removal company business plan

Junk Removal Business Plan Template

Written by Dave Lavinsky

Junk Removal Business Plan

You’ve come to the right place to create your Junk Removal business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Junk Removal businesses.

Below is a template to help you create each section of your Junk Removal business plan.

Executive Summary

Business overview.

Taking Out the Trash is a startup junk removal business located in Atlanta, Georgia. The company is founded by Jake Ambrose and Jerry DuPaine. Jake was formerly the operations manager of a junk removal service for ten years in Buford, Georgia, where he trained staff and ran the company operations for junk removal throughout the region.

Jerry was formerly the owner of a storage pod business for fifteen years and has an extensive background in the transport, hauling and storage businesses, including junk removal.

Jake and Jerry plan on providing junk removal services for the city of Atlanta and the surrounding region using a proprietary digital platform and customer-connected app system to provide service to any potential customer within one hour of the request. This “on-time, every time” experience will ensure customers can make a call for junk removal when they need it, rather than waiting for hours or even days to secure the services of a junk removal company.

Product Offering

The following are the services that Taking Out the Trash will provide:

• On-demand junk removal services (one-hour response time)
• Weekly or monthly junk removal service
• Commercial business junk removal
• Foreclosure/abandoned home junk removal
• Hazardous materials and liquid removal with advance preparation

Customer Focus

Taking Out the Trash will target all current and new property owners in Atlanta, Georgia and the surrounding region. Taking Out the Trash will also target businesses while closing, commercial properties, banks and foreclosure companies.

Management Team

Taking Out the Trash will be owned and operated by Jake Ambrose and Jerry DuPaine. Jake Ambrose was formerly the operations manager of a junk removal service for ten years in Buford, Georgia, where he trained staff and ran the company operations for junk removal throughout the region. Because of his extensive contacts within the junk removal industry, Jake has already secured the contracts for service with several commercial companies.

Jerry was formerly the owner of a storage pod business for fifteen years and has a thorough background in the transport, hauling and storage businesses, including junk removal. He has led twenty employees, truck drivers and staff members through industry evolutions and maintained a long-term growth strategy that garnered a generous return when Jerry sold the company two years ago.

Success Factors

Taking Out the Trash will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly qualified team at Taking Out the Trash
• Comprehensive menu of services, including junk removal for individuals and companies
• Patented digital platform and app that customers can utilize for 1-hour pickup orders
• Unique process for trash and junk hauling
• City contract with the Atlanta Landfill & Environment Improvement Agency
• Taking Out the Trash offers the best pricing in Atlanta. Their pricing structure is the most cost effective and their services are the most efficient in the entire region when compared to the competition.

Financial Highlights

Taking Out the Trash is seeking $200,000 in debt financing to launch the trash removal company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:

• Office space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for Taking Out the Trash.

Company Overview

Who is “taking out the trash”.

Taking Out the Trash is a newly established full-service junk removal business in Atlanta, Georgia. Taking Out the Trash will be the most reliable, cost-effective, and efficient choice for residential and commercial businesses in Atlanta and the surrounding communities. Taking Out the Trash will provide a comprehensive menu of hauling and junk removal services for any customer to utilize. Their full-service approach includes a proprietary digital platform and customer app to enable one-hour scheduling for junk removal.

  Taking Out the Trash will be able to serve a wide variety of customers with trash and junk removal services. The team of professionals are highly qualified and experienced in hauling and transport of oversized items, as well as hauling hazardous liquids and other items not typically allowed by haulers. Taking Out the Trash removes all headaches and issues of the junk removal process and ensures all issues are taken care of expeditiously while delivering the best customer service.

Taking Out the Trash History

Since incorporation, Taking Out the Trash has achieved the following milestones:

• Registered Taking Out the Trash, LLC to transact business in the state of Georgia.
• Has a contract in place at one of the office buildings where the company will open an office of 10,000 square feet.
• Reached out to numerous contacts, including property owners, businesses, banks, foreclosure companies, landscaping companies and other junk or trash businesses that need transport and disposal.
• Began recruiting a staff of office personnel and drivers to work at Taking Out the Trash.

