay for the peace of mind of knowing that someone will be there to help them when they need it. Additionally, roadside assistance businesses often have low overhead costs, allowing them to profit even when they don't have many customers. For these reasons, a roadside assistance business can be a reliable and profitable business to own.

Why do roadside assistance businesses fail?

There are many reasons roadside assistance businesses fail. One of the most common reasons is because the business does not have a solid business plan. Other reasons include lack of funding, poor customer service, and lack of effective marketing.

Other Helpful Business Plan Articles & Templates

The Step By Step Guide: How To Start Your Own Business

How to Start a Roadside Assistance Business

Roadside assistance business involves assisting travelers who got in trouble for some reason and require some help. For instance, imagine you are in your car moving on the road, and all of a sudden, your car’s engine broke. It is where the roadside assistance business comes into play.  

What is Roadside Assistance Business?

Breakdown coverage and roadside assistance businesses provide services that help bicyclists or motorists who got into trouble due to mechanical failure. You can ask for help if your car won’t start, the tire gets flattened, run out of fuel, or any electrical or mechanical failure. 

They will assist you with your problem and, in turn, charge a specific amount depending on the services provided. Presently, the roadside assistance business has quickly moved in a new direction and become an exciting investment realm for investors. 

This business is not restricted to car support but has an extensive scope depending on different locations and different problems. Some are simple issues that easily get solved, while some problems require expert assistance, and roadside assistants are here to help.

How to Start Roadside Assistance Business?

Starting a roadside assistance business is a high-earning and profitable business. Many people feel frustrated when their vehicle breaks down in the middle of nowhere as they don’t have any way to fix their vehicle. Here are some things to consider and steps to start a roadside assistance business.

Study the market

‍ The roadside assistance business market is different from the rest. You are also new to this trade, so it is good to study the market before stepping into it. You will have to perform a feasibility study for your planned business.

Feasibility analysis comprises a deep reach about the matter by examining all aspects of the business, its advantages and disadvantages, and recommendations on how a business can work. 

It also tells about making the profit from the business, challenges faced in a particular business, and the required budget to start up. The resulting report from the feasibility analysis will help you decide where to establish your business.

Business plan

Studying the market will help you devise a business plan. It will have all the details regarding your new roadside assistance business. A business plan will carry some crucial points, including:

• Necessary steps to start your company
• Outline of your new business
• Required capital
• Required staffing
• Required resources
• Possible challenges faced in your business
• Return on investment

Making a business plan is essential as it tells you the way to work ahead on your business. It will also help invite investors and seek loans from banks.

Select Your Areas of Expertise

Before you establish your own company, select your specific niche. You will have to identify your expertise. Here are some areas of expertise in the roadside assistance business:

• Flat tire service
• Battery jump start service
• Garage service
• Roadside assistance facility 
• Fuel filling service
• Light truck towing facility
• Car towing facility
• Two-wheeler towing service

If you have low capital to invest in the business, you can begin with single business expertise. Choose the low-cost expertise if you have a low budget.

Learn From the Competition in The Market

Choose the location where competition is less. You can’t expect your business to thrive in an area where dozens of competing businesses are already operating. Customers generally opt for popular roadside assistance services in a specific area. So, look for a less competitive area for your new business.

Select the Right Location for your Business

Build your office at a place where it is easy to reach customers. Choose a less competitive place except for the competitive location as it will require fewer struggles. Newly built roads have fewer or no road support services, and you can select such areas to offer your services to travelers. 

Requirements for Roadside Assistance Business

You are planning to start a new roadside assistance business. So, you will need to have everything you require for the startup, such as vehicles, staffing, fuel, mechanical tools, mobile vehicles, etc.

Here are some requirements for a roadside assistance business:

The main thing you will require for a roadside assistance business is a vehicle to reach customers at their location. The mobile vehicle should have the necessary mechanical tools, staffing, and a full fuel tank. A typical vehicle like a van can also assist the clients.

Customer Care Service Center

You will need to create a center for customer service. It involves a helpline number and a mobile app where customers can contact you for help. It will help you provide information regarding your business to the customers and solve their issues. Your business will receive more responses if you have good customer care service. 

You will also need a towing vehicle. It is an automobile that is used in situations when no other vehicle can move on its own. If an accident occurs, a towing vehicle will be required to tie the vehicle. Getting a towing vehicle will also require a truck or tempo.  ‍

Tools and Equipment

Mechanical equipment is a necessary part of a roadside assistance business. If you don’t know about the required tools, you can get them with the assistance of a professional mechanic. If your business is specifically for bikes or cars, you will have to get tools, particularly for these vehicles.

How to Market a Roadside Assistance Business

If you have started a new roadside assistance business, it is important to let consumers know about your company. You can directly market your services to users. However, a more frequently used tactic is to advertise your startup to well-known roadside assistance platforms like local auto dealers, insurance companies, and more.

Every business has its way of becoming an accepted roadside assistance service. But, you will have to ascertain that your new business can offer high-class roadside assistance services to travelers in their preferred location.

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How to Start a Roadside Assistance Business in 7 Simple Steps

If you are interested in starting a roadside assistance business, but don’t know how to begin, you are in the right place.

In this article, I am going to cover how you can start your own roadside assistance business in 7 simple steps.

We will discuss each critical step of the process, from formation of your business entity and preliminary market analysis, all the way to launch (and how to sustain your business via strong marketing and online platforms that will send a steady stream of jobs your way).

We’ll start by answering some key introductory questions including (i) what are roadside assistance businesses (and what services do they offer), (ii) how much money do they make, and (iii) how much do they cost to start.

We’ve got a lot to cover, so let’s get into it!

This post may contain affiliate links. If you click on a link and complete a transaction, I may make a small commission at no extra cost to you. 

The information contained in this post is for informational purposes only.  It is not a recommendation to buy or invest, and it is not financial, investment, legal, or tax advice.  You should seek the advice of a qualified professional before making any investment or other decisions relating to the topics covered by this article.

What is a Roadside Assistance Business?

A roadside assistance business is a business that helps motorists who are stranded on the road due to a disabled vehicle. Such assistance could include providing gas, fixing flat tires, offering jump starts, or ultimately towing the vehicle to a nearby mechanic if a roadside repair is not possible. A roadside assistance business generates revenue by collecting fees in exchange for providing these services.

How Much Money Can You Make with a Roadside Assistance Business?

Although there isn’t data around revenue for a roadside assistance business that is perfectly on point, I was able to find some pretty reliable data for tow truck operators. As you can imagine, a large part of roadside assistance is being able to tow a stranded vehicle to a local mechanic’s shop, so I think it’s a pretty good proxy.

According to ziprecruiter , the national average income for a tow truck owner operator is $88,156, which translates to approximately $42 per hour.

ZipRecruiter reported seeing revenue as high as $228,000 and as low as $19,000, with top earners (90th percentile) making $207,500 per year.

Those are some compelling numbers on the top end, but as with all businesses, nothing is guaranteed and your results may vary.

Some of the things that could affect your profitability include how well you market your business, how many jobs you can get on a consistent basis, whether you have employees, and how well you manage your ongoing expenses in general.

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

If you want to start a roadside business with a brand new flatbed tow truck and you don’t finance or lease it, you’ll need at least $75,000 . If you finance or lease your vehicle, you may be able to dramatically reduce that amount to just a few thousand dollars (some dealers offer no money down options if you qualify).

Ok, let’s unpack all that.

The cost of starting a roadside assistance business is going to be largely driven by the cost of your tow truck. There are other expenses, such as equipment, permits and licenses, insurance, etc., but the biggest cost is going to be your truck, so let’s tackle that first.

At a minimum, you will need a basic pick-up truck with towing equipment that has enough pulling capacity to move most vehicles to the required location. If you want the latest and greatest, many roadside assistance businesses now use flatbed tow trucks.

A flatbed tow truck is also known as a rollback or slide tow truck. This is because of the way it performs the towing operation. Your tow truck has a hydraulic inclined bed which can be lowered all the way to the ground. The disabled vehicle can either be driven up to the platform or pulled onto it.

The great thing about these types of trucks is that they make transporting the towed vehicle extremely secure. None of the wheels are touching the road, so there is no risk of damage to the car due to potholes, etc.

How much do they cost?

That’s the downside. New rollbacks can run well over $100,000, but I have seen some that sell for around $70,000. Now if you go used, the prices drop significantly. I have seen used ones for well under that amount (like $30,000).

Now granted, those trucks had a ton of miles on them, so you will need to decide if paying a lower cost now is worth the future headaches associated with constant repairs and dealing with a truck that has limited remaining life.

If you want to see a pretty good selection of new and used flatbed tow trucks, check out commericaltrucktrader.com .

If the cost of flatbed truck seems too steep, there are more affordable options. You can choose to go with a simple pickup truck with a hook and chain (left) or a wheel lift (right).

Wheel lifts are interesting options because they are easy to operate and can tow cars without causing potential scratches (unlike a hook and chain). You can purchase one for around $10,000 here .

Now remember that you can finance the purchase of these vehicles (assuming you have decent credit and income) or you can lease them. As mentioned at the top of this section, you can significantly cut down on the amount of cash you need to start the business if you choose to do that (but keep in mind mileage caps when leasing).

What Equipment Do I Need For My Roadside Assistance Business?

In addition to getting a tow truck, you will need some basic equipment to handle issues that you face day to day on assisting customers. Here is a list of basic equipment you should consider getting for your roadside assistance business.

• Good set of basic sockets
• A lightweight aluminum jack
• Battery tester
• Booster pack and long (20′) jumper cables
• Lock out kit (to get into locked cars)
• Air compressor (if the customer’s spare tire is flat and needs filling)
• 2 Gallon Gas Can
• Torque wrench
• Impact Gun (it will crack all lug nuts)
• Heavy Metal Head Hammer (for seized up wheels)
• Tire pressure checker
• Tire plug equipment (if you are offering this service)
• Wheel chock (to secure car if car is on an incline)
• Breaker bar (for stubborn lug nuts)
• Screwdriver
• Knee pads (for comfort – you will be spending a lot of time on your knees changing tires, etc.)

Ok, now that we’ve got the introductory stuff out of the way, let’s get into the 7 steps to starting your roadside assistance business.

Step 1: Conduct Market Analysis

The first step is to conduct some basic market research into whether a roadside assistance business is feasible in your local area.

You may be spending a lot of money and time trying to set up this business, so you don’t want to dive in blind.

Identify Your Market

The first step to market research is accurately identifying your market. You need to know who your customers are and whether there are enough of them to support your business.

If you live near busy highways or other major roads that see a lot of traffic, there is probably going to be enough demand for roadside assistance services. The same holds true if you are going to be operating near major population centers.

But if you live in an isolated and low population area, there just might not be enough demand for your services. You can start researching the demographics of your area by going on city-data.com.

But identifying demand is not enough. You also need to look at your competition…

Conduct Competitive Analysis

If you are going to be the only game in town, that’s a good sign. But in most cases, you will be facing some degree of competition. If you live in your target area, you probably know who your major competitors are going to be. But to get a more complete sense of the competition, you can go on Google.

For example, you can simply type in “roadside assistance businesses near me” or “tow truck services near me” and Google will pull up a list of local businesses that match your search along with a map that has pins on where those businesses are located.

You can also go on  Yelp  and type in a similar search. Between the two, you should be able to get a decent sense of the competitive landscape in you area.

If there’s tons of competition and a lot of companies have gone out of business, that can be a red flag that competition is fierce and it will be very tough to break through.

Market Research Resources and Tips

There are tons of other market research resources as well. Check out this  list of market research resources  provided by the SBA if you want to explore more options.

If you want to dive more deeply into this aspect of starting your business, check out my full blown article on the topic:  How to Do Market Research For Your New Small Business in 5 Easy Steps .

Step 2: Establish Your Business

If your market analysis checks out, the next step is to establish your roadside assistance business.

Select a Name and Logo

This includes selecting the right name and logo. 

Having trouble figuring out a name?  Try  Shopify’s business name generator .  It’s free.   

As for a logo, you can go on  canva.com  and check out some of their logo templates and start from there. It’s a free option, but you will need to customize the logo templates to your liking. If you prefer a more ready-made solution, you can outsource this task.  

One solid option is to go on  Fiverr  and hire someone to create your logo.  There are tons of people who do this, and I have seen pricing as low as $5.  For that price, you can probably try a bunch of folks and pick the logo that suits you best.   

Note : You want to make sure your name and logo are original to you and are not going to infringe someone else’s intellectual property. If you are unsure, you can check the  USPTO’s trademark search tool  as a starting point.

For more great strategies and tips on how to select the right name and logo for your business, check out my full article on the topic:  How to Choose a Company Name and Logo [16 Key Strategies and Tips] .

Create Your Business Website

Your business needs a website, period.

It doesn’t have to be incredibly fancy or cost a lot of money to set up. There are a lot of resources available to help you with this.  

In fact, Google allows you to  build your first business profile website for free .  

List Your Business So Customers Can Find You

It is also important to get your roadside assistance business on Google. You can do this by listing it on Google My Business.  When you do this, people who are searching for businesses like yours in your local area can find you. 

If you want to learn more about the process,  check out this tutorial from Google . 

Set Up Your Business Entity

You may want to set up a business entity like an LLC, corporation, or partnership. In most cases, setting up a business entity can help shield some of your assets held outside the business entity if there is a claim against the business.

But it costs money to do and doing this could have tax implications, so you should consult with a qualified tax and legal expert to help you navigate the issues.

If you do want to make the investment of setting up a corporation, LLC, or some other business entity, you can hire a lawyer to help you, or you can use many of the online services that can help you set up your business entity. 

I like Northwest because they can get you up and running quickly and easily.  They are also one of the most affordable options that I was able to find that still offered great customer service ($39 as of the date of this article).

According to their website, they are the only national registered agent service that lets you use their office address so you don’t have to use your own. That’s a killer privacy advantage.

Definitely worth checking out.

Step 3: Create a Roadside Assistance Business Plan

A business plan is essentially a roadmap for your business.  

It organizes your thoughts relating to your business into an actionable plan. Some things to include in your roadside assistance business plan are budgeting, identifying your target market and competition, marketing strategy, pricing strategy, operational plans, and growth projections.

Don’t stress too much about getting your business plan perfect. I would use it more as an organizational tool at this point. You can polish it up later if you need to. 

Another benefit of having a business plan is that it can help you raise money from banks and investors. This may be needed if your business has high starting costs (i.e., you plan on having multiple tow trucks, a storage garage and mechanics shop, etc.).

But if you go this route, you  will  need to refine your business plan – these folks will want to see a professional-looking business plan as part of their lending or investing process.   

Don’t know how to get started? The Small Business Administration has a great  tool  to help you write your business plan.

Step 4: Buy the Right Vehicle and Equipment

The next step is to buy (or lease) your tow truck and related equipment. We’ve covered both of these topics in detail already, so I won’t rehash that. Make sure you shop around for the best possible deals.

Step 5: Obtain Appropriate Licenses, Permits and Insurance

In many cases, you will need a commercial driver’s license (CDL) to operate a tow truck. To learn more CDL requirements for a tow truck operator, check out this helpful article .

There may be other licenses and permits you need to operate a roadside assistance business, so you should check your state and local rules and regulations.

At a minimum, most states require a general business license, but depending on the scope of your activities, your jurisdiction may require more. A good place to start is with your local county clerk’s office.

Now let’s switch gears and talk about insurance.

As you can imagine, operating a roadside assistance business can pose significant risks. You are on the road and operating a heavy vehicle. Accidents and other mishaps can happen. You may want to consider the following insurance coverages for your business.

• Auto-liability insurance: This will basic insurance will cover you when you’re in an accident (and at fault) and must pay for the other driver’s medical and property costs.
• Physical damage insurance : This insurance with cover any needed repairs to your tow truck during an accident.
• Comprehensive coverage : This insurance will cover costs if your tow truck is damaged outside a collision (e.g., fire, theft, falling objects, etc.)
• On-hook coverage : This type of insurance protects you if any vehicles get damaged while hooked up to your tow truck.
• Garage Liability Insurance : This is not just for businesses that have a garage, it can cover you for claims arising from the day to day operations of your business (e.g., you replace a tire, but it falls off a mile later and the driver gets into an accident).
• Garage Keeper’s Liability Insurance : If you do have a garage where you will be storing towed vehicles, then this will protect against damage to the vehicles while they are stored there.
• Uninsured motorist insurance : This covers injury to you or your passenger by a driver who doesn’t have insurance or if you are a victim of a hit-and-run.

Step 6: Set up Leads to Get Jobs

Getting a consistent source of work is going to be critical to the ongoing success of your roadside assistance business. Fortunately, there are many options you can explore to keep the jobs coming in.

One of the classic ways to get jobs is to work with insurance companies and automobile clubs. When they get a call from a stranded customer, they use their network of providers to handle the request for assistance.

To become part of their network, you will need to apply (typically on their websites) and be accepted. They will often require that you have adequate levels of insurance, so be prepared for that.

A major gripe among roadside assistance providers is that insurance companies often don’t pay much, so you may want to supplement your income through independent marketing and other channels.

For example, you can use sites like  Towpanda ,  Towingleads ,  Urgently ,  Honk , Towbook , Swoop , Dispatch Anywhere and  Servicedirect  to get leads on towing jobs.

Finally, you can independently market your services online and get those lucrative cash jobs. As mentioned, you should set up an online presence and have a website and also make sure your business is listed on Google My Business.

This way, people who are stranded and need assistance can find you when they run a Google search for a roadside assistance business near them.

Other options include listing your business on popular platforms like Yelp. This costs money, but may be worth it, if you get enough leads.

Ultimately, you should test out various strategies and find the ones that work best for you in your area.

Step 7: Hire Employees (If Needed) and Launch Your Business

The final step is hiring employees (assuming you don’t want to run this as a solo operation). Some key tasks that may need employees include a dispatcher, a tow truck driver (who should be able to fix basic vehicle problems on site as well), and a mechanic (if you are going to be offering these types of services as well).

Remember that you will need to comply with anti-discrimination laws when hiring these folks and you will need to set up a legally compliant payroll system.

There are tons of payroll service providers out there, so go with someone who is reputable and offers a fair price. I use SurePayroll for my business. They are affordable, reliable and a well-known player in this space.

Once you’ve got your employees lined up and trained, all you need to do is launch your business. Set your business plan in motion and start getting those jobs coming in!

So there you have it – how to start a roadside assistance business in 7 simple steps. If you want to learn about more great businesses in the trucking and transportation area, check out my comprehensive guide to transportation business ideas , which covers more than 30 ideas that you can explore.

