The working time for the snow removal business usually lasts six months in Nizhny Novgorod - from November to April. Not bad at all for a seasonal business. True, concluding contracts for snow removal is becoming more and more difficult every day. According to experts, clients should have been “warmed up” in September-October.
In the B2B segment
According to weather forecasters, the coming winter will be snowy. Thus, there will definitely be work for snow clearers. You just need to decide which niche to go into.
The main streets are cleaned by large utility companies that receive contracts from the municipality. As a rule, they have enough of their own equipment and personnel to cope with significant volumes of work. However, in some cases, they may use subcontractors for cleaning. And this is where small businesses can make money.
“In addition to their own equipment, road workers will use KamAZ trucks and large tractors,” said the mayor of Nizhny Novgorod Vadim Bulavinov the other day. “It is important to maintain the snow removal fleet in good condition.”
In 2009, the city administration almost doubled funding for road services. If in 2008 the city budget allocated 500 million rubles for road maintenance, in 2009 it was already about 1 billion rubles. At the same time, demands on public utilities have also increased.
“Removing snow from the streets is a very responsible job,” warns Ivan Semkov, deputy director of Communal Sphere LLC. “People are always heavily criticized for poor cleaning, and the administration punishes them with rubles.” By the way, after the first big snowfall in November, Vadim Bulavinov criticized utility workers, promising to apply administrative penalties for poor cleaning of territories. “In connection with the new system of acceptance and payment for work, approved by the administration of Nizhny Novgorod, customers (in this case, district administrations) regularly assess the condition of the roadway. In case of improper road cleaning, contractors are fined, in other words, their activities are not paid in full,” said Vitaly Kovalev, head of the Main Department of Public Improvement of Nizhny Novgorod.
According to experts, the best way for a small business to try to make money from cleaning the business sector is to organize snow removal in the adjacent area of an office or shopping center.
“Even during a crisis, building owners do not skimp on snow removal,” assures Evgeniy Kolodin, General Director of Chistota-NN LLC. – The main thing here is to demonstrate that you really have a serious company, and not a team of unkempt janitors. Then you will have every chance of outsourcing work.”
“You can also remove snow around cottage houses in the private sector - it is these mini-orders that allow you to gain momentum faster due to the constant influx of money and expansion of the clientele,” adds Ivan Semkov.
Formation of a vehicle fleet
The crisis again played into the hands of those who decided to organize a snow removal business: this year, almost all snow removal equipment has fallen in price. “There are different models of snow removal equipment,” says Ivan Semkov: “professional and semi-professional. The cost of the cheapest non-professional models of snow removal starts from 25 thousand rubles, which is quite affordable for virtually any citizen. However, you need to understand that your income will depend on how quickly you can clear a fairly large area of snow. And the unit costs 30 thousand rubles. It will not be possible to remove a large area. Therefore, you need to count on an amount of at least 80 thousand rubles.”
According to experts, a snowblower should have between 8.5 and 9.5 horsepower. The model must have: a device for removing ice; backlight (for night work); metal impeller on snow discharge; large angle of rotation of the bell; electric start.
A significant disadvantage of professional units is their weight: up to 120 kg or more. To transport them you need to purchase a trailer. “In any case, you will need it to transport snow,” says Evgeniy Kolodin.
The trailer must be special. First, it must be able to support the weight of the snow blower. Secondly, its volume should allow the removal of snow to be loaded into it. The trailer must have an awning. Special trailers of domestic production cost an average of 50-60 thousand rubles.
Search for customers
“It is very difficult to find clients in November-December,” notes Ivan Semkov. – Usually contracts are concluded at the end of September – October. But you shouldn’t despair: there are always those who “slept through” the first snow or did not enter into an agreement for some other reason.”
As a rule, those responsible for cleaning the area in office and shopping centers are the “building maintenance engineers” or even the “chief engineer”.
“The most weighty argument in negotiations with the customer, as elsewhere, will be the price,” says Evgeniy Kolodin. “You always have to bargain.”
As the area of the harvested area increases, the price of the issue increases. Usually for mechanized cleaning 1 thousand square meters. m, an amount of 4-5 thousand rubles is taken. The most profitable ones are the huge parking lots. Here and 10 thousand rubles. You can get paid for cleaning the same area, although a novice entrepreneur is unlikely to get such a jackpot right away.
A strong argument for the client will also be the possibility of removing snow, which simple wipers do not do. It is recommended to perform this work at night.
As experts say, in order for a business to be profitable, it is necessary to find at least 8-10 small or 2-3 large customers. As their number increases, it will no longer be possible to transport snow in a trailer. This means you will have to buy a truck. And these are one-time expenses of at least 1 million rubles. In addition, it will be necessary to expand the staff at the rate of 1 person per 3-4 new facilities.
