Are you about starting a snow removal company? If YES, here is a detailed sample snow removal business plan template & FREE feasibility report.
If you live in the Polar Regions or in places where it snows, then you just might agree that winters can be challenging because of the obstruction caused by snow. Funny enough, some people hate it when it snows, but yet others are always glad for the snow because it translates to more money for them.
If you are an entrepreneur that lives around areas where it snows, then you just might want to consider going into the snow removal business. You must take note that this kind of business is seasonal, so you must have other businesses in place so that when winter ends, you can still be making money to foot your bills.
Starting a snow removal company can be expensive because you need to purchase snow plows and other equipment. However, if you are certain of meeting the needs of people in your community, then you should be willing to raise the required capital to establish your snow removal company.
It is worthy to note that making money shouldn’t just be your only drive for starting a snow removal business. If money is your only motivation for starting this kind of business, then you are likely going to get overworked and discouraged at the end of the day.
You should be passionate about helping people for you to make headway in the business. Below is a sample snow removal company business plan template that will help you write yours without much stress.
A Sample Snow Removal Business Plan Template
- Industry Overview
The Snowplowing Services industry consists of Parking lot and street plowing, deicing and anti-icing, sidewalk and doorway snow clearing and others. Companies in this industry provide snow plowing and ice removal services. The industry does not include ice removal or snow plowing by municipalities and government.
Statistics has it that in the united states of America alone, there are about 149,455 licensed and registered snow removal companies and they are responsible for employing about 345,195 persons. The industry rakes in a whooping sum of $19 billion annually (benched mark in 2018) with an annual growth rate projected at 0.9 percent within 2013 and 2018. Interestingly, the Snowplowing Services industry has no companies with major market shares.
A recent report published by IBISWorld shows that over the five years to 2018, the Snowplowing Services industry benefited from favorable weather conditions, including higher-than-average annual snowfall totals and numerous high-accumulation snow events, which have bolstered demand for snowplowing, salting, deicing and other services provided by this industry.
The industry predominantly provides snowplowing services to commercial and retail markets. Consequently, industry demand has been supported by a healthy economy with thriving businesses, substantial consumer spending and a rise in nonresidential construction over the past five years, enabling operators to expand their client base.
Starting and operating a snow removal company can be challenging, but the truth is that it can be rewarding at the same time. One good thing about the industry is that it is open for both big time investors who can operate in different cities and aspiring entrepreneurs who may want to just service a location.
It is no doubt there are areas that are usually worst hit and this kind of areas are what you should look towards marketing your services. Another good thing about feasibility studies is that it would help you identify your competitors, the most effective equipment to use, costing et al. Every serious entrepreneur makes it a point of duty to first conduct their feasibility studies before launching their business.
Table of Content
- Snow Removal Business Plan – Executive Summary
- Snow Removal Business Plan – SWOT Analysis
- Snow Removal Business Plan – MARKET ANALYSIS
- Snow Removal Business Plan – SALES AND MARKETING STRATEGY
- Snow Removal Business Plan – Publicity and Advertising Strategy
- Snow Removal Business Plan – Financial Projections and Costing
- SNOW REMOVAL BUSINESS GROWTH: Sustainability and Expansion Strategy
Snow Removal Business Plan – Executive Summary
Clean Scoop® Snow Removal, Inc. is a registered and licensed snow removal company that will be based in Rochester – New York. We have been able to secure all the relevant licenses and permits to operate as a standard snow removal company in the United States.
We will ensure that we abide by the rules and regulations guiding the industry. We are deliberate in starting out in Rochester because, Rochester, New York gets more snow than any other large city in the United States, with a yearly average of nearly 100 inches (255 cm).
We are in business to provide services like parking lot and street plowing, deicing and anti-icing, sidewalk and doorway snow clearing, amongst other related services. We will provide daily services all around Rochester – New York and neighboring cities.
Our customers can be rest assured that they will get quality services at competitive rates. At Clean Scoop® Snow Removal, Inc. our goal is to provide excellent service to our customers and we pride ourselves on the integrity and competence of our company and employees.
Clean Scoop® Snow Removal, Inc. will ensure that all our snowplowing services are on time and we supersede the expectations of our customers. We will only put snowplowing equipment that are in top shape on the road, and all our snow removers/cleaners and drivers will be trained to be extra careful, pay attention to details, be courteous, friendly and to abide by the rules and regulations of the industry.
We are quite optimistic that our values and quality of service offering will help us drive our snow removal business to enviable heights and also help us attract the number of clients that will make the business highly profitable. We will be dedicated to establishing good business relationships with our clients giving them value for their money and reasons for them to hire our services over and over again.