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How To Start A Roadside Assistance Business

1. gather information : the first step in your roadside assistance business journey should be to gather as much info as you need and decide what type of time and effort you want to devote to your roadside assistance business venture.  ideally, you'll start your roadside assistance business  start by offering 4 basic services, 5-7 days a week, 10-12 hours a day. the services you can offer include: tire changes, lockouts, jump starts & fuel deliveries. you can then expand your business by offering other services like mobile tire replacement, tire repair, mobile battery replacement, mechanical work, towing & more. fyi: roadside genius has helped thousands transition into the roadside business slowly from a part time or full time job to a full time business owner, everything is possible . we created a course to give you all the information you need to start and grow your own roadside assistance business. also, be sure to check us out on youtube & tik tok "sign up for the course here" 2. get the right tools & equipment : once you know how much time and effort you'll want to devote, you'll need   the tools you need to start a roadside assistance business.   to get most of what you need without any extras, you'd be looking at around $500 - $600 bucks for th e tools required to offer these services. tools are what allows you to do jobs.   3. set up the business : once you have your tools ready, it's time to get your business registered with local and state governments. you can register your own employer identification number [ein]   here .  after that, you'll want to register your business with the secretary of state in your state, just google " secretary of state [enter your state ".  legal zoom is a good resource to help you get this done, or just visit your local accountant for help. it may be easier for you to pay someone, as opposed to doing it on your own. 4. get the right business insurance : after you have registered your business and acquired the tooling, you' ll want to make sure you are insured. you can get information on roadside assistance business insurance here. roadside assistance business insurance is not required but it's a good to have it in case something happens, you never know.   5. create business bank accounts : after establishing your business entity, getting tools, and getting insured, the next step in your journey is to make a business bank account and get setup to accept customer payments. you can use services like stripe , square , & clover to help you collect payments. you needs this to accept cards. 6. invest in marketing : once you have these things figured out, it's time to become a roadside genius & dominate your local market with roadside assistance business advertising .  we offer everything you need to grow your roadside assistance business from 0 - 100k your first year. we can make your phone ring in under 24 hours. 7. consult with roadside genius:  there are levels to owning a roadside assistance business. we discuss your business growth options, and implement strategies to setup your business so it operates diligently and effectively. the end goal is to make it so you are no longer required to be at the front of your business operations. make money while you sleep. want more guidance set a meeting with roadside genius., roadside assistance business startup frequently asked questions.

How much money do I need to start my own roadside assistance business?

- The amount of money needed to start a roadside assistance business depends on the services you intend to offer and how well you want to be equipped. Licensing and business registrations could run you as low as $200-$350 dollars, equipment between $1,500-$5,000 not including service vehicles. Business insurance cost can vary, but you should expect to pay 100 on the low end and 400+ on the high end. 

Where do I get roadside assistance insurance?

- Roadside assistance insurance can be purchased by your own car insurance provider. Learn more about  getting insurance for your roadside assistance business .

What tools do I need to get into roadside assistance?

-The number of tools you need is solely based on the services you want to provide. Check out our recommended  list of tools here .

How do I start a roadside assistance business?

-This question is a little vague but here is a nice video giving you the rundown on  how to start a roadside assistance business .

How do I get more cash calls for my roadside assistance business?

-Getting more cash calls has never been easier. Google is a great place to start.  Check out our  roadside assistance marketing services . ​

How do I get more customers for my roadside assistance business?

-Facebook, Instagram, Google My business, Contracts, Motor Clubs, Local Businesses, etc. There are many ways to cook an egg.

How much should I charge for my roadside assistance services?

-It definitely varies by location, competition, & other factors, but you can't go wrong offering a starting price of 55-75 dollars depending on your area. Call around and see what the market is like and position yourself a little higher.

What is Roadside Genius?

- Roadside Genius is the roadside assistance marketplace designed to help you start and grow your business the right way, using the right strategies, and not lowballing the industry just to make a living. We turn entrepreneurs into businesses. ​ ​

What dispatch systems should I use for my roadside assistance business?

-We recommend,  Towbook ,  Swoop , Dispatch Anywhere and Call Rail.

What other contracts can I sign as an independent contractor?

- There is a full list of  contracts for roadside assistance  on our pages. Take a look and see. ​ ​

What are other things I can do to help me rank my roadside assistance business on Google?

- We have  handpicked products  that you can buy to  enhance your online SEO strength . 

I want to talk to someone, do you have a number I can call?

- We take  phone calls only by appointment  on our tier 2 subscription, lets hop on a call.​​

I want to get into business but now sure if it's right for me, can you help?

-Sure we can,  let's schedule a talk  and let's see if this industry is right for you.

I am looking for tow truck insurance, is this the right place for me?

- We do not sell  insurance  products, but we do know who does, visit this  link here  for a  few different vendors. ​

• Passenger Application
• Driver Application
• Admin Panel
• Dispatcher Panel
• Account Manager Panel
• Corporate Panel
• Sub Company Panel
• Hotel Panel
• Customer Care Panel
• Delivery and Logistics
• Paratransit
• Limo Dispatch
• Fleet Management
• Cabify Clone
• Bitaksi Clone
• Uber for Truck Clone
• Uber for Delivery Clone
• Uber for Logistics Clone
• Lecab Clone
• Riide Clone
• Careem Clone
• Gocatch Clone
• Uride Clone
• Talixo Clone
• Kakao Clone
• Gett Taxi Clone
• Easy Taxi Clone
• Taxieu Clone

7 Simple Steps to Setup a Roadside Assistance Business

Imagine you and your buddies are on a road trip, and your car breaks down in the middle of the road. Isn't it frustrating? And yes! The breakdown not only puts an end to your fun trip but also makes it hard to find help on a highway or an isolated road with limited access to the city. And this is when Roadside Assistance comes in. If your vehicle breaks down, roadside assistance/towing service comes as a rescue to arrange a tow, patch a flat tire, jump-start a dead battery, and more.

Table of Content

Step-by-step guide: how to start a roadside assistance business.

Craft a Roadside Assistance Business Plan

Choose a Catchy Business Name

Apply for Licenses and Permits

Get the Right Business Insurance

Get a Customized App for Your Business

Hire Employees for Your Service

The Bottom Line

For anyone good at vehicles, now is a perfect time to start your roadside assistance business, help people in need, and get a profit from this massive market. However, you'll need some business knowledge to be successful. Fortunately, everything you need to know is covered in this step-by-step tutorial, putting you on the fast track to roadside entrepreneurship.

Without further ado, let’s get started!

Generally, starting a roadside assistance business involves a significant amount of time, work, and, most importantly, passion. If you're willing to put in the time and effort to start your own business, you'll need to consider these critical steps to build a successful brand.

# Craft a Roadside Assistance Business Plan

New roadside assistance business owners must create a detailed plan that considers all aspects of their operation. Everything is handled, from the initial start-up expenses and funds through day-to-day operations and marketing strategies.

Furthermore, new business owners must be realistic about their goals and expectations. It is also vital to understand the competitors thoroughly. A well-thought-out plan can help new business owners increase their chances of success.

# Register Your Business

Registering your business is a critical step because it is necessary for paying taxes, raising financing, and opening a bank account. Furthermore, registration is exciting because it makes the entire procedure official. Once it’s complete, you’ll have your own roadside assistance business.

# Choose a Catchy Business Name

Once it comes to launching your emergency roadside service, you'll have to make another difficult decision: what to name it. Your business must have the proper identity because it will help you favorably convey your brand to your customers. Your company name should be unique, distinct, easy to remember, and innovative.

# Apply for Licenses and Permits

Starting a roadside assistance business needs several licenses and permits from local, state, and federal governments. To learn more about license requirements and how to get them, visit the websites of your State, Local, and County Governments or contact a qualified person. Failure to comply with legal standards might result in severe penalties. Therefore, this is not a move to be taken lightly. If you are overwhelmed by this stage or are unclear to proceed, it may be a good idea to hire a professional to help you.

# Get the Right Business Insurance

For starting your roadside assistance business, ensure that you have the right insurance plans to protect yourself from an accident. If you're unsure about the insurance policies, you can consult an insurance professional or broker who can advise you on the best possibilities.

When starting your roadside assistance service, you will need to know about the following insurance policies:

General insurance coverage

Expert liability coverage

Vehicle insurance

Medical coverage

Trip interference coverage

Staff compensation insurance

Income protection insurance

Insurance for business owners

# Get a Customized App for Your Business

As the popularity of on-demand app solutions increases, customers are looking for upgraded services that provide greater convenience. It doesn't matter whether you are a tow truck driver or want to jump on the on-demand app craze - you can create your Roadside Assistance App Development. It will allow you to serve your customers better who are in need. However, the first step in developing a successful towing mobile app is to select an experienced Towing App Development Company . You must also decide the features you need in your Towing app . After all, the app's success depends on its features/functionalities included.

# Hire Employees for Your Service

The final step is to hire personnel. Employees are vital for tasks such as dispatching, towing, and mechanic. While recruiting these people, remember to follow anti-discrimination legislation and set up a legally compliant payroll system. After you've lined up and educated your employees, all you have to do now is launch your business. Put your company idea into action and start generating profits.

On-demand roadside assistance apps have made it easy to find vehicle towing and repair services in an emergency. Therefore, several brick-and-mortar stores are turning online to broaden their customer base. So, if you want to invest in this fast-growing roadside assistance market, now is the time. At UnicoTaxi, we can build a robust Towing app and make your way into this booming market.

Are you looking for Uber like Tow Truck app or script?

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How To Start A Roadside Assistance Business

How To Get Signed Up With Insurance Companies And Start A Highly Profitable Roadside Assistance Business Without Joining The Good-Old-Boy Network

How to make working for the insurance companies work for you.

Welcome to the exciting world of roadside assistance. Now is a remarkable time to get involved in this business. And today I’m going to show you one of the quickest ways for you to get started.

Each day in the US there are 100’s of thousands of calls for roadside assistance , and the demand is ever increasing. Before the birth of the smartphone, those in need of towing or roadside assistance relied mainly on friends and family to find help; but now,  it’s much easier for these people to simply pick up the phone and call.

More than 97% of the population has a smartphone , and because of this, the floodgates have opened wide, creating HUGE DEMAND for roadside assistance services. Modern advances have once again created an abundant opportunity for motivated individuals just like you to take part in this ever-increasing business.

Until recently, learning how to get involved in the world of towing and roadside assistance has been kept under wraps, concealed by towing companies, fearful of losing a stranglehold on their profits. But now, with what you will learn here today, you have the opportunity to break into this highly rewarding business .

So, hold onto your seat, and get ready to dive into learning how you can build a highly profitable roadside assistance business of your own. Getting signed up with the insurance companies is the first step , and that’s just a portion of what you will learn here today.

So, let’s get started.

It’s Ok If You’ve Made Mistakes

Ok, first of all, I want you to know that it’s ok if you’ve made mistakes in the past. You may have tried various businesses that, for one reason or another, didn’t work out. And I want you to know that it happens to the best of us.

With all the information and misinformation that exists, it’s hard to know what works, and what doesn’t.

So, I want to start out by letting you know that we’ve all made mistakes, and we’ve all had failures.  But if you are worried that because of those mistakes, that you can’t succeed, let me stop you right there, you have it in you to achieve great things, precisely because of the failures of your past.

Failure gives you a deeper understanding of what it takes to succeed. You learn more from your failures than you do from your successes.

Of course, your competition doesn’t want you to know that . The towing and roadside assistance companies that exist today do not want you to succeed. To protect their territories, they want you to keep thinking you’re inferior. And many times they do it with the help of the cities, counties, and states where you live. The very governments which exist to serve you.

If you’ve ever had difficulty getting on rotation or providing roadside assistance in the city where you live…

If you had had trouble… Getting Your Foot In The Door with the local police… That’s The Good-Old-Boy Network Working Against You .

Government bureaucrats and high-powered cronies are still working together, hand-in-hand to maintain their stranglehold on power , which means there’s little room for helping people like you. If they can’t see how they might benefit from helping you succeed , then it’s not worth their time.

That’s why I created The Tow Academy. To help you do an end-run around these people. To Bypass All The BS Down At City Hall and build your own highly profitable towing and roadside assistance business , without needing to join the Good-Old-Boy network.

We believe you deserve the same opportunities to realize your dreams as others have, regardless of who you know, and the amount of money in your bank account.

Over the past four years, we have had the opportunity to work with hundreds of successful towing and roadside assistance companies. Providing one-on-one coaching, remote, and onsite consulting services, business evaluations, marketing services, and more. On our YouTube channel, you’ll find dozens of free videos full of useful training tips and helpful information, and on our website you’ll find our blog, with tons of free information designed to help young and upcoming businesses, as well as established companies, improve their stations in life.

And, still each day, we receive hundreds of emails and phone calls from people eager to learn more.  We do our best to answer your phone calls and talk with as many of you as we can, but our time is limited.  The most common question asked lately is how to start a roadside assistance business.

So today I’m going to show you how you can live your dream of building a highly profitable roadside assistance business.

How To Build A Roadside Assistance Business

Our goal here is to help two types of people. For those of you who have zero experience in roadside assistance, and are looking for an opportunity to start your own business, you will learn how to get signed up with the insurance companies and how to start and grow your own highly profitable roadside assistance business. We even provide a list of more than 30 top insurance companies who are   actively looking for people just like you .

For others who are already in the business, but struggling, we’ll show you how to reorient your thinking concerning the insurance companies. We show you new ways to leverage relationships and how to use the insurance companies as a stepping stone to move in the direction of higher-margin calls. We show you, very quickly how to get in the towing business, so that eventually your business no longer relies, solely on the revenue the insurance companies provide.

In the roadside assistance business, insurance companies are a fact of life. They’re not going away anytime soon. That means that the only way you’re going to grow your roadside assistance business outside of having to join the good-old-boy network is to learn how to make working for insurance companies work for you .

How To Make Working For Insurance Companies Work For You

Before I learned the lesson I’m about to share with you I failed miserably, many times. But once I made the change, I was finally able to come out on top, with a towing and roadside assistance business, grossing revenues of more 1.5 Million annually . And even in the midst of growing that business, I made plenty of mistakes. But the lessons learned from those mistakes are much more valuable than anything money can buy.

I learned that I wasn’t the best boss and that my customer service skills sucked, and, exactly what happens when you swear at your insurance company Field-Rep .

For those of you who don’t know the significance of that last one, an insurance company Field-Rep has the power to see that you do not receive any more calls from their company.

It was quite a foolish thing to do, I can see that now, but back then I felt justified in what I’d said.  You see, this is what happened…

My Story…

When I first started my business; I did it because I wanted to make my wife happy, and at that moment on the phone with my Field Rep, things just weren’t working out the way I’d planned.

I know that first part might sound a little sappy to you, but it’s true.

I’ll say it again, the reason I started my business was that I wanted to make my wife happy , I wanted her to smile, that same smile I remembered from when we first met.

It’s hard to explain, but it was just something about the glow in her eyes, and her sweet, beautiful smile. It filled me with a sense of approval and adoration and made me feel like I could do no wrong.

And, the truth was…her smile had become quite scarce in the years since we’d started our business.

I’ll back up a bit and explain.

You see, my wife’s name is Brenda, and we were married quite young, and neither of us finished college. So, we did what people who don’t finish college do, we got whatever jobs we could get.

She got a job working at a factory that created health and beauty products, and I worked at a shoe distribution warehouse.  And each night after work, I would talk about my plans for making our lives better. Which, most of the time consisted of starting one business or another.

Of course, every night after work, she would be tired, I could see it in her eyes.  But every time I talked about my plans for starting a new business, her eyes would perk up, and she would soon shoot me that beautiful smile.

And…Before long, I was like Pavlov’s dog, I knew was onto something.

I would tell her about my new business idea, and how it would improve the quality of our lives. “We’d buy a bigger house, and get a newer car,” I’d say. And it worked, every time I talked about my plans she’d shoot me those pearly whites.

But I knew that just talking about starting a business wasn’t enough.

For her to remain happy, I had to take action.

So, I started out by selling herbal supplements, then burial plots, and I even tried buying real estate with no-money-down, but I lost money on all of them.

When those didn’t work, I then tried three different multi-level marketing schemes, and even selling vacuum cleaners, door-to-door (which really sucked). And again, I lost money.

But after each business failure, my wife still stuck with me, working every day at the factory as hard as ever. And as she did, I noticed that, ever so slightly, the glow in her smile seemed to grow dimmer and dimmer as the days went by.

So, after all those business screw-ups, I decided to go back to work at the warehouse, I even got a second job.   The plan now was to save our money, and eventually open a real business down the road.

I won’t bore you with long, drawn-out details of our journey and the struggles we endured. Suffice it to say that it took a lot longer than I imagined because one expense or another always seemed to take priority over putting money away.  But eventually, we finally had enough money saved to start.

And, the truth is…When we did start…The first few years were terrible.

But after the third year, we could see we were moving in the right direction. We were profiting.  But that’s when I made some horrible business decisions , which I didn’t know would come back to bite me, and eventually, cause us to Lose Money.

You see, the reason I swore over the phone at my insurance company Field-Rep that day was because…I felt like I was spinning my wheels .  And…At that moment, it seemed like HE was the cause of all my problems.

We’d worked hard to grow our little business over the past few years, but now…things weren’t going as planned.

I knew you had to spend money to make money, but I also knew that providing roadside assistance did not come cheap . Trucks and drivers are expensive, and you need cash-flow to make things work.

And, at that time I was experiencing a CASH-CRUNCH.

Of course, my cash-crunch had nothing to do with the Field-Rep. It was due to my inability to manage my business properly . And I was merely using him as a scapegoat for my problems.

Do you want to know what the worst part was though? About this whole situation at the time?

The worse part was, my wife wasn’t happy!

And…she was still working.

No, she wasn’t working at the factory, she was now working with me, at the towing business. We were working together, trying to grow our little company.

And the truth is, I loved working with my wife. The sense of moving in the same direction with someone you love, both with the same goal… It’s an incredible feeling.

The problem was, things were so damn tight right now, that I was afraid we might have to close the doors and sell the trucks.

Which would mean I would fail Brenda again, just as before.

Working so close with her in the office every day was good, but at times I would become extremely anxious and worry. And she could hear and feel the tension in my voice. And…in the evenings at home, it would be the same thing, she had to endure my complaints as I obsessed over everything I believed was wrong with the business.

She got it 24/7.

Brenda knew our little business was struggling, and she did all she could to help out. She still believed in me and told me that she would support whatever decision I made. Including closing the business if we had to .

But when she saw me on the phone that day, verbally assaulting that insurance company Field-Rep , she gave me the sternest most disapproving look I’d ever seen.

After I hung up the phone, she walked up to me and said, “We need to have a serious talk tonight!”

She’d heard every word I’d said, and knew that there would be repercussions, as did I. But in the moment, with that Field-Rep, I was so damn through with hearing his line of bull, that I no longer cared.

I’ll spare you the details of our “talk” that evening. But I will tell you what I got out of it.

It’s something that changed my whole outlook on my business, and helped, not only save our little company, and quite possibly my marriage, but it’s the reason our business grew to become the success it did.

