Have you made up your mind to start your own junk removal business? Then, we have something very useful for you. Yes, we have a complete guide on how to start a junk removal business from scratch.
While starting your own business, you need to consider various business factors like startup costs, marketing plan, hiring employees, customer service skills, and many others. All these things might have confused you. Right?
Don’t worry! 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 junk removal companies and essential steps to starting your business.
So, let’s get started.
Table of Contents
Overview Of Junk Removal Business
A junk removal business is one such business where a business owner provides services to clean or remove the junk from the home, offices, garages, and other places. It is a boon for homeowners, renters, 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 employees or we can say junk removers who can drive a pickup truck or dump truck.
How To Start a Junk Removal Business in 8 Easy Steps?
Let us now take a tour to understand the step-by-step guide on how to start your own junk removal business from scratch.
Step 1: Market Evaluation For Junk Removal Business
First of all, as a business owner, you need to analyze the current running junk removal industry in your local area. You need to make sure of the essential factors based on the industry standards that make your business great and be on top of the market.
Another essential factor that needs to be considered is to decide whether to include residential or commercial junk removal or both in your business. Even you need to know the competitor’s pricing structure, service area, and most importantly, advertising and marketing strategies.
Moreover, you need to take time to view the demographics or markets in your area. If you find someone who is an expert professional in the market, then it becomes your prime responsibility to take their contact information and understand the reason for their dominance.
You need to understand the competitors’ pros and cons, making them trustworthy in customers’ eyes. Once you have analyzed everything, it’s time to apply whatever choice suits the best for your business needs.
Step 2: Decide Whether To 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, the business owners 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 amount to your parent company once your business operation is well settled.
However, there are many major junk removal franchises available in the market, and some of them are: 1 College Hunks Hauling Junk and 1-800-Got-Junk
Step 3: Be Ready With Your Business Plan
The business plan’s primary intent is to show the details about how you will start your business and generate revenue.
In the business plan, the business owners of a junk removal company need to state the goals and the junk removal service you will offer your customers.
The next thing that you need to include in the marketing strategy that you are planning to enhance the customer service in your business. Include the pricing model, startup cost, and planning to raise your business funds in the business plan.
A junk removal business owner needs to consider both the everyday expenses and the prices your competitors charge in the pricing model.
You need to estimate expenses by considering various factors like equipment installation & maintenance, employee remuneration, disposal fees, and gas. Once it is ready, proceed further to decide the pricing schedule.
The pricing strategy for your small business is totally up to you. It’s not mandatory to keep the fixed price; in fact, make changes in your pricing structure as your service experience is increased on a large scale.
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Step 4: Obtain Funding To Get You 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.
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 cost, equipment maintenance, marketing strategy, and other disposal costs for your first junk removal job.
If 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 fulfil 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 5: Purchase Essentials Tools, Vehicles, and Equipment
Now, it’s high time to buy a used vehicle like a van or truck that can smoothly transport customers’ junk items to disposal facilities. You need to find a vehicle that can handle large load capacity and has better fuel economy.
The primary reason for using the used vehicle is that you’ll have a lower budget initially and as your business grows by including more services, you can purchase new vehicles.
However, it’s not mandatory to have your vehicle equipped with the latest technology like climate control or leather seats as it will just enhance your costs. Just you need to make sure that it is reliable and not to spend too much on repairs.
Consider the scenario that you are not having a smartphone or not familiar with your service area’s layout; then, you need to purchase a vehicle that possesses a GPS system.
And if we talk about the equipment, then rubbish removal is one of the tedious and dirty jobs that need more physical work. The cleaners need to wear durable work clothes, hand gloves, and most importantly, loose-fitting trousers for such junk removal jobs.
Step 6: Acquire a Business License and Business Insurance
Now it’s time to perform some legal operations like applying for business licensing and insurance requirements for your safety.
First of all, you need to register your business according to government rules and regulations following the essential guidelines related to waste carriers. To get complete details about the business requirements, a business owner needs to contact the local chamber of 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 staff in your organization, it becomes mandatory to take an employer identification number (EIN) from the IRS site.
To get started with your business operations, business liability insurance is a must. So, you need to take auto insurance for your business vehicles and even employees’ compensation insurance. Multiple business insurance companies are available from where you can find the best deals for your business.
Remember that the policy you select must cover your van, equipment, and other damage caused to the customer’s product when the removal of junk is in process.
General liability insurance and property insurance are mandatory to cover legal expenses resulting from lawsuits. But if you wish, you can even combine both of these into a business owner’s policy in your small business.
Step 7: Market Your Junk Removal Business
Generally, for marketing strategy on the initial level, you can start with flyers.
You can design the flyers by including the list of services you offer or even hiring an expert designer who works for you. Your flyers must be more attractive and easy to read by your clients.
Once your flyer is ready, you can start distributing it to local areas, offices, and homeowners, to let them know the details about the services you offer. You can even place the flyers on notice boards or utility poles by taking legal permission.
You need to take care of the local laws during the flyers distribution. To enhance the business branding awareness, you can place flyers in local newspapers, social media platforms and even use marketing tools.
Moreover, you can also take a printout of business cards mentioning the short summary of your business. You can then share the phone number cards with your nearby customers.
Step 8: Work For Repeat Business
Finally, 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.
However, one of the essential metrics that you can consider in the 1-800 got junk removal business is how effectively and smoothly you respond to removal service requests. It might take a day or two for a well-defined junk hauling business to clear up a location.
Apply these essential steps to start your junk hauling business and enhance your business growth and productivity to a great extent.
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Things To Consider Before Starting a Junk Removal Business
There are some of the core points that a business owner of a junk removal company need to consider or keep in mind:
- Get rid of extraneous obstacles: First of all, you need to analyze and remove the regulatory obstacles 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 grab more understanding of 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 industry.
- Branding: Having a proper branding of every business service is a must and it should have lower prices as compared to 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.
Typically, it depends on your business requirements and the services you include. So, on average, plan for spending a minimum of $15,000 or more, specifically on startup costs and vehicles. On the vehicle and standard startup costs. The price may increase if you enhance your business growth and productivity.
The junk removal business is considered very profitable because you can initiate with low investment and gradually enhance your business strength by applying practical marketing efforts.
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 right 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 in order to make your junk removal business successful. Even, you need to keep in mind the essential things and tips that are mandatory for your business enhancement to a great extent.