Have you made up your mind to start your own junk removal business?
Starting a junk removal business seems like a self-employment idea. However, while starting your own business, you need to consider various business factors like startup costs, marketing plans, hiring employees, and customer service skills. You need to be aware of various services before starting your junk removal business.
You’ll come across multiple junk removal services that you can include in your business. But where to start, how to start, and the essential metrics you need to consider? All these questions might have confused you. Right?
In this article, we have mentioned a step-by-step guide on how to start a junk removal business. It will help you get an overview of the junk removal businesses and the essential steps to starting your business.
So, let’s get started.
Table of Content
What is a Junk Removal Business?
A junk removal business is one such business that provides services to clean or remove the junk from the customer’s home or offices. It is a boon for homeowners, renters, and construction workers.
The services for junk hauling business are provided on the site, and junk is removed. It includes services ranging from old appliances to a small brush. Such cleaning jobs are huge and physically challenging ones that cannot be handled by a property owner alone.
However, many junk removal businesses have a team of junk haulers, or we can say junk removers who can drive a pickup truck or dump truck.
How To Start a Junk Removal Business in 5 Easy Steps?
Let us now take a tour to understand the step-by-step guide on starting your own junk removal business from scratch.
Step 1: Begin with Market Research
Before entering the junk removal industry, it is essential for you to do research about the market and junk removal company. Having a business plan for your junk removal business will help you to get on the right track. You have to make a list of plans like your goals, objective, vision, and purpose of your junk removal business plans.
A junk removal plan should cover:
- Market Research and Insights
Gather relevant and primary information such as demand of the business, number of potential customers, and setting up. As a junk removal business owner you should have answers while doing your market research and getting insights-
- What is going on in the target market?
- How many competitors or junk removal players are there in your area?
- The latest trend of the business stand
- What is your budget and cost estimation?
- How many employees do you want to hire or operate as a sole proprietorship?
You can gather all information with the help of the internet like Google or talk with people in the existing industry.
- Name and logo
The majority of junk removal business has the ‘junk’ and ‘removal’ words in their company name, however, it is not mandatory. The name should be catchy, creative, and easy to remember. You need to check whether the name is available or not because you don’t want to be involved in some patent or conflict issues in your junk removal business.
It is important to focus on name and logo because that’s the first thing a customer will notice about your company. Also, note that the name and logo should be suitable for customers to understand.
For example, you cannot name john truck as your junk removal company name because it sounds more like a truck company. It should be short and simple to remember.
- Franchise or Start Your Own Business
Generally, there are two basic options when you plan to start your junk removal business, and they are either having a franchise or creating your own.
To start a junk removal business as a franchise, you can easily avail several benefits to customers based on market research, like working directly with existing services, business models, marketing strategy, and branding.
With the help of buying franchises, a business owner generally gets ready-to-use trucks for transporting equipment or has an option for purchasing the pickup truck with an in-built branding facility.
In the initial stage, you will find it quite expensive to start a franchise because paying a franchise fee is costly. Additionally, you need to be ready to spend some profit on your parent company once your business operation is well settled.
Step 2: Create a Legal Business Entity
Well done, you are clear on what you want and how to establish your junk removal business in the industry. Now, you have to make your junk removal company legal with the business entity.
A business entity shows how a business is officially legal to operate. Like every other business, there are 4 business entities you need to select for your business:
|Ways of Business Entities||What Do They Offer?|
|Sole Proprietorship||If you are a small business owner or own a junk removal business entirely by yourself, you need a sole proprietorship business entity.|
|Corporation||When your legal entity is owned by a shareholder and operated by the board of directors.|
|Partnership||When there are two or more partners running your junk removal business.|
|Limited Liability Company ( LLC)||LLC is one of the types of legal entity to form a business structure than a partnership or sole proprietorship.|
You can form a business entity by yourself or hire an agent who will handle all your business legal entity. You can find out about your registration of a business entity and your city’s legal formality through the official website of the IRS.
- Obtain Funding To Get Started:
One of the essential benefits of starting a junk removal business is that it helps you get rid of setting up a new office or renting a storage space. It will usually cost you around $15,000 or more for junk removal businesses cost.
However, it’s a common fact that you need to spend some money to get starting with a new business. So, the startup’s funding includes truck costs, equipment maintenance, marketing strategy, tools and equipment, number of vehicles, and safety pieces of equipment for your first junk removal job.
You do not have any funding to cover the business expenses, apply for a bank loan, or even take a loan from your family and friends. The guarantee of business loans at banks is possible by using a Small Business Administration (SBA) source and can help you qualify for the money you need.
It will be quite tricky for you to search for customers that can easily cover all your expenses in the initial phase. So, you need to be ready to fill the gap to fulfill your budget criteria. One of the best tips that can easily save your money is to rent a junk removal trunk rather than purchasing a new one on an immediate basis.
Step 3: Get Necessary Business Insurance, Permits & License
Well, first of all, you need to register your business according to government rules and regulations, following the essential guidelines related to waste carriers. Then, to get complete details about the business requirements, you need to contact the local commerce or SBA branch.
Also, you need to take special permits or licenses specifically for transporting scrap materials from one location to another. If you have employees in your organization, it becomes mandatory to take an employer identification number (EIN) from the IRS site.