My wife is usually quiet, but that night she let me have it. She told me that in all my past business failures, she noticed that I had one particular skill. The one thing that I was really good at was my ability to identify the worst part of each business.

At first, I thought it was a compliment.  But she just shook her head and continued.

She said, “ No that’s THE PROBLEM …Rather than focusing on the best parts of the business, you put all of your energies, all of your attention into what’s wrong with it.”

I didn’t understand it at the time, but after I let that little criticism sink-in, I understood exactly what she was saying. And   it made perfect sense.

She was saying that our business was failing because I was allowing the difficulties to consume all my energies .  Rather than focusing on how I could capitalize on existing relationships and learn how to build them and create more and better relationships, to grow our business, I was becoming a killjoy that no one wanted to be around, including the customers.

Of course, I wasn’t alone in the way I conducted my business.  You see most of the companies signed-up with the insurance companies today are just like I was back then. They believe they’re being screwed-over by the insurance companies.

Ok, the reality is this. Insurance companies must make a profit, which means that they pay less than what a regular cash-paying customer would pay , and because of this, most towing and roadside assistance businesses assume that they’re getting the shaft.

And it wasn’t until Brenda helped change my thinking that I realized…

What You Focus On Expands

And if I focused on growing my business by working within the systems that exist , and leveraging the customers the insurance companies were already sending my way, then my business would expand and prosper.

And that’s precisely what I did.

The next day I called my Field Rep back and offered an apology. And to my surprise, he graciously accepted. He said he understood the pressures I was under and was really appreciative that I cared enough to call back. From then on it was like nothing had ever occurred, and our relationship grew even stronger as the years passed.

After that, we went on to change the entire way we operated.

We focused on customer service and relationship building, and over time our little business expanded and grew to serve thousands and thousands of customers every year.

And as more years went by, we became the GO-TO towing and roadside assistance company in our community, and in the process, became highly profitable.

But the best part of the whole experience was… her smile was back , Brenda was happy again, and this year we’ll celebrate our 30th wedding anniversary.

Over the past 26 months, since we’ve sold our business, I’ve had time to think about what we went through and the details of how we built it into the success that it became. Long ago, through gentle but firm prodding from my wife, I learned that I wasn’t in the Roadside Assistance Business serving people, I was in the People Business providing roadside assistance . And I firmly believe that for you to start a successful roadside assistance business you need to always put people first.

My wife and I have both learned many valuable lessons along the way, and now we want to help you learn those lessons as well. So we decided to put together a guide designed to help you along your journey to success. This guide will provide you with the steps necessary to build a highly successful roadside assistance business.

We know the struggles that many of you are going through right now, trying to get established and having road-blocks put in your way at each turn, so that’s why we created a Roadside Assistance Business Blueprint for you to follow.

It’s filled with everything you’ll need to get started. We’ve included tons of highly detailed and actionable information that will set you on the path to building your own highly profitable roadside assistance business.

There’s insider information in here that you can’t find anywhere else, and even a list with links to the insurance companies who are actively seeking applicants just like you.

And we’re offering to YOU this guide, filled with more than 30 years of experience for a one-time fee of $49-dollars.

Instant Download

Why A Fee? 

You may be wondering why we are asking you to pay for this valuable information, if we sincerely wanted to help, why wouldn’t we just give it away?

The answer to that question is two-fold.

First… The information and resources you’ll find in this guide are exactly what we teach our coaching and consulting clients. Many of these clients have paid us  thousands of dollars for in-person meetings, and hourly coaching calls . If we were to simply give it away to you, for free, it wouldn’t be fair.

The second reason we are charging a fee is because… WE WANT YOU TO FOLLOW THROUGH!!

How many times have you downloaded a free report and failed to read it?  And even if you did read it, you probably placed very little value on what was inside. The reason you placed very little value on it…was because you believed that, since they were giving it away…since millions of others had access to this information as well…then it held no value.

The information and resources contained in this guide are highly valuable , they’ve worked for hundreds of others, and if you follow our instructions, they will work for you too.

How to Make Working for Insurance Companies Work for You 

If you are like I was after my early business failures, you’re probably cautious of any sort of offers. You’ve been burnt before and are unsure if what we’re offering will provide you with the tools necessary to build your own highly profitable roadside assistance business.  I understand your apprehension but allow me to clarify what’s inside.

Most of the companies providing roadside assistance today are not using the techniques we show you in this report. They are not taking full advantage of the opportunities that exist.

• We teach you the 3 Must-Have-Skills  to leverage the customers the insurance companies send your way, to grow your business.
• We show you how to use the insurance companies as a stepping stone, to  Move In The Direction Of Higher-Margin Calls.
• We show you how to Build A Highly Profitable Business that will eventually no longer, solely rely on the revenue from these companies.

We show you how to compete on the basis of continuous improvement so that regardless of what the other roadside assistance companies are doing, You Stay A Lean, Mean, Customer Service Oriented Machine, which will make them irrelevant.

Maybe you’re just a little anxious about starting out on your own. And…Or possibly even a bit scared that once you get started, you won’t have what it takes to partner with these billion dollar corporations.

I completely understand. I’ve lost money before because I didn’t know what was required prior to climbing on board.

One time I invested a substantial membership fee joining a multi-level-marking company.

Not two days after I joined, the company wanted me to write a 2-page essay saying why I loved the product , and then to send it in a letter to everyone I knew.

Well, guess what? I didn’t particularly like the product, and I didn’t want to lie to my friends and family.

I quit soon after, losing my investment.

Knowing what’s required before you get started is exactly why this guide is so valuable , it provides you with the information necessary to make an informed decision and avoid making costly mistakes.

• You’ll learn what the insurance companies  Require From You To Get Started . Including insurance, licensing, background checks, permits, certifications, ongoing education, and more.
• You’ll learn how the insurance companies work. How They Choose Which Company To Call , how to get called more often, and how to avoid being blacklisted.
• You’ll also learn what’s required to make certain that You Always Receive Fair Compensation for your services, and how to collect the money that’s owed.

Or maybe you’re worried what your family and friends might think if you try something new…again.

If you’re like most people, you’ve failed somewhere along the line, and you’re afraid that starting up another business will raise eyebrows, and start people to talking.

Well, Let Em Talk. . .  This Is YOUR Life!

It’s none of their business what you do. Besides, most of them don’t have the ability  to understand people like you and me.

The reason I started my business, I’m guessing, is similar to the reason you have the strong urge to get started as well.

You are starting a business because you want to provide for your family, To Give Them A Better Life .

You want to do more than just put groceries on the table, and a roof over their heads, if you just wanted to do that, you could get a job working at Wal-Mart.

If you are like me, You Want To See That Smile…and your family  to have a better more fulling life. 

I WANT IN NOW

Government bureaucrats and high-powered cronies are still working together, hand-in-hand to maintain their stranglehold on power , which means there’s little room for helping people like you. If they can’t see how they might benefit from helping you succeed, then it’s not worth their time.

That’s why I created The Tow Academy. To help you do an end-run around these people. To Bypass All The BS Down At City Hall and build your own highly profitable towing and roadside assistance business, without needing to join the Good-Old-Boy network.

For others who are already in the business, but struggling, we’ll show you how to reorient your thinking concerning the insurance companies. We show you new ways to leverage relationships and how to use the insurance companies as a stepping stone to move in the direction of higher-margin calls. So that eventually your business no longer relies, solely on the revenue the insurance companies provide .

How David Turned His Business Around

David had been in the towing and roadside business for three years before we met him. And during that time he had quickly grown to 8 trucks and 6 drivers. His annual sales were in excess of $600,000 but his profits were sadly lacking.

Eager to get a head start and make a name for himself, David hadn’t been picky about who he worked for. And, he had little concern for the rates he was receiving. He figured it would all work out in the end. “More volume meant a higher return,” he would argue.

We got together and he listened to what we had to say.

And…After he applied the concepts, techniques, and principals we teach in this guide, initially, his sales decreased.

But that was by design. 

In a short time though, after David was able to clearly determine his Average Cost Per Call, he   then proceeded to weed out the less profitable calls from his business.  And in the process, he learned that providing service to those customers cost him more than just a loss of profit on those particular calls, he was also incurring another cost.

Something called  Opportunity Cost. 

David’s company was losing out on the opportunity to run other higher-margin calls, and calls that could be leveraged into building strong, lasting relationships, because he was spending too much time servicing low-margin, zero-relationship building customers.

In a short time, after implementing what we teach, his company’s annual sales rose to more than 1-Million-Dollars.   But what was even better was, his profits had increased substantially.   

Wesley Started From Nothing, And In Less Than Two Years Was Doing Between $8,000 & $12,000 In Monthly Sales

Wesley worked as an employee for AAA before he called us. He was making about $2200 per month and wanted to make a change because his wife just had their second child.  They needed more money to support their growing family.

It was clear that he had the operational experience. He knew what to do, as far as providing service. What he needed help with was how to find customers, and keep them calling.

We had the opportunity to talk with him a couple of times before he finally pulled the trigger.  There was no mistaking the fear in his voice each time we spoke .  He was scared to make a move and go out on his own.

Leaving the known, regardless of how meager an existence it may be, is very hard when you are unsure of what lies ahead.   

But Wesley saved his money and got rid of much of his consumer debt , and a little over a year after the last time we spoke, he called saying he was ready to get started.

And…during the first three months in business he struggled , but after using the strategies and tools we provide in this Roadside Assistance Business Blueprint, Wesley’s company began to take off.

Wesley called us back a few months ago to let us know how he was doing.  We were happy to hear that he was doing well and that his wife had was expecting another baby.

$49-Dollars.

What we’ve created here and are offering to you is The Definitive Blueprint for Creating a Roadside Assistance Business that will last long into the future. It’s filled with everything you will need to build a highly profitable business.

The only problem is, we’re concerned that  once everyone has their hands on this guide, and everyone starts using the insider tips detailed inside, it’s going to be harder and harder to break into this business.   So, we suggest, that only those who are serious about starting their own roadside assistance business purchase this guide.

You’ll learn what will automatically disqualify you from being accepted as a service provider for many of the insurance companies.

• You’ll learn the steps required to improve your online presence so that you receive tons of cash-paying customers calls.
• You’ll understand the value of the role of matchmaker, and how being one can aid in getting referral after referral from the repair shops.
• You’ll know how to determine your rates with the clubs and even learn how to calculate your average cost per tow, so you know your always making a profit.

You’ll learn what marketing channels work best for roadside assistance companies and how to exploit them for all that they’re worth.

• You’ll get to know who your ideal customer is, what they’re thinking, and how to get in front of them so they call you and not the competition.
• And you’ll learn simple psychological triggers that work to get customers to refer you to their friends, and call you back again and again.
• Customers Are Everywhere
• A Service Everyone Needs
• Ever-Increasing Demand
• Operate From Your Home
• Assist People In Need
• Work In An Expanding Market

To instantly download this  Roadside Assistance Business Blueprint click the “Buy Now” button below. Once your payment is processed you will receive simple instructions for downloading.

You’ll learn where to get your business listed free online so that you are available to receive tons of cash-paying customers calls.

You’ll understand the value of the role of matchmaker, and how you being one can aid in getting referral after referral from the repair shops.

You’ll learn how to determine your rates with the clubs and even learn how to calculate your average cost per tow, so you know you are always making a profit.

You’ll get to know who your ideal customer is, what they’re thinking, and how to get in front of them so they call YOU and not the competition.

And you’ll learn simple psychological triggers that work to get customers to refer you to their friends and family, and call you back again and again.

To instantly download this Roadside Assistance Business Blueprint click the “Buy Now” button below. Once your payment is processed you will receive simple instructions for downloading.

About the Author: Don G. Archer

How to Successfully Launch a Roadside Assistance Business

By henry sheykin, roadside assistance bundle.

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Are you considering starting a roadside assistance business but not sure where to begin? Look no further! In this comprehensive guide, we will walk you through the essential steps to launch your very own roadside assistance business successfully. With the increasing demand for roadside services in the US, now is the perfect time to get started.

According to recent statistics, the roadside assistance industry in the US is experiencing steady growth, with an annual revenue of over $8 billion. With more drivers on the road than ever before, the demand for reliable roadside assistance services is on the rise. By following our step-by-step checklist, you can position your business to tap into this lucrative market and provide essential services to drivers in need.

From conducting market research and developing a solid business plan to acquiring funding, obtaining permits, and implementing technology solutions, we've got you covered. Stay tuned as we delve into each crucial aspect of starting a roadside assistance business and set you on the path to success.

Market Research

Business plan development, funding acquisition.

• Licensing and Permits

Fleet Acquisition

Insurance coverage, technology setup.

• Staff Hiring and Training
• Marketing and Promotion

9-Steps To Start a Business

Before diving into starting your Roadside Assistance business, it is crucial to conduct thorough market research to understand the demand for roadside assistance services in your targeted areas. By analyzing competitors, potential customer needs, and pricing strategies, you can better position your business for success.

Competitor Analysis: Begin by researching existing roadside assistance businesses in your area. Identify their services, pricing strategies, target markets, and customer reviews. This will help you understand your competition and find ways to differentiate your business.

Customer Needs Analysis: Survey potential customers to determine their specific roadside assistance needs. Are they looking for quick response times, affordable prices, or a wide range of services? By understanding their needs, you can tailor your services to meet their expectations.

Pricing Strategies: Evaluate the pricing strategies of your competitors and determine how you can offer competitive rates while still maintaining profitability. Consider offering tiered pricing based on the services provided or implementing a pay-per-service model to attract customers.

Tips for Market Research:

• Utilize online surveys and focus groups to gather customer feedback.
• Attend industry conferences and networking events to learn from other roadside assistance providers.
• Consider hiring a market research firm to gather in-depth data on customer preferences and market trends.

Roadside Assistance business plan development is a crucial step in starting your business. It serves as a roadmap that outlines your business model, services offered, operational structure, marketing strategies, and financial projections. A well-thought-out business plan is essential for securing funding and guiding your business towards success.

Here are the key components to include in your Roadside Assistance business plan:

• Business Model: Define your business model, including the per-use or pay-per-service model, membership plans, and any additional services you may offer.
• Services Offered: Detail the roadside assistance services you will provide, such as jump-starts, tire changes, and towing.
• Operational Structure: Outline how your Roadside Assistance business will operate, including fleet management, service delivery standards, and customer service processes.
• Marketing Strategies: Develop a marketing plan that includes strategies for brand awareness, online advertising, local advertising, and partnerships with auto dealers.
• Financial Projections: Create detailed financial projections, including startup costs, operating expenses, revenue forecasts, and break-even analysis.

Tips for creating a successful business plan:

• Research your target market thoroughly to understand customer needs and competitors.
• Seek feedback from industry experts or mentors to refine your business plan.
• Update your business plan regularly to adapt to changes in the market and business environment.

Securing funding is a critical step in launching your Roadside Assistance business. Whether you are looking to finance your fleet of vehicles, invest in technology solutions, or cover initial operating expenses, exploring various funding options is essential. Here are some key strategies to consider:

Small Business Loans: One of the most common ways to finance a new business is through small business loans. Banks, credit unions, and online lenders offer a range of loan options for entrepreneurs. Make sure to prepare a detailed business plan and financial projections to present to lenders.

Angel Investors: Angel investors are individuals who provide capital to start-up businesses in exchange for ownership equity or convertible debt. These investors can offer valuable expertise and industry connections, in addition to financial support. Consider pitching your Roadside Assistance business to angel investors who have experience in the automotive or service industry.

Venture Capital: If you are looking to scale your Roadside Assistance business quickly, venture capital may be a suitable funding option. Venture capital firms invest in high-growth potential businesses in exchange for equity. To attract venture capital investors, you will need a compelling business model, a strong team, and a clear path to profitability.

Tips for Funding Acquisition:

• Prepare a detailed business plan that highlights the potential profitability and scalability of your Roadside Assistance business.
• Network with industry professionals and attend pitch events to connect with potential investors.
• Consider partnering with a business mentor or advisor who can provide guidance on securing funding.

By exploring different funding options and preparing a compelling pitch, you can position your Roadside Assistance business for success and sustainable growth.

Licensing And Permits

Obtaining all necessary permits and licenses is a crucial step in starting your Roadside Assistance business. Without the proper documentation, you could face legal issues that may hinder your ability to operate. Here are the key points to consider:

Each state has its own regulations when it comes to roadside assistance businesses. It is essential to research and understand the specific permits required in the state where you plan to operate. This may include permits for towing, vehicle recovery, or roadside repair services.

In addition to state permits, you may also need to obtain local business licenses to operate legally within a particular city or county. Check with the local government authorities to ensure you have all the necessary licenses in place.

Tips for Obtaining Licensing and Permits:

• Consult with a legal advisor or business consultant to ensure you are compliant with all regulations.
• Keep track of renewal dates for permits and licenses to avoid any lapses in legality.
• Display your permits and licenses prominently in your office and on your vehicles to build trust with customers.

By taking the time to obtain all the required permits and licenses, you can establish your Roadside Assistance business as a legitimate and trustworthy service provider in your chosen locations.

One of the most critical aspects of starting a Roadside Assistance business is acquiring a fleet of vehicles that are fully equipped to handle a variety of roadside assistance needs. The reliability and condition of your vehicles can make a significant impact on the quality of service you provide to your customers. Here are some key steps to consider when acquiring your fleet:

When it comes to acquiring vehicles for your Roadside Assistance business, you have the option to either purchase or lease them. Consider the pros and cons of each option, such as upfront costs, maintenance responsibilities, and flexibility in upgrading your fleet.

Tips for Fleet Acquisition:

• Compare the costs and benefits of purchasing versus leasing vehicles to determine the most cost-effective option for your business.
• Consider the scalability of your business and the potential growth in demand for roadside assistance services when deciding on the size of your fleet.
• Regularly inspect and maintain your vehicles to ensure they are in optimal condition and ready to respond to customer calls effectively.

Ensure that each vehicle in your fleet is reliable, well-maintained, and regularly serviced to minimize the risk of breakdowns or delays in providing assistance to your customers. Invest in quality vehicles that are known for their durability and performance under various road conditions.

Equip each vehicle in your fleet with the necessary tools and technology to handle a variety of roadside assistance needs efficiently. This includes items such as jump-start cables, tire-changing equipment, towing gear, and communication devices to stay connected with your dispatch team and customers.

Choose vehicles that are fuel-efficient to minimize operational costs and reduce your environmental impact. Opt for vehicles that strike a balance between performance and fuel efficiency to ensure cost-effective operations for your Roadside Assistance business.

By focusing on acquiring a reliable and well-equipped fleet of vehicles, you can position your Roadside Assistance business for success and provide top-notch service to customers in need of roadside assistance.

