Winter is coming!
While this catchphrase is enough to get the Game of Thrones fans all excited, they are not the only ones. For those running a snow plowing business, these words sound like a sweet, sweet bell ringing afar. This is the time they look forward to throughout the year.
Having said that, most snow plowing companies face a hard time making a decent profit. But that is not impossible. Despite being a seasonal business, snow removal can earn you a fortune. So, how do you take your business to the next level?
Simple! Sign Up for Field Promax Snow Plowing Business Software Today.
According to the latest Snow Industry Benchmark Report, only 4% of the total survey respondents state that they run solely as a snow plowing company, and snow plowing constitutes only about 30% of their annual revenue. Evidently, it is at best a side business for most people. But what if we tell you that snow plowing could be a very profitable business idea, even for someone with a small budget?
That’s right. If you play your cards right and follow the right strategies, you can earn insane profits by offering snow plowing services. So, here are some pocket-friendly, yet effective strategies that will help you grow your business.
Who Can Start A Snow Plowing Business?
Anyone can start a snow plowing business, given that it actually snows in your area!
Anyone with a strong work ethic, willingness to learn, and access to the necessary resources can start a snow plowing business. Typically, individuals who have experience operating snow removal equipment or have a background in landscaping, construction, or related fields may find it easier to transition into the snow plowing business.
· Landscaping Companies
Landscaping businesses already have equipment like trucks and plows, making it relatively easy to expand their services to include snow plowing during the winter months.
· Construction Companies
Construction companies often have trucks and heavy equipment suitable for snow plowing. Offering snow removal services during the off-season can help maintain cash flow and keep employees engaged year-round.
· Lawn Care Services
Lawn care companies can leverage their existing customer base and equipment to offer snow plowing services during the winter. This allows them to maximize their revenue potential throughout the year.
· Property Management Companies
Property management firms, including those managing residential complexes, commercial properties, and homeowner associations, can add snow plowing services to their offerings to provide comprehensive property maintenance solutions to clients.
· Freelancers and Independent Contractors
Individuals with access to a pickup truck or snow plow equipment can offer snow plowing services on a freelance basis. This flexible arrangement allows them to earn extra income during the winter months without committing to a full-time business venture.
· Agricultural Businesses
Farms and agricultural businesses often have equipment suitable for snow removal, such as tractors or skid steers. Offering snow plowing services can provide an additional revenue stream during the winter when farming operations may be slower.
To sum up, any business with the necessary equipment and capacity to provide reliable snow plowing services can consider offering it as a side hustle to capitalize on seasonal demand and generate additional income. Even if you want to start it as a standalone business, it is still a profitable idea. Just make sure there is a demand for the specific service in your service area and you have access to the right equipment and resources for the job.
How to Start a Snow Plowing Business?
Whether you want to offer snow plowing services as a standalone business or as a side hustle, here are the steps you must follow to start the venture:
· Research the Market
Begin by researching the demand for snow plowing services in your area. Identify potential competitors, assess their pricing, and evaluate the level of demand during the winter months.
· Develop a Business Plan
Create a comprehensive business plan outlining your business objectives, target market, pricing strategy, startup costs, and financial projections. A well-thought-out business plan will serve as a roadmap for your snow-plowing business.
· Obtain the Necessary Permits and Licenses
Check local regulations to determine if you need any permits or licenses to operate a snow-plowing business in your area. Obtain any required permits and ensure compliance with local laws and regulations.
· Acquire Equipment
Invest in the necessary equipment for snow plowing, including trucks, plows, snow blowers, shovels, and salt spreaders. Consider whether to purchase new or used equipment based on your budget and needs.
· Secure Insurance Coverage
Obtain insurance coverage for your snow plowing business, including general liability insurance, commercial auto insurance, and workers’ compensation insurance. Insurance coverage will protect your business assets and provide peace of mind in case of accidents or property damage.
· Set Pricing and Payment Policies
Determine your pricing structure based on factors such as the size of the area to be plowed, the frequency of service, and the level of difficulty. Decide on payment policies, such as upfront payments or monthly contracts, and clearly communicate them to clients.
· Market Your Services
Develop a marketing strategy to promote your snow plowing business and attract clients. Utilize online platforms, such as social media, websites, and online directories, to advertise your services. Additionally, distribute flyers, place ads in local newspapers, and network with property managers and homeowners’ associations to generate leads.
Tips to Grow Your Snow Plowing Business
Now that you know how to start a snow plowing business, it is time to learn the hacks for growing it further and increasing your revenue.
To achieve that goal, you can follow these simple tips:
1. Invest in Automation
This is perhaps the smartest thing you can do to grow your business. As such, they are the demand of the hour. If you are still using traditional paper-based systems instead of automated ones, you are losing a serious competitive advantage in today’s digital age.
