Starting a business in the junk removal industry is very easy. It is not time-consuming, don’t need to invest a lot of money in capital and it is very lucrative. Junk removal business can bring a significant amount of income if handled correctly. And the best part? You only need a little amount of money and some of your time to start this business. But before anything else, to be a successful junk removal business, you first need to build a good reputation, maintain a strict work schedule and of course find good clients that can help you disseminate your brand. There are steps to follow when you want to start your own junk removal business.
According to Canada Business, “You have to study your market first”. Research everything about junk removal business, your area of operation, your competition, the cost and the nature of the company. Find out how other players do their transactions. You have to decide whether you want to operate in a residential or commercial area. Study their activities, how they advertise their business, their prices and how they handle their service area. If there’s a major company operating in your area, study their strategy. Understand how they become successful and observe how they conduct business with their clients. After you find everything there is to know, apply that in your endeavor.
You also have to decide whether you are going to franchise or start your own. Franchises are good if you don’t know that much about junk removal. They can give you an existing and proven business model, advertising and branding. They will also help you set up your trucks, or they can give you options on how to buy second-hand units. But starting your business with a franchise is very expensive. You have to pay a franchise fee or royalty fee before you can start your business. Some franchises require you to split your profit with the parent company. Some businesses like Langley Junk Removal – Starting at $60 | Big Phil’s Rubbish Removal Langley, cheaper than its competitors so splitting profit with the parent company is a disadvantage since if you can’t find more customers, the return of investment can be a long-term goal.
Another thing to focus on is your business plan. These proposals should show how you plan to start your business and how you will earn back your capital and make money. Start by stating your company’s objective and how you can achieve that objective. Include your market research in your business objective and show that there is room for your company to grow. Explain how you will price your services, the operating costs, and where you will get the money to fund it. Make sure to base your pricing model on your expenses and your competitor’s prices. Estimate your costs and expenses including equipment, employee wages, gas and disposal fees. From there you can set your pricing schedule. Your rate will depend on how you charge your customers. Either by weight, truck space or by the job. You can always adjust your pricing since this is just your initial plan. One of the best strategies to compete with other junk removal businesses is to charge less than they do. You may earn less money that way,but you can attract their customers, and it will be good for you in the long run. You also have to decide whether you employ additional people or hire contract labor. Regardless of your decision, it is essential to know all there is to know about labor codes.
With regards to funding, You don’t need to set up office space or lease storage units, so the cost to start is lesser. But you still need some money to buy trucks, spend on marketing efforts and money to spend on your first job. To cover these expenses, you can ask the bank for a loan, credit union or ask money from your friends and family member. You can also ask help from SBA or Small Business Administration to guarantee your business loans and make sure you get the money that you needed to start. The first few months can be challenging since you are still looking for potential clients, so make sure the money you have will cover every expense for the first couple of months. You can save money by not buying a truck immediately and renting a second-hand junk removal truck