Taking Out the Trash Services

The following will be the services Taking Out the Trash will provide:

Industry Analysis

The junk removal industry is expected to grow over the next five years to over $18 billion. As the population of Atlanta and the surrounding communities continue to grow, the growth of the junk removal will track with it. New home starts in outlying areas will require hauling of tree limbs, brush, and vine undergrowth in currently unpopulated areas. Industry growth will also be driven by the increasing number of consumers who will want to renovate or redesign their own properties, landscapes, and interior designs. Costs will likely be reduced as economic factors become more positive, reducing the pricing of fuel.

Customer Analysis

Demographic profile of target market.

Taking Out the Trash will target those individuals and companies needing trash or junk removal services in Atlanta, Georgia and the surrounding regions. They will target companies in foreclosure or going out of business. They will target corporations or businesses that are moving and desire to rid themselves of old furnishings.

Customer Segmentation

Taking Out the Trash will primarily target the following customer profiles:

• Individuals purchasing junk removal services
• Commercial enterprises purchasing junk removal services
• Individuals or companies requiring hazardous waste removal
• App-connected customers or clients who need one-hour service
• Foreclosure companies performing a residential or business cleanout
• Banks or other financial institutions holding deeds or mortgages

Competitive Analysis

Direct and indirect competitors.

Taking Out the Trash will face competition from other companies with similar business profiles. A description of each competitor company is below.

Atlanta Combined Services (ACS)

ACS is the largest garbage service company in the Atlanta region, with over 5 million customers on weekly pickup routes. A fleet of service vehicles provide trash and garbage pickup, maintain contracts, secure payments and ensure continued service for the city’s residents. This is a direct competitor to Taking Out the Trash, as services can be obtained from ACS for junk removal with a scheduled two-week waiting period.

The company was started in 1954 as a private partnership and went public in 1987. Since that time, it has continued to grow from 271 employees to 689 employees and 44 executive staff members occupying an eight-story corporate building on the outskirts of Atlanta. While ACS provides service in most of the same categories as Taking Out the Trash, hazardous liquids are not accepted by ACS for removal.

Edgy’s Trash Haulers

With a television jingle, titled “We’re Gettin Edgy!” Edgy’s Trash Haulers has become a household name in Atlanta, Georgia. Started by Edward and Tina Combes in 1997, Edgy’s Trash Haulers is a direct competitor to Taking Out the Trash. The company provides trash and junk hauling for the Atlanta region, including the city proper, and has 15 trash and junk trucks that travel extensively throughout the city and regional areas, picking up removal items. The company is now run by the two sons of the Combes, Tim and Tracker Combes. They have instituted a six-day work week for their employees, albeit the hours each day are shortened to 6 hours maximum. This schedule spreads services evenly throughout the day, while providing weekend hauling services to compete with their direct competitors.

Edgy’s Trash Haulers hires formerly incarcerated personnel to drive the trucks and, as drivers continue with on-time service records, they can apply for and receive management positions as they work their way through the corporate structure of the company. This policy has resulted in an increasing number of applicants for open jobs at Edgy’s Trash Haulers.

Buford Hauling

Based in Buford, Georgia, this junk removal company has a limited scope of business potential; however, the residents and businesses within their established boundaries are loyal customers, returning again and again for junk or trash removal services. Buford Hauling is a direct competitor within a limited capacity, as the company does not haul hazardous liquids and has a small service area geographically. Buford Hauling is a family business, owned by George and Georgina Crawford, who started the company in 1944. In the post-war era, several buildings had to be torn down or renovated; the hauling business was booming at that time. Over the years, the scope of business has kept the company from the long-term growth strategy desired and it has been rumored during this past year that the sale of the company may be near.

Competitive Advantage

Taking Out the Trash will be able to offer the following advantages over their competition:

• Friendly, knowledgeable, and highly qualified teams for junk removal

Marketing Plan

Brand & value proposition.

Taking Out the Trash will offer the unique value proposition to its clientele:

• Highly-qualified team of skilled employees who are able to provide reliable, secure junk and trash removal.
• Proprietary digital platform and customer app that offers pickup within a one-hour window of contact.
• Provision for hauling of hazardous materials and liquids, with the proviso that proper preparation has taken place prior to hauling.
• Unbeatable pricing to its customers, with special discounts for returning customers.

Promotions Strategy

The promotions strategy for Taking Out the Trash is as follows:

Word of Mouth/Referrals

The Taking Out the Trash owners have built up an extensive list of contacts over the years by providing exceptional service to their customers. Jake Ambrose, a co-owner, was formerly the operations manager of a junk removal service. He has secured contracts with several commercial companies for Taking Out the Trash. Jerry DuPaine, a co-owner, has been an owner of a storage pod business for fifteen years and has a list of customers that is equally long, each of whom is ready to contract with the new business.

