Intro:
Junk removal companies are among the most lucrative businesses to own. They have a low barrier to entry and high-income potential. Plus, the competition isn’t as high as in other industries.
Removing junk is a hands-on field. It’s also dirty. Some entrepreneurs stay away from these kinds of duties and head in different directions. The good news is that once you start bringing in enough revenue, you can start hiring staff to handle the dirtier sides of the business.
With staff working in the field, you can focus on high-impact tasks that bring in additional revenues such as marketing. To learn more about marketing for junk removal companies, check out Gigly.
We outline the benefits of starting your own junk removal company.
Some industries have high barriers to entry. Owners must obtain several licenses and permits. They must also invest a large financial amount to cover the startup costs.
Low Barrier to Entry
In addition, entrepreneurs must obtain several years of education. That’s not the case for those who want to enter the business of removing junk.
An entrepreneur can start this business with as little as $100. The amount covers the fees to register the business with the state and apply for a business license.
You’ll need to purchase insurance and lease land and equipment but you can also scale those expenses. As your company grows, you will purchase additional insurance coverage, increase your fleet and marketing budget, and require more space for the junk – that’s down the road.
Until then, it’s possible to bootstrap the costs.
Low Maintenance Business
In addition to the low barrier to entry, this business also leans toward the low maintenance side. If you decide to pick up hazardous junk, you will need to obtain additional permits and licenses.
If you keep it simple, the red tape is minimal. Moreover, you’ll work with motivated and niche clientele such as homeowners who want to get rid of their junk.
Another clientele is business clients who must keep their properties clear of eyesores. They will also have a sense of urgency to get the job done quickly.
High-Income Potential
Some researchers estimate that junk removal businesses can haul in $500 per load. When you scale the company, you have the opportunity to increase the number of loads that your team picks up.
Thus, companies that remove junk have high income potential.
Since most new companies fail within the first two years, professionals advise entrepreneurs to start small. In this case, you can start by leasing one truck and a small parcel of land where you will store and sort the junk.
When you see demand grow, search for a larger parcel of land and consider leasing a second vehicle. Take into account that this sector experiences seasonality. For example, you’ll thrive in January through February when renters tend to move. You’ll also thrive at the beginning and end of the school year when students move.
Thereafter, you’ll need to create demand. Your goal is to avoid leasing too much equipment that will become idle for several months.
Learn on the Job
This business doesn’t require a college education. Technically, it doesn’t require a trade school certificate or high school education. To start it, you need an entrepreneurial spirit.
As you grow the company, you’ll benefit from attending business courses for entrepreneurs. These courses detail how to manage the company’s financials, grow it, and manage staff. The rest you will learn on the job.
It’s a great way to learn without the risk of losing a large investment.
High Growth Potential
Junk removal falls into the waste management sector. Data shows that 20,000 of these companies exist in the United States. Other studies show that 7,000 junk removal businesses exist in 14,000 locations. Together, they employ about 120,000 individuals.
Entrepreneurs run some of these companies independently. Others are part of franchise networks.
Taking the franchise route does require an upfront investment that ranges between $90,000 to $150,000. However, you receive brand recognition and a support system for your investment.
Nonetheless, plenty of growth potential exists.
Conclusion
Starting a junk removal company is an opportunity to become an entrepreneur. Since it has a low barrier to entry and requires low maintenance, it’s among the easiest ways to become your boss. You can start the business from scratch or you can buy into a franchise.
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