"Underwater rock"
The most difficult technological question in snow removal is where to put it after it is loaded into the trailer? According to the law, you can’t just dump it outside the city - after all, city snow is toxic. Snow can be unloaded either in specially designated places far outside the city limits, or taken to a snow melting station. Rate per 1 cubic meter m of snow here is approximately 100 rubles. In any case, the cost of these services is lower than fines for illegal dumping of snow outside designated areas. Among the problematic issues are long queues of municipal utility workers, which the station serves out of turn.
Investments and payback
According to experts, during the high season - from December to February inclusive - an active snow blower can consistently receive 10 orders per week. And this is 40-50 thousand rubles. per week or 200 thousand rubles. per month. Of these, approximately 5 thousand rubles. will go to gasoline. Another 5 thousand rubles. must be set aside for depreciation of equipment. You can’t do without the usual janitor’s equipment: a pair of brooms and shovels, a crowbar, a dozen pairs of mittens, a warm pea coat, felt boots or boots. Together with small items and accessories for the snow removal unit, all this will cost about 5 thousand rubles.
Thus, the initial investment is 210 thousand rubles. (80 thousand rubles (snow blower) + 60 thousand rubles (trailer) + 15 thousand rubles (enterprise registration) + 40 thousand rubles (tax patent) + 15 thousand rubles for other expenses) you can “ recapture" in just 1.5-2 months.
If you managed to increase business volumes to 20-30 orders, then you will have to purchase a dump truck (cost about 1.3 million rubles), and also spend money on employee salaries (about 100 thousand rubles for 3-4 people). Thus, the payback period here will stretch over a longer period, and it will not be possible to “recoup” the money in one season. But you will own a truck that can be used in business in the future.
This business is quite simple and does not require lengthy preparation and organization. It is especially relevant in regions with heavy snowfalls. The most important - give good advertising and provide services with better quality and efficiency than competitors. If the business is organized correctly, it will be possible to return the initial investment in the first season of operation.
- Determining the scope of work
- How to open a snow removal company. Registration procedure
- Selection of premises and purchase of equipment
- Hiring employees
- Financial plan
- Advertising
Determining the scope of work
Before starting this business, you need to decide who you will provide your services to:
- For private individuals.
- Organizations.
- Both.
This is a very important point, because the necessary equipment and inventory, as well as the number of hired workers, depend on it. All this will ultimately affect the revenue and profitability of the enterprise. In addition, you need to take into account that in addition to clearing snow, you can also provide other services. cleaning work, so you need to realistically assess your capabilities.
How to open a snow removal company. Registration procedure
To organize this business, no licenses or permits are required. It is enough to register as a private entrepreneur. According to OKVED, this activity will have the following name: “Cleaning up the territory and similar activities.” In addition to snow removal, this OKVED also makes it possible to provide services for cleaning and garbage removal, clearing sidewalks of ice, and watering roads.
Selection of premises and purchase of equipment
To organize a business you will need storage space for inventory and equipment. If you have your own, that's even better. Even a large garage may be suitable. It is not necessary to open an office.
If you provide services only to the public, then you will only need manual equipment: shovels, crowbars, ladders, which will be needed to remove icicles from roofs.
It is imperative to provide workers with safety equipment, as well as safety tapes and signs.
To organize cleaning on a large scale, you cannot do without a snowblower. When choosing, you need to carefully read the parameters of the machine and choose exactly the one that can cope with the required volumes. There are professional and semi-professional. The price of the equipment depends on this (from several hundred dollars to several thousand). When choosing a machine, you need to consider the following indicators:
- Large rotation angle;
- Ability to work in the dark;
- Availability of attachments for removing ice;
- Optimal power.
It is also necessary to provide workers with winter work uniforms with reflective tapes.
And you will also need a car to transport equipment and remove snow.
If the starting capital is very limited, then you can do without buying cars, but rent them for the first time, and then buy your own.
Hiring employees
At the initial stage, it is enough to hire a few people. Additional hires can be made as the volume of work increases. Hired workers must be physically healthy and resilient, and not have bad habits. For these types of work, payment is made hourly, so you need to reduce downtime as much as possible.
An important point is safety precautions. Before leaving for work, it is necessary to conduct instructions and be sure to keep a log in which everyone must sign. This will relieve the manager of liability in the event of an accident that occurs due to the fault of the worker. But don’t forget the safety measures that need to be taken in advance.
Financial plan
Here is an approximate calculation of costs and income for snow removal. The calculation is made on the condition that the snow removal equipment is rented.