With the advent of modern technology, the traditional way of doing business has radically transformed. Today. It is no secret that software help businesses grow by enabling them to create a more efficient process that helps them consistently deliver better services. The same can be said for snow removal businesses as well. By choosing automation, you can standardize and streamline your business processes making your operations more efficient, which, in turn, leads to increased performance and profitability.
The current marketplace offers a wide range of software solutions to cater to your various business needs. But the buck does not stop here. Innovators have come up with tailor-made software solutions specifically designed for snow plowing companies. They take care of all your business operations, including scheduling, dispatching, reporting, monitoring, tracking, estimating, billing, invoicing, and more.
Recent reports state that nearly 45% of agencies using software increased their revenue by more than 20%. Also, 92% software using companies scaled their profit as compared to only 73% of organizations that don’t leverage any software.
From these results, the importance of implementing software in a snow removal business becomes as clear as daylight. So, if you don’t want to miss out, this is the time to switch to automation and choose the best snow plowing business software for your company.
Learn How Field Promax Can Meet All Your Automation Needs. Book A Free Demo Now!
2. Make A Better Marketing Strategy
After automation, the second most important business strategy in today’s time concerns marketing. This is the key to building a strong brand identity and attracting more customers. In this regard, you might want to consider a few things to chalk out the best marketing strategy for your company.
· Market Segmentation: First of all, identify your potential customers. In order to grow your business, it is important to know your market and design your marketing campaign accordingly.
· Social Media: Once you have figured out your target audience, decide on the channels you want to reach and communicate with them. While putting up hoardings, distributing flyers, or relying on word of mouth could be sufficient for a small, local business, this is not going to be enough if you really want to grow your business. Try social media instead. Build a strong online presence, utilize social networking sites to reach more potential customers, and design an unforgettable campaign to create a lasting impact on their minds.
· Advertise on Time: Marketing your snow plow business is all about timing. Therefore, be sure to start advertising just on time. According to experts, mid-September is the best time to start promoting your snow removal services because you will be on top of mind when potential customers are focused on preparing their yards for winter. This way you will become the go-to and one-stop-shop for your clients.
3. Network with Property Managers
Establishing relationships with property managers, homeowner associations, and commercial property owners is a strategic approach for expanding a snow plowing business. Property managers are responsible for maintaining residential and commercial properties, making them key decision-makers when it comes to hiring snow removal services. By networking with property managers, snow plowing businesses can showcase their reliability, professionalism, and ability to handle snow removal efficiently, thereby positioning themselves as trusted partners for property maintenance needs.
Similarly, homeowner associations often oversee the maintenance of community areas such as roads, sidewalks, and common spaces, making them potential clients for snow removal services. Building relationships with homeowner associations allows snow plowing businesses to secure recurring contracts for seasonal snow removal, providing a steady source of revenue and business growth.
4. Invest in Quality Equipment
High-quality equipment is essential for efficient and effective snow plowing, as it directly impacts the efficiency, reliability, and effectiveness of snow removal operations. High-quality trucks, plows, snow blowers, and other equipment ensure that tasks are completed efficiently, minimizing downtime and maximizing productivity. Reliable equipment also enhances safety by reducing the risk of breakdowns or malfunctions during snow removal operations, protecting both employees and clients. Moreover, quality equipment allows snow plowing businesses to handle a variety of snow removal jobs effectively, from residential driveways to commercial parking lots, enabling them to attract and retain clients through consistently excellent service. Ultimately, investing in quality equipment is not only a smart business decision but also a critical factor in building a reputable and successful snow plowing business.
Here are some of the equipment and tools you must have in your inventory:
· Snow Plow Truck
· Snow Plow Blade
· Snow Blower
· Salt Spreader
· Shovels and Snow Pushers
· Snow Melting Equipment
· Snow Pusher Attachments
· Snow Chains or Tires
· Safety Equipment
· GPS and Navigation System
· Toolbox and Maintenance Equipment
· Fuel and Fluids
· Communication Devices
5. Offer Flexible Payment Options
Offering flexible payment options is a critical aspect of running a successful snow-plowing business. By providing clients with convenient methods to pay for services, such as online payments, credit cards, and recurring billing, you can streamline the payment process and enhance overall client satisfaction. Online payments allow clients to conveniently settle their invoices from the comfort of their homes or offices, eliminating the need for physical checks or cash transactions. Accepting credit cards provides clients with added flexibility and convenience, as they can choose to pay using their preferred payment method. If you sign up for Field Promax business software, this task becomes easier for you. Field Promax supports integrations with Stripe, which allows you to process online payments and credit card payments with zero hassle.
Streamlining the payment process not only benefits clients but also improves cash flow for your snow plowing business. By offering multiple payment options, you make it easier for clients to fulfill their financial obligations promptly, resulting in faster payment turnaround times and improved liquidity.