No doubt our excellent customer service and the quality of service we offer will position us to always welcome repeated customers and handle massive deals from large estates, shopping malls, hotels and business complexes.
Our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Clean Scoop® Snow Removal, Inc. is a family business that is owned by Douglas Sherwood and his immediate family members. Douglas Sherwood, a native of Rochester, is a graduate of Business Administration from the University of New York and MBA in Finance from the University of Oklahoma. He has over 12 years’ experience in the snowplowing industry.
- Our Services Offering
Clean Scoop® Snow Removal, Inc. is established with the aim of maximizing profits in the snowplowing services industry. We want to compete favorably with leading snow removal companies in the United States which is why we have but in place a competent quality assurance team that will ensure that every service carried out is thorough and even surpass our customers’ expectations.
We will ensure that we do all that is permitted by law in the United States to achieve our business goals and objectives. Our service offerings are listed below;
- Parking lot and street plowing
- Deicing and anti-icing
- Sidewalk and doorway snow clearing
- Other related services
Our Vision Statement
Our Vision is to build a business that will take care of snow removal for major residential estates and other businesses in the whole of Rochester – New York and neighboring cities.
- Our Mission Statement
Our mission is to deploy professional and environmentally friendly ways of snow removal in inner cities; we want to become a standard of how snow removal companies should operate not just in Rochester – New York, but in the whole of the United States of America.
- Our Business Structure
We intend starting the business with a handful of full – time employees (truck drivers, professional snow removers and back office staff) and some of the available driving roles will be handled by qualified contract drivers. Adequate provision and competitive packages have been prepared for all our employees.
Our business structure will be designed in such a way that it can accommodate but full – time employees and part-time/contract staff; those who just want to take some time off to generate additional income.
At Clean Scoop® Snow Removal, Inc. we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company.
For now, we will contract the maintenance of our trucks to a service provider, we don’t intend to maintain a very large overhead from the onset. But as soon as the business grows and stabilizes, we will assemble our own in-house maintenance team. Below is the business structure and the roles that will be available at Clean Scoop® Snow Removal, Inc.;
- Chief Operating Officer (Owner)
- Admin and HR Manager
- Transport and Logistics Manager
- Marketing and Sales Executive (Business Developer)
- Professional Snow Removers
- Truck Drivers
- Customer Services Executive / Front Desk Officer
Roles and Responsibilities
Chief Operating Officer (Owner):
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Transport and Logistics Manager
- Responsible for negotiating and agreeing contracts
- Answerable for developing and confirming schedules
- Responsible for preparing paperwork for regulatory bodies
- Responsible for liaising and managing staff
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily office activities.
Marketing and Sales Executives (Business Developers)
- Identifies, prioritizes, and reaches out to new clients, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies
- Documents all customer contact and information
- Represents Clean Scoop® Snow Removal, Inc. in strategic meetings
- Helps to increase sales and growth for Clean Scoop® Snow Removal, Inc.
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managers with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Accountable for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the company
- Serves as internal auditor for the company
Snow Removers and Cleaners
- Obtain orders for snow plowing, and determines which destinations need to be traveled to.
- Provide dispatchers with information on the time that it would take to go to assigned locations.
- Inspect assigned snow plow to determine if it is ready for operations.
- Drive snow plow to designated locations and set it up to perform snow removal activities.
- Remove snow from curbs, sidewalks, walkways, porches, and car parking areas
- Ascertain that removed snow is correctly stacked in corners, away from where it can come in the way.
- Lift snow from different areas, and place it on the back of the snow plow, aiming to transport it to another location.
- Communicate with customers to provide them with snow removal updates, and get work orders signed by them.
- Ascertain that assigned snow plows are performed maintenance on and that any repair needs are communicated to the manager.
Customer Service Officer
- Welcome clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s services
- Manages administrative duties assigned by the HR manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to potential clients when they make enquiries
- Receives parcels/documents for the company
- Distributes mails in the organization
Snow Removal Business Plan – SWOT Analysis
As a result of our vision, our mission and the kind of business we want to set up, we don’t have any other option than to follow due process. Following due process involves hiring business consultant to help us conduct SWOT analysis for our business.
Clean Scoop® Snow Removal, Inc. hired the services of a seasoned business consultant with bias in startups in the U.S. to help us conduct a thorough SWOT analysis and to guide us in formulating other business strategies that will help us grow our business.
Here is a summary from the result of the SWOT analysis that was conducted on behalf of Clean Scoop® Snow Removal, Inc.
Strong management, strong fleet operations, our snow removal network, size advantages, cost advantages, customer loyalty and strong reputation amongst domestic and industry players is what we can boast of. Our business is centrally located in a densely populated residential estate in Rochester – New York; our location is in fact one of our major strengths. We are also not neglecting the power of our team; our workforce and management.
