It looks so simple: You take your truck, fill it with someone else’s junk, dump it, and get paid.
But is running a junk hauling business really that simple? And, even if it is, is it worth the financial investment?
In this post, we'll look at three reasons to start a junk removal business, plus three reasons to consider pausing your plans.
Why starting a junk hauling business is smart
Starting a junk hauling business can be an excellent investment for many reasons::
- Getting started as a junk hauler is relatively cheap
- The junk removal industry is recession-proof
- The income potential as a junk remover is great
This combination of low startup costs, recession-proof demand, and income potential make a junk hauling business worth considering.
Cheap to Get Started
For the most part, starting a junk removal business requires only a few tools, so it is fairly inexpensive to get off the ground.
You can buy a used dump truck for $30,000-$40,000. Set aside another $1,000 for licenses, permits, and legal fees. And plan to spend about $2,000 between advertising, software, and technology. Finally, you’ll need a few hundred dollars for tools like straps and brooms.
Voila! For somewhere around $43,000, you’ve started your junk hauling business.
Of course, if you plan to have employees, open an office, or take a business training course, the cost of opening your business will be higher.
Compared with other types of businesses – especially brick-and-mortar shops – starting a junk hauling business is quite cost-efficient. And, if you already work in a parallel industry, like lawn care, you may already have the tools you need to start your business.
Recession-Proof Business
Working for an employer in most traditional jobs, you’re at the mercy of the current market. But as a junk hauler, you’ll never need to worry about a dry spell in service demand.
During good times, you’ll be called upon to remove debris from renovation projects and construction sites. During not-so-good times, your job will be to clean up foreclosed homes and residential properties.
The point is, you’ll always have work available to you as a junk hauler.
Great Income Potential
Your earning potential in junk removal will vary by location and job type, but generally speaking, the profit margin is high.
A good commercial job can quickly justify your business investment. One hauler working with JunkTrashRemoval made $100,000 on a single job. With that, they were able to buy more trucks and grow their business.
But, let’s take a step back and consider just one small example: You pick up a washer/dryer combo for $120. You dump it for $20. After paying for gas, you’ve still made $90 in less than an hour. Most jobs will be bigger.
With a single dump truck, you can complete about three to four jobs per day. You’ll charge about $250 to haul a ½ truckload of trash, and $500 to haul a full load.
Depending on your number of employees, you can expect to keep 50%-70% of your junk removal income as profit.
With three ½ truckload jobs, you’ll bring home about $450 for the day (60% of what you charged your customers). That amounts to about $56 an hour! In a few months, the truck you’ve bought will have paid for itself, easily justifying the expense.
And it’s not long before your business becomes a money-making machine.
Reasons not to start a junk hauling business.
As with any other business venture, starting a junk hauling business is not for everyone.
Here are a few red flags. If you see them, take a step back and evaluate if a junk removal business really is for you:
- You are unable to haul trash and don’t know anyone who can haul it for you
- You have no landfills within a reasonable distance that can take bulk trash
- You work better with a boss
You are unable to haul trash
On the surface, it appears you need a lot of physical strength to run a junk hauling business. In actuality, you don’t need much strength. The people you hire are the ones who need muscle.
That said, if you’re unwilling to hire employees to haul the trash, and if you are unable to haul the trash yourself, then starting a junk removal business would be a bad investment.
You have nowhere to dump the trash
Most cities and counties offer trash removal sites like landfills within a reasonable driving distance.
But if you live in an area without these types of facilities, you may have a hard time running your junk hauling business.
At the same time, the lack of places to dump garbage can be a selling point. Some cities still don’t offer recycling pickup. You can provide this necessary service, helping the environment and your neighborhood. As an added bonus, recycling generally costs nothing when you bring it to a recycling facility.
And if your nearest garbage disposal facility is far away, you can charge a premium for your services. Trust me – people will pay for convenience.
You work better with a boss
Some people prefer to take orders rather than give them. If you’re accustomed to leaving the decision-making to someone else, you may feel uncomfortable running a business of your own. And that's understandable. Not everyone is cut out for the ups and downs of running a start-up.
But the truth is, as a junk hauler, you do have a boss: Your customers. The difference is, you now have the authority to pick and choose which customers to service. You can hire a bookkeeper and accountant to keep your records clean. And if you have a strong work ethic, your employees may be inspired by your example without you needing to micromanage.
Apply for Our Professional Junk Removal Business Course
Flexibility. Growth. Freedom. Your new business starts here.
Spaces are limited, and because of this, we review each application by hand. We will reach out to you if you're a good fit for our program.
So, should you start a junk hauling business?
When weighing the pros and cons of your investment in a junk hauling business, you’ll want to consider all of the above factors.
From a monetary standpoint, junk hauling is lucrative, and the investment can pay off quickly. From a personal standpoint, it’s an investment in freedom of choice. If you’re willing to work hard to get your business going, you’ll find that starting a junk removal business may be worth it.
Depending on your business savvy, you may want to consider taking a junk removal business course. A course can teach you to avoid costly mistakes that others have endured when starting their business. And the tools provided will help you bring in clients from Day 1, so you can generate income right away.
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