Christopher's Snow Services Business Plan

“We move the snow so you can GO!”

Christopher’s Snow Services Business Plan

November 2018

Prepared by Christopher Vasquez, Owner

1149 Mystic Pines Ct. Boulder County, CO 8038 Phone: 303-476-1215

This document contains proprietary information belonging exclusively to Christopher’s Snow Services. Contents Executive Summary ...... 3 Company Description ...... 5 Description of Products and Services ...... 6 Trademark and Copyright Plan...... 7 Marketing Plan ...... 8 Social Media Marketing Plan ...... 9 Market Analysis ...... 11 Customer Profile ...... 13 Operating Plan ...... 14 Accounting Plan ...... 15 Management Plan ...... 16 Schedule of Startup Funds ...... 17 Projected Income Statement ...... 18 Risk Assessment ...... 19 Company Policies ...... 20 Resume ...... 21 Postsecondary Education Plan ...... 22 Savings Plan ...... 23 Investment Plan ...... 24 Mentor Interview ...... 25

Executive Summary

I. Introduction

Christopher’s Snow Services was founded in 2018 with the prime purpose of providing local Mystic Pines residents with quality, affordable snow removal services for difficult winter ice and snowfall conditions. The business is operated by Christopher Vasquez, who is the sole employee of the business.

The company can be characterized as a start-up with considerable opportunities for growth.

II. Products and Services Christopher’s Snow Services will offer the following services: 1. Snow removal from driveways 2. Snow removal from front walkways 3. Deicing of driveways 4. Deicing of walkways 5. Snow removal from car or roof (upon request) More information can be found in the Marketing Plan sections of this business plan.

III. Market Summary The target market for Christopher’s Snow Services will be homeowners in the Mystic Pines neighborhood in Boulder County, Colorado. Snowfall varies throughout the year and in Mystic Pines, there are many homeowners who are older professionals. These professionals often have a full work schedule and like to spend their weekends away in the mountains, which means they do not have a great deal of time to dedicate in cleaning off cars, salting sidewalks, and removing ice from driveways. Research conducted at the local Chamber of Commerce indicated that small businesses are on the rise in the Boulder County, Colorado area. Therefore, there appears to be a steady future growth and need for snow removal services.

IV. Competitive Position None of the local competitors for snow removal have local offices that allow quick access to Mystic Pines. Since Christopher's Snow Services will operate from Christopher’s parents’ home in Mystic Pines, customers will be able to schedule an arrangement for snow removal

quickly. The fast service Christopher’s Snow Services is able to offer will be a competitive advantage to larger, more established snow removal businesses.

V. Financial Position The estimated funds required to start Christopher’s Snow Services is $500. To cover the start-up funds, the owner will secure investment capital from an investor. The projected income for the first season of business for Christopher’s Snow Services is $3650.00. This amount is expected to grow steadily as Christopher’s Snow Services is committed to maintaining excellent customer service and adding more employees and services over time.

More information can be found in the Schedule of Startup Funds, Accounting Plan, and the Projected Income Statement sections of this business plan.

VI. Mission Statement The mission statement of Christopher’s Snow Services is to provide local homeowners with the highest-quality snow removal and deicing services available while earning a reputation in excellent customer service. To achieve our mission, Christopher’s Snow commits to the following: 1. Follow the philosophy that our customers are and will always remain our first priority 2. Demonstrate unceasing hard work to maximize customer ease and safety 3. Make it easier than ever for customers to manage winter travel from their home

VII. Vision Statement By 2020, Christopher’s Snow Services will be known throughout the county as a leader and major competitor in winter snow and ice removal services.

Company Description

I. Company Name The legal business name is “Christopher’s Snow Services.”

II. Business Summary Christopher’s Snow Services removes ice and snow from customer property.

III. Form of Ownership Christopher’s Snow Services is a sole proprietorship. Christopher Vasquez is the sole proprietor and owner.

IV. Industry Classification According to the North American Industry Classification System (NAICS), the industry classification for a snow removal business is “Other Support Activities for Road Transportation.” The NAICS code number is 488490.

V. Location Christopher’s Snow Services will operate from the owner’s home residing at 1149 Mystic Pines Ct., Boulder County, CO 80308.

VI. Year Established 2018

VII. Primary Function Christopher’s Snow Services will provide snow and ice removal from customer’s homes, driveways, vehicles, and other properties.

VIII. Employees Christopher Vasquez, the owner, will be the only employee of Christopher’s Snow Services.

IX. Business Advisors Jon and Caroline Vasquez, the owner’s parents, will serve as business advisors to Christopher’s Snow Services. Samuel Vasquez, the owner’s brother, will also advise Christopher’s Snow Services.

