6 surefire tips to starting a successful snow removal business

October 16, 2014

Thinking of starting your own snow removal business? Don’t know how to begin? Here are six tips for starting your own company and making it work.

6 surefire tips to starting a successful snow removal business

Snow removal is a relatively easy business to start. It can be as simple as building a reputation for meticulously shovelling driveways in your neighbourhood. However, if you’re shooting for something larger in scale, you’ll need to put more thought into your approach. Here are some tips for creating your own thriving snow removal company.

1. Start building a plan

Ask yourself a few simple questions:

  • Will you offer shovelling and snow-blowing?
  • Do you plan to buy a plow for the front of your four-wheel drive and plow exclusively?
  • Will you offer de-icing? Roof clearing?
  • Will it be a home-based business or do you plan to have an office?
  • Will you serve just residential customers or commercial and municipal clients as well?

2. Learn about licensing and insurance

  • Look into all required licensing. If you plan to serve municipal customers, chances are you may need one.
  • Insurance is also a must, since you could be found liable for any property damage you cause, or even injuries that occur on areas you’ve cleared.
  • Check local rules and regulations, and see whether or not you need to register your company. Make it official!

3. Do your paperwork

  • Prepare an invoice template and write out contracts that outline your services and rates per service, per unit of snow. Three feet of snow will take longer to plow than six inches. Include a section that specifies size of the area to be cleared and has plenty of blank space for note-taking. You’ll want to keep good records.

4. Establish your pricing

  • Find out what other snow removal businesses in your area charge for various services.
  • Set your rates low enough to be competitive but high enough to guarantee a healthy profit.

5. Find out about taxes

  • Learn about the tax obligations for which you’ll be responsible. The Canada Revenue Agency can provide you with details on filing taxes for small businesses.

6. Procure supplies and equipment

  • The scope of your business will determine which equipment and supplies you’ll need. A heavy-duty plow attached to your vehicle? A shovel or snow blower? Rock salt? De-icer? Cold weather clothing?

Even if you can’t afford a major purchase right away, perhaps down the road you’ll want to buy a good quality snow plow – or perhaps lease one until you’ve earned enough to buy. Don’t be too miserly. Remember that with any business, your time is worth money. So if you take four hours to clear an area that could be cleared in an hour with a larger, more expensive vehicle, are you really money ahead? Balance these considerations and buy the biggest equipment you can afford.

Get ready to prosper

There’s plenty to consider when starting a snow removal business, as with any new business. But snow removal is unique in that people will generally pay a good amount for a snow removal contractor with a reputation for being reliable. Businesses can’t open for operation until their lots are cleared. Residents can’t get to work until their driveways are cleared. Snow removal is a lucrative business, and there’s no reason why you shouldn’t cash in on it.

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