Looking through our Business model, one of the weaknesses that may pose a challenge to us is insufficient flow of finance to handle key issues such as purchase of brand – new snowplowing equipment and collection trucks and promotion of the business.
The majority of industry revenue comes from commercial businesses, including owners of offices, manufacturing and retail locations. Therefore, demand for snowplowing services is largely dependent on the total number of businesses, as a rise in the number of businesses naturally increases the potential client base for industry operators. The number of businesses is expected to increase in 2018, presenting the industry with a potential opportunity.
The Snowplowing Services industry is dependent on cold weather and high snowfall. As a result, greater average annual precipitation, especially during the winter season, is advantageous to industry operators. Average annual precipitation as measured and projected by the National Climatic Data Center is expected to decrease in 2018, posing a potential threat to the industry.
Snow Removal Business Plan – MARKET ANALYSIS
- Market Trends
The latest trend in the industry shows that a continued expansion in the US economy will underpin industry demand. The snow in hill stations can be removed by adding salt to the snow and letting it melt off. This is majorly because of a rule which lowers the melting point of the ice formed. So, even at negative temperatures where ice is formed, the ice gets melted because of the phenomenon.
- Our Target Market
Prior to launching our snow removal company, we are certain that there is a wide range of businesses who cannot successfully handle snow in their facility without hiring the services of a standard snow removal company. We will ensure that we develop strategic pacts with corporate organizations, facility and estate managers et al. This will give us several options to generate revenue for our company.
In view of that, we have created strategies that will enable us reach out to various companies, business complexes, shopping malls and households who we know can’t do without our services. We have conducted our market research and survey and we will ensure that all our snow removal services are well accepted in the market place.
Below is a list of the people and organizations that we will market our services to;
- Residential buildings (households)
- Business complexes
- Shopping malls
- Public facilities
Our major competitive advantage is the vast industry experience and solid reputation of our owner, Douglas Sherwood and our management team.
Clean Scoop® Snow Removal, Inc. no doubt is a new snow removal company, which is why we took our time to do a thorough homework before launching the business. We were able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are trust, honesty, good snow removal network, excellent relationship management, strong management, strong fleet operations, etc.
Our snow removal and transportation network serves some of the largest population centers in the Rochester – New York, our size advantages, cost advantages, customer loyalty and strong reputation amongst domestic industry players.
To sum up, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives.
Snow Removal Business Plan – SALES AND MARKETING STRATEGY
- Marketing Strategy and Sales Strategy
The marketing strategy adopted by Clean Scoop® Snow Removal, Inc. is going to be driven by professionalism, excellent customer service, honesty and quality service delivery. We will ensure that we build a loyal customer base. We want to drive sales via the output of our jobs and via referral from our satisfied customers. We are quite aware of how satisfied customers drive business growth and management services.
Clean Scoop® Snow Removal, Inc. is strategically located and we are going to maximize the opportunities that are available which is why we spent more to locate the business in a location that will be visible and enable us to access our target market.
Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be equipped to meet their targets. Clean Scoop® Snow Removal, Inc. is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our snow removal business by sending introductory letters alongside our brochure to park operators, shopping malls, hotels, residential estates and other key stake holders in Rochester – New York
- Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
- Use friends and family to spread word about our business
- Post information about our company and the services we offer on bulletin boards in places like schools, libraries, and local coffee shops et al
- Place a small or classified advertisement in the newspaper, or local publication about our company and the services we offer
- Leverage on referral networks such as agencies that will attract clients who would need our customized services
- Advertise our snow removal company in relevant magazines, newspapers, TV and radio stations
- Attend relevant expos, seminars, and business fairs et al to market our services
- Engage in direct marketing approach
- Encourage the use of Word of mouth marketing from loyal and satisfied clients
- Join local chambers of commerce and industry to market our services.
Sources of Income
We will make sure that we leverage on our strength and the opportunities available to us in the U.S. market to generate enough income that will help us drive the business to stability. We will go all the way to explore every available source of income in the snowplowing services industry.
Below are the sources we intend exploring to generate income for Clean Scoop® Snow Removal, Inc.;
- Parking lot and street plowing
- Deicing and anti-icing
- Sidewalk and doorway snow clearing
- Other related services
We are well positioned to take on the available market in Rochester – New York and we are quite optimistic that we will meet our set target of generating enough income/profits from the first month of operation and grow the business and clientele beyond Rochester to other cities in the state of New York.
