Snow Removal Business Plan

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A business plan is also necessary to secure outside funding.

Since snow removal isn't a year-round business in most locations, contractors often work in landscaping or lawn treatment in warmer months.

In this example I am going to assume that you get a $22,000 loan and you have to come up with a $6,000 owner investment to be able to pay for your truck, spreader and plow.

So you can enter your loan and your personal investment as seen below: $22,000 loan $6,000 personal investment If most of your contracts only allow you to bill if it actually snows, then you need to run some “Scenario Analysis” which means you run financial projections based on different scenarios. Now that we have gone through all of this work you can see the resulting projected profit and loss for November and December and January through March.

This answer will drive your sales projections going forward.

Based on these assumptions I have created the following revenue projections for your first year in business: November and December Sales: January through March Sales: There are a number of expenses that you will incur with a snow plowing business. The key variable costs are listed below along with an estimated cost for each time there is a “plowable” snow for your 20 commercial and 10 residential clients: According to Snow Plow Maker – Boss – a new “V’ blade snow plow will set you back about ,000.Source: No degree required to become a snow removal contractor but an associate's or bachelor's in business would be beneficial.Experience requirements varies from 1-3 years of experience operating snow removal vehicles.Well before you go to your local bank and ask for a loan for a truck, plow and salt spreader, you should run some numbers so that you understand exactly what you are getting yourself into.We have created a financial model template just for you, so to get started choose the Snow Plowing Financial Model here.They typically use their own snow plows or other snow removal equipment and are responsible for removing snow from roads, parking lots, driveways and other snow-covered areas during the winter months.These professionals are typically contracted by businesses, homeowners' associations and county governments to perform snow removal duties, as well as ice prevention and removal.These relationships are crucial for securing future business and dependable resources.Since snow removal contractors may run their own businesses, they should consider enrolling in a post-secondary business program that will earn them a degree.A salt spreader might cost around ,000, and of course a truck can range dramatically depending on whether it is new or used.Let’s assume you buy a used truck for ,000 in this example forecast.

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