Starting off a junk removal business seems like a straightforward self-employment idea in this day and age. There are plenty of junk removal services recently launched to capitalize on the growing need for safely removing junk from premises. People are looking to get rid of their junk and they are willing to pay you good money for that purpose. There has been no better time in history than now to start a junk removal business and there are more opportunities for you than ever before.
Even though a junk removal service can be a very lucrative and successful small business for you, there are certain things that you should know about before you start. We will be highlighting a few of them, so that you have a better idea of where you stand and whether this will be profitable for you. So, here are some of the things you must weigh when you are deciding whether or not you should enter this line of work.
Perform Market Research in Your Area
You must first conduct competitor analysis in your area, which will mean finding out who the local junk haulers are, and then try and determine which ones are successful and what makes them stand out. Your search shouldn’t only include independent junk removal services, but also some of the larger and more established names in the industry such as 1-800-GOT-JUNK? and others.
To be successful, you will need to understand not only the prevailing rates charged by your competitors but also your cost, which includes your overhead for properly recycling or disposing junk, so that you can accurately determine your profit. You can try calling some of the local companies and ask for their junk removal prices. You need to do this to find out the different rates for various types of junk. Some will go straight to the landfill, but others might be sold to scrap dealers, donated to charities, or other uses that will impact your cost of removal.
Check Out Regulatory Hurdles
You should check out all regulatory hurdles before starting your junk removal business. There may be local, state, and federal laws applicable to the lawful disposal of junk, especially hazardous waste, and fines may be applied if the disposal isn’t carried out in a legal manner. You don’t want to be caught unawares or be subjugated to paying fines if you’re not careful in your waste disposal, which is why it is a good idea to learn about what laws are applicable to junk removal in your area.
Take a Junk Removal Job
Another aspect of your market research might be to take up a job with another junk removal company for an initial period to gain a better understanding of the business. If you’re planning to invest in getting a new enterprise, this is going to help you gain an understanding of the business before investing yourself. Once you get a real taste of what the job is going to be like, you can make a plan for properly organizing your business. This will only help you overcome the hurdles of a junk removal business.
Try Advertising on Listings
If you’ve got a pickup truck, you can start advertising your business on different listings and take a few jobs for cash, just to see how you like the experience. With your initial market research already completed, you now have an idea of how much you should be charging for junk removal. This will work in your favor, and you will realize just popular your junk removal service is in your locality and whether there is a demand for junk removal.
Study Bigger Brands
The entrance of bigger brands in the junk removal service industry has helped raise the bar on customer expectations for appearance, professionalism, and price. It has become imperative to provide exemplary and professional customer service to people. However, you have the opportunity to customize your business approach to help differentiate yourself from the bigger brands in the industry.
Know the Barriers to Entry
If it doesn’t take you much research or financial investment to get into the junk removal business, then you should know that it won’t take much time for others as well. This situation is known as a low barrier to entry, which means that new participants may be continuously cycling in and out of the industry. First, entering and possibly underpricing their services, because they don’t have a realistic picture of the overhead costs they will have to meet to remain viable.
Your best bet here is to differentiate your services to make them extraordinary, so that customers will rave about you. Make it impossible for them to choose another service over yours, and you will have set up a formidable business in the junk removal service.
You should know that the spring and summer seasons will be the ones that will be the busiest when it comes to junk removal. You must anticipate that these will be your most lucrative seasons, with things slowing down in the fall and winter. So, plan on launching your junk removal business at a time when you are anticipating the most activity when it comes to junk removal, as that will help you establish a firm footing in the industry.
Put Together a Business Plan
After doing the research, you will be ready to put together a business plan for your junk removal business. A business plan is a document that summarizes the operational and financial objectives of the business and contains detailed plans and budgets showing how the objectives are to be realized. As the business plan contains detailed financial projections and forecasts about your business’s performance, and a marketing plan, it is an incredibly useful tool for business planning.
So, there you have it, all the basic things that you should know about before you go ahead and start your junk removal service.