Securing comprehensive insurance coverage is essential for any Roadside Assistance business to protect both the business and its employees. Here are the key types of insurance coverage you need to consider:

Roadside Assistance businesses are exposed to various risks, such as damage to customers' vehicles or injury to customers while providing services. Liability insurance protects your business in case of lawsuits or claims arising from such incidents. Make sure to obtain adequate liability insurance to safeguard your business's financial stability.

Since your Roadside Assistance business involves a fleet of vehicles that provide services on the road, it is crucial to have proper vehicle insurance coverage. This will protect your vehicles in case of accidents, theft, or damage, ensuring that your business operations can continue smoothly.

Protecting your employees is just as important as protecting your business. Workers' compensation insurance provides coverage for medical expenses and lost wages in case your employees are injured while on the job. This coverage is not only a legal requirement in most states but also demonstrates your commitment to your employees' well-being.

Tips for Securing Insurance Coverage:

• Work with an insurance agent specializing in commercial insurance to assess your specific needs.
• Compare quotes from multiple insurance providers to ensure you get the best coverage at a competitive price.
• Regularly review and update your insurance policies to reflect changes in your business operations or fleet size.

Implementing the right technology solutions is crucial for the success of your Roadside Assistance business. By utilizing advanced technology, you can streamline your operations, enhance customer experience, and improve overall efficiency. Here are some key steps to consider when setting up technology for your business:

• Invest in a reliable dispatch software that allows you to efficiently assign service requests to your technicians based on their location, availability, and skillset.
• Ensure that the dispatch system has real-time tracking capabilities so you can monitor the status of each service request and provide accurate ETAs to your customers.
• Integrate GPS technology into your dispatch system to optimize route planning and minimize response times.
• Equip your vehicles with GPS navigation devices or integrate navigation apps into your technicians' mobile devices to help them navigate to the customer's location quickly and efficiently.
• Consider investing in route optimization software that can suggest the most optimal routes for your technicians based on real-time traffic conditions.
• Provide training to your technicians on how to use navigation technology effectively to reduce response times and improve customer satisfaction.
• Set up a reliable communication system that allows seamless communication between your dispatchers, technicians, and customers.
• Consider using two-way radios, mobile phones, or a dedicated communication platform to ensure that everyone is connected and informed throughout the service process.
• Integrate communication technology with your dispatch system to facilitate quick updates and status notifications to customers regarding their service requests.

Tips for Technology Setup:

• Regularly update your technology systems to stay current with the latest advancements in the industry.
• Provide training to your staff on how to use the technology effectively to maximize its benefits.
• Seek feedback from your technicians and customers on the usability and efficiency of the technology solutions implemented.

Staff Hiring And Training

Recruiting skilled technicians and customer service staff is vital for the success of your Roadside Assistance business. These individuals will be the face of your operation, interacting directly with customers in need of assistance. Here are some key steps to ensure you hire the right team and provide them with the necessary training:

• When hiring technicians, look for individuals with experience in automotive repair and maintenance. They should be proficient in handling common roadside issues such as jump-starts, tire changes, and lockouts.
• Conduct thorough interviews and background checks to ensure the technicians are reliable and trustworthy.
• Consider offering competitive compensation packages to attract top talent in the industry.
• Customer service staff play a crucial role in handling incoming calls, dispatching technicians, and managing customer inquiries. Look for individuals with excellent communication skills and the ability to remain calm under pressure.
• Provide training on how to handle customer complaints and inquiries professionally and efficiently.
• Emphasize the importance of empathy and patience when dealing with customers in distress.

Tips for Staff Recruitment:

• Utilize online job boards and industry-specific websites to attract qualified candidates.
• Consider offering referral bonuses to employees who recommend successful hires.
• Clearly outline job responsibilities and expectations during the recruitment process to ensure alignment with potential candidates.
• Once you have assembled your team, invest time and resources in providing comprehensive training programs. This will ensure that all staff members are equipped to deliver high-quality service and adhere to safety standards.
• Train technicians on proper vehicle maintenance procedures, safety protocols, and customer interaction best practices.
• Customer service staff should be trained on effective communication techniques, problem-solving skills, and conflict resolution strategies.

By recruiting skilled technicians and customer service staff and providing them with comprehensive training, you can ensure that your Roadside Assistance business delivers top-notch service to customers in need.

Marketing And Promotion

Launching a strategic marketing campaign is essential to building brand awareness and attracting customers to your Roadside Assistance business. By utilizing online platforms, local advertising, and partnerships with auto dealers and repair shops, you can effectively promote your services and increase your customer base.

Online Platforms: In today's digital age, having a strong online presence is crucial for any business. Create a professional website that showcases your Roadside Assistance services, pricing, and contact information. Utilize social media platforms such as Facebook, Instagram, and Twitter to engage with potential customers and promote special offers or discounts.

Local Advertising: Targeting your local community through advertising in newspapers, radio stations, and local magazines can help increase your visibility and attract customers in need of Roadside Assistance services. Consider sponsoring local events or community initiatives to further promote your business and build trust within your community.

Partnerships With Auto Dealers And Repair Shops: Collaborating with auto dealers and repair shops can be mutually beneficial for both parties. Auto dealers can refer customers in need of Roadside Assistance services to your business, while repair shops can recommend your services to customers who may require assistance on the road. Establishing these partnerships can help expand your customer base and increase your revenue streams.

Tips for Effective Marketing and Promotion:

• Offer exclusive discounts or promotions for first-time customers to encourage trial of your Roadside Assistance services.
• Collect customer testimonials and reviews to showcase the quality of your services and build trust with potential customers.
• Utilize search engine optimization (SEO) tactics to improve your website's visibility on search engines and attract organic traffic to your site.

Starting a roadside assistance business can be a lucrative venture with the right planning and execution. By following the 9 steps checklist outlined in this post, you can set yourself up for success in the industry.

• Through thorough market research and a detailed business plan, you can understand the demand for roadside assistance services and map out a roadmap for your business.
• Securing funding, obtaining necessary permits and licenses, acquiring a reliable fleet, and setting up comprehensive insurance coverage are crucial steps to ensure the smooth operation of your business.
• Implementing technology solutions, hiring and training skilled staff, and launching a strategic marketing campaign will help you build a strong brand presence and attract customers.

Consider adopting a pay-per-service model and offering membership plans to cater to the needs of your customers while maximizing profitability for your business. With dedication, hard work, and attention to detail, your roadside assistance business can thrive in the competitive market.

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How To Start A Roadside Assistance Business

• Stefon McRae
• November 30, 2021

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: 

• Changing a flat tire
• Refueling a car
• Jump starting a car
• Car cooling after extreme heat
• Repairing a specific part of a car due to an accident
• Mechanic assistance

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.

• 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. 
• 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. 
• 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. 
• 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.
• Towing Vehicle – This is used for picking up cars whose engine does not start. Vehicles are mostly mini trucks or medium-sized trucks.
• 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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How to Start a Roadside Assistance Business Without Tow Truck

By: Author Tony Martins Ajaero

Home » Business ideas » Automotive Industry » Roadside Assistance

A roadside assistance business provides services to motorists who experience unexpected issues with their vehicles while on the road.

These issues can include breakdowns, flat tires, dead batteries, running out of fuel, locked out of the vehicle, and other mechanical problems. The primary goal of a roadside assistance business is to provide timely and efficient help to stranded drivers, ensuring their safety and helping them get back on the road as quickly as possible.

Roadside assistance businesses often offer their services through subscription-based models, where drivers pay a regular fee to access the services. They also work with insurance companies, auto manufacturers, and organizations that offer roadside assistance as part of their membership packages.

Steps on How to Start a Roadside Assistance Business

Conduct market research.

Conducting market research for a roadside assistance business is crucial to understanding the demand for your services, identifying potential customers, and gaining insights into the competitive landscape.

First, clearly outline what you want to achieve through your market research. Identify specific goals, such as understanding your target market, analyzing competitors, determining pricing strategies, and identifying potential challenges.

Define your ideal customer segments. Consider factors like demographics (age, gender, location), psychographics (lifestyle, preferences), and behavior (driving habits, usage patterns). Your target market might include individual drivers, families, commercial fleets, or specific geographic areas.

Research existing roadside assistance providers in your target market. Identify their strengths, weaknesses, services offered, pricing structures, and customer feedback. This analysis will help you identify gaps in the market that your business can fill.

Gather insights directly from potential customers. Create surveys or conduct interviews to understand their preferences, pain points, and expectations regarding roadside assistance services. Use online survey platforms or social media to reach a wider audience.

Lastly, compile the data you’ve gathered into a comprehensive business plan. This plan should outline your target market, competition analysis, pricing strategies, marketing approaches, and financial projections.

a. Who is the Target Market for Roadside Assistance Business?

• Individual Drivers
• Families with multiple vehicles
• Businesses with a fleet of vehicles, such as delivery services, transportation companies, and rental car agencies
• Travelers and Tourists
• Elderly Drivers
• Professional Drivers (Taxi drivers, rideshare drivers, and other professional drivers)
• Membership organizations like auto clubs, insurance companies, and motor clubs.

b. Is Roadside Assistance Business a Profitable Business?

A roadside assistance business can be profitable, but its profitability depends on various factors, including the market, competition, service quality, pricing strategy, and operational efficiency.

c. Are There Existing Niches in the Industry?

No, there are no niche ideas when it comes to roadside assistance business.

d. Who are the Major Competitors?

• AAA (American Automobile Association)
• Allstate Roadside Services
• Good Sam Roadside Assistance
• National Motor Club
• Geico Emergency Road Service
• State Farm Roadside Assistance
• OnStar (General Motors)
• Roadside Masters
• Better World Club
• Honk Technologies
• National General Motor Club
• Paragon Motor Club
• Blink Roadside
• Best Roadside Service
• Cross Country Motor Club
• AutoVantage
• United States Auto Club (USAC).

e. Are There County or State Regulations or Zoning Laws for Roadside Assistance Businesses?

Yes, there can be county or state regulations and zoning laws that affect the operation of a roadside assistance business in the United States.

Roadside assistance businesses that involve vehicle repair or storage might be subject to zoning restrictions. It’s important to ensure that your chosen location is zoned appropriately for your business activities.

If your roadside assistance business includes towing services, there are often strict regulations governing towing operations. These regulations can cover areas such as licensing, insurance, equipment standards, and proper procedures for towing and impounding vehicles.

Roadside assistance businesses often require specific insurance coverage to protect against liabilities that can arise during vehicle rescue, repair, or towing operations. If your business involves operating a repair shop or handling hazardous materials (such as vehicle fluids), you may need to comply with environmental regulations related to waste disposal and pollution control.

If you plan to hire employees for your business, you’ll need to adhere to federal and state employment laws, including wage and hour regulations, workplace safety standards, and more.

Some states have laws in place to protect consumers from predatory practices in the towing and roadside assistance industry. This can include regulations on pricing transparency, service quality, and customer rights. Some states require specific licensing for emergency services, which could include roadside assistance operations.

f. Is There a Franchise for Roadside Assistance Business?

Yes, there are franchise opportunities for roadside assistance businesses, and here are some of them:

• AAMCO Transmissions and Total Car Care
• Meineke Car Care Centers
• Milex Complete Auto Care/Mr. Transmission
• Glass Doctor
• Tuffy Tire & Auto Service
• RNR Tire Express
• 911 Restoration
• Cottman Transmission and Total Auto Care
• Jiffy Lube.

g. What Do You Need to Start a Roadside Assistance Business?

• Business Plan
• Legal Business Structure
• Licenses and Permits
• Insurance Coverage
• Service Vehicles and Equipment
• Trained Staff
• Communication Systems
• Pricing and Service Packages
• Marketing and Branding
• Operational Procedures.

Choose a Memorable Business Name

When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable. Some of the catchy business name ideas suitable for a roadside assistance business are;

Creative Roadside Assistance  Business Name ideas

• Rowland Williams® Roadside Assistance Company, Inc.
• Collins Overman® Roadside Assistance Company, Inc.
• Emma Charles™ Roadside Assistance Company, LLC
• Edin Doberman® Roadside Assistance Company, Inc.
• McLee Amstar® Roadside Assistance Company, Inc.
• Duke Edwin® Roadside Assistance Company, LLC
• Bobby Gray® Roadside Assistance Company, Inc.
• Levis Lewis© Roadside Assistance Company, Inc.
• Merlyn McNeel® Roadside Assistance Company, LLC
• Jeffery Kimberlin® Roadside Assistance Company, Inc.
• Ethan Mason™ Roadside Assistance Company, LLC
• Jayson Jay® Roadside Assistance Company, Inc.
• Brian Oscar® Roadside Assistance Company, Inc.
• Halley Kent® Roadside Assistance Company, Inc.
• Road Master™ Roadside Assistance Company, Inc.
• Lucky Bennard™ Roadside Assistance Company, Inc.
• Swift Guys® Roadside Assistance Company, Inc.
• Auto Team® Roadside Assistance Company, LLC
• Busy Hands® Roadside Assistance Company, Inc.
• Mike Mech™ Roadside Assistance Company, Inc.

Register Your Business

A. what type of business structure is best for roadside assistance business.

The best type of business structure for a roadside assistance business depends on several factors, including the size of the business, the number of owners, and the level of personal liability exposure the owners are willing to accept.

However, we usually recommend a limited liability company (LLC) for roadside assistance business. An LLC is a popular choice for startup businesses because it offers personal liability protection for the owners while allowing them to be taxed as a pass-through entity.

This means that the profits and losses of the business are passed through to the owners’ personal tax returns, avoiding double taxation.

b. Steps to Form an LLC

• Choose a Name for Your LLC.
• File Articles of Organization.
• Choose a registered agent.
• Decide on member vs. manager management.
• Create an LLC operating agreement.
• Comply with other tax and regulatory requirements.
• File annual reports.

c. What Type of License is Needed to Open a Roadside Assistance Business?

• Business License
• Towing License
• Commercial Driver’s License (CDL)
• Commercial Vehicle Registration
• State Motor Carrier Permit
• Hazardous Materials Endorsement
• Auto Repair License
• Occupational Safety and Health Administration (OSHA) Certification
• First Aid and CPR Certification
• Fire Department Permits.

d. What Type of Certification is Needed to Open a Roadside Assistance Business?

• Towing Operator Certification
• Automotive Technician Certification
• Hazardous Materials Handling Certification
• Emergency Medical Technician (EMT) Certification
• Automotive Locksmith Certification
• OSHA (Occupational Safety and Health Administration) Certification
• Motor Carrier Safety Training Certification
• Vehicle Recovery Operator Certification.

e. What Documents are Needed to Open a Roadside Assistance Business?

• Certificate of Incorporation (if forming a corporation)
• Articles of Organization (if forming an LLC)
• EIN (Employer Identification Number)
• Zoning Permit
• Insurance Policies (Liability, Auto, Workers’ Compensation, etc.)
• Service Contracts or Agreements
• Employee Agreements or Contracts
• Emergency Services Operating Procedures
• First Aid and CPR Certifications
• Equipment and Vehicle Maintenance Records
• Marketing and Promotional Materials.

f. Do You Need a Trademark, Copyright, or Patent?

Whether you need a trademark, copyright, or patent for your roadside assistance business will depend on the specific intellectual property you want to protect.

If you want to protect your business name, logo, or other branding materials, you may want to consider registering a trademark with the US Patent and Trademark Office (USPTO). If you create original content for your roadside assistance business, such as marketing materials or software, you may want to consider registering a copyright with the US Copyright Office.

If your roadside assistance business invents a new technology or product, you may also want to consider applying for and obtaining a patent from the US Patent and Trademark Office.

Cost Analysis and Budgeting

A. how much does it cost to start a roadside assistance business.

When it comes to starting a roadside assistance business, the startup costs vary, and it could range from as low as $15,000 to over $150,00. Please note that the cost of purchasing your utility truck, equipment, and the salary of your employees are part of this cost.

b. What are the costs involved in Starting a Roadside Assistance Business

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits – $2,800.
• Marketing, Branding, and Promotions – $2,000.
• Business Consultant Fee – $2,500.
• Insurance – $6,800.
• Rent/Lease – $30,000
• Operational Cost (salaries of employees, payments of bills et al) – $45,000
• Store Equipment (cash register, security, ventilation, signage) – $2,350
• Utility Trucks, Equipment, and Supplies – $65,000
• Website: $1,200
• Opening party: $5,000
• Miscellaneous: $5,000

c. What Factors Determine the Cost of Opening a Roadside Assistance Business?

• The size of the roadside assistance business
• The choice of location
• The required licenses and permits
• The cost of hiring and paying a business consultant and attorney
• The cost of branding, promotion, and marketing of the roadside assistance business
• The cost of furnishing and equipping the roadside assistance office facility
• The cost of the insurance policy covers
• The cost of registering the business
• Cost of recruiting and training your staff
• The cost for the purchase and customizing of uniforms, shoes, and caps for your employees
• The cost for the grand opening of the roadside assistance business.

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

No, you do not need to build a new facility for your roadside assistance business because the business can be operated from a rented or leased office facility.

e. What are the Ongoing Expenses of a Roadside Assistance Business?

• Employee salaries and benefits for drivers, dispatchers, mechanics, and administrative staff.
• Costs for liability insurance, auto insurance, workers’ compensation insurance, and other necessary coverage.
• Regular maintenance and repair of equipment
• Fuel expenses for service vehicles
• Renewal fees for business licenses, and any other required permits.
• Costs for renting or leasing office space, garage facilities, or storage for vehicles and equipment.
• Expenses for phone systems, radio equipment, dispatch software, and other communication tools.
• Costs for maintaining supplies such as spare tires, batteries, fuel, and other necessary items.
• Fees associated with towing and impounding vehicles.
• Monthly expenses for utilities such as electricity, water, and internet for your office and facilities.
• Business taxes, property taxes, and any other applicable taxes.
• Costs for office supplies, accounting services, legal consultations, and other administrative needs.

f. What is the Average Salary of your Staff?

• General Manager – $65,000 per year
• Dispatcher – $45,000 per year
• Accountant (Administrative Assistant) – $42,000 per year
• Mechanics – $40,000 per year
• Drivers – $38,000 per year

g. How Do You Get Funding to Start a Roadside Assistance Business?

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
• Source for soft loans from your family members and friends.

Write a Business Plan

A. executive summary.

Road Master™ Roadside Assistance Company, Inc. is a pioneering provider of comprehensive and reliable roadside assistance services in the bustling city of Chicago, Illinois.

We are dedicated to ensuring the safety, convenience, and peace of mind of motorists navigating the urban streets and highways. Road Master™ Roadside Assistance Company, Inc. is poised to transform the roadside assistance landscape in Chicago.

With a strong focus on customer satisfaction, cutting-edge technology, and a dedicated team of professionals, we are well-positioned to become the go-to choice for drivers seeking reliable assistance on the roads of the Windy City.

b. Products and Service

Road Master™ offers a range of expert services designed to assist drivers in various emergency situations. Our offerings include 24/7 towing, tire changes, battery jump-starts, fuel delivery, lockout assistance, and minor mechanical repairs.

