Junk hauling is an evergreen and highly lucrative business. The city of Los Angeles recently awarded a $3.5 billion contract to seven junk hauling companies. And that is just a fragment of the junk hauling industry. So, How to Start a Junk Removal Business?
I have been hauling junk since 2007. When I started my junk hauling business it was only supposed to be a temporary thing until I got back on my feet. It is now 2017 and I’m still in the junk hauling business.
I got started a junk hauling business out of the need to provide for my family. I was an out of work real estate salesperson. I have a very nice lifestyle. I make a very nice six figure income by owning a junk hauling business.
My first year in junk hauling, I loaded several dumpsters, several truck loads, and go to the city landfill to dump our loads. After I learned the junk hauling business, I hired crews that did all the work.
Planning Your Junk Removal Business
The possibilities for start junk hauling business are endless. When I started junk hauling business, I started cleaning up bank owned properties. At the peak of the recession I had eight crews hauling junk from bank owned properties.
I put up my first website http://haulinginla.com from this site. I get calls from homeowners, property managers, hoa associations, etc. etc. They want to clean up their garages, yards, basements, attics, etc. etc.
As the country recovered from the recession of 2007. I built a new website http://365junkremoval.com, the purpose of this website was to start a marketing campaign for contractors with new construction projects. My crews are now slammed with work.
There is always a need for junk haulers. During the recession my company did very well cleaning up bank owned properties. Now that the economy is recovering we are slammed with jobs from contractors that are begging up to maintain their jobsites / construction projects clean and safe of construction debris.
A junk hauler can get jobs from:
- Asset Companies
- Loan Servicing Companies
- Credit Unions
- Preservation Companies
- REO Listing Agents
- Real Estate Agents
- Framing Contractors
- Drywall Contractors
- Custom Home Builders
- Carpet Installers
- Builder Managers
- Homeowners Associations
There are also jobs that are posted by:
- Federal Government
There is also Specialty Hauling Jobs:
- Heavy Debris Haulers
- Dirt Haulers
- Asphalt Haulers
- Concrete Haulers
- Pool Builders
And this is just to start the list goes on and on.
Junk Hauling Franchise or On Your Own
When I started my junk hauling I started with no truck, no equipment, no junk hauling business experience, also no money. When I started I could not of bought a franchise.
I started making money in junk hauling. I considered purchasing a junk hauling franchise. I did some research and found that there is junk hauling franchise that can cost up to $240,000.00. I did not consider it again. You have to do a lot of junk hauling jobs to recover the $240,000.00. I did not have $240,000 to buy a franchise. In addition to paying the high cost of the franchise, you have to share your profits with the franchise. I already have one partner that takes a percentage of my business the IRS.
It seems like they have a good business model and there are franchisee that make money. Since I did not have the money, I put sweat equity into my business. I learned the following skills:
- Website Design – Start Junk Hauling Business
- Internet Marketing – Start Junk Hauling Business
- Internet Advertising – Start Junk Hauling Business
- Search Engine Optimization – Start Junk Hauling Business
- Email Marketing – Start Junk Hauling Business
- Copywriting – Start Junk Hauling Business
I built a very profitable junk hauling business without a franchise, and I do not have to share my profits.
A business plan that spells out how you plan to start your junk hauling business and make a profit. In what condition is the economy in, is the economy in a rising or declining market. Start by stating how you will exactly who is your target market. Include your market analysis showing that there is room in the city or area for your business.
Explain your pricing model, startup costs, marketing and advertising strategy, and how to start junk removal service to fund your business.
The pricing of the start junk removal service-pricing model should be based on both your cost, expenses and the prices charged by your junk hauling competition. Estimate your expenses (equipment, overhead, employee wages, dump fees, and gas or diesel) and then work from there to determine a suitable pricing.
Your pricing strategy is up to you. You can charge by weight, by how space in the truck is filled by the junk. It is suggested that you put disclosure that there are additional fees for heavy debris.
This is just your initial plan. You can adjust pricing as you become more experienced.
- Strategy One – to price cheaper than your competition.
- Strategy Two – give better junk hauling service
- Strategy Three – give better customer service
Whether you will use employees, contract labor, or both. Either one you choose, you need a thorough knowledge of the laws that define the nature of the employee laws affecting your start junk removal service company.
Research Your Business (do your homework)
Real market data needs to be researched.
You need to study secondary research collected by data, as well as getting primary research that you gather yourself, with your own approaches and observations. Ponder the following areas of inquiry:
◦ Is there a feasible market for youe junk hauling business?
◦ How old are your possible clients?
◦ What do they do for a living?
How many contractors are in your area?
How many new construction projects are in your area?
How many Bank REO are in your target ?