Professional Associations and Networking

Jake and Jerry belong to many of the same organizations, including National Hauling & Removal Association. They also belong to the community service groups that include potential clients for the new business. As such, Jake and Jerry will begin networking and offering services to everyone connected in some fashion to the junk removal business.

Print Advertising

Print advertising in area periodicals and newspaper inserts is vital to secure new customers. Special pricing will be announced before the launch of the startup and will continue for three months. Advertising will include direct mail to Atlanta businesses, foreclosure companies, and other related corporate clients.

Website/SEO Marketing

Taking Out the Trash will fully utilize their corporate website to arrange appointments, secure schedules, and offer reservation service for junk removal. A customer app is offered to bring one-hour service to customer residences or corporate establishments that will be unique to the southern part of the U.S. The website will be well organized, informative, and list all theservices that Taking Out the Trash is able to provide. The website will also list their contact information and list their available services. Taking Out the Trash will embrace SEO marketing tactics so that anytime someone types in the Google or Bing search engine “junk removal company” or “waste removal near me,” Taking Out the Trash will be listed at the top of the search results.

The pricing of Taking Out the Trash will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for Taking Out the Trash. Operation Functions:

• Jake Ambrose will be the Co-owner and President of the company. He will oversee all staff and manage client relations.
• Jerry DuPaine will be the Co-owner and Vice President of the company. He will oversee all operations, including trucking services and drivers.
• Janie Patton will be the Administrative Manager who will manage the office administration, client files, and accounts payable.
• Tommy Hardine will be the Vehicle Maintenance Manager who will be responsible for all safety and servicing of vehicles.

Milestones:

Taking Out the Trash will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to lease office space
• 5/15/202X – Finalize personnel employment contracts for Taking Out the Trash
• 6/1/202X – Finalize contracts for new corporate clients of Taking Out the Trash
• 6/15/202X – Final beta testing of digital platform and customer app
• 6/22/202X – Begin moving into Taking Out the Trash office
• 7/1/202X – Taking Out the Trash opens for business

Taking Out the Trash will be owned and operated by Jake Ambrose and Jerry DuPaine. Jerry recruited Janie Patton to manage the administration of the office and personnel. He also recruited Tommy Hardine to be the Vehicle Maintenance Manager for the vehicles.

Jake Ambrose was formerly the operations manager of a junk removal service for ten years. He trained staff and ran the company operations for junk removal throughout the region. Jerry was formerly the owner of a storage pod business for fifteen years and has a thorough background in the transport, hauling and storage business, including junk removal.

Janie Patton was the office manager at Jerry’s former company. She will be the Administrative Manager who will oversee the office administration, client files, and accounts payable.

Also recruited by Jerry, Tommy Hardine was formerly the manager of truck repair in a regional prison, who then became a service manager in Jerry’s former business. Tommy will be the Vehicle Maintenance Manager who will be responsible for all safety and servicing of vehicles.

Financial Plan

Key revenue & costs.

The revenue drivers for Taking Out the Trash are the hauling and junk removal fees they will charge to the individual and corporate clients for their services.

The cost drivers will be the overhead costs required in order to staff Taking Out the Trash. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

Taking Out the Trash is seeking $200,000 in debt financing to launch its junk removal business. The funding will be dedicated towards securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Junk Removal Customers Per Month: 386
• Average Fees per Month: $79,900
• Office Lease per Year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, junk removal business plan faqs, what is a junk removal business plan.

A junk removal business plan is a plan to start and/or grow your junk removal business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

What are the Main Types of Junk Removal Businesses? 

There are a number of different kinds of junk removal businesses , some examples include: Municipal waste, Professional junk removal, Recycling plants, and Donation center.

How Do You Get Funding for Your Junk Removal Business Plan?

Junk Removal businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Junk Removal Business?

Starting a junk removal business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Junk Removal Business Plan - The first step in starting a business is to create a detailed junk removal business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your junk removal business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your junk removal business is in compliance with local laws.

3. Register Your Junk Removal Business - Once you have chosen a legal structure, the next step is to register your junk removal business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your junk removal business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Junk Removal Equipment & Supplies - In order to start your junk removal business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your junk removal business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Learn more about how to start a successful junk removal business:

• How to Start a Junk Removal Business

How to Start a Junk Removal Business in 11 Steps

• 1 month ago

Do you like physical work and driving around? Maybe starting a junk removal business is right for you.

