How to Start Roadside Assistance Business? A Complete Guide

Starting a Roadside Assistance Business is a profitable and high-paying endeavour. When a car breaks down in the middle of nowhere, many people become frustrated because they have no way to fix it. Here are some things to think about and actions to take while starting a roadside help company.

Over 43,000 roadside help businesses operate in the United States, which is a record number in the previous ten years. The industry is expected to generate $10 billion in revenue in 2022, a 1.3% decrease from the previous year. Despite the industry’s decreased revenue in 2022, it is extremely expected that it will experience stronger growth in the years to come as the global economy awakens from its pandemic-induced coma.

Over the previous five years, the industry’s sales growth averaged 2.6%. The shutdown brought on by the epidemic is mostly to blame for the decline in growth.

Steps to Start Roadside Assistance Business

1. Research the Market

The business market for roadside assistance is unique from other markets. Additionally, if you are new to this line of work, therefore it is advisable to research the market before beginning. For your intended business, a feasibility study will be required. Feasibility analysis takes a broad view of the subject by looking at all facets of the business, its benefits and drawbacks, and offering suggestions for how a business might operate.

Additionally, it discusses how to turn a profit, difficulties unique to a given industry, and startup costs.

2. Business Strategy for Roadside Assistance Business

Your business plan will be aided by market research. It will contain all the information about your new roadside assistance company. A business plan will include some important information, such as:

  • What you need to do to start your business
  • A description of your new venture
  • Required money
  • Required personnel
  • Necessary resources
  • Possible difficulties your business has faced
  • Income from investment

Making a business plan is crucial since it outlines how to proceed with your venture. Inviting investors and applying for bank loans would also be made easier.

3. Choose Your Expertise Areas for Roadside Assistance Business

Choose your specialised niche before starting your own business. You must specify your area of expertise. The following are some areas where the roadside assistance industry excels:

  • Tyre repair services
  • Service for battery jump starts
  • Garage maintenance
  • Facilities for roadside assistance
  • Fuelling station service
  • Facility for towing small trucks
  • Vehicle towing service
  • Service for pulling two-wheelers

You can start with one business skill if you have little funds to put into the company. If you have a limited budget, pick the inexpensive expertise.

4. Study the Market Competition for Information

Select a place with fewer competitors. In a location where there are already dozens of competing enterprises functioning, you can’t expect your business to prosper. Customers typically choose well-known roadside help providers in a certain region. As a result, seek out a less crowded place for your new company.

5. Choose the Right Location for Your Roadside Assistance Business

Choose a location for your office that is convenient for customers to travel to. Apart from the competitive locale, pick a less competitive area because it will be easier. You might choose spots along recently constructed roads where there are few or no road assistance services to offer your services to passing motorists.

6. Roadside Assistance Business Requirements

You want to launch a brand-new roadside assistance company. As a result, you must have all the equipment you’ll need for the start-up, including vehicles, personnel, fuel, mechanical tools, mobile vehicles, etc.

How to Promote Your Roadside Assistance Company

It’s crucial to inform customers about your new roadside help business if you want to grow it.

You can promote your services to customers directly. A more popular strategy is to promote your start-up to well-known providers of roadside help, including local car dealerships, insurance providers, and others.

Every company has a different strategy for getting recognised as a roadside help provider. However, you must make sure that your new company can provide travellers with first-rate roadside support services in their selected area.

Investment in Roadside Assistance Business

Compared to other product-based businesses, beginning a roadside assistance business is quite inexpensive.

You must incorporate your business and pay a fee to register your company name as a trademark. A company licence or permit could cost anywhere from $100 to $300. Incorporation often costs $175.

Office setup: You may rent a decent office for as little as $1500 in a tier 2 city. If you work for a roadside assistance business, your office does not need to be in a great location. In contrast to other businesses, this offers a break from overhead expenses.

Insurance: Getting your company insured is usually a good idea to be ready for unforeseen circumstances. Insurance normally costs $200, depending on the worth of your business and how well it is operating.

Tools like a battery pack, a floor jack, jumper cables, an air compressor, screwdrivers, and a battery analyser are good to have around as well as some spare mechanical components. You may have to pay an average of $3000 or more for this, depending on the size of the geographic area.

Tow truck: To start a business offering roadside assistance, a tow truck is necessary. You can save money for your business by renting a tow vehicle.

Labour costs: To manage your firm, you’ll need to hire a few vehicle mechanics. When compared to other industry segments, labour costs are just somewhat higher.

A Note from Marking Millions

A company that provides roadside assistance assists drivers or automobilists who are stranded on the road as a result of broken-down automobiles. If on-the-spot repair is not possible, assistance may also involve giving out fuel, mending flat tyres, or towing the car to a workshop. By charging customers for these services or offering vehicle owners subscription-based services, a roadside assistance company makes money.

Related: What Is Small Business Consulting? Services, Benefits and Know More

Starting A Trailer Rental Business, A Complete Guide

Leave a Reply