Towing Issues: Start towing business, tow operators, eggs in one basket

Question
Hey, I live in atlanta, ga. I wanted to know if getting into the towing business a good idea. I want to buy a carrier tow truck. There a lot of auto savage autions in atlanta and surrounding areas. The crime rate of stolen cars are going up. Atlanta is a busy city and there is always car wrecks. Is it a good idea to start my own independent towing company.

Answer
I have always been a supporter for entrepreneurs! My advice is working for a professional and rebuttable towing company first. This is a climate and physical job. Any and all conditions such as: rain, cold, hot, dirty, traffic, exceeding scheduled hours, etc. usually weeds out trainees. Try finding a company that does not do ALL motor clubs. My reasoning is you will need a good mix of tow calls to fully understand the labor side of this business. I understand your focus is salvage but you will need other experience as well. Don't put all the eggs in one basket because current salvage work could be outsourced before you know it. You will also need or possess a strong background in management. I know plenty of great tow operators but they can't explain a business model, P&L, etc. Just because they are great operators doesn't mean they will be great business owners. If you have never been in business for yourself, I suggest business management classes as well. I'm not trying to sway you but you will need a niche that should be used as a selling tool. If you came to me and offered your service, my question would be "what makes you different than everyone else". Find that niche, that service I must have! If not then your company isn't any different than the other 100 or so towing companies in your area. That is why I suggest working for someone else for awhile, find out if you like the work, find out how to improve what is currently offered. I'm not trying to get to deep here but hoping to give some insight. Should you dive in feet first make sure you have plenty of capital because expenses add up fast! Salvage work is hard work on a rollback so the truck will wear faster than most other tow operations so keep that in mine when financing or leasing a truck. Check with your state towing board, DMV, motor carrier, fuel and road tax, usdot, operating authority, etc. for all the licenses and permits. Many states now require background checks, tow operator licenses and all CDL's require drug testing. Trust me, it seems like one hour of towing equals one hour of paperwork. I have only scratched the surface, there is so much more to know. Let's get back to your question, is it a good idea? What do you want from it or wish to accomplish? If you are in it for the money then my answer is NO! Most tow operator salaries far exceed the tow bosses. Most tow bosses would tell you if calculated hourly they would make more money flipping burgers. They just don't say that to sway potential owners it's the truth in many cases! So you are still interested? If I can be of further assistance feel free to ask and good luck. By the way, I am always looking for good help :)