Starting my first LLC

[137]

I never expected this to be easy, but I want a taste of the business world like Palin wants her last few months back.

I've decided on a snow plow company (I live in Cleveland and there's always white hell in the coming months.) I have attained the LLC forms, almost decided on a name, I'm going to put an add in the paper and on craigslist for staffing, and use various sales techniques to gain clients. (door to door, a referral reward program, and posting ads in high traffic areas.) Business cards will be printed this weekend when I finalize the name. I've also decided on what to charge, and what to pay. I'll be attempting all paperwork, contracts, and management myself.

First, any advice will be accepted and considered, this is my first real business and really, I don't know what I'm doing.

Second, where might I find sample legal documents such as subcontractor agreement forms, contracts for the clients and any other documents I may be forgetting? The legal aspects concern me due to the fact that the more research I do the more things I have to follow up on.

Third, I know I need a federal ID number. Besides this and the LLC paperwork, what other licenses or permits do I need to research?

Lastly, any other sales or marketing techniques would be highly appreciated. I've never been bad at sales, but I'm far from the best. I'm prepared to be shot down 9 times out of 10, but if you have something that might make it 8/10 I'll give it a shot.

Thanks to all who contribute.

[dmetcalf50]

Well first things first, do you have a business plan? If not, I highly suggest writing one because failing to plan is planning to fail. Have you thoroughly researched this venture?

I have friends who have snow plow companies and have helped out the last 4 years. When it comes to filing for an LLC, I would recommend using LegalZoom.com. I've used them twice and they do everything for you. They can get your EIN, check if you need any licenses in your area, file everything, and you get to choose the specific terms of your LLC.

I would contact a lawyer for any legal contracts, but if not you can definitely google is and pay a little bit for some contracts. Otherwise just go on Microsoft Word and download a template.

From my experience, craigslist leads are terrible. Try and get some friends or some high school kids to help you out and just 1099 them or pay them under the table. Hiring people means you need workers comp and that's another $100 a month.

Go to businesses and bid them. Going door to door usually requires solicitors licenses. It's also not very efficient because these people aren't necessarily looking for this service. WoM is always good, but being a start up business the likelihood of receiving enough business this way to cover expenses isn't very good.

Snowplowing is so unpredictable because you never know how much snow your going to get. When bidding businesses I would suggest having a mix of set monthly prices and hourly monthly prices.

You're going to need shovelers and usually end up paying them around $15 a hour. A truck with a plow, salt or sand, possibly renting skid loaders, and sometimes using snow throwers for when it snows a lot.

You can always call other snow plowing companies too and see if they will subconract you using your truck and plow if they have too many accounts to handle themselves.

I would suggest setting up a website and doing some internet marketing. These are solid leads. When someone is looking for a service they hop on google and type in what ever they are looking for. If you get 10 calls you should be able to close most of them if your good at sales.

This line of work is labor intensive. Have fun staying up for days at a time making sure you get everything cleared out in time. Working through the night and getting just a few hours asleep will be normal.

I'm not trying to bring down your idea, I'm just telling you my opinion. There are so many companies and people who do snow plowing. If you decide to go through with this venture, you need to differentiate yourself from the competition. That will be very hard since everyone and their mother plows snow.

This is also a seasonal so what will you do during the non-winter months? Please don't say lawn mowing and landscape because everyone and their mother does that also.

Good luck!

F.Y.I. I live in Minnesnowta.

[BusinessAdviser]

Great input, dmetcalf, but I do disagree on a few points that might help the original poster:

1. Business plans are great, but you really don't need a full-blown plan for a venture as simple as a snow plow business. You need to understand the importance of planning and consider all issues, such as marketing and others, but business plans in full aren't always necessary.

2. Legalzoom.com is very overrated. You can register an LLC online at your state's website - search the State Secretary section - for much less, and it really is very simple.

3. Time and cost associated with a website probably won't pay off. How many times have you needed snow plowed and gone online to find a shoveler? Door to door marketing is much more effective. As soon as a decent snow starts, have flyers with a phone number, price, and other info ready and get them on as many doors as you can. But of course have a shoveling team ready to go.


Good luck.

[dmetcalf50]

You can make a simple website using a website builder from godaddy.com or register.com and that will only take you a few hours depending on how complex you want it to be. It won't look amazing but it'll get the job done.

Door to door isn't really that effective. It's too time consuming for something like this. Once the snow starts, you don't have a minute of time to advertise going door to door. You sign contracts with businesses months before it even starts snowing.

Shoveling team is usually used for sidewalks.

When it's snowing outside and you don't feel like shoveling, the first place to go would be google. That would have your largest ROI and it would generate the best leads.

[millionaire]

for deciding a name, it is very important to as your branding....
you can find a good advice on self branding for highest recognition....

[cyman]

GET CUSTOMERS FIRST
Sounds simple? IT IS NOT! A full-page color ad in the newspaper is at least $40,000 and that probably won't even get much business.

As a consumer, you are strongly underestimating the difficulty of getting enough customers to make good money.

Seriously, forget all this nonsense about incorporation. First, figure out a way to get customers. Test the entire process yourself (to save money). Ensure that you can scale up operations and (the hardest part) be honest about whether you will be making enough profits to make this worthwhile.

Do you see yourself making at least $100,000 in a few years? Not that you need to make that income! But you need to be able to visualize the company growing to at least that level, at a minimum! If you can't "see" it scaling to that level, then find another business model.

I would contact a lawyer for any legal contracts, but if not you can definitely google is and pay a little bit for some contracts. Otherwise just go on Microsoft Word and download a template.

FORGET IT! Go out and place ads, see how you can get customers first. Once you know you have an unlimited source of customers, then you can start spending on these other things!

PRACTICAL ADVICE
I know someone who is making very good money as a painter. They go door to door with a strong pitch and also use a voicemail service that leaves voicemails on people's machines with information and asking for a callback. Maybe a service like that in your area will work.