removal company business plan

Junk Removal Business Plan Template

Written by Dave Lavinsky

Junk Removal Business Plan

You’ve come to the right place to create your Junk Removal business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Junk Removal businesses.

Below is a template to help you create each section of your Junk Removal business plan.

Executive Summary

Business overview.

Taking Out the Trash is a startup junk removal business located in Atlanta, Georgia. The company is founded by Jake Ambrose and Jerry DuPaine. Jake was formerly the operations manager of a junk removal service for ten years in Buford, Georgia, where he trained staff and ran the company operations for junk removal throughout the region.

Jerry was formerly the owner of a storage pod business for fifteen years and has an extensive background in the transport, hauling and storage businesses, including junk removal.

Jake and Jerry plan on providing junk removal services for the city of Atlanta and the surrounding region using a proprietary digital platform and customer-connected app system to provide service to any potential customer within one hour of the request. This “on-time, every time” experience will ensure customers can make a call for junk removal when they need it, rather than waiting for hours or even days to secure the services of a junk removal company.

Product Offering

The following are the services that Taking Out the Trash will provide:

• On-demand junk removal services (one-hour response time)
• Weekly or monthly junk removal service
• Commercial business junk removal
• Foreclosure/abandoned home junk removal
• Hazardous materials and liquid removal with advance preparation

Customer Focus

Taking Out the Trash will target all current and new property owners in Atlanta, Georgia and the surrounding region. Taking Out the Trash will also target businesses while closing, commercial properties, banks and foreclosure companies.

Management Team

Taking Out the Trash will be owned and operated by Jake Ambrose and Jerry DuPaine. Jake Ambrose was formerly the operations manager of a junk removal service for ten years in Buford, Georgia, where he trained staff and ran the company operations for junk removal throughout the region. Because of his extensive contacts within the junk removal industry, Jake has already secured the contracts for service with several commercial companies.

Jerry was formerly the owner of a storage pod business for fifteen years and has a thorough background in the transport, hauling and storage businesses, including junk removal. He has led twenty employees, truck drivers and staff members through industry evolutions and maintained a long-term growth strategy that garnered a generous return when Jerry sold the company two years ago.

Success Factors

Taking Out the Trash will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly qualified team at Taking Out the Trash
• Comprehensive menu of services, including junk removal for individuals and companies
• Patented digital platform and app that customers can utilize for 1-hour pickup orders
• Unique process for trash and junk hauling
• City contract with the Atlanta Landfill & Environment Improvement Agency
• Taking Out the Trash offers the best pricing in Atlanta. Their pricing structure is the most cost effective and their services are the most efficient in the entire region when compared to the competition.

Financial Highlights

Taking Out the Trash is seeking $200,000 in debt financing to launch the trash removal company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:

• Office space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for Taking Out the Trash.

Company Overview

Who is “taking out the trash”.

Taking Out the Trash is a newly established full-service junk removal business in Atlanta, Georgia. Taking Out the Trash will be the most reliable, cost-effective, and efficient choice for residential and commercial businesses in Atlanta and the surrounding communities. Taking Out the Trash will provide a comprehensive menu of hauling and junk removal services for any customer to utilize. Their full-service approach includes a proprietary digital platform and customer app to enable one-hour scheduling for junk removal.

  Taking Out the Trash will be able to serve a wide variety of customers with trash and junk removal services. The team of professionals are highly qualified and experienced in hauling and transport of oversized items, as well as hauling hazardous liquids and other items not typically allowed by haulers. Taking Out the Trash removes all headaches and issues of the junk removal process and ensures all issues are taken care of expeditiously while delivering the best customer service.

Taking Out the Trash History

Since incorporation, Taking Out the Trash has achieved the following milestones:

• Registered Taking Out the Trash, LLC to transact business in the state of Georgia.
• Has a contract in place at one of the office buildings where the company will open an office of 10,000 square feet.
• Reached out to numerous contacts, including property owners, businesses, banks, foreclosure companies, landscaping companies and other junk or trash businesses that need transport and disposal.
• Began recruiting a staff of office personnel and drivers to work at Taking Out the Trash.

Taking Out the Trash Services

The following will be the services Taking Out the Trash will provide:

Industry Analysis

The junk removal industry is expected to grow over the next five years to over $18 billion. As the population of Atlanta and the surrounding communities continue to grow, the growth of the junk removal will track with it. New home starts in outlying areas will require hauling of tree limbs, brush, and vine undergrowth in currently unpopulated areas. Industry growth will also be driven by the increasing number of consumers who will want to renovate or redesign their own properties, landscapes, and interior designs. Costs will likely be reduced as economic factors become more positive, reducing the pricing of fuel.

Customer Analysis

Demographic profile of target market.

Taking Out the Trash will target those individuals and companies needing trash or junk removal services in Atlanta, Georgia and the surrounding regions. They will target companies in foreclosure or going out of business. They will target corporations or businesses that are moving and desire to rid themselves of old furnishings.

Customer Segmentation

Taking Out the Trash will primarily target the following customer profiles:

• Individuals purchasing junk removal services
• Commercial enterprises purchasing junk removal services
• Individuals or companies requiring hazardous waste removal
• App-connected customers or clients who need one-hour service
• Foreclosure companies performing a residential or business cleanout
• Banks or other financial institutions holding deeds or mortgages

Competitive Analysis

Direct and indirect competitors.

Taking Out the Trash will face competition from other companies with similar business profiles. A description of each competitor company is below.

Atlanta Combined Services (ACS)

ACS is the largest garbage service company in the Atlanta region, with over 5 million customers on weekly pickup routes. A fleet of service vehicles provide trash and garbage pickup, maintain contracts, secure payments and ensure continued service for the city’s residents. This is a direct competitor to Taking Out the Trash, as services can be obtained from ACS for junk removal with a scheduled two-week waiting period.

The company was started in 1954 as a private partnership and went public in 1987. Since that time, it has continued to grow from 271 employees to 689 employees and 44 executive staff members occupying an eight-story corporate building on the outskirts of Atlanta. While ACS provides service in most of the same categories as Taking Out the Trash, hazardous liquids are not accepted by ACS for removal.

Edgy’s Trash Haulers

With a television jingle, titled “We’re Gettin Edgy!” Edgy’s Trash Haulers has become a household name in Atlanta, Georgia. Started by Edward and Tina Combes in 1997, Edgy’s Trash Haulers is a direct competitor to Taking Out the Trash. The company provides trash and junk hauling for the Atlanta region, including the city proper, and has 15 trash and junk trucks that travel extensively throughout the city and regional areas, picking up removal items. The company is now run by the two sons of the Combes, Tim and Tracker Combes. They have instituted a six-day work week for their employees, albeit the hours each day are shortened to 6 hours maximum. This schedule spreads services evenly throughout the day, while providing weekend hauling services to compete with their direct competitors.

Edgy’s Trash Haulers hires formerly incarcerated personnel to drive the trucks and, as drivers continue with on-time service records, they can apply for and receive management positions as they work their way through the corporate structure of the company. This policy has resulted in an increasing number of applicants for open jobs at Edgy’s Trash Haulers.

Buford Hauling

Based in Buford, Georgia, this junk removal company has a limited scope of business potential; however, the residents and businesses within their established boundaries are loyal customers, returning again and again for junk or trash removal services. Buford Hauling is a direct competitor within a limited capacity, as the company does not haul hazardous liquids and has a small service area geographically. Buford Hauling is a family business, owned by George and Georgina Crawford, who started the company in 1944. In the post-war era, several buildings had to be torn down or renovated; the hauling business was booming at that time. Over the years, the scope of business has kept the company from the long-term growth strategy desired and it has been rumored during this past year that the sale of the company may be near.

Competitive Advantage

Taking Out the Trash will be able to offer the following advantages over their competition:

• Friendly, knowledgeable, and highly qualified teams for junk removal

Marketing Plan

Brand & value proposition.

Taking Out the Trash will offer the unique value proposition to its clientele:

• Highly-qualified team of skilled employees who are able to provide reliable, secure junk and trash removal.
• Proprietary digital platform and customer app that offers pickup within a one-hour window of contact.
• Provision for hauling of hazardous materials and liquids, with the proviso that proper preparation has taken place prior to hauling.
• Unbeatable pricing to its customers, with special discounts for returning customers.

Promotions Strategy

The promotions strategy for Taking Out the Trash is as follows:

Word of Mouth/Referrals

The Taking Out the Trash owners have built up an extensive list of contacts over the years by providing exceptional service to their customers. Jake Ambrose, a co-owner, was formerly the operations manager of a junk removal service. He has secured contracts with several commercial companies for Taking Out the Trash. Jerry DuPaine, a co-owner, has been an owner of a storage pod business for fifteen years and has a list of customers that is equally long, each of whom is ready to contract with the new business.

Professional Associations and Networking

Jake and Jerry belong to many of the same organizations, including National Hauling & Removal Association. They also belong to the community service groups that include potential clients for the new business. As such, Jake and Jerry will begin networking and offering services to everyone connected in some fashion to the junk removal business.

Print Advertising

Print advertising in area periodicals and newspaper inserts is vital to secure new customers. Special pricing will be announced before the launch of the startup and will continue for three months. Advertising will include direct mail to Atlanta businesses, foreclosure companies, and other related corporate clients.

Website/SEO Marketing

Taking Out the Trash will fully utilize their corporate website to arrange appointments, secure schedules, and offer reservation service for junk removal. A customer app is offered to bring one-hour service to customer residences or corporate establishments that will be unique to the southern part of the U.S. The website will be well organized, informative, and list all theservices that Taking Out the Trash is able to provide. The website will also list their contact information and list their available services. Taking Out the Trash will embrace SEO marketing tactics so that anytime someone types in the Google or Bing search engine “junk removal company” or “waste removal near me,” Taking Out the Trash will be listed at the top of the search results.

The pricing of Taking Out the Trash will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for Taking Out the Trash. Operation Functions:

• Jake Ambrose will be the Co-owner and President of the company. He will oversee all staff and manage client relations.
• Jerry DuPaine will be the Co-owner and Vice President of the company. He will oversee all operations, including trucking services and drivers.
• Janie Patton will be the Administrative Manager who will manage the office administration, client files, and accounts payable.
• Tommy Hardine will be the Vehicle Maintenance Manager who will be responsible for all safety and servicing of vehicles.

Milestones:

Taking Out the Trash will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to lease office space
• 5/15/202X – Finalize personnel employment contracts for Taking Out the Trash
• 6/1/202X – Finalize contracts for new corporate clients of Taking Out the Trash
• 6/15/202X – Final beta testing of digital platform and customer app
• 6/22/202X – Begin moving into Taking Out the Trash office
• 7/1/202X – Taking Out the Trash opens for business

Taking Out the Trash will be owned and operated by Jake Ambrose and Jerry DuPaine. Jerry recruited Janie Patton to manage the administration of the office and personnel. He also recruited Tommy Hardine to be the Vehicle Maintenance Manager for the vehicles.

Jake Ambrose was formerly the operations manager of a junk removal service for ten years. He trained staff and ran the company operations for junk removal throughout the region. Jerry was formerly the owner of a storage pod business for fifteen years and has a thorough background in the transport, hauling and storage business, including junk removal.

Janie Patton was the office manager at Jerry’s former company. She will be the Administrative Manager who will oversee the office administration, client files, and accounts payable.

Also recruited by Jerry, Tommy Hardine was formerly the manager of truck repair in a regional prison, who then became a service manager in Jerry’s former business. Tommy will be the Vehicle Maintenance Manager who will be responsible for all safety and servicing of vehicles.

Financial Plan

Key revenue & costs.

The revenue drivers for Taking Out the Trash are the hauling and junk removal fees they will charge to the individual and corporate clients for their services.

The cost drivers will be the overhead costs required in order to staff Taking Out the Trash. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

Taking Out the Trash is seeking $200,000 in debt financing to launch its junk removal business. The funding will be dedicated towards securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Junk Removal Customers Per Month: 386
• Average Fees per Month: $79,900
• Office Lease per Year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, junk removal business plan faqs, what is a junk removal business plan.

A junk removal business plan is a plan to start and/or grow your junk removal business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

What are the Main Types of Junk Removal Businesses? 

There are a number of different kinds of junk removal businesses , some examples include: Municipal waste, Professional junk removal, Recycling plants, and Donation center.

How Do You Get Funding for Your Junk Removal Business Plan?

Junk Removal businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Junk Removal Business?

Starting a junk removal business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Junk Removal Business Plan - The first step in starting a business is to create a detailed junk removal business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your junk removal business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your junk removal business is in compliance with local laws.

3. Register Your Junk Removal Business - Once you have chosen a legal structure, the next step is to register your junk removal business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your junk removal business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Junk Removal Equipment & Supplies - In order to start your junk removal business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your junk removal business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Learn more about how to start a successful junk removal business:

• How to Start a Junk Removal Business

• How to Start a Junk Removal Business

Whenever unwanted belongings cannot be thrown out in the normal trash, a junk removal service can help. People and businesses need help hauling away broken furniture, clearing out an attic full of trash, or even emptying an estate or foreclosure. The junk removal industry is competitive but growing, and you can start from scratch or buy into a franchise. If you’re up for the challenge, owning a junk removal business can be a profitable and rewarding adventure that involves not only hauling heavy garbage but also scouting local donation and recycling solutions.

Learn how to start your own Junk Removal Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a junk removal business by following these 10 steps:

• Plan your Junk Removal Business
• Form your Junk Removal Business into a Legal Entity
• Register your Junk Removal Business for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Junk Removal Business
• Get the Necessary Permits & Licenses for your Junk Removal Business
• Get Junk Removal Business Insurance
• Define your Junk Removal Business Brand
• Create your Junk Removal Business Website
• Set up your Business Phone System

We have put together this simple guide to starting your junk removal business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Junk Removal Business Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your junk removal business?

Business name generator, what are the costs involved in opening a junk removal business.

At a minimum, you can start up a junk removal business with these resources:

• A truck or large van
• Basic tools and cleaning supplies
• Location for sorting

The first vehicle represents the biggest hurdle. You can use your own truck, a new or used vehicle, or a full commercial tractor-trailer. Other options include vehicle decals and logowear to brand your business and project professionalism to customers.

What are the ongoing expenses for a junk removal business?

Who is the target market.

Individuals and businesses are both frequent junk removal customers. Real estate and storage facilities are two industries with a particular need. Residential customers often include empty nesters and retirees looking to declutter.

How does a junk removal business make money?

Pricing typically centers around the volume of garbage removed, measured in cubic feet inside the truck. Other fees might apply to especially heavy items, certain dangerous materials, cleanup, and rush appointments.

For a single junk removal visit, homeowners most often spend between $139 to $373, according to HomeAdvisor. This often covers a load of junk consisting of a few pieces of furniture or appliances, or a small room full of garbage. With pricing based on junk volume, it can be more or less depending on the customer’s needs.

Junk removal business owners need accurate knowledge and data of all overhead, including:

• Employee wages
• Insurance (injury, liability, business auto, and more)
• Landfill fees and other disposal costs
• Fuel costs and auto payments
• Office, marketing, and other expenses

In some cases, the junk removal business can benefit financially during the disposal process, such as by selling scrap metal or receiving tax deductions for donations.

The largest national franchisors offer “no hidden fees” pricing. The crew gives an estimate upon arriving at the site, and the customer decides whether to proceed.

More information about pricing models for junk removal businesses:

• HomeAdvisor.com - How Much Does Junk & Trash Removal Service Cost?
• JunkTrashRemoval.com - Junk Removal Pricing & Cost | How Much to Charge?

How much profit can a junk removal business make?

Each vehicle can average about one typical residential job per hour. Some jobs will take a long time, but those jobs will also bring in more revenue. Many junk removal businesses have a minimum charge of around $125 to make sure that expenses are covered for one hour of work. The size and density of your service area greatly affect driving time, which in turn affects your efficiency.

With enough demand and fast workers, a junk truck can bring in $500 to $1,500 per day, or about $500 for each truckload of junk. Many businesses start with one truck. Investing in a larger fleet greatly affects profitability.

How can you make your business more profitable?

Junk removal businesses can scale easily thanks to branding and fleet size increases. Add trucks with the company logo and employees to drive them, and the owner can scale as much as the market demands.

Completing more jobs in less time is the best and simplest way to maximize profits for your junk removal business. Strategizing your drivers’ routes, training employees to work quickly, and growing the fleet all help with booking more customers each day.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your junk removal business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a junk removal business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Service Agreement

Junk removal businesses should consider requiring clients to sign a service agreement before starting a new project. This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, service level expectations, and intellectual property ownership. Here is an example service agreement.

Recommended: Rocket Lawyer makes it easy to create a professional service agreement for your junk removal business when you sign up for their premium membership. For $39.95 per month, members receive access to hundreds of legal agreements and on call attorneys to get complimentary legal advice.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Junk Removal Business needs and how much it will cost you by reading our guide Business Insurance for Junk Removal Business.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a junk removal business

Customers need to know your name and trust you; therfore, quality branding and referrals are both key to marketing a junk removal business. Funny names and bright colors are popular and effective for direct advertising campaigns. A strong online presence also helps capture more local customers.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

Problem solvers, people persons, and those who like working with their hands can succeed and find joy in running a junk removal business. Running the show involves managing plenty of people and resources while sticking to a tight schedule.

Junk removal businesses operate by appointment, so taking days off can be up to the owner. Night and weekend appointments are not necessary but are often in demand and profitable.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a junk removal business?

Scheduling pickups and finding the right drop-off points are the two major challenges for a junk removal business owner. Customers don’t want to be kept waiting for appointments, so punctuality is crucial. People also expect you to dispose of everything in relatively eco-friendly ways. The actual junk removal simply requires appropriate strength and a fleet of trucks.

What are some skills and experiences that will help you build a successful junk removal business?

Successful junk removal business owners typically exemplify these traits:

• Knowledge of business planning and management, including the ability to assess overhead costs and weigh liability issues while determining a realistic pricing model that can compete in the local market.
• The communication skills to work with a team of junk haulers who will be doing the bulk of the labor, which is sometimes extremely strenuous; the owner-manager needs to train and motivate these employees to provide excellent service and always be reliable.
• Customer service skills are always necessary, as a junk removal business needs to build a strong reputation in the community, earn positive online reviews, and stand out from the crowd.

What is the growth potential for a junk removal business?

Junk removal businesses can easily scale up with more trucks and employees. Franchise owners are generally limited to service areas, so you may need to purchase additional areas. On that note, you could potentially franchise your own junk removal startup in the long run.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

Useful Links

Industry opportunities.

• Junk-King.com - Top Franchise Oppportunity
• JunkLuggersFranchise.com - An Eco-Friendly Franchise Opportunity
• 1800gotjunk.com - Industry Opportunity
• JDogFranchises.com - Industry Trends and Market Conditions
• National Waste & Recycling Association

Real World Examples

• Junk-King.com
• 1800GotJunk.com
• CollegeHunksHaulingJunk.com
• JunkLuggers.com
• JDogJunkRemoval.com

Further Reading

• The Franchise Business of Junk
• How Much Does Junk & Trash Removal Cost?
• Junk Removal Pricing & Cost | How Much to Charge?

Entrepreneur Interviews

Read Interview

Have a Question? Leave a Comment!

How to Start a Junk Removal Business

Starting a junk removal business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful junk removal business.

Importantly, a critical step in starting a junk removal business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start a Junk Removal Business :

• Choose the Name for Your Junk Removal Business
• Develop Your Junk Removal Business Plan
• Choose the Legal Structure for Your Junk Removal Business
• Secure Startup Funding for Your Junk Removal Business (If Needed)
• Secure a Location for Your Business
• Register Your Junk Removal Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Junk Removal Business
• Buy or Lease the Right Junk Removal Business Equipment
• Develop Your Junk Removal Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Junk Removal Business
• Open for Business

1. Choose the Name for Your Junk Removal Business

The first step to starting a junk removal business is to choose your business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your own junk removal business:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your junk removal business.

