How To Start a Snow Removal Business? Checklist
How many times in your life have you gone out and shoveled the snow manually thinking: ‘Why can’t I just pay someone to do it?’. Many people ask themselves the same question every winter. But why not take it one step further and ask yourself a different question: ’Why don’t I become somebody who gets paid to do that?‘.
Today, we want to give you a few tips on how you can turn winter weather into profit by starting a snow removal business. Ready? Let us uncover a few steps to opening a snow plowing business.
Step #1: Planning
Let us start with preparing a business plan. No business is good without it. It will guide you through the entire process, giving you your objectives and direction. It should consist of some core points, such as:
Description
Write what exactly you offer and what your aim is. For example: to provide snow removal services in the whole neighborhood/district/state. Our advice is to start small.
Operations
How are you planning to fulfill your aim? Describe your planning, such as equipment, location, and assets.
Target market
Answer the following questions: who will be your customers? Who are your competitors?
Financial plan
Do not be fooled by it being mentioned last when it comes to planning. It is one of the most important things you need to focus on as without a startup cost, you are not getting anyway with any business. Also, take into consideration business expenses, and income, and estimate profits and losses.
Step #2: Setting up your business
It is essential to register your snowplow business and get the necessary licenses and permits. Start by choosing a name for your business. Once you have it you can register either as:
– sole proprietorship,
– limited liability company,
– or partnership.
The form that gives you the protection of your assets is LLC; therefore, it is one of the most popular business types in the snow plowing industry. You can register your business for a fee at a local registry. You can also register a domain and trademark your business name. Not all communities require you to have a permit or license so check with your local Chamber of Commerce if you need to apply for one.
One of the smartest moves you can make is to get appropriate snowplow insurance. It will protect you, your employees, your customers as well as your finances. General liability insurance, commercial property insurance, and business income insurance are the basic ones you should get. It would also be wise to purchase policies that include worker’s compensation and commercial auto insurance.
To keep your personal finances, separate from your business ones, do not forget about setting up a business bank account. Keeping personal and business accounts separate is not only helpful for keeping things in order but more importantly will help in building your business credit history. This in turn will help you get funds to finance business expenses. This brings us to one of the most important parts of your business, which is purchasing the equipment you need to perform snow plowing services.
Step #3: Getting your snow removal equipment
Having the right equipment is essential to your snow business. Without it, you will not earn any income. However, bear in mind that the equipment you buy must be of an appropriate quality. Otherwise, you might spend all your earnings (or more!) on costly repairs and maintenance. The type of equipment you need also depends on the type of services you offer (snow plowing, snow removal) and whether your customers are residential or commercial. What are the prices? You might start with low prices, get cheaper used replacements, or rent equipment. However, if you purchase larger machines you will have to spend significantly more.
Below is the list of the items and snow removal equipment you can use in your new snow removal business:
- Snow blower
- Snow plow
- Generators
- Hand snow shovel
- Snow pusher
- Ice scraper
- Root rake
- Rock salt or ice melt
- Salt spreader
- Warm clothing (coat, hat, gloves)
Step #4: Marketing
Any successful snowplow business owner knows that proper marketing is the make-or-break of their business. Snow removal company needs proper advertising so it can attract customers and become profitable. How do you do it? There are a few areas you can explore.
Distributed materials
Flyers, leaflets, and brochures are a wonderful way to notify the people living in the area you cover about the existence of your business and the type of services you offer. Make sure you get a business card. It is a real sign of your professionalism. Additionally, it is handy because you can always give it to your potential customers whenever you meet them.
Online marketing
Whenever snow shows up, the first thing most people do is ask whether anyone knows any reliable local businesses that can deal with the inconvenience. In the digital era, it mostly happens on social platforms like Facebook, Twitter, or Instagram. Set up your profiles or pages there to get more visible to potential customers.
Word-of-mouth
This may be tricky at the start. How can you get the referrals and reviews since you have not had any clients yet? However, there are ways around it. Ask your friends and family to spread the word. Once you get customers, make sure they leave you a review. This is how more people will decide to trust you and soon enough you will get business just from helpful reviews.
What about the springtime?
Setting up a business is easy. Earning income is not too problematic either when there is a lot of snow around and the winter season is in full force. But what about spring? Having a seasonal business is good when there is a season for it, however, it is good to be prepared for the off-season. Many snow removal professionals use this time for equipment maintenance. Many snowplow business owners also take care of their marketing strategy and start advertising as soon as it gets colder. At the same time, it is good to have another source of income to keep you afloat when you cannot perform snow removal services.
Where to get the right equipment?
Undoubtedly, one of the most important parts of your snow removal business plan is getting the right equipment. And by ‘right’ we mean appropriate but also of high quality. The last thing you want to do is spend every dollar earned on repairs and maintenance. Achieving the right balance between quality and price seems even a greater challenge than starting a business. We have a solution to your problems.
Visit our shop where you can find high-quality American-made parts that you can purchase at affordable prices. We carry a variety of skid steer attachments, which will be perfect for your snow removal or snow plowing business. Our range includes snow pushers, snow blowers, and snow & dozer blades. We also have a variety of snow tires compatible with many models of popular machines.
If you have any questions regarding starting your business or the equipment we offer, we are at your disposal. Our team will happily answer all questions and assist to the best of their abilities. Call us or get in touch on live chat.