Kyle Landwehr started Slam Dunkin Junk and The Junk Academy three years ago. Now he’s making $200K to $300K every month to haul away junk—and teach people how to start a junk removal business of their own.

What is a junk removal business?

Step 1. learn about the junk removal industry, step 2. create a junk removal business plan, step 3. build a junk removal brand, step 4. register your junk removal business, step 5. get a junk removal business license, step 6. get a business bank account and insurance, step 7. create a junk removal price sheet, step 8. get junk removal equipment, step 9. market your junk removal business, step 10. remove junk from home or business, step 11. expand your junk removal company, junk removal business faq, go start your own junk removal business.

A junk removal business focuses on removing unwanted furniture, appliances, and other items from residences and businesses. It also includes garbage collection, and you may hear it referred to as the waste removal industry.

It’s physical work, and it’s possible to injure yourself. Kyle shared:

I was making $30K to $40K monthly when I broke my ankle stepping off the truck. Breaking my foot is what caused me to start hiring employees and [scale] my business to what it is now.

He also explained that his injury got him into real estate. Listen to the interview below to find out how:

How to start a junk removal business

• Learn about the junk removal industry.
• Create a junk removal business plan.
• Build a junk removal brand.
• Register your junk removal business.
• Get a junk removal business license.
• Get a business bank account and insurance.
• Create a junk removal price sheet.
• Get junk removal equipment.
• Market your junk removal business.
• Remove junk.
• Expand your junk removal company.

You should understand the junk removal industry before you enter it. Some of the important questions you should ask before you start a junk removal company include:

• How much does it cost to start a junk removal business

How much do junk removal companies make?

Is the junk removal business profitable, how much does it cost to start a junk removal business.

The amount of money you need to start a junk removal business will depend on the business’s location (due to cost of living) and the materials you already own.

The items you’ll need to start a junk removal business include:

• A truck: $1,000 to $90,000 • Limited liability company (LLC): Under $1,000 • Business license: Under $1,000 • Business insurance: $1,000 to $10,000 • Dolly: $200 • Trash bags: $25 • Reciprocating saw: $300 • Safety equipment: $100 • Website: $1,200 per year

That means you can start a junk removal business for as little as $4,325 or as much as $102,325. Kyle told us:

If you have a truck, expect to spend around $6,000 starting your business. If you want to know how to start a junk removal business with no money, promote it on Facebook groups during the week and rent a U-Haul on the weekend. That will cost you $40 per day, plus $1.30 per mile.

According to IBISWorld , there are 8,607 companies in the junk removal industry. They make a combined $73.7B, or $8.6M each. Kyle told us he makes $200K to $300K a month as a junk removal company owner.

Yes. The gross profit margin is 32.74%, while the junk removal profit margins come out to 7.29% after after taxes, bonuses, and all other costs. This is based on data from 62 publicly held companies.

Kyle told us:

The gross profit margin the first year was around 50% margin, [the] following year 30% to 35% margin, and the third year I hired an operations manager, which took the margin down to 20%, but now I don’t have to be involved in the business.

How much is a junk removal owner’s salary?

The salary for working as an operations manager is around $75,000 annually for waste removal companies. This is nearly $18,000 less than other operations managers. When you run an S-Corp , you will need to use that as your wages and any profit you can pay as dividends.

For your company to be a profitable business, make sure to write a business plan.

You’ll want to include:

• Your mission and vision
• Ways you’ll make money
• Your target market
• How you will market the business

Check out our interview with Mike Andes to learn how to write a business plan. You can refer to our business plan writing guide as well.

My smartest business move was building my plan.

A distinctive and memorable brand for your service-based business sets you apart from competitors and establishes a reputation for your enterprise. Your brand relies on two main elements: your business name and logo.

First, select a junk removal business name that draws in customers and conveys a strong message about your services. Make sure it’s not already taken in your service area and online.

Next, craft a logo for your junk removal service. You have the option to hire a designer for assistance, or you can create one yourself using an online logo creator such as Canva .

You’ll want to register your business with your state. Kyle and most other business owners recommend structuring your business as an LLC, but there are plenty of other structures. Learn more about the business registration requirements and process in our business registration guide .

