Tow Truck Business Plan: Template, Numbers & Example (2026)
The Short Answer
A tow truck business plan needs five numbers: startup cost ($18,000–$45,000), monthly fixed costs, average ticket, calls per week, and break-even. For one truck, break-even is usually 12–18 calls a week.
Lenders and equipment financers want a plan on one or two pages with believable numbers — not 40 pages of market fluff.
The Lender-Ready Outline
- 1. Summary: service area, truck type, first 3 revenue sources
- 2. Services & rates: hook, per-mile, storage, after-hours
- 3. Customers: motor clubs, police rotation, PPI, dealerships, cash
- 4. Startup budget and funding request
- 5. 12-month revenue and cost projection
- 6. Owner background and licensing status
Startup Budget Template
| Item | Low | High |
|---|---|---|
| Used light-duty wrecker or flatbed (down payment or cash) | $10,000 | $30,000 |
| Insurance down payment | $1,500 | $3,500 |
| LLC, USDOT, state permit, city license | $300 | $1,500 |
| Equipment (dollies, straps, lockout kit, lights) | $1,500 | $4,000 |
| Dispatch software, phone, GPS (first 3 months) | $300 | $900 |
| Working capital (fuel, 60 days) | $4,400 | $5,100 |
| Total | $18,000 | $45,000 |
Break-Even Math
Fixed monthly costs for one truck (insurance, payment, software, phone) typically run $2,200–$3,800. At a blended ticket of about $110 with ~$25 variable cost per call, you need 26–45 calls a month — roughly 6–11 a week — to cover fixed costs, and 12–18 a week to pay yourself a real wage.
What lenders actually check
Your credit, a CDL or clean MVR, insurance quotes in hand, and at least one signed revenue source (motor club approval or a PPI contract). Put those in the plan.
Frequently Asked Questions
Do I need a business plan to start towing?
Not legally, but truck financing and SBA loans almost always ask for one.
How many calls a day does a tow truck need?
About 2–3 per day to break even and pay the owner on one truck.
What revenue sources should I list?
Motor clubs for volume, police rotation and PPI for margin, dealership/body shop accounts for steady work.
Can I get a template?
The course includes a fill-in business plan and 12-month profit tracker.
Related Guides
See every start a business guideGet the fill-in business plan and profit tracker — plus the whole launch playbook
The course includes this and everything around it: LLC → USDOT → insurance stack → motor club onboarding → first paid calls, with scripts, contracts and rate sheets. $39 one-time, lifetime access, 13 bonuses, instant download.
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Tow Truck Pro Academy
Tow Truck Pro Academy publishes state-specific training and reference material for independent light- and medium-duty tow operators — licensing, insurance, motor club onboarding, PPI contracts, and rate math. Published by Salvo Digital LLC.