Moreover, you need to get business insurance along with business permits and licenses.
- Why Business Insurance?:
While starting a business, you will think to save as much as money you can, and that’s right also. But what if something goes wrong? For example, a car incident occurred during work and reccurance heavy turned out for your pocket.
Well, to cover such costs, you will require business insurance. For junk removal business, there are three types of junk removal business insurance.
Types of Business Insurance What Do They Offer? General Liability They offer insurance costs for daily business operations such as property damage, physical or personal injuries. Commercial Auto They help to cover financial revenue when the employee is at fault during an auto incident. Workers’ Compensation They help to cover expenses of medical bills and wage replacement when some employees get injured or have diseases due to work occupation.
The general liability insurance, the cost insurance of working on residential projects starts from $450 and has a limit of $2million.
Step 4: Get Tools and Equipment
Okay, once you are done with planning, and all legal formality, you will require the foremost important thing for the junk removal business and that is tools and equipment. Without tools and equipment, you cannot function one task and assign employees for junk removal jobs.
- Junk Removal Service Equipment:
For junk removal industry service, you need pieces of equipment like garbage bins, shovels, garbage bags, rakes, trucks, and tarps. You will require to purchase a truck to collect all garbage and throw it to the dump area or recycling center. A worker or employee will gather the hazardous waste from one job to another and the truck will help them to transport it.
The hazardous material is unsafe and therefore, you will need to use the right and proper pieces of equipment. The truck size and number of workers carrying junk disposal will depend on your junk removal business size and money.
Even if you are your own boss, you will need types of equipment and tools for hazardous materials removal. However, service areas will need at least one part-time employee or one involved in your business full-time.
- Essential Management Software:
Before starting a junk removal business, you should know it is a hard work business. However, to be ahead in the competitive industry and grow your business, you will require field service management software like FieldCamp. The software helps you to schedule the job task, keep track of employees through reporting, generate invoices, easy payment process, and allow you to track follow-ups.
What If You Can Save 95% Of Your Time You Spent On Manual Tasks?
FieldCamp helps you to manage your lawn care business operations instantly and automatically.
Step 5: Get Customers by Marketing Your Business
Good job, you have accomplished the steps and are ready to launch or start your junk removal business. Wait, but it’s not over yet because starting a business is not enough anymore, you need to market your business.
Marketing your business online has become a primary element for a successful business because it spreads fastly among the customer and the chances of the customer knowing your business increases. We have a few ideas through which you can market your business:
- Define your Brand
As we mentioned, it is a competitive industry with plenty of other competitors offering junk removal services. To make the audience or customers understand why your company is different, you need to show them and gain their trust.
Create a website, post on social media like Facebook pages and introduce them to your quality features, your exceptional service, define your brand like what you do, what you offer, and why you are different from others. A powerful online presence will help you to draw more customers.
- Work For Repeat Business
You need to work hard to make a robust reputation among individuals and businesses that can benefit you as repeat business.
Local government bodies, property managers, construction companies, or other local businesses are the best examples that you can try for repeat business.
- Follow-up Strategies
To get the first customers you need to follow up your marketing strategies. Having a strategy is also part of your business plan. Even telling them your own a truck or now you have more trucks should also be considered as your marketing strategy.
That’s it, hope you know have a clear idea on how to start a junk removal business. Even if you have a little doubt, let us make it simple for you and read below things to consider before starting a junk removal.
Things To Consider Before Starting a Junk Removal Business
There are some of the core points that junk removal business owners need to consider:
Get Rid of Extraneous Obstacles: First of all, you need to analyze and remove the regulatory barriers in starting your company. Various local, state and federal laws are available related to lawful junk disposal like hazardous waste. Even you need to be ready to pay high penalty fees if the removal is not carried out legally.
Take Advanced Training: You can take training from a junk removal company to understand the business operations. Additionally, such training helps you get detailed information on how to invest in your new enterprises.
Truck Marketing Strategies: Nowadays, advertising and branding on pickup trucks are hitting the market. You can make a try to include Craigslist or another list in such trucks to gain more profits in your junk removal enterprise.
Branding: Having a proper branding of every business service is a must, and it should have lower prices than your competitors. It’s not mandatory to keep significantly lower costs that your business goes down; only you should provide quality service and experience.
Seasonal Tasks: Junk removal typically comes under the spring and summer seasons. You need to be more active during these seasons to deliver the best services to the customers.
So, these were the essential things that you need to consider before you start your business. However, many questions will still be arising in your mind related to the junk removal industry. In the next section, we have listed the frequently asked questions, so look at them.
Looking for an Efficient Field Service Management Software?
Starting using FieldCamp which automates 90% of your daily operations with its scheduling to reporting features.
We hope you are now ready to start your own junk removal company.
A junk removal business helps you to get significant income under the correct management. The exciting thing to note is that junk removal requires a lower investment of time and money.
Follow every step mentioned in the article to make your junk removal business successful. You need to keep in mind the essential things and tips that are mandatory for your business enhancement to a great extent. The good part is that you can easily automate your business operations like creating schedules, tracking cleaners, generating reports, and other tasks easily using FieldCamp, which is a top field service scheduling software.