The cost of registering on the Secretary of State website varies from state to state. To give you an idea of the cost, Kyle said he paid $300 for his LLC in St. Louis.

You’ll also need an Employer Identification Number from the IRS .

A junk removal business may need local or county licenses. Check with your local government’s business office to see what is required in your state.

What license do I need to start a junk removal business ?

You may need special licenses and permits for waste removal if you collect hazardous waste or do construction tasks like demolition (which Kyle offers in addition to junk removal services). He also told us:

You could also offer dumpsters for people [which requires licenses].

Your local business office will be able to help you establish what business licenses you need.

A junk removal business needs a small business bank account before it offers junk removal services. The business bank account should have low fees and high interest rates on savings accounts. Keeping your finances separate will be helpful when tax season arrives.

You’ll also need junk removal business insurance. A junk removal company will need commercial auto insurance and general liability insurance at a minimum, but you might want more extensive business insurance, like a business owner’s policy (BOP). Learn more in our business insurance guide .

A BOP covers general liability, property damage, and unexpected shutdowns, plus has riders for other policies. We suggest contacting Simply Business to get quotes from multiple insurance companies.

For added financial management, consider enlisting the services of a bookkeeper or accountant. They can oversee business income and expenditures, handle bills and payroll, generate and dispatch invoices, and maintain the financial health of your business.

Getting paid for removing junk is nice, but junk removal business owners need to make a profit. That means you need to cover your labor, materials, and overhead costs. To achieve this, it’s essential to develop a pricing strategy for your waste removal business:

• Decide how to charge customers: You might want to have standardized prices for time, weight, and volume (like by the cubic foot). Creating all three will help you establish which way makes the most sense for each job.
• Research competition pricing: You don’t want your services to be overpriced or underpriced because both scenarios will hurt your earning potential
• Include overhead: Add all the expenses that are not directly applied to a job, then divide them by the number of billable hours (160 per person, per month). Add this rate to every hour of labor.
• Additional time and materials: You’ll need to cover time driving, disposal fees, taxes, and your profit margin. In general, junk removal services should assume each job will be at least two hours between driving, pickup, and disposal.

Once you’ve established your junk removal business pricing, you’ll want to create a junk removal price sheet .

Junk removal businesses need a variety of tools, equipment, and software to run successfully.

We’ve got you covered! Get all the supplies you need as a junk removal business owner from the UpFlip Junk Removal Store , or check out the list of tools you need for junk removal jobs below.

What do I need to start a junk removal business?

Junk removal businesses need the following:

• Pickup truck or box truck: You’ll need a vehicle to transport junk. This will be the largest of the business expenses, but Kyle says when you’re first getting started you can just rent a U-Haul.
• 3-in-1 Dolly: A successful junk removal business will need a dolly that converts to a cart. Kyle told us they have a 1,000-pound capacity dolly.
• Safety equipment: Depending on what you do in your junk removal business, you’ll need work gloves, work boots, safety goggles, and hard hats.
• Trash bags and bins: Load small things into these to simplify the process once you get to the dump or recycling yard.
• Reciprocating saw: Being able to saw items into smaller pieces comes in handy if you are recycling air conditioners because wires, copper, steel, compressors, and motors all have different values. Don’t forget blades and extension cords.

Author’s Note: Hauling away a ton (2,000 pounds) of air conditioners can make you around $2,000, based on my time working in HVAC.

You might want other tools including:

• 16-ounce claw hammer
• Construction broom
• Forearm forklift
• Large trash bins
• Laundry cart
• Long cut snips
• Moving blankets
• Orange vehicle flag
• Packing tape
• Screwdriver set
• Sledgehammer
• Utility cart

Next, find out how to market your junk disposal company.

When you start a junk removal business, you’ll need to build a name for yourself. To market yourself, you should:

• Post on social media.
• Find junk removal leads.
• Use junk removal software.
• Quote prices.

Post on social media

Social media is a powerhouse for all forms of service businesses. Kyle told us:

I went all in on social media, specifically Facebook. You used to have to go to businesses to network, but I can get way more leads from social.

Junk removal businesses should:

• Set up a Facebook business profile.
• Get their friends and family to like the Facebook page and share it.
• Post pictures of work they do from each junk removal job.
• Join local Facebook groups and network with potential customers.
• Create automated FAQs on Facebook Messenger.
• Keep posting regularly.

Kyle also explained that