With our state-of-the-art fleet, skilled technicians, and advanced dispatch systems, we are equipped to handle any roadside challenge.

c. Mission Statement

“At Road Master™ Roadside Assistance Company, Inc., our mission is to redefine the roadside assistance experience by providing swift, reliable, and compassionate services to drivers navigating the vibrant streets of Chicago.

We are dedicated to ensuring the safety, convenience, and peace of mind of motorists, exceeding their expectations through professionalism, expertise, and a commitment to customer-centric values.”

Vision Statement:

Our vision at Road Master™ Roadside Assistance Company, Inc. is to be the unwavering ally of every driver in Chicago. We envision a future where breakdowns become minor inconveniences and where our name is synonymous with trust, promptness, and excellence.

d. Goals and Objectives

The goals and objectives of a roadside assistance business are to provide convenience, safety, and peace of mind to drivers who encounter unexpected vehicle issues while on the road.

e. Organizational Structure

• General Manager
• Accountant (Administrative Assistant)

Marketing Plan

A. swot analysis.

• Road Master™ excels in providing quick response times due to its strategically positioned service units throughout Chicago.
• The company has a team of experienced and trained technicians capable of handling a wide range of roadside issues.
• Road Master™ is committed to delivering exceptional customer service, building loyalty, and establishing strong customer relationships.
• The use of cutting-edge dispatch systems and a user-friendly mobile app enhances communication and service delivery efficiency.
• The company maintains a diverse fleet of service vehicles, each equipped with specialized tools and equipment.
• As a relatively new entrant, Road Master™ may face challenges in establishing widespread brand recognition compared to more established competitors.
• While well-positioned within Chicago, the company might face limitations in offering services to areas on the outskirts of the city.

Opportunities:

• Road Master™ has the opportunity to gradually expand its service coverage beyond Chicago, tapping into nearby cities and suburbs.
• Forming strategic partnerships with local businesses, car dealerships, and rental agencies can increase brand visibility and customer acquisition.
• Continued integration of innovative technology can enhance customer engagement and service quality.
• The roadside assistance industry in Chicago is competitive, with established players and other new entrants vying for market share.
• Economic downturns can impact consumer spending on non-essential services like roadside assistance.
• Changes in local regulations and licensing requirements could affect operational procedures and costs.

b. How Do Roadside Assistance Businesses Make Money?

Roadside assistance companies often charge customers for each service provided. For example, if a customer calls for a jump-start or tire change, they are billed a one-time fee for that specific service. Beyond basic roadside assistance, companies can also make money by offering related services such as fuel delivery, battery replacements, lockout assistance, and more.

These additional services provide opportunities for upselling. Providing services at special events, such as fairs, festivals, or sporting events, can also generate extra revenue and raise brand visibility for roadside assistance companies.

c. Payment Options

• Credit or Debit Card
• Electronic Payment Systems such as PayPal or Venmo
• Bank Transfers.

d. Sales & Advertising Strategies

• Optimize your Google My Business listing to appear in local map searches and gain visibility on Google Maps.
• Establish partnerships with local auto repair shops, car dealerships, insurance agencies, and rental car companies. Offer referral incentives to encourage them to recommend your services to their customers.
• Partner with taxi companies, rideshare drivers, and commercial fleets to provide specialized services.
• Encourage satisfied customers to leave positive reviews on platforms like Google, Yelp, and social media. Positive reviews build trust and credibility.
• Display customer testimonials on your website to showcase real-life experiences and successful assistance stories.
• Run advertising campaigns that highlight the importance of preparedness and safety while driving.
• Run seasonal promotions that align with weather-related challenges (e.g., winter tire change specials).
• Brand your service vehicles with eye-catching logos, contact information, and a clear message about the services you provide.
• Distribute marketing collateral like brochures, flyers, and business cards at local events, auto shows, and community gatherings.

Financial Projection

A. how much should you charge for your product/service.

Basic Services (Tire Change, Jump-Start, Lockout): Average Range: $50 – $100 per service

Towing Services: Average Range: $75 – $150 for local towing (within 5-10 miles). Longer Distances: Additional charges may apply based on the distance being towed.

Fuel Delivery: Average Range: Cost of fuel plus a service fee, often around $50 – $75

Flatbed Towing: Average Range: $100 – $200 or more, depending on distance and type of vehicle being towed.

Battery Replacement (Jump-Start and Battery Installation): Average Range: $50 – $100

Vehicle Lockout Services: Average Range: $50 – $100

Specialized Services (Winching, Off-Road Recovery, Towing):

Prices can vary widely based on the complexity of the service and the equipment required. Expect prices to be higher than basic services.

Subscription Plans: Monthly Plans: $5 – $20+ per month, and Annual Plans: $50 – $200+ per year.

b. How Much Profit Do Roadside Assistance Business Owners Make a Year?

The profit that roadside assistance business owners can make in a year can vary significantly based on several factors, including the location, scale of operations, pricing strategy, customer base, competition, and operational efficiency. It’s important to note that profit margins can fluctuate and depend on both revenue and expenses.

c. What Factors Determine the Amount of Profit to Be Made?

• The capacity of the roadside assistance business
• The service offerings of the roadside assistance business
• The location the roadside assistance business is covering
• The management style of the roadside assistance business
• The business approach of the roadside assistance business
• The advertising and marketing strategies adopted by the roadside assistance business.
• The number of years the roadside assistance business is in business

d. What is the Profit Margin of a Roadside Assistance Business?

The profit margin of a roadside assistance business can vary depending on various factors, including the rates charged, the volume of clients and work, and the expenses incurred. While it is challenging to provide an exact figure, a typical profit margin for a roadside assistance business can range from 10% to 40% or even higher in some cases.

e. What is the Sales Forecast?

Below is the sales forecast for a roadside assistance business. It is based on the location of the business and other factors as it relates to such startups in the United States.

• First Fiscal Year (FY1): $320,000
• Second Fiscal Year (FY2): $440,000
• Third Fiscal Year (FY3): $550,000

Set Up your Shop/Office

A. how do you choose a perfect location for roadside assistance business.

• The demography of the location
• The demand for roadside assistance services in the location
• Accessibility of the location
• The number of roadside assistance companies and auto repair shops in and around the location
• The local laws and regulations in the community/state
• Traffic, parking, and security et al

b. What State and City is Best to Open a Roadside Assistance Business?

• Los Angeles, California
• Houston, Texas
• Phoenix, Arizona
• Dallas, Texas
• San Antonio, Texas
• New York City, New York
• Chicago, Illinois
• Atlanta, Georgia
• Las Vegas, Nevada
• Philadelphia, Pennsylvania.

c. What Equipment is Needed to Operate a Roadside Assistance Business?

• Flatbed Trucks
• Jump-Start Kits
• Tire Changing Tools
• Lockout Tools
• Fuel Delivery Equipment
• Winching Equipment
• Emergency Lighting
• First Aid Kits.

Hire Employees

If you are considering starting a roadside assistance business, then you should make plans to hire competent and qualified employees. Even though an individual can operate a roadside assistance business, it is usually advised that entrepreneurs should hire at least drivers, dispatchers, mechanics, and administrative staff.

Launch the Business Proper

Organizing an opening party for a new roadside assistance business no doubt is a fantastic idea, but it is important to note that you may decide not to organize a launch party especially if you are operating on a shoestring budget.

a. What Makes a Roadside Assistance Business Successful?

• Being consistently reliable
• Excellent customer service and thoroughness in your approach and job delivery
• Efficient operations
• Compliance with regulations
• Hiring skilled and knowledgeable employees and providing ongoing training that will ensure you deliver high-quality services.

b. What Happens During a Typical Day at a Roadside Assistance Business?

A typical day at a roadside assistance business encompasses proactive planning and swift response. Dispatchers kick-start the day by assessing service schedules and equipment readiness.

Incoming customer calls prompt dispatchers to collect crucial details and assign suitable service vehicles. Equipped technicians rush to distressed vehicles with specialized tools.

Services like jump-starts, tire changes, lockout assistance, and towing are conducted professionally. Administrative tasks, including record-keeping and follow-ups, maintain operational flow. The day concludes with equipment maintenance, performance evaluation, and preparations for upcoming challenges.

c. What Skills and Experience Do You Need to Build a Roadside Assistance Business?

• Familiarity with the roadside assistance industry, including service offerings, customer needs, industry trends, and regulations
• A solid understanding of business operations, financial management, budgeting, and strategic planning
• Proficiency in the technical aspects of roadside assistance services, such as vehicle mechanics, towing procedures, and emergency response protocols
• Quick thinking and the ability to make sound decisions under pressure
• Experience in marketing and sales strategies
• Familiarity with automotive tools, equipment, and technology used in roadside assistance services
• Understanding local and state regulations, permits, licenses, and safety standards related to towing and roadside assistance
• Experience in maintaining strong customer relationships, managing feedback, and adapting services based on customer preferences
• Experience in managing workflows, optimizing schedules, and ensuring smooth operations
• Being skilled at handling emergency situations, both from a technical and communication standpoint
• The ability to adapt to changing circumstances, weather conditions, and customer needs.

Related Posts:

• How Much Does It Cost to Start a Roadside Assistance Business?
• 6 Best Insurance Policy for Roadside Assistance Business
• Roadside Assistance Business Plan [Sample Template]

Sample Roadside Assistance Business Plan Template PDF

Roadside assistance business plan sample.

Vehicle breakdowns are a daily occurrence. Whenever such happens, the services of roadside assistance are vital.

Have you ever considered starting one?

If you have, this roadside assistance business plan sample can immensely help.

Need to write a plan for your venture? Download a FREE Business Plan PDF Sample to develop a template for your own startup.

A roadside assistance startup focuses primarily on rendering services to motorists, tricyclists, or bicyclists whose vehicles have suffered a  mechanical fault that leaves the owner in dire straits.

This situation becomes more telling if it occurs at night or on a deserted stretch of highway.

ROADSIDE ASSISTANCE FRANCHISE OPPORTUNITIES

Roadside assistance franchises and businesses bear roots in the activities of some motoring clubs established in the early 1900s. These clubs supported their members by engendering a spirit of camaraderie and assisting members who suffered vehicular problems.

To this end,  a list of members who could be reached for help was kept; in some instances, members paid dues to facilitate hiring towing trucks when needed.

From 1897 to 1927, more formal associations sprang up to render quasi-roadside assistance to their members while extending such help to non-members of the public.

They included the Royal Automobile Club (RAC, established in 1897), The Automobile Association(AA; established in1905 ), the Allgemeiner  Deutscher Automobile-Club( founded n 1927), as well as the American Automobile Association(AAA), formed in 1902.

The continued rise in car ownership over the years makes starting a roadside assistance business viable. A roadside service business will, first and foremost, require the owner/operator to establish structures and means to ensure all-day service availability.

Customer demands range from unlocking their cars to procuring gasoline, kick-starting dead batteries, changing flat tires, or towing vehicles to repair facilities.

Here is a sample business plan for starting a roadside company.

• Obtain relevant training and secure attachment to an existing roadside business.

Do I need a business license for roadside assistance? Yes. Starting a roadside assistance business behooves the owner/operator to have adequate technical expertise in the operation of vehicles.

Apart from the possibility of rendering repair work on faulty vehicles, the owner of a roadside assistance business may also be solicited to give advice and tips to vehicle owners on what further help is required for fixing a broken car and maintenance tips for vehicles.

From a business end, the startup roadside assistance business owner will require a period of training at an established roadside business to acquire adequate knowledge from experiencing firsthand the nitty-gritty of the operations of a roadside assistance business. This effort aims to learn the rudiments of investments before launching the roadside assistance startup.

• Develop a roadside assistance business plan.

There is a need for a business plan to succeed in the roadside assistance business as it exposes the dynamics and strategies behind income projected and expenditures, the available techniques to survive a competitive market, as well as expanding into other states or regions, and additional necessary information and facts.

A robust business plan format eliminates the propensity for guesswork while shielding one’s roadside assistance opportunity from omitting critical inputs to project the roadside assistance business commitment to quality.

• Get all relevant tools and equipment and stock up on essential consumables

There are many tools needed for roadside assistance.

A newly established commercial fleet roadside assistance business will need to have the following tools and equipment in its inventory: A reliable tow truck, gas cans, locksmith tools, flat tire change tools, and starter cables.

The business owner should know how to use these tools, especially at the infant stages of the business.

Later on, expansionary drives may warrant hiring more hands to operate some specialty tools, like the locksmith. As much as capital permits, the roadside assistance could also procure a flatbed tow van to expand the range of services.

This is one of the vital roadside assistance commercial vehicles.

• Develop robust marketing, sales, and advertisement plan.

A roadside business can choose to market directly to end users. Or it can sell its services to more extensive road assistance programs like AA Rescue, Insurance firms, and auto dealerships. The road assistance business will have to prove that its services are up to standard and can deliver on a timely and consistent basis.

GUIDE: Roadside Assistance Names For Branding

The road assistance service business must seek ingenious ways of publicizing its services. Business directories and automobile magazines, and newsletters are veritable start points. Also, leaflets and flyers can be used, especially for service customers, who may, in turn, engender repeat business and referrals.

It may also be necessary to register with local authorities and the police, who may then make referrals for the services of the roadside assistance business, especially in the advent of emergencies and road accidents.

These promotion strategies are essential to obtain roadside assistance contracts.

• Define the coverage area of the road assistance business

The road assistance business must decide how far it can go in rendering its services to the public. If it is 25 kilometers, then the roadside assistance business needs to be adequately prepared to respond to issues and requests under this radius. Appropriate changes should be instituted, and service quality must not be compromised.

You will also need full roadside assistance business insurance.

ROADSIDE ASSISTANCE BUSINESS PLAN EXAMPLE

We have written this for people struggling to create a good plan for their roadside assistance business. This enables you to have a defined path of growth to take.

A good thing about having a plan is that this can be occasionally modified or adjusted to fit new realities. With this sample, you have something to work on, putting together a great plan.

• Executive Summary

Guardian Angels is a roadside assistance business that will provide various rescue services to road users and travelers who are stranded. There are lots of issues that may result in bringing vehicles to an abrupt halt.

Some of these may have shown signs for a long, while others happen instantly. We are professional roadside assistance service providers skilled in handling all automobile problems.

These range from fixing flat tires, jump-starting dead batteries, towing vehicles of all sizes for proper repairs at our mechanic workshop, and helping to unlock jammed doors.

There are several more services we offer. We realize that vehicles are likely to break down for as many reasons as possible.

Our experience in all areas of vehicle repair will be used to fix as many issues as possible.

• Our Services

We offer all sorts of roadside vehicle assistance services. Some of the most common include fixing flat tires, service garages, car towing services, light-duty truck towing, and quick vehicle maintenance.

Others include helping to unlock jammed doors, fuelling cars that have run out of fuel, jump-starting dead batteries, and more.

At Guardian Angels, our vision is to establish a business known for efficiency.

We are determined to establish a roadside assistance business that will be the best in Des Moines, Iowa, and break into America’s top 10 roadside assistance brands.

• Our Mission

We are driven by the desire to serve. This is our mission, and we seek even to exceed our client’s expectations.

We are determined to go the extra mile by helping road users have an unforgettable and cheerful experience. We will use this strategy to win over our clients, who will ultimately refer to friends and family.

Our roadside assistance business will be financed through loans. The sum of $400,000.00 is required. This will be used to purchase equipment, while 30% will be set aside as running costs.

We have already set the loan application process in motion. The interests are currently being discussed with the lender.

• SWOT Analysis

How better to run an effective roadside assistance business than understanding our potential and weaknesses? We have done a SWOT analysis showing where our strengths lie and where we need to increase our efforts.

This has been briefly stated below;

We have been in the business of roadside assistance for over a decade. This gives us an advantage of experience and skill. Setting up our roadside assistance business will enable us to commit our expertise and knowledge to serve vehicle owners.

Our understanding of the most common problems motorists encounter gives us a better shot at satisfying our clients.

Our weakness is the size of our startup. It limits our ability to provide quality roadside assistance to every motorist with a vehicle breakdown. The good news is that this will not be a permanent feature.

We will be expanding our roadside assistance services to cover more strategic locations. This will be in addition to improved service delivery.

• Opportunities

There is an increasing demand for roadside assistance services in America. This increased demand means more business opportunities for us.

This is why we will expand our services to new and strategic locations in the coming years.

There is growing competition within this industry. Although we see this as an opportunity to develop innovative services, some major players have established themselves as reputable roadside assistance brands.

These businesses can easily leverage their size through the economy of scale to lower their pricing considerably. While they still are profitable while doing this, we will not be able to do the same due to our small size.

• Sales Projection

At Guardian Angels, the demand for roadside assistance services has been used as a significant index for our three-year sales projection. The results have come up as expected, with steady growth over this period. Sudden threats, such as a global financial crisis, have been discounted.

The chart below summarizes our findings.

• First Financial Year $300,000.00
• Second Financial Year $590,000.00
• Third Financial Year $850,000.00
• Competitive Advantage

Lots of roadside assistance businesses are innovating better ways to satisfy their clients. Our advantage over most of these new businesses is that we have the experience and expertise edge.

Our experts have been carefully selected. These professionals have over a decade of experience working with some of the best roadside assistance businesses.

These bring their experience and expertise to bear on the job. Among our team are persons who have steered small startups to prominence and profitability. Because of this, we consider our humble beginnings a good platform to launch an excellent brand.

• Marketing Strategies

We are choosing the best marketing strategies that give us the most impact in the market.

Our marketing department will coordinate all marketing activities. We will have a referral program in place. This encourages the word of mouth marketing.

In addition, we will place ads in auto magazines and attend auto shows and fairs where we will network with people within the industry.

• Target Market

Our target market will mainly consist of vehicle owners. We will also agree with auto-related businesses to form a community of companies promoting our businesses through referrals.

Wherever there is a vehicle breakdown, whether major or minor problems, we will be right there to fix it.

This is our roadside assistance business plan sample . This is written to help new roadside assistance business owners struggling to write their plans to be able to do so.

We focused on an imaginary business to bring to light the most important contents of a business plan. You can follow the structure contained within this plan to write your unique plan without complicating things.

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• How To Start A Roadside Assistance Business

If you ask any entrepreneur, starting a business comes with its fair share of challenges.

Starting a roadside assistance business requires a great deal of effort, dedication and most importantly passion .

If you're willing to put in the effort to build your own business, you're going to want to follow the critical steps to creating a successful brand.

We've created a guide that covers each step of the process - from making key financial decisions, to launching and marketing your business the right way, and tips/strategies on how to grow your business effectively.

Start A Roadside Assistance Business ➜ market size $25B starting costs $11.7K see all costs ➜ gross margin 90% time to build 210 days growth channels SEO business model Subscriptions time investment Full time pros & cons 39 Pros & Cons see all ➜

💡 Introduction To Starting A Roadside Assistance Business

Is starting a roadside assistance business right for you.

