How to Start a Junk Removal Business

The junk removal industry—which includes junk moving, hauling, and packaging—is a fast-growing and competitive industry. With the amount of trash that Americans produce increasing, the industry has space for plenty of newcomers.

According to the 2022 Waste Collection Market Research Report, the overall waste collection industry has grown at an annual rate of 4.9% over the past three years. And the average annual sales of companies in the business in 2021 was $8.3 million.

One of the biggest reasons for the success of junk removal companies is that these jobs are physically demanding. In addition, customers often don’t have the time or expertise to carry them out.

As the amount of junk in people’s lives grows, you have an opportunity to turn another person’s trash into a rewarding business venture. We’ll highlight what you need to start your own junk removal business, including the skills that can lead to success.

• Before getting started in a junk removal business
• 6 steps to starting a junk removal business
• 5 skills for working in the junk removal business

Before getting started in a junk removal business

The prospect of starting your own junk removal business is exciting, but you should keep a few things in mind before starting down this path.

Research the market in your area

Identifying your target market depends on what type of business you want to specialize in. For example, some providers cater to homeowners who need junk removed, while others work with large commercial businesses. Deciding how much to charge for your services can also be tricky.

In-depth market research can help you understand what your existing competitors are charging, the cost of doing business, and the needs of customers. This assessment might also help you identify the fees you might charge to set up a profitable business. The amount will likely vary depending on the area you wish to operate your business in, the rates charged by existing junk removal businesses, and your operational and overhead costs.

Check for regulations

Find out what the local disposal regulations are, along with state and federal laws regarding junk disposal and recycling. Noncompliance with these laws can lead to large fines.

In addition, special licenses are often required for the transportation and disposal of hazardous waste such as chemicals, paint, or items containing asbestos.

Get to know the competition

While this may seem somewhat similar to the first section, it involves more in-depth research about existing junk removal businesses in your area. These competitors may be small local businesses or larger franchises, such as 1-800-GOT-JUNK? Understanding the competitive field is likely to impact how you go about your business.

Study their business models, pricing plans, and customer base to discover which specific businesses are successful and why. You should also try to determine how these enterprises are finding customers.

If you need help understanding the competitive landscape, consider hiring an independent competitive analyst on Upwork. These market experts have skills in analyzing varied industries across geographies and can give you useful opinions about your competitors.

Take a junk removal job to gain experience

Getting hands-on experience with another junk hauling business can help you understand the industry better. This end-to-end exposure will be an invaluable experience when setting up your own business.

In particular, working in the industry can help you assess the pros and cons of dealing with companies versus dealing with households. For example, you may realize that while the margins with companies are lower, the volume of work is much bigger and generally steady, whereas the opposite is true for households.

There are also opportunities to recognize possible treasures in the trash. For example, you might be able to recycle items for cash, such as money for scrap metal. Some items might have a dollar donation value that you can use to offset your revenue for tax considerations. You might even find items with second-hand resale value or higher antique and collectible value.

A full-time job in trash removal can also help you learn which parts of the business you enjoy and are good at. This way, you’ll know which roles you want to complete yourself and which you should hire other people to help do.

Last but not least, working for someone else gives you the opportunity to network with other individuals in the junk removal industry and even meet potential customers.

6 steps to starting a junk removal business

Now that you’ve done your research on the industry, follow these six steps to start your junk removal business.

1. Create a business plan

‍A business plan is a document that defines the objectives and goals of your business and how you plan to achieve them. Typically, it contains financial projections, department budgets and tracking plans, and marketing plans.

Because many uncertainties can affect your business’s output, planning specific details can help you track progress and make adjustments in your operations. The business plan helps you make strategic decisions that will move you closer to your new business’s goals.

Creating a great business plan is now easier than ever with Project Catalog™. This talent marketplace connects you with professionals who can help you make a detailed business plan for your new junk removal business.

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2. Make a budget

You’ll need to consider many factors when making a budget. Typical items include salary costs, business insurance, tools and equipment, and relevant licenses. As an ambitious business owner looking to grow your enterprise rapidly, be careful not to overestimate revenue and overspend on business equipment or resources you won’t need. Early miscalculations can add significant financial pressure to your small business.

Instead, use a well-developed budget to help you estimate your revenue better, plan your start-up costs, and determine how to allocate your resources.

If you’re not experienced in and enthusiastic about accounting, you might find that hiring an independent accountant through Project Catalog™ is a good idea. These skilled accountants can help you budget and streamline your expenses, potentially allowing you to save and make money in the long run.

3. Get the legal permissions you’ll need to operate

To start, you may need to register your business name and get zoning approval in the area where you’ll be operating. These requirements vary widely by state. As one example, any business that collects and hauls waste in the city and county of Denver must have a waste hauler license.

