Anchorage’s Best Kept Secret: A Snow Biz with 40% Margins
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May 27, 2025
Imagine owning a snow removal business in Alaska with a whopping $700K annual profit! The discussion delves into the operational challenges of this unique venture, emphasizing reliability and local community ties. It also explores Anchorage’s diverse business landscape and the impact of geographic isolation on opportunities. Find out how newcomers can navigate ownership transitions and the significance of community relations. Plus, insights on SBA financing reveal the evolving landscape for entrepreneurs in snowy regions!
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insights INSIGHT
High Demand Due To Alaska's Snow
Snow removal in South-central Alaska benefits from extreme snowfall requiring dependable service.
This creates a niche market with recurring demand and limited competition.
insights INSIGHT
Moat Built on Trust and Scale
The business achieves 40% margins despite widespread snowplow access.
Reliability, community trust, and service density appear to form its economic moat.
volunteer_activism ADVICE
Buyers Must Be Local Insiders
Buyers should live locally and integrate into the community to maintain relationships.
Outsiders risk failure in this tightly knit service area without local ties.
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Would you move to Alaska to own a snow removal business making $700K a year?
Business Listing – https://www.bizquest.com/business-for-sale/landscaping-and-snow-removal-company-for-sale-in-south-central-alaska/BW2313996/
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In this episode, Michael, Heather, and Bill dig into a unique opportunity to own a long-standing snow removal and landscaping business in South-central Alaska. With reported SDE of $705,000 and a 17-year operating history, the business serves both residential and commercial clients in one of the snowiest regions in the U.S. The hosts examine everything from potential moats and operational challenges to community ties and the feasibility of SBA financing. If you’ve ever dreamed of running a simple but profitable service business in a remote and rugged location, this one’s for you.
🔑 Key Highlights:
- Business is making $705K in seller discretionary earnings (SDE) - Located in Southcentral Alaska, possibly Anchorage - 17 years in operation with a strong reputation - Five employees and a lean, high-margin operation - Challenges for outsiders entering a tightly knit community - Potential for carve-out complications in financials - SBA financing could be viable depending on buyer profile - Lifestyle considerations of living and working in Alaska
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