Who doesn’t look forward to the snow? In the United States, it marks the season of festivals, togetherness, happiness, and much more. But along with these moments of bliss, the residents have to go through the tampering effects of snow as well. It could be the transportation sector, people’s houses, or even infrastructure. Snow hampers all our regular activities, and snow removal becomes an inevitable need.
Business entrepreneurs (we mean the newbies) think that snow removal consists of a shovel and a few more pieces of equipment. But we suggest you get into the right mindset before you step into this venture. A snow removal business needs to be planned meticulously, requires rigorous market research and feasibility studies, and you have to inculcate a few important values in yourself as a conscious and responsible business entrepreneur.
Snow removal requirements arise when it snows or in certain parts of the United States. For instance, it is vain to set up a snow removal service in Florida as it does not snow even during winters. However, a little bit of common sense is sufficient to pick up an appropriate location. The good thing about this business is that it can be started on a small scale and taken to the next level after a few years. Since the demand for these services depends on the seasonal fluctuations, it is advisable to start as a part-time hustle or a full-fledged business along with other services such as garden and lawn care services.
Overview – Snow Removal Service
Property owners, lawn and garden owners, and merchants have always faced difficulties with keeping the places snow-free. They had adopted the self-reliant approach to remove the snow at their owned places, but time has been the constraint. In these busy days, people prefer to spend their leisure time watching Netflix or chilling out with family members and not using a shovel to get rid of the excessive snow in their building.
As disposable income has increased and availing of snow removal services has become easy with a few simple clicks on the smartphone, people will choose to avail of your services and sit back and relax for the time being.
Looking at the industry statistics, it is estimated that this industry will grow annually at the rate of 0.9 percent by 2021. The industry occupies more than $19 billion annually in the country. Due to the technological changes, increased number of households, and improved product development, this industry will see massive changes in the coming years.
- You can choose a name that fits your values or simply pick up the last name of the CEO or Owner of the company.
- You might not need a front office; your home address is sufficient, but you need a backyard or a garage to store all the snow removal equipment. Having a proper address helps you to be credible.
- Areas where you will be serving as a snow removal business.
- Types of snow removal service you will be providing to the people. It could be supplementary with the lawn care or garden care services since you will be working in a few seasons.
- Primary goals such as customer service, integrity, honest practices, timeliness, consistency, and competitive pricing.
- Professional, ethical standards followed – brief them a bit.
- Owners – family-owned business or a group of friends acting as business partners. Qualifications and experience of the owners, mention it even if it is not directly related to snow removal services. The reason for entering into this business could be specified. Do not expect anything noble to write here; even a profit-making attitude is sufficient.
As the name suggests, your business will be involved in snow removal, but apart from that, you can cover snow removal services for the following places:
- Parking lots.
- Doorway snow clearing.
- Other services.
The Mission of your snow removal service – “To provide snow removal services in the specific city of the United States by deploying professional and sustainable standards. To make efforts to spread these services to other snowy cities of the United States.”
The Vision of your snow removal service – “To establish a snow clearing business that works for business enterprises, malls, residential complexes, and other places in New York (or other cities) and other surrounding places as well.”
Business Framework – Job positions
Since snow removal services are required during the snowing seasons, you will require contractors and manual staff who are willing to take up some part-time or full-time work during those days. You do not have to worry about long-term recruitment as you won’t require employees during spring and summer. If you plan to employ people for the long term to avoid the frequent recruitment costs and provide stability to the staff, you can start an alternative business line such as cleaning services during the spring and summer seasons.
Hence, you could be hiring freelancers or an in-house team as per your requirements. Below are the job positions you might require:
- Managing Director or the Owner or the Chief Executive Officer – You could be the one who came up with a concrete business idea and provided maximum inputs for business planning. You can be the one to oversee all the activities and make critical decisions for the company’s benefit.
- HR Executive/ HR and Admin Executive – It is advisable to hire someone who is proficient in both human resource and administrative tasks.
- Project Manager – You could be clearing snow for a residential place, and the next day, you will do the same for a mall. Yeah, you need a project manager who can plan out and manage teams for different types of snow clearing projects.
- Business Developer – He will be the one to introduce your business to prospective clients and ensure that they turn into long-term, stable customers.
- Skilled snow removers – You will need them, a whole lot of them, to clear snow manually. Even if it seems to be a simple job, you need a skilled workforce.
- Front Desk Representative – He will answer calls and emails and attend to in-person inquiries for snow clearing services.
This service is mainly availed by people residing in urban and semi-urban areas where the snowfall is tremendous, but they are short of time to clear out the snow.
Even business enterprises are occupied with productive tasks and do not have sufficient time or staff to clear the snow. They need professional assistance.
Following are the organizations whom you can serve with snow removal services:
- Parks and lawns.
- Business and residential complexes.
- Malls, hotels, and restaurants.
- Schools, public places, and government undertakings.
- Hospitals and health care centers.
Marketing, sales, and advertising plans
- Do not miss the online promotions – You ought to have a website and be active on social media handles as it is vital for a business to have a digital presence these days. People will check out your credibility by checking your presence on the internet. Similarly, ad placements on Google and Facebook have higher chances of visibility and more clients.
- Give offline promotions proper importance – Flyers and brochures can be distributed in the neighborhood; you can even conduct demos for them. They can be your first clients; hence it is essential to serve a good impression on them. Next is to place billboards and attend seminars and expos where snow clearing services could be promoted.
If you provide snow clearing services as a full-fledged business along with other supplementary business, you can expect a sales revenue of $200,000 in the first year, which can be easily doubled in the next year.
Generally, snow clearing businesses hire a workforce on an hourly basis. As a result, you can find several businesses specifying their per-hour rates on the portals. Instead of that, you can enter into lease arrangements with your clients. You can even provide discounts and loyalty program offers to retain them for subsequent years.
Maintain competitive pricing even when you try to tap new clients or retain the existing ones, as your sales predictions should not hamper in any way.
To set up a medium-sized business (and not a part-time hustle), you will require at least $50000 for the same. But you can lower the costs of a physical set-up, hire contractors, and reduce the office equipment costs, and focus on the essentials only.
You can borrow from your friends, pour in your savings or seek assistance from a bank or a financial entity. If you have a properly drafted business plan ready, you can surely seek assistance as you require to buy trucks and related snow clearing equipment.
This business plan template is of immense use to a newbie while drafting a plan.