If you stay in an area where there is a lot of snowfall every year, having snow removal business can be a lucrative idea. You can make a healthy second income if you can handle the little stress associated with the business. You may need to spend long, cold nights working when others are in bed. But you can be very sure, the reward is really worth it.
However, the snow removal industry is substantially different from many other field service industries and so required that you know your onions before delving into it. If you have been thinking of starting snow removing or snow plowing business, we’ve got some tips here to help you succeed with the idea.
Table of Contents
How To Start A Snow Removal Business
#1: Determine the viability of the business
There is nothing as bad as starting a snow removal business in an area where it is not needed. It will only amount to frustration and waste of resources. So before you start your snow plowing business, make sure you love in an area where snow falls are recorded every year. Snow plowing equipment is expensive so if you don’t live in an area where there is enough snow, you might just need to let go of the idea of starting snow removal business.
#2: Get your funding right
Snow removal business is one that requires expensive equipment. So before you jump up and start dancing on the business idea, make sure you get your funding right. Ensure you have enough people to service in your locality. You can consider contacting your friends and family for capital or go for a business credit card loan to help you get started. If you don’t have enough investment then, you can read our 14 business ideas that you can start with low investment.
#3: Determine your target market
When starting out with little equipment, your target market for the start is residential clients. Bigger jobs like clearing parking lots are for snow contractor companies and not you. So when starting out, don’t miss out on your target market. Reach out to them at the beginning of the season. Focus on smaller clients and gradually use that to build your portfolio. Then, you can increase over time.
#4: Get the required license
You will also need to find out what the licensing and regulations for this type of business are in your area. It is important you get the required licenses before you finally open up for business. Check with your city or state to have the right clue about this.
#5: Get the right equipment
This is very important for the success of the business. You need to have the right equipment to carry out your job. Remember, you will likely be needed to remove snow from residential driveways, storefront, or small parking lots. So some likely equipment you will need are:
- A truck coupled with a plow
- Some ergonomic shovels
- Snow blower
- Rock salt and salt spreader
#6: Set your pricing
Remember you are not the only one rendering this service in your area, so your pricing may be the tool you need to win over more clients to yourself. Determine the cost of all your supplies and equipment, and then set competitive pricing options. Competitive prices will help your business stand out from the competition. Also, make sure you have a clear pricing structure so your customers can know right away what to expect from your services.
#7: Have a plan B
You should always have an emergency backup plan. Bad reviews will damage the reputation of your business, so make sure your customers are always satisfied with your services. In case of emergency or too much work in your hand, have a backup crew on standby to cover for you.
#8: Find the right insurance
Every business comes with risks, and snow removal business is not an exception. Working on ice and snow makes you and your workers exposed to dangers. These include accidents, injuries, and other damages. So, get the right insurance for plowing services to ensure the continuous and smooth running of your business in case of an unfortunate incidence.
In addition to some snow removal insurance, you might need commercial auto insurance and workers compensation insurance.
#9: Decide on your marketing plan
If you don’t market your snow removal business, no one will know you do it. That means you won’t be getting any job. However, that doesn’t mean you should spend a huge amount of your budget on advertising while starting out. You can take advantage of free local advertising opportunities.
Consider creating a free Google My Business page and optimize your page for “near me” searches. You can also do the same on such sites as Facebook, Yelp, and Craiglist. Don’t forget to work on having a business card to tell people about your business. Also, encourage your happy clients to leave good reviews for you online and on social media.
#10: Come up with an off-season plan
As a snow removal company, you will be doing your business only during the winter. But the end of winter shouldn’t be the end of your business. You can create an off-season plan for the coming year’s success. Use the period to get some more equipment ready in good conditions. Reach out to prospective clients for the next season. That way, you will be having enough business deals to handle when winter finally sets in.
These are some tips to help you start profitable snow removal business in your area. Don’t forget to double-check all the points before starting out. It will help you achieve great success in your business!
While off-season you can try one of our business ideas:
You can also read more business ideas at StartBusinessTips.