The First 90 Days as an Independent Tow Operator
The Short Answer
Weeks 1–4: LLC, USDOT, insurance, truck ready. Weeks 5–8: onboard 2 motor clubs, land 1 PPI account. Weeks 9–13: hit 3+ calls/day, dial in dispatch, apply for rotation.
The first 90 days determine whether your business ever becomes profitable. Skip a step and you delay revenue by months.
Weeks 1–4: Foundation
- Salvo Digital LLC or state-appropriate LLC filed
- USDOT number applied and issued
- Insurance bound: auto liability, on-hook, garage keepers ($7,500+ /yr)
- Truck registered commercially, DOT number applied to doors
- Business bank account and separate business card
Weeks 5–8: Revenue On
- Urgent.ly onboarding submitted (fastest revenue)
- Agero application submitted
- First PPI contract signed with a small property manager
- Dispatch software configured (RIS, Beacon, or Towbook)
Weeks 9–13: Scale
- 3+ calls/day average for 3 consecutive weeks
- Second PPI contract signed
- Police rotation application submitted
- First month of clean P&L reviewed and filed
The Common Delay
Insurance binder timing kills momentum. Start insurance shopping before you buy the truck — some carriers need 2+ weeks.
Frequently Asked Questions
Can I skip motor clubs and go straight to cash?
You can, but cash-only requires 6+ months of local marketing before volume replaces what motor clubs provide from day one.
When should I quit my day job?
When you've hit $8k gross for 3 consecutive months with reserves for 3 months of fixed costs.
Do I need a CDL?
Not for light-duty (under 26,001 lbs GVWR). Class B for medium/heavy.
Derek Halston
Independent tow operator with 12+ years running light- and medium-duty wreckers on motor club and private property impound work, and the lead instructor at Tow Truck Pro Academy.