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3 Easy Steps to Start a Junk Removal Company Without Setbacks

 Have you recently decided to open a junk removal company in your area? In that case, you’re about to venture into a profitable industry. For instance, the waste management market generated a revenue of USD 140 billion in 2022. 




According to Jobber, your junk removal business can initially start with a 15% profit, which will gradually increase with experience. However, starting any company has challenges if you don’t do it correctly. There’s a specific method that’ll help you run your startup profitably, confidently, and safely. 

In this blog, we’ll discuss three steps to help you start a junk removal business without any setbacks.

#1. Research About the Locality, Market, and Potential Costs

The first thing you need to research is the dump and the recycling drop-off locations. Doing so will help you determine the locality you can serve. For that, you can simply search ‘list of dumpsters near me’ or ‘landfills near me’ on an interactive map or Google.

If you’ve got a few tons of junk to dump, you should choose a landfill. According to Workiz, the average cost of dumping in a landfill is USD 30 per ton. However, if the junk weighs less than a ton, you can get rid of it in a commercial dumpster. 

Once you’ve listed the location of the dumpsters and landfills in the area, it’s time to research the local junk removal market. During this step, you can scout the big players in the industry and check their advertising strategies, clients, and number of employees. 

To do that, you can Google their brand, check their website, go through social media, and ask around. All these will help you analyze your potential competitors and create a robust business plan. 

Now, you should focus on the cost. Research suggests that a junk removal startup costs anywhere between USD 2,000 and USD 10,000. However, that’ll depend on the location, licenses, and equipment your company owns. 

You should also map out the average costs. For example, assess the amount you’ll spend on monthly gas fees, insurance, landfill costs, initial advertising, etc. After that, consider the upfront costs for equipment and junk removal tools. 

#2. Create a Solid Business Plan With the Help of That Research

Before you create a business plan, you should gain experience by taking up a junk removal job. Based on that experience, you can create a detailed document that’ll be the foundation of your organization. But remember to spend enough time on the essentials and define your startup’s objectives, financial projections, plans, budgets, marketing, etc.

While mapping out a business plan, you should also focus on funding. For instance, you can figure out whether you’d like to fund the junk removal company with your personal savings, bank loans, or seek angel investors

Technically, the business plan for a junk removal company should include the following factors: 

  • An executive summary based on the industry overview and the type of junk removal

  • Detailed insight into your competitors, target customers, marketing strategy, etc

  • A brief detail about the business opportunities in your locality, financial targets, and pricing models

Moreover, you should create a name and logo for your junk removal company. It’s also crucial to detail how you expect your operations and management teams to work.

#3. Think About the License, Equipment, and Marketing Plan

Once you’re satisfied with the plan, you can move ahead with registering your company. For that, you’ll need a business license and the correct legal paperwork for your junk removal company. When you visit your local city hall, they’ll issue a state tax ID and help you get the zoning approval needed for operating your business. 

Yes, you can do this alone, but industry experts highly recommend hiring a business attorney who knows the junk removal industry in your state. They can help you understand the legal requirements, state permits, and licenses required to start the company. 

Once you’ve acquired the licenses and registered your brand name, it’s time to get the equipment. To start, you’ll need garbage bags, shovels, and safety equipment. Moreover, you must purchase a trailer truck to haul the junk to a landfill or dumpster in your area.

After that, you should invest in a marketing and advertising plan. For instance, you’ll need to create a website to foster brand identity and gain job applications and clients. Moreover, listing your business online and creating a sales strategy will help you find clients from your locality. 

In conclusion, a junk removal company can only be profitable if you follow the steps mentioned in this blog. Before anything, you need to research the market in your area. You should also find out the types of landfills available to dispose of the junk collected. 

Based on that research, you can create a business plan. If you’re satisfied with this plan, you can invest in the equipment, licenses, and marketing. All these steps will help you generate profits from your new junk removal company.


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