The world changed in 2020. Even two years later, everyone is spending more time at home, either by choice or mandate. That means families are rediscovering the joys of spending time together in ways that weren’t possible with the busy schedules of the past.
This extra time also means that many households are doing a “spring cleaning” to fill the open days. To-do lists get caught up, chores finished, and projects finalized.
The leftover junk from all of that cleaning, sorting, and organizing must go somewhere. That’s one reason why a junk removal business is an excellent business opportunity in 2022. It is considered an essential service in many communities, which means you get to keep working while helping others.
Is your entrepreneurial spirit ready to serve your community?
Why Become a Junk Hauler?
Here are 8 Great Reasons.
Fill out the form, and we'll send you our quick-read booklet with the top reasons to start a junk hauling business in 2022.
Best Reasons to Start a Junk Removal Service
Most junk removal companies fit into one of two categories. There is an independent contractor with a truck who does the work or a franchised business that puts an unfair percentage of their profits to a national name.
Although both businesses eventually get the job done, neither is beneficial to the community. The solo entrepreneur who works alone stops working when age, injury, or a mechanical issue occurs. As for the franchised company, a significant portion of the revenues earned leave the area, reducing the junk removal business's positive economic impact.
That means most communities have a service gap in this industry. You have a unique opportunity to start, build, and scale a junk removal business because of what happened in 2020.
If that isn’t enough motivation, here are some additional points to consider.
1. Junk removal is a natural service addition to many existing businesses.
Are you a landscaping specialist? Do you provide lawn care or housekeeping services? Adding junk removal to what you currently offer expands the opportunities you have to land a job. Any current business that includes property-based improvements can benefit. It may not even require an alteration to your business license to get started.
That means you’d need a truck, some loading equipment for bulky items, and the human power to get going. Since most ancillary businesses already have these assets, you could advertise junk removal today to start getting customers tomorrow.
2. Starting a new business is relatively inexpensive.
A junk removal business can quickly bring in six-figure revenues when you scale your company correctly. If you are starting from scratch, you’d need about $30,000 for new assets, such as tools, insurance, and the down payment for your truck. Double that figure to manage your first six months of costs.
With the right training, you could be profitable in the first year with your new junk removal business.
Here's an example of a standard start-up costs for a new junk removal business.
- Truck - $18,000 to $50,000
- Accessories (brooms, straps, etc.) $200
- Employees - $4,500 to $12,000
- Payroll $2,400 to $7,200
- Payroll taxes $720 to $2,160
- Insurance $650
- Rent - $500 to $1,300
- Security deposit $250 to $500
- First month's rent $250 to $500
- First month's utilities $300
- Marketing & Sales - $1000
- Marketing & advertising $500 to $1,000
- Miscellaneous - $1,800
- Licenses and permits $150 - $300
- Legal fees $300 - $500
- Signage $500
- Technology $300 - $500
- Software $300 - $500
Total Start Up Costs: $28,000 to $58,000
Download our junk removal business start up costs worksheet. (coming soon!)
3. Junk removal is a recession-proof business.
Junk removal is a unique business because your customer profile changes during economic cycles. When times are good, families and businesses upgrade appliances, install new floors, and organize their spaces to get rid of stuff. We also saw in 2020 that people like to do these activities to fill time or feel like they have some control over the COVID-19 situation.
When economic times dip into recession, a junk removal business shifts to focus on foreclosure restoration and moving cleanup, so in changing economic conditions, your responsibilities may be slightly different, but you're always working.
4. Scalability is simple with a junk removal business.
Growth ideas are straightforward in the junk removal business. If you want to serve more customers, you buy another truck and hire a couple of additional workers. As demand levels keep growing, keep following that plan.
An aggressive marketing approach is often needed to maintain the number of projects necessary to sustain growth. Although junk removal succeeds as a word-of-mouth opportunity, you need to do more. Everything from traditional advertising to SEO must be a priority. The good news here is that what works for other industries can also help you.
There are lots of options to consider. If you’ve experienced marketing success with an ancillary business, you can use the same approach to grow in this industry. You can outsource this need, take learning courses, or hire a full-time marketer to manage your brand.
5. You don’t need to be in the driver’s seat.
A junk removal business can operate independently of its owner. If you hire a manager to oversee the different teams and trucks, you can step back to take on an oversight approach. People get paid a fair wage, you provide an essential service, and the income you get is enough to support your family.
6. Almost anyone can work in the junk removal business.
Junk removal is one of the easiest businesses to start because it doesn’t require a degree, an apprenticeship, or technical knowledge. The crucial attributes to a successful company in this industry involve a positive attitude, physical strength, and a desire to work hard while following a set of best practices.
At the same time, you have opportunities to specialize in the junk removal industry. You could find a niche in removing hazardous materials, old appliances, or abandoned vehicles. These services may require specific certificates, licensing, or insurance to perform, but you can charge more for them.
7. It is a relationship-building business.
When you own a junk removal company, your services function as a networking opportunity. Each job is a chance to meet new people, talk about your business, and upsell the other services you offer. It is a fast way to have your brand naturally grow.
Relationships are also a crucial component of earning repetitive business. The people who need help with junk removal often call for additional services because it is convenient to declutter. When your people provide a positive first impression, you create future opportunities for success.
8. You can use several different business structures.
Most companies that operate in the junk removal business form a limited liability company (LLC) because it separates corporate assets from personal ones. If something were to happen during a job, a client couldn’t sue you to gain access to your home, vehicles, or other property outside of the company.
You don’t have to operate your business that way. As long as you carry the appropriate insurance, you can function as a sole proprietor or partnership. Some companies decide to become a corporation as a way to grow, but in the end, you'll get to determine what works best for your needs.
Are You Ready to Explore an Opportunity in Junk Removal?
It can be scary to contemplate starting or growing a business in uncertain times. It is also important to remember that some of the best and most prominent companies got their start in similar circumstances.
Amazon began in a garage focusing on books. Apple found its footing when two college dropouts took a risk by creating something that anyone could use at home.
Could junk removal be the beginning of your success story?
You don’t need to take on this risk alone. Our comprehensive training program starts your journey immediately in the junk removal industry. It increases your chances of success and shortens the time to profitability.
You’ll gain access to video training, documentation, and industry experience to help your new junk removal business or add-on service start growing immediately. This training teaches you everything from bidding on jobs to creating a better budget.
The startup package includes a website, advertising plan, and branded social media kit. We find the customers so that you can provide the services.
If you are ready to be financially independent in a recession-proof business, 2022 is the year to consider adding junk removal to your portfolio. You can embrace the entrepreneurial spirit, help your community, and get to work without any prior experience.
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