Winter is coming, and with it come snowstorms that can leave paralyzing amounts of snow on the ground, depending on where you live. If that happens to be a region with occasional or frequent heavy snowfall, opening a snowplow business offers a reliable way to generate income while providing an essential community service. But before you invest money in equipment and start looking for clients, you need to know what you’re getting into.
It’s essential to start by analyzing the potential profitability of such a business in your area and developing a strategic business plan. After all, the equipment you’ll need to purchase isn’t cheap, and you’ll have significant operational costs as your business grows, so you’ll want to make sure you’ll be able to turn a profit. The insights we gained from urban engineer Ahmed Harhara, Ph.D. will help you decide whether or not it’s worth moving forward.
Understanding the Snow Plow Business
“Profitability of snow plowing services as a business versus just a side hustle often hinges on how local weather patterns affect community demand,” says Harhara. He grew up in Michigan, the same part of the country I’m from. And while heavy snow events aren’t as frequent as they were when I was a kid, they still happen frequently enough to warrant a snowplow business. The same isn’t necessarily true for regions to the South or far from the blizzard-prone Great Lakes.
Once you’ve decided that the number of snowy days in your region is sufficient to justify a full-fledged business, you need to identify your clientele because that will have a bearing on the equipment you purchase and your operating costs. Will you cater to residential clients, focusing on clearing driveways and walkways, or will you seek commercial clients, which will involve clearing large areas like parking lots? If the latter, you’ll be able to generate more revenue, but you’ll also need heavier equipment, and your operating costs will be higher.
Here are some other things to think about:
- Competition – Is there a genuine opportunity for a snowplow business in your area, or are the community’s needs already met by existing companies?
- Contract type – Will you charge per push, per snow event or per season? Charging on a per-push or per-event basis is preferable in regions with sporadic snowfall, but if you’re in an area with regular heavy snowfall, you’ll usually generate a more stable income over the winter months by charging a flat rate that covers the entire season.
Legal and Licensing Requirements
When you start any business, you have to fulfill a number of administrative requirements to operate legally. Some of these vary depending on your state and local regulations, but in general, these are the steps required for a snowplow business:
- Establish a business structure. You can operate as a sole proprietor, but if you want to protect your personal assets, it is better to register your business as a corporation or LLC.
- Register your company name. Choose a name for your business and register it with the appropriate government agencies.
- Obtain a business license from your state or local government.
- Determine if you need a contractor’s license. Some states require this if you offer other services, such as landscaping, you plan to hire employees or your business exceeds a certain dollar amount.
- Obtain required commercial licenses. Make sure each driver who operates the snowplow equipment has a commercial driver’s license.
- Get insurance. You’ll need liability insurance for the business itself, and you’ll need workers’ compensation insurance if you hire employees.
Equipment and Tools You’ll Need
“The primary tools you need include a sturdy truck with a heavy-duty plow attachment and spreaders for salt or brine application,” said Dr. Harhara. You’ll probably also need a snow blower and shovels, especially if you’re serving residential customers.
Truck Considerations
The main consideration when choosing a truck is that it matches the size of the plow. A light-duty, four-wheel drive pickup can handle an 80-by-26-inch straight blade, which is suitable for most residential snow clearing. If you plan on doing commercial clearing, you’ll need a wider and taller blade (for example, 102 by 36 inches), and a heavy-duty pickup with a powerful engine and a high Gross Vehicle Weight Rating (GVWR) that can handle it. Popular choices include the Ford F250/350 Super Duty, the Chevrolet Silverado 2500/3500 and the Ram 2500/3500.
Plow Attachment
Again, the size of the plow attachment depends on whether you plan to offer residential or commercial clearing. Straight plows and snow pushers are suitable for most light-duty residential jobs and are the cheapest options. For large commercial jobs, a pricier V-shaped plow is more efficient (and usually requires a larger truck). You can also opt for a top-of-the-line wing plow, which folds back to allow for plowing in tight spaces.
Startup Costs and Budget Planning
Assuming you already have a truck, Harhara estimates the start-up costs, which include the plow, spreading equipment and permitting and insurance fees to be between $15,000 and $25,000. If you also need to purchase a truck, add that cost, which can range from $10,000 to $80,000, depending on the size of the truck and whether you opt for a new or used model. Harhara adds the reminder that “ongoing expenses like maintenance, fuel and insurance can add several thousand more per season.”
What Comes Next? Growing a Snow Plow Business
Once you have your equipment, you have to advertise your business. You can take out ads in local publications, but according to Harhara, the most effective advertising “tends to be hyper-local; using yard signs, knocking on doors, and placing ads in HOA newsletters helps build trust within the community.”
After you have established a few satisfied clients, they usually offer the best advertising by providing references and recommending you to other potential customers. But people still need to know how to contact you, so don’t forget to establish a website that includes a booking form. You can also reach potential customers by creating a Facebook page and a Google business profile.
FAQ
When should I start marketing my services?
Don’t wait for the snow to fall. Get a jump on the competition by advertising in the late summer or early fall, and continue advertising throughout the snow season. Many potential customers won’t even think of snow clearing until they are socked in by a heavy snowfall.
Do I need to offer salting or de-icing services?
You can start a snowplow business without offering de-icing services, but if you do offer them, your business is more likely to be successful. They increase your revenue potential and improve safety for your clientele.
Note that rock salt (sodium chloride) can harm plants, contaminate waterways and cause other environmental problems, so it isn’t allowed everywhere. In some communities, you may need to use an alternative deicer, such as sand, calcium chloride, magnesium chloride or calcium magnesium acetate (CMA), which is a salt-free melting agent relatively new on the market.
About the Expert
- Ahmed Harhara, Ph.D. is an engineer and the Founder of HoustonHomeTools, a data platform that helps residents understand neighborhood-level environmental and housing risks.
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