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Clutter is a major problem for people across America. In fact, more than 54 percent of Americans feel that their homes are too cluttered and want to find a way to get rid of their excess junk.
If you’re looking for a creative way to help people deal with their clutter issues while also earning a comfortable living, starting a junk removal business is a great place to start.
Like any business, starting a junk removal company takes time and you need to know what to do to get it off the ground the right way. Here are a few tips to help you get started quickly.
1. Create a Business Plan
Before you can start running your junk removal business, you need to create a solid business plan. Think of your business plan as the outline you’ll use to build and grow your junk removal company.
You’ll want to think about how much your business will cost to get it off the ground. Write those costs down and don’t be afraid to update them as you go. Your expenses will change, but keeping track of them in your business plan can help you set your company up for future growth.
Consider who you want to target as your ideal customer. Is it people moving? Are you wanting to help long-term residents get rid of junk?
Explain your target market in your plan so you can better prepare your marketing strategy.
Remember, your business plan can help you secure small business loans to better fund your new company. The more detail it contains, the easier it will be to win over lenders and qualify for a loan.
2. Invest in Insurance
As a business owner, you need to protect yourself, your company, and your employees if you have any. This means you’ll want to purchase business insurance before you start offering junk removal services.
At a minimum, you’ll need commercial auto insurance for every truck you use for your junk removal business. Even if you use the truck for personal trips, your regular car insurance won’t be enough.
You’ll also want to buy liability insurance to protect yourself and your team from costly lawsuits. Remember, if you damage a customer’s property while hauling away their junk, you’re liable for the full cost of repairs. Liability insurance will help cover those costs for you.
If you hire employees, you’ll need to have a workers’ compensation insurance policy in place before they start their first shift. Workers’ compensation coverage helps pay for any medical treatments if your employees get injured on the job. It also keeps them from being able to sue you for damages related to the incident.
3. Find a Truck
Arguably the biggest expense when starting a junk removal business is buying the trunk to haul junk away. You have several options here.
You can stick with a standard pickup truck and invest in a trailer to tote junk to the dump or recycling facility. However, this can keep you from being able to haul as much junk as you’d like.
You can also look for garbage trucks for sale and skip the hassle of finding sturdy trailers and trucks that can tow them.
It’s best to start your business with a single truck and expand your fleet as your company grows. This way, you won’t get in over your head on maintenance costs and general upkeep.
4. Get the Necessary Permits
As a business owner that provides services to individuals, you’re going to need to apply for the necessary permits. Head to your local county and state offices and find out what types of permits you’ll need.
In most states, you’ll need a license number to prove that you’re authorized to work in your area.
The government may also inspect your equipment prior to issuing you the permits. This allows them to make sure you’re able to operate as safely as possible.
5. Separate Business Finances from Personal Finances
No matter how small you keep your junk removal company, you’ll need to separate your personal finances from your business.
The best way to do this is to open a designated business checking account and credit card with your preferred bank. Use this account for all business-related expenses including maintenance costs, purchases, employee wage payments, and other incidentals.
If you co-mingle personal and business expenses, it makes it tough for your accountant to help you get the most out of your tax return. They need to be able to see what your business spent separately from what you spent on yourself.
6. Set Up Your Website
Your web presence matters when you’re helping your junk removal company start up quickly. Customers are more likely to choose a provider that has a user-friendly and informative website.
If you can, hire a professional to create a website that explains your services, your values, and your pricing clearly. If you can’t or want to handle it yourself, you can. Just remember to think like your customers.
It’s also a great idea to build a social media profile for your company. This gives you a chance to interact with prospective customers and makes it easy for you to answer their questions quickly. As your company grows, you can even use social media to advertise new specials or highlight customer testimonials.
Ready to Start Your Junk Removal Business?
Starting a junk removal business is a great way to earn money while providing your community with a valuable service. Follow these steps when you’re planning everything out and you’ll be on the right track from the very beginning.
Just remember to plan your business with the future in mind. Always strive for growth and do everything you can to make your customers’ experiences positive. The more your customers appreciate your business, the easier it will be for you to reach a broader audience.
Looking for more helpful tips on growing and improving your business? Check out our latest posts.