Starting a Snow Removal Business in Canada

Canada! We all live in igloos up here, don’t we?

At least, that’s what most of the world thinks anyway. However, in reality, some Canadian cities do see over 200cm (78 inches) of snow each year. This does welcome the perfect small business opportunity to start a snow removal business.

We all feel the heavy labor involved in clearing the snow, not to mention the risks of slip and fall accidents. This does make snow removal an essential service!

If you are thinking of starting a snow removal small business in Canada, you are smart to think so.

• An average snow removal business startup can earn between $30,000 to $100,000 per search, depending on the scale of the operation.
• Typically, you are busy from November to March (area dependent), with peak spikes during storms – and we get plenty of those!
• There are no barriers to entry as you can truly start small scale with minimal investment, which does make it ideal for first time entreprneurs.
• Plenty of funding support available from local, provincial and federal governments of Canada to help you get that set up

Before you grab your shovel to kick start your own snow removal business, be sure to get your business insurance – as you will need it!

Steps to Start a Snow Removal Business

As you decide to start your own snow removal business, there are a few steps that you want to consider.

Step 1: What type of snow removal business will you start?

Yes, there are different types of snow removal businesses you can focus on, and it all depends on you and your availability.

Will you focus on residential homes (like your neighborhoods), or commercial properties (like buildings and parking lots), or will you larger and cover it all?

What are the services you will offer?

• Driveway clearing
• Sidewalk shoveling
• Parking lot plowing
• Salting
• De-icing
• Emergency services
• ..etc

Your potential and how you plan on scaling your snow removal business will of course, depend on the amount of snow, your availability, access to help (more staff), and access to equipment (shovels, snow blowers, snow plows..etc)

The snow removal business industry is quite large in Canada. In fact, it’s a multi-million dollar industry due to our long winters and heavy snowfalls. Especially in provides like Ontario, Quebec, Alberta..etc

Step 2: Your snow removal business “business plan”

The initial step above would have helped you narrow down your snow removal business idea so that you could focus on the specifics. Your business plan is the next step, as it will help you unfold the potential of the business and industry.

Start by defining the specific services you can offer. Understand the market and potential competition – to do so, look at the various pricing strategies, competition marketing as well, the demand.

Industry specifics show a significant demand for a snow removal business, so there is plenty of opportunity to make a ton of money!

Starting a snow removal business may seem pretty easy and you may have the urge to avoid building a business plan, but keep in mind that you can use your business plan to really lay out your business idea, create financial projections, prepare a marketing plan and strategy, as well, use the business plan to obtain funding for your business. Perhaps the added funding can help you with the initial equipment (shovels, snow blowers, trailers, snow plows); or even with marketing costs, website development costs, and more.

You can use business plan tools such as this one to develop a business plan that is in line with government funding expectations, which can really give you a kickstart towards setting up your own snow removal business in Canada.

Did you know: A typical snow removal business startup can obtain $25,000 in funding? This can help you with the key expenses to get you up and running! See the Funding Database to access this funding.

 Step 3: Getting funding to start a snow removal business in Canada

As the snow removal business is in high demand in Canada, your first step after building out the business plan is to find funding to assist you with the startup process.

While minimal investment is needed, and you can often start with the equipment you may already have, many choose to hit the ground running and be prepared to take on as much work as possible. To do so, you may need a few things:

1. You have to register the business.
2. You have to get snow removal business insurance.
3. Plan the equipment you need
   1. Shovels
   2. Snow blowers
   3. Snow plows
   4. Truck and trailer?
4. Think about your marketing
   1. Ads
   2. Website
   3. Promotional materials
5. Do you need staff  – somebody to help?

Well, you are in luck, as the Canadian government has various funding options, including local, provincial, and federal options, that can help you fund your snow removal business!

Equipment funding – you can get up to $50,000 in funding!

Marketing – you can get up to $25,000 in funding!

Wages – you can get 6 months of pay covered!

These funding options are all accessible in the Funding Database and can help you quickly obtain the needed funds to kickstart your snow removal business before the season!

Tips to Starting a Snow Removal Business

While a snow removal business is seasonal, it can generate a ton of money!

At Canada Startups, we’ve seen small-scale operations generating $30,000 to $100,000 during the season. However, we’ve seen companies hit $500,000+ in revenue just with a small team.

Let it snow, let it snow!!!

Many snow removal businesses also transition into other seasonal businesses after the winter season is done – as having those contacts you’ve made is a great asset. This can include yard cleanup businesses, lawn care businesses, gardening, spring cleaning, waste removal, and more.

But while we are on track with the snow removal, here are a few tips to ensure your snow removal business’s success!

Tip 1: Start marketing before the snow falls: Promote your services in the late summer or early fall to secure contracts in advance. You can offer flat-rate contracts for the season, instead of per-job fees.

Tip 2: As you gain traction and clients, prioritize customers based on their needs; ie: who open early (if a business), or those who need to be on their way early (morning commuters). Be punctual and prepare ahead of time by monitoring weather forecasts.

Tip 3: Invest in the right equipment. Obtaining funding via government sources can ensure that you are well prepared for all jobs ( basic tools like shoves and blowers for residential jobs); and snow plows, skid steers and multi-purpose equipment for commercial projects. Initially, before buying the equipment, you can also lease, or rent!

Tip 4: Build close relationships with clients. As you work with them one on one, and you provide a quality service, trust is gained, enabling you to be able to come back each snowfall, each year – not to mention the other opportunities you can have beyond the winter season.

Tip 5: Not necessarily a tip about how to run the snow cleaning business, but more so how to prepare! Build your business plan so that you can effectively prepare for seasonal challenges, to expand your services and to seek out funding before you need it!

Success in the snow cleaning business depends on preparation, reliable service, and customer satisfaction. By focusing on efficiency, maintaining quality equipment, and marketing effectively, you can establish a strong reputation and secure recurring clients season after season.

Canada’s winters present a unique business model for entrepreneurs. This makes a snow clearing or snow removal business such an ideal opportunity as a business startup that you should not avoid. While it is a seasonal business, keep in mind that building strong relationships can be a gateway to diversifying into year-round maintenance services.