Profitability of Snow Plowing
In the right areas, snow plow businesses can be extremely profitable. One business owner in Boston has a gross revenue of $150,000 in an average year — but once brought in nearly $400,000 during a single month. The profit depends on operating expenses. The average cost ranges from $25 – 75 an hour, or $200 – 600 per season.
Whether money serves as a side income or dependable source depends on factors. However, consider how much snow your area receives each winter before starting a business. A couple of storms a year might help you earn a little cash, but you can’t count on significant income. If you live where snow covers the ground for four or five months, then you have people who require your services.
Starting a Snow Plow Business
With the $19 billion snow plowing industry, equipped entrepreneurs can cater to residential clients or shopping centers. Here’s a guide:
- Determine Viability: Ensure enough demand exists to support the business.
- Going Big or Small: Start with one or two plow trucks for residential neighborhoods.
Software helps profitability by quick billing so clients pay faster. It’s your choice to use software.
Snow removal is a $400 potential gig for young, fit people with equipment. Also, know that only 4% solely have a snow removal business, 60% said it was less than 30% of revenue.
Startup costs for a snow plowing business range from $6,000 to $13,000. Costs include equipment like a truck, a plow, and other items. Fast-forward to present-day and plowing snow can be very profitable when done correctly. Some people can earn more money plowing snow than many earn in a full year at their full-time job. It is not uncommon for a snow plowing business to earn $50,000 or more per plow truck during a single winter!
Have you ever considered starting a snow plow business? It is a great way to make money during the winter months while providing a service that many people need. With the right marketing strategies and equipment, you can be on your way to becoming a successful snow plow business owner. Read on for more information on how to get started in the world of commercial snow plowing!
Technology and Tools
If you are considering how to start a snow plowing business with a good footprint from the very first season, a snow plow app can help you make a smooth start. Thanks to the mobile app experience, your customers can place a requirement anytime, anywhere, with a single screen tap. The same app will provide a comprehensive report on your snow plow business operation, earnings, and more.
Douglas Dynamics Inc. designs, manufactures, and sells snow and ice control equipment for trucks which consists of plows, spreaders, and related accessories. If we see a winter with average snowfall, it could be a catalyst for the stock. Meanwhile, the stock is yielding over 4%, so investors are paid for patience.
Removing snow from a driveway with plowing costs around $125 for up to 6 inches from a standard driveway. Rates differ depending on availability and demand, but the average is about $49 per driveway, and drivers keep 70% of that fee. So a driver could expect to earn about $34 per driveway, per storm.
Investments and Opportunities
Real estate is a long-term investment needing a good bit of money to start. Returns often come from holding the asset over years. Investing in real estate can be attractive because you can borrow the bank’s money and pay back over time.
Diamond plows are better known as commercial snowplows built for clearing tall snow with trucks. These plows have cutting technologies for clearing efficiency. Are they worth investment?
Among plow types for farms are:
- Trailer rarely used due to large turning angle
- Attachment tools for rear of machine, maneuverable but shallow plowing
- Semi-mounted complex design but allows large land strips
A good investment fits your risk tolerance and financial plan. Identify goals, budget, assets with growth potential. It can balance other investments, diversifying industries, sectors, foreign companies.
So whether a business is a good investment depends on how it complements your existing one – more customers, services, employees, efficiencies. The more synergy between companies, the more investment pays off.
Profitable purchases are made when companies acquire competitors, suppliers or customers. Expanding locations through acquisition also increases profitability.
Farmland values are flattening after 50% corn price declines. As values flatten, some owners should think more like bond or property investors.
A mutual fund is operated by a manager who invests your money for you, attempting good returns with less risk because money diversified.
If you lack analysis skills for financially sound projects, enlist an investment accountant. Ensure the safety of initial capital. Nothing wrong with investing in a business just completed a turnaround and now profitable again.