Description of Products and Services

I. Description of Industry The support industry for road transportation provides services to those using roads. Snow clearing and removal are services provided within this industry. Snow removal involves the removal of snow and ice from roads, driveways, pathways, rooftops, doorways, and more. Businesses involved with snow removal use various equipment to make roads and common pedestrian pathways safe for a community.

II. Products or Services Provided Snow removal companies provide the following services: • Shoveling • Plowing • Salting (de-icing) • Removal of snow piles • Removal of icicles

III. Nature of the Work Snow removal is a seasonal business that only operates in winter months of November– March. The services provided by snow removal will be completed using physical labor and outdoor tools such as shovels, snow blowers, road salt, ice scrapers, and when necessary, plows. The following steps apply to a finished product of a snow removal business: 1. Shovel snow from driveway area 2. Shovel or snow-blow sidewalks and pathways 3. Sprinkle salt on sidewalks and pathways. 4. Safe removal of icicles (if requested) 5. Removal of snow from other forms of property, such as sheds and doorways (if requested)

Trademark and Copyright Plan

I. Name of Business Christopher’s Snow Services

II. Trademark Protection Trademark protection will be needed for the following: • Logo • Tagline and slogans • Business name

III. Patent Protection No patent protection is required at this time.

IV. Copyright Protection Business name, slogans, logos, and creative works will be protected under copyright laws.

Marketing Plan

I. Product Christopher’s Snow Services will offer the following services: 1. Snow removal from driveways 2. Snow removal from front walkways 3. Deicing of driveways 4. Deicing of walkways 5. Snow removal from car or roof (upon request)

II. Place Daily operation will take place in the neighborhood of Mystic Pines in Boulder County, Colorado. Meetings and product delivery will be conducted at the customer’s location.

III. Price Prices for services will be: Product Price Snow Removal (from Driveways and $25.00/hour Walkways) Snow Removal and Deicing $30.00/hour Snow Removal and Special Requests $35.00/hour

IV. Promotion Christopher’s Snow Services will use the following advertising strategies: 1. Distribute brochures, promotional letters, and business cards to residents in his neighborhood Mystic Pines 2. Local newspaper advertisement 3. Social media posts 4. Website Christopher’s Snow Services will use the following marketing schedule: 1. Distribute brochures, promotional letters, and business cards: twice each month 2. Local newspaper advertisement: once each month 3. Social media posts: daily for six months 4. Website: update twice a month

Social Media Marketing Plan

I. Goals Christopher’s Snow Services will promote the following services using social media: 1. Snow removal from driveways 2. Snow removal from front walkways 3. Deicing of driveways 4. Deicing of walkways 5. Snow removal from car or roof (upon request)

II. Business Image To build a positive business image, Christopher’s Snow Services will use the following strategies when using social media: ● Blog posts will offer “how-to” advice for winter snow removal and related activities. ● Social media posts will be positive, upbeat, informational, and relevant to customers. ● No negative photos, comments, or messages will be used. This will maintain the business image of professionalism and positivity.

III. Tools Christopher’s Snow Services will use the following social media tools to connect with customers: ● WordPress for a company blog that shares “how‐to” tips. ● Facebook to increase inquiry calls and the number of customers who visit the company website. ● Instagram to share images of satisfied customers, weather updates, and to host contests, giveaways, and special promotions. ● LinkedIn to connect with other professionals to join groups, to learn more about how to grow a business, and to build a professional image.

IV. Execution Christopher’s Snow Service will use social media based on the following editorial calendar: ● Blog will be updated bimonthly on the 15th and 30th of each month, unless winter weather gives an opportunity for promotion. ● Facebook posts will occur biweekly on Tuesdays and Thursdays unless winter weather gives an opportunity for promotion.

● Instagram posts will occur biweekly on Tuesdays and Thursdays unless winter weather gives an opportunity for promotion. ● LinkedIn networking will occur biweekly on Tuesdays and Thursdays.

V. Operation Costs Christopher’s Snow Services anticipates the following expenses in using social media: Initial setup for blog/website hosting and domain name $200. ● $0 to set up Facebook, Twitter, Instagram, and LinkedIn. But, 20 to 25 hours in time to set up each, become familiar with the platforms, and begin posting.

Market Analysis

I. Analysis of the Target Market The target market for the business will be homeowners in the Mystic Pines neighborhood in Boulder County, Colorado.

