How To Start A Junk Removal Business

Become your own boss and escape the daily grind by starting up a junk removal service company. Discover everything you need to know about the basics of setting up this type of business.

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How To Start A Junk Removal Business

If being physically active and doing something a little different each day appeals to you, consider starting up a junk removal service. Not only do you get to set the rules and be your own boss, but you also benefit from the variety the job offers. What's more, you get to fulfill an essential service while making a tidy sum and working with your hands.   

Are you ready to start your junk removal business? CraftJack can help.  Sign up today to start receiving junk removal leads in your area.

Junk Removal Service Skills & Experience 

You don't need a university degree or even a diploma to start a junk removal service. However, there are some essential specialty skills and experience that will help your company become a thriving success:

  • Management experience: As an entrepreneur, you're expected to be a jack-of-all-trades with proficiencies in a variety of areas. In particular, management experience will hold you in good stead so you know how to hire, train, and manage a team. What's more, you'll have a better understanding of financial targets and accounting, which are essential for any successful business.
  • Knowledge of local waste disposal regulations: While you can learn about local regulations, this knowledge is nonnegotiable. Waste disposal is a highly regulated industry, so it's vital you know the appropriate disposal methods and locations.
  • Customer experience: No matter what type of business you run, customer service is at the heart of everything you do. Being able to charm people is crucial for selling and managing expectations, and social skills are also important when it comes to interacting with clients and suppliers. 
  • A keen eye for hazards: If you're working with large, heavy items as a business owner, health and safety should be a key focus. Situational awareness and an eye for detail will help you with risk assessment and keeping yourself and your team safe. 
  • Endurance and physical strength: Anyone who wants to get into junk removal should enjoy working with their hands and get a sense of satisfaction from a hard day's labor. Endurance and physical strength are therefore essential for you and your workforce. 
  • Lifting techniques: Injuries in the workplace could cost your entire business, so be sure to invest in proper training for lifting and practicing safe methods yourself to prevent harm.

Industry Trends

Waste and junk are evolving industries, with new, environmentally friendly methods taking priority over more traditional methods. You'll need to stay on top of industry trends to tweak your service list so you're offering in-demand junk removal services.   

With a rising population, an increasing amount of waste is guaranteed, so the industry isn't showing any signs of contracting. More electronics and consumer products are being produced than ever before, and more people in the world are buying them, so you're looking at setting up a company with the potential to make a ton of cash.  

Target Audience

Before you start building a website and trying to get clients, you need to have a clear picture of who you're targeting. You might opt to simply market yourself to renters and homeowners who need to get their junk cleared out. Or, you might choose to work with commercial industries, construction companies, or other large-scale markets. 

Alternatively, you can get more focused and work with specific types of junk removal, such as old appliances or recyclable metals. Once you've worked out what you specialize in, you can home in on your target audience.

How To Start A Junk Removal Business

With an idea of your target audience and a clear understanding of the junk removal industry, you're ready to get into the trenches. Below is an eight-step guide on how to start a junk removal service.

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Step 1: Create A Business Plan

The first and most important step in setting up your junk removal service is creating your business plan. This acts as the blueprint for your company and helps you solve crucial problems before you start working with clients. 

First off, think about how junk removal companies make money. Volume is everything, so you'll need a truck with plenty of space and a strategy for collecting as much as possible in one day. Expenses such as transport and fees for heavy or dangerous items should also be taken into consideration.

Next, think about how much you're going to charge customers for your services so you're profitable but still deliver value for money. Remember you also have overheads to take care of, such as wages, insurance, disposal costs, fuel, and office expenses. You might even be able to make additional profits by getting tax deductions for donations or selling scrap metal.

Now that you've got a viable plan in place, it's time to create a name and logo and start the process of creating a brand. Keep it simple, unique, and catchy, optimizing it for a domain name and social media handle.      

Step 2: Form An Entity

A business entity is the structure under which your company operates, and the one you choose can have a major impact on your personal and professional standing. The four main options you can choose from are sole proprietorship, partnership, corporation, and LLC. 

If you decide to set up alone, you might consider using a separate name to keep your business and personal accounts separate. Each business entity has pros and cons, so you should research them thoroughly before making a final choice.

Step 3: Select A Location

Junk removal companies are great because you don't require a physical location to operate, and a location is often one of the most expensive overheads for a business.

While it's great to start out working from home if you only have a single location, you might consider investing in a garage or commercial property to house your fleet and train your team. The cost of renting varies significantly depending on size, type, and where it's located. 

Step 4: Junk Removal Business License

As a junk removal entrepreneur, licensing and permits are vital. Waste disposal laws and licensing vary between states, so you'll need to conduct plenty of research to make sure you're covered. This is particularly urgent if you're considering working with potentially dangerous materials such as oil, chemicals, and paint. 

Remember that permits and licenses are only half the battle with regard to health and safety compliance. If you're working with hazardous materials, you'll need to take time and spend money on employee training to prevent accidents and keep everyone safe. It's possible to avoid working with hazardous materials, which could be cheaper and less risky.

In some states, you'll need to secure paperwork such as an occupancy permit and an employer identification number, depending on the size and scope of your junk removal service.   

Step 5: Marketing

Marketing is an essential aspect of your junk removal business because it's your way of letting your target audience know you're offering a service that can solve their problems.

You'll need to come up with short-term and long-term marketing strategies, including a referral scheme, getting listed in business directories, establishing an online presence, and partnering with other business owners.

The cost of marketing is ongoing, but remember that you're spending money to make more money. Social media marketing and the internet are exceptional low-cost resources that you can tap into to find leads and convert them to customers.

Step 6: Phone System & Website

With a marketing plan and brand identity in place, including business name, logo, color scheme, and fonts, you're ready to set up a website and social media profiles. Before you reach for the phone to hire a digital marketing agency or individual, look into the options for website building.

You no longer need to know how to code or do anything complicated on a computer to set up a website. Some businesses operate using social media alone, but this is an oversight. Many consumers are less likely to trust a business that doesn't have its own dedicated website.  

Step 7: Get Insured

If you want to avoid legal struggles and protect yourself against losses in case something goes wrong, insurance is vital. For full coverage, a junk removal service generally requires at least four types of insurance:

  • Workmen's compensation insurance
  • Commercial auto insurance
  • Commercial property insurance 
  •  General liability insurance

Step 8: Hire Employees

In general, junk removal companies operate with at least two people due to the strenuous nature of the work. Some states have laws in place to protect health and safety, so you won't be able to work on heavy jobs alone. Salaries are relatively low, but employees are still one of the biggest costs associated with setting up.

Additional insurance, paid time off, and training are extra expenses associated with having employees. However, with the right team of hard-working, dedicated staff, you can make a good impression on all customers and get work done quickly and efficiently.

Junk Removal Service Costs 

When you start out, your vehicle will be the biggest expense. Your budget determines how big you can go, but keep in mind that a bigger truck means more money. Other overheads might include:

  • Tools
  • Safety equipment
  • Vehicle signage
  • Uniforms
  •  Office space

Setting up a junk removal company is an exciting step to take in an industry with ever-increasing demand. Tap into this booming industry and create a legacy for yourself by becoming a successful entrepreneur.