How to Start a Snow Removal Business in 13 Steps

1. Research the snow removal industry

Before you start a snow removal business as your new seasonal side hustle, make sure there’s demand to keep your business afloat. Look at the snowfall patterns for your region and decide whether you’ll target residential clients or commercial properties.

Here’s what to consider so you can make informed business decisions:

• Target audience: Think about who would need snow removal services in your area. Will you be focusing on residential customers, commercial properties, or both? Knowing your customer base can help you shape your service offerings, like whether to include driveways for homeowners or large parking lots for businesses.
• Local demand: Check the weather history for how much and how often it snows in your region, as this can impact demand. Look at demographic factors, such as the number of commercial properties, residential neighborhoods, and even the median income in your area. Areas with a high density of driveways, shopping plazas, or corporate buildings may have a stronger need for professional snow removal services.
• Customer pain points: Identify the challenges your potential customers face in winter. Many people don’t have the time, equipment, or physical capability to clear snow quickly and safely. Business owners, for instance, may need reliable snow removal to ensure customer safety and access to their premises.
• Local regulations: Snow removal often involves heavy machinery and sometimes road clearing, so there may be regulations you need to follow. Some areas may require specific permits for operating snow removal equipment, especially on public property.

Then, get a leg up on other snow removal businesses by learning about their offerings. Consider:

• Look at competitor rates to see how much you can charge customers for your services. Knowing what customers are willing to pay will also help you decide whether to offer good, better, best pricing options.
• Identify gaps and opportunities. What services do your competitors offer? Do they primarily serve primarily residential clients, or are they focused on commercial? Research their strengths and weaknesses—such as customer reviews, response times, and service scope—to help you find ways to differentiate your snow plowing business.

If you already own and operate a lawn care or landscaping business, starting a small snow removal business is a great seasonal business idea. And because you’re not starting from scratch, you’ll be able to get your snow removal business up and running in half the steps.

2. Develop your service offerings

Start by choosing the types of properties you want to work on, which might be one or all of the following:

• Residential snow removal: Jobs like driveways and sidewalks are smaller and can be a good fit for beginners with limited equipment. These jobs often require quicker turnaround times since homeowners want clear access right after a snowfall.
• Commercial snow removal: Properties like office buildings and shopping centers are larger and require more time and equipment. Clients may need snow removed overnight to ensure the area is clear for business hours.
• Municipal snow removal: Contracts like clearing snow from streets and public spaces are often lucrative but demanding. Unfortunately, as a new business owner, these jobs may be out of reach until you have equipment like large plows and salt spreaders.

Here are some of the services you might provide for the different customer types:

3. Learn how to price your services

Once you know what services you’ll offer, you’ll need to learn how to price them for profit.

The most common types of snow removal contracts are:

• Per push: Your client pays you every time you clear (push) snow, usually based on the size of the area or how much snow falls. This can be ideal if you’re servicing a region known for unpredictable snowfall, but your income can vary.
• Per event: Your client pays you for each snowfall event, which might be for a random storm or snowfall amount. This gives you flexibility, but timing and pay are unpredictable.
• Seasonal: You and the client agree to a flat rate for the entire snow season. This type of contract gives you consistent revenue. But if the season has more snow than expected, you could end up working more without additional pay.

If you’re just starting out and only have some basic equipment, residential per-push contracts might be a good fit.

READ MORE: Service pricing strategies for your business

4. Write a business plan

A snow removal business plan helps you define your vision for your business and get startup capital from a bank or other investor. It shows that you’re organized and prepared, giving lenders and investors confidence in your ability to manage and repay the capital.

Make sure your business plan includes:

• Cover page and table of contents for easy reading
• Executive summary to give the reader a quick summary of the entire business plan
• Business overview introducing your business, including structure (e.g., LLC or sole proprietor), service area, mission statement, and goals
• Services list describing the snow removal services you’ll offer to your customers
• Pricing strategy outlining your pricing model (e.g., by square foot) and how much you charge for snow removal
• Market analysis with an overview of your service area and ideal customers
• Competitive analysis outlining competing businesses, their prices, and what makes you stand out
• Marketing plan with 3–4 advertising tactics you’ll use to grow your customer base
• Employee planning showing what roles you’ll be hiring for and when
• Financial projections, including monthly expenses and income forecasts

READ MORE: 20 of the best seasonal business ideas

5. Register your business

It’s essential to register your new business with your local and state government for tax and legal purposes. Here’s how:

• Business name: Pick a practical, professional snow removal business name that describes what you offer. If you’re an established business owner, you can trade under your existing name.
• Business type: Register as a limited liability company (LLC), sole proprietorship, or partnership. An LLC is a popular choice because it protects your personal assets if you’re ever sued.
• Business registration: Head over to your local registry and register your business. If you’re in the U.S., you’ll pay a fee, trademark your name, and register your domain.
• Business permit or license: A permit or license allows you to legally work in your area, but not every community requires one. Talk to your local Chamber of Commerce to see what type of license you need and apply for it.