2. Develop Your Junk Removal Business Plan

One of the most important steps in starting a junk removal business is to develop your junk removal business plan . The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your junk removal business.
• Company Overview – this section tells the reader about the history of your junk removal business and what type of junk removal business you operate. For example, are you a trash hauler, junk removal service, dumpster rental service, landfill operator, garbage removal company, or a bulk waste hauler?
• Industry Analysis – here you will document key information about the junk removal industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target market are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing services like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer 
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your junk removal business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your junk removal business make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

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3. choose the legal structure for your junk removal business.

Next you need to choose a legal structure for your own business and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the junk removal business owner and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a junk removal business together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a junk removal business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a junk removal business is that it offers limited liability to its owners. This means that the junk removal business owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your junk removal business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

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4. Secure Startup Funding for Your Junk Removal Business (If Needed)

In developing your junk removal business plan , you might have determined that you need to raise funding to launch your business. 

If so, the main sources of funding for a junk removal business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a junk removal business that they believe has high potential for growth.

5. Secure a Location for Your Business

When starting a junk removal business, you’ll need to find a good location for it. Here are a few tips on how to find the right spot:

• Research your local area to see if there is a need for your services.
• Look for areas that are densely populated.
• Try to find a location that is easily accessible by car and public transportation.
• Make sure the area is safe and has plenty of parking available.

6. Register Your Junk Removal Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your junk removal business’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your junk removal business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

The licenses and permits you will need to start a junk removal business depend on your location. You will most likely need a business license, a waste management license, hazardous waste handling license, and a dumpster license. Check the regulations in your city and county for more information.

10. Get Business Insurance for Your Junk Removal Business

As a business owner, there are different types of insurance you’ll need to operate your junk removal business.

Some business insurance policies you should consider for your junk removal business include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Auto insurance : This type of insurance will cover if a vehicle used for your business is damaged or stolen.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
• Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
• Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.

11. Buy or Lease the Right Junk Removal Business Equipment

In order to start a junk removal business, you will need the following equipment: 

• A dump truck or van 
• Bins or dumpsters 
• Heavy lifting equipment
• Protective gear
• Garbage bags

12. Develop Your Junk Removal Business Marketing Materials

Marketing materials will be required to attract and retain customers to your junk removal business.

The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your junk removal business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website : Likewise, a professional junk removal business website provides potential customers with information about the services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your junk removal business.

13. Purchase and Setup the Software Needed to Run Your Junk Removal Business

To start your junk removal business you will need to invest in some software. Specifically, you will need a customer relationship management (CRM) system to help manage your customers and bookings, as well as a truck routing system to help plan your routes.

14. Open for Business

You are now ready to open your junk removal business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

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How to Start a Junk Removal Business FAQs

Is it hard to start a junk removal business.

No, it can be easy to start a junk removal business. It is important to do your research first and be willing to work hard. You'll also need to decide what kind of junk removal business you want to start and create a business plan to use as your roadmap.

How can I start a junk removal business with no experience?

The best way to start a junk removal business with no experience is to do your research. Learn about the industry, what services are offered, what kind of customer base you could attract, and what kind of marketing strategies would work best for your business. You can also attend industry events and meetups to get more insight into the industry and learn from experienced professionals. Networking with other entrepreneurs can also give you helpful tips and advice on how to start and run your business.

What type of junk removal business is most profitable?

There are many types of junk removal businesses, but the most profitable type is the full-service junk removal business. These businesses offer a comprehensive service that includes removal, cleaning, and junk disposal. They typically charge a flat fee for their services, which allows them to make a healthy profit.

How much does it cost to start a junk removal business?

There are a lot of costs that go into starting a junk removal business. You'll need to buy your own truck and hire employees. You'll also need to pay for advertising, marketing, and insurance costs . You can expect to pay around $1,000 for a small business and up to $10,000 for a larger operation.

What are the ongoing expenses for a junk removal business?

The ongoing expenses for a junk removal business are as follows: 

• Rental (or purchase) of trucks and equipment 
• Employee salaries 
• Gas and vehicle maintenance 
• Debt payments 
• Other miscellaneous expenses

How does a junk removal business make money?

There are a few ways that a junk removal business can make money. One way is by charging a fee for each item that they remove. They may also charge a fee for each mile they travel to remove the item. Another way they can make more money is by selling the items they remove to recycling companies or other businesses.

Is owning a junk removal business profitable?

Yes, a junk removal business is profitable because demand for this type of service is consistent. Many people have too much stuff and want to get rid of the junk they have, but do not have the time or motivation to do it themselves. Also, owning a junk removal business can generate a healthy profit if you are able to price your services appropriately and market them effectively.

Why do junk removal businesses fail?

Many junk removal businesses fail because of poor management such as ineffective planning, execution, and decision-making. The business can also fail if the company is not providing a service that consumers want or need. As a result, they may struggle to attract prospective customers and generate revenue.

Other Helpful Business Plan Articles & Templates

Small Business Trends

How to start a junk removal business.

Junk removal is hard work, often hot, filthy and physically challenging. But the good news is, you can get started with little more than a pickup truck. And the demand for junk removal services is growing. People are downsizing and decluttering. Businesses are taking similar trends, upgrading to more efficient equipment and often downsizing to small spaces with lower rents. The general public and businesses have an ongoing need for these important services. Here’s a guide on how to start a junk removal business.

The Junk Removal Industry

There are many reasons why a person or business may need a junk removal business:

• Decluttering : Both residential and commercial properties accumulate unwanted items over time.
• Moving : When people or businesses relocate, they often require services to remove unwanted items.
• Renovations : Construction waste from home or business renovations needs to be properly disposed of.
• Health and Safety : Accumulated junk can become a fire hazard or breeding ground for pests.
• Convenience : Many people don’t have the time, vehicle, or ability to take large items to a dump.
• Legal Requirements : Some jurisdictions have specific disposal requirements for certain types of waste.

Remember that junk removal can range from removing one item, such as a nonworking refrigerator, to disposing items from a household full of junk.

What is a Junk Removal Business?

A junk removal business may specialize in one type of service or diversify to offer several different services.

Here’s a snapshot of the types of junk removal businesses:

• Residential Junk Removal : Includes services like furniture removal, electronic waste disposal, and yard waste removal.
• Commercial Junk Removal : Covers office cleanouts, construction debris removal, and electronic waste disposal.
• Specialized Services : Some companies specialize in particular types of waste like hazardous materials, medical waste, or recyclables.

Why Junk Removal Services Are In Demand

The main reason junk removal services are in demand is because they offer convenience. For a fee, they offer clients their hard work and get rid of unwanted junk.

Junk removal services also handle waste types that the general public can’t easily get rid of, such as tires, electronics, paint cans and more.

The general public, as well as businesses, may not be up to date on regulatory laws and regulations that govern how waste is disposed of. By the same token, they may not know of the avenues for recycling waste, such as tires. Some companies shred tires and turn them into material used for playground bases and landscaping. People know the importance of recycling whenever possible and are glad to turn that job over to a junk removal company.

Junk Removal Job Variety

Within the main three types of junk removal services, there is a lot of variety:

Residential

Includes removal of household items, yard waste, and construction debris from small projects.

Encompasses larger-scale removal such as office furniture, construction debris, and electronic waste.

Hazardous Materials

Some companies specialize in removal and disposal of hazardous materials like chemicals, paints, and medical waste.

Steps to Starting Your Own Junk Removal Business

The junk removal business is very competitive. Before you make your foray into the field, here’s a guide on how to start a business in this industry:

Market Analysis: Residential vs. Commercial Junk Removal

The strongest market can vary by location and economic climate, but typically, the commercial market can offer larger, more consistent contracts, while the residential market might be more plentiful but less predictable.

Drafting a Junk Removal Business Plan

A business plan is very important. It can be very helpful to use an existing template for a business plan to guide you through the process.

Don’t get bogged down – remember that you can change your business plan as the business evolves.

A business plan is important for two main reasons:

• In the future, if you seek financial help to expand, lenders will want to see it.
• It will help you brainstorm and plan the various aspects of your business, such as marketing and adapting for future growth.

Choosing a Junk Removal Business Name

You need a name for your junk removal business that is catchy and easy to remember. At the same time, you need to make sure that another business is not already either using the same name or using one that is very similar.

Before registering your business in your state, check to ensure the name is available. Also, do an internet search to see what answers you get for the name.

There are a number of junk removal franchises with established names, and you want to avoid choosing a name similar to those (they are listed below).

Securing Junk Removal Business Insurance

• General Liability Insurance : To cover any damages or accidents.
• Vehicle Insurance : For the company trucks, this would be commercial vehicle insurance.
• Workers’ Compensation : In case an employee is injured on the job.
• BOP, or Business Owner’s Policy: This umbrella coverage includes your basic liability insurance and commercial vehicle insurance.
• Bonding : While not always required, bonding is often advised as it provides an extra layer of financial protection for you and your clients. You will be working in private properties, and sometimes (especially when dealing with bank-owned properties) bonding is necessary.

Selecting the Right Vehicles and Junk Removal Equipment

Often you’ll be getting rid of junk at a landfill. Landfills often have dirt lots, which can be muddy and rutted by traffic from larger vehicles including municipal trash trucks and tractor-trailer trash haulers.

It can be difficult to navigate those lots with a pickup truck towing a trailer, especially when you’re backing up to the disposal area. You may want to visit your local disposal sites to see how they are set up.

Although you can get your start with a pickup truck and a trailer, as you grow, you may opt for larger straight box-style trucks, which will have a higher bed and wider wheelbase. This type of vehicle may be easier to navigate at a landfill.

Permits and Licenses for Junk Removal Businesses

• Business License : General business license to operate.
• Waste Carrier License : Often required for transporting waste.
• Special Permits : For handling hazardous or special waste materials.

Pricing Your Junk Removal Service

Pricing is a critical aspect of any business, and for junk removal companies, it can be particularly complex due to the varied nature of the jobs. Here are some tips on how to price various services:

Understand Your Costs

• Labor Costs : Know the cost per hour for your employees and yourself.
• Vehicle Expenses : Fuel, maintenance, and depreciation on your vehicles.
• Disposal Fees : Dump fees or any other costs related to getting rid of the junk.
• Equipment Costs : Tools, protective gear, etc.
• Overhead : Office space, utilities, and other fixed costs.
• Insurance and Permits : The cost of necessary insurance and permits.

Determine Pricing Model

• Flat Rate : Charge a flat rate for specific types of items or services.
• Hourly Rate : Charge based on the amount of time it takes to complete the job.
• Volume-based : Charge based on the amount of space the junk takes up in your truck.
• Weight-based : Charging is based on the total weight of the junk.
• Project-based : Some jobs may be unique and require a custom quote.

Market Research

• Competitor Pricing : Know what your competitors are charging and find your competitive edge.
• Customer Willingness : Sometimes, what the market is willing to pay is more important than what you think the service is worth.

Add-Ons and Special Services

• Hazardous Material : Handling hazardous materials generally requires special permits and thus can be priced higher.
• Urgency : Fast-track or emergency services can be priced at a premium.
• Recycling Fees : If you are segregating and recycling items, you might charge an additional fee.

Consider Discounts

• Loyalty Discounts : For repeat customers.
• Referral Discounts : For customers who refer others to your service.
• Seasonal Promotions : For times when business is slow.

Transparency

• Itemized Quotes : Break down the costs so customers understand what they’re paying for.
• Contracts : For larger jobs, consider drawing up contracts to clarify the scope and cost of the work.

Where Will Your Junk Hauling Business Take the Junk?

Get to know the location of your nearest disposal sites as well as the types of things that are accepted at those sites. When choosing one disposal site over another, keep in mind its distance from junk removal jobs.

You can significantly lower your landfill costs, which are calculated by weight. Typically, you’ll be weighed as you enter the facility and again as you leave, and pay a flat rate based on tonnage.

If you’ve recycled everything you can before going to the landfill, you will keep your costs lower.

Marketing Your Junk Removal Company

So what is marketing for a junk removal company? Of course, you’ll have an online presence, which will include a website and FB page.

You can also market your business offline. Be sure to join your local Chamber of Commerce to network with other business owners there.

For example, someone who owns a construction company could be a good contact because they need to get rid of unused construction materials or items left over from remodeling projects, such as kitchen cabinets or old flooring. Someone who owns a car repair shop may have a need for monthly pickup of worn tires.

Building a Loyal Customer Base

Even for small jobs, it’s good to have a contract that describes the service that will be performed and what it will cost. As a side benefit, the customer will have a copy of the contract, which includes your contact information.

Maintain information on customers and ask for feedback. To build a loyal customer base, you can do things such as provide a discount for referrals or continued loyalty.

Environmentally-Friendly Junk Removal Practices

• Recycling : Segregating recyclable materials, such as plastic and metals.
• Donation : Giving usable items to charity. However, post-pandemic, it is no longer possible to donate items such as mattresses, couches or upholstered chairs because of the cloth surface. New guidelines preclude people, as well as junk haulers, from donating those items.
• Green Disposal : Use methods that have a lesser impact on the environment. For example, latex paint cans that contain paint residue can be opened so that the water-based paint can evaporate. It takes time, but once the paint has evaporated and dried, the paint can be recycled.

Training and Safety Protocols

You may be moving large, heavy objects. Proper lifting and moving techniques are essential for preventing injuries, especially lifting injuries.

You may also be removing junk from areas involving hazardous breathing conditions, such as moldy basements or fire-damaged areas. Ensure you use the proper breathing apparatus to work in such areas.

As much as possible, keep the work area free from slip, trip and fall hazards.

Specialized Services: Estate Cleanouts, Hoarder Situations, and More

• Estate Cleanouts : Specializing in clearing out homes after a death.
• Hoarder Cleanouts : Requires special attention to detail and sometimes psychological understanding.
• Foreclosed Home Cleanouts : Working with banks or real estate agencies to clean out and prepare homes for resale.

Expanding Your Services: Upselling and Diversifying

There are lots of opportunities to upsell in the junk removal industry. For example, you may remove unwanted items from a customer’s garage but notice that the items that remain in the garage still take up too much space. Can they be organized? Would shelving and storage hooks solve the problem? Customers who are too busy to remove unwanted items may jump at the chance to finish the job.

If you’re cleaning junk from a foreclosed property, offer to finish the job by doing a thorough cleaning. You can further expand your paid work opportunities by offering to keep the property looking good with grass cutting or snow removal. Often, foreclosed properties are headed for the real estate market, and offering services that improve curb appeal will often be ordered.

Junk Removal Business Startup Cost

In addition to the various licenses, permits and insurances, y ou’ll also need trucks, vans and trailers.

On a good note, you can get started in the junk removal business with a pickup truck – especially if you’re willing to start with small jobs. You can add a landscape trailer or an enclosed cargo trailer. A trailer with a ramp to load makes it much easier to load large, unwieldy heavy items.

Other items needed include handtrucks, cargo straps and heavy work gloves.

If you spend $15,000 on a used pickup truck and another $2,500 to $4,000 on a trailer, you can get started for less than $20,000 with a truck and a trailer. Let your profits pay for upgraded equipment. Opt for an 8-cylinder truck so that you can pull a trailer that may weigh more than 3,000 pounds easily.

Consider a Junk Removal Franchise

There are junk removal franchises available for junk removal services, which offer the advantage of a recognized brand and business model.

Several well-known franchises exist in the junk removal industry. Joining a franchise can offer the advantage of an established business model, brand recognition, and marketing support.

Here are some junk removal franchises:

• 1-800-GOT-JUNK? : Perhaps one of the most well-known junk removal franchises, they offer a wide range of services and have extensive brand recognition.
• Junk King : This franchise places an emphasis on green practices, aiming to recycle or donate a large percentage of the items they collect.
• College HUNKS Hauling Junk & Moving : This franchise offers both junk removal and moving services and targets a younger demographic.
• JDog Junk Removal & Hauling : JDog Junk Removal is unique in that it is veteran-owned and operated; this franchise aims to offer trustworthy, reliable services.
• The Junkluggers : Junkluggers Junk Hauling Services focuses on eco-friendly junk removal, aiming to donate or recycle as much as possible.
• LoadUp : Known for upfront pricing and online booking, this franchise is trying to make the junk removal process as straightforward as possible.
• Two Men and a Truck : Primarily a moving service, they have also branched into junk removal.

FAQs: How to Start a Junk Removal Business

How does high-volume junk removal differ from smaller jobs.

Many junk removal services get their start by handling small jobs, such as helping a homeowner discard a sectional couch or nonworking appliances. Some entrepreneurs even research how to start a handyman business or how to start a tow truck business to offer additional services.

High-volume junk removal typically involves a much greater volume of items, such as cleaning out a foreclosed home or removing equipment from a commercial business – such as a warehouse that has changed ownership.

How do I create a junk removal business plan?

Writing a business plan can seem daunting and complicated. Stick to the basics. Describe the company’s organizational structure, such as if it is a limited liability corporation, partnership or corporation. Name the principal people who are involved and their duties/roles with the company.

Include a mission statement, which will detail the reasons this type of business was started. Include plans for strategic growth and marketing.

A lender will want to see financial information about the company and the people involved in the company. And lenders also will want to see a business plan. There are numerous templates available that can help you through the process. You can also gather inspiration from learning about other businesses in this industry. For example, read our profile on Always Reliable Junk Removal .

Are there different Rules for Junk removal businesses in different states?

You wouldn’t think so, but regulations for junk removal companies can vary significantly depending on the state and even local jurisdictions within states. These regulations often cover various aspects related to waste disposal, environmental protection, and business operations. Here are some areas where you might encounter differing regulations:

• Some states may require a specialized waste carrier license, while others may not.
• Additional local permits may be needed for certain types of waste, like hazardous materials.

Waste Disposal

• States may have specific locations where waste must be disposed of, and some may restrict out-of-state waste disposal.
• There may be additional guidelines on how certain types of waste, like electronics or hazardous materials, must be disposed of.

Recycling Requirements

• Some states have more stringent recycling requirements and may require businesses to recycle a certain percentage of the waste they collect.

Vehicle Regulations

• States may have differing vehicle requirements or regulations, from the type of trucks you can use to emission standards your vehicles must meet.

Health and Safety

• OSHA standards are federal but can be enforced differently at the state level.
• Some states may require additional health and safety training or equipment.

Zoning Laws

• Local zoning laws can affect where your business can operate. Some areas may not allow waste sorting or storage.

Bonding and Insurance

• Requirements for bonding and types of small business insurance you must carry may vary by state and local jurisdiction.

Public Contracts

• The process for bidding on public contracts may vary by state and may require additional certifications or qualifications.

Hazardous Waste

• Handling of hazardous waste often has a separate set of regulations that may vary considerably by state.

Environmental Regulations

• Some states have additional environmental regulations that a junk removal company must adhere to.

Given this complexity, it’s crucial for junk removal companies to thoroughly research and consult legal advice to understand the specific regulations that apply to them. Failure to comply with state or local laws can result in hefty fines, loss of license, or other legal troubles. Always stay updated, as regulations can change, and what was permissible one year might not be the next.

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How to Start a Junk Removal Business in 11 Steps

February 12, 2024

Do you like physical work and driving around? Maybe starting a junk removal business is right for you.

Kyle Landwehr started Slam Dunkin Junk and The Junk Academy three years ago. Now he’s making $200K to $300K every month to haul away junk—and teach people how to start a junk removal business of their own.

What is a junk removal business?

Step 1. learn about the junk removal industry, step 2. create a junk removal business plan, step 3. build a junk removal brand, step 4. register your junk removal business, step 5. get a junk removal business license, step 6. get a business bank account and insurance, step 7. create a junk removal price sheet, step 8. get junk removal equipment, step 9. market your junk removal business, step 10. remove junk from home or business, step 11. expand your junk removal company, junk removal business faq, go start your own junk removal business.