There are many factors to consider when starting a roadside assistance business.

We put together the main pros and cons for you here:

Pros of starting a roadside assistance business

• Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

• Ability to start your business from home

It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!

• Little startup costs required

The cost to start a roadside assistance business costs significantly less money than most businesses, ranging anywhere from 62 to 23,259.

• Rewarding work

Starting a roadside assistance business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.

• No overhead costs

To get your roadside assistance business started, there are no costs associated with overhead, storage, packaging, etc. This will save you a lot of time and money!

• Meaningful business connections

You never know who you will meet as a roadside assistance business. This could be the start of an incredible business opportunity!

• High margins

The gross margins for your roadside assistance business are typically around 90%, which is considerably high and allows you to grow your business and manage costs easily.

• Quick build time

The average time it takes to build your product is quick - typically around 7 months. This will allow you to bring your product to market faster.

• Pick & choose the clients you work with

Roadside Assistance Businesses have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!

• Control of workload

With starting a roadside assistance business, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.

• Gain exposure and experience

This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!

• Unlimited income potential

With starting a roadside assistance business there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.

• You are your own boss!

With starting a roadside assistance business, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!

• Higher likelihood of getting referrals

This business is all about referrals, which can be a a very impactful way to attract and retain customers. It's critical that you have a great referral program in place that incentivizes your customers to tell their friends about your product.

• Simple business model

A roadside assistance business has the advantage of a simple business model, which makes launching and building the business more seamless.

• Control your own destiny

Starting A Roadside Assistance Business allows you to control every aspect of your life and make your own dreams come true every day.

• You can decide who you work with

Gone are the days of working in a toxic work environment with employees that you may not vibe with. As a small business owner, you get to decide who you work and surround yourself with.

• Express your opinions

With starting a roadside assistance business, you can express your opinions and knowledge to your audience, which allows you to build your own reputation and identity.

• You can work from anywhere!

Not only can you start your roadside assistance business from home, you can also run your business from anywhere in the world. This is the entrepreneur dream.

• You get to inspire others

Your business is one that encourages and inspires others, which in itself, can be very fulfilling.

• High Hourly Pay Rates

On average, the hourly pay rates are high for your roadside assistance business - which means quality of clients is often superior to quantity of clients.

• Never a dull moment

With starting a roadside assistance business, there is truly never a dull moment. Your job offers a lot of variety and allows you to meet interesting people from all walks of life.

• Various different ways to make money

With starting a roadside assistance business, there is not just one business model to choose from. This field is amazing in that there are various different ways to make money. Although this may complicate things, it's great to have different options and sources of revenue.

• Can build solid foundation of clients

It's unlikely you will have one-off customers as a roadside assistance business. Typically, you have a solid foundation of clients that use your product and services regularly.

Cons of starting a roadside assistance business

• Crowded Space

Competition is high when it comes to your roadside assistance business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.

• Longer Sales Process

A roadside assistance business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.

• Work can be inconsistent

As a roadside assistance business, the amount of work assigned to you and schedule tends to be more inconsistent, which may make your income less stable. It's important to set boundaries and budget accordingly based on the amount of work you plan to have.

• Lack of benefits

With a roadside assistance business, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.

• Isolation

Often times, as a roadside assistance business, you typically work alone and do not have much face-to-face interaction with other team members.

As a roadside assistance business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

• No safety net

Typically, as a roadside assistance business, you do not receive a consistent pay-check and instead earn money based on your transactions each month. During the slow periods, you typically take away less since the job is based on commission. It's important to budget accordingly for the slow times.

• Stressful work

This line of work can be stressful for both you and your clients. This type of transaction is a significant financial decision for your client, so expectations are very high for you. Although this career path can be very rewarding, it also comes with its challenges and stressful moments.

• Time commitment

With starting a roadside assistance business, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.

• Be prepared to get out of your comfort zone!

Although this is exciting for some entrepreneurs, it can be a big challenge for others! You may find yourself in uncomfortable social and business situations, jumping into tasks and responsibilities you aren't familiar with, and pushing yourself as far as you can go!

• Minimal physical activity

A big part of starting a roadside assistance business is sitting at a desk for the majority of the day starting at your computer. Some may enjoy this, but others may struggle with sitting for the majority of your day without much physical activity.

• Learning Curve

When you start your own business, you no longer have upper management to provide you with a playbook for your roles and responsibilities. You should know the ins and outs of every aspect of your business, as every decision will come down to you.

• Easy target for criticism

Since your roadside assistance business has the ability to reach a large audience, you'll need to be able to handle criticism. The internet can be a cruel place, and regardless of your intentions, many people will disagree with you and even take their criticism too far. To survive in this industry, you'll need to have tough skin (or at least learn this along the way).

• The job can be demanding

This is one of the major disadvantages starting a roadside assistance business. It's important to understand that you may need to make yourself available on a 24/7 basis.

Big Players

• Budget Direct (25.7K Alexa Ranking)
• Home (157K Alexa Ranking)
• NYC Manhattan Towing (216K Alexa Ranking)
• Welcome to NSD Motor Club Services (911K Alexa Ranking)
• SG Auto Assist (1.04M Alexa Ranking)

Small Players

• San Francisco Bay Area Towing (8.87M Alexa Ranking)
• Blinkroadside (8.58M Alexa Ranking)
• valor literal seo site name (7.29M Alexa Ranking)
• Swat Team Roadside Service Provides Roadside Assistance in Dallas, TX (7.23M Alexa Ranking)
• Koehler Rescue Services LLC (6.9M Alexa Ranking)

Search Interest

Let's take a look at the search trends for over the last year:

How To Name Your Roadside Assistance Business

It's important to find a catchy name for your roadside assistance business so that you can stand out in your space.

Here are some general tips to consider when naming your roadside assistance business

• Avoid hard to spell names: you want something easy to remember and easy to spell for your customers
• Conduct a search to see if others in the space have the same name
• Try not to pick a name that limits growth opportunities for your business (ie. if you decide to expand into other product lines)
• As soon as you have an idea (or ideas) of a few names that you love, register the domain name(s) as soon as possible!

Why is naming your roadside assistance business so important?

The name of your business will forever play a role in:

• Your customers first impression
• Your businesses identity
• The power behind the type of customer your brand attracts
• If you're memorable or not

It's important to verify that the domain name is available for your roadside assistance business.

You can search domain availability here:

Find a domain starting at $0.88

powered by Namecheap

Although .com names are the most common and easiest to remember, there are other options if your .com domain name is not available. Depending on your audience, it may not matter as much as you think.

It's also important to thoroughly check if social media handles are available.

As soon as you resonate with a name (or names), secure the domain and SM handles as soon as possible to ensure they don't get taken.

Here's some inspiration for naming your roadside assistance business:

• Lone check availability
• Busy Verges Group check availability
• Roadway Co check availability
• CommonRoadside check availability
• Dark Highway Group check availability
• Southern Sidewalk check availability
• Pleasant check availability
• Main Sidewalk check availability
• Wintry Highway Spot check availability
• The Very check availability
• Smooth Road check availability
• Verges Collective check availability
• Verges Co check availability
• Little Roads Place check availability
• Last Kerbside check availability
• Sidewalk Spot check availability
• Empty Parking Spot check availability
• Rough Rickshaw check availability
• Rustic Riverside check availability
• Dusty Riverside Collective check availability
• The Rough check availability
• Wet Sidewalk Spot check availability
• Snowy check availability
• Steep Kerbside check availability
• The Empty check availability
• French Parking Spot check availability
• Rocky Roadway check availability
• The Legislative check availability
• The Narrow check availability
• Urban Wayside check availability
• The Nearest Wayside check availability
• EnglishRoadside check availability
• English Sidewalk Co check availability
• Rough Roadways check availability
• Wet check availability
• The Bare check availability
• The Commonest Road check availability
• Sandy Kerbside Place check availability
• Shaded Sidewalk check availability
• Nearby Verges Place check availability
• Green Verges Spot check availability
• Rocky Roads check availability
• Rough Roadkill check availability
• The Legislative Riverside check availability
• Road Co check availability
• ImmediateRoadside check availability
• Gravelly Verges Spot check availability
• AdjacentRoadside check availability
• Grassy check availability
• Nocturnal Kerbside Pro check availability
• RoughRoadside check availability
• Rocky Rickshaw check availability
• The Hard check availability
• Narrow Roadway Place check availability
• Highway Co check availability
• Bow tie Roadside check availability
• Pleasant Riverside Group check availability
• The Urban check availability
• Roads Co check availability
• The Sandy Riverside check availability

How To Create A Slogan For Your Roadside Assistance Business:

Slogans are a critical piece of your marketing and advertising strategy.

The role of your slogan is to help your customer understand the benefits of your product/service - so it's important to find a catchy and effective slogan name.

Often times, your slogan can even be more important than the name of your brand.

Here are 6 tips for creating a catchy slogan for your roadside assistance business:

1. Keep it short, simple and avoid difficult words

A great rule of thumb is that your slogan should be under 10 words. This will make it easy for your customer to understand and remember.

2. Tell what you do and focus on what makes you different

There are a few different ways you can incorporate what makes your business special in your slogan:

• Explain the target customer you are catering your services towards
• What problem do you solve?
• How do you make other people, clients, or your employer look good?
• Do you make people more successful? How?

3. Be consistent

Chances are, if you're coming up with a slogan, you may already have your business name, logo, mission, branding etc.

It's important to create a slogan that is consistent with all of the above.

4. Ensure the longevity of your slogan

Times are changing quickly, and so are businesses.

When coming up with your slogan, you may want to consider creating something that is timeless and won't just fade with new trends.

5. Consider your audience

When finding a catchy slogan name, you'll want to make sure that this resonates across your entire audience.

It's possible that your slogan could make complete sense to your audience in Europe, but may not resonate with your US audience.

6. Get feedback!

This is one of the easiest ways to know if your slogan will be perceived well, and a step that a lot of brands drop the ball on.

Ask friends, family, strangers, and most importantly, those that are considered to be in your target market.

Here's some inspiration for coming up with a slogan for your roadside assistance business:

• Little And Fickle
• Lonely And Holey
• Common Roadside, We Care
• Roadside Will Make You Feel Better.
• Muddy And Plucky
• Very Roadside, Take A Seat
• Small Roadside, We're Commiitted
• From Uncommon To Usual
• Lonely And Boney
• Little Tree Lawns Are What We Do
• Very And Leery
• Roadsides With Quantity
• Lonely Sidewalk, Grassy Road
• Muddy Bin, Small Sidewalk
• The Best Part Of Waking Up Is Roadside In Your Cup.
• Muddy Roadside, Done Right
• Roadside Chews 'Em Up And Spits 'Em Out.
• Small Cars Are What We Do
• Common Passers Are What We Do
• Mamma Mia, That'sa Spicy Roadside!
• Mild Green Roadside Liquid.
• Little Roadside, Better Results
• Roadside Have Another Serving.
• From First To Modern
• Break Through With Roadside.
• Roadside Strikes Back.
• Small Ground, Lonely Parking
• Roadside, Where Success Is At Home.
• Roadside The Sign Of Success.
• Work Hard, Stalls Harder
• Put Of The Road
• Muddy And Scummy
• Grassy Parking, Common Ground
• It's That Roadside Feeling.
• Dusty And Scruffy
• Think Different, Think Roadside.
• Only The Crumbliest Flakiest Roadside.
• Muddy Kerbsides Are What We Do
• Little And Brickle
• Roadsides With Stream
• Aim Of The Kerbside
• Look, Ma, No Roadside!
• Wrapped Up With Roadside.
• Buy Roadside Now!
• Common And Solemn
• Roadside Is Rolling, The Others Are Stoned.
• I'm Lovin' Roadside.
• Roadside, It's As Simple As That!
• From Intermediate To Terminal
• Grassy Rickshaws Are What We Do

The Consulting Business Model

When implementing a consulting business model, you have a number of approaches to choose from:

Here are a few of the most common consulting business models:

1. The Time-Based Model

This is one of the more traditional consulting business models - where your rate, terms, and scope of work are outlined at the very beginning of the project.

Typically, with this model you would choose a day rate or an hourly rate.

2. The Project-Based Model

With a project-based model, you and your client agree on the scope of work you will be performing for a set amount of money.

There is typically a contract in place which covers the deliverables and expectations from both parties.

3. The Retainer-Based Model

The retainer model involves providing ongoing service for your clients over a specific period of time.

You may not provide a specific deliverable for your client, but instead, a broad scope of work over a set period.

4. The Consulting-Firm Model

This model is becoming more and more popular. The consulting firm model involves hiring freelancers or employees to complete work for your clients on your behalf.

Typically, in this situation, you still manage the relationship with the client, but you delegate some or all of the work to your team.

Which model should you choose?

The best way to determine which business model you will choose is to research other entrepreneurs or agencies in your space that are offering the same or similar service.

This will allow you to identify your competition, set your pricing, and determine your target audience.

Learn more about starting a roadside assistance business :

Where to start?

-> How much does it cost to start a roadside assistance business? -> Pros and cons of a roadside assistance business

Need inspiration?

-> Marketing ideas for a roadside assistance business

Other resources

🎬 How To Start A Roadside Assistance Business

How Much Does It Cost To Start A Roadside Assistance Business

If you are planning to start a roadside assistance business, the costs are relatively low. This, of course, depends on if you decide to start the business with lean expenses or bringing in a large team and spending more money.

We’ve outlined two common scenarios for “pre-opening” costs of starting a roadside assistance business and outline the costs you should expect for each:

• The estimated minimum starting cost = $62
• The estimated maximum starting cost = $23,259

Raising Money For Your Roadside Assistance Business

Here are the most common ways to raise money for your roadside assistance business:

Bootstrapping

You may not need funding for your roadside assistance business.

In fact, many entrepreneurs take this approach when starting their own business, whether they have a little amount of cash or a substantial amount to get started.

So what exactly does the term "bootstrapping" mean?

This method essentially refers to self-funding your business without external help or capital and reinvesting your earnings back into the business**

Bootstrapping means building your company from the ground up with your own, or your loved ones, personal savings and reinvesting all earnings back into the business

Here are some tips to consider when bootstrapping your business :

• Use your savings as your capital - one of the best ways to bootstrap your business is to collect your savings and use them as startup capital. This will also help you avoid using your personal or business credit cards when getting started.
• Determine exactly how much capital you need and how much capital you have to get your business off the ground. Generally, when bootstrapping your business, you may want to consider starting a business that involves less startup capital.
• Consider starting a business that will generate immediate returns so you can put money back into the business
• Be as lean as possible - this refers to cutting down expenses as much as possible, such as payroll, fancy software tools, unnecessary travel, renting an office, etc
• Consider outsourcing instead of hiring - in the beginning, you may not need to hire someone permanently to help run your business. It tends to be much less expensive to outsource work to a freelancer and hire someone permanently down the road!

Want to learn more about bootstrapping your business? Check out this article

VC funding is a traditional and long process, but an effective way to raise money for your business.

The term "VC funding" refers to venture capital firms investing in businesses in exchange for equity.

The VC's (venture capitalists) are an individual or small group investing in your business and typically require substantial ownership of the business, with the hope of seeing a return on their investment.

VC's are typically the best approach for businesses with high startup costs - where it would be very difficult to raise the money on your own or through a loan.

When deciding whether to take this approach, it's important that you have a few things in place first, and know what you're getting yourself into:

Determine if your business is ready

Having an idea is not enough to get VC funding.

Typically, VC's will check to make sure you have these things in place prior to closing any deal:

• An MVP (Minimal Viable Product)
• A founding team with all proper documents in place (articles of organization, business formation)
• A validated idea with actual customers buying your product/service

Get everything in place and build a pitch deck

A VC individual or firm will be expecting a fine-tuned presentation that gives an overview of your business.

Here's what you should consider including in your pitch deck:

• Management team, their previous experience + current roles in the business
• Market challenge and solution
• Company financials - including a P&L statement, cash flow statement, and projections
• Company progress
• Investment amount - how much do you need and why?

Research the right VC to fund your business

Research the types of VC investors out there and what niche they focus on.

Then, put together a list of target VC's you want to approach and your strategy around setting up meetings.

Be sure you have everything in place (as discussed above) before setting up any meeting!

Make sure the terms and expectations are right for your business

Committing to VC funding is a big deal and a decision that should not be made lightly.

Although the money and experience from VC's can help your business quickly grow, you are also giving away a stake in the company, and the money comes with strings attached.

Be sure you do your due diligence in finding the right investor - one that truly believes in the growth and success of your business.

What Skills Do I Need To Succeed In Starting A Roadside Assistance Business?

As a roadside assistance business, there are several essential skills and characteristics that are important to identify prior to starting your business.

Let’s look at these skills in more detail so you can identify what you need to succeed in your day-to-day business operations:

Resarch and Writing Skills

Research and writing skills are critical when starting a roadside assistance business. Here's what this looks like:

• Basic computer & technology skills (Microsoft office or Google sheets/docs knowledge, data input, and proficiency in typing)
• Creativity & originality in your work and approach
• Great communication skills and ability to meet deadlines
• Understanding of SEO

Other skills that businesses find valuable include digital marketing skills, basic web design, and accounting abilities. Some employers may also look for a roadside assistance business that has a bachelor's degree or formal education.

Additionally, you may want to consider putting together a portfolio of past work and experience. This includes samples of writing/research pieces, from school projects to internship work to career experience.

Design Skills

Whether you are the one designing the product or the decision-maker for the product, an eye for design is critical when starting a roadside assistance business. Here's what this looks like:

• Creative Thinking - the ability to develop or design different products or ideas
• Visualization - being able to imagine or visualize how the product will look
• Articulation - the ability to communicate what the design will look like and how it will be executed
• Detail-oriented - paying close attention to all of the small pieces when designing or working on a project
• Some technical skills - knowledge of the design software you are using to create the product or build prototypes.

Other skills that may be valuable to have when starting a roadside assistance business include digital marketing skills, branding experience, and basic business knowledge.

Business Savvy Skills

When starting a roadside assistance business, there are a few fundamental business skills you will want to learn in order to be successful:

• Leadership and training skills: A great team starts with YOU. Make sure you have all company policies and training procedures in place prior to hiring your team
• Decisive and self-confident: Over the course of your career, you will need decisions that could impact your business significantly. It's important you are able to think clearly and rationally about these decisions.
• Ability to understand the financials : You don't need to be an accountant, but it is important that you are able to clearly understand and define metrics such as expenses, revenue, profit, margins, COGS, etc.
• Strategic Thinking : Setting clear goals and benchmarks, identifying opportunities, risks. Ability to effectively communicate these insights to your team.

These are a few of many business savvy skills you should have (or work on) when starting a roadside assistance business.

For a full list, check out this article here .

Customer Service Skills

Friendly communication with customers and the ability to address service issues is a critical part of the job.

