Thursday, January 28, 2021

4 tips for running a vehicle recovery business

Operating a vehicle recovery business is somewhat different from other types. Maybe the business will collect vehicles for towing on behalf of a local council or to recover vehicles that are undrivable on the road. Either way, it requires different skills from the owner.

To demystify the process, here are 4 tips for running a vehicle recovery business better than before.

1.     Be adequately insured

The vehicle recovery business has many moving parts to it. With trucks out on the road quite frequently and hooking up and/or lifting immobile vehicles being no small matter, there’s much going on. Sometimes, things go wrong even with the best drivers.

To protect against a negative outcome, it’s necessary to have recovery truck insurance. This type of insurance is specific to the recovery truck business and caters to business operators providing this service or hired drivers operating such vehicles.

Look for suitable recovery truck insurance quotes from an intermediary comparison site like quotezone.co.uk. You’ll need coverage that includes breakdown, carriage of vehicle cover, tools and equipment cover, and more.

2.     Have a good business plan

It’s sensible to create a business plan for your business. Ideally, this is done before starting it but sometimes it comes later when you need to figure out some business matters, apply for a loan, or another reason.

Knowing what your planned income, expenses, provision for licencing, and insurance requirements are, along with any start-up expenses (if you’re still in the planning stages) is extremely beneficial. Otherwise, the business will be like a rudderless ship without a map or a planned destination.

3.     Know what deals can be struck

To create a steady flow of customers that need a vehicle towed and transported on a recovery truck, it might be sensible to arrange some strategic partnerships.

For instance, working with local garages in your catchment area for a pre-agreed price can keep you busy. Also, making agreements with vehicle financing companies that need a repossession carried out can prove fruitful too.

Look for like-minded companies that may periodically require the use of reliable recovery service. Think outside of the box because you might be surprised how many organisations may need it. Whilst long-term deals might not be as profitable as individual recovery bookings, they’re likely to be more reliable to keep the truck(s) busy, which ensures your operating costs are covered in slower months.

4.     Staying on the right side of the safety rules & regulations

There is a range of rules and regulations to adhere to and follow when operating a truck recovery business (or being the driver of such a truck). The UK government has a useful page that spells out all the do’s and don’ts, which is extremely useful.

The operator licencing is particularly relevant as it applies to the driver whether as the owner-operator or drivers hired as part of a team when the gross vehicle weight is over 3,500 kg. The working hours for drivers, what records must be kept, and other information is provided in the above-linked article too.

When running a successful recovery truck business, you get pride of ownership. It feels better than being an employee, but only when the business is managed well.

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