6. Obtain the necessary licenses and permits

Getting the right licenses and permits is essential to avoiding fines, or worse, being shut down. Depending on your location, the types of licenses and permits required can vary, so you’ll need to do some homework.

Here’s how to get started:

• Check local and state requirements: Some cities and states require a general business license, while others may have specific regulations for snow removal. Check with your local government office, such as the Chamber of Commerce or business licensing department. They can tell you if any special permits or environmental regulations apply.
• Obtain vehicle and equipment permits: Since you’ll likely be using trucks, make sure those are registered. And for operating heavy machinery on public roads, check if any permits are needed. Some areas may have restrictions on plowing roads or require a permit for dumping snow.
• Update existing business licenses: If you already have a seasonal business and now you’re starting a snow removal business to make money in the winter, you may need to update your existing license. Many states allow you to expand your services under the same license, but you’ll likely have to file an amendment or pay a renewal fee.

7. Get the right business insurance

The right snow removal insurance can protect you, your team, and your customers in case of accidents. At minimum, you’ll want to get a business insurance policy that includes:

• General liability covers claims related to personal injury or property damage that took place at a job site as a result of an employee’s actions.
• Commercial auto insurance protects you in the event your company vehicle is involved in a collision. It covers personal injury, property damage, collision-related medical expenses, or vehicle damage and theft.
• Tools and equipment coverage protects gear your business relies on like plowers, salt spreaders, and so forth. If any equipment is stolen or damaged, you won’t be stuck paying out of pocket for repairs or replacements.
• Worker’s compensation is a requirement in most states if you have employees. It covers any claims or lawsuits if an employee is injured on the job.

If you’re already running a landscaping business, know that snow removal can have more risks. Contact your insurance company to make sure your policy covers potential damage to property or injuries.

READ MORE: What small business insurance do I need?

8. Open a business bank account

It’s important to keep your business funds separate from personal funds. Set up a small business bank account to track expenses and payments.

It’ll also make you look more professional and help you build up a business credit history. As a result, you can access larger sums of money for large purchases, repairs, or business growth.

FREE TOOL: Impress your customers with our snow removal receipt template

Invest in accounting software like QuickBooks Online early on, too. QuickBooks Online makes it easier to track expenses, view income at a glance, run payroll, and integrate with your snow removal software to stay even more organized.

9. Buy snow removal equipment

The type of ice management and snow removal equipment you need depends on whether you’re serving residential or commercial clients. The amount you’ll spend will vary between new and used items.

Here’s some of the equipment you’ll need for your snow plow business:

• Snow blower
• Snow plow
• Hand snow shovel
• Snow pusher
• Ice scraper
• Roof rake
• Rock salt or ice melt
• Salt spreader
• Warm clothing (coat, hat, gloves)

Already have a seasonal business, like landscaping or lawn care? Some of the equipment can be repurposed for snow removal.

For example, trucks can be fitted with plows. Make a list of the equipment and tools you can use for removing snow and what you’ll need to buy.

10. Train your team and plan for breakdowns

Whether you’re the only one plowing or you have a crew to help, be ready to provide service when the snow starts to fall. That means tackling your training and breakdown planning now.

11. Get your first snow removal customers

To get customers, you’ll need to make it easy for people to find you for their snow removal needs. Here’s how to get started:

12. Invest in customer service

Creating and investing in customer relationships will help you become a snow removal contractor that’s in demand. Here are a few ways to build those relationships:

• Build a customer referral program to encourage word of mouth between family, friends, and current clients (if you already run a business).
• Hire the right employees with the right attitude who uphold your values. One way to do that is with an employee referral program.
• Create standard operating procedures, systems, and processes. For example, following up before, during, and after a job to make sure clients are happy.
• Offer a client hub where your customers can conveniently request work, approve quotes, double-check visit details, and pay invoices online.

13. Find local partners

Build relationships with other local businesses, both in home service and in other professions. It’s always handy to know realtors, lawyers, insurance brokers, and accountants. And really, anyone else who can give you a professional advantage.

The right local partners will help you watch for new opportunities. They may even send potential clients your way—or become clients themselves.

READ MORE: 10 winter landscaping services to keep a steady income all year round