How To Start a Junk Removal Business
Starting a junk removal business is easier than you think, plus it can be paired with seasonal businesses such as snow removal for more income. Like any business, you’ll first need to form a business entity to get a tax ID number (EIN), open a business bank account, and get basic insurance and legal support. After that point, the difference in starting a junk removal business is based on your area of interest. Not sure where to start? You can learn about the process you need to follow with LegalZoom.com and 1800Accountant.com to start so you can have someone to coach you through the right process and paperwork, and then hire more dedicated business support professionals as your business grows.
According to Alliance Disposal, the junk removal industry is a billion-dollar business, which has grown significantly through the 90s and 2000s. The waste industry is valued at $75 billion per year, with junk removal totally $10 billion. That’s big business, especially considering how easy it is to get started creating your own junk removal business. But before you start a junk removal business, be sure to research how many junk removal businesses are already in your area. Maybe there is a region nearby that is underserved and has less competition, such as the countryside outside of a city. Also look into the possibility of owning a franchise of another junk removal business, which might make it easier to get started and find customers.
What Types of Insurance You’ll Need as a Junk Removal Business
For a junk removal businesses, you’ll need basic liability insurance and professional liability insurance, which protect you against claims of negligence and incompetence, as well as covering injuries that might come up from work associated with your company. When your workers are hauling junk all day, this is particularly important coverage. You will also need auto insurance for vehicles you use for your hauling business.
Do you need a license? That depends on what state you’re in. Generally for a junk removal business you won’t need a license, but you can check out your state’s rules and regulations for contractor and business licenses if you aren’t sure, or if you need to combine businesses with another seasonal business.
Marketing a Junk Removal Business
Junk removal businesses should start with regional advertising to attract local clients. The key to standing out among the competition is to make it clear where you specialize. You could advertise a special promotion or a discount rate for smaller hauls or bulk hauling deals for businesses who could give you repeat business.
Try advertising in:
- Google Ads
- Yelp listings
- Google Map listings for local businesses
- local publications
- online industry publication
Also remember that many junk removal jobs come from home renovations or natural disasters. Network with other businesses such as mold removal, home renovation pros, and builders to find business referrals.
How To Run a Junk Removal Business
You’ll also need a place to put all that junk, so make sure you research options for where to dump junk hauls locally. Start with the local landfill, recycling plants, reuse shops and donation-based furniture and used good stores and charities to find the best options.
Once you have your business setup in place, you’ll also need a CRM or software tool to manage your client contacts, and handle scheduling, invoicing, payment processing, and maybe even teams. Yottled offers these services along with a white-label website if you need one, to keep everything in one place. Then you can advertise, and clients can schedule right on your website so you can easily keep your clients and schedule organized in one place.
Congrats on your junk removal business! Happy hauling.