Equipment is another good place to look. Do you really need to own all that you do? In some instances, renting equipment or the use of sub-contractors can greatly reduce your cost structure and allow you to remain competitive. Sometimes your over-priced bid is because your overhead is out of balance. The use of subs or rental equipment will help you eliminate fixed costs which will allow you to operate more efficiently.
It's very simple
Without a sound budget, you will run the risk of burning through cash. Before you know it you are out of money. Without sound financial planning, you run the risk of jeopardizing everything you have worked for.
I helped numerous contractors this last spring who failed to plan for the tame 2011-2012 winter—and were nearly put out of business as a result. Remember, if you use up all of your cash and any line of credit over the winter months, you will not have the funds you need to operate the following spring.
In other words, make the same management commitment to your snow removal division as you do to the rest of your operation. You'll be glad you did—in good times, and especially the bad times.