How To Start A Roadside Assistance Business and Make Money

Questions on how to start a roadside assistance business have taken a different dimension in our society today. A motorist experience on the road might become frustrating and kinda exhausting perhaps your vehicle breaks down in the middle of the road.

This could potentially lead to unexecuted accidents and obstruct the flowing traffic indirectly. One of the significant means to solve this issue is by assisting cyclists or motorists who experience failures while operating their vehicle, this is a vital objective of roadside assistance workers. 

Furthermore, every detail you need to be aware of in terms of starting a roadside assistance business whereby your main aim is to assist travelers whose vehicles experience minor faults or failures on the road. 

From the reasons why you need to invest your time and money into this type of business, how to begin the business, the requirements, ways to grow your roadside assistance business and many more.

What Exactly Is Roadside Assistance Business All About?

A roadside assistance personnel is an expert or professional who engages in assisting vehicle owners, motorists or cyclists who encounter one or two troubles on the road and needs help in getting these problems solved. 

For example, if your car engine broke down by the side of the road and you probably feel stranded and don’t know what to do. You need to know that it’s the job of entrepreneurs involved in roadside assistance businesses to provide assistance and solve problems. 

What Are The Categories Of Roadside Assistance Business?

Before we dive into the topic on how to start a roadside assistance business, there is some information an entrepreneur ought to be aware of. You will be required to know the categories of a roadside assistance business and choose your area of expertise before starting out. This will really help minimize the level of competition. 

Below are the categories or areas of expertise that you can decide to select in the roadside assistance business.

• Roadside Assistance Services
• Flat Tyre Services
• Filling Station Services
• Battery Jump Start Services
• Car Towing Services

Meanwhile, the following segment of the article will focus on how to start a roadside assistance business. 

How To Start A Roadside Assistance Business?

Regarding business and entrepreneurship, starting a roadside assistance business is not easy to pull off as it requires constant monitoring of the needs of your customers and keeping up with the industry standards.

It’s important to note that roadside assistance services are vital for keeping our roads safe but are often hard to come by. However, with some strategic planning and research into the right methods, you should be able to start your own roadside assistance business without a significant amount of trouble.

Here are the procedures to follow in order to establish this business:

• Create a Business Plan

• Registration Of Your Business

• Decide Which NICHE To Concentrate On

• Know Your Major Competitors

• Conduct Market Research

• Get The Necessary Professional Certificates / Apply For A License And permits

• Get Commercial Liability Insurance 

• Trademark

• Choose A Suitable Location For Your Roadside Assistance Business

• Build A Roadside Assistance Business Website.

Create a Business Plan 

Putting together a plan will ensure you know all the necessary steps to go through before starting a roadside assistance business.

You are expected to include in your plan, the business startup costs, the strategies you intend to implement, the potential outcome of your business and many more.

Registration Of Your Business

There are several ways to do that, you could do a DBA which basically means registering the business under your own name. It all depends on the tax bracket as you need to register your business with the state as a sole proprietor, corporation or LLC. 

Decide Which NICHE To Concentrate On

It’s important to understand that your business will be successful in the long run if you opt-in to focus on a specific niche or area of concentration. 

You can choose from the aforementioned categories of roadside assistance business or the area of expertise that has been highlighted in a segment of this article above.

Know Your Major Competitors

In the roadside assistance industry, the most prominent competitors in the roadside assistance industry are AIS and AAA. The above companies offer a wide range of services such as towing, jump starts, tire changes, flat repair, fuel delivery and others. 

Do you now realize why it’s so important to decide on a niche to focus on, a significant reduction of competition?

Conduct Market Research

One of the guidelines needed to start a roadside assistance business is to conduct market research for the potential of your business. Note that the more thorough your research the better off you will be able to manage your business.

Identify your potential target markets by setting up interviews with prospective customers along with analyzing their needs and purchase patterns.

Get The Necessary Professional Certificates

Another procedure on how to start a roadside assistance business is by getting a proper certificate that proves you are an expert in the field. 

Having the necessary legal documents you need to operate a roadside assistance business, the first thing that you need to do is contact the state department of motor vehicles and ask them for their list of requirements. 

After that you can contact the local court or county clerk’s office to see what documents they will need from you or may also want to talk with a lawyer or accountant before deciding on which documents are necessary for your business.

There are many benefits of getting the certification, some of which includes helping you improve your chances of landing more clients. A proper certificate can also help you land better roadside assistance opportunities with higher pay and improve your professional image among your competitors.

Conduct Feasibility Studies For Roadside Assistance

To simplify this term, a feasibility study is a process of determining whether or not an idea for a business is profitable. This study helps you determine if your goals will be productive and the amount of time and money needed to invest in order to make them successful.

Get Commercial Liability Insurance 

An entrepreneur might find it difficult to obtain business opportunities without having liability insurance. The average individual can get this aside from the fact that you will be required to pay a certain amount of money. 

This coverage will pay for bodily injury and property damage that you cause to others while offering a service. 

Trademark

Protect your intellectual property with trademark copyrights and patents of roadside assistance. 

These are legal rights granted by a sovereign state to inventors and authors for a limited period of time in exchange for public disclosure of an invention while a trademark is a distinctive sign or symbol that identifies the source of your services.

Choose A Suitable Location For Your Roadside Assistance Business

The perfect location for a roadside assistance business is an area where there are high levels of vehicle breakdowns. 

However, before you set up your business it is important for you to understand the areas that have high rates of accidents.

Here are a few other procedures to consider when starting a roadside assistance business. Consider the number of miles and driving distance from your home, the cost of rent and lease fees in the location, and the density of traffic in the area you prefer to use as a location.

What Do I Need To Start A Roadside Assistance Business?

In terms of the amount of money you need to start the business (capital), this significantly depends on your budgets and plans. 

This is why it’s very important to have a business plan like we started earlier in the article above. You will also need to following Items to start your roadside assistance business below:

• Tire plug equipment
• Air pump
• Mechanical tools
• Vehicles
• Tow truck
• Battery pack
• Mallets
• Floor jack
• Power inverter
• Customer care service center – for people to contact you for help.

How Much Can I Make From Starting A Roadside Assistance Business?

The revenue potential for the roadside assistance business is very high as it’s a constantly growing billion-dollar industry. Most roadside assistance service providers charge high prices depending on their level of expertise. If you implement the right strategies, you stand a chance of making a lot of cool cash.

Conclusion

We hope you have been able to get all the information you need on how to start your roadside assistance business. It’s really important to us that you understand that we’ve highlighted and put them into action in your new business. Thank You.