Junk Removal business License
Whenever unwanted belongings cannot be thrown out in the normal trash, a junk removal service can help. People and businesses need help hauling away broken furniture, clearing out an attic full of trash, or even emptying an estate or foreclosure. The junk removal industry is competitive but growing, and you can start from scratch or buy into a franchise. If you’re up for the challenge, owning a junk removal business can be a profitable and rewarding adventure that involves not only hauling heavy garbage but also scouting local donation and recycling solutions.
Who is This Business Right For?
Problem solvers, people persons, and those who like working with their hands can succeed and find joy in running a junk removal business. Running the show involves managing plenty of people and resources while sticking to a tight schedule.
Junk removal businesses operate by appointment, so taking days off can be up to the owner. Night and weekend appointments are not necessary but are often in demand and profitable.
What are some of the day-to-day activities of a junk removal business?
Scheduling pickups and finding the right drop-off points are the two major challenges for a junk removal business owner. Customers don’t want to be kept waiting for appointments, so punctuality is crucial. People also expect you to dispose of everything in relatively eco-friendly ways. The actual junk removal simply requires appropriate strength and a fleet of trucks.
How does a junk removal business typically charge its clients?
Pricing typically centers around the volume of garbage removed, measured in cubic feet inside the truck. Other fees might apply to especially heavy items, certain dangerous materials, cleanup, and rush appointments.
How big can a junk removal business grow?
Junk removal businesses can easily scale up with more trucks and employees. Franchise owners are generally limited to service areas, so you may need to purchase additional areas. On that note, you could potentially franchise your own junk removal startup in the long run.
What are some skills that will help you build a successful junk removal business?
Successful junk removal business owners typically exemplify these traits:
- Knowledge of business planning and management, including the ability to assess overhead costs and weigh liability issues while determining a realistic pricing model that can compete in the local market.
- The communication skills to work with a team of junk haulers who will be doing the bulk of the labor, which is sometimes extremely strenuous; the owner-manager needs to train and motivate these employees to provide excellent service and always be reliable.
- Customer service skills are always necessary, as a junk removal business needs to build a strong reputation in the community, earn positive online reviews, and stand out from the crowd.
As the owner, it may be beneficial to stay up to date on the latest recycling practices and regulations that affect the industry. You can become a member of the National Waste & Recycling Association for special courses and to be involved in industry advocacy issues.
How to promote and market a junk removal business
Customers need to know your name and trust you, branding and referrals are both key to marketing a junk removal business. Funny names and bright colors are popular and effective for direct advertising campaigns. A strong online presence also helps capture more local customers.
What are the preferred client/customer types?
Individuals and businesses are both frequent junk removal customers. Real estate and storage facilities are two industries with a particular need. Residential customers often include empty nesters and retirees looking to declutter.
How can you make your business more profitable?
Completing more jobs in less time is the best and simplest way to maximize profits for your junk removal business. Strategizing your drivers’ routes, training employees to work quickly, and growing the fleet all help with booking more customers each day.
State and Local Business Licensing Requirements
No specific licenses or certifications are required in many locations, although some cities and states may have special requirements. You may need a particular type of license to recycle scrap metal or haul certain other materials, for example. Otherwise, your business will simply need an appropriate business license.
Reduce Personal Liability
Structuring your business as a limited liability company (LLC) ensures your personal assets are protected in the event your business is sued.
How much can a junk removal business charge its customers?
For a single junk removal visit, homeowners most often spend between $139 to $373, according to HomeAdvisor. This often covers a load of junk consisting of a few pieces of furniture or appliances, or a small room full of garbage. With pricing based on junk volume, it can be more or less depending on the customer’s needs.
Junk removal business owners need accurate knowledge and data of all overhead, including:
- Employee wages
- Insurance (injury, liability, business auto, and more)
- Landfill fees and other disposal costs
- Fuel costs and auto payments
- Office, marketing, and other expenses
In some cases, the junk removal business can benefit financially during the disposal process, such as by selling scrap metal or receiving tax deductions for donations.