Let me set up the scenario that’s taking place throughout the professional snow removal industry. You’re based in one of those markets where the last few winters were very good. After some analysis, you only worked 25-45 days this past winter. You’ve reviewed the last season’s financials and, frankly, the numbers are terrific.
Your outstanding bills are paid and you have money in the bank, which will sustain your summer cash flow or core business’ start-up costs. In fact, you still have a lot of money due in, though none of it is really too far past due.
Is it time? Do you really want to fight the good fight again this summer? All those headaches for 10 percent or 15 percent gross margin on the – choose one: landscape maintenance, tree care, design-build, irrigation, you-name-it service. Is it worth your time?
Welcome to the world of the successful snow contractor. Who hasn’t entertained thoughts of going snow-only? Many think about it. Few pursue it. Why is that?
Fear of the unknown is one. You say, “What will I do with all my free time?” What will your relatives think when you have nothing to do during the summer? All of these things, and more, pass through your mind – and with good reason.
Frankly, it’s not that easy. Sure it all sounds good, but the reality is much, much different.
Of course, you will have things – actually, lots and lots of things – to do and accomplish during winter’s “off months.” For the most part, sales become much more important. While it’s true you do get more time off than you had in the past, cultivating new customers during the off months becomes your primary activity. And you’ll find a surprising number of potential customers are soliciting/accepting proposals throughout May. And then, you’ll begin seeking out clients in June, July, August and September. Believe me, the successful snow-only guys are out there beating the bushes for new business, following up on leads and courting new clients. Snow-only guys become obsessed with snow.
Likewise, you’ll have more time to review your numbers. This is very important because culling unprofitable accounts from your portfolio will become just as important is building your client base.
So you have some important questions to ask yourself. Do you really want a more relaxed atmosphere in your work environment for a couple of months – April, maybe May? Sounds nice, doesn’t it?
You’ll start paying attention to who’s doing what in your marketplace. You’ll begin growing the snow business year round instead of just in fall and winter.
In a short period of time you will find your snow-only business is a year-round activity. And soon, you’ll be back to working 12 months out of the year and wondering when you can afford to take time off for vacation.
Ah… but those 50 percent gross margins will look awfully good when it’s time to pay the bills.
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