How to Start a Septic Tank Cleaning Service

Part 1 - How to start a Septic Tank Cleaning Service business - Background

This businesses is needed where there is no local municipal sewer system. Customers install and perform basic maintenance on their own private septic and waste system. Then, the company is called in to pump out the waste and dispose of it properly. The service can also include an actual cleansing of the tank as well.

Our guide is in 3 parts:

• Part 1 - How to start a Septic Tank Cleaning 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 septic tank cleaning service?

This is an expensive business to start. Startup costs are include a pump truck and a place to dump the waste material. Most used trucks can be bought for between $20,000 and $30,000. Other than that, you may need office space and the usual business and office supplies. Your biggest cost will be buying and maintaining a fleet of trucks.

What are the ongoing expenses for a septic tank cleaning service?

Ongoing expenses for this business include office overhead and expenses, truck maintenance, and local fees for waste removal and disposal. Depending on where you live, how much mileage is put on the truck during the year, and how much business you’re doing, these costs can be high or low. Some companies realize maintenance costs of up to $15,000 per year, per truck.

Who is the target market?

Preferred customer types are those that live in areas not serviced by municipal water or sewer supply. Customers who are on their own well and sewer system need routine maintenance. While businesses do sometimes own property with a septic tank, most customers will be consumers living in single-family residential homes.

How does a septic tank cleaning service make money?

This business makes money by charging customers to clean and maintain their septic tanks and systems. Most tanks need to be cleaned every 1-3 years, depending on the size of the tank and the number of people using it. So, companies may provide interim complimentary advice-based services on how to clean and maintain the tank and system between pumpings.

How much can you charge customers?

Charges vary, but most companies charge a flat or fixed fee for emptying a septic tank.

These fees run between $75-$200, but they can be as high at $350 or $400. for larger tanks between 1,500-2,500 gallons.

How much profit can a septic tank cleaning service make?

Profit is highly variable in this industry, and depends on local competition and market demand. Some businesses struggle to make 5% margins, while others maintain a 20% margin.

How can you make your business more profitable?

You can make your business more profitable by minimizing overhead costs. In this industry, it’s common to lease pump trucks in the early years. However, these lease costs add up and can decrease profit margins over time.

That’s because the cost to lease may be lower than buying a truck outright in the early years, but becomes much more expensive as time goes on.

Also, try to use as much personal savings as possible and avoid expensive commercial loans.

Day-to-Day and Growth

What happens during a typical day at a septic tank cleaning service?

The day-to-day activities of a septic tank cleaning business include meeting with clients, checking septic tanks, and pumping them. The pumping is normally done with a large truck and a hose, which is lowered into the septic system in the front or back yard. The hose then pumps the tank and hauls away the waste material. 

A septic tank cleaning company may service multiple customers during the day, maintaining an active rotating customer list. Other day-to-day tasks include doing paperwork, invoicing clients, and maintaining a log of current and past-due customers.

What are some skills and experiences that will help you build a successful septic tank cleaning service?

This job is skill-intensive. Because septic systems are dynamic and complex ecosystems, containing a host of biological organisms, the downstream effects of a mistake can be expensive.

A few of the more important skills necessary for this business include extensive operation monitoring, operation and control, critical thinking, troubleshooting skills, quality control and analysis, judgment and decision-making skills, monitoring, active listening, and complex problem solving.

Septic tank cleaners must be able to read, monitor, and adjust dials, gauges, and other indicators to make sure a machine is working as it should. They also need to be able to troubleshoot systems out in the field. Since there can be any number of problems on the job, critical thinking and problem-solving is a must.

It also helps to have a plumbing background or experience in the industry before starting your own company.

What is the growth potential for a septic tank cleaning service?

Growth of this business can be slow or fast, depending on demand for services in your area. Competition may be limited in some areas, in which case growth may be exponential. Local laws and regulations may limit or control how septic tank companies operate. This may or may not allow you to expand into new markets and grow your business. Make sure you check local laws and regulations before making business expansion plans.

What are some insider tips for jump starting a septic tank cleaning service?

Marketing your business is important. Check out the competition and what’s working (and what’s not working) before you dive in. Learn from others’ mistakes in the business. Then, fill in the gaps not serviced by your competitors. Often, in this industry, it’s a matter of providing better service and friendlier customer service, than the competition.

How and when to build a team

You can operate this business with one truck, but it will remain a small business. Expand as your funds allow. This business has theoretically unlimited potential as long as there are customers in your service area that need septic tank cleaning and maintenance. Start with one truck and expand to two when you can. Add additional office support staff when you have at least 3-5 trucks.

Part 2 - Is a Septic Tank Cleaning Service business the right fit for you?

Part 3 - Action plan to launch your Septic Tank Cleaning Service business in 90 days