Nov 16., 2017 / General
How to Start a Junk Removal Business
Starting a junk removal business is not a joke. However, this kind of company can bring in significant income under the right team and process. And the best part of it is that you need only a minimal investment of time and money to start.
For your junk removal business to be successful, you need to build a good reputation, maintain a busy work schedule, and to find clients who can help you increase the awareness of your brand and improve your status among others. Aside from that, you must also be unique and different from other business in your field. For example, if you are planning to have an Arizona or AZ Junk Removal Company, you must study first your competitors so that you may know what to offer. Then, use the following steps to start your own junk removal business.
Step 1: Assess the market for junk removal.
Research the current junk removal businesses in your city. Study the major players and existence of smaller, competing firms. Decide whether to focus on residential or commercial junk removal or both and then look at competitors in that market. Make sure to look into their strategies, promotions, prices, and service offered. In particular, look for any underserved demographics or markets in your area.
Step 2: Decide whether to franchise or start your own business.
Franchises offer some benefits, including existing business name, advertising, prices. They’ll also help you set up your trucks or give you the option to purchase existing ones complete with branding. But, take note that starting a franchise also can be expensive in the beginning because you need to pay the franchise fee to get into the business. It is a must to weigh these pros and cons before deciding to buy a franchise or start your own business.
Step 3: Create a business plan.
All successful business started with a plan before they finally achieve profit. Your business plan spells out how you intend to start your business and make money. Start by writing your objectives and explaining what exactly you will do including the market you will serve, the specialties, and the area you will help. Consider also explaining promos/combos as well as your pricing model, startup costs, marketing strategy, and how you plan to fund your business.
Step 4: Get funding to get you started.
Every business needs a certain amount of money to get started. Since you are planning to have a junk removal business, your startup funding needs to cover the cost of your truck, equipment, marketing efforts, and some working capital for your first few jobs. If you don’t have enough budget, you can cover these expenses with a loan from a bank or credit union, or money from a friend or family member. Some organizations also guarantee business loans at banks and can help you qualify for the budget you need.