Rationale: Snowfall varies throughout the year and in Mystic Pines there are many homeowners who are professionals. These professionals often have a full work schedule and like to spend their weekends away in the mountains, which means they do not have a great deal of time to dedicate to cleaning off cars, salting sidewalks, and removing ice from driveways. This indicates that snow removal services are needed in the subdivision, which will serve as Christopher’s Snow Services’ target market.

Research conducted at the local Chamber of Commerce indicated that small businesses are on the rise in the Boulder County, Colorado, area. There appears to be a steady future growth and need for snow removal services.

II. Analysis of the Competition A search of the business directory of the local Chamber of Commerce yielded the following competitors in the snow removal category:

• Willy’s Winter Advantage • Salty Dog Snow Removal • Claire’s Ice and Snow Care

None of these businesses have local offices that allow quick access to Mystic Pines. Salty Dog Snow Removal appeared to work with many local businesses to plow parking lots, and all of the businesses mentioned have company vehicles and plows. Willy’s Winter Advantage appears to be the largest competitor because they work with residential customers. Because Willy’s has to cover such a large area, however, it will take them considerable more time to reach Mystic Pines neighborhood.

III. The Outlook of the Industry After visiting the Occupational Outlook Handbook website, the following information was derived regarding the future outlook for grounds maintenance and snow removal services. Employment of grounds maintenance workers is projected to grow 11 percent from 2016 to 2026, faster than the average for all occupations. More workers will be needed to keep up with increasing demand for lawn care and landscaping services from large institutions

11 and individual homeowners. Job prospects should be very good. Employment growth will vary by specialization. Snow removal services is a seasonal job but a very lucrative one when snowfall is high and black ice is frequent.

IV. Owner’s Personal Strengths Since Christopher’s Snow Services will operate from Christopher’s parents’ home in Mystic Pines, customers will be able to schedule an arrangement for snow removal quickly. The fast service Christopher’s Snow Services is able to offer will be a competitive advantage to larger, more established snow removal businesses.

Customer Profile

Customer Profile: Homeowners in the Mystic Pines Neighborhood

Demographic Ages 45–65

Gender Male and Female

Ethnicity Any

Income Level $60,000 and greater

Occupation Varied, although many people are involved in medical profession

Psychographic Interests: Outdoor activities Activities: Hiking, running, mountain biking, snowboarding, skiing

Geographic Boulder County, CO

Operating Plan

I. Purchasing Materials required: ● Snow Shovel ● Ice Removal Tools ● Road Salt Suppliers to be used in direct production of products: ● Al’s Tools (a local tool shop) ● Home Depot ● Ace Hardware

These suppliers have been chosen for their competitive prices, convenience, and quality.

II. Production Turnaround time for services offered by Christopher’s Snow Services will vary depending on amount of snowfall and ice as well as a client’s specific needs. An estimation of the length of time a service will take: ● 0–2 inches of snow – 1 hour or less ● 3–4 inches of snow – 1-2 hours ● 5+ inches – 2+ hours If a client requests other services, such as salting sidewalks around house, additional time required will be assessed upon consultation.

III. Sales and Marketing Because the business is a start-up, during the initial few years, a minimum of 8– 10 hours per month will be spent conducting marketing and promotional activities for Christopher’s Snow Services.

IV. Accounting A simple automated accounting system will be maintained. It is estimated that accounting tasks for Christopher’s Snow Services will take one to two hours a month.

V. Distribution Services will be performed at the customer’s place of residence each morning following winter weather. Any arrangements the customer wishes to make to account for special needs or additional services must be stated upon consultation.

Accounting Plan

I. Assets and Liabilities Christopher’s Snow Services has the following assets:

• Snow blower • Snow shovel • Road salt • Snow removal broom • $500 start-up capital from investor

At this time, Christopher's Snow Services does not have liabilities.

II. Income and Expenses Christopher’s Snow Services will acquire income through the following services:

• Snow Removal (from Driveways and Walkways): $25.00/hour • Snow Removal and Deicing: $30.00/ hour • Snow Removal and Special Requests: $35.00/ hour

Christopher's Snow Services will have the following expenses:

• Snow removal broom: $25.00 • Road Salt: $60.00 • Advertising: $435.00

III. Financial Statements To maintain accurate accounting practices, Christopher’s Snow Services will implement the following financial statements:

A budget will be created to include how Christopher’s Snow Services will allocate start-up funds, and a projected income statement will be created to show how Christopher’s Snow Services expects to profit.

