MAKING IT, SPENDING IT: MAKE OR MAR MONEY CHOICES -Investing In Towing Business

Since cars are mechanical objects that are prone to breakdowns or crashes at odd hours and places, the service of towing companies is highly essential on the roads.

When you find yourself stranded on the road due to a car breakdown or accident, the next point of call would be to lookout for a towing van. Towing services offer a range of essential assistance to ensure one is back on the road safely and swiftly.

There are different methods available for towing a vehicle. It could be by pulling the vehicle wheels on the ground (often a cheap method), towing by lifting any two wheels off the ground, or a complete lifting of the vehicle, which is a safer but expensive method, and sometimes it could involve disconnection of some parts before pulling.

Experts in this business believe  towing is a service that will have a consistent demand soon as long as people continue to use vehicles.

Profitability

Sources close to the towing van operators said some make between N30,000 and N200,000 a day. They consider a lot of factors when negotiating the price with their potential client. Some of what they look out for is the distance the vehicle will go, the period of the day, the kind of car it is, and the method it will require to move it to the client’s desired destination.

Damilare Omiremi, who owns a red Toyota Sienna, had to pay N35,000 to engage a towing service at Shagamu that towed his vehicle from their to Lagos.

Another car owner, who had engaged towing service on two different occasions, said he towed a six-tire vehicle from Otedola Bridge to Opebi and paid N20,000. Another time, his Ford had an accident at Ijebu, he paid N60,000 to tow it back to Lagos.

Equipment

To start a vehicle towing business, you will need to purchase tow trucks and equipment. The type and number of tow trucks you will need depend on the size and scope of your business. For example, if you plan on offering towing services for heavy-duty vehicles, you will need a flatbed tow truck that can handle the weight of these vehicles.

Business Capital

LEADERSHIP findings show that a sum of N5 million and above is needed to purchase a strong towing van with other accessories.

License

As a general rule, for you to start towing services, you will need to register your business with the Corporate Affairs Commission (CAC). You will also need to obtain a Tax Identification Number (TIN) from the Federal Inland Revenue Service (FIRS) in Nigeria. After registering your business, you will need to obtain the necessary licenses and permits to operate a vehicle towing business in Nigeria. This includes a Road Transport Safety Certificate (RTSC) and a Tow Truck Licence from the Federal Road Safety Corps (FRSC).