The cost of the service consists of the cost of renting snow removal equipment and wages to workers. Let's carry out the calculation for an object with an area of 2000 sq.m., roof - 1500. In such an area, the volume of snow will be approximately 400 m³, plus from the roof - 300 m³. Average tariffs: 400 rubles per cubic meter, 250 rubles per “square” - a separate fee for work on the roof.
Income will be: 700 x 400 + 300 x 250 = 355 thousand rubles.
Roof cleaning cost: 100 x 1500 + 1000 = 150 thousand rubles.
Cost of cleaning the territory: 12,000 rubles (snow removal equipment) + 700 cubic meters of snow x 100 (dump trucks) + 5,000 (workers) = 87 thousand rubles.
Profit: 355 - 150 - 87 = 118 thousand rubles. And this is only from one object.
Advertising
You need to start advertising your business in advance, in the summer. When the snow falls, all contracts will be signed. The most effective advertising will be a personal visit to each organization. If they are ready to cooperate with you, it is necessary to conclude an agreement. Moreover, in addition to snow removal, you can offer other services, for example, garbage removal, sprinkling sidewalks with sand or salt. The client must also choose what time is most convenient for him to do the cleaning. If it is night, then you need to do it in the dark.
Keeping a customer log is very important. The contract is concluded for one season, so next year you need to remind yourself. Having completed all these steps at the beginning of your activity, you will be able to conclude a sufficient number of contracts, which will make it possible to recoup costs in 2-3 months of work.
The first snow falls, and a real stir begins on the streets of populated areas due to a lack of cleaning equipment, knowledge of where to turn, and time to wait.
Russia is a country of amazing climate and people; winter comes here unexpectedly. Even more unexpected is the snowfall in winter. Who would have thought that it would snow in winter!?
Everyone except those whose duties include cleaning it. Every winter we hear news about impassable rubble in the streets, mangled cars on which it fell from a roof, about the roofs themselves, which could not withstand the weight of the snowdrifts lying on them.
Who should clean up?
Utility services, at the very least, clean the territory of government facilities. Snow on private properties is a problem for owners. They are obliged to clean up on their own, otherwise there will be a considerable fine, and if there are victims, a criminal case.
For example, in just one week of February 2016 in Vladivostok, the administrative commission reviewed 36 protocols and issued fines to individuals and legal entities for not removing snow.
Even without a fine, for private owners it’s just a nightmare. The white mountains surrounding the building can be a deterrent to potential customers, especially those who need to park their car. Which restaurant will you go to: one with snowdrifts or an empty parking lot? Snow must be removed; entrepreneurs are faced with a number of painful questions. Who will clean up? Where to get a brigade, how to organize it? Where to find equipment? How to manage it in 1 day?
How to help private owners and earn a million per season?
The demand for cleaning is obvious. Organize an offer and the money is in your pocket. Become a person who quickly, efficiently, and at a reasonable price solves the problem of snow blockages - clients will not keep you waiting.
How much can you earn from 1 client?
Standard client – medium business center – needs to remove snow from a 1500 sq. m. roof. m, remove what fell from the roof.
Separately, proceeds for the removed roof. With an average price of 25 rubles per harvested square meter, the result is 25 x 1500 = 37,500 rubles. Total revenue 210,000 + 37,500 = 247,500 rubles.
Now we calculate the cost:
Climbers' labor - 10 rubles. for 1 sq. m. Payment for volume so that workers do not waste time. A person who notifies passers-by about the ongoing cleaning – 1,000 rubles per shift.
The total is: 10 x 1500 + 1000 = 16,000 rubles
Cost of cleaning the area:
— Backhoe loader for eight hours — 10,000
— Dump trucks (120 rubles per 1 m3 removed) — 84,000
— Two workers (RUB 1,000 per shift) — 2,000
Total cost: 16,000 + 96,000 = 112,000 rubles.
Profit from the facility: 247,500 - 112,000 = 135,500 rubles.
Only 2-3 objects per month and a million per season in your pocket!
What difficulties may arise
— High competition. There will always be many people who want to earn a lot quickly and a lot.
— Short deadlines for order fulfillment. No one will wait even 2-3 days, everyone needs it faster, preferably “yesterday.” How to organize a team in the shortest possible time? Find equipment quickly and inexpensively?
— The client is always in a hurry - he needs to be taken hot, there is no time to sell the service for a long time - the client will go to competitors. This means you need: a) to have a supermarket so that they come to you straight away; b) be able to sell well and quickly so that they don’t leave you.
— The season lasts 3-4 months. There is no time to learn by trial and error, you need to immediately take the bull by the horns.