A junk removal business focuses on removing unwanted furniture, appliances, and other items from residences and businesses. It also includes garbage collection, and you may hear it referred to as the waste removal industry.

It’s physical work, and it’s possible to injure yourself. Kyle shared:

I was making $30K to $40K monthly when I broke my ankle stepping off the truck. Breaking my foot is what caused me to start hiring employees and [scale] my business to what it is now.

He also explained that his injury got him into real estate. Listen to the interview below to find out how:

How to start a junk removal business

• Learn about the junk removal industry.
• Create a junk removal business plan.
• Build a junk removal brand.
• Register your junk removal business.
• Get a junk removal business license.
• Get a business bank account and insurance.
• Create a junk removal price sheet.
• Get junk removal equipment.
• Market your junk removal business.
• Remove junk.
• Expand your junk removal company.

You should understand the junk removal industry before you enter it. Some of the important questions you should ask before you start a junk removal company include:

• How much does it cost to start a junk removal business ?

How much do junk removal companies make?

Is the junk removal business profitable, how much does it cost to start a junk removal business.

The amount of money you need to start a junk removal business will depend on the business’s location (due to cost of living) and the materials you already own.

The items you’ll need to start a junk removal business include:

• A truck: $1,000 to $90,000 • Limited liability company (LLC): Under $1,000 • Business license: Under $1,000 • Business insurance: $1,000 to $10,000 • Dolly: $200 • Trash bags: $25 • Reciprocating saw: $300 • Safety equipment: $100 • Website: $1,200 per year

That means you can start a junk removal business for as little as $4,325 or as much as $102,325. Kyle told us:

If you have a truck, expect to spend around $6,000 starting your business. If you want to know how to start a junk removal business with no money, promote it on Facebook groups during the week and rent a U-Haul on the weekend. That will cost you $40 per day, plus $1.30 per mile.

According to IBISWorld , there are 8,607 companies in the junk removal industry. They make a combined $73.7B, or $8.6M each. Kyle told us he makes $200K to $300K a month as a junk removal company owner.

Yes. The gross profit margin is 32.74%, while the junk removal profit margins come out to 7.29% after after taxes, bonuses, and all other costs. This is based on data from 62 publicly held companies.

Kyle told us:

The gross profit margin the first year was around 50% margin, [the] following year 30% to 35% margin, and the third year I hired an operations manager, which took the margin down to 20%, but now I don’t have to be involved in the business.

How much is a junk removal owner’s salary?

The salary for working as an operations manager is around $75,000 annually for waste removal companies. This is nearly $18,000 less than other operations managers. When you run an S-Corp , you will need to use that as your wages and any profit you can pay as dividends.

For your company to be a profitable business, make sure to write a business plan.

You’ll want to include:

• Your mission and vision
• Ways you’ll make money
• Your target market
• How you will market the business

Check out our interview with Mike Andes to learn how to write a business plan. You can refer to our business plan writing guide as well.

My smartest business move was building my plan.

A distinctive and memorable brand for your service-based business sets you apart from competitors and establishes a reputation for your enterprise. Your brand relies on two main elements: your business name and logo.

First, select a junk removal business name that draws in customers and conveys a strong message about your services. Make sure it’s not already taken in your service area and online.

Next, craft a logo for your junk removal service. You have the option to hire a designer for assistance, or you can create one yourself using an online logo creator such as Canva .

You’ll want to register your business with your state. Kyle and most other business owners recommend structuring your business as an LLC, but there are plenty of other structures. Learn more about the business registration requirements and process in our business registration guide .

The cost of registering on the Secretary of State website varies from state to state. To give you an idea of the cost, Kyle said he paid $300 for his LLC in St. Louis.

You’ll also need an Employer Identification Number from the IRS .

A junk removal business may need local or county licenses. Check with your local government’s business office to see what is required in your state.

What license do I need to start a junk removal business ?

You may need special licenses and permits for waste removal if you collect hazardous waste or do construction tasks like demolition (which Kyle offers in addition to junk removal services). He also told us:

You could also offer dumpsters for people [which requires licenses].

Your local business office will be able to help you establish what business licenses you need.

A junk removal business needs a small business bank account before it offers junk removal services. The business bank account should have low fees and high interest rates on savings accounts. Keeping your finances separate will be helpful when tax season arrives.

You’ll also need junk removal business insurance. A junk removal company will need commercial auto insurance and general liability insurance at a minimum, but you might want more extensive business insurance, like a business owner’s policy (BOP). Learn more in our business insurance guide .

A BOP covers general liability, property damage, and unexpected shutdowns, plus has riders for other policies. We suggest contacting Simply Business to get quotes from multiple insurance companies.

For added financial management, consider enlisting the services of a bookkeeper or accountant. They can oversee business income and expenditures, handle bills and payroll, generate and dispatch invoices, and maintain the financial health of your business.

Getting paid for removing junk is nice, but junk removal business owners need to make a profit. That means you need to cover your labor, materials, and overhead costs. To achieve this, it’s essential to develop a pricing strategy for your waste removal business:

• Decide how to charge customers: You might want to have standardized prices for time, weight, and volume (like by the cubic foot). Creating all three will help you establish which way makes the most sense for each job.
• Research competition pricing: You don’t want your services to be overpriced or underpriced because both scenarios will hurt your earning potential
• Include overhead: Add all the expenses that are not directly applied to a job, then divide them by the number of billable hours (160 per person, per month). Add this rate to every hour of labor.
• Additional time and materials: You’ll need to cover time driving, disposal fees, taxes, and your profit margin. In general, junk removal services should assume each job will be at least two hours between driving, pickup, and disposal.

Once you’ve established your junk removal business pricing, you’ll want to create a junk removal price sheet .

Junk removal businesses need a variety of tools, equipment, and software to run successfully.

We’ve got you covered! Get all the supplies you need as a junk removal business owner from the UpFlip Junk Removal Store , or check out the list of tools you need for junk removal jobs below.

What do I need to start a junk removal business?

Junk removal businesses need the following:

• Pickup truck or box truck: You’ll need a vehicle to transport junk. This will be the largest of the business expenses, but Kyle says when you’re first getting started you can just rent a U-Haul.
• 3-in-1 Dolly: A successful junk removal business will need a dolly that converts to a cart. Kyle told us they have a 1,000-pound capacity dolly.
• Safety equipment: Depending on what you do in your junk removal business, you’ll need work gloves, work boots, safety goggles, and hard hats.
• Trash bags and bins: Load small things into these to simplify the process once you get to the dump or recycling yard.
• Reciprocating saw: Being able to saw items into smaller pieces comes in handy if you are recycling air conditioners because wires, copper, steel, compressors, and motors all have different values. Don’t forget blades and extension cords.

Author’s Note: Hauling away a ton (2,000 pounds) of air conditioners can make you around $2,000, based on my time working in HVAC.

You might want other tools including:

• 16-ounce claw hammer
• Construction broom
• Forearm forklift
• Large trash bins
• Laundry cart
• Long cut snips
• Moving blankets
• Orange vehicle flag
• Packing tape
• Screwdriver set
• Sledgehammer
• Utility cart

Next, find out how to market your junk disposal company.

When you start a junk removal business, you’ll need to build a name for yourself. To market yourself, you should:

• Post on social media.
• Find junk removal leads.
• Use junk removal software.
• Quote prices.

Post on social media

Social media is a powerhouse for all forms of service businesses. Kyle told us:

I went all in on social media, specifically Facebook. You used to have to go to businesses to network, but I can get way more leads from social.

Junk removal businesses should:

• Set up a Facebook business profile.
• Get their friends and family to like the Facebook page and share it.
• Post pictures of work they do from each junk removal job.
• Join local Facebook groups and network with potential customers.
• Create automated FAQs on Facebook Messenger.
• Keep posting regularly.

Kyle also explained that Instagram is better for marketing his junk removal coaching business.

Find junk removal leads

You’ll need to find customers who need junk disposal services. There are a lot of ways to help people find you when they need help. Kyle discussed where you can find potential customers:

Social media, Google (both search and local ads), flyers, door knocking, and Yelp are all good places to find leads.

Use junk removal business software

Business software is necessary to help potential customers find your business and manage all the jobs.

The main requirements you are looking for in software include a website, email and text automation, quotes, invoicing, and a customer relationship management system.

Many junk removal businesses use either Jobber or Housecall Pro , which offer all of the services above. Based on testing both for blogs, I like Housecall Pro’s functionality better.

Quote prices

Once you have gotten leads, Kyle said that you’ll want to go to the person’s residence or business location so you can see the extent of the junk haul-off. There, you’ll examine what you need to remove and provide an estimate. If you’re in the junk removal truck, you might even be able to haul the junk immediately.

You should also provide a business card so they can contact you if they don’t want the junk removed immediately.

In addition to offering home and office junk removal, Kyle suggested the following services:

You can also offer house flipping, dumpster rentals, and demolition.

When it’s time to collect the junk, you’ll go to the customer’s location and put it in the truck or scrap trailer. Removal time will depend on the number of items, ease of getting to them, and other tasks you need to do.

When you are done, you’ll want to get paid for junk removal. You might also want to provide junk removal business cards because the waste removal industry doesn’t get much repeat business, but business cards could help you get referrals.

Finally, you’ll take the junk to the dump, a recycling yard, or somewhere that you can repair it. When there are things you can recycle or repair, you can commonly make some extra money when you have slow periods.

When you start a junk removal company, you’ll want to find ways to expand it. Kyle told us:

Focus on perfecting one thing, but be open to expanding to other services. In my case, it led to house flipping and coaching.

You could recycle or repair appliances to make extra money, too. As your business grows, you could also franchise your business to help other people get started quicker.

Find employees

Kyle explained:

Lots of people thought I was all talk, but once I started a lot of my friends wanted to become junk removers.

If you don’t want to work with friends, learn about hiring employees from a recruiter.

Systemize everything

Establishing and documenting systems and policies for your business can make it run smoother, even in your absence.

How much is junk removal for customers?

Junk removal pros normally charge a minimum pickup fee of $50 to $150, and larger jobs may cost a minimum of $100 to $450. If customers rent dumpsters, those may cost $30 to $285 per day.

Can I buy a junk removal franchise?

Yes, you can buy a junk removal franchise. Some of the common junk removal franchises are:

• 1-800-Got-Junk?: The most famous commercial junk removal company hauls away all kinds of junk.
• College HUNKS Hauling Junk & Moving: Starting a junk removal business with College HUNKS means you’ll provide moving and junk removal services.
• Bin There Dump That: This hauling junk business brings dumpsters to people’s homes, then hauls it afterward. Learn more .
• Junk Removal Authority (JRA): The JRA offers the equivalent of franchise support without royalty fees.
• JDog Junk Removal & Hauling: JDog focuses on helping veterans start waste removal companies. They also donate or recycle over 60% of junk.
• The Junkluggers: Junkluggers franchises offer same-day and next-day junk and trash removal.

Learn about other junk collector franchises .

Whether you want to start a junk removal side hustle, buy a franchise, or start your own business, we’ve covered every aspect of entering the junk removal business as an entrepreneur.

It’s up to you to get started. What kind of junk removal will you do?

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How to Create a Marketing Budget (for 2024)

Are you struggling to find the right balance for your marketing budget? Maybe you don’t know which marketing strategy to use. We have the information you need to improve your overall marketing performance.

We surveyed business owners to understand how small businesses approach marketing. More than 1,800 people responded, and we’ve used their insights, as well as data gathered for our average marketing budget report to provide a guide for creating marketing budgets.

We’ll explain what a marketing budget is, how much experts suggest spending, and how much marketing teams spend, then we'll discuss how to create a marketing plan. We’ll even show you how to promote a company on a tight budget so you can become a marketing leader without spending thousands on ads.

[su_note note_color="#dbeafc"]Click on any of the links below to jump ahead.

What is a marketing budget?

What is the average marketing budget for a small business, how does having a budget help you avoid the traps of digital marketing, how to create a marketing budget, why you need an integrated marketing strategy, how to promote your business on a limited marketing budget.

• What is your experience with marketing budgets? [/su_note]

A marketing budget outlines the costs a company spends on marketing its products or services. Your marketing budget should cover a specific duration, usually a quarter or a year. Your budget may also have periods for particular marketing campaigns.

Your marketing budget should include all expenses related to spreading the word about your business. Your marketing budget allocation will estimate costs for various line items, including:

• Marketing team
• Paid advertisements
• Marketing software
• Outsourced marketing services

Expect your company marketing spending to be approximately equal in all four categories.

We asked how much business owners spend on marketing strategies. We found that two-thirds spend less than $1,000 per year marketing their small business, while 15% spend over $10K and another 19% spend between $1K and $10K.

Meanwhile, the Small Business Administration suggests a marketing budget allocation of 8% of company revenue. That means two-thirds of businesses are only marketing enough to make $12,500 in revenue annually.

To make $100K in revenue, you should be spending around $8,000. Meanwhile, if you want $100K in after-tax profit, you’ll want to spend $32K to $400K on marketing each year, based on 2% to 25% profit margins .

A digital marketing budget makes tracking performance against goals and industry benchmarks easier when comparing marketing channels. The budgets for each channel can also be set in most advertisers’ software, preventing marketing from running rampant.

You can also limit wasted expenses on Google Ads by narrowing your spending to only high-performing keywords.

You can also use the high-performing keywords to guide other marketing team efforts by focusing social media ads, video marketing, and search engine optimization on subjects that actually contribute to your company’s success.

Author’s No-Nonsense Note About Marketing Budgets

There are two ways to go about marketing: Spending time or spending money. Every hour you spend marketing is one you can’t spend providing services or creating custom products. Of course, eCommerce stores, content creators, and marketing agencies are marketing during all work hours.

If you have virtually no marketing budget or want to do it all yourself, I suggest assuming you will spend 20 hours per week promoting your business and 20 billable hours per week serving customers. You’ll need to calculate your service rates (or product prices) based on these reduced weekly hours.

Creating a marketing budget involves careful planning, analysis, and allocation of resources to ensure that marketing activities align with business goals. Here's a step-by-step guide to help you create a marketing budget:

• Understand customer needs.
• Examine your business goals.
• Review past marketing budget management.
• Measure the average cost per lead.
• Calculate the average conversion rate.
• Establish how many leads you need.
• Define your marketing objectives.
• Create your marketing budget.
• Regularly monitor and adjust your marketing spend.

Understand customer needs

Your marketing strategies should focus on showing you understand your target customers. To succeed, you’ll want to use research and marketing analytics data to gain deeper insights into what existing and potential customers want and need.

Without market research, marketing teams may have a difficult time identifying the marketing channels to reach their target audience best.

Explore demographic and psychographic factors like age, gender, income level, location, and brand loyalty to learn more about what your target audience cares about.

Examine your business goals

You’ll want to consider the overlying business strategy and goals before you create a marketing plan and budget. You might need to talk to executives, investors, and other team members to establish what the business goals are, then create a marketing plan that helps you achieve those goals.

Your business strategy will also impact the marketing team's goals because the marketing budget needs to be high enough to accomplish the business goals.

Throughout this piece, we’ll assume you are trying to make $250K across 1,000 customers. We’ll use these numbers to help illustrate some of the concepts you’ll use to avoid common marketing budget mistakes.

Review past marketing budget management

Before you create a marketing budget plan, review previous years’ marketing budgets and marketing campaigns. Identify what worked well and what didn't. Look for indicators like:

• Which marketing channels were under budget or over budget?
• Which marketing campaigns had a higher or lower return on ad spend?
• Did you overestimate or underestimate the previous year’s marketing budget?
• Did you add new products or services that impacted marketing costs?
• How does your cost per lead, cost per click, clickthrough rate, and conversion rate compare to industry averages?

This data will help you make more informed decisions for the upcoming budget.

Wordstream is a good source for these metrics if you do not have information from previous marketing campaigns. It will provide you with a good benchmark to compare your performance.

This is Wordstream’s data regarding cost per click, cost per lead, click-through rate, and conversion rate for Google Ads.

Measure the average cost per lead

Cost per lead (CPL) is a marketing metric that compares what you spend on lead generation to the actual number of leads you generate. This helps you understand how much it will cost for a marketing campaign.

The CPL formula is:

CPL = Amount spent on leads / Number of leads

Ideally, marketing investments would use your current numbers, but for those just implementing marketing tactics, use the benchmarks in the table above.

Calculate the average conversion rate

Conversion rate (CVR) measures the percentage of leads you turn into paying customers. Use the formula below to calculate the average conversion rate:

CVR = Number of Sales / Number of Leads

Establish how many leads you need

Now that you're familiar with some of the terms used in a digital marketing strategy, you’ll want to calculate the number of leads you need to hit $250K in gross revenue.

You’ll need to use the formula:

Desired Customers / CVR = Leads to Meet Goal

Let’s assume you’re in the home improvement field, which has a 10.22% CVR. That means you’ll divide:

1,000 Customers / 10.22% = 9,785 leads

Taking it a step further, your marketing plan needs to calculate how much marketing projects cost by multiplying the leads needed by the CPL ($66.02) .

9,785 x $66.02 = $646,005.70

As you can see, this is way higher than the $250K revenue you’re hoping to make. That’s because marketing leaders like Google and Facebook tend to charge based on an estimated lifetime customer value. Effectively, you’re paying a percentage of the revenue that you expect to make over the life of the customer relationship.

This is why a marketing budget includes a budget allocated to increasing the earnings from each paying customer through remarketing, loyalty programs, and other strategies that are less costly than paid advertising.

Define your marketing objectives

Next, you’ll want to define your marketing goals and align them with your business goals. Let’s look at some business goals and corresponding goals to include in your marketing budget.

You could tie marketing goals to other business goals, like:

• Raise brand awareness by X%
• Limit discounting current customers' bills to under Y%

These are just a few examples of how your business goals should impact your marketing strategy. Want to know more about tying marketing goals to business goals? Check out this blog .

Create your marketing budget

First, you’ll want to establish the total funds available for marketing. This may be based on a percentage of revenue, a fixed amount set by the company, or other financial considerations.

We suggest using the marketing budget of 12.3% that was mentioned in this CMO study . A startup marketing budget may need to be even higher. MaidThis CEO Neel Parekh told us:

[su_quote]When you first start a business, you may need to spend 20% to get clients faster.[/su_quote]

Check out our interview with him below.

Use a marketing budget template

Whether you’re a small business owner or work with them, you can use the information in this report and our marketing budget template to create a balanced small business budget.

The template lets you choose your industry and your revenue goal. Then it suggests a sample marketing budget amount.

Once you know how much your marketing budget should be, you can use the other tabs to set the budgets for specific aspects of your marketing strategy. Then add the actual expenses for an entirely new way of budgeting.

Pro Tip: Seriously, this marketing budget template is probably the tool I am most proud of during my seven years of consulting.

Allocate budget by channel

Decide how much of your budget will be allocated to the marketing channels outlined below.

As you go, you’ll notice that some budget-based initiatives make advertising small business products and services easier than others do. Start limiting your marketing spend on the ineffective channels and transfer it to the ones that are performing better.

Marketing spending as a percentage of revenue ranges from 0% to as high as 38.57%, with an average of 12.3% and a median of 10%. In addition, the average marketing budget dedicates 53.4% of its marketing dollars to its digital marketing budget, while the rest is spent on traditional advertising.

