How to Start a Junk Removal Business

Individuals and businesses often need help hauling away unwanted furniture, clearing out an attic, emptying a foreclosure, or even just getting rid of things that they can't throw out in the regular trash. This is where junk removal companies come in.


The junk removal industry, which includes junk moving, hauling, and packaging, is competitive but growing. It is valued at over $10 billion a year in the US.

Junk removal is an industry with projected growth, and you can be a part of it by starting your own business or buying into a franchise. 


Like any other entrepreneurial venture, starting your own junk removal business is challenging but extremely profitable and rewarding. 


In addition to hauling heavy garbage, it also involves scouting local donations and recycling solutions. 


Of the 350 million tons of waste produced in the US each year, only a little over 85 million tons of the waste is considered compostable or recyclable.

So clearly, by owning a junk removal business, you can help make the world a better and cleaner place.


But what does it take to start your own junk removal business? Let’s find out! 


Things To Consider Before Starting A Junk Removal Business 


There are more opportunities now than ever before for household junk services; however, there are also some important points to consider while deciding whether to enter this line of work.


Do your research


Conducting market research is an integral first step to starting any business. You can begin by finding out who the local junk haulers are and what makes them successful. 


You will also need to understand the rates, including prices charged for different services and the costs of running the business. 


Depending on the different kinds of junk you're dealing with (landfill, donation, recycling, etc.), you'll incur different removal costs. 


You should also learn the various kinds of waste that exist and how to deal with them. 


You should look up local disposal regulations and facilities so you can choose suitable disposal locations methods and acquire the necessary permits and licenses.


Junk removal is a physically demanding career, so strength and endurance are essential. You should also be aware of safety regulations and effective training methods to have procedures in place to protect yourself and your employees from any possible accidents.


Lastly, make sure you know the barriers to entry. Since this is a competitive industry with low barriers to entry, your best bet is to differentiate your services and products from the local competition so that customers choose you.



Get some experience


While the idea of being your own boss and potentially making lots of money is exciting, it doesn't happen overnight. 


Customers will probably avoid doing business with someone with no experience, so consider getting a job at a junk removal company before starting your own. 


This will help you pick up essential skills, like proper lifting techniques and customer service, and better understand how the industry works. 


Additionally, it is helpful to gain some management experience. 


Having experience in hiring, training, and managing staff will make it easier to hire the right employees for your business. 


It also makes it easier to develop a business plan for your startup, which is a crucial step to ensure success.



Create a business plan


After doing the research and gaining some hands-on experience, you are ready to put together the business plan for your junk removal business. This plan should summarize your budget, list of operations, specific short-term goals, and long-term objectives. 


Your research and experience should help you understand the dos and don'ts of owning a junk removal business, and having a solid business plan can help you quickly establish, maintain, and grow your junk removal business from the ground up.


Costs of Starting a Junk Removal Business


Depending on the space and vehicle you have, starting a junk removal business can be relatively affordable in most cases. Some essential costs to consider before starting a junk removal business include: 


  • Vehicle

  • Tools and equipment

  • Employee salaries

  • Uniforms

  • Safety equipment 

  • Vehicle signage

  • Location for sorting/disposal 


Your most significant expense is likely to be the junk hauling vehicle, usually a pickup truck. You can look for more affordable options like second-hand trucks to cut costs.


Typically, it can cost you up to $15,000 or more for the appropriate vehicle plus typical startup costs. 


Start Your Junk Removal Business from Scratch


After you decide you want to start a junk removal business and come up with your business plan, these are the steps you should follow:



Register your company


Paperwork is perhaps the most tedious task for starting any business. Here are some general tips that will help you register your contracting business correctly:



  • Speak to a professional (e.g., your lawyer) to determine what type of business entity is best for you. 

They can help you decide whether your business needs to be registered as a sole proprietorship, a limited liability company (LLC), a partnership, or another legal entity. Generally, most small businesses start as sole proprietorships.


Open a bank account


You need an active bank account to pay your bills, pay your employees, receive payments, and so on. Your local bank can help you set up a business bank account to start your junk removal business.


If you require external funding to start your junk removal business, you can apply for a loan from the bank or find investors interested in your business idea. 


However, you will ideally need to have good credit and be able to put in 15-25% of your own money towards the total startup costs. 


Get insurance


With general liability insurance, you can protect your business and employees from injury, legal costs, and inadvertent damages to customer property. 


Other types of insurance that you can buy for your company include commercial property insurance, commercial auto insurance, and workman’s comp insurance.


You can consult your lawyer or an insurance expert to guide you through all the necessary details. You can also find and compare many private companies online that sell business insurance.



List your junk removal business online


Listing your company online is an important step to make it more visible to your target audience. The most popular platforms to create an online business profile are Google, Facebook, Instagram, and LinkedIn.


You can also sign up on relevant contractor review sites to receive more customer reviews to advertise your junk removal business to potential customers.


Grow Your Junk Removal Business With Confidence


Owning a successful junk removal business takes time and effort, but we hope this guide makes it easier for you to get started. With the proper research and business plan, you'll have your services up and running in no time. 


Consistently coming up with effective sales and marketing ideas will allow you to acquire more customers and beat your local competition.