How many REO agents are in your area?
Establish the size of your potential market
It’s significant to be as precise as possible in regard to your market and your start junk removal service. Junk Hauling is needed every household
How many contractors are in your area?
How many jobs does the average contractor have?
How many REO are in you area?
How many bank owned properties are in your area?
How many junk haulers are in your area?
How many bin companies are in your service area?
How big is your junk hauling competitor?
Obtain funding to get you started
How much cash do you need to start junk removal service?
When I started my junk hauling business, I started with no money. I started by sub contracting out my jobs. And within six months, I bought my own dump truck. I bought a used dump truck. I did not buy anything fancy. I just wanted a work truck, for start junk removal service.
You can cover these costs with a loan from a bank or credit union, or money from a pal or family member. The Small Business Administration (SBA) also insurances business loans at banks and can help you qualify for the money you need.
Buy a Used Dump Truck
Purchase, a second-hand dump truck or any truck that you can get a deal on.
A dump truck that you will use to transfer customer’s junk to waste recycling or the land fill. Look for one with sizeable load space and good fuel economy. You don’t need any extras like air conditioning or leather seats to your dump truck. Just make sure it runs dependably you don’t want to end up disbursement more on services than you would on new truck payments.
You may also need to invest in a GPS system. It is well worth the money to help you navigate around your junk hauling service area. A good GPS system will also help you avoid traffic jams. A smart phone also has mapping systems.
Use technology to grow your junk hauling business. A good website can bring in leads and orders. When a new order or inquire comes in you have a system in place to quickly and efficiently route the new order. When a new inquire comes in from big player a preservation company or a contractor that can give you hundreds of orders of year – you the owner should be made aware of, so it can properly managed and converted to a client.
If you do not have a dump truck, but you own a pickup truck, See Here
Hand-free phone sets
You and crews will need hands free phone sets. This is necessary for several reason. It will bring in more revenue for your bottom line. eg. You receive an order for a junk hauling job and you already have a crew that is in the area and can quickly pick up the debris for the new order. This is very efficient way of doing junk hauling business.
Uniforms – Vs Non Uniforms
Your Junk Hauling Company will appear more professionals if you and your crews wear the same, clean and neat uniforms.
Heavy duty clothing will last longer junk hauling is hard on the clothes.
Safety Equipment Needed:
- Steel Toe Work Boots
- Heavy Duty Gloves
- Breathing – Respirator Mask
- Lifting Belts
- Safety Goggles
- Safety Vest
Safety is the most important factor when it comes to junk hauling. Start junk removal business is a very dangerous job.
Acquire a business license
Required Business Licenses For Junk Hauling Business
Your Junk Hauling Company needs to be registered with your local governmental agencies – including the your City, County and State.
Your local chamber of commerce my give you assistance. The requirements vary between cities, counties and states.
There several ways to register your business such as:
- Sole Proprietorship – Doing Business As
- Limited Liablity Company
- Limited Liability Partnership
- Privately Held Company
- Public Company
- Limited Liability Limited Partnership
- Joint Stock Company
- Public Limted Company
- Series LLC
You may need to contact a local business attorney, that is familiar with waste disposal. An Attorney will help you decide which of the above would be the best way to set up your junk hauling company.
You will likely have to record a “doing business as” name with your local government, at the minimum. There may also be special permits or licenses you need for transporting hazardous material.
Some Cities, States require that anyone hauling large amounts of materials as a commercial activity possess a license for doing so. Failure to obtain a license before hauling may result in fines or your arrest.
Other localities may include laws specific waste junk removal permits.
Los Angeles, for example, requires that junk removers register with the city and apply to obtain a specialized license.
Try talking with other local start junk hauling business owners to see if they will help you with steering your city’s permit requirements.
If you plan on have employee’s or independent sub contractors you will also need an employer identification number (EIN) from the IRS if you plan to have employees. Getting this number is free on the IRS’s website.
Purchase appropriate insurance.
Insurance for a Junk Hauling Business
There are three types of insurance you will need:
Dump Truck Insurance
General Liability for Junk Haulers is a broad type of insurance policy, which provides liability insurance for general business risks.
Workers Compensation for junk haulers is a form of insurance providing wage replacement and medical benefits to employees hurt or injured during the course of employment in exchange for mandatory relinquishment of the employee’s right to sue his or her employer
Commercial Dump Truck Insurance is insurance for commercial dump trucks. Its primary use is to provide financial protection against physical damage and bodily injury if the dump truck is in a collision.
When you work with Property Preservation Companies removing junk from, they will require that you have at least the above insurance.
If you want to work with big construction companies, they will also require the above three insurances.
Promote your business.
Build Your Junk Hauling Business
The best way to build your junk hauling business is by building a website. 90% of people looking for services are checking the Internet.
