# Existing Plow Accounts and Business Opportunity - Should I Buy It?



## Conan the Walleye (Jul 14, 2018)

I work full-time in marketing, but I've been doing landscaping, snow removal, and hardscaping off and on for over 20 years now, starting with working at a family-owned tree and flower nursery spading trees and mowing at age 12 in Wisconsin. I've operated plows, tractors, tree spades, just about everything short of heavy excavation equipment.

At a recent estate sale, I made a connection with a retired gentleman. He and his wife are moving and he sold his home and is selling his snow removal/lawn care business of 25 years. There are (60) houses in 2 HOA's (within 5 minutes of my house) and all of the accounts are next door to each other. The accounts are literally a dream - split 50/50 per push and on a seasonal contract. I'll need to adjust prices a little, but people literally beg this guy to plow for him.

He made me an offer to sell his 2010 Chevy Silverado 1500, Western 8' plow and 7x12 landscaping trailer for $15k. Truck has 130,000 miles, new shocks, tires, brakes. Plow has new shoes/cutting edge and wiring, as well, in good shape, only 4 years old.

Accounts bring in $9-10K in October for seasonal billing, and 3 billings for the per-push accounts happen in mid-December, mid-February, and mid-April. He also has more work than he can handle with lawn mowing, general property maintenance, changing light bulbs and door hardware for little old ladies, ect. He's willing to help finance the accounts for 10% of yearly value, probably between $3-4K paid this year.

I am thinking about doing this in the morning before work (4-8am) and then any additional cleanup after I work from 9am-5:30pm work. My work schedule is fairly flexible, and my boss is pretty good about letting me work odd hours.

I'm in NE Ohio, and this business (after looking over paperwork and invoices) that regularly brings in $25-35K per year, after truck maint, expenses, taxes. He has billed $200-400 per push for some accounts that call during a storm, as we live in a pretty wealthy area. If ever overloaded, I could sub some accounts or sell the business as needed as it grows. He did this during the end of a busy career and then when he was first retired (worked super-part-time hours and as he had energy.)

Any thoughts? This would be a game-changing way to make some money and own a part-time business venture using my skills and experience. The routes are jam-packed right next to each other due to being in 2 adjacent subdivisions, and are extremely efficient. Business has an LLC, and I've secured a web address and wire-framed a page. I've driven his truck, looked at the equipment and done the math on the books and business end.

The business would cost $18k to purchase ($15k for truck, equipment + $3k for accounts). I would pay him the $3k for accounts based on a minimum percentage of his current contract/per-push customers signing, probably 90% return rate needed. If done correctly, I would have the business as it is paid in full by May of 2019.

Love to hear some thoughts from the veterans in the group before I decide to 'pull the plug' and make him an offer.


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## JMHConstruction (Aug 22, 2011)

Just from doing it a few years back, in my opinion, snow removal and part time have no business being in the same sentence. When it starts snowing, if you can't hit those accounts right then and there, you will see a decline in those who resign the next year. Especially with 60 or more houses.

The people are all begging "him" to plow for them. Once they find out the business sold to new ownership, there are no guarantees.

You seem like you're a smart person. You've checked tax records, you know what you'll need to charge, and you seem to have the experience to do it. Is he selling everything, including his equipment for that $15k? If so, it doesn't sound like a bad deal


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## Conan the Walleye (Jul 14, 2018)

All equipment, including truck, plow trailer is included in the $15K.

I second your thought, JMH that this guy's existing accounts might not renew for this winter's season. I want to build into any contract I would sign that the purchase price of his plow accounts would be based solely on the percentage of people signing by end of October. If there was a big exodus of plow accounts, I could still have the option to purchase the accounts that did sign at a lower price.

As for the part-time aspect of this job, I do agree it might be a stretch. I work 10 minutes from home, and the plow accounts are in 2 subdivisions on my way into work. When we get midday snows in Ohio, it's usually heavy and when a multiple-day event, our departments work from home.


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## EWSplow (Dec 4, 2012)

In my opinion, he's asking too much for the truck and trailer. 
As for the asking price of accounts, he's really just giving you leads. The rest is up to you. You can't come in the first year and raise prices, because they'll start shopping elsewhere. I had a similar situation, where a friend who was getting out of the business and I took six of his accounts. What I gave him was about the revenue of one day. I have had these accounts for about five years now, mainly because I do a better job than he did. I went two seasons before raising the prices. 
Also, as JMH stated, you can't do snow part time. It works if you have a job you can leave at any given moment to switch to snow. No subs will want to come in and plow only when you're unable to. If your employer lets you work a flexible schedule, you might be able to pull it off . I've done it in the past , but it was a very unique situation. 
Good luck with whatever you decide to do .


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## EWSplow (Dec 4, 2012)

I just realized in your second post you said "all equipment ". There's more than the plow truck and trailer?


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## Conan the Walleye (Jul 14, 2018)

8' Western UltraMount Plow is included - 4 years old. It has a new cutting edge and wiring harness/lights. He's also throwing in some leaf blowers, tools, compressors, tool box for truck and misc equipment from his small group of lawn accounts for the $15k.


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## EWSplow (Dec 4, 2012)

Conan the Walleye said:


> 8' Western UltraMount Plow is included - 4 years old. It has a new cutting edge and wiring harness/lights. He's also throwing in some leaf blowers, tools, compressors, tool box for truck and misc equipment from his small group of lawn accounts for the $15k.


If you add it all up, you may be at $15k.
Depending on milage, condition and how many years that truck has been plowing will affect the worth as well. I usually stay away from buying plow trucks. I typically buy good used trucks and put a new, or slightly used plow on them. 
Reading a little more closely, it looks like your job is somewhat flexible. 
Are you doing walks as well? 
Maybe you can find a good sub who can pick up the slack. 60 drives relying on a 9 year old plow truck , with no backup truck is risky. 
You also need to allow time for maintenance and repairs, scheduling, invoicing, loading salt, etc.


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## John_DeereGreen (Jan 2, 2011)

I think you're setting yourself up for failure. Too many places for things to go awry. 

1 truck, no backup. 

Truck is 8-10 years old depending on in service date. 

Full time job not related to snow plowing. 

I'm also in NE OH. We service accounts in multiple counties. So I'm rather familiar with weather and snowfall. I don't see it working out unless you have no other job in the winter months. 

Good luck in your decision.


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## m_ice (Aug 12, 2012)

Keep the current owner on for a year working and helping you transition. Work both this gig and your current job. Put your marketing to good use and build the business. Quit your day job next year.


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## Randall Ave (Oct 29, 2014)

You need a back up plan as stated. If it's snowing hard, you can't rely on some one else. He's out doing his own work. You can be on time for years, show up late once, and that's what they remember. I would want two trucks.


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