So you’ve thought about starting your own junk removal business, but you’ve no idea where to start. Is it expensive to set up? How difficult is it? Like any new business, it may not be completely straightforward at first, but if you’re ready to take on a challenge your new business could be very lucrative.
People always need junk removal services and want to get rid of anything and everything, from clearing out their attics, moving house, or disposing of broken furniture and other large items. Although it’s a competitive industry, it’s constantly growing so don’t be intimidated by starting from scratch.
If you’re ready to start your new business but are unsure where to start, then make sure you check this handy guide below. We’ll give you tips and advice on how to build a smartly planned and profitable business.
How to Start a Junk Removal Business
Make a Business Plan
Before you do anything, creating a clear, smart business plan is essential. It will give you a good idea of where you’re heading and will help you spot any potential trouble spots that could hinder your progress in setting up your new business.
One of the first things that should be in your business plan, is what vehicle you’ll be using. If you already have a truck then you’re at an advantage. If you don’t, then you’ll have to purchase one for your business. Although you don’t need a brand new van or truck, it will have to be spacious and reliable.
You’ll also need some basic tools and cleaning equipment to get the job done professionally. Think about your sorting location as well. You’ll need an appropriate area that’s easy and convenient to access. Think about your target customers too. Both individual customers and other businesses require junk removal services, so it’s worth advertising for both.
Next, you’ll need to think about your prices. It’s important to get this right because if you charge too much, it’ll be off-putting for potential customers. Charge too little and you’ll be out of pocket. Each visit will depend entirely on what the customer’s needs are. Consider the volume and the weight of the load. Rough estimates can range from $130 to $370.
You’ll need to consider all of your overheads as well. Do you have any employees? Their wages will need to be taken into account. Insurance costs and fees for landfills can add up. Remember to factor in any gas prices and marketing costs as well.
The disposal process could also be profitable for your business, for example selling scrap metal could easily bring in extra money. Once your business grows and you become quicker at disposing loads, you’ll be able to fit in more customers every day, boosting your profits even more. Working out the best routes, training employees to be super-efficient, and increasing your vehicles all help to win more customers.
Naming Your Business
You may think that this will be a super easy job, but coming up with a good name for your business is harder than you think. It needs to be short and snappy, you want to grab the customers attention. Try to choose one that tells the customer straight away what your business is, you don’t want to choose a name that’s vague and make them confused as to what you do.
If you’re a sole trader, you may want to choose a business name rather than operating under your own name, for security and privacy reasons. Before you register your business name, do some research to see if that name is already taken, if it isn’t, it’s advisable to register as soon as possible before someone else snaps it up.
Set Up a Business Bank Account
When you set up your business, it’s essential that you use a separate bank account to protect your personal assets. If you were ever in the unfortunate situation of your business being sued, your valuable assets such as your home or car would be at risk if you mix your personal and business accounts. A separate bank account will also make it easier for you to file taxes and do your accounting.
A separate credit card is also useful for keeping personal and business costs separate. It will also help build a good credit history for your company, which could prove useful if you wanted to invest at some point in the future.
Promote Your Business
Marketing your business is vital for reaching as many customers as possible. A strong marketing strategy will help your brand to stand out from the competition. To succeed in your business, your customers need to know they can trust you. Referrals and word of mouth are invaluable to business’ especially new ones. Ask every customer to give their testimonials for you to pass onto potential new clients.
A good name for your business will be incredibly effective at reeling in new clients. Use a witty, catchy name with a bright colored logo. Consider adding your own slogan as well to instill more trust. Having your business online is also a great way of earning your customers trust.
Consider creating social media pages for your business. A professional looking and functional website is also a great idea. It allows people to get to know you and your company, your values and what products and services you can provide for them.
How To Make Your Business Even More Successful
Arranging pickups and locating the correct disposal sites will be your main tasks when you start your junk removal company. Making sure you’re always punctual will help win your clients’ trust, they don’t want to be kept waiting past their booked appointment time.
It’s vital to be environmentally friendly as well, this is something that’s becoming more and more important to a lot of people nowadays and disposing of things ecologically will help your business to boom.
Being able to communicate with different people in a friendly and professional manner will help you to gain more positive feedback, reviews, and will earn you a great reputation in your area.