- Plan Your Business
- Register Your Organization as a Business Entity
- Start with 1 Truck
- Get Projects from various platforms
- Plan for Marketing
- Minimize Cost of Operation
- Expand Your Business
Plan Your Business
A clear plan is essential for success.
Assess the Market and Competitors.
Look for major players who are already serving in your desired area.
Figure out their weaknesses, like either, they serve residential or commercial entities.
And then go for the service that others lack.
If there is already a dominant player in the market, assess why they are dominant.
What makes them a trustworthy and first choice for customers.
Since bigger companies have a high cost of operation, you can charge your customers less for the same service.
Provide lesser response time with guaranteed satisfaction.
Another choice you can have is either to start a franchise or work independently.
A lot of bigger junk removal service chains have franchise programs.
This will make it easy for you to grab a job.
But the profit margin will be divided on the basis of their policy.
However, if you run an individual business.
All the profit will go into your pocket but being a new business you will have to do a lot of hard work that is definitely worth it in the end.
Creating a RoadMap is real important here as you’re investing your money and time.
Start by explaining and objecting to what exactly your business will do.
Either you will serve Dumpster rental service or Junk Removal Service.
What locations you’re going to target.
Your Pricing Strategy.
Labor force and any contract that you want to sign like Insurance.
Register Your Organization as a Business Entity
Now when you’ve finally decided how you are going to start your business.
You should legalize your business.
Consult your lawyer
Establish a legal entity to avoid lawsuits and losing your all money.
You can form an LLC by yourself or hire one.
Register yourself for taxes and avoid future complications.
Usually taxes for small business are very low here in USA.
Start with 1 Truck
You don’t need to buy or rent out a fleet of trucks but just 1 truck can work well.
That’s true. I’ve seen a bunch of junk removal businesses who started with just 1 truck and now have 50+ employees on board.
The best specs for a truck are:
Box size has to be 12 feet long, 7 feet wide, and 5 feet in height.
Almost every junk removal business owner prefer ISUZU NPR.
After 6 months increment, 1 more truck and a year later get another one.
Don’t burden yourself with expenses along the journey.
Get Projects from Various Platforms
Facebook Groups, Craigslist, LinkedIn, eBay, and various others go hand in hand when it comes to growing new businesses.
You may wish to advertise you’re business but being low on cash is a major barrier for you.
Luckily, there are Facebook groups reserved for junk removal service discussion.
You can learn a lot from other professionals.
Craigslist is something that every American knows and has used once in a while.
You can certainly try eBay and search for people who need your service.
At this point you should consider making long-term relationships with your clients.
It will help you a lot in the future.
Plan for Marketing
Now when you’ve served a couple of customers and know the ins and out of this business.
It’s time for marketing!
Here is how to do:
- Get a website
- Create Google My Business Account
- Go for Yelp, Facebook, LinkedIn, and also Google Ads
You can also wrap your truck into your business logo theme so people know about your business from a distance.
Put Magnetic stickers on the truck as well.
Minimize Cost of Operation
This one should be on top according to the order, it comes down here.
It is really important to manage your finances.
For example, on average the expenses are roughly 41% of the income.
If you’re earning $350 for a job the expenses will be $143.50 leaving you with a profit of $206.5.
Underestimating your expense might lead you to bankruptcy.
Expand Your Business
This means what it says.
While moving on you should not stop at one point but expand your business.
Hire more employees, buy bigger trucks, spend more on the advertisement and get more types of equipment to make it easy for your employees.
You should also consider increasing the radius of servicing areas as well.
As there is a very low barrier to this industry, this industry is booming greatly and has grown to $51.7 Billion.
There is definitely a golden opputunity for your business as well.
