Streetsmart insurance Blog
Many organizations depend on commercial snow plowing, and a successful snow removal business can help a landscaper’s year-round cash flow, but there’s more to it than just pushing snow out of the way. Many factors can affect your snow removing business. So, before thinking of jumping into the market, you should take the time to research and see how to run the business.
Research the Market
Banks, hospitals, parking lots and other large commercial sites offer one-stop plowing opportunities- but you need to consider the liabilities that these can provide. Since they are often tied together with larger providers deploying multiple sophisticated trucks, it’ll help if you research and learn the benefits and the drawbacks of being a subcontractor to these establishments.
Try finding the clients the old-fashioned way by doing newspaper ads, direct mailing, and the good old door-to-door advertising. It’ll help if you do door-to-door throughout a specific area to introduce your company’s services. The more clients located in the area, the more you will be busy plowing and not driving from one job to the next.
It is also crucial that you time the market, you won’t put up ads for your snow plowing business on a hot summer day. It is perfect to lock down your clients around early fall. For commercial clients, they work on a different clock; usually by August, property managers are already thinking about snow.
Get the Right Equipment
The scope of your business will decide which equipment and supplies you’ll need. You need to determine the items that you need and what materials will you be using for your business. Even if you can't afford a major purchase right away you may want to buy or lease an excellent quality snow plow. Remember, that in any business, your time savings is worth the money. So, think of how many hours you can clear the area with the equipment that you have right now compared to getting more extensive equipment.
Managing the Cash Flow
Snow plowing is a seasonal business and you it’ll help if you learn how to control your cash flow. Having a budget or considering your snow services when determining your overall budget for the year. Knowing your overhead and your budget can aid you in planning on how much you will have to charge for snow services and whether or not it is a reasonable amount in your market.
Even if you have a substantial budget, the winter season can be very unpredictable. It is advisable that you have a backup plan which includes:
It depends on the agreement. The business generates income by acquiring payment from a customer from a season-long bond, or fees on a per-plow basis. Contractors gain considerable profit in metropolitan areas because the lots are close together enabling the assigned worker to drive in less time.
A Snow Removal Agreement is Essential
There should be an agreement between the customer and the contractor before working together. This applies both to residential and commercial projects.
How a Snow Removal Contract is Prepared
The legal counsel or public entity drafts, and examines the contract, including addressing the items on the list:
Minimum Liability Limits
As a general contractor, before you hire a subcontractor, you should secure with the subcontractors the necessary items such as proof of insurance or certificates. Here are the things that must be clarified before commencing the job:
Whether you’re a contractor or subcontractor, you should be aware that the person who’s assigned to remove the ice or snow has to uphold a log during, and after the task. The record should comprise of the following:
A snow plowing business can be an excellent source of income as long as you know how to manage it. In this type of business, it’s not about the equipment that you use, but the quality of service that you provide. It will leave a mark on your customers and will always tend to come back. Winter is coming, and prepare to plow in those snow and rake in the money.