Marketing Budget Distribution

Once you’ve decided how much to spend on marketing, you’ll want to break your marketing budget down to the costs for all marketing campaigns. Marketing costs for small businesses will include:

• Content marketing budget: Expect to spend a minimum of $29 per piece, but some of the best content creators have content marketing budgets that cost up to $1,000 per piece. You may also find content creators that charge $.05 to $1 per word.
• Paid digital advertising budget: Small businesses should expect to spend $2.59 per click, $3.12 per 1,000 impressions, $.66 to $1.23 on remarketing, $15 to $800 on tools, and a minimum of $350 per month for the monthly ad budget, according to WebFX .
• Ad monitoring budget: To pay someone to monitor ads for your small business, include a marketing spend of $350 to $5K per month or 12-30% of monthly ad spend—whichever is more.
• Email marketing budget: Your email marketing budget will vary based on the number of email addresses on your list and the features you need, but you should expect to spend around $18 per month for up to 1,000 people on your email list. As you grow, costs may increase up to $540 per month, plus related labor costs.
• Social media marketing budget: Social media marketing in 2023 is expected to reach $72.33B in spending, or $2,178.62 per business (calculated by dividing $72.33B by the number of U.S. businesses).
• Sales funnel automation budget: Automation systems might be included in your email marketing, social media marketing, or other marketing channel budgets.
• Marketing tools and software: You might include these costs in other categories or put them in a dedicated category. On average, 25.5% of marketing budgets are spent on tech. Depending on the size of your company and the number of customers, necessary tools and software could be free or cost thousands per month.
• Outsourced marketing expenses: Some companies will outsource all or part of their marketing. As you’ll see in the chart below, approximately 23.5% of marketing costs go to marketing services and agencies.
• Traditional advertising budget: Traditional marketing budgets are expected to decrease by 2.6%, according to the CMO report. This includes print ads, outdoor advertising, radio spots, and more.

For social media, paid ads, and traditional advertising, you may want to break the promotional budget into specific marketing channels. We recommend utilizing this marketing budget template .

Small Business Allocation: How It’s Different

Professional marketers who responded to the CMO Survey said they spend approximately equal portions of their marketing budgets on marketing labor, paid media, technology, and outsourcing.

Meanwhile, our surveys show that small business owners think about their marketing efforts and spend their marketing budgets differently. The primary form of marketing most small business owners use is social media (60%), followed by Google Ads (17%), SEO (10%), print (7%), and content marketing (6%).

In addition, 44% of small business owners state that print advertising has not worked for their business, while just 24% did not find social media effective. Google Ads and SEO were tied at 13% for perceived ineffectiveness, while content marketing is the channel small business owners find most effective.

Interestingly, small business owners focus least on the strategy that has the most perceived effectiveness. If you’re looking for ways to grow your business, consider creating more content.

Include a contingency

However you think you’ll allocate your marketing dollars, it’s always best to give yourself some wiggle room when creating a marketing budget plan. Most budgets for marketing tend to be approximately 20% higher than companies actually spend.

Make sure you include a contingency in your budget that is up to 10% so you have some extra room if you need it as you manage your small business.

Regularly monitor and adjust your marketing spend

Continuously monitor the performance of your marketing activities against your budget. Make adjustments as needed to optimize performance and maximize return on investment (ROI).

The most commonly used marketing analytics software is Google Analytics . The most common metrics to measure marketing performance are:

• Sales, revenues: 69.9%
• Digital, web, and mobile performance: 55.6%
• Content engagement: 43.4%
• Lead generation: 40.3%
• Lead conversion: 36.9%
• Campaign costs, efficiency (e.g., production, content reuse): 34.8%
• Campaign effectiveness (e.g., gross rating points, reach, frequency): 34.7%
• Customer satisfaction: 32.7%
• Campaign ROI: 30.7%
• Customer churn, retention rate, loyalty: 28.6%

When a company integrates its marketing strategy, it makes sure every marketing channel pulls from the same playbook.

An integrated marketing strategy is crucial for businesses and organizations for several key reasons:

• Consistency: An integrated marketing strategy ensures that your brand messaging and visuals are consistent across all channels. This consistency helps you create a cohesive brand identity that earns trust and credibility with your audience.
• Maximized Reach and Exposure: Different people consume information through different channels. By integrating various marketing channels (such as social media, email, content marketing, traditional advertising, etc.), you can increase your audience and visibility.
• Improved Customer Experience: An integrated approach allows for a seamless and unified customer experience. When customers encounter a consistent message and experience across different touchpoints, it makes for a smoother and more enjoyable interaction with your brand.
• Increased Efficiency: Coordinating different marketing efforts can lead to increased efficiency. For example, when your social media efforts align with your content marketing strategy, you can repurpose content for both channels, saving time and resources.
• Better Data and Analytics: Integrating different channels will help you get a better picture of your audience and their preferences. This allows for better tracking, measurement, and analysis of marketing efforts, leading to better-informed decision-making.
• Adaptability and Agility: An integrated strategy enables you to pivot when market conditions or consumer preferences change. If one channel isn't performing as expected, you can adjust your approach across multiple channels more easily.
• Competitive Advantage: Companies that successfully integrate their marketing efforts often gain a competitive edge. This is because they're able to deliver a more cohesive and compelling message than competitors with a disjointed or inconsistent approach.
• Alignment with Business Goals: An integrated strategy ensures that all marketing efforts are aligned with overall business goals and objectives. This means that every campaign and initiative is contributing to the broader mission of the company.
• Optimized Budget Allocation: Integrated marketing allows for better allocation of resources. By understanding which channels are most effective for your specific audience, you can allocate your budget and staff to maximize return on investment.
• Long-term Growth and Sustainability: An integrated approach sets the foundation for sustainable growth. By building a strong and consistent brand presence, you're more likely to retain customers and attract new ones, leading to long-term success.

In today's highly competitive and fast-paced business environment, having a well-thought-out and unified marketing plan is essential for staying relevant, reaching your target audience, and achieving your business objectives.

Promoting your business on a limited budget requires creativity, strategic planning, and a focus on cost-effective methods. Here are some practical steps to help you get started:

• Define your target audience.
• Leverage social media.
• Optimize your website.
• Invest in content marketing.
• Be consistent with email marketing.
• Collaborate with influencers or partners.
• Utilize free marketing tools.
• Network in your industry.
• Offer referral incentives.
• Leverage user-generated content.
• Do your own graphic design.
• Perform local SEO.
• Run giveaways and contests.
• Measure and adjust.

Keep reading to learn more about small business marketing methods on a small budget.

Define your target audience

You need to understand your target market to tailor your marketing efforts toward the people who are most likely to be interested in your products or services. Your target market should be as narrowly defined as is reasonable.

Some of the demographics and data points you can use to narrow your target market and reduce your online advertising expenditures include:

• Other demographics

The more narrow your budget, the less cost involved.

Leverage social media

Most small businesses that are operating on a small marketing budget will focus on social media posts. You can get a lot of free marketing when you:

• Choose the Right Platforms: Focus on the social media platforms where your target audience is most active.
• Join Facebook Groups: There are groups for everything on Facebook. Join your local groups to network and attract customers.
• Post Regularly: Regular and engaging content can help build a community around your brand.
• Utilize Hashtags: They can expand the reach of your posts to a wider audience.
• Engage with Your Audience: Respond to comments, answer questions, and foster a sense of community.

Optimize your website

Try using a free website builder to start. Ensure your site is user-friendly and responsive on mobile. Once you’ve set up your website, use SEO techniques to improve your site’s visibility on search engines.

As you grow, you’ll gain more functionality from a paid website.

Invest in content marketing

As we mentioned earlier, content marketing is one of the least used but most effective types of marketing small businesses can do. Businesses should create valuable, relevant, and informative content that resonates with their target audiences. Blog posts, videos, infographics, and e-books are all great options.

Be consistent with email marketing

Collect email addresses through your website and social media. Then send out regular newsletters with updates, promotions, and valuable content.

Collaborate with influencers or partners

Partnering with influencers in your niche can expose your business to a broader audience. You can also collaborate with complementary businesses for joint promotions or events.

Utilize free marketing tools

Free tools, like Google Analytics, Google Business Profile, and onsite social media analytics, help you monitor performance and make data-driven decisions. There are many other free apps to use as a small business, too.

Network in your industry

Attend industry seminars, conferences, and other events to make connections and spread the word about your business. These are great places to meet potential customers and people who can refer you to customers.

Offer referral incentives

Encourage your existing customers to refer friends and family by offering discounts or special deals. It doesn’t have to be much—people will appreciate 5% to 10% discounts.

Leverage user-generated content

Encourage customers to share their experiences with your products or services on social media. You can feature their content on your platforms and share them with your followers on social.

Do your own graphic design

Use free or low-cost tools, like Canva , to create eye-catching visuals for your marketing materials. Canva makes it easy to create content and doesn’t require design experience.

Perform local SEO

Optimize your business for local searches so people in your area can easily find you. To do this, you need to:

• Make sure your name, phone number, and address are consistent across the internet.
• Sign up for Google Business Profile.
• Improve your online listings.
• Share updates, like new locations or hours, with Google.
• Request Google reviews.
• Optimize URLs, title tags, headers, meta descriptions, and content on your website.
• Add a Google map with your location in your site’s footer.
• Create localized content.
• Improve your site’s mobile friendliness.
• Participate in the community. When people see your company interacting with the local community, it builds trust, and search engines may take notice.

Run contests and giveaways

Engage your audience by offering prizes in exchange for social media engagement or email sign-ups. The point here is to get more followers and more emails to contact. You’ll want to:

• Establish your goals.
• Choose a contest to run.
• Build the contest.
• Promote the contest.
• Track the results.
• Follow up after the contest.
• Improve the next contest.

Check out Wishpond’s blog for a more extensive guide on hosting contests .

Measure and adjust

Keep track of what works and what doesn't. Focus on the strategies that give you the best ROI. This will help you avoid falling into the category of small business owners unsatisfied with their marketing results.

These small business marketing statistics can help you create an informed marketing budget, especially when you remember that online marketing is steadily gaining traction over traditional marketing channels, like print and radio.

What is your experience with marketing budgets?

We’ve discussed the importance of creating a marketing budget, provided you with marketing budget allocation best practices, and shared tips on how to use marketing budget templates whether you have an established business or are just starting one.

Whether you have a marketing department or not, take the time to make a marketing budget. It will help increase sales and reduce wasted spending.

Based on years’ worth of UpFlip interviews, I can tell you that marketing automation software and content marketing have some of the best returns.

Have you ever created a marketing budget? What was the biggest pain point in creating it, and what new marketing strategy will you try next?

How to Start a $500K/Year Candle Business

Did you know that you can start a candle business for less than $100 and grow it into $500K in annual revenue?

Jocelyn and Jen started RXLA as a side hustle making gifts for coworkers, then started going to farmers markets, and eventually opened a candle store and expanded their offerings on their way to bringing in a half-million dollars per year.

We’ll share strategies for how to start a candle business with just a little money, smart marketing, and responsible scaling.

Click on any of the links below to jump to the section that interests you, or just continue reading.

[su_note note_color="#dbeafc"] Click on any of the links below to jump to the section that interests you, or just continue reading.

Candle Business Case Study: RX Candles Los Angeles

Candle industry summary, step 1: learn how to make candles, step 2: define your candle making brand, step 3: create a candle business plan, step 4: secure funding for your candle line, step 5: get business insurance, step 6: gather supplies, step 7: create an online store, step 8: market your business, step 9: sell candles, things to consider when starting a candle business, ideas for a candle making business, how to start a candle business with no money.

• Open Your Own Candle Business [/su_note]

Jocelyn started RX Candles in 2013 as a hobby. When the business venture received crowdfunding, she invited Jen to help create soy candles. The candle brand opened a local craft store, but the pandemic caused it to shut down.

They are still recovering from the hit they took from closing the retail store, but increasing their offerings and selling wholesale has helped them reach $500K in annual revenue with 50% gross margins.

Customers loved their homemade candles so much that they asked for other products, services, and ways of buying. As the sisters gained confidence in their products, they realized they needed to listen to their customers and provide the services they—and other potential customers—wanted.

Keep reading to learn more about the candle industry.

According to Grandview Research , the candle industry was worth approximately $13.6B in 2023 and is expected to reach $20B by 2030.

How much does it cost to start a candle business?

The candle industry has a low barrier to entry. According to Crowdspring , you should expect to spend between $9.5K to $78K to start a candle business, with an average of around $44K. But we’ve interviewed two business owners who say they started candle businesses for $100

A candle maker’s startup costs will vary depending on the cost of living in their location, supply and materials costs, and other factors.

Is candle making a profitable business?

A candle making business can be highly profitable, with gross margins of 50%. Ingredients, packaging, and marketing are some of the primary costs that will impact your profitability.

Can you make money selling candles from home?

Yes, you can start a candle business from home and make decent money, but it may be more cost-effective to utilize a fulfillment center to fulfill your orders. There may be restrictions in your town or homeowners’ association that impact the ability to run a home-based candle business.

Who are the major candle makers?

It’s helpful to research the major players in the candle market because you can identify gaps in the industry and ways to market your own products. The major candle makers include:

• Yankee Candle (Newell Brands)
• Luminex Home Décor & Fragrance
• MVP Group International, Inc
• Universal Candle
• Qingdao Kingking Applied Chemistry Co., LTD
• Empire Candle Co., LLC
• Hyfusin Group Holdings Limited
• Dandong Everlight Candle Industry Co., Ltd.
• Fushun Pingtian Wax Products Co., Ltd.

While the major players in the industry get most of the revenue, there is always room for new entrants to make a great living selling candles.

How to Start a Candle Business

It helps to have a path of action before you start a candle business. Follow the steps below to start a successful candle making business:

• Learn how to make candles.
• Define your brand.
• Plan your business.
• Secure funding.
• Get business insurance
• Gather supplies.
• Create an online store.
• Market your business.
• Fulfill orders.

Before you can start selling candles, you need to know how to make them. Jazmin, another successful candlemaker, explained how to accomplish it in our interview. Watch the interview below:

Let’s look at what you’ll need to get started.

Tools and Materials for Candle Making

Good tools and candle making supplies can make the job more fun and more efficient. At a minimum, you’ll need:

• 10 pounds of wax
• Pouring pitcher
• Pot to put the pitcher in to create a double boiler
• Thermometer
• Containers to hold the candles
• Scented fragrances

Jen told us:

[su_quote] Candle brands will want to scale responsibly, which means as the business grows, you’ll want to invest in better tools for efficiency. [/su_quote]

How to Make Candles to Sell

You can start by buying a candle making kit, but as you learn, you’ll want to pick your own wax and essential oils. The candle making process normally follows the steps listed below:

• Fill a larger pot with water and the pouring pitcher with wax flakes.
• Hang the pouring pitcher on the inside of the larger pot to effectively create a double boiler.
• Wait for the wax to melt, which will take 45 minutes to an hour depending on the temperature.
• Pour the wax into candle molds.
• Add scents and wicks.
• Let them dry.
• Package the candles.

Jazmin told us:

[su_quote] When you make candles, only about 20% of the scent will actually be smelled, so you need to be aware of that [when adding scents], otherwise you won’t be able to smell it. [/su_quote]

You’ll want to create a coherent brand for your candle making business. Some of the things you’ll need to consider include:

• Target market: Who will buy your candles? Will you be mass-producing candles or creating a luxury brand image? Identifying your target market makes marketing and branding efforts easier.
• Brand identity: What makes your candles unique? What sets them apart from other products on the market? Your brand identity will include your business name, logo, colors, and physical and digital design. Learn more about candle business names here .
• Brand story: What inspired your candle business and the branding for it? A good story helps you connect with customers and create a more meaningful experience.
• Brand values: What does your candle company hold dear? Think about how you operate your brand and what you want it to tell people. Your values should guide everything you do, including your materials, packaging, and shipping methods.

Creating a brand won’t happen overnight, but after continually telling your story and showing your values.

Every business should have a workable plan to help guide decisions. When writing a candle making business plan, you’ll want to include the following:

• Niche: Explain what makes your small candle business different and describe the target audience that your products appeal to.
• Validate your business idea: Explain the research you have performed to establish your candle business will appeal to your target audience. Learn how to validate an idea .
• Business structure: New businesses normally choose a limited liability company or sole proprietorship as their business structure .
• Budget: Estimate your costs to start a candle business and operate it for one to three years. The budget will help you understand how much funding you’ll need until the business can support itself and your lifestyle.
• Business bank account: Open a business bank account to help separate your personal and business expenses. You can also get an Employer Identification Number ( EIN ) to open a business bank account and access materials at wholesale prices.
• Marketing plan: A marketing plan spells out how your candle business will approach products, pricing, placement (where you sell the goods), and promotion of your candles.

The biggest thing to remember about writing a business plan is it should be easy to understand, well-documented, and as short as possible.

Download our free business plan template and work through it while watching the video below.

Jen suggests self-funding when you start a candle brand. Other small business funding options include crowdfunding, a standard business loan, a Small Business Administration loan, or an interest-free loan from friends and family.

Learn how to get business loans here .

You’ll want to get insurance when you create candles. Candles can start fires, and small business owners risk lawsuits from customers or employees. We suggest starting your business insurance search with Simply Business because it compares rates from the leading insurance companies.

Learn more about small business insurance here .

New business owners will need to get the candle wax, different fragrance oil blends, packaging, and any equipment they don’t already have.

Depending on your startup capital and business needs, you may be able to buy most of the products on Amazon, or you may need to reach out to manufacturers.

You’ll want your own website for candle sales. That means you’ll need a domain name and a website builder . Then you’ll need to create a home page and product pages for each type of candle you sell. You might want categories like:

• Scented candles
• Luxury candles
• Decorative candles
• Fragrance oils
• Tea light candles
• Container candles
• Birthday candles
• Liquid candles
• Insect repellant candles
• Flameless candles
• Pillar candles
• Aromatherapy candles

Read more about the different types of candles on Styles at Life .

You’ll want to market your candles to your target market. Each small candle business will have a different marketing strategy depending on their target market, but most candle companies will include a combination of:

• Social media marketing
• Email marketing
• Content marketing
• Traditional marketing channels

Jen explained that their marketing strategy consists of local farmers markets, pop-up shops, social media, and email marketing. She also explained:

[su_quote] I feel like our biggest mistakes were not going digital fast enough. If we had a website and collected emails from the beginning we would have grown much faster. [/su_quote]

Fulfilling orders is another crucial part of running a candle line. When you’re selling online, this will mean packaging and shipping the candles to consumers or other small business owners.

When you sell at local markets or a local craft store, you’ll still need packaging, but it could be a decorative box and branded bags as opposed to a box that is ideal for shipping.

When considering how to start a candle business, you’ll need to consider:

• Where am I going to sell my candles?
• Am I going to hire employees or do it all myself?
• What technology do I need when starting candle business operations?
• What will my pricing strategy be?

Let’s look at each of these.

Find a Location for Your Candle Business

There are a variety of places you can sell your candles. If you are wondering how to start a candle making business at home, you can do so using this guide and sell them on your website. Other options include:

• Retail stores
• eCommerce platforms
• Flea markets
• Your local farmers market

A candle business makes different amounts of money depending on the locations they sell their products and the cost of doing business for each type of store.

Hire Employees for Your Candle Business

A dedicated candle maker may grow to the point of needing to hire employees. When you do, you’ll need to get an EIN if you haven’t already. This is how the IRS identifies employers.

You’ll also need to have payroll software and optional benefits. Many accounting software providers include payroll resources, but if you want to consider other options, check out our article where we compare the 15 best HR companies .

The Department of Labor requires employers to display poster notices for employees, either electronically or physically in the workplace. A comprehensive employer guide for how to display these posters is available on their website.

You’ll also need to follow the following requirements:

• The Federal Unemployment Tax Act (FUTA) requires any business with employees to pay a payroll tax.
• Employment Eligibility Verification (Form I-9) allows business owners to verify the identity and employment clearance of every person they hire.
• Meeting Occupational Health and Safety Administration ( OSHA ) standards and enforcing workplace safety are necessary for any business.
• Worker’s Compensation Insurance is required to protect your business and employees in case of injury.

Keep reading for information on the technology you’ll need.

Implement Technology to Run a Candle Making Business

When following this step-by-step candle business guide, you’ll need to implement some technology. Most of the technology that RXLA uses is for marketing purposes. They mentioned using Klaviyo for their candle brand email marketing.

