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How to Start a Junk Removal Business

how to start a junk removal business

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In the US, the average waste generated by one person is 4.9 pounds a day, which is a lot. It’s not great for the environment, but unfortunately, not everything can be recycled.

The next best thing is disposing of waste properly, and this is where you come in. Considering that waste is inevitable, it’s a lucrative field, as long as you play your cards right.

You might not know the first thing about junk removal services, but don’t let that dishearten you. Here, we’ll discuss how to start a junk removal business so you can see just how easy it is.

Why Start a Junk Removal Business?

A junk removal business is not only profitable but also fulfilling. With more individuals and businesses seeking help in managing their waste, it’s an industry that provides essential services. Here are a few reasons why starting a junk removal business could be a smart decision:

  1. Steady Demand: With the constant generation of waste, there’s always a need for junk removal services. From moving households to businesses clearing out old inventory, the opportunities are endless.
  2. Low Barrier to Entry: Unlike other industries, the startup costs for a junk removal business are relatively low. With a truck and basic tools, you can get started quickly.
  3. Flexibility: Junk removal services are versatile. You can scale the business as needed and offer a range of services, including recycling, donating items, or handling hazardous materials.
  4. Eco-friendly Impact: If you incorporate sustainable practices into your business, like recycling or donating items, you can appeal to eco-conscious clients and make a positive environmental impact.
  5. Social Media Trends: One emerging trend is the deep-cleaning of hoarder houses, which has gained popularity on platforms like TikTok and YouTube. These viral videos show the transformation of cluttered homes, demonstrating the powerful impact of junk removal.

Do Some Research

The smartest thing to do when going into any sort of business is research. Without understanding the local market, you might miss the mark, which can drain your bank account fast. Not to mention, you’ll waste precious time.

So the first thing you should do is look into the demand for junk removal services in your area. Typically, urban and suburban areas have higher needs for this service.

If it seems like it’s promising, then evaluate your competitors who have already established themselves. Understand their services, pricing, and marketing strategies, and think about what you can do better. By filling gaps, you can get an edge in the industry, even as a newcomer.

You should also figure out what your target market will be; a narrower focus means you’ll be able to serve your customers better. Some potential clients include:

  • Residents
  • Businesses
  • Real estate agents
  • Property managers
  • Construction companies

Write a Business Plan

When starting a junk removal business, you’ll need a business plan to give you direction. You can also use it to check how you’re doing and make changes accordingly. And you can present it to investors and lenders too, especially if you require additional funding.

The main thing you should do is define your services. Here are some types of junk you can remove:

  • Household items
  • Yard waste
  • Construction debris
  • Appliances

You can consider offering additional services like recycling, donation pick-ups, or specialized removals. While these may not necessarily be your bread and butter, they can certainly add to your revenue. Plus, they can set you apart from your competition.

Next, decide on your business model. You can either start from scratch or buy a junk removal franchise.

From the above answer, you can determine your pricing. Other factors to think about here include volume, time, distance, and labor.

Finally, perform financial projections. Estimate your startup costs, recurring expenses, and profit margins. Don’t forget to factor in fuel, labor, insurance, and equipment.

Register Your Business

Already got a good name in mind? Then choose a business structure that’s ideal for you. Options include a sole proprietorship, limited liability company (LLC), or corporation, with many people landing on an LLC for its benefits.

If that sounds good to you, or you want to create a different type of business, we can help in any case. We have a free business registration service you can use, as well as other affordable services, like employer identification number (EIN) application and banking resolution.

After registering your company, you should then check your local government’s requirements for junk removal businesses. For example, you may need permits for waste disposal and recycling, so do everything in your power to make sure that you’re compliant.

Don’t forget to establish local relationships too. Get to know the local landfills, recycling centers, and donation centers so you can manage where you’ll offload junk.

Buy or Lease Equipment

A major part of your junk removal business startup cost will be your vehicle. Obviously, you’ll need one; otherwise, you won’t be able to haul away junk.

Considering that it’ll be the star of the show, your vehicle shouldn’t be the cheapest thing you can find (unless that’s all you can afford). The large truck or trailer you buy will be essential for hauling junk, so think of it as an investment. You can start with a vehicle that matches your business size and scale up as you grow.

Other tools you might want are:

  • Gloves
  • Safety gear
  • Hand trucks
  • Other moving equipment

Create a Brand

If you haven’t already thought up a name for your company, do it now. Make sure it’s catchy and memorable so people instantly think of you when they need to eliminate junk. Creating a professional logo that displays your brand personality and values helps too.

Now that you have your branding down, you can build a website. It should be user-friendly and your services, pricing, and contact information should be easy to find as well. If possible, include testimonials from early clients to build a reputation.

Market Your Services

Raising awareness about your new business can mean all the difference between success and failure. So get the word out!

List your company on platforms like Google My Business, Yelp, and local directories. You can also use social media to promote your services and connect with your audience.

You should network too. Build relationships with realtors, property managers, contractors, and businesses, as they can give you ongoing referrals.

Leverage the Hoarding Cleanouts Trend on Social Media

A growing trend on social media is the removal of junk from the homes of hoarders. These extreme clean-ups have gained millions of views, as audiences are fascinated by the dramatic transformation. If you’re willing to take on these challenging projects, you can leverage this trend to promote your services.

Posting videos of your cleanouts, before-and-after photos, and time-lapse clips on platforms like TikTok and Instagram can help you gain visibility while positioning your business as one that can handle even the toughest jobs.

Handle Disposal and Recycling

Many customers prefer eco-friendly businesses, so prove that you’re environmentally conscious and responsible. Create a plan for recycling, donating reusable items, and proper disposal.

In addition, work with local charities. You can donate furniture, appliances, and other reusable things, which is a win-win situation. Not only are you doing good, but you may also get tax benefits.

Know How to Start a Junk Removal Business

Knowing how to start a junk removal business can be a huge relief, especially if you aren’t familiar with the industry. As you can see, it doesn’t take much to jump in, besides sourcing equipment and applying for the right licenses and permits.

So if junk removal is lacking in your local area, it’s your time to shine. Fill that niche and provide your community with the services they need.
Sign up with Business Anywhere now to get your junk removal business started. Just pay the state fees, and we’ll take care of everything else.

About Author

Picture of Rick Mak

Rick Mak

Rick Mak is a 30-year veteran businessman, having started, bought, and/or sold more than a dozen companies. He has bachelor's degrees in International Business, Finance, and Economics, with masters in both Entrepreneurship and International Law. He has spoken at hundreds of conferences around the world during his career on entrepreneurship, international tax law, asset protection, and company structure. Business Anywhere Editorial Guidelines

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