Tow Truck Business Plan Template [Updated 2024]

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I. Executive Summary

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Business Overview

[Company Name] is a passenger tow truck company located in [Location]. Our primary service is to help stranded travelers and commuters transport their vehicle to where it needs to go. We also offer limited roadside services, such as jumpstarts, tire changes, and lockouts. Any traveler or commuter in need of help can depend on us for high-quality services and excellent customer service.

Products Served

[Company Name] offers emergency tow services to residents and travelers commuting around the [Location] area. Our tow truck drivers can help customers transport their broken-down passenger vehicles to their homes, mechanics, or any other location they need to get to.

We also offer roadside services such as:

  • Gas delivery
  • Jumpstarts
  • Tire changes
  • Lockouts

Customer Focus

[Company Name] will serve residents living within 10 miles of [Location] as well as any travelers in the area needing a quick tow. The demographics of this area are as follows:

  • 82,347 residents
  • 76% vehicle owners
  • Average salary of $52,400
  • Median age of 37 years

Management Team

Management Team
[Company Name] is led by [Founder’s Name], who has worked as a tow truck driver for [X] years. He has a passion for helping stranded commuters and travelers with their vehicles and providing emergency roadside services. Recently, he decided to use his connections and experience to start a tow truck business of his own. Though he has never run his own business, [Founder’s Name] has worked in the industry long enough to gain an in-depth knowledge of the operations (e.g., running day-to-day operations) and the business (e.g., staffing, marketing, etc.) sides of the industry.

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

  • The management team has a track record of success in the tow truck business.
  • [Founder’s Name] has developed a strong client base from his previous work as a tow truck driver. He also has connections with local mechanics and other important community leaders.
  • The tow truck business is a proven business and has succeeded in communities throughout the United States.

Financial Highlights

[Company Name] is currently seeking $500,000 to launch. Specifically, these funds will be used as follows:

  • Store design/build: $200,000
  • Vehicle purchase and maintenance: $200,000
  • Working capital: $100,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

Financial SummaryFY 1FY 2FY 3FY 4FY 5
Revenue$560,401 $782,152 $1,069,331 $1,379,434 $1,699,644
Total Expenses$328,233 $391,429 $552,149 $696,577 $776,687
EBITDA$232,168 $390,722 $517,182 $682,858 $922,956
Depreciation$7,000 $7,000 $7,000 $7,000 $7,000
EBIT$225,168 $383,722 $510,182 $675,858 $915,956
Interest$6,016 $5,264 $4,512 $3,760 $3,008
Pre Tax Income$219,152 $378,458 $505,670 $672,098 $912,948
Income Tax Expense$76,703 $132,460 $176,985 $235,234 $319,532
Net Income$142,449 $245,998 $328,686 $436,864 $593,416
Net Profit Margin25%31%31%32%35%
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