How to Start a Snowplow Business
If you live in an area that receives a steady stream of snow in the winter months, a snowplow business can be a lucrative undertaking. When starting a snowplow business, you can focus on residential homes or commercial locations or both. You may also choose to subcontract with local governments to plow public roads and parking lots.
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Instructions
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Write a business plan. A business plan is important for all businesses. It can help you organize your thoughts and plans for the business. Start by writing your objectives, which are the things you hope to accomplish with the business. For example, "Achieve $50,000 in revenues by the end of my first year in business. Then, describe your target market, which is whether you will focus on residential, commercial or government clients with your snowplow business; list your competitors in the local area and their strengths and weaknesses and outline your plan for obtaining financing.
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Register for state and federal taxes. If you plan to hire employees for your snowplow business, you will need to register with the Internal Revenue Service for an Employer Identification Number, or EIN. Different states have different tax requirements for starting a snowplow business, so check with your Secretary of State about the steps you need to take.
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Get licensed and insured. Again, different states and localities have separate rules and insurance regulations for snow plow businesses. For example, Michigan does not require licenses for snow removal businesses. However, certain cities may require a license for operating a snowplow. There are also rules that apply to certain states. In Wisconsin, for example, when using a snowplow truck, you are required to keep at least one window open to hear pedestrians. Accidents happen, and snow plowing is not an exception.
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Get financing. The costs of starting a snow removal business will depend on the size of your business. At the very least, you will need start-up capital to buy a snowplow, marketing expenses and business expenses like computers, a phone and Internet connection, papers and other supplies. If you can't finance these expenses yourself, look into financing options like business credit cards, bank loans and U.S. Small Business Administration loans.
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Purchase your equipment. Once you secure financing, the next step is to buy the necessary equipment. You will need at least a 3/4 to 1 ton 4-by-4 truck with plow and spreader. If you buy a used snowplow, check the blade along the sides and bottom for wear. Also, look at the blade's range or how much snow it can effectively move.
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Market your business. There are various ways to market a snowplow business. Place flyers on every car or mailbox in your local area when a snowstorm is in the forecast. Send a postcard to the property managers of several commercial buildings to advertise your services. Offer your network of contacts a discount on your services when they refer new customers to you. Buy an advertisement in the yellow pages of your local phone book or on YellowPages.com. Purchase ads on Google, Yahoo or Bing so customers can find you when they conduct web searches looking for snowplow businesses.
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References
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