Every guy and his buddy that are between "real" jobs, owns a truck and a mower, has a "mowing business" around here. No name on the truck, no insurance, don't pay taxes, no overhead. Mow, Blow, & Go.
I just counted 74 listing in the yellow pages under Lawn Maintenance. Most of these I would assume have their name on the truck, insurance, and some over head.
I don't have a problem with the little guy starting out, under cutting to get a foot in the door. I don't even care if he doesn't have insurance. He is the one loosing his house, not me. I don't care if he gets paid cash for every job and doesn't pay any taxes. When he gets caught, he is going to pay the fine or go to jail, Not Me.
But there comes a time when you are only going to make so much money doing it that way. I'm past that point. The only snow plowing jobs I bid on require me to have the insurance, name on the truck, DOT #, etc. Little Guy Snow & Mow can't get to these bids, because they can't or won't do the legal stuff to get to that point. When the accounting department of the company you just bid on and got the snow plowing bid calls you to ask for your Tax ID # so they can w-4 & 1099 you and you say, "Dahhh.... what do you mean?" They will take the contract from you and give it to the legit company that bid higher than you.
If you want to buy a truck and plow your own driveway and some neighbors and friends, then do it. If you want to have a regular job and plow for beer money or toys go for it. But if you want to quit the 9-5 job & make real money, then you have to be legit. Get insurance, pay your taxes, and bid jobs with a rate that will raise the standards for our industry.
There will always be low ballers. There will always be customers that don't care if their plow guy pays insurance or taxes and they just want the lowest price. AND there will always be customers that require higher standards and are willing to pay a higher rate.