Evaluate job profitability.
Look at your budgeted costs for each customer and compare to your actual expenditures. Did you price your work appropriately for the level of service and customer expectations?
Evaluate your portfolio mix. You’ve heard it many times, but creating a snow portfolio that incorporates a mix of contract types can help with cash flow and mitigate risk. Check to see if yours are balanced.
Start locking up next season. If you did a great job for your clients, get them to renew contracts for next season while your success (and theirs) is fresh in their minds. Commitments now will allow you to properly budget for salt and equipment purchases and labor needs.
Establish a line of credit. The snow might have melted but there’s a good chance snow receivables are still outstanding. A line of credit to help fund the overlap may be an option if needed.
Collecting on receivables. If you have customers who are dragging their feet on payments, you may have some untapped leverage in terms of not scheduling any spring or summer work you perform until the account is maid current. Your other obvious method for collecting could be to withhold service in the upcoming season until past-due invoices are paid.
Start shopping for equipment.
Just as you should be lining up your commitments for the coming season, vendors would like to firm up equipment purchases. Committing early may allow you to negotiate better terms.
Quick Tips are quick, easy tips on highly specific topics in snow management. Read all Quick Tips at www.sima.org/quicktips.