8 Steps To Consider Before Starting A Junk Removal Business

A junk removal business is one of the profitable business ideas which can bring significant income under the proper management. The most suitable part is that you only need a small investment to start this business. However, for your junk removal business to succeed, you must establish a good reputation, keep a busy work schedule, and find clients who can help you increase brand awareness and improve your reputation, among others. Start your own junk removal business by following the steps below.

Examine The Junk Removal Market

Look into the current junk removal companies in your area. Look for significant players as well as the presence of smaller, competing businesses. You can decide whether you want to focus on residential or commercial junk removal, and then only look at competitors in that market. Examine their advertising strategies, prices, and service areas. Look for any underserved demographics or needs in your area.

If there appears to be a dominant player in your market, try to understand why. Consider what makes them more trustworthy or effective in the eyes of the customer. Then, apply what you’ve learned to influence your own business decisions.

Choose A Franchise Or Start Your Own Business

Franchises provide several advantages, including existing business models, advertising, and branding. They will also allow you to set up your trucks or offer you the option of purchasing pre-branded trucks. However, starting a franchise can be costly at first because you must pay a franchise fee to enter the business. In addition, once you begin operations, you may be required to give a portion of your profits to the parent company. Consider these advantages and disadvantages before investing in a franchise.

Make A Business Plan

Your business plan outlines how you intend to start and grow your company. Begin by stating your goal and detailing what you intend to do (which market you will serve, any specialities, etc.). Then, include market research demonstrating that there is area in the market for your business. Next, explain your pricing model, startup costs, marketing strategy, and how you intend to fund your business.

Your pricing strategy should consider both your costs and the prices charged by your competitors. First, estimate your expenses (overhead, equipment, employee wages, disposal fees, and gas) and then work from there to develop a pricing schedule that works for you.

Your pricing strategy is entirely up to you. You can charge by weight, by how much space the junk takes up in the truck or by the job in a more holistic, estimated manner. Remember, this is just your starting point; you can constantly adjust your prices as you gain experience.

One strategy is to charge less than more established companies. You may not make as much money, but you will gain some of their business. Next, consider whether you will use employees, contract labour, or both. Regardless of which option you choose, you must have a thorough understanding of the laws that define the nature of the workers as well as the laws that govern their relationship with the company.


To start a junk removal business, you don’t need to worry about setting up an office or renting storage space. You will, however, require some capital to get started. Your startup funding should cover the cost of your truck, equipment, marketing, and working capital for your first few jobs. You can cover these costs with a bank or credit union loan or money from a friend or family member. The Small Business Administration (SBA) also guarantees bank business loans and can assist you in qualifying for the required funds.

Finding enough clients to cover your expenses in the first few months may be challenging, so make sure your initial budget can cover the gap.

You can save money by renting a junk removal truck as needed rather than purchasing one right away.

Purchase  A Vehicle

You should purchase a 5 ton truck or you can buy a second-hand 5-ton truck that helps you to transport clients’ junk to waste recycling or disposal facilities. Look for one with a large load capacity and good fuel economy. You don’t need to add extra things like climate control or leather seats to your vehicle because they will only raise its cost. 

If you do not have a smartphone or are unfamiliar with the layout of your service area, you might need to purchase a GPS system.

Obtain A Business Licence

Register your company in accordance with your local government’s requirements and waste carrier guidelines. You must contact your local chamber of commerce or SBA branch for more information on these requirements, as they vary by county and state. At the very least, you will need to register a business name with your local authority. You may also require special permits or licences if you transport scrap metal or junk.

Get  Appropriate Insurance

Before beginning your business, you will also need business liability insurance. In addition, you will also require auto insurance for your vehicle(s) and workers’ compensation insurance if you employ people. Examine the offers of various insurance companies and choose the most suitable deal. Your insurance procedure should cover your vehicle, equipment, and any damage to a client’s property caused by junk removal.

Business Marketing 

Create flyers on your computer or hire a design and printing company to do it for you. The flyers should be visually appealing and easy to read, with a brief description and contact information for your company. Distribute your flyers to all businesses and homeowners in your area who might be interested in your services. Put them on utility poles and notice boards, too. Ensure that your flyers are distributed following local laws. You can consider placing an aid in your local newspaper to raise awareness of your brand. However, remember that doing so may be costly and only provide you with a limited amount of aid time. Wait for the first phone call after you have completed all of this.

Your initial advertising budget will most likely be limited, so make the most of it. For example, consider parking your vehicle in a prominent location and placing a small aid in a local magazine or newspaper.

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