Management Plan

I. Ownership Structure Sole proprietorship

II. Organizational structure If Christopher’s Snow Services determines that hiring employees is necessary for business growth, it will operate using a functional organizational structure. The functional structure would consist of a finance department, a marketing department, a scheduling department, and a service department who would complete the daily snow removal work for the company. All departments would report to Christopher Vasquez, the owner of the company.

III. Management Team At present, Christopher Vasquez is the only employee of the company.

IV. External Management The external management will consist of the advisory board consisting of Jon, Caroline, and Samuel Vasquez. The advisory board will consult the owner on business investments, business activities, and other matters relating to company operations.

V. Human Resources At present, there is only one employee of Christopher’s Snow Services. When the company grows, part-time employees will be hired as needed to perform snow removal tasks. Future employees will be compensated at $10/hour. Future employees do not need experience in the snow removal industry but must demonstrate ability to work hard and complete tasks thoroughly.

Schedule of Startup Funds

Price Each Quantity Total Start-up Funds $500.00 Available

Equipment Required Snow Blower $0 - Borrowing item 1 0 ($200.00 for replacement) Snow Shovel $0 - Borrowing item 1 0 ($35.00 for replacement) Snow Removal Broom $25.00 1 $25.00

Materials and Supplies Road Salt $10.00/50lb bag 5 bags/300lbs $50.00

Advertising Local Newspaper Ad $80 for one week 2 (first two months) $160.00 Website Domain $200/year 1 $200.00 Social Media 0 0 0 Brochures - Ink $35 1 $35.00 cartridge to print at home

Total Start-up Funds $470.00 Required

Projected Income Statement

Christopher’s Snow Services Projected Income Statement - Year 1 Prepared by the Owner, Christopher

REVENUE

Products/Services Customers Price Total Snow Removal 55 (1 hour/customer) $25.00/hour $1,375.00 (from Driveways and Walkways)

Snow Removal and Deicing 35 (1.5 hours/customer) $30.00/hour $1,575.00

Snow Removal and Special 10 (2 hours/customer) $35.00/hour $700.00 Requests

Total Sales $3,650.00

COST OF GOODS SOLD

Item Estimated Qty. Price Total 50lb Road Salt (for deicing) 10 $10/50 lbs $100.00

Total Cost of Goods Sold (COGS) $100.00

Gross Profit (Net Sales-COGS) $3,550.00

OPERATING EXPENSES

Item Total Start-up Expenses $500.00

Advertising $1,505.00

Phone ($30/month) $360.00

Bank Fees ($10/month) $120.00

Total Operating Expenses $2,485.00

Net Income (Gross Profit-Total Operating Expenses) $1,065.00

Risk Assessment

Christopher’s Snow Services recognizes the following risks and risk management strategies in conducting business operations: Management Risk Who is affected Strategy

Not enough snowfall to do business Owner Retain

Competitors will outperform me Owner Retain

Demand will be low Owner Reduce

Paying money into marketing strategy won’t Owner Reduce guarantee customers

Might not make enough money to be Owner Reduce operational

Might not be able to pay bills Owner Reduce

Physical risk of injury Owner Transfer

Damage to customer property Customer Transfer

Customer may get injured even though Customer Transfer walkways plowed and iced

Christopher will personally retain the risks of competition and lack of snowfall. These are environmental conditions that he cannot control, and he does acknowledge this is the risk of conducting business in this industry. He will reduce the financial risks of not being able to pay bills or make enough money to be operational by adhering to a strict budget, provided in this business plan. He will also reduce the risk that customers will be dissatisfied by presenting a document of expectations before conducting services, and offering a feedback form after services. This will reduce the likelihood of customers being unhappy with services. The nature of the physical components of the job has driven Christopher to decide that he will need to transfer the risks of injury or damage to himself or to customers’ property. By purchasing general liability coverage, he will not be held personally responsible for all of the bills and costs associated with injury or damage.

Company Policies

Phone and Technology Use Policy Christopher’s Snow Services understands the use of mobile technology and internet as a means of communication. However, due to the nature of the labor performed during business hours, employees are not permitted to use mobile devices while on a client’s property except in the case of emergency. An emergency in this case qualifies as an injury to a person or property. Mobile devices are approved for usage inside of a parked vehicle but never during the operation of a company vehicle. Violating these terms will result in a probationary period for the employee.

Customer Service Policy Christopher’s Snow Services operates to satisfy customers in terms of winter care and snow removal. Employees are expected to treat customers with kindness, respect, and understanding at all times. Employees are forbidden from using inappropriate language or gestures while interacting with customers. Any violation of these terms is subject to immediate termination at the owner’s discretion.