The junk hauling business building experts at http://startjunkhaulingbusiness and http://startjunkremovalbusiness.com states that all traditional media is dying off. TV, Radio, Newspaper is all dying off. The Internet is growing at a very fast pace.
To be a successful junk hauler, there are a lot of tools that available to junk haulers with a website.
With a website you can:
- Search Engine Optimization
- Local Search Engine Optimization
- Search Engine Marketing
- Email Marketing
- Google AdWords
And the list goes on
With a website the cost of advertising your junk hauling is a lot cheaper than traditional media. The cost to send out one thousand flyers via US mail to advertising your junk hauling business can cost up to one thousand dollars. Compared to email marketing that will cost you a few cents to send out one thousand flyers.
Working Smart as a junk hauler is more profitable.
There will be times when the items you pick up someone junk that is someone else’s gold. This will save you the dump fee and be good for the environment.
Recycle as much as you can.
Know where the landfill and dumps site
Plan and route your junk hauling days each night before your junk jobs. Route the most efficient routes, preferred going against traffic. The app Waze can help you navigate around your jobs.
enlist workers as needed.
If you manage your junk hauling business correctly, there will come a time when you will need additional help to handle all junk removal jobs.
Your well optimized website that was built by http://startjunkhaulingbusiness.com will bring you jobs. There are several ways to manage your debris removal jobs.
Manage Junk Hauling Jobs:
Subcontract Junk Cleanup Jobs to other haulers
Hire day labors as needed
How To Find Workers:
Referrals from current works
Each State and City has different labor and immigrations laws.
Prepare your employees for success
Train your employees on the importance of safety. Junk hauling require a lot of lifting. Training on the proper ways of lifting heavy debris.
Big bulky items can be broken down. It will be easier to lift and it will be more efficient to load onto your junk hauling dump truck.
Train your junk hauling employees to always maintain a professional appearance and conduct when talking and dealing with customers.
After each job the area your junk hauling specialist worked on, should be left clean and neat, in broom swept condition.
Photo Documenting Each Junk Hauling Jobs
Your crews should have smart phones. They can use smart phones for talking, navigating around the city traffic, managing cost of each job and the list goes on. The one of best part of a smartphone for a junk hauling company or junk removal company is the photo taking capabilities.
Your Junk Debris Removal Specialist – your crew – are to be trained to photo document each job. This useful for several reasons.
It is just good business for junk hauler to photo document each jobs, as they say a picture is worth a thousand words.
When we cleaning up bank owned properties, it is a requirement to photo-document each job. Before condition photos of all the debris as it was in the property. During photo – photos of the junk on your junk hauling dump truck or junk hauling hauling trailer. After photos of the condition of the property. The property always looked a million times better with the debris gone.
The photos can then be used to on your website, on your Facebook page, on Instagram for marketing your start debris removal business.
Different ways to make money junk hauling business
The junk business builders at http://startjunkhaulingbusiness.com suggests to build the biggest website possible with as much information for potential clients that are in need of general cleanup services.
They built pages and pages. One of the pages they built was “Dirt Removal Los Angeles” the page was number one on several search engines. I started averaging five to six calls a day for dirt removal.
I do not haul dirt. Specialized trucks are needed for hauling dirt. I quickly searched and found a few independent heavy material haulers. I worked out a deal with them: I would get ten percent commission on every job.
I started routing the dirt hauling calls to the dirt haulers. The first check I received in the mail was for $420.00. I called the dirt hauler and thanked him for the check. He informed me that he removed twelve truckloads of dirt for swimming pool contractor at $350.00 a truck load. He thanked me for the job. In addition the swimming pool contractor was going to start using him on a regular basis.
Junk Hauling and Customer Relations
A contractor of high end properties started giving us construction cleanup jobs. I inquired with the crews about the new company we working with. The crews informed the new client was a class A client. In the next few days, I called the client and offered to take them burgers to their job site. I took them the burgers and met with them. We hung out a bit, we got to know each other, it was very nice. In the next few days we got several jobs from them. I later found out that we were their exclusive construction cleanup company. I spent maybe forty bucks on the burgers and as a result got hundreds of jobs from them.
Junk Hauling Jobs Are Everywhere
You just have to look here are some examples:
- Every Bank Owned Property Needs to be cleaned up
- Every homeowner when they buy new furniture the old has to be removed
- Every Construction Site
- Every company when they buy new furniture – will need the old hauled away.
- Federal Junk Removal Jobs
- State Junk Hauling Jobs
- Cities – Junk Hauling Jobs
- Counties – Junk Hauling
There are hundreds of the jobs available – you just have submit your paperwork and bid the jobs.