6. Offer Seasonal Contracts
Encouraging clients to sign seasonal contracts for snow removal services offers numerous benefits for both the snow plowing business and its clients. By signing a seasonal contract, clients can enjoy peace of mind knowing that their snow removal needs are taken care of for the entire winter season. This eliminates the hassle of having to search for a snow plowing service every time it snows and ensures that their properties remain safe and accessible at all times. Additionally, seasonal contracts provide clients with predictable pricing and service schedules, allowing them to budget effectively and plan ahead for snow removal expenses.
For the snow plowing business, seasonal contracts provide a steady stream of revenue throughout the winter months, helping to stabilize cash flow and cover operational costs. With guaranteed income from seasonal contracts, the business can allocate resources more efficiently, invest in equipment maintenance and upgrades, and retain skilled employees year-round. Moreover, seasonal contracts foster stronger relationships with clients, promoting loyalty and repeat business. Clients who sign seasonal contracts are more likely to return for future snow removal services and may also refer the business to others, leading to additional growth opportunities. Overall, encouraging clients to sign seasonal contracts is a win-win strategy that benefits both the snow plowing business and its clients, ensuring reliable service and steady revenue throughout the winter season.
7. Make a Service List and Review Your Prices
Preparing a list of services and reviewing your pricing strategy in the fall will help you determine how much to charge for snow removal. Before your season starts, make a list of the snow removal services you’ll offer. This list can help you with setting your prices and creating estimates for potential customers. Once you have your service list, decide on a pricing strategy. The most common pricing methods for snow removal are by property, by inch, per month or fixed contracts.
To grow your business, however, your ultimate pricing strategy is to be competitive and profitable. Ask yourself a few “yes” or “no” questions to determine if it’s the right time to raise your rates.
· Have your snow plowing business expenses increased?
· Do you have an average quote closing rate above 50%?
· Do you have more job orders than you can manage?
· Are your prices aligned with your net value?
If you’ve answered yes to any of the above, chances are it’s time for an update.
8. Optimize Resources
To grow your business, you must make the best use of your equipment and technicians to make the most of your investment. There are snow professionals that turn a profit with just one plow truck, while others have multiple trucks, skid steers, front loaders, and whatnot.
Evidently, with more equipment, you can offer more services, which is a great way to grow your business. But not all companies have the budget or capacity to go on a shopping spree before the season starts.
The smart move, however, will be to start thinking about what you have and then figure out what you still need. While there are thousands of different products, you need to decide what is going to be the best fit for you and the jobs you plan on tackling in the coming season.
9. Implement a Referral Program
Implementing a referral program is an effective strategy to leverage the existing customer base and expand the reach of your snow plowing business. By incentivizing existing clients to refer new customers, you can tap into their networks and generate valuable leads. Offering incentives such as discounts, free services, or other rewards provides clients with a tangible benefit for referring others, motivating them to actively promote your services to friends, family, and neighbors.
To create a successful referral program, it’s essential to clearly communicate the incentives and rewards to existing clients. Use various channels, such as email newsletters, social media posts, and in-person interactions, to inform clients about the program and encourage participation. Clearly outline the referral process, including how referrals should be submitted and when rewards will be provided, to make it easy for clients to participate.
Additionally, consider offering tiered rewards based on the number of referrals or the value of the new business generated. For example, clients who refer multiple new customers or high-value contracts could earn larger rewards or exclusive perks. This encourages clients to actively promote your services and provides additional motivation to refer others. Regularly acknowledge and appreciate clients who participate in the referral program.
Send personalized thank-you notes, recognize top referrers on social media or your website, and consider hosting special events or promotions to celebrate their contributions. Showing appreciation reinforces positive behavior and encourages continued participation in the referral program.
10. Be Prepared to Make Decisions On the Go
Unlike other field service businesses, there isn’t a set schedule for plowing. Snow events happen at all hours of the day and night. You could go weeks without any work, and then a larger snow event might hit, and you could be working for two days straight. It can be difficult to plan your routes to make the most efficient use of your time.
Certain jobs might have different snow depth triggers as well, so you might have to make changes to your routes on the fly. Some people will want their property plowed if there is any snow and others might want you to come out only after a few inches have fallen. This is difficult to manage unless you are using snow plowing business software. It comes with a dedicated mobile app that enables you to monitor and take control of your operations from anywhere, at any time.
Final Words
Snow removal is an unpredictable industry, you never know when the first snow will hit.
Mother Nature may be out of your control, but getting your business ready in the fall can help you keep your cash flow predictably steady. Instead of scrambling mid-season, you’ll be on top of your game.
Having said that, it is important to find your edge if you want to stay ahead of the competition and make some profit. Most companies offer the same snow plowing services and do things exactly the same way. With so much
competition, you need to find your USP to stand apart from the crowd.
This is why you need to ensure you offer the best-in-class customer experience. And nothing can help you better than digital tools. So, check out the best snow plowing business software and use the latest features to your advantage.
To learn more about snow plowing management software and its features, contact Field Promax.
Originally Published at – Field Promax (Tips to Grow A Snow Plowing Business and Increase Profit)
