Do you think you have found the perfect business idea? If yes, and you are looking for some professional guidance, you’ve reached the right place. Here at TradeFlock, we strive to help entrepreneurs with easy DIY business guides about finances, management, and leadership.
In today’s post, we are going to elaborate on how to start a junk removal business. While starting a junk removal business seems easy-going, you’ll have to understand that it goes beyond general business planning, purchasing trucks, and business registration. We have curated this step-by-step guide to help you understand the entire process and start a business at ease.
Before moving ahead, let’s gauge through the recent stats of the junk removal industry.
- The junk removal industry includes junk packing, halting, moving, and donating sometimes.
- According to the 2019 U.S. Bureau Of Labor Statistics, the junk removal industry generates $10 billion yearly.
- The average junk removal cost is $350.
- The worldwide waste management industry is projected to value at $2 trillion by 2025.
- In 2010, the junk removal industrys’ total revenue was valued at $3.8 billion, which grew by 1.7, reaching $49 billion in 2018.
These statistics are tempting and inspiring, but there is another side of this temptation too. Let’s have a look at a few other stats about the junk removal industry.
- There are over 7,000 junk removal companies operating across 14,000 locations in the United States.
- Due to high competition, many junk removal companies have witnessed a huge decline in their revenue.
- As per reports, almost 28% of junk removal companies shut during the two years of being open, 35% closed the doors within five years, and 7% during the ten years of their struggle.
Only 20% of companies managed to survive in this ever-emerging junk removal industry with a robust business plan. If you have a pickup truck and a few hard-working people, here is how to start a junk removal business.
Do Market Research In Your Area
You are more likely to get inspired by your local junk removal company. While you are looking for how to start a junk removal business, your inspiration is set to become your competitor.
If you want to start with a foolproof strategy before stepping into the actual world, market research is a must, and competitor analysis is a cherry on the top. But, how would you define your competitors with just a thought?
It’s simple, the base of your junk removal startup must be your city. So, the best way to understand the market process is to follow a local independent junk removal business, talk to them, understand their pricing and revenue generation techniques.
Consider this task as a research project. These Project Management Tips can better pair with your efforts.
Check Out Federal & Local Laws
America’s 70% of toxic waste is caused by electronic waste, and it accounts for just 2% of the total waste in the country.
The U.S. Government is concerned about the safety of its people and the cleanliness of the country, thereby having strict junk removal & disposal regulations.
While you are looking for how to start a junk removal business, you should consider this in mind. There may be local, state, and federal laws to ensure lawful junk removal & disposal, especially hazardous waste — and penalties might be applied if the trash is not carried out legally.
Get Into A Junk Removal Job
If you want to strengthen your market research, one of the best ways to do this is to start working with a junk removal company. You can join a junk removal company to better understand the process and the junk removal industry functions. This is one of the easiest ways to learn how to start a junk removal business.
Obtain Junk Removal Permits And Licenses
American consumers rely on licenses rather than experience. Thus, failure to obtain the required federal and state junk removal license might pose a serious threat to your business or may result in shut down.
To get a junk removal license in the USA;
- Visit your city, town, or county’s clerk office
- Seek help from local associations accredited by the US Small Business Association
Plan Your Business
Formulating a winning business strategy is an essential step in learning how to start a junk removal business. While it might take most of your valuable time, we have researched for you.
Let’s start with the costs involved.
What are the ongoing expenses in the junk removal business?
At the lowest, you can start a junk removal business with these resources;
- A pickup truck or a large van
- Basic tools and equipment
- Storage location
Whom To Target In A Junk Removal Business?
Businesses and individuals both are frequent with junk removal services. Real estate and storage facilities are often called junk removal companies.
How Junk Removal Business Makes Profit?
When preparing a business blueprint, you have to understand how the industry functions and generates revenue.
Most straightforwardly, a junk removal business involves halting, moving, and disposing of heavy garbage. The cost of junk removal services might vary depending on the size of the property and the amount of work to be done, based on which the per hour cost will be calculated.
There are a few other questions that you should ask while preparing your business plan.
- How much should I charge customers?
- How much should you pay your employees?
- How to make your business more profitable?
These things will help you plan better, but do you know what would be the name of your business? If you have not decided on your firm name yet, here are some tips for naming your startup. But, make sure you are putting all your efforts into preparing your business plan because that’s how to start a junk removal business successfully.
Market Your Business
When it comes to marketing your junk removal business, you have limited options. If you wonder how to start a junk removal business, you should keep the marketing part aside. Although starting with craigslist can help you reach your local audience, this is not enough.
Marketing is important, not just for lead generation but also for brand building. While you can follow these tips;
- Paint your trucks
- Focus on customer services
- Train your crew to pitch
- Try deals & discounts
- Start referral programs
You should also invest in websites and online ads to widen your reach. Moreover, with over 60% of the US population using social media, you cannot miss advertising your business on Facebook, Instagram, and other platforms. Moreover, if you are looking for long-term investment in marketing, we would suggest hiring a professional digital marketing company that offers full-service online marketing, including SEO.
Hopefully, this guide has cleared all your doubts about how to start a junk removal business; if you have more questions, please let us know in the comments below.