We have been able to examine the snowplowing services industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projection for Clean Scoop® Snow Removal, Inc., it is based on the location of our business and our competitive advantage;
- First Fiscal Year (FY1): $250,000
- Second Fiscal Year (FY2): $470,000
- Third Fiscal Year (FY3): $725,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same snow removal services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Our Pricing Strategy
According to CostHelper, the cost for one worker to shovel or snow blow can cost between $25 to $75 an hour. The cost to hire a company to plow a standard driveway after a storm can run about $30 to $45 per storm.
The price for removal of up to six inches of snow starts between $75 and $95. Some contractors will charge a lower fee for removal of smaller amounts, such as two inches. A good rule of thumb for any removal project over six inches is to add $30 per additional half-foot of snow.
Clean Scoop® Snow Removal, Inc. has a lease arrangement with various companies and the company’s pricing is based on miles per thousands of tons of snow cleared and transported. We have perfected our plans to charge competitive rates since we have minimal overhead compared to our competition in the industry.
We will ensure that we leverage on price to win over customers; our prices will be affordable and negotiable. The fact that our business door is open to both households and businesses means that we will have different price range for different category of clients. As the business grows, we will continue to review our pricing system to accommodate a wide range of clientele.
- Payment Options
The payment policy adopted by Clean Scoop® Snow Removal, Inc. LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Clean Scoop® Snow Removal, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via online bank transfer
- Payment via mobile money
- Payment via Point of Sales Machines (POS Machines)
- Payment via check
In view of the above, we have chosen banking platforms that will enable our clients make payment for snow removal services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our services.
Snow Removal Business Plan – Publicity and Advertising Strategy
We have plans to grow our business beyond Rochester – New York which is why we have perfected plans to build our brand via every available means. We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.
We are set to become the number one choice for both corporate clients and households in the whole of Rochester – New York and beyond which is why we have made provisions for effective publicity and advertisement of our snow removal company.
Below are the platforms Clean Scoop® Snow Removal, Inc. intend leveraging on to promote and advertise the business;
- Place adverts on both print (newspapers and magazines) and electronic media platforms
- Sponsor relevant community – based events/programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our services
- Install our Billboards in strategic locations all around Rochester – New York
- Distribute our fliers and handbills in target areas
- List our company in local directories/yellow pages
- Advertise our company in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our waste collection trucks are well branded with our company logo et al.
Snow Removal Business Plan – Financial Projections and Costing
When it comes to starting a standard snow removal business, one is expected to spend the bulk of the startup capital on the purchase of snowplowing equipment and snow collection trucks. Aside from that, you are expected to pay the required fee in dump sites, pay your employees and utility bills.
This is what it would cost us to start Clean Scoop® Snow Removal, Inc. in the United of America;
- The total fee for incorporating the business in the United States of America – $750.
- The budget for liability insurance, permits and license – $15,500
- The amount needed to acquire a suitable office facility with enough parking space for our waste collection trucks in Rochester – New York for 6 months (Re – Construction of the facility inclusive) – $150,000.
- The amount required to finance the purchase of the first set of snowplowing equipment (Skid-Steer Loaders, All-Wheel Steer Loaders, Backhoe Loaders, Wheel Loaders, Utility Vehicles, Mini Track Loaders, Essential Snow Removal Equipment Attachments and Snow Buckets) and collection trucks – $150,000
- The cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al): $5,000
- The cost for accounting software, CRM software and Payroll Software – $3,000
- Other start-up expenses including stationery – $1000
- Phone and Utilities (gas, sewer, water and electric) deposits – ($3,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $120,000
- The cost for launching our official website – $600
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
Going by the report from the market research and feasibility studies conducted, we will need about four hundred and fifty thousand (450,000) U.S. dollars to successfully set up a medium scale but standard snow removal company in the United States of America.
Generating Funds/Startup Capital for Clean Scoop® Snow Removal, Inc.
Clean Scoop® Snow Removal, Inc. is a private business that will be solely owned by Mr. Douglas Sherwood and his immediate family members. He will be the sole financier of the company but may likely welcome other business partners when need for expansion arises.
These are the areas we intend generating our startup capital for our business;
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $100,000 (Personal savings – $80,000 and soft loan from family members – $80,000) and we are at the final stages of obtaining a loan facility of $350,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
SNOW REMOVAL BUSINESS GROWTH: Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Clean Scoop® Snow Removal, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to offer our snow removal and management services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Clean Scoop® Snow Removal, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of ten years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Acquiring of trucks and relevant snow removal equipment: In progress
- Renting of Office Facility (Parking yard for our snow collection trucks) in Rochester – New York: Completed
- Conducting Feasibility Studies: Completed
- Startup Capital Generation: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees and drivers: In Progress
- Purchase of the needed office furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with park operators and other key players in the industry: Completed