Create a Pricing Strategy

One of the easiest ways to ensure you’ll make good money is to keep your candle startup costs low and charge market value for the products. You’ll want to target a gross margin of 50% for your candle business. To calculate the price easily:

• Add up the total costs for a batch of candles
• Multiply the cost by 2.
• Divide by the number of candles created.

That should put you right at 50% gross margins.

Your pricing strategy can be created in a few different ways. The primary ways of pricing candles are:

• Add up all your costs and divide them by the number of candles you make.
• Add the amount you want to earn for each candle sold based on the time it takes you to make, sell, package, and ship each candle. So if you spend four hours making and shipping 200 candles and want to make $100 per hour, that’s $2 per candle you add to the costs.
• Look up comparable products and price your items based on them.
• Create a brand story that makes your particular candle more valuable. This is the strategy that Jazmin used.

Whichever strategy you use, make sure you are realistic about how much time you are willing to dedicate to it. If you are only going to spend a few hours a day, you can’t make as much as if you treat it like a full-time job.

Candlemakers primarily target women, but according to the National Candle Association (NCA), both men and women consider candles appropriate gifts. They say the most common times people buy candles are:

• During the holiday shopping season, which is when 35% of sales occur
• Housewarming gifts
• Gifts at dinner parties
• With thank you notes
• For adult birthdays

To start a candle business with no personal finances, you’ll normally need to focus on selling candles using a “print”-on-demand or drop shipping strategy. Once you have built up some money from candle sales, you can start reinvesting in the supplies and equipment to start making your own homemade candles.

The good news is that it’s inexpensive to start selling candles. Both of the business owners we talked to have started with $100.

Open Your Own Candle Business

Making candles might not seem like a profitable business, but it has the potential to blossom into a high income. Jocelyn and Jen started crafting candles as gifts, sold them in farmers markets, opened and closed a brick-and-mortar store, and were late to the digital marketing game, but they still reached an impressive $500K in annual revenue.

Their story teaches us valuable lessons about resilience, adaptability, and the power of listening to customers. They found ways to overcome challenges and expand their offerings. You can use their candle business tips to succeed too.

The candle industry is ripe with opportunity. With global revenue projected to soar in the coming years, candle business owners can sell candles to make a great living. And the beauty of it all? Given Jocelyn and Jen started with $100, a candle business is one of the best businesses to start from home.

As you embark on your candle making journey, remember that success lies not just in the quality of your product but also in the strength of your brand, the efficacy of your business plan, and the dedication to continuous improvement.

Whether you dream of creating luxury candles or catering to a specific market segment, the possibilities are limited only by your imagination and determination.

So ignite that spark of creativity, pour your passion into every candle you craft, and watch as your business illuminates not just spaces but lives, one flickering flame at a time.

How to Start a $9K/Month Carpet Cleaning Business (with $3K Budget)

• Developing the skills to run a carpet cleaning business.
• Choosing a name for a carpet cleaning business.
• Writing a business plan for a carpet cleaning business.
• Registering a carpet cleaning business.
• Funding a carpet cleaning business.
• Preparing for launch
• Operating a carpet cleaning business
• Marketing a carpet cleaning business

Step 1: Developing the skills to run a carpet cleaning business

• Customer Service
• Inventory and Equipment Management
• Technical Skills Required for Carpet Cleaning Businesses

Is carpet cleaning an excellent business to start?

Step 2: Choosing a Name for the Carpet Cleaning Business

Does the name explain the carpet cleaning business, is the carpet cleaning business name easy to spell, does the carpet cleaning business name include your location, does the branding fit the carpet cleaning business.

Register a .com

Give it a go, step 3: writing a carpet cleaning business plan.

• Business Plan Cover Page
• Table of Contents
• Executive Summary
• Company Description
• Description of Products and Services
• Marketing Plan
• SWOT Analysis
• Competitor Data
• Competitive Analysis
• Marketing Expenses Strategy 
• Pricing Strategy
• Distribution Channel Assessment
• Operational Plan
• Management and Organizational Strategy
• Financial Statements and Financial Projections

Step 4: How to Register a Carpet Cleaning Business

 Licenses, Permits, and Taxes

Options for business structures, sole proprietorship, limited liability corporation (llc), partnerships and corporations, apply for an ein, state/local business licenses, unemployment insurance, step 5: funding a carpet cleaning business.

• What equipment, software, and inventory do I need?
• How much will the carpet cleaning equipment cost?
• Will I need a location where customers can come? If so, how much will it cost?
• What are the costs for marketing and a website?
• Will the company have employees or sub-contractors?
• How much money is currently available to start a carpet cleaning service?
• How many routine customers do I have? Will the current revenue and savings cover costs?
• How much financing do I need?
• How will I get the financing?

How much does it cost to start a cleaning business?

Personal savings, loans or gifts from friends and family, small business loans, crowd funding, credit cards.

• "Isn't this risky? Shouldn't you go get a job?"
• "Can I get your service for free?"

Step 6: Preparing to start a commercial cleaning business

• Getting equipment, inventory, and other supplies.
• Creating a website.
• Setting up social media accounts.
• Signing up for payment processors.
• Setting up a Customer Relationship Management system and other administrative software.
• Establishing a physical location if necessary.
• Getting general liability insurance.

Carpet Cleaning Equipment, Inventory, and Other Supplies

• A truck or van - Just search "dealerships near me." They should have a truck that works.
• A Carpet Cleaning Machine -  Bissell , Janilink , and Hoover are some brands to consider. 
• Carpet Cleaning Tools - Make sure they are compatible with the model of the machine you buy.
• Cleaning products - Make sure they are compatible with the model of the machine you buy. Eco-friendly products can be used as premium or differentiating products.

Create a website

Setting Up Social Media Accounts

• Facebook - Selling products or services to people over 30.
• LinkedIn - Selling products or services to other businesses.
• Twitter - Best for current events.
• TikTok - Best for products and services for kids and teens
• Instagram - Best for products and services targeting people under 35.

Choosing a payment processor

• At different locations
• A combination of the above

Setting up a CRM and other administrative software

Finding a physical location, getting business insurance.

• General liability insurance- Used when a freak accident occurs. Typically $1m/2m coverage is needed, but it varies based on location and type of business.
• Professional liability- Used when the work you are doing causes damage. If a carpet cleaner causes mold, this will cover the mold remediation service.
• Cybersecurity insurance- This insurance protects against cyber attacks. If your systems are hacked, it will help protect your company.

Step 7: How to operate a carpet cleaning business

• Sending emails
• Performing marketing tasks
• Handling payroll
• Doing interviews
• Keep consistent business hours. If customers don't know when you'll be available, they'll go to someone who they know is available.
• Provide estimates you know you can meet. A customer would rather be quoted more and spend less than be approached for more money later. The same goes for time.
• Set time aside for life. Entrepreneurs are notorious workaholics. If you don't make time for the other aspects of life, they will suffer and seep into your work.
• Keep business and personal accounts separate. Depending on your legal structure, this is mandatory.
• Put 50% of the revenue aside for ongoing expenses, tax payments, and business re-investment. If you don't do this, you'll eventually have a scenario where you have to come up with the money you don't have.
• The customer expects their home to be spotless when you leave. Use Industry best practices like wearing booties in their home to protect the customer's property.

Step 8: Marketing Your Commercial Carpet Cleaning Companies

Related reading.

• Strategies for Success Facebook Page
• Flow , by Mihaly Csikszentmihalyi - Free PDF Download
• Mason's Network Facebook page
• The Time Paradox , by Philip Zimbardo. Free Audiobook with Audible Trial.
• Small Business Development Center Courses - Add  Your Zip Code for your SBDC.
• The Structure of Scientific Revolutions , by Thomas Kuhn- 2nd Edition PDF
• Stanley Steemer - Requires a phone call.

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How to Start a Profitable Junk Removal Business [11 Steps]

By Nick Cotter Updated Feb 02, 2024

Business Steps:

1. perform market analysis., 2. draft a junk removal business plan., 3. develop a junk removal brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for junk removal., 6. open a business bank account and secure funding as needed., 7. set pricing for junk removal services., 8. acquire junk removal equipment and supplies., 9. obtain business insurance for junk removal, if required., 10. begin marketing your junk removal services., 11. expand your junk removal business..

Starting a junk removal business requires a thorough understanding of the market to tailor services effectively and outmaneuver competition. The initial step to take is an in-depth market analysis which will inform your business strategy and operational decisions. Here's how you can perform a comprehensive market analysis:

• Research the local demand for junk removal services by evaluating population size, consumer trends, and the prevalence of potential clients like homeowners, businesses, and construction firms.
• Analyze competitors by identifying existing junk removal services in the area, studying their pricing structures, service offerings, strengths, and weaknesses.
• Examine the regulatory environment to ensure compliance with local, state, and federal waste management laws, and understand any licensing or permit requirements.
• Identify potential partnerships with recycling centers, donation facilities, and landfills to understand the cost and logistics of waste disposal.
• Assess customer service strategies by reviewing how competitors engage with their clients, their marketing techniques, and the level of service they provide.
• Forecast potential revenue streams by considering various service models such as residential, commercial, or specialized junk removal.

Are Junk Removal businesses profitable?

Yes, junk removal businesses can be profitable. The profitability of a junk removal business will depend on a variety of factors, including location, demand for services, overhead costs, and pricing. With a good business plan and the right marketing strategy, a junk removal business can be profitable.

Creating a comprehensive business plan is a crucial step in starting a junk removal business, as it lays the foundation for your company's structure, operations, and goals. It will also be essential for securing financing and guiding your business toward long-term success. Here are the key components that should be included in your junk removal business plan:

• Executive Summary: Start with a brief overview of your business concept, including your mission statement, services offered, and fundamental goals.
• Market Analysis: Research and outline the demand for junk removal services in your target area, including potential customers and competitors.
• Marketing and Sales Strategies: Describe how you plan to attract and retain customers, your pricing model, and sales tactics.
• Operational Plan: Define the logistics of your operations, such as your business location, equipment needed, and staff requirements.
• Financial Projections: Provide an estimate of startup costs, ongoing expenses, revenue projections, and break-even analysis.
• Management Structure: Detail the organization of your business, including key team members and their responsibilities.

How does a Junk Removal business make money?

A junk removal business typically charges customers a fee for their services, which may include a flat rate or an hourly rate. Some businesses may also charge fees for specific items and/or materials. Additional revenue streams may include recycling and salvaging materials, such as scrap metal and other reusable items.

Creating a distinctive junk removal brand is crucial for standing out in a competitive market and building customer loyalty. Your brand should reflect your company's values, mission, and the unique services you offer. Consider these key points to develop an impactful brand:

• Define Your Brand Personality: Choose a brand voice and image that resonates with your target audience, whether it's professional and trustworthy, eco-friendly and sustainable, or quirky and fun.
• Create a Memorable Logo: Design a logo that is easily recognizable, reflects your brand personality, and is versatile for use on various marketing materials.
• Select a Color Scheme: Pick colors that not only complement your logo but also evoke the right emotions and associations with your brand.
• Develop a Tagline: Craft a catchy and concise tagline that encapsulates your brand's essence and makes it memorable to consumers.
• Consistent Brand Messaging: Ensure all your communications, from your website to your business cards, convey a consistent brand message that differentiates you from competitors.
• Brand Storytelling: Share your brand's story, why you started the business, and your vision for the future to create a personal connection with your customers.

How to come up with a name for your Junk Removal business?

Start by considering what words would best describe your business. Think of words that evoke the feeling of tidiness and organization, such as “Clean” or “Organize”. You can also include words that reflect the convenience of your service, such as “Ease” or “Hassle-free”. Once you have a few words that you like, try combining them to create an interesting and unique name. You can also consider combining your name or initials to the words that you have chosen. Finally, make sure to do a quick search to ensure that your name is available and not already taken.

Starting a junk removal business requires more than just a strong back and a truck; it demands formal recognition by the relevant authorities. One of the critical steps in legitimizing your venture is formalizing your business registration. Below are the steps you should follow to ensure your business is properly registered and compliant with all regulations.

• Choose a suitable business structure (e.g., sole proprietorship, partnership, LLC, or corporation) that aligns with your goals and offers the right balance of legal protection and tax benefits.
• Register your business name with your local or state government, ensuring it is unique and not already in use. This might include filing a “Doing Business As” (DBA) name.
• Obtain an Employer Identification Number (EIN) from the IRS for tax purposes, especially if you plan to hire employees.
• Apply for any required business licenses or permits specific to junk removal services in your area. This might include waste transportation or disposal licenses.
• Check with your local government for any additional requirements such as zoning permits, especially if you plan to operate your business from a physical location.
• Consider registering for state taxes, including sales tax and unemployment insurance tax, if applicable to your business operations.

Resources to help get you started:

Explore vital resources designed for junk removal entrepreneurs to gain insights on market trends, operational improvements, and strategies for scaling your business:

• International Waste Working Group (IWWG): Offers global perspectives on waste management, including junk removal, through publications and reports. https://www.iwwg.eu/
• Waste Advantage Magazine: A comprehensive source for news, best practices, and industry trends tailored to professionals in the waste and recycling industry. https://wasteadvantagemag.com/
• The Institute of Scrap Recycling Industries (ISRI): Provides market data, safety and compliance guidelines, and networking opportunities for recycling and junk removal businesses. https://www.isri.org/
• Waste Management World: Offers access to articles, case studies, and new technology insights for waste management professionals, including those in junk removal. https://waste-management-world.com/
• Environmental Protection Agency (EPA) – Waste: Contains regulations, data, and educational resources related to waste management ensuring your junk removal business complies with laws. https://www.epa.gov/waste

Starting a junk removal business requires compliance with local and national regulations. The process can vary depending on your location, but it is essential to secure the right licenses and permits to operate legally and safely. Here are some steps to guide you through this crucial phase:

• Research Local Regulations: Check with your city or county government to understand the specific licenses and permits required for junk removal in your area.
• Business License: Apply for a general business license which is a standard requirement for operating any business legally.
• Waste Transport License: You may need a special license to transport waste, so inquire with the Department of Transportation or local environmental agency.
• Waste Disposal Permits: Obtain permits for disposing of waste at local landfills or recycling centers, ensuring you comply with waste management regulations.
• Check Zoning Laws: Make sure your business operations align with local zoning laws, which could affect where you can base your operations or dispose of junk.
• Insurance: While not a permit, having the appropriate insurance is essential for protecting your business and complying with certain regulatory requirements.

What licenses and permits are needed to run a junk removal business?

To run a junk removal business, you may need a general business license from your local government as well as any other necessary licenses or permits, such as environmental permits or construction licenses. You may also need to obtain special insurance policies to protect yourself and your business. Additionally, depending on the specific services you offer, you may need to acquire additional licenses and permits required by your state or local municipality.

Starting a junk removal business involves crucial financial steps to ensure smooth operation and scalability. A dedicated business bank account is essential for managing finances, while securing funding is key for covering startup costs. Here's how to proceed with these important steps:

• Research different banking institutions and compare their business account options. Look for low fees, easy access, and any perks beneficial for small businesses.
• Prepare the necessary documents to open a business bank account, typically including your business license, EIN, and incorporation paperwork.
• Once the account is open, set up a system for tracking expenses and income, which is crucial for financial management and tax purposes.
• Assess your funding needs by creating a detailed business plan that outlines startup costs, operating expenses, and projected revenue.
• Explore various funding sources, such as small business loans, lines of credit, personal savings, or investors, and determine which options best suit your financial strategy.
• Apply for funding, ensuring you have a solid pitch and a clear understanding of the terms, such as interest rates and repayment schedules.

Setting the right pricing for your junk removal services is crucial to attract customers while ensuring your business remains profitable. Consider the competition, costs involved, and the value you provide to establish a fair and competitive pricing structure. Below are some guidelines to help you set appropriate pricing:

• Research local competitors' pricing to understand the market rate and position your services competitively.
• Assess your costs including labor, fuel, vehicle maintenance, disposal fees, and insurance to determine the minimum price for profitability.
• Consider volume-based pricing, charging by the amount of space junk takes in your truck, which is a common industry practice.
• Offer transparent pricing with no hidden fees to build trust with your customers.
• Factor in the type and weight of the junk, as heavier or more difficult to handle items may require additional fees.
• Provide free onsite estimates to give accurate quotes and avoid undercharging for large or complex jobs.
• Implement a minimum charge for small jobs to ensure they are worth your time and resources.
• Consider offering discounts for repeat customers, referrals, or for the removal of recyclable materials to encourage more business.

What does it cost to start a Junk Removal business?

Initiating a junk removal business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $25000 for launching such an business. Please note, not all of these costs may be necessary to start up your junk removal business.

Starting a junk removal business requires the right equipment and supplies to efficiently and safely handle various types of waste. You'll need to invest in tools that will help you perform your job effectively while also protecting your health. Below is a list of essential items you should consider acquiring:

• Vehicle: A reliable truck or van capable of hauling large items and heavy loads is crucial for transporting junk.
• Trailers: Open-top and enclosed trailers can expand your hauling capacity for larger jobs.
• Dollies and Hand trucks: These will help you move heavy items with ease, reducing strain on your body.
• Personal Protective Equipment (PPE): Gloves, safety glasses, hard hats, and steel-toe boots to ensure safety on the job.
• Tools: A set of basic hand tools for dismantling furniture or appliances and for general tasks.
• Straps and Ropes: For securing loads during transportation to prevent shifting and potential accidents.
• Tarps: To cover and protect items from the elements during transport.
• Cleaning Supplies: Brooms, dustpans, garbage bags, and disinfectants for site clean-up after removal.
• Recycling Bins and Containers: To sort and transport recyclable materials responsibly.

List of Software, Tools and Supplies Needed to Start a Junk Removal Business:

• Junk Removal Truck
• Dumpster Rental
• Safety Equipment
• Junk Removal Supplies
• Business Plan Software
• Accounting Software
• Marketing Materials
• Website Design Software
• Business Cards
• Insurance Coverage
• Licenses & Permits

Securing the right business insurance is crucial in protecting your junk removal business from potential risks and liabilities. It not only safeguards your financial stability but also builds credibility with clients. Here's a guide to obtaining the necessary insurance:

• Research different types of insurance policies such as general liability insurance, commercial auto insurance, workers' compensation, and umbrella insurance to understand which coverages are most suitable for your junk removal business.
• Consult with an insurance agent or broker who specializes in business policies. They can provide tailored advice and help you find the best coverage options that align with the specific risks associated with junk removal services.
• Compare quotes from several insurance providers to ensure you get comprehensive coverage at a competitive price. Don't just focus on the cost; consider the reputation of the insurer, customer service, and the ease of filing claims.
• Review the insurance requirements in your state or region, as some areas may have mandatory insurance laws for businesses like junk removal services. Ensure your policy meets or exceeds these legal requirements.
• Once you've chosen a policy, keep your insurance documents easily accessible and review your coverage annually to adjust for any changes in your business size or services offered.

Launching a successful marketing campaign is crucial to getting your junk removal business off the ground. It's about creating awareness, building your brand, and reaching potential customers effectively. Here are several strategies to kick-start your marketing efforts:

• Develop a Strong Online Presence: Create a professional website and establish profiles on social media platforms. Use search engine optimization (SEO) to improve your visibility in search results.
• Local Advertising: Place ads in local newspapers, sponsor community events, and consider direct mail campaigns to target local households and businesses.
• Offer Promotions: Give first-time customers discounts or bundle services at a reduced rate to attract new business and encourage word-of-mouth referrals.
• Network with Related Businesses: Partner with real estate agents, property managers, and contractors who can refer your services to their clients.
• Utilize Online Marketplaces: List your service on apps and websites dedicated to home services to reach customers actively seeking junk removal.
• Customer Reviews: Encourage satisfied customers to leave positive reviews online, which can significantly influence potential clients' decisions.

Expanding your junk removal business is crucial for long-term success and profitability. As demand for your services grows, scaling up effectively can help you meet customer needs and outpace the competition. Consider the following strategies to help your business reach new heights.

