Junk removal and waste collection businesses can be highly profitable ventures. The demand for this type of service has been continually growing within the United States and Canada. The waste collection industry had a total revenue of $49 Billion in 2018 according to a report from IBISWorld. This growth has been met by new operators entering this industry which has led some to call it saturated. There is ample opportunity in this industry; however there is also stiff competition. In this guide, we present some beginner tips that will help you get a head start over the competition if you decide to start your own junk removal business.
1. Do Market Research
The market varies a ton, depending on the state and city that you reside in. It is an essential requirement to complete in-depth market research for the location that you aim to operate in. You have to understand your competitors if you want to beat them. Find out who the successful ones are and have a look at the services they offer alongside the pricing. It is also important to choose a demographic to target and look at which services are already catering to it.
2. Asses all Potential Regulatory Barriers
Junk removal and waste collection are businesses where regulations can vary significantly depending on the area. It is vital to check through all regulatory standards before starting your business. You should be operating within the law from day one, so you don’t get caught up with any fines as your company develops. It is essential to check through local, state and federal laws with regards to waste collection.
3. Build a Viable Business Plan
All successful businesses require solid business plans that are both realistic and sustainable for the long term. Christopher Luciano, CEO of Junk Removal Toronto company JunkiT said, “A plan should contain your entire overhead which is the total of all your costs including any government costs and marketing costs. You should also figure out a viable pricing strategy that is both competitive and allows your business to remain sustainable. The hours and days of operation should also be considered in a plan a business plan. Some junk removal businesses stick to weekends whereas others work six days a week.”
4. Take into Account the Seasonal Nature of the Work
Junk removal and waste collection services are relatively seasonal jobs. There will be months where demand peaks and months where work will be far slower. You should prepare for this beforehand so that your business is able to handle the busy season, and also cope with the reduced activity in the quiet seasons. The spring and summer months will be the busiest for your business.
5. Have a Marketing Plan in Place
The competition is fierce in this market, and therefore differentiation is critical. Your marketing plan will ultimately play a significant role in the success of your business. Defining your brand from day one is essential. A good branding strategy involves having a captivating logo that can be placed on your van and in all social media networks. Brand visibility is an essential aspect of all good marketing plans. Since this a local business, it can be helpful to reach out on websites such as Craigslist and Yelp to build your online presence. You should provide details of your services and the pricing on these online listings platforms. Eventually, you will have to set-up your own website. The website should contain all the vital information about your business as well as all relevant contact details. The depth of your marketing plan will ultimately depend on your budget, so it can evolve as your business grows and develops. Marketing Source provides further information on the digital marketing strategies that can be utilized by junk removal businesses.
Conclusion
Starting a junk removal or waste collection business isn’t easy by any means. However, it is reasonably accessible to most people and has the potential to create serious revenues. The waste management market is expected to garner around $484.9 Billion annually by 2025. This guide will have helped you understand the basics to keep in mind so you can get up and running on your own junk removal venture.