The U.S. Small Business Administration (SBA) listing of federal and state permit and license requirements for junk removal and many other types of small businesses is a starting point. Note that these suggestions are not comprehensive.

You might find it useful to engage a legal adviser who can help you obtain critical permissions and any business licenses required to set up and carry out your services legally. Explore the independent legal advisers on Upwork; many offer legal consulting services to help your business get started on the right foot.

4. Get equipment

Apart from workers, your other large expense will be junk removal equipment. This equipment includes:

• A large van or pickup truck to transport goods
• Uniforms for staff members
• All relevant tools to pick up objects and clean debris, like moving blankets, shovels, rakes, screwdrivers, saws, large boxes, bolt cutters, hand trucks, and sledgehammers
• Up-to-date safety equipment, such as protective goggles, gloves, and a PPE (personal protective equipment) suit

5. Get insured

In addition to the personal protection for your workers, you’ll likely need protection for your business in the form of insurance. Some insurance is required by law, but additional insurance may be valuable to avoid putting your entire investment at risk and protect yourself from loss and liability.

You can start learning about common types of business insurance options from the SBA. Consider engaging an experienced business liability insurance specialist on Upwork to help you determine what insurance coverage you may need.

6. Explore marketing strategies

Junk removal is a competitive industry. Having a good marketing plan can help you stand out from the crowd in the eyes of your customers.

One early step is to develop a business name and register your business. Your business name should be easy to remember and reflect your brand identity. You may need to register your name in four different ways to provide key functions:

• Entity name. Stops anyone in the same state from using your business name.
• Trademark. Protects your business name across the country.
• Doing business as (DBA) name. Allows you to conduct business under an identity different from your own name.
• Domain name. Enhances visibility to customers; this is your website address.

You also may want to make an easily recognizable logo. Your audience should have no issues remembering your name and logo. If you have an idea in mind but don’t have the creative skills to execute a design, we recommend hiring an independent logo designer on Upwork to put it on paper. These talented folks are also able to create logos for your consideration just from learning the basics about your company.

Next, consider advertising your services and offers through social media platforms like Facebook and Instagram, paid ads on Google, and more traditional forms of advertising, such as business cards, pamphlets, and flyers. If you’re looking for marketing assistance, consider hiring an independent marketer on Upwork.

5 skills for working in the junk removal business

These five skills are critical for succeeding in the junk removal business. Doing a self-assessment in these areas can help you determine if this industry is the right fit for you.

• Knowledge about disposal regulation and health issues. Each city and state may have different rules regarding the disposal and recycling of waste. You may be expected to comply with relevant laws and be aware of the types of junk, relevant landfills, and disposal plants in your area. Understanding safe practices for handling hazardous or toxic waste is vital to preventing contamination or health issues for you, your team, and the community.
• Attention to safety concerns. Invest in good safety equipment like gloves and goggles for everyone on your team and assess each project for risks. For example, apart from being heavy, many items being moved can also be dangerous and must be approached with caution. OSHA provides safety data sheets for concerns and proper handling methods for many potential waste streams you may encounter.
• Customer service skills. Customer satisfaction comes first in any service industry. You’ll want to learn how to create a pleasant customer experience for your clients. Developing good relationships with customers helps get repeat business, positive reviews, and referrals.
• Management experience. Prior management experience can help you monitor your business and hire, train, and effectively manage your team. A good leader and happy workers lay the foundation for a successful business.
• Physical endurance and knowledge of lifting techniques. Junk removal involves hauling heavy garbage and is a physically demanding industry. It may require upper body strength and know-how to lift heavy items without sustaining injuries. Be aware of your limits and use appropriate methods and tools to lift heavier objects.

Get expert help starting your junk removal business

With the waste management industry growing rapidly, junk removal can be a lucrative business. According to the Global Waste Index 2022, the U.S. generates the highest amount of  garbage per capita in the world, with each citizen producing about 1,790 pounds of waste annually.

Although the local waste management market can have a fairly low barrier to entry, you’ll want to keep the above tips in mind before setting up your own junk removal business.

Getting the proper professional assistance from experienced independent workers through Upwork can help you navigate the more technical aspects of starting your own business, including creating a business plan, obtaining the relevant permissions, and marketing your business to the right customers.

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Upwork does not provide legal advice, and this article is provided for informational purposes only. Each reader and company should take the time needed to adequately analyze the laws, regulations, and other requirements that may apply to their business endeavor. Upwork is not affiliated with and does not sponsor or endorse any of the tools or services discussed in this resource—these tools and services are provided only as potential options for each reader to consider.