• Diversify Your Services: Add related services like recycling, donation pickups, or cleaning services to attract a broader customer base.
• Invest in Marketing: Increase your online presence with SEO, social media campaigns, and targeted ads to reach a wider audience.
• Upgrade Equipment: Purchase additional trucks or specialized equipment to handle larger or more complex jobs efficiently.
• Hire and Train Staff: Expand your team with skilled workers and provide training to ensure high-quality service.
• Explore New Markets: Research and enter new geographic areas with high demand for junk removal services.
• Franchise Your Business: Consider franchising as an option to grow your brand and business footprint.
• Build Partnerships: Collaborate with local businesses, real estate agents, and contractors to gain referrals and expand your network.
• Focus on Customer Service: Maintain high customer satisfaction to encourage word-of-mouth referrals and repeat business.

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Junk Removal Business Plan Sample

Jan.23, 2019

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Table of Content

Do you want to start junk removal business plan?

Do you want to start a junk removal business? Junk removal is a service in which you are required to haul the unwanted items as required by your customers never to be seen again.

If you are thinking about how to start a junk removal business, you need not worry, as this business does not require a very large investment for a business plan or the setting of an office.. You can start the service by yourself or by renting a few vehicles and hiring a few persons.

In either case, you have to document the operational and financial objectives of your business and how they are to be realized in the form of a junk removal business plan . If you are wondering how to write one, we are here to help you by providing this sample business plan for a junk removal startup named, ‘Orlando Junk Removal’.

Executive Summary

2.1 the business.

Orlando Junk Removal will be a bonded, insured and licensed junk removal business for both residential and commercial junk removal, with its office located in Bryn Mawr Street, Orlando, USA. Business will be owned by Bradley Hanks who has been driving trucks for two years in Orlando. To yield profit in the field he is in, he has decided to start his own business with trucks.

2.2 Management

If you are starting a junk removal business , your success will be dependent upon your management, and how quickly do you respond to a request of junk removal. Thus, before starting a hauling business , Hanks has decided to train his staff for fast and efficient service.

He has hired a general manager to help him preparing for the startup and to ensure that the junk is transported properly to recycling or disposal facilities.

2.3 Customers

Our target customers will include people living in residential communities, commercial buildings and real estate agents. They will require our services for removal of junk from their home, offices, companies and construction sites.

2.4 Business Target

We aim to become the best junk removal business in Orlando within next five years of our startup. Our financial target to be achieved in one year is to balance the initial cost of the startup with earned profits by the end of the first year.

Company Summary

3.1 company owner.

Orlando Junk Removal will be owned by Bradley Hanks, who has been driving trucks for two years. Hanks has earned a great fame and trust during his service due to his honesty and responsibility.

3.2 Why the Business is being started

After receiving the shares from his legacy, Hanks wanted to invest in a business to yield much more than he got. As he is experienced with trucks and had relations with several truck drivers during his job, so he decided to opt for the junk removal business.

He won’t face any difficulty as he knows all about  how to start a garbage collection business , where to dispose the junk and what are the methods to dispose various types of junk.

3.3 How the Business will be started

Although Hanks had a profound knowledge about starting junk removal business, yet he decided to work sysytematically to be organized and managed. The first step he took was to make a junk removal business plan  with the help of financial experts and marketing analysts.

Hanks has decided to start the business by procuring an office on rent in Bryn Mawr St., Orlando. He will rent 5 trucks initially with the services of 8 truck drivers. Truck drivers will be given a two week training to remove and transport the junk efficiently and to fix any technical problem regarding trucks. A general manager will help in organizing the deals timely, an IT expert will be hired to manage the company’s official and social sites.

The start-up requirements are as follows:

Services for customers

Hanks has decided the services he will provide to his customers before framing junk hauling business plan . If you are looking for how to start a junk removal company  and which services to provide initially, you can take help from here.

• Residential Junk Removal: We’ll take away all the unwanted objects from your house such as old electronic devices, used rugs, mattresses, construction waste, furniture and other appliances etc. We’ll also sweep the area where we worked before leaving.
• Commercial Junk Removal: If local trash carriers have refused to haul your excess trash or garbage, we will be there to help you in removing your office furniture, cabinets, cubicles, construction waste and much more.
• Donating your unwanted items: We’ll take your unwanted items to donation and charities if you want us to do so.
• Transporting Construction Material: We will offer discounts to contractors to contact us for transporting and hauling the required construction equipment and material for their work.

Our services can either be acquired by visiting our office or by our official website. Customers can also pay us via PayPal or online bank transfer.

Marketing Analysis of Junk Removal Business

If you are starting a junk hauling business , the most important part of your business will be the accurate market analysis. You will have to face much more difficulties after starting a trash removal business , if you fail to adequately market your services. So, if you are taking a junk removal business start up , focus on to make a complete and effective marketing plan.

An effective marketing plan includes thorough analysis of the market in which you are going to serve, understanding of the demands of your customers, planning to take a lead upon your competitors and finally methods to advertise your services.

Hanks acquired the services of an expert marketing analyst to do an accurate analysis of market in which Hanks was starting a junk removal business i.e. Orlando. You can also take help from here if you are looking for junk removal business tips .

5.1 Market Trends

The junk removal business has its scope round the year especially in the active seasons of spring and summer. According to a report by IBISWorld, there are more than 11 thousand junk removal business start-ups currently running in the United States. Moreover, this business has generated a revenue of $49 billion in 2018. According to IBISWorld, the waste removal businesses have employed more than 217,000 people in the US. This business is one of the few businesses which have seen a constant increase in revenue along with the increase in business locations with time.

Junk removal services are required by every business and every commercial or residential estate. After identifying these market trends, it is clearly evident that the junk removal business start up is always blooming and can be immensely profitable provided that you plan your business successfully.

5.2 Marketing Segmentation

If you are able to identify that who will be your customers before planning about how to start junk removal business , you will be at great ease. After identifying your target customers, you will be able to understand their demands and deciding the services you should provide them.

Our target market will comprise of the residents of Orlando, commercial estate owners or managers of other companies. We have divided our customers in three groups to focus on the requirements of each group separately.

The detailed marketing segmentation of our target audience is as follows:

5.2.1 Commercial Organizations: The biggest consumer of our services comprises of the companies and commercial estate owners. The companies can contact us for doing any heavy lifting, and taking their electronic waste, furniture or paper waste for recycling or proper disposal.

Our trucks will also pick up your construction waste such as bricks, concrete, damaged wood etc. if you are a construction company.

We’ll offer various discounts to this group of our customers to build long term relations with them for repeated offerings of junk removal.

5.2.2 Residents: Our second target group will be the people living in Orlando. They will require our services whenever they want to remove junk from their house in bulky amount or whenever they want to donate their appliances and used things to a charity.

The things they want us to remove can be yard waste removal, mattress disposal, garbage removal, refrigerator removal, electronic appliances such as television disposal etc. We ensure this group that our workers won’t leave junk or any mess on the place, we will also sweep the area so as to make it again ready for the customer’s use.

5.2.3 Food Organizations: Our third target group consists of the large hotels and food manufacturing organizations which will require proper disposal of their garbage almost every day. We’ll also offer various discounts to this group, as to get repeated orders from them.

The detailed market analysis of our potential customers is given in the following table:

5.3 Business Target

You must set the short and long term targets you want to achieve before planning about how to start a trash removal business , this pre planning will help you to work tirelessly for your aim. We i.e. Orlando Junk Removal aim to become the best junk removal business start up in Orlando within next five years of our startup. Our financial target to be achieved in one year is to balance the initial cost of the startup with earned profits by the end of the first year.

Our targets to be achieved later include achieving the net profit margin of $10k per month by the end of the first year, $15k per month by the end of the second year, and $25k per month by the end of the third year.

5.4 Product Pricing

Before you think about how to start a junk hauling business , you must decide whether you will compromise the quality of your service or your earning. It will be better to save some resources for the early few months of the launch, as you will probably need to keep prices low in the initial stages.

After considering the demands and quality of his service, Hanks has decided to price all his services in the similar ranges as of his competitors. The price, however, is not fixed, it is dependent upon the type and amount of junk you want to haul.

After knowing how to start a trash hauling business , identifying market demands and trends, the next step is to formulate a strategy to introduce and sell your services. After exploring on how to start a hauling company , you must explore what is missing in your current competitors, and then develop a business strategy to do better than them in the market.

6.1 Competitive Analysis

We are starting our Orlando Junk Removal service from scratch, yet we are confident that we’ll take a lead upon all our competitors in a very short period of time. All our workers are well trained to do high-quality work and unlimited revisions until the client is fully satisfied. Our workers will value your property and will maintain a professional appearance while interacting with you.

Although all our workers are highly trained, yet we haven’t left even a single deficit in our strategy, our company is general liability insured and property insured, and all our employees are insured each having their employee identification number. So, while taking services from our company, you will be totally stress-free and will not be liable to pay for any damages.

6.2 Sales Strategy

• We will advertise our business in relevant business magazines, newspapers and social media
• We will introduce our services to various companies by sending introductory letters and brochures
• We will offer a 25% discount on our services for the first three months of our launch and 20% discount on receiving order from the same client

6.3 Sales Forecast

6.4 sales monthly, 6.5 sales yearly, personnel plan.

The success and failure of a startup is greatly dependent upon its workers. Keeping in view the services you will provide, you must make a personnel plan, earlier than the launch of the business.

7.1 Company Staff

If you need help regarding how to start a trash out business or are facing trouble in determining the staff you will need, you can take help from this sample personnel plan of Orlando Junk Removal Company.

• 1 General Manager to manage the business operations
• 1 Accountant to maintain financial records
• 2 Sales Executives responsible for marketing and discovering new ventures
• 8 Truck Drivers trained for hauling junk
• 1 Technician to handle serious technical issues of trucks and to teach the drivers about resolving small technical issues
• 1 Web Developer/IT Expert to manage company’s websites and online payments
• 1 Customer Representative to interact with customers and record their orders

7.2 Average Salary of Employees

Financial plan.

Before thinking about how to start a waste management company , you have to decide several things including the amount you can spend on your startup. If you are going to start junk hauling business on a large scale, you will, of course, need a large amount to invest on buying trucks and required equipment and hiring many people. However, if you want to start on a smaller scale, it will be both easier and better. By smaller scale it means to just work by yourself or by taking a few trucks on rent and hiring a few people.

In each case, you have to map in the form of a financial plan all the details about the startup costs and strategy of your company to recover the startup costs by the earned profits and to yield more and more profit. Hanks sought the services of an expert financial adviser to make an efficient and detailed financial plan for his business. If you are new to writing a business or financial plan by yourself or if you are still looking for how to start a garbage business , you can take help from this sample junk removal business plan free of cost.

8.1 Important Assumptions

 8.2 brake-even analysis,  8.3 projected profit and loss, 8.3.1 profit monthly, 8.3.2 profit yearly, 8.3.3 gross margin monthly, 8.3.4 gross margin yearly, 8.4 projected cash flow, 8.5 projected balance sheet,  8.6 business ratios.

Download junk removal business plan sample in pdf

OGS capital writers specialize in business plan themes such as carpet cleaning business plan , business plans for cleaning , business plan for laundromat , pressure washing business plan , business plan for a roofing , business plan for PC fix , etc.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

2 thoughts on “ Junk Removal Business Plan Sample ”

I started junk removal first then I just picked up 10-yard dumpsters on wheels

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How to Start a Junk Removal Business in (2024) in 7 Easy Steps

Free Junk Removal Business Plan Template [Updated 2024] Template

10 Min Read

The junk removal industry is thriving with Americans discarding up to 1,100 kilograms of waste yearly. This rapid growth, averaging nearly 5% annually, signals a lucrative opportunity for new businesses.

In 2021, junk removal companies averaged revenues of $8.3 million, largely because most people find disposing of heavy items challenging.

If you’re thinking about how to start a junk removal business then you’re at the right place. This guide will help you understand the necessary skills and market demands that can position you for success in this expanding sector. So, without further ado let’s get started!

Factors to Consider Before You Get into the Market

Starting a junk removal business is an exciting venture, but there are essential steps to consider first.

Research Your Target Market

The type of junk removal job you offer—targeting homeowners or commercial businesses—will shape your market. Investigate what competitors charge and the specific needs of your potential customers. This research helps you set competitive rates and understand operational costs.

Understand Regulations

As a junk removal business owner, you should familiarize yourself with local, state, and federal junk disposal and recycling laws. Ignoring these can result in hefty fines. Also, remember that handling hazardous waste often requires special licenses.

Know Your Competition

Beyond market research, delve deeper into the local junk removal businesses. Study their business models, pricing, and customer base. Understanding what makes them successful is crucial. If needed, hire a competitive analyst for more nuanced insights.

Gain Hands-on Experience

Consider working in the industry first. This experience offers insights into the business, from operational challenges to discovering potential value in discarded items. It’s also a chance to understand the dynamics of working with different customer bases, like households versus companies.

Find Hidden Opportunities

While working, you’ll learn to spot items that can be recycled for cash or have resale value. This knowledge can be financially beneficial and help with tax considerations.

Identify Your Strengths and Networking Opportunities

Working in this field shows you what you’re good at in the business, helps you meet others in the industry, and introduces you to potential customers.

Starting your own business requires knowing the market, following the rules, studying competitors, getting experience, and spotting chances. With the correct method, you can make valuable things out of trash.

Now that you’ve learned about the important factors involved in this business, let’s explore how you can start a junk removal business in seven easy steps.

7 Essential Steps to Starting a Junk Removal Business

• Prepare a business plan
• Junk removal business registration
• Get your finances in order
• Get business licenses, permits, and Insurance
• Get the necessary equipment
• Determine your pricing strategy
• Market your business to bring in clients

1. Prepare a Business Plan

Starting a business is exciting, but securing funding can be tricky. That’s where a strong business plan comes in. It’s like a detailed roadmap, guiding you and potential investors through your vision and financial projections.

To help you get ready like a pro, you can download your junk removal plan here. This plan covers it all: your big ideas for the business, how you’ll get more customers, and, super important, how you’ll manage the money.

Here’s what a business plan includes:

• Executive Summary
• Company Overview
• Product and Services
• Market Analysis
• Competitive Analysis
• Sales and Marketing
• Management Team
• Operations Plan
• Financial Plan

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2. Junk Removal Business Registration

First, you need to select a unique name for your junk removal business. Next, ensure you have the green light to operate that name in your area.

Regulations vary across locations, so research the specific permits and licenses required. For example, to open your junk business in Denver you require a waste hauler license .

Here’s what you need to do next:

Decide on  Your Business Structure

You need to decide the legal structure for your junk removal business before registering it. This decision will influence your tax payments, liability in lawsuits, paperwork, and various other regulations. The common types of structures include:

• Sole proprietorship
• General partnership
• Ownership with limited personal liability (Limited liability company, LLC)
• Limited partnership
• Corporation

Forbes recommends using a Limited Liability Company (LLC) for your junk removal business.

Find a Registered Agent

Every LLC and corporation needs a registered agent. This person or company will take care of all the legal stuff and official letters for your business. They have to be in the same state as your business and need a real address for getting papers.

Register Your Business and Get an EIN

You’ll need to register your business with your state. How you do this can vary, so it’s a good idea to talk to your state’s Secretary’s office. You must also get an Employer Identification Number (EIN) from the IRS . Think of it like a social security number for your business.

Register for Taxes

And don’t forget taxes! You need to be ready for both state and federal taxes. This means setting up sales tax, income tax, and if you have employees, taxes for them too. Make sure you’re all set in this area.

3. Get Your Finances in Order

After completing all the necessary paperwork, your focus should be on managing your finances. It’s crucial to determine the amount of money you will need to start and run your business smoothly.

Typically, the initial junk removal startup costs range from $7,500 to $28,000 , and most of it goes into purchasing a truck. The cost of the truck varies depending on its size and whether it’s new or used.

To save money, you can start with a smaller or older truck and upgrade to a larger one as your business grows.

Creating a detailed budget is equally important as understanding the initial investment.

When planning a budget, consider the following expenses:

• Wages to be paid
•  Insurance expenses
• Cost of tools and equipment
•  Required licenses

Overestimating your income and spending on unnecessary things can quickly make your small business a financial mess.

After creating a budget, the next step is to figure out where to get the necessary funds. There are a few primary methods to consider:

• Use your savings: A classic self-funded approach, ideal for smaller needs.
• Bank loan: Reliable, but requires a convincing business plan.
• Credit cards: Quick access, but high interest rates can bite.
• Angel investor: Rare, but potentially a big boost.

For most, savings and bank loans are the most common paths. Choose the one that best fits your financial needs and repayment ability.

4. Get Business Licence, Permits, and Insurance

Starting a junk removal business involves understanding many legal rules, which might seem complex. To make things easier, you can look up the U.S. Small Business Administration (SBA) website . It has all the necessary list of the permits and licenses you may need for your business and others too. Consider it a guide to begin with, but remember you might also need to follow extra rules in your local area.

Why do you need junk removal business Insurance?

Imagine this: you’re on your way to a job, and there’s a car accident. That’s a real headache, right? Not just the damage but the lost time and money too.

Business insurance is your safety net for these kinds of surprises. If you’re in the junk removal game, focus on these three:

• General Liability Insurance: Quickly covers work-related accidents or damage.
• Commercial Auto Insurance: Handles costs from any work vehicle accidents.
• Workers’ Compensation Insurance: Pays for employee injuries, covering medical bills and lost wages.

These insurances act fast to protect your business from unexpected costs and keep operations smooth.

5. Get Tools, Equipment, and Vehicles

Once the legal hurdles are cleared, building your arsenal of tools and equipment becomes your next priority. This is the bedrock of your junk removal operations.

Garbage bins, shovels, bags, rakes, and tarps are your frontline equipment. They help efficiently collect and manage discarded items.

Transportation

A reliable pickup truck is your workhorse. It facilitates hauling junk from client sites to disposal facilities. Choose a size based on your business scale and anticipated load volumes.

Safety First

Remember, some materials can pose risks. Invest in proper safety equipment like gloves and masks to protect your crew from potential hazards.

Scaling Your Operation

As your junk removal business grows, adjust your equipment and workforce accordingly. Bigger jobs might require additional bins, a larger truck, or more team members.

6. Determine Your Pricing Strategy

It’s awesome to earn money from junk removal jobs but to make a profit; you must ensure your prices cover your labor, materials, and other costs. Here’s how you can create a pricing strategy for your waste removal business:

Choose How You’ll Charge

You can charge based on:

• How long does it take to clean up their junk?
• How much does their junk weigh?
• How much room does it take in your truck (measured in cubic yards)?

It’s smart to have prices for all three options, and then pick the best one for each job. Here’s how to make sure you’re charging fairly:

Look at What Other Successful Junk Removal Business Owners Are Charging

Check out what other junk removal companies charge in your area. Don’t just copy them, but use their prices as a ballpark for what customers are willing to pay.

Think about your overhead costs

Fuel, labor, and truck wear and tear can add up to your costs. Make sure your prices cover these.

Include Other Costs

Don’t forget to add in the cost of materials, the time it takes to travel for waste disposal, and taxes, and aim for at least a 15% net profit margin on top of all this.

7. Market Your Business to Bring in Clients

Your junk removal services are all set to go—now it’s time to get your first customer. Try these marketing ideas for junk removal to draw in customers and start getting jobs:

Building a Website

84% of customers think a business looks more trustworthy if it has a website than just using social media. You can easily create one operating platform like Wix or WordPress.

Start with a simple template and tell the story of your company. People love hearing about how you started; adding high-quality pictures will make your site more engaging. Make sure your contact info is easy to spot!

Advertising

This part is super important. You’ve got to be where your competitors are, but try to do it better. Top spots for advertising your junk removal business include Google Ads, Yelp, Home Advisor, Craigslist, Facebook, Instagram, yard signs, and graphics on your trucks.

