Own a snow removal business? Thinking about starting one? Or do you, for some odd reason, enjoy reading about the business? Whatever the reason, I want to tell you exactly what NOT to do when running a snow removal business. Keep these mistakes in mind when it comes to your business and you won't have to worry about screwing up at all. Believe it or not, there are quite a few things that can go wrong if you don't pay them the right attention. More specifically, there are six things that can go wrong.
1. Don't Maintain Your Equipment. If you don't take care of your equipment, its lifespan is not going to be as long and their ultimate value is going to decrease. It's not much different from owning a home. If you don't take care of your house it's going to fall apart and, of course, its value is going to decrease. If your equipment is not up to par, the value of your snow removal business is going to fall. Keep your equipment clean, make sure it's running during the summer months and then again during the fall months so that you are more than prepared for that first unexpected snow fall.
2. Communicate Poorly (Or not at all) with your Customers. Communication is key in all relationships. In this case, it's especially important when it comes to your customers. Don't fall off the grid during the hot summer months when snow is a distant memory - stay in your customer's memory. Don't be too present as to annoy your customers with thoughts of snow, but remind them every few months that you will be there for them when that first snowfall comes back around.
3. Only Using one Pricing Model. Use various pricing models for different services and for different demands. If you keep just one pricing model, it's possible that your customers will start to believe that your business is unfair or inflexible. Keep an open mind with prices. This way, your customers will really feel valued.
4. Undercut Competition and Take on More Business than you can Handle. Do not bite off more than you can chew! It may be tempting to take on as many customers as you possibly can and by all means, do so if you can handle it. However, do not be over eager. What could happen is that you overbook your company and you end up doing more harm to your business' reputation than good. As your business succeeds, you will be able to hire more help and your business will continue to grow. If you take on too much too early, your business will crash before it even leaves the ground.
5. Don't Manage your Paperwork with Software. If you choose not to manage your paperwork with software you will quickly run out of time and resources. Why waste your business' time and money by manually filing paperwork? As your business grows, it is crucial that you use your time wisely. Using software allows you to do this and will open up more space for providing service for more customers.
6. Don't Encourage Referrals. Make sure you are encouraging referrals! I cannot stress this enough. People trust their friends, family, and peers. If a customer refers your business to a friend, that friend is likely to trust you simply because someone they know does. Be open and flexible!