Have you ever heard of the junk-hauling company, 1-800-GOT-JUNK?
Its founder, fifty-something Brian Scudamore, was a high-school dropout looking to finance his future college education. One day, he decided to try his luck at junk removal, putting his life savings into a Ford truck and some fliers. Years later, his junk removal business became a $300 million establishment that operates in 160 locations across three countries.
Needless to say, the initial costs and time investments to starting a junk removal company are minimal, and the potential for success and profits is high. If you’re looking for a side gig or even a full-time gig, removing junk might be just the thing for you. It’s simple, straightforward, and lucrative—if you do it right.
Keep reading as we highlight some of the steps for getting started.
First, Make Your Business Plan
Before any small business becomes a large business, it needs one major piece of the puzzle: a business plan.
This is where you do all your research and development. Your plan should have some of the following information fleshed out with numbers to back it up:
- An executive summary that describes your mission, service, workforce, and location
- A description that goes into detail about who you’ll serve (for example: residential, commercial, industrial)
- A market analysis that studies your competition, the current shortcomings in your community (and how you’ll solve them), and more overarching trends
- How your team will be structured and organized
- Your marketing plan
- Any funding requirements, plus how you plan to get them
A business plan is a fantastic resource for you to consult in the beginning and middle stages of establishing and growing a business. Similarly, you can show this business plan to any potential investors, if need be.
Second, Buy Your Junk Removal Vehicle(s)
In the story we mentioned earlier, Brian Scudamore bought a Ford truck and little else, which turned him into a household name.
You’ll also need to scour page after page of the internet or local newspaper and get your business ready to perform with a trash-hauling vehicle—or two. Consider the various options for large-load-capacity vehicles while also understanding what you can afford at this preliminary stage.
Once you’ve got your fleet, it’s time to buy business auto insurance. Ensure that any employee who drives your car is licensed and insured, yourself included. Make sure to receive multiple quotes, finding yourself the most affordable deal with the best coverage.
Next, Obtain Licensing as Directed in Your County
Each state has different terms and requirements when it comes to licensing junk removal companies. Some might require you to have waste removal permits, while others need a license for hauling large amounts of junk.
Be sure to speak with your local waste management branch to obtain the correct licenses and permits. This step should be taken before you conduct any business.
Finally, It’s Time to Advertise Your Junk Removal Business
And there you have it!
You now understand how to start a junk removal business. As with any business, you’ll need to market your services. Once you’ve taken the above steps, you can begin advertising to the locals in your area.
Good luck with your endeavor! For more business or financial advice, please keep scrolling our page.