Also, hand out professional business cards whenever you can – you never know when you might meet a potential customer. Get your business listed in local directories and encourage your customers to leave reviews on sites like Yelp and Angie’s List.

Sales Strategy

Think about what makes your service unique. You can guarantee to be there within 24 hours after someone calls, or offer discounts to returning customers. Find something that sets you apart and make sure people know about it. This will help you stand out in the junk removal business.

Next Steps to Starting a Junk Removal Business

Junk removal companies will always be around, but making them grow isn’t always easy. Success is possible, but you need a good junk removal business plan, hard work, and the ability to adjust to new trends and changes.

Remember to stick to your core values, keep your eyes on the market, and implement the tips we’ve shared throughout this article. By doing so, you’ll increase your chances of building a successful and lasting junk removal business.

The Quickest Way to turn a Business Idea into a Business Plan

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Frequently Asked Questions

How much money can you make in a day doing junk removal jobs.

Most Loaders earn between $70 to $570 for each job. How many jobs you get can vary. It depends on the size of the trash, what kind of truck you use, and how big the job is.

What equipment and vehicles are essential for starting a junk removal business?

You’ll need the right tools for a smooth and effective junk-hauling business. To start, you should have:

• Trucks or trailers for moving waste
• Hand trucks and dollies
• Ramps for lifting heavy items
• Safety gloves and gear
• Shovels and brooms for cleaning sites
• Bins, containers, or tarps for sorting and organizing
• Straps and bungee cords for safe transport
• Special tools for certain types of waste

How much capital do I need to start a junk removal business?

Starting a junk removal company can cost between $7,500 to $28,000 . The most significant cost is usually the down payment on a vehicle, which varies based on the vehicle’s size and age.

Can I operate a junk removal business from home?

Absolutely! You can manage it right from your home. You’ll need a truck, some tools, and a bit of marketing money. No fancy office or warehouse needed.

How to calculate debris removal costs?

For yard waste, it’s about $18 for every cubic yard. Household junk? That’s typically $22 per cubic yard. But construction waste is the priciest, averaging $95 per cubic yard, as it’s usually bulkier and tougher to handle.

About the Author

Shyam Dua is a seasoned tax professional with 40+ years of experience & a mentor at SCORE. He stands out due to his exceptional business planning skills. With a keen eye for detail and a strong financial acumen, Shyam crafts compelling business plans that pave the way to success. A CPA with a philanthropic heart, Shyam's strategic expertise, and dedication make him an invaluable asset in shaping thriving business ventures. Read more

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How to Come Up With a Good Junk Removal Business Plan

Opening a junk removal business is a big decision. take your time..

Deciding to invest in a junk removal business may be one of the best decisions you will ever make in your life. This kind of a business is great for those who love solving problems for others, love working with other people, and don’t mind getting their hands dirty. Now, before you start gathering up your life savings, investing in a junk removal business system , or buying equipment for your own business, there is one thing you need to do first: you need to come up with a junk removal business plan .

How do you put together a business plan for an enterprise that revolves around other people’s trash? Here are some pointers that may be helpful:

Assess Your Target Market

Logic might tell you that if a market already has a successful junk removal company operating in it, you probably shouldn’t open your own in that area. This couldn’t be farther from the truth. Junk Doctors  was started in an area with 1-800-Got-Junk, Junk King, College Hunks, and Stand Up Guys franchises all competing for customers – and we quickly outpaced our competition. In fact, starting in an area that has some competition is actually a  good thing, because it indicates a demand for junk removal in that market. Of course, a market with greater supply than demand could be problematic (and an uphill battle at least), but markets that are not oversaturated with junk removal companies are ripe for the taking.

While assessing your target market, there are also several other factors to consider. How is the traffic in that area? Where are the disposal sites and how much do they charge? What items do they accept? Are there applicable local regulations or required permits? What is the average household income? Is the area growing or shrinking? How much construction is being done?

There are many more questions you will need to answer with hard data before launching your junk removal business, but this is a good place to start. If you need assistance with target market research and analysis, JRA can help .

Research Your Junk Removal Competitors

In a business as lucrative and rapidly growing as junk removal, expect to find multiple franchises and local companies operating in your market. Find out which competitor is dominating the area you are planning on targeting, as well as the other companies that run in the same region. Focus on the business that is dominating your market. Learn about their pricing schemes, what they can and cannot haul, what their marketing strategies are, and what makes them the dominating junk removal business in the area.

Research the Cost of Starting a Junk Removal Company

Of course, you cannot start and run a business without money. Like they say, you have to spend money to make money. Many variables will significantly affect the total cost of starting a junk removal company. While most of these are dependent on the details of your particular area, the factor that will most impact your startup cost is the business model you decide to follow. Until recently, you had two options here: go at it alone, or purchase a franchise.

Going at it alone is the cheapest option. You’ll need a truck , an office space (which can be your house or a storage locker when you’re just starting out), uniforms, some advertising, and at least one helper. That’s it. Your overhead costs are quite low, you own 100% of your business, and you make your own decisions. However, this can leave you without support that could really help you grow into a highly successful junk removal company quickly.

Franchises offer this support. Their established systems direct your daily operations and help assure you of some level of success. However, franchises are restrictive, can cost a ton of money up front, and require you to pay ongoing royalties for as long as you operate your business. In addition, using a franchise means you don’t actually own 100% of your business – one of your best selling points with customers. You’re handcuffed to that franchisor, and there’s nothing you can do about it.

Now, however, there is a third option. The JRA Complete Business Package  offers all the ongoing support and resources of a franchise system, as well as the training and knowledge you need to build a really successful junk removal business – all without the restrictive rules, commitment, and royalties of a franchise. With JRA, you’re the business owner – you just have access to the resources to help you whenever you need them.

Outline Your Junk Removal Business Operations Plan

Once you are armed with all the information you need to start a junk removal business , you should create a business plan. This may sound like a scary or daunting task, but it’s actually quite simple. Just write down your ideas and strategies for running your business and organize those ideas. You can start by stating your company’s objectives and expectations. From there, work backwards until you have a complete plan for how to accomplish those objectives.

Write down the steps for getting your business up and running , your pricing strategy , how you will market your business , and so on. You’ll then need to anticipate and outline your costs, and determine exactly where that money will come from (your savings, family and friends, etc.). You should also project your potential ROI with this business plan so that you will have a goal to achieve – and absolutely crush!

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Garbage Collection Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Green & Eco-friendly » Waste Management » Garbage Collection

Are you about starting a garbage collection company? If YES, here is a complete sample garbage collection business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a garbage collection business . We also took it further by analyzing and drafting a sample garbage collection business marketing plan template backed up by actionable guerrilla marketing ideas for garbage collection businesses. So let’s proceed to the business planning section.

Why Start a Garbage Collection Business?

One of the business opportunities available in the waste management sector that an aspiring entrepreneur can start in the united states of America is garbage collection.

The truth is that if you settle for this business, you are sure of making huge returns from your investment because garbage is generated on a daily basis and of course reliable statistics shows that the waste collection industry in the United States of America rakes in a whopping sum of $45 billion dollars annually.

If you want to partake in this thriving industry, then you need to obtain the necessary licenses and permits. Although there are competitions at various levels in the industry, but if you are able to come up with a good business strategy, then you are sure of getting your own fair share of the market in the industry.

If you know that this type of business is what you want to do after you must have conducted your market research and feasibility studies, then you should proceed to write a business plan; a detailed blue print of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your service.

The truth is that it is one thing to have a fantastic idea cum business plan, and another thing for the business plan to translate to profits, which is why it is important to assemble a team of experts to work with if you want to be successful with your garbage collection business.

Below is a sample garbage collection company business plan template that will help you successfully write yours without much stress.

A Sample Garbage Collection Business Plan Template

1. industry overview.

Garbage collection business is grouped under the waste collection industry and companies that operates in the industry collect hazardous and nonhazardous waste and recyclable materials. Nonhazardous waste includes municipal solid waste (household waste) and industrial and commercial waste.

Transfer stations where waste is transferred from local vehicles to long-distance automobiles for transport to disposal facilities are also included in the Waste Management industry. It is important to state that this industry does not account for government-provided services of a similar nature.

A close study of the industry shows that the Waste Collection industry has benefited from the recovery of the industrial, construction and commercial business sectors. As these sectors expands, it is natural for them to produce more waste.

So also, steady demand from the residential market has helped stabilize the overall revenue generated by the waste collection industry. Going forward, the demand for waste collection services will continue to be driven by population growth, privatization and business creation.

Additionally, the industry will benefit from the public’s growing interest in the recycling industry. The companies holding the largest market share in the Waste Collection Service in the US industry include Waste Management Inc., Republic Services Inc. and Waste Connections Inc.

Statistics has it that in the United States of America alone, there are about 11,824 licensed and registered waste collection companies scattered all across the length and breadth of the country and they are responsible for employing about 217,713 employees.

The industry rakes in a whooping sum of $45 billion annually (benched mark in 2018) with an annual growth rate projected at 1.7 percent within 2013 and 2018. A recent report published by IBISWORLD shows that the distribution of establishments in the Waste Collection industry across the United States largely reflects the size and distribution of the US population and economic activity.

Densely populated areas that are particularly economically active tend to generate large quantities of waste, necessitating the presence of greater numbers of industry establishments. The report further stated that other factors that contribute to the relative concentration of industry establishments in a geographic location include the structure of the local economy and the commitment to recycling.

Please note that we are not ruling out the fact that starting and operating a garbage collection company can be challenging, but the truth is that it can be rewarding at the same time.

One good thing about the industry is that it is open for both big time investors who have the capacity to start the business with fleet of garbage collection trucks and aspiring entrepreneurs who may want to start with just one garbage collection truck.

2. Executive Summary

Inland Garbage Collection and Management Company is a registered and licensed waste collection company that will be based in Cheyenne – Wyoming. We have been able to secure all the relevant licenses and permits to operate in the United States.

We will ensure that we abide by the rules and regulations guiding the industry and we will only hire experienced and qualified drivers with valid commercial driver’s license (CDL) to handle our garbage collection trucks.

We are in business to provide services such as ash and brush collection and hauling, waste and refuse collection and hauling, recyclable material collection and hauling, removal and hauling of rubble, construction and demolition debris, waste transfer station operation, amongst other related services.

We will provide daily services all around Cheyenne – Wyoming and neighboring cities. Inland Garbage Collection and Management Company will ensure that all our garbage pickups are on time and we supersede the expectation of our customers.

We will only put trucks that are in top shape on the road, and all our cleaners and drivers will be trained to be extra careful, pay attention to details, courteous, friendly and to abide by the rules and regulations of the industry. We will maintain and take proper care of our cleaners and drivers as well as our trucks.

We are quite optimistic that our values and quality of service offering will help us drive our garbage collection business to enviable heights and also help us attract the number of clients that will make the business highly profitable.

We are quite aware that in order to become the number one choice in our city, we must continue to deliver quality services and that is exactly what we will do.

We are open to the use of latest technology in industry. No doubt our excellent customer service and the quality of services we offer will position us to always welcome repeated customers and handle massive deals from large estates, shopping malls, hotels and business complexes.

Our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Inland Garbage Collection and Management Company is a family business that is owned by Perry Wilberforce and his immediate family members. Perry Wilberforce a native of Cheyenne is a graduate of in Business Administration from the University of Arkansas and MBA in Finance from the University of Tulsa. He has over 12 years’ experience in the waste management industry.

3. Our Products and Services

Inland Garbage Collection and Management Company is established with the aim of maximizing profits in the waste collection industry.

We want to compete favorably with the leading garbage collection companies in the United States which is why we have put in place a competent quality assurance team that will ensure that every service carried out meets and even surpass our customers’ expectations. Our service offerings are listed below;

• Ash and brush collection and hauling
• Waste and refuse collection and hauling
• Recyclable material collection and hauling
• Removal and hauling of rubble, construction and demolition debris
• Waste transfer station operation

4. Our Mission and Vision Statement

• Our Vision is to build a business that will take care of garbage collection for major residential estates and shopping malls in the whole of Cheyenne – Wyoming.
• Our mission is to deploy professional and environmental friendly ways of garbage collections in inner cities; we want to become a standard of how garbage collection companies should operate in the whole of the United States of America.

Our Business Structure

We intend starting the business with a handful of full time employees and some of the available driving roles will be handled by qualified contract drivers. Adequate provision and competitive packages has been prepared for all our employees.

At Inland Garbage Collection and Management Company, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. For now, we will contract the maintenance of our trucks to service provider, we don’t intend to maintain a very large overhead from the onset.

But as soon as the business stabilizes, we will assemble our own in – house maintenance team. Below is the business structure and the roles that will be available at Inland Garbage Collection and Management Company;

• Chief Operating Officer (Owner)

Admin and HR Manager

Transport and Logistics Manager

• Marketing and Sales Executive (Business Developer)
• Garbage Collectors

Waste Truck Drivers

• Customer Services Executive/Front Desk Officer

5. Job Roles and Responsibilities

Chief Operating Officer (Owner):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Accountable for coordinating drivers, vehicles, loads and journeys
• Answerable for developing and confirming schedules
• In charge of planning routes and load scheduling for multi-drop deliveries.
• Responsible for booking in deliveries and liaising with customers.
• Ensuring all partners in the supply chain are working effectively and efficiently to ensure smooth operations.
• Directs all transportation activities.
• Develops transportation relationships.
• Responsible for monitoring transport costs.
• Deals with the effects of congestion.
• Confronts climate change issues by implementing transport strategies and monitoring an organization’s carbon footprint.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carrie out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities.

Marketing and Sales Executives (Business Developers)

• Identifies, prioritizes, and reaches out to new clients, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts
• Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Documents all customer contact and information
• Represents Inland Garbage Collection and Management Company in strategic meetings
• Helps to increase sales and growth for Inland Garbage Collection and Management Company.
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managers with financial analyses, development budgets, and accounting reports
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Accountable for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company
• Assists in loading and unloading garbage.
• Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
• Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment, such as hazardous material placards.
• Assists the transport and logistics manager in planning their route
• Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
• Complies with waste truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
• Collects and verifies delivery instructions
• Reports defects, accidents or violations

Garbage Collectors and Cleaners

• Responsible for handling core services such as, ash and brush collection and hauling, waste and refuse collection and hauling, recyclable material collection and hauling, removal and hauling of rubble, construction and demolition debris , waste transfer station operation, and hauling amongst other related services
• Handles any other duty as assigned by the transport and logistics manager

Customer Service Officer

• Welcome clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to potential clients when they make enquiries
• Receives parcels / documents for the company
• Distributes mails in the organization
• Handles any other duties as assigned by the human resources and admin manager.

6. SWOT Analysis

As a result of our vision, our mission and the kind of business we want to set up, we don’t have any other option than to follow due process. Following due process involves hiring business consultant to help us conduct SWOT analysis for our business.

Inland Garbage Collection and Management Company hired the services of a seasoned business consultant with bias in startups in the U.S. to help us conduct a thorough SWOT analysis and to guide us in formulating other business strategies that will help us grow our business.

Here is a summary from the result of the SWOT analysis that was conducted on behalf of Inland Garbage Collection and Management Company.

Strong management, strong fleet operations, our garbage collection network serves some of the largest population centers in Cheyenne – Wyoming, size advantages, cost advantages, customer loyalty and strong reputation amongst domestic and industry players is what we can boast of.

Our business is centrally located in a densely populated residential estate in Cheyenne – Wyoming; our location is in fact one of our major strength. We are also not neglecting the power of our workforce and management.

Looking through our Business model, one of the business weaknesses that may pose a challenge to us is insufficient flow of finance to handle key issues such as purchase of brand new waste collection trucks and promotion of the business.

• Opportunities:

Come to think of it, there is no household, business complex or shopping mall that does not generate garbage which means that a garbage collection company will always be in business as long as people live in the location that they operate in.

Some of the threats that we are likely going to face are mature markets, bad economy (economy downturn), stiff competition, volatile costs, and rising fuel prices.

Other threats that are likely going to confront Inland Garbage Collection and Management Company is unfavorable government policies , seasonal fluctuations and of course emergence of new competitors within the same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

The market trends in the industry especially in the United States is indeed dynamic and at the same time challenging. But one thing is certain, once a garbage collection and management company can gain credibility, it will be much easier for the company to secure permanent deals/contracts with waste generators who are compelled by the law in the United States.

Latest trends show that the Waste Collection industry has benefited from the recovery of the industrial, construction and commercial business sectors. As these sectors expand, it is natural for them to produce more waste. So also, steady demand from the residential market has helped stabilize the overall revenue generated by the waste collection services industry.

Going forward, the demand for garbage collection services will continue to be driven by population growth, privatization and business creation. Additionally, the industry will benefit from the public’s growing interest in the recycling industry.

In conclusion, fuel is one of the primary input costs for this industry, as it is used to power the trucks. Therefore, higher fuel prices increase industry costs. The price of diesel and other fossil fuels used to power waste collection vehicles is expected to increase in 2018, which presents a potential threat for the industry.

8. Our Target Market

Prior to launching our garbage collection company, we are certain that there is a wide range of households and businesses who cannot successfully dispose their garbage without a garbage collection company like ours. We will ensure that we develop strategic pacts with corporate organizations, and estate managers et al. This will give us several options to generate revenue for our company.

We have conducted our market research and survey and we will ensure that all our garbage collection services are accepted in the marketplace. Below is a list of the people and organizations that we will specifically market our services to;

• Residential buildings (households)
• Business complexes
• Shopping malls
• Restaurants
• Public facilities
• Construction sites
• Printing Companies
• Photo processing centers / Photo Labs

Our competitive advantage

Inland Garbage Collection and Management Company no doubt is a new garbage collection company, which is why we took our time to do a thorough homework before launching the business.

We were able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are trust, honesty, good garbage collection network and excellent relationship management, strong management, strong fleet operations, etc.

Our garbage collection and transportation network serves some of the largest population centers in the Cheyenne – Wyoming and we have strong reputation amongst domestic industry players.

All our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Marketing Strategy and Sales Strategy

The marketing strategy adopted by Inland Garbage Collection and Management Company is going to be driven basically by professionalism, excellent customer service, honesty and quality service delivery. We will ensure that we build a loyal customer base.

We want to drive sales via the output of our jobs and via referral from our satisfied customers. We are quite aware of how satisfied customers drive business growth especially businesses like garbage collection and management services.

Inland Garbage Collection and Management Company is strategically located and we are going to maximize the opportunities that is available which is why we spent more to locate the business in a location that will be visible and enable us to access our target market.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be equipped to meet their targets and the overall goal of Inland Garbage Collection and Management Company.

Our goal is to grow Inland Garbage Collection and Management Company to become the leading garbage collection company in Cheyenne – Wyoming which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with in the waste collection services industry.

Inland Garbage Collection and Management Company is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our garbage collection and management business by sending introductory letters alongside our brochure to shopping malls, hotels, residential estates and other key stake holders in Cheyenne – Wyoming
• Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
• Use friends and family to spread word about our business
• Post information about our company and the services we offer on bulletin boards in places like schools, libraries, and local coffee shops et al
• Place a small or classified advertisement in the newspaper, or local publication about our company and the services we offer
• Leverage on referral networks such as agencies that will attract clients who would need our customized services
• Advertise our garbage collection and management company in relevant magazines, newspapers, TV and radio stations
• Attend relevant expos, seminars, and business fairs et al to market our services
• Engage in direct marketing approach
• Encourage the use of Word of mouth marketing from loyal and satisfied students
• Join local chambers of commerce and industry to market our services.

Sources of Income

Inland Garbage Collection and Management Company will make sure that we leverage on our strength and the opportunities available to us in the U.S. market to generate enough income that will help us drive the business to stability.

Below are the sources we intend exploring to generate income for Inland Garbage Collection and Management Company;

10. Sales Forecast

We are positioned to take on the available market in Cheyenne – Wyoming and we are quite optimistic that we will meet our set target of generating enough income/profits from the first month of operation and grow the business and clientele beyond Cheyenne to other cities in the state of Wyoming.

