How to Start a Junk Removal Business

Part 1 - How to start a Junk Removal business - Background

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.

Our guide is in 3 parts:

• Part 1 - How to start a Junk Removal business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

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 logo wear to brand your business and project professionalism to customers.

What are the ongoing expenses for 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 logo wear to brand your business and project professionalism to customers.

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.

How much can you charge customers?

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.

Day-to-Day and Growth

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.

Part 2 - Is a Junk Removal business the right fit for you?

Part 3 - Action plan to launch your Junk Removal business in 90 days