Starting a Snow Removal Business

!±8± Starting a Snow Removal Business

Whenever we think of a snow removal business, we usually envision a pickup truck with a snowplow on the front going around plowing parking lots and driveways for businesses. But, what about all the residential areas that need snow removal from their sidewalks and driveways?

I think if I were looking for a business to start, I would take a hard look at starting up a special residential snow removal business. This could also be a great winter business for gardeners and landscapers that are shut down in the winter. This is how I would approach starting a snow removal business:

1.) Develop a small informal business plan where I would write down who I think my customers would be. Then (long before the snow started) I would go and ask some of them if they would be interested in my services when the snow came. Based on my canvassing and customer research I would figure out how big my market could be, and determine if the idea was feasible in my town. This would also be the time to test out some suggested pricing for my services to see what the market would bear.

2.) Keeping with my little business plan, I would investigate the cost of the equipment I would need. I would have to have a good quality professional snow thrower, or at least a prosumer model. I would need to have a small trailer to haul the machine from house to house (not all of them will be side by side), and I would need some miscellaneous accessories, like gas cans, chains, maybe a cab to keep out of the wind, plus a few other supplies. This research and list would tell me how much money I needed to get into the business.

3.) I would then compare my cost of getting into the business against what I calculate I could receive in revenues to see how much money I could make in one season. I wouldn't have to offset the cost of my equipment over just one season, because it would last for several seasons. But I would need to determine my out-of-pocket operating costs for gas and oil and maintenance on the equipment. Of course, I would probably want to base my services on an average number of snowfalls for the season. If there is less snow, I can only hope for a heavier winter next year, Or, if there is more snow than normal, I will have to work overtime to keep up...and collect more money.

4.) I would check with my city offices to see what kind of business license I would need to operate this business, but I would try to avoid getting into too much "formalized" business stuff--I just want to clear some snow from people's driveways...not start the next Microsoft.

5.) When my little business plan indicates that I can make some money and the business looks viable...I will need to determine where I will get my startup money. If I can tap into my savings to buy equipment, I will be ahead of the game. Or, maybe I will need to borrow from family or friends. I may need to look to a third-party investor in my town who would loan me the money. There are also several places on the Internet that I could look for several different forms of small business micro funding. Money is available...sometimes it is just hard to find and takes perseverance.

6.) I would set myself up in business with some business cards, a two-part receipt book so I could present a bill to my customers and record my income, and a small notebook to record my expenses and revenue to keep track of how my business was doing...and to calculate my taxes when the time came. Also, I would do some advertising in local neighborhood shoppers and nickel ad papers. Anything to get the word out that I was in business.

Well, there is the framework for a snow removal business this winter. There may be competition out there, but with superior customer service, someone can make a real business out of snow removal this winter.