We have been able to examine the waste collection services industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projection for Inland Garbage Collection and Management Company, it is based on the location of our business and our competitive advantage;

• First Fiscal Year:  $230,000
• Second Fiscal Year:  $470,000
• Third Fiscal Year:  $725,000

N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

11. Publicity and Advertising Strategy

We have plans to grow our business beyond Cheyenne – Wyoming which is why we have perfected plans to build our brand via every available means. We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to become the number one choice for both corporate clients and households in the whole of Cheyenne – Wyoming and beyond which is why we have made provisions for effective publicity and advertisement of our garbage collection company.

Below are the platforms Inland Garbage Collection and Management Company intend leveraging on to promote and advertise the business;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events
• Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our services
• Install our billboards in strategic locations all around Cheyenne – Wyoming
• Distribute our fliers and handbills in target areas
• List our company in local directories/yellow pages
• Advertise our company in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff wear our branded shirts and our waste collection trucks are branded with our company logo.

12. Our Pricing Strategy

Inland Garbage Collection and Management Company has a lease arrangement with various companies and the company’s pricing is based on miles per thousands of tons of garbage collected and transported. We have perfected our plans to charge competitive rates since we have minimal overhead compared to our competition in the industry.

We will ensure that we leverage on price to win over customers; our prices will be affordable and negotiable. The fact that our business door is open to both households and businesses means that we will have different price range for different category of clients. As the business grows, we will continue to review our pricing system to accommodate a wide range of clientele.

• Payment Options

The payment policy adopted by Inland Garbage Collection and Management Company LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Inland Garbage Collection and Management Company will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via online bank transfer
• Payment via mobile money
• Payment via Point of Sales Machines (POS Machines)
• Payment via check

In view of the above, we have chosen banking platforms that will enable our clients make payment for our garbage collection services without any stress on their part.

13. Startup Expenditure (Budget)

When it comes to starting a standard garbage collection business, one is expected to spend the bulk of the startup capital on the purchase of garbage collection trucks. Aside from that, you are not expected to spend much except for paying the required fee in dump sites, paying of your employees and utility bills.

However, this is what it would cost us to start Inland Garbage Collection and Management Company in the United of America;

• The total fee for incorporating the business in the United States of America – $750.
• The budget for liability insurance, permits and license – $5,500
• The amount needed to acquire a suitable office facility with enough parking space for our waste collection trucks in Cheyenne – Wyoming for 6 months (Re – Construction of the facility inclusive) – $150,000.
• The amount required to finance the purchase of the first set of garbage collection trucks – $100,000
• The cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al): $5,000
• The cost for accounting software, CRM software and Payroll Software – $3,000
• Other start-up expenses including stationery – $1000
• Phone and Utilities (gas, sewer, water and electric) deposits – ($3,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $120,000
• The cost for launching our official website – $600
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500

Going by the report from the market research and feasibility studies conducted, we will need about three hundred thousand (350,000) U.S. dollars to successfully set up a medium scale but standard garbage collection company in the United States of America.

Generating Funds/Startup Capital for Inland Garbage Collection and Management Company

Inland Garbage Collection and Management Company is set to start as a private business that will be owned by Mr. Perry Wilberforce and his immediate family members. He will be the sole financier of the company but may likely welcome other business partners when need for expansion arises. These are the areas we intend generating our startup capital for our business;

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from the bank

N.B: We have been able to generate about $100,000 (Personal savings – $80,000 and soft loan from family members – $80,000) and we are at the final stages of obtaining a loan facility of $250,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Inland Garbage Collection and Management Company is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our garbage collection and management services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

Inland Garbage Collection and Management Company will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check : Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Acquiring of trucks and relevant garbage disposal equipment: In progress
• Renting of Office Facility (Parking Yard for our garbage collection trucks) in Cheyenne – Wyoming: Completed
• Conducting Feasibility Studies: Completed
• Startup Capital Generation: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Promotional Materials: Completed
• Recruitment of employees and drivers: In Progress
• Purchase of furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with key players in the industry: Completed

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Small Business UK

Advice and Ideas for UK Small Businesses and SMEs

How to start a removals business from scratch

There are a variety of different types of removals businesses to opt for

Here, we look at the key factors to consider when setting up and growing your own small removals business in 2017.

Starting a removals business is one of those instances where you will have a hard time working on your own. You would need at least one more person to help you out, which is especially the case if you’re starting from scratch.

1. Determine what services you want to offer

First, you need to decide what services you can start out with.

Man and Van. This service is perfect for just one person. If you do not have a partner yet, then this option is the best place for you to start. The man and van service also enjoys the highest customer demand as it’s usually booked by low-budget households. Basically, all you need to do here is drive the van and help your clients with loading and unloading.

Self-load. This service is also one that targets low-income clients. Here, you can minimise the costs even further as you don’t even need to help with loading – you simply drive the van, while your clients handle the rest.

Home removals. This is where the more expensive services come into place and also where your search for a reliable business partner begins. The home removals service is suited for upper-middle class households that usually contain three and more rooms.

Commercial removals. Commercial properties also need help with moving. There are lots of offices, shops, and workplaces that frequently request help with moving fragile equipment. Another thing worth mentioning is that this is one of those services where you need at least one more person to help you out. Especially if you have to move computer servers around (which tend to weigh a lot).

Packing. Professional packing of belongings is every client’s preferred service. Why? Because no one wants to waste their time packing, of course! To provide this service, you need to have good knowledge on how to pack different items and how to efficiently work with packing materials. But the good news is that all of this can be learned in a day. Keep in mind, though,, that you will also need to invest in quite a bit of packing materials.

Storage. Very often, people tend to need a storeroom where they can place a piece of furniture, a box of trinkets, or some other item until the can figure out what to do with it. That’s why the storage service is a very practical one. Also, if people don’t come to take their stuff back within 6 months, then by law you get to keep those to yourself.

2. Select your range of work

Determine how far you can go. You can help people move within city limits which, if we’re talking about a city the size of London, means that you’ll still have plenty of work on your hands. You can also try to cover the whole country or even go international.

Of course, the larger distances you will need to cover, the more your prices will go up… but so will your expenses.

3. Get certified

No matter what business you’re running, you will need to obtain a certificate that shows you are allowed to run said business. You will need to certify your vehicle as well.

If you’re doing national moves only, this would be enough to start working right away.

However, if you go international you might also look at gaining a Registered International Mover certification, or an OMNI (Overseas Movers Network International) certification, in case you’re planning on doing transoceanic removals.

Another good certificate to have is FIDI , which tells all your customers and future contractors that you are a proud member of the global alliance of professional international moving and relocation companies.

4. Get insured

Insurance is the next most important step on your agenda. After all, no one will want to hire you if lack any sort of insurance.

5. Set up a budget

Your budget needs to be calculated based on all your future expenses. The main money leechers here are:

Your van. You will need at least one lorry in order to be able to take big scale bookings. Not only that, but its long term maintenance will come out of your salary as well. And don’t forget about the gas.

Tools. The lorry needs to be equipped with a ramp for easier loading and straps in order to keep the luggage in place. It’s also not a bad idea to invest in a dolly for when you need to move particularly heavy items.

Packing materials. If you decided to provide a packing service (and why wouldn’t you), you need to always be supplied with the right packing materials, such as tape, packing paper, stretch wrap, and brand new cardboard boxes of all sizes.

Organisation fees. If you manage to get into organisations, you would have to pay their periodic fees.

Promotion. Since we live in the 21st century, you need to make yourself noticed in the realm of the internet. There are many marketing freelancers out there that can help you create a website and promote you on social media, and some of them offer their services at very affordable rates.

And, of course, to be able to work in the removals business at all, you will need to be in top physical condition so you can carry all the heavy furniture and boxes. If you’re starting your company with a whole moving team,you’ll need to manage their salaries as well.

6. Research your competition and set up prices

Your competition is your main tool of orientation. You have to constantly compare yourself and your business with theirs and research their working methods by checking everything that’s been written about them by their customers.Which is where the land of the Internet is at its strongest.

You can also check your competitors’ prices and decide on the ones that work best for you, so you would be able to cover all your expenses and compete at the same time.

7. Join organisations

Becoming a member of various organisations in the desired niche can be considered the cherry on top of the removals cake. Because there’s no question that organisations can make your name well known. They will vouch for your quality of work and will include you in an alliance full of professionals who operate in the same field as you do.

A very good example of such beneficial organisation (and one that you should try to join) is BAR – the British Association of Removals.

Lisbeth Larose is a professional writer for JoinFantastic.

Further reading on logistics

• Logistics strategies for SMEs

Ben Lobel was the editor of SmallBusiness.co.uk from 2010 to 2018. He specialises in writing for start-up and scale-up companies in the areas of finance, marketing and HR. More by Ben Lobel

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How to Start a Snow Removal Business in 9 Simple Steps

• Last Updated: October 30, 2023

• Create a business plan that includes a thorough analysis of your target market including marketing plans, and financial estimates.
• Establish precise safety regulations and make sure that every employee has received the appropriate training, to avoid any type of mishaps or injuries.
• To guarantee the finest outcomes for your clients, invest in high-quality equipment and learn how to use and maintain it correctly.
• Develop relationships with property managers, homeowner organisations, and other potential commercial clients, for growing your business and creating new leads.

People have a love-hate relationship when it comes to snow. They love to play in the snow but hate it when snow blocks their roads. Here, the snow removal business comes into the picture. 

Moreover, the snow plowing industry is likely to grow at a CAGR of 6.74% during 2022-2027. Therefore, it is an ideal time to start a snow removal business. In this blog, we will discuss everything in our step-by-step guide from choosing equipment to insurance, how to market your business, and streamline services. 

Let’s start a way toward your successful ice removal business.

Table of Content

What is Snow Removal Business?

• 9 Steps to Start a Snow Removal Business

Pros and Cons of Starting a Snow Removal Business

Minimize your working hours by using best service routes on upper.

Basically, it is a business of removing snow after heavy snowfall. The purpose of this business is to clean snow; so potential clients have a clean space. During the winter season (around November-December), several countries witness heavy snowfall, and the demand for snow removal business arises. 

It is a seasonal business. Few start as full-time businesses and some lawn care business owners start as a side hustle. Whenever you start a snow removal business, it is likely to flourish in any season. 

How to Start a Snow Removal Business? 

Here are 9 easy-to-adopt steps to start a snow plow business and make the most of the winter season. 

1. Form a business plan 

The first step of starting a business is to have a snow removal business plan. Every business requires a business plan, so businesses know where they are heading and what actions to take. However, there are certain following points to consider while creating a business plan.

• Executive summary : An overview of the entire plan; should be written once your plan is ready. 
• Business description : List down your service offering in detail, your location, your vision, and the mission of your snow removal business. 
• Business operations : It includes your company’s operational plan such as logistics, company’s assets, business location, and equipment. 
• Market analysis : An overview of the target market, and service area, such as potential customers, snow cleaning in the parking lot, and size of local businesses.    
• Financial plan : Your business expenses, startup cost, profit-loss estimates, monthly income, and cash show. 

Also, there are two types of snow removal businesses: residential and commercial. So, before starting a snow business, it is essential to be clear whether you want to begin a residential or commercial one. 

Opting for both is not right because it requires different equipment and has challenges in managing it. In residential, you need to clear snow for houses; whereas, in commercial, you need to clear snow near commercial premises. Residential contracts are for short-term and commercial contracts are for longer periods of time. 

2. Register your business

No matter where your service is offered, you must register your business by getting licenses and permits. You have chosen a business structure and can register by:

• Choosing a business name : You cannot get a permit without it. If you already have a business, you can trade under the existing company’s name. 
• Select types of business : Determine whether you want to register as a sole proprietorship, limited liability company (LLC), or partnership. 
• Apply for a business license: Register your business with the local registry. Also, you must pay a certain fee, for the company domain, Employer Identification Number (EIN) , and trademark of your name. ​​

3. Create a business bank account 

A foremost rule for any business is to keep personal and business accounts different. The reason is that it keeps your income and expenses different, which eventually helps to tally the final amount. 

Moreover, being small business owners you do not want to land in any legal trouble, your personal account would not be involved in it. So, do not forget to open your business account whenever you are starting a snow plow business.

Also, as a snow plow business owner, you should get a credit card to keep separate personal assets and business expenses all in one place. Moreover, with the help of a business credit card, you can raise money later on. 

4. Get the right equipment 

Equipment is a lifeline for the snow removal services as they cannot operate the business without it. Moreover, you just do not need to own the equipment but require the right equipment that helps you to function your business efficiently. 

Here is the list of snow removal equipment you will require to start a snow plow business:

• Snow blowers
• Plow truckers
• Plow blades
• Salt spreader
• Telehandlers
• Snow buckets
• Pull plow 
• Snow pushers

However, keep an extra bunch of pairs of equipment, so if you face any obstacle, you would have a backup. For instance, snow plow business owners shared that they require at least 2-3 trucks because they have experienced how their pickup trucks got stuck many times. 

5. Build your brand

If you are starting a new snow removal business or already own a snow plow business, you will require to focus on branding. The snow service is a business where the customer puts trust in the business owner.

For instance, potential clients allow you to clean their space and for that, they will choose someone they can rely on. Nevertheless, it would be possible if the company is a brand. Also, branding shows how your services set you different from others.

6. Get insurance contracts 

Business insurance is a must in the snow plowing business as you need to protect your business. Snow can be a challenging business because of unexpected events that might impact your business.

There are different types of insurance contracts to consider:

• General liability- It helps to cover damage such as injuries and property damage.
• Worker’s compensations – Insurance for the workers who were injured during the job. 
• Commercial insurance – To protect vehicles from damage during the job
• Business owner’s policy – It is an insurance plan that acts as an all-in-one policy that covers property, vehicle, employee, and equipment. 

7. Use marketing techniques 

You simply cannot run your business if your business is not listed online. For example, whenever it snows, a residential owner quickly searches “snow blower near me” because they want to get rid of the snow as soon as possible.

Also, the snow plowing industry is a competitive industry where you will require marketing materials such as social media marketing, digital marketing, and get listed on a search engine. 

8. Manage your business cost

Snow removal is not an expensive business; however, you will be required to manage your cost. You need to invest in proper vehicles and hire employees with skills. Moreover, you need to fund your business with local and crowdfunding. 

To run snow plowing services, you need a personal investment of between 15-20% as a good credit. It will help you to get a loan easier and faster to purchase the pickup truck. 

9. Conduct training programs for crew 

Another essential task is to train your crew to perform the job right. If snow removal professionals do not perform their tasks well, it will create a negative impact on business. Also, they should have specialization in their work. 

For instance, a residential professional should know how to clean ice from parking lots and what to do when the ice melts.

Upper Route Planner

A simple-to-use route planner that every one is talking about

There are a few upsides and downsides in the snow removal business; let’s find out what-

Upsides of starting a snow removal business 

• It is a scalable business, so you can easily measure and know where to improve with what actions you need to take. 
• Once you invest in the right equipment, you are likely to generate a good source of income. 
• It has a simple business model with lower risk. Moreover, you will require less startup income to start the business.

Downsides of starting a snow removal business

• Cleaning snow can be a challenging task. If you push it into the roads, the government will fine you for it. 
• There is no specific working time; if the customer wants to remove snow in the middle of the night, you have to do it. 
• Weather is unpredictable, so you will face issues while performing your job. For instance, you are cleaning, and again a heavy snowfall comes. 

Whether you start a snow removal business or any delivery business, customers expect you to serve them as quickly as possible. Therefore, time is crucial for any business, and coming late for it will leave a negative impression. 

In such a situation, Upper Route Planner can help you get rid of routing problems and help you to reach your destination in less time. 

Route planning software allows you to plan and optimize routes for your snow removal company efficiently in a few clicks. Therefore, you do not have to worry about numerous appointments. With Upper, you can import multiple addresses directly using Excel or CSV files. Additionally, it helps you to edit and set priority routes; so you do not miss out on the important ones.

The route planner also helps to ease your service by scheduling routes in advance. Also, it will notify you about snow removal appointments on the actual service day.

Plan Snow Plow Routes Efficiently with Upper

Having too many snow plowing orders? Get Upper Route Planner and schedule unlimited routes in advance by importing addresses directly using Excel or CSV spreadsheet.

Starting a snow plowing business will cost you around $5000 to $14000. The price will be different in residential and commercial because of changes in equipment. However, only some equipment, such as trucks and shovels, remain the same.

You can get clients by marketing your snow removal company through referrals, social media, and search engine optimization.

Yes, a snow plowing business can be profitable even if you are an independent worker. Even though it is a seasonal business, you can easily earn $60 to $200 for snow removal.

Removing snow may seem challenging, but it is easy to set up with formal training, primary knowledge, and the use of the right equipment. Simply follow the steps mentioned above to start or make a successful snow plow business, and you are good to go.

To do so, you are required to provide efficient snow plow service by being on time to the customer’s destination. Here, Upper comes in and helps you to plan and optimize the fastest routes in less time. Sign up for a 7 days FREE trial and explore its benefits.

Rakesh Patel, author of two defining books on reverse geotagging, is a trusted authority in routing and logistics. His innovative solutions at Upper Route Planner have simplified logistics for businesses across the board. A thought leader in the field, Rakesh's insights are shaping the future of modern-day logistics, making him your go-to expert for all things route optimization. Read more.

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A federal judge temporarily halts U.S. plan to lower credit card late fees to $8

The Associated Press

LOS ANGELES — A federal judge in Texas temporarily halted a plan by the Biden administration to lower late fees on credit cards to $8 that was slated to go into effect next week.

The temporary nationwide injunction imposed by Judge Mark Pittman in the Northern District of Texas is a win for the big banks and major credit card companies, which collect billions in revenue each year in late fees and were looking to stop the proposal from going into effect. It is also a win for the U.S. Chamber of Commerce, which led the lawsuit on behalf of the banks.

The U.S. sharply limits how much credit cards can charge you in late fees

The new regulations that were proposed by Consumer Financial Protection Bureau would have set a ceiling of $8 for most credit card late fees or require banks to show why they should charge more than $8 for such a fee.

The rule would bring the average credit card late fee down from $32. The bureau estimates banks bring in roughly $14 billion in credit card late fees a year.

White House spokesperson Jeremy Edwards said in a statement Friday night, "We are disappointed that a court sided with House Republicans, big banks and special interests to hit pause on a critical measure to save American families billions in junk fees."

Banks had sued to stop the lawsuit earlier this year, but they had run into a roadblock when Pittman ordered the case moved to Washington, D.C., because of the fact that few banks operate in northern Texas. However, an appeals court reversed most of Pittman's decision and ordered him to rule on the bank's request for an injunction.

California says restaurants must bake all of their add-on fees into menu prices

While Pittman did impose the injunction, he used a significant portion of his order to chastise the Fifth Circuit Court of Appeals for sending this case back to him after he had already ruled that the case should be handled out of Washington. Critics of the lawsuit have called the case the latest example of judicial "forum shopping," where a company files a lawsuit in a friendly district in order to have a greater likelihood of getting a favorable ruling.

As part of his reelection campaign, President Joe Biden has tried to highlight his administration's push to clamp down on what he calls "junk fees," which are bank-related fees like late fees, ATM fees and overdraft fees.

"Every month that the credit card late fee rule is blocked will cost Americans over $800 million," the White House said Friday.

Regulators target fees for consumers who are denied a purchase for insufficient funds

Banks have seen the campaign as a political battle against their business model, while consumer advocates have seen these bank fees as excessive based on the amount of risk that banks and credit card companies are taking on.

"In their latest in a stack of lawsuits designed to pad record corporate profits at the expense of everyone else, the U.S. Chamber got its way for now — ensuring families get price-gouged a little longer with credit card late fees as high as $41," said Liz Zelnick with Accountable.US.

• Consumer Financial Protection Bureau
• credit cards