How to Start a Roadside Business: 5 Simple Steps

How to Start a Roadside Business

Has your car ever broken down in the middle of a deserted road? For every problem in the world, there is always an occupation with a solution. With the rise in the advancement of information technology and business education development, the roadside is a growing industry with hefty profits. If you want to become an entrepreneur, we have made a comprehensive guide for you on starting a roadside business in simple steps. 

What is a Roadside Business? 

If you’re here to learn how to start a roadside business, chances are you are already familiar with the work.

However, for a layperson’s information, a roadside business operates as a savior for motorists whose vehicles might break down in the middle of the road. They assist with refueling, fixing deflated tires, or in worst-case scenarios, providing physical to tow the vehicle to the nearest mechanic. The business revenue is generated by charging the licensed company’s services. 

How to Start a Roadside Business: Step 1

Study the Target Market

Before starting or launching a start-up, one should always gather market research to do a cost-benefit analysis of the market they are entering. For that, performing a feasibility study for the start-up is recommended. This involves doing deep market research by first examining the business’s potential. 

It also consists of the possible revenue, profitability margin, starting capital, and possible challenges one might face throughout the business. Thus, generating the report and seeing if the result of the study is looking good for you helps you determine whether you should go for it. 

According to recent research, the U.S. towing industry is worth $11.3 billion, which gives you an idea about the industry’s potential. 

How to Start a Roadside Business: Step 2

Calculating the Cost 

The starting costs of the business will determine the finance and budget planning. One of the major costs will be that of your tow truck. It would range somewhere between $58,000 and $850,000. However, do not get demotivated because you can avoid this cost by leasing it or renting it out. Financing or leasing it out will reduce costs, allowing you to invest in other equipment. 

Cost reduction is an integral part of learning how to start a roadside business

Other than the vehicle fees, there will be registration and licensing fees to get your business name trademarked. The license and permit fees will be around $100-300. Moreover, setting up your office space would be another overhead expense for the business. This depends on the location you are going to select. 

Getting an insurance package for your business will save you from unexpected calamities, which will cost you an average of $200, depending upon your business’s functionality and value. Lastly, the costs of hiring an automobile mechanic determine the budget for starting and even working capital.  

How to Start a Roadside Business: Step 3

Purchasing the Right Equipment 

If you are confused about what will be the initial equipment to get yourself prepared for the roadside call, here is a list of tools you can begin with:

  • Battery Pack or Tester
  • Flashlight or LED
  • Lockout Kit
  • Gas Can
  • Kneepad for a mechanic’s comfort
  • Floor Jack
  • Spare Tire Release Tools
  • Air Compressor 
  • Tire Plug Equipment
  • Faster Air Pump

How to Start a Roadside Business: Step 4

Develop the Niche You Want to Specialize in 

Before starting a company, businesses must decide which services they want to offer the most. This will reduce confusion about where and how to start a roadside business. There are multiple areas you can specialize in. These include battery jump-start, garage service, fuel filling, and two-wheeler towing service, along with offering the facilities of car towing and roadside.  

So, it depends on the capital you are willing to invest in the business. High capital means you can offer multiple services. 

How to Start a Roadside Business: Step 5

Select a Convenient location for your Business

Choosing the right place for your business is crucial to the success of the business in the long run. The pro tip is to build your office where most customers can reach you. Choosing a less competitive base to start will require the business to implement intense marketing strategies and build a loyal customer base. However, the unique selling point will help the existing market recognize the start-up if you start in a competitive location.  

The newly constructed roads and the city’s outskirts have little to no road support services, so starting to build a customer base in such an area will be a feasible option.


Some frequently asked questions about how to start a roadside business are listed below.

What to charge when I am just getting started with a roadside business?

The market prices for charging emergency roadside ranges from $50 to $100, and towing service goes up to $125 per 5 miles. But you can always decide when to lower or increase your prices, depending on market trends and research.  

How to start a roadside business with limited capital?

In case of limited capital, you can move towards getting funding for your business. Other than personal funding, getting bank loans or government grants are other ways to pool your finances.
Moreover, seeking out family and friends’ financial support is always a go-to if they are supportive. Lastly, crowdfunding aids your vision by getting investors on board to fund your business.

How do I market my services?

The marketing plan is also vital in learning how to start a roadside business and make it successful. One way to market your services is with insurance companies and automobile clubs. If a customer is stranded, the network of providers can direct the call to the business to accommodate the request.


There is nothing worse in road travel than being stranded in the middle of the road. You can be the knight in shining armor with your roadside business to save your to-be customers. After these basic guidelines on how to start a roadside business, we hope that we have equipped you enough to hit the road and build your roadside empire!


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