How to Start a Snow Removal Business

1. Write a business plan

A business plan helps you define your vision for your business, improves your odds of success, and helps you get startup capital from a bank or other investor.

Make sure your snow removal 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

2. Register your business

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

• Business name: Pick a practical, professional 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.

Don’t forget about snow plow insurance in case of accidents. Get a business owner’s policy with general liability, commercial property, and business income insurance, plus any other coverage you’d like.

READ MORE: What small business insurance do I need?

3. Get the right business insurance

The right snow plow 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.
• 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.
• 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.

READ MORE: What small business insurance do I need?

4. Purchase snow removal equipment

The type of ice management and snow removal equipment you need depends on if 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)

5. Open a business bank account

It’s important to keep your business funds separate from personal funds, so set up a small business bank account for tracking 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 early on, too. Track expenses, view income at a glance, run payroll, and integrate with your snow removal software to stay even more organized.

6. 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.

Do pre-season service area visits to identify any obstacles or challenges, maintain equipment so it’s ready to hit the road, and make sure you know how to use your tools and vehicle safely.

Even with all your preparation, you may still have breakdowns or other emergencies—especially in heavy snowfall. Have a plan in place to ensure clients still get their driveway or parking lot cleared, no matter what.

READ MORE: 8 snow removal business tips for a profitable winter season

7. Build your brand

Your business branding will help potential clients recognize and trust your company. To build a brand, start by creating a unique logo—you can work with a designer or use an online logo generator like Looka.

From there, you can apply the logo to your truck, business cards, uniform, website, social media, and more. Here’s an example of what your snow removal branding could look like:

8. Get your first snow removal customers

Marketing your snow removal company will get your brand noticed and attract  new clients. Start marketing your snow removal business in the fall, when the temperature starts to drop and potential customers start thinking about the winter season.

Try a few traditional and online marketing strategies like these:

• Create tear-away snow removal flyers and pin them to community bulletin boards.
• Print door hangers and distribute them to residents in your ideal neighborhood.
• Build a new snow removal website, or update your existing site with a page about snow removal. Include a work request form that allows clients to book services online.
• Create a Facebook business page for your snow shoveling business, or update your current page to include ice removal and snow removal services. Post often and include before-and-after photos of each snow removal job.
• Buy high-quality leads with Google’s Local Services Ads, or set up profiles and attract potential clients on lead generation sites.
• Use email marketing to stay top-of-mind with clients so they’re ready for your services by the winter months.

READ MORE: Snow removal ads to attract customers and generate leads

9. Invest in customer service

Creating and investing in customer relationships will help you become a successful, in-demand snow removal contractor. 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.

10. 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, accountants, and 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