Snow removal is an exclusively seasonal activity. They don’t buy equipment specifically for this purpose. As a rule, snow removal is carried out by companies or individual entrepreneurs who rent out special equipment along with drivers. The main equipment used for these purposes are front loaders and dump trucks. The first ones clear and load the snow, the second ones remove it from the territory (if the customer requires it).
The competition in this market is more than significant. For every 100 thousand residents, there are approximately 10 firms and 15 individuals providing such services. Whether this is a lot or a little depends on weather conditions. Winters are also different. It happens that it snows for weeks and everyone is so busy with work that they even have to refuse. And there are also winters with little snow, and you have to reduce prices just to take an order.
Snow removal - who are the customers?
There are plenty of clients for this service. After all, any area that requires vehicle access needs cleaning and snow removal. Frequent customers are city or district administrations (when public utilities fail to cope), private individuals for cleaning local areas, areas of shopping centers, cinemas, parking lots, areas of enterprises, transport companies and office centers.
Selection of equipment
To get started, you can buy a regular front-end loader with a universal bucket. In winter they can clear snow, in summer they can provide services for loading construction waste, leveling the soil, loading crushed stone or sand, and site planning. The approximate budget for purchasing one new loader is 2 million rubles. This amount is enough to buy a foreign loader of such models as: Bobcat S530, Norcar A62, JCB Midi CX.
Snow removal - how much can you earn?
The average cost of snow removal by region is 800 rubles per hour. Front loader with a bucket capacity of 0.4 cubic meters. m. will clear approximately 2-3 acres in an hour. As a rule, equipment is ordered for large areas for at least three hours. Accordingly, we charge 2,400 rubles from one client. It is clear that there will not be orders every day; everything depends entirely on weather conditions. During snowfall, the loader can work around the clock, but in sunny weather it can be idle. If you count the minimum, there can be 30 orders per month. This volume can be completed in 4-5 days. This is how many days in a month there is heavy snow.
From here you can count on revenue of 72,000 per month. Winter in central Russia lasts three months and revenue for the winter season will be about 216,000 rubles. From this amount should be subtracted
- driver’s salary – 60 thousand rubles;
- Fuel and lubricants – 30 thousand rubles;
- depreciation – 10 thousand rubles.
From here you can count on a net profit of 116,000 rubles.
During the winter, you can make good money clearing snow.
The advantage of such an undertaking is the minimum amount of required investment.
In fact, a businessman will only need to purchase cleaning equipment (shovels, scrapers), safety equipment and a folding ladder (if work will be carried out on the roofs of buildings).
The minimum initial investment will be about 50 thousand rubles and a snow removal business idea at least deserves the attention of budding entrepreneurs.
Snow removal business in winter
Of course, with large volumes of work, an entrepreneur cannot do without snow removal equipment.
With its help it will be possible to remove snow at production facilities. The cost of a non-professional snowplow, as a rule, does not exceed 20 thousand rubles.
As a rule, such equipment can be stored in your own apartment without renting a separate room. It is advisable to purchase a snow blower with illuminated headlights (in case the work will be carried out at night).
If the entrepreneur’s investment is impressive, he can invest in the purchase of a unit equipped with a special device for removing ice. In this case, it will be possible to complete complex orders with minimal time.
How to organize a business with snow removal services
Who can use the snow removal service:
A businessman’s clients can be housing offices, various educational institutions, manufacturing enterprises, etc. The first orders can be easily found in the private sector.
Many homeowners do not have time to deal with snow removal, and they will gladly agree to use such a service. It is necessary to sign contracts with large organizations that will determine the deadlines for completing the work and the amount of remuneration.
There is no need to rent a separate office to house your business. Negotiations with clients can be conducted by telephone or via the Internet.
It will not be possible to carry out large volumes of work without hiring employees. At the initial stage, a businessman needs to employ at least 2 assistants.
In the future, when the workload increases, it will be possible to think about expanding the staff. Only hardy men without bad habits should be hired. The best employees should be given bonuses.
It is advisable to start a snow removal business in the northern regions, where snow begins to fall in early November and does not melt until the end of March. In this case, you can count on high load and profits reaching 50-60 thousand rubles monthly.
If everything goes well, the investment in the purchase of equipment will be recouped in 1-2 months.
In the summer, an entrepreneur will need to think about expanding the specialization of his business.
For example, you can open a cleaning service and start cleaning apartments or private houses.
To help a beginning businessman
Any business requires official registration; in a small business, it is best to register an individual entrepreneur (Individual Entrepreneurship): REGISTER A FREE IP WITHOUT LEAVING LEAVING YOUR HOME.
You can download the finished business plan by clicking on the link: DOWNLOAD BUSINESS PLAN
Business idea for providing snow removal services updated: November 12, 2016 by: Alexey
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