Resume

Christopher Vasquez 1149 Mystic Pines Ct Boulder County, CO 80308 Phone: 208-555-6234 [email protected]

¶ OBJECTIVE: To start a snow removal services business: Christopher’s Snow Services. ¶ EDUCATION: Diploma Expected Blue Pine High School May 2018 WORK EXPERIENCE: Cashier 2017 – 2018 Billington’s Grocery Store Boulder County, CO 80308 • Managed cash receipts and returns from customers • Recorded daily transactions and balanced cash drawer ¶ VOLUNTEER EXPERIENCE: Volunteer Builder 2018 Boulder Habitat for Humanity Boulder County, CO 80307 • Handled and delivered supplies • Transported materials • Built homes for citizens in need SPECIAL SKILLS: Proficient in Microsoft Office and Microsoft Excel, Bilingual in English and Spanish ¶¶ ACCOMPLISHMENTS: Senior Class Vice President 2018 – 2019

PROFESSIONAL AFFILIATIONS: DECA

REFERENCES: Provided upon request.

Postsecondary Education Plan

Christopher would like to pursue a career in business administration in the hopes to expand the business someday. He will attend Wallingford Community College for two years to earn an associate’s degree in business administration and then transfer to a university for a bachelor’s degree in business administration. Attending community college will enable Christopher to save money and pay for education by reducing costs of tuition and room and board. During this time, Christopher will continue to learn outside of formal education by growing and expanding Christopher’s Snow Services. This will help him to apply his work experiences to coursework to learn as much as possible in preparation for entrepreneurship. By working and attending school, Christopher will develop time- management skills and problem-solving skills that will help him develop entrepreneurial abilities.

Savings Plan

Christopher will create a savings plan for Christopher’s Snow Services. The total goal for savings is $500 annually, with $250 being placed in an emergency savings fund and $250 saved in a general account. To reach this goal, Christopher will place $20 into each savings account after completion of each job. Money will be kept in savings accounts at Wells Fargo Bank. To maintain accountability, savings will be built into the business budget.

Investment Plan

Goals

Invest $1,000 in the stock market by the end of the first year in business

Risk Tolerance

Low, since Christopher is just beginning savings and investing plans

Type of Investment Vehicle

Low-risk stock of AT&T

Investment Strategy Every month Christopher will review how the investment is performing. Before Christopher attends college, he will re-evaluate investment plan and make necessary adjustments.

Mentor Interview

The following is an interview with Richard Snyder, owner of a lawn care company that provides snow removal services.

1. What limitations did you face as you started your business?

When I first started, I was working nine to five at a different company while cleaning snow in the mornings during the winter, and doing a few lawn care services at night. Budgeting my time and money was definitely an issue at first.

2. What start-up costs did you incur?

Luckily, I inherited lots of my dad’s old tools. But I had to make sure I had proper protective gear for the snow and cold—investing in good pairs of gloves and boots was more expensive than I thought. As the business got going and expanded, I bought some new tools.

3. How did you choose your company name?

I brainstormed a long list of ideas, then asked for input from those around me. After I had picked out my favorite, I checked the United States Patent and Trademark Office website to make sure the name wasn’t already taken.

4. What is the biggest challenge you face as an entrepreneur?

It’s a lot to juggle. You have to worry about your finances, legal protection, hiring the right people to help you, and building a reputation within your community. You have to be an excellent multitasker and truly believe in the work you’re doing.

5. What advice would you give to a student interested in entrepreneurship?

Choose something you’re really passionate about. It will make the long hours, freezing cold, rude customers, and winter weather much more bearable if you care about what you’re doing.

6. How do you go about marketing your business?

We market the company in a variety of ways, from business cards to online advertising. Our website is very important. It has to be informative and current while also projecting an image that will be attractive to customers.

7. What has been your most successful marketing tool?

Lately, one of our biggest resources has been social media. Through Facebook and Twitter, I can keep customers up to date about the latest services we have to offer. Customers can also post reviews about how we are doing—five star reviews on Facebook do our marketing for us.

8. As you started your business, how did you analyze consumer needs?

First and foremost, you have to think about what will be beneficial to your customers. What services are already available, and how can you stand out from the crowd? Do your research, then start brainstorming on how you can fulfill customer needs.

9. What zoning laws did you have to take into consideration?

When I was still working from home, I had to file a variance for approval by the zoning board.

10. What would you say is the most important step for an entrepreneur who is just starting out?

The business plan is absolutely essential. It needs to be thorough and detailed to interest potential investors, and it also needs to have clear-cut goals. You need to have a vision for your business.