Here are some customer service skills you may want to consider prior to starting a roadside assistance business:

• Professionalism: The way you act, present yourself, and respond to situations all leave an impression on your customer. It's important to stay professional at all times when handling customer requests or issues.
• Problem-solving: When issues arise, it's important that you are able to think quick on your feet and address the situation with a calm and clear solution
• Friendly-manner: This is an obvious one, but customers truly appreciate someone that can respond in a quick, efficient, and friendly manner.
• Proficient in writing: These skills include the ability to write well-crafted emails, service tickets, and any other programs used by the business (ie. chat functions, SMS texting)

Self Motivation Skills

Self motivation and discipline skills are critical in order to become successful in this field.

It's likely that you will find yourself starting and running your roadside assistance business from home, which could mean there are more distractions for you.

Here are the basic skills needed for self motivation & discipline:

• Becoming a self starter: It's important that you are capable of independently completing a task without the help or direction of anyone else
• Listening and following directions : When you are given direction by others, it's critical that you are able to follow directions and ask the right questions in order to get your job done
• Taking the initiative in problem solving: Instead of taking the easy route, you'll need to learn to troubleshoot issues on your own as much as possible.

Advice For Starting A Roadside Assistance Business

We've interviewed thousands of successful founders at Starter Story and asked what advice they would give to entrepreneurs who are just getting started.

Here's the best advice we discovered for starting a roadside assistance business:

Write a Business Plan

Writing a business plan from the start is critical for the success of your roadside assistance business.

Because this allows you to roadmap exactly what you do, what your overall structure will look like, and where you want to be in the future.

For many entrepreneurs, writing out the business plan helps validate their idea and decide whether or not they should move forward with starting the business.

You may want to consider expanding upon these sections in your business plan:

• Executive Summary : Brief outline of your product, the market, and growth opportunities
• Overviews and Objectives : Overview of your business, target customers, and what you need to run your business
• Products and Services : Specifics on the products and services your business will provide
• Market Opportunities : Analysis of customer demographics, buyer habits and if your product is in demand
• Marketing : Outline of your marketing plan and how you plan to differentiate yourself from other customers
• Competitive analysis : Analysis of your competition and the strengths and weaknesses therein
• Operations : Hierarchal structure of the company and what it will take to run the business on the day-to-day
• Leadership Team : Detailing roles and responsibilities of each manager based on their specific skill-set
• Financial Analysis Understanding of all expenses, operating budgets, and projections for the future.

Learn more about how to write a business plan here

Determine Which Business Bank Account You Need

There are hundreds of banks out there, and it can be overwhelming to find one that's right for your business.

Here are some factors you may want to consider:

• Location - Is your bank close enough that you can easily make deposits or get cash?
• Low Fees - Make sure to understand any and all fees associated with setting up and maintaining your bank account. Ask for a list - banks usually try to keep this hidden and in the fine print.
• Online Banking Services - Make sure you can easily navigate through your online portal and you have easy access to everything you need.
• Line of Credit - What do your options look like (even if you don't need this now, you may need this down the road).
• Every bank has something that differentiates them from the rest, so make sure whatever that is applied to your needs and values.

Check out this list of the 13 Best Banks for Small Business in 2020 and what makes them so unique.

Setting Up Your Roadside Assistance Business (Formation and Legal)

When it comes to setting up your business, you may find yourself in a place where you have to make some financial and legal decisions.

The first thing you'll want to decide on is whether you want to be an LLC, S-Corp, or C-Corp.

These three options are found to be the most common when starting a small business, and all serve to protect your personal assets and also provide you with certain tax benefits.

• LLC : All income and expenses from the business are reported on the LLC personal income tax return.
• S corp : Owners pay themselves salaries + receive dividends from profits.
• C Corp : C Corps are separately taxable entities that file a corporate tax return (Form 1120). No income tax is paid at the corporate level and any tax due is paid at the owners individual expense.

Depending on where you're conducting business, you'll also want to consider securing the proper permits, licenses and liability insurance.

Learn more about securing the right permits and licenses ➜

Need to start an LLC? Create an LLC in minutes with ZenBusiness .

How Do I Pay Myself As A Small Business Owner?

Most entrepreneurs start a business to do something they love- but at the end of the day, you still have bills to pay (maybe now more than ever).

But it's important to strike the right balance - if you pay yourself too much, you could be putting your business at risk.

There are two common ways to pay yourself as a business owner:

1. Owner's Draw

Many entrepreneurs pay themselves through an owner's draw. This means that you are technically sean as "self-employed" through the eyes of the IRS and are not paid through regular wages.

At the point that you collect money from the draw, taxes typically are not taken out - so make sure you are prepared to pay these taxes once you file your individual return.

As an owner who takes a draw, you can legally take out as much as you want from your equity.

This type of compensation is suited for Sole props, LLCs, and partnerships. If you’re an S corp, you can pay yourself through both a salary and draw if you choose.

If you decide to pay yourself a salary, you will receive a set and recurring amount. This will be taxed by the federal government and the state you reside in.

The reality is that it can be really complicated to set your own salary, so we have some tips for you to consider:

• Take out a reasonable amount that allows you to live comfortably but also sets your business up for success
• Consider the number of hours you are working weekly + the type of duties you are performing.
• Set your salary based on your industry-standard, location, and profits (or projected profits)
• Look at your P&L statement : Deduct your own pay from that amount. This is important so you can first tackle important business expenses, and then pay yourself from the amount leftover.
• Pick a payroll schedule (and stick to it)! In the US, it's most common to pay yourself and employees twice a month.

To learn more about how to pay yourself and what is a reasonable amount, check out this article .

How To Price Your

One of the most challenging aspects to starting a roadside assistance business is determining how much to charge for your .

When businesses under-price their product, this can be extremely detrimental to their bottom line and reputation.

Often times, businesses under-price their products to drive demand and volume, but that last thing you want is for customers to view your product/service as "cheap." Additionally, this can have a big impact on the type of customer you attract, which can be difficult to recover from.

On the other hand, when businesses over-price , this tends to be just as damaging to the business.

When customers buy, it's likely that they will explore the internet and look at other competitors to ensure they're getting the best value + deal. This is why it's so important that you research your competition and understand where you land in the marketplace.

Here are some factors to consider when pricing your product:

Understand your customer

It's important that out of the gates, you identify the type of customer you want to attract and how much they're willing to pay for your service. One great way to do this is by surveying your customers. Here are some important items you'll want to takeaway:

• Customer demographic: Age, gender, location, etc.
• Buying habits of your customer: What they buy + when they buy
• Level of price sensitivity with your customer

All of these segments will help you identify the type of customer you're attracting and how to price your product accordingly.

Understand your costs

When pricing your , it's critical that you first identify all of your costs and consequently mark up your so you can factor in a profit.

The actual cost of your may include things like:

• The actual cost to make the product (ie. raw materials, supplies, manufacturer).
• Shipping + overhead fees
• Operating costs to run your business

You may want to consider creating a spreadsheet with every single expense involved in operating/owning your business. This will give you an idea as to what you need to generate in order to at the very least, break-even and will help you price your products to factor in a profit.

Create revenue goals

When determining the price of your , you'll want to create goals for revenue + how much profit you want your roadside assistance business to make.

This process is simpler than you may think:

• Think about your breakeven cost (by completing the above step).
• Create a revenue goal based on your break-even cost
• Evaluate the # of items you plan to sell in a given period (make sure this is a realistic number)
• Divide your revenue goal by the number of items you plan to sell

This figure will help determine your estimated price per product in order to meet your revenue goals.

Evaluate your competition

The last piece in determining how to price your is by simply looking at your competition.

The best way to do this is by finding like-minded businesses that offer product(s) with similar perceived value. Then, you can compare prices of the different businesses and determine where your fits best in the marketplace.

All of these factors play an equal part in pricing your , so it's important you evaluate each one individually to come up with an accurate price that will help optimize your business from the start.

Rate Calculator: How to Calculate The Price For Your Services

Our calculator is designed to be simple and easy to use.

The goal is to help you set realistic expectations and understand the hourly rate you should be charging to make your desired profit.

Please input below:

Identify Target Customer

A very critical piece in building roadside assistance business is to identify your ideal target customer.

• Develop a niche and create a consistent brand that reflects your target customer.
• The colors, logo, content, and overall website should resonate with your target customer and should draw them in by helping them solve their specific "need".

Building an MVP (Minimal Viable Product)

When building a roadside assistance business, it's critical that you first validate your product/service rather than rushing to build it right away.

This could save you months, if not years of building the wrong product/service.

If you're hoping to decrease any sort of risk that comes with launching your roadside assistance business, designing a prototype can be a great way to de-risk your situation.

The point of your prototype is that it doesn't have to be perfect.

In the beginning stages, it doesn't matter how rough V1 of your prototype is, it's more important to just get started and you can always refine from there based on feedback from your network and most importantly your customers.

How To Build A MVP

Here are several different ways of building a prototype/MVP:

• Start by building a landing page to see if customers actually need your product and if they are willing to pay for it
• Build a very basic version of your idea and ask for immediate feedback from potential customers
• Present a problem and solution via Facebook/Instagram Ads and see what the response is like

🚀 How To Launch Your Roadside Assistance Business

Build A Website

Building a website is imperative when launching your business, and with the right tools in place, this can be a simple task to check off the list (without having to hire someone).

• Pick a domain name that's easy to remember and easy to type
• Choose a Web Hosting Plan (ie. Shopify, Squarespace)
• Make sure you choose the right theme and design
• Implement the proper page structure (ie. about page, contact page, pricing etc)

To learn more about how to build a stellar website with little stress, we give you all the details on this step-by-step guide .

Best Website Platforms To Use For Your Roadside Assistance Business:

There are a variety of websites platforms out there, and it's important to choose the right one that will set you up for success.

Here's everything you need to know about the two most common platforms for your roadside assistance business:

Free and open-source content management system based on PHP and MySQL.

Free to use/open source but you will need to pay for the hosting.

Pricing: Freemium

• Twitter: @WordPress
• Website: https://wordpress.com/

Businesses using WordPress:

867 successful businesses are using WordPress ➜

Get WordPress ➜

Squarespace

The all-in-one solution for anyone looking to create a beautiful website.

• Personal Plan: $12/month
• Business Plan: $18/month
• Basic: $26/month

Advanced: $40/month

Twitter: @squarespace

Website: squarespace.com

Businesses using Squarespace:

136 successful businesses are using Squarespace ➜

Get Squarespace ➜

Once you have chosen the domain, web hosting, and platform, it's time to get started with the design phase.

Themes are a great way to produce the fundamental style and identity of your website - this includes everything from your font design to your blog post styles.

One of the best ways to get started is to simply explore the various themes (free or paid depending on what you're looking for) and test them on your site.

If web-design really isn't in the cards for you, you may want to consider outsourcing a web designer to help bring your vision and brand to life.

Traditional Launch Strategies For Your Roadside Assistance Business:

There are various different ways you can launch your roadside assistance business successfully.

Here are a few different strategies to get customers excited about your roadside assistance business:

• Set up a Facebook page for your business. This is a great way to establish an online presence
• Host an event in a fun location with drinks & food. This is a great way to get exposure in the local community.
• Get Press! Pitch your story to the media and you may just land in an amazing publication
• Live sales to get customers excited
• Send a hand-written letter in the mail with a discount on your services to the local community/neighborhoods.

🌱 How To Grow Your Roadside Assistance Business

Social Media Advertising

Social Media Advertising is one of the leading ways to get the word out when it comes to roadside assistance business.

There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.

Let's talk about a few of the main platforms and what makes them unique:

• Facebook Advertising - more than 2 billion monthly users. Facebook is the best for lead generation + capturing email addresses for e-commerce businesses.
• Instagram Advertising - approximately 500 million monthly users and has a higher audience engagement rate than any other platform. Instagram ads are best for linking to a product page or landing page and reaches the 18-29 age group most effectively.
• Twitter Advertising - Small businesses typically use twitter ads to drive brand awareness, but the platform is meant more for organic engagement (and is not as heavily used for paid advertising)
• Pinterest Advertising - 175 million monthly users and most effectively reaches the female audience. Pinterest is great for promoting products without "promoted". The promoted pins have a way of blending right in.
• LinkedIn Advertising - 227 million monthly users and is geared towards the B2B market and generates the highest quality leads. Great platform for recruiters, high-end products and services that will help businesses

It's important to first define your goal/objective so that you don't waste time and money into the wrong platform:

Here are some different questions to ask yourself as it relates to your goals:

• Do I want to simply drive brand awareness?
• Do I want to drive users to my website to gather information?
• Do I want to increase sales and get my customer to take action?

From there, choose the platform that targets your audience best and start experimenting!

Learn more about social media advertising ➜ here .

Founder Andy Hayes talks about mastering FB ads and the pixel:

The biggest bang for your buck will likely be mastering Facebook and it’s platform - which we all know is pay for play, so you’ll have to come up with a small amount of budget to start for marketing.

We’ve spent countless hours (and paid numerous coaches) before we cracked the code that works for us on Facebook, but it is working really well for us now.

Some of the most important things to know when it comes to FB Ads:

• Start with retargeting (that’s showing ads to people who already know you but did not purchase). Master this - and start building information on your Facebook Pixel - before you do anything else
• Once you have that down, try working with the 1% “Lookalike” audience to prospect for new customers. This may take awhile because your pixel audience is small, so try layering on interests - 1% Lookalike and your largest competitor, for example. Don’t use interest-only targeting until you master this.
• Great photography and videography is key, as is smart copy. Research what’s out there in your industry and constantly test - what works for one company may not work for other people.
• Make sure you have good offers. For example, we have a $5 trial for our subscription, which converts affordably - if we promoted our subscription with the standard $30 front charge, it wouldn’t be as cost-effective.

Improve your SEO

SEO is not just about driving traffic to your site, it's about driving the RIGHT traffic to your site , and ultimately, converting leads into customers.

One of the most important aspects of SEO is understanding what your customers are searching for, otherwise known as "keyword research."

Here are some tools that can help you choose the right keywords for your roadside assistance business.

• Google Ads Keyword Planner invaluable for discovering search trends.
• Google Search Console is very helpful once your website is up as it shows you what words/phrases are generating traffic.
• Ahrefs and SEMRush are paid tools that allow you to look at results of your competitor's website.

Publish Great Content

Finding keywords is an important piece of the puzzle, but Google also ranks your site based on the actual content you produce, as this is what your customers are reading and engaging with.

There are various different "forms" of content that you may want to consider diversifying on your sites, such as blog posts, articles, studies, and videos.

So let's discuss what google considers "good content:"

• Length - This will vary depending on the page, however, generally having a sufficient amount of content helps search engines recognize that your site is a good source for a specific topic
• Engagement - The longer people stay on your website to read your content, the higher Google will rank your website. It's important to have informative and "thick" content that keeps people reading
• Avoid Duplicating Content - Google will recognize this and may consider your content to have low value
• Ensure pages load quickly - This will also help with engagement and time spent on your website
• Shareability - Create content that people want to share, and is easy for them to share, especially to their social media accounts (ie. "click to tweet" is a great example of this).

Another element of creating good content is creating consistent content.

If (and hopefully you are) publishing content frequently, it's important to stick to a schedule - this helps build brand trust and easy user experience with your customers.

Planning out your content with a content calendar is key to staying consistent.

Here are a few great content calendar tools that can help you:

• If you prefer to keep it simple, your average spreadsheet is just as useful!

Backlinks are an important piece to SEO, as they allow for other websites to link to your content.

Search engines recognize that other sites are essentially "verifying" your content and essentially rank you higher because of this.

Of course, some links are more valuable than others and can affect your site in different ways.

For example, if a highly valuable and credible site like the New York Times links to a page on your website, this could be remarkable from an SEO perspective.

Aside from organically getting mentioned from other sites, there are other ways that you can increase and earn backlinks:

• Create infographics with relevant data that people want to share
• Promote your content on different sites/look into "guest blogging"
• Contact influencers/journalists/bloggers and ask them to mention you!
• Write testimonials for other sites in exchange for a backlink
• Leverage existing business relationships

Learn more about the fundamentals of SEO ➜ here and check out Neil Patel's 3 Powerful SEO Tips below

Build A Blog

One of the most effective ways to build brand awareness and grow your business is through consistently blogging.

We've outlined some useful tips for you to consider when creating content:

Consistency and Quantity

Quality is important, but it should be the standard for any content you publish.

What’s more important is consistency and quantity.

Consistency is as simple as committing to publishing and sharing a certain number of posts per week. For me, that’s three per week right now.

This kind of commitment is key, because one day, a random post will blow up, and you will have never expected it.

Oversaturation

The easiest mind trap is to think "I’m posting too much", and “I need to give my readers/audience/this platform a break”.

This is nonsense.

There is no such thing as oversaturation. Well, there is, but it is just someone else’s opinion.

For every person that tells you you are posting too much, there is another person that wants even more of your content.

You should ignore people’s opinions on how much you post.

Patience & Persistence

Keep posting, keep trying, and keep putting out good content on the regular. Your time will come, and when it does, it will change everything.

The only thing you have control over is your content.

You can’t control how people will react to it. You can’t control pageviews, likes, or shares.

So the only metric you should focus on is how much content you can put out in a week, month, etc.

Where to share your blog content

Mailing List

I know it sounds obvious, but the best places to share your content is on your mailing list. It is guaranteed traffic and it is a great way to get rapid feedback from your most loyal readers.

Send newsletters often. I have done once a week since starting, and I’m moving to twice a week soon.

Work on increasing your mailing list as well. Look into ways to increase your conversion rate to your mailing list. I added a flyout popup thing to my site and now I’m collecting ~30 emails per day.

An email newsletter is one of the most powerful assets you can have and it is worth its weight in gold.

Reddit is one of my favorite places to promote content.

It is a very scary place because you will often get banned or heckled, but it can really pay off.

Create social media accounts for your blog, the main ones I use:

Twitter Facebook Instagram LinkedIn

Set up Buffer and share all of your blog posts to all of your accounts. All of these little shares really do add up.

Automate this as much as possible. I automated all of my social media for Starter Story.

Facebook Groups

When I started out, I put together a spreadsheet of relevant Facebook groups for my niche, and I would post to these groups whenever I had a big story I wanted to share.

Experiment With Pay Per Click Ads (PPC)

Pay-per-click (PPC) is a performance-based marketing method that allows you to show specific ads for services or products oriented to a very defined target, with the goal that the user visits your website or landing page.

Here are some tips to consider:

• Consider connecting the ad to your corresponding landing page so that the audience receives the necessary information after clicking on the ad.
• Conversion Tracking: When running PPC campaigns, be sure to run the ads with conversion tracking.
• Focus on quality keywords, even if there are few as this will save you time and money. When assessing the performance of a keyword, it's important to track the expense, conversion, and cost per conversion, as well as the ROI.

PPC advertising can be a very important lead generator as long as it's done properly. Your PPC campaign is intended to drive traffic to your website and help the business scale.

Additionally, if the campaign is not having the desired results, you can make the necessary changes immediately to improve them.

Ryan Schortmann, founder of Display Pros talks about their investment in PPC Ads:

My name is Ryan Schortmann and I’m the founder of Display Pros. We are a custom trade show display booth company offering easy to use portable display “kits” for small and medium businesses wanting to get into the trade show game.

It did not take long to come to the realization that to compete at any reasonable level, we were going to need to take the plunge and invest in Pay Per Click ads and display.

From experience, I know that it is important to give Google’s hivemind some time to settle in before each campaign starts seeing consistent results (this is largely dependent on budget).

A certain amount of PPC budget must be viewed as a “marketing research” expense and then you can look at the analytics data and make informed decisions on where to refine, tweak or plain scrap an idea.

Google Shopping was an entirely new concept for me. You can’t assign keywords to products so at first, I was asking myself “How the hell do you refine these?”. Then I found some good reading material and courses and learned of some advanced methods that the pros are using. It turns out you can utilize negative keyword lists combined with the priority setting on each shopping campaign to “shape” the keywords that are coming in and how much you are spending on them.

To learn more about PPC Ads and Google Shopping, check out this video to learn everything you need to know!

Grow Your Email List

The more engaged list of emails, the more engaged customers, which ultimately leads to more sales.

One of the best ways to start growing your list is by providing your customer with something free (or discounted) in return.

This could also be anything from:

• Fascinating case study
• Video series
• Free week of the product
• Discount on the product

Learn more about how to grow your email list and improve email marketing ➜ here .

Dylan Jacob, founder of Brumate states their email collection tactic that is proven to work:

We use Spin-a-Sale for this (you spin a wheel for a discount code in exchange for subscribing to our email list). This has been the best email-collecting tool we have found because the customer truly feels like they won a prize rather than just a coupon code.

Even if a customer doesn’t convert right away, if we have their email we have a 19% chance of converting them into a future customer whether that is through future promotions, new releases, or simply just sending an email at the right time for a purchase to finally make sense for them.

We also have a return customer rate of over 14%, so one out of every 6 people we convert will end up buying from us again with an average order value of over $60.00.

Add an exit-intent popup to your online store

A great way to double, or even triple, your email opt-in rate and to grow your list is to add an exit-intent popup to your site, and offering a discount or content upgrade for subscribers.

Here's an example of what that might look like:

One thing that I spent years NOT doing, that I now kick myself about, is adding an "exit intent pop-up" to our site, which lets people enter a sweepstakes to win a Xero Shoes gift certificate.

That one idea has added over 100,000 subscribers to our email list, which is one of our most effective marketing channels.

Improve Your Email Marketing

Different types of emails

Here are the most common types of email campaigns you can send to your customers and their benefits:

• Welcome emails - the perfect way to provide information from the start with a clear CTA. Make sure to tell your customer everything they need to know about your product or service.
• Newsletters - a great way to give customers updates or send out your latest content
• Product launch emails - the quickest (and easiest) way to increase sales is by selling to current customers. Make sure they're the first on the list to know about your new product
• Promotional emails - promote discounts, deals coupons etc. Try and make this feel exclusive and for a limited time only
• Abandoned cart emails - give your customers a reason to complete their purchase!

Here's a great resource for finding curated email designs, for all types of email campaigns!

Abandonded Cart Flow

The abandoned cart workflow is one of the most effective strategies for turning your lead into a customer, and a powerful tool to have if you're an e-commerce business.

Think about all the times that you went on a shopping frenzy only to add items to your cart and then either forget or realize nows not the right time to pull the trigger.

Then, minutes later you receive an email saying "Hurry up! Your cart is waiting - and we want to provide you with 20% off your order."

Maybe that's the special touch (and discount) you needed to pull that trigger.

Implementing this workflow can automatically trigger this for your business every time a customer abandons their cart.

Here's a great example of an abandoned cart email from Brooklinen :

Things they do well:

• Showcase 5-star reviews from other customers
• Offer a small discount + free shipping
• Great design + clear call to actions!

🏃🏼‍♀️ How To Run Your Roadside Assistance Business

How To Retain Customers For Your Roadside Assistance Business

Retaining customers is one of the most effective ways to grow your roadside assistance business.

Oftentimes, it's easy to find yourself focusing on generating new customers, vs retaining your current ones.

Look at it this way - you are 60-70% more likely to sell a new product to an existing customer than you are a new customer.

That's not to say that finding new customers and revenue streams is not important, however, the easiest (and most inexpensive) source of new revenue is right there in front of you.

Here are some ways you can retain customers for your roadside assistance business:

• Responding to comments on social media
• Send discounts (or freebies) to loyal customers
• Provide valuable content, for free
• Write a hand written thank you note
• Provide awesome customer service and build relationships with customers

To find out more tips and tricks on retaining customers, check out this article ➜ here

Diversify Your Product Line

Adding new products to your business is a great way to expand into new markets and grow your business.

It's important to note that adding new products and diversifying may not be in the cards for you right this moment, and that's okay. You can always consider it down the road.

Here are some reasons you may want to considering adding/diversifying your product

• Meeting the needs of your customers
• Establish yourself as a top provider in your industry and stay ahead of the game with competition
• Resistance to downturns/trends fading
• Create new revenue streams

Word of Mouth

The most tried and true way to grow a roadside assistance business is through word of mouth - some entrepreneurs would say it's more important than all social media.

Why you should focus on word of mouth:

• Consumers trust word of mouth above all other forms of marketing
• 92% of consumers believe recommendations from friends and family over all forms of advertising
• 64% of marketing executives indicated that they believe it is the most effective form of marketing

Learn more about word of mouth in our guide: 30 Ways Founders Grow Their Business ➜

How To Crush The Sales Process For Your Roadside Assistance Business

You may find yourself in a spot where you're ready to hire a few (or many) salespeople to support the sales conversion process.

Regardless if you have one or thirty salespeople, it's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

Mike Korba, co-founder of User.Com walks us through the entire sales process and which teams are responsible for what:

User.com Sales Process

Each user and account is qualified with a specialist. For business leads, they are handled by the sales team, and if they are qualified we give them a demo, more than often at the end of their fourteen-day trial. If they’re happy they’ll add a payment, and get an account manager, so a customer support and success team who will help implement the solution and to use the technology.

Sometimes, users will convert naturally on their own, after using the freemium product and finding it to be something that they will find beneficial.

After they convert, we help with onboarding , give them some personalized tips for their specific business or industry to grow plus all kinds of support, for whatever they need - something we take huge pride in.

The team is right now more than 30 people, with more than half working on the IT and product side, and the rest are in three teams: Support, Marketing, and Sales who all work together very closely.

Build a Referral Program

Word of mouth is one of the best ways to get the word out about your business and acquire new customers. Especially when you are starting out, it’s important to build a solid referral program to encourage existing customers to help you find new ones.

A great way to do that is by offering a reward (ie. credit on your service or cash) to customers that refer you to their friends and family.

A fantastic referral program will help with clout, credibility, and establishing yourself in the space.

We put together the best resources on the internet to help you start your roadside assistance business.

• How To Start Emergency Roadside Service Business
• Unstuck: A Tool For Yourself, Your Team, And - Amazon.Com

Web Resources

• How Do You Start A Roadside Assistance Business - All
• How To Start A Roadside Assistance Business - Step By Step
• Rob The Roadside Driver- How To Start Your Own Roadside Assistance Business

Case Studies

• How Much Does It Cost To Start A Roadside Assistance Business? (In 2024) 1 of 3
• 51 Marketing Ideas For A Roadside Assistance Business (2024) 2 of 3
• 39 Pros & Cons Of Starting A Roadside Assistance Business (2024) 3 of 3

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It never fails — you’re almost to your next appointment when you run out of gas or get a flat tire. Roadside assistance can help you out in both situations. You might even have the service already, free of charge.

Roadside assistance coverage helps drivers when they can’t get their car back on the road. Whether you lost the car key, ran out of gas or need your car towed, having a roadside assistance plan can get you out of more than one emergency situation.

See what you could save on car insurance

» MORE: Get free car insurance quotes

What does roadside assistance cover?

Roadside services vary depending on the company, but often include:

Changing a flat tire.

Fuel delivery.

Locksmith services.

Battery jump-start.

Winching, which is pulling a car with a chain or rope if it’s stuck in snow, ice or mud.

With a roadside assistance plan, you typically pay a monthly or annual fee for coverage. Then, when you need help, you can get services at no extra charge or at a discount.

Another option is to pay per incident for roadside coverage. Instead of paying every month whether you use the service or not, you can pay when (and if) you need help.

Choosing a roadside assistance plan

Roadside assistance might be available through your:

Car insurance company.

Membership in AAA or other organization.

Car manufacturer.

Cell phone provider.

Credit card company.

Some options are pricier than others, but don’t base your decision solely on cost. All roadside assistance plans are not the same, so be sure to ask these questions:

How much does this plan cost, and what does it include? Are there any additional fees?

Roadside assistance can cost anywhere from $5 to more than $100 a year — or it might be a free perk from your credit card company or new car manufacturer.

You may have additional expenses beyond this base price for certain services. For example, your plan might cover fuel delivery but require you to pay for the gas. Some policies also limit the number of manual labor hours or how many miles a car can be towed before you’re charged an extra fee.

How many service claims can you have each year?

A few policies allow unlimited service calls, but many will cover only four claims per year. After that, you can usually still get help by paying an additional fee. But if you have too many claims, some companies might not offer you roadside assistance coverage in the future.

Are you covered if you’re not in your own car?

While insurance companies and car manufacturers generally provide service based on the car, membership organizations such as AAA cover the individual. This means you can call for help if your friend’s car breaks down while you’re along for the ride.

Does the policy extend to others?

Membership organizations usually allow you to add household members for an additional fee. Some plans through cell phone companies provide coverage based on whoever has the enrolled device. For example, if your friend borrows your enrolled cell phone and needs roadside assistance, the incident would be covered even if you’re not there.

Will service claims affect your car insurance rates?

If you buy roadside assistance coverage through your auto insurance company, excessive claims could affect your rates. As long as you use the plan only for occasional emergencies, you likely won’t see your rates rise. However, some companies may increase your rates if you have a large number of emergency road claims.

Your car insurance rates won’t be affected if you use roadside assistance from a different source, such as AAA or a credit card company.

» MORE: Compare car insurance rates

Where to get roadside assistance

If you want to buy a roadside assistance plan, think carefully about where you want to purchase it. We’ve detailed several options below to help you determine what method is best for you.

Auto insurance company

Auto insurers generally offer roadside assistance as an optional coverage, but it may be available only if you buy comprehensive and collision insurance . The amount of incidents covered per year varies by insurer, so make sure to ask your insurance representative for more details.

While not all insurers offer roadside assistance, many do, including:

Allstate : You can add roadside assistance to your insurance policy starting at $25 a year per car. If you don’t have an Allstate policy or prefer a membership that includes additional services, there are two to choose from, ranging from $89 to $164 a year. Depending on membership level, the policy includes five to seven service calls a year. If you don’t want to commit to a plan, Allstate has a pay-per-use option starting at $119 a tow.

Erie : Coverage costs about $5 a year per car and is available only if you have comprehensive or collision insurance. Benefits include towing to the nearest service garage, plus 20 miles.

Farmers : Coverage costs vary by state and policy.

Geico : Roadside assistance starts at $14 a year per car, including lockout services up to $100.

Progressive : Coverage includes benefits such as towing services anywhere within 15 miles or to the nearest repair facility.

State Farm : Roadside assistance varies by policy. State Farm also offers pay-per-incident coverage.

» MORE : What is auto insurance ?

AAA and other member organizations

Membership organizations can be pricier than other roadside assistance options, but they come with benefits you typically won’t find in other types of plans. With an organization like AAA or Better World Club, you can get emergency road benefits plus perks like assistance in booking travel and discounts on hotels, car rentals and movie tickets.

Both AAA and Better World Club offer different membership tiers. Better World Club, which focuses on environment-friendly values, costs $61.95 a year for a basic plan and $99.95 for a premium plan. AAA membership costs differ depending on tier and location, but pricing can range from around $65 to about $125 a year.

These plans often include four service calls per year but may vary by company and membership tier. Both companies let you add people who live in your household for an additional fee.

AAA and Better World Club are not the only membership organizations that include roadside assistance. For instance, if you own a recreational vehicle and care more about camping discounts than travel, Good Sam Club, which caters to RV owners, might be a better fit for you. Good Sam offers auto-only coverage at $49.95 a year, and packages for auto and RV ranging from $64.95 to $119.95.

Car manufacturer

You may already have free roadside assistance coverage if you’ve recently purchased a new vehicle. Some car manufacturers automatically include it when you buy a new car . Coverage is usually limited to a certain number of years or miles. Here are a few examples.

Cell phone company

Some cell phone companies, including Verizon and AT&T, also provide emergency road service coverage.

A Verizon plan costs $4.99 a month per phone line for four claims a year. The maximum benefit per incident varies depending on the service provided. For example, winching is provided up to a $100 service limit. If you're a Verizon customer but don't have an emergency roadside plan, you'll pay $89.95 per incident.

AT&T charges $2.99 a month for coverage, and the first month is free. You are limited to four service events a year, up to a $75 maximum benefit per incident.

Both companies provide roadside assistance through Signature Motor Club, a subsidiary of Allstate, and allow anyone to use this service if they have the enrolled device with them at the time of need.

Credit card company

If you have a Mastercard or Visa credit card, you may already have access to roadside assistance. Some of these cards provide pay-per-incident coverage, which means you’ll pay each time you use the service but won’t be charged anything if you never use this benefit. There’s no monthly or annual fee for this type of roadside assistance, although there may be an annual fee for the credit card itself.

Visa and Mastercard offer roadside dispatch at varying rates based on the specific card you have. For example, Visa Signature credit cards generally charge $79.95 per incident, with no limit to how many times you use it.

Do you need roadside assistance coverage?

Whether you want to buy a roadside assistance plan is a personal choice. If you only drive short distances or have coverage automatically through your car manufacturer or credit card company, you might not want to spring for the extra protection. And if you barely use roadside assistance, then you might be comfortable paying out of pocket on those rare occasions.

Still, depending on your situation, an emergency road service plan can help ease anxiety and save you money in the long run. It might be worth it if you:

Have an upcoming road trip.

Want the additional benefits a membership organization offers.

Have a long commute.

Have an older car.

Prefer the convenience of having coverage.

Aren’t familiar with service garages or car mechanics.

On a similar note...

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YOU ARE AT: Home » What to Do If Your Car Breaks Down in The UAE: An Ultimate Checklist

What to Do If Your Car Breaks Down in The UAE: An Ultimate Checklist

• July 23, 2024

Having a car breakdown is never a good thing, and in a country like the United Arab Emirates, other climatic and traffic conditions can also make it worse. Some may advise drowning the sorrows, while for others the silence is the best they can do; but, having a clear plan of action is helpful since it means that one can handle the situation rationally and logically. Here is a fully packed guide of what to do when your car is involved in a breakdown in the UAE. 

1. Chill Out and Think

The first process here is to calm down. Panic can make a person make wrong decisions or do things that are completely illogical. Having consoled yourself, then look at the situation. Decide whether the area where you are presently is secure or not. In this case, there are many cars passing through the highway or busy road hence if a car breaks down in the middle of the road, it is very embarrassing and dangerous therefore one is supposed to act fast. 

 2. Contact Emergency Services 

In the UAE, the police emergency number is 999 and for ambulance service the emergency number is 998. However, during a breakdown, you do not require such services as the emergency ones unless there are cases of injury or when the car is posing a great danger to people’s lives. 

3. Call a Tow Truck or Roadside Assistance Service

When you contact a roadside assistance service, provide them with:

• Your Location: Use your phone’s GPS or provide clear landmarks or road signs to help them find you.
• Description of the Problem: Briefly describe what happened to your car. This helps the service prepare for the type of assistance you might need.

4. Wait Safely for Help 

While waiting for roadside assistance or a tow truck, follow these tips to stay safe:While waiting for roadside assistance or a tow truck, follow these tips to stay safe: 

• Stay in Your Vehicle: According to the location, when it is on the Highway, the safest position is to wait inside the car with the seat belt on until assistance is sorted out. 
• Remain Visible: Never cross to the other side of the car if you need to leave the car, always ensure you use the side that faces the few or no traffic. If you have them, use reflectorized warning triangles or flares, for increased visibility in the dark. 

 5. Document the Incident 

This is particularly relevant if the situation which led to hair loss requires the submission of insurance claims. Take photos of: 

• Your Car: Demonstrate the damage or the state of the automobile. 
• Your Location: Remainder; the signs, landmarks, or any other features that can be incorporated in the map. 

If there are witnesses, get their details, in case they might be helpful if you need their statements. 

6. Arrive at a Garage or Service Center

Once your car is towed, it will be taken to a garage or service center. You can either:

• Select a Garage: If you have a preferred mechanic or garage, inform the tow truck driver.
• Use a Recommended Service Center: If you do not have a preference, the roadside assistance service might take your car to a recommended service center.

7. Follow Up on Repairs

After the car is at the service center you’ll need an ECU repair :

• Get a Diagnosis: The next step is to explain the issue to the mechanic and inquire for more detailed information on the problem as well as on the probable repair costs.
• Review Insurance Coverage: In the event of some damages, it is advisable to contact the insurance company to know what expense is incurred in the repairs. 

8. Consider Preventative Measures

Once you resolve the breakdown issue, it’s a good idea to take steps to prevent future incidents:

• Regular Maintenance: The last aspect entails closely following the suggested time before the next car service, which could entail an oil change, tire rotation, or any other evaluation. 
• Emergency Kit: Ensure an additional kit is kept in the boot of the vehicle, some of the items include the spare tire, spanner, cables, and jumper. 
• Roadside Assistance Plan: If you have no option it might be advisable to see how you can get into a roadside assistance plan.

9. Understanding UAE Regulations

In the UAE particularly, there are laws pertaining to breakdowns of motor vehicles. For instance:

• Freeway Breakdown: On a freeway or major road, as an example, your car is legally unfit to be driven and therefore, you must call for a tow.
• Vehicle Registration: It is a legal mandate to have registered and insured cars thus it is essential to make sure that these are well updated.

Car breaking down especially in the UAE can be a nerve wracking experience but at least having a fairly good idea of what is expected will ease the process of handling the situation. If you remain composed, calling the proper services, and adhering to avoidance techniques, then the disruption and time to resume vehicle use are reduced. Knowing the specific rules and maintaining the car properly will take you a step further ensuring yours and others safety as well as readiness.

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• Emergency Services , intlbm , Preventative Measures , repairs , Roadside Assistance , safety , Service Center , uae

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