HOW TO START JUNK REMOVAL SERVICE BUSINESS
Starting a garbage disposal business seems like a simple idea for a business; everyone needs to get rid of the garbage and are willing to pay for it. But. as usual, not everything is so simple. We suggest you familiarize yourself with this and again weigh the pros and cons.
The main task is not to organize the service itself, everything is simple, but to elevate your services to the pinnacle of success. Management and only management will help to bring you significant income in the future. An important factor will be the reputation, and this is what you need to take care of with the receipt of the first orders. This is how you can get a tight schedule of orders, increase recognition, and distinguish you from competitors.
Next, we will step by step consider the key aspects.
Start with an analysis of competitors, highlight the 10 most successful ones, study from sites and social networks, and note what you personally like. Write down these benefits. Find and read customer reviews on these service providers. Also, write down the positive points that people note and the negative ones. The list of competitors should include not only individual companies but also franchises of major players in the garbage collection market, for example, 1-800-GOT-JUNK?
The next task will be to study the issue of recycling and disposal of garbage. To calculate the potential profit, you must understand your expenses, including overhead, for the proper disposal or recycling of garbage. Call your local recycling company and find out the prices for waste collection and disposal.
You will need to know the prices of various types of garbage. Some will go directly to the landfill, while others can be sold to scrap dealers, donated to charities, or for other purposes, which will affect your export costs. At the very beginning, you can focus on removing only household or commercial waste
Franchise or your own business.
Franchises include off-the-shelf business models, advertising, and branding. They will also help you purchase your own trucks or give you the opportunity to rent those already included with the brand. Buying a franchise will require a significant amount. The total cost of opening a franchise with one of the enterprises can vary from 40,000 to 200,000 dollars. Find out the conditions of purchase from several operators, summarize the costs of disposal and operating expenses (taxes, salaries, motor fuel, insurance, licenses, work clothing, dry cleaning and car wash) to understand the approximate profit.
Licenses and certification.
Register your company in accordance with the requirements of your local government and guidelines for waste carriers. You may need to contact your local chamber of commerce or SBA to find out more about these requirements, as they vary from county to state. There may also be special permits or licenses required for the transport of scrap metal or just garbage.
- For example, in some localities, it is required that someone carrying large quantities of materials as a commercial activity has a license to do so. Failure to obtain a license before transport may result in fines or your arrest.
- Other places may have special permits for garbage collection. For example, in New York, it is required that garbage carriers register in the city and apply for a special license.
- Try talking to other local business owners to see if they can help you navigate your city’s requirements.
- You will also need an Employer Identification Number (EIN) from the IRS if you plan to have employees. Getting this number is free on the IRS website.
Buy the appropriate insurance.
Be sure to get business liability insurance before you get started. You will also need car insurance for your vehicle and employee insurance if you have employees. Check the offers of several insurance companies and select the best offer. The insurance policy should cover the van, equipment and any damage caused to the client’s property when removing the garbage.
- At a minimum, you will need liability insurance and property insurance. They cover legal costs arising from lawsuits, for example, if one of your trucks damaged property of the client and, consequently, damage or loss of property of the enterprise. As a small business, you can combine both of these rules into a business owner’s policy.
- You may also want (E&O) insurance to cover situations such as breach of contract with your regular customers. This may be due to the fact that you could not collect garbage in accordance with the agreement with the client.
- Finally, employee insurance coverage covers your business if an employee has sued you. For example, if an employee is injured at work, your employees’ insurance may cover their medical bills.
- Large insurers can offer you a full package of services specializing in the garbage disposal industry, which contains all these types of insurance.
There may be local, state, and federal laws applicable to the legal disposal of garbage, especially hazardous waste, and fines may apply if the disposal is not legal. For example, in Oregon, you will need a transport certificate for transporting scrap metal.
A business plan is a document that summarizes the operational and financial goals of a business and contains detailed plans and budgets showing how these goals should be implemented. Since the business plan contains financial forecasts and a marketing plan, this is a useful tool:
- Your pricing is your business. You can charge for weight, for work, for the used space of your truck. Remember, this is just your initial plan; You can always adjust prices later when you become more experienced.
- Think about whether you will use employees, contract work, or both. No matter what you choose, you need to carefully understand the laws that determine the nature of employees and the laws that affect their relationship with the company.
Funding should cover the cost of your truck, equipment, marketing efforts and some working capital for your first few jobs. You can cover these costs with a loan from a bank or credit union or borrow money from a friend or family member. The Small Business Administration (SBA) also guarantees business loans at banks and can help you get the money you need.
Buy a used van or truck that you will use to transport your client’s garbage to recycling or waste disposal facilities. Prefer heavy payloads and good fuel economy. No additional options, such as noise insulation or leather seats, are needed. Just make sure it works reliably. You may also need a navigator, for this the “Everis Pro” specialist mobile application is perfect for where you can always see the path from the location to the next order and conveniently build your logistics to save on car fuel.
Tool for receiving orders.
The specifics of the waste collection business is such that you will not have the opportunity to sit in the office and receive customer calls. Instead, you will have to make and receive business calls while you work. The simplest solution is a Bluetooth headset or similar hands-free equipment, but rather it is suitable for receiving short calls with partners and clarifying details of existing orders. It is not very convenient to accept applications from clients during work, the noise of the car and busy hands will not help you quickly accept an order, especially with a new client.
For this, our software is perfect for you, your customers can download a mobile application that will be connected to your personal account and send applications without unnecessary calls. And you can easily take at any time and process at any convenient time. You just need a compact laptop and believe me, this is the perfect solution to your routine tasks!
Special work clothes.
Garbage removal is dirty and demanding work, for which you will need durable work clothes and gloves. Loose pants are suitable for both home and outdoor use. Other tools you need to buy are shovels and rakes. More reliable protection may be needed, such as dust masks and safety glasses when handling more hazardous debris.
Business cards and flyers, they should be easy to read, include a brief description and contact details of your company. Hand out your flyers to everyone in your area, businesses and homeowners who may be interested in your services. In addition, place them on auxiliary posts and bulletin boards. Make sure your flyers are distributed in accordance with local laws. Also, consider advertising in your local newspaper to increase your brand awareness.
Your initial advertising plan is likely to be low budget, so make it work in any way convenient for you. For example, try to park your car in an easily visible place by calling potential customers or placing a small ad in a local magazine or newspaper. Try Craigslist.
Good luck in your new business!
This article was written by service experts. “EVERIS” is a platform for planning work orders and managing specialists and clients. Thousands of local service companies use the platform to streamline their workflow, eliminate losses, and increase revenue.
Open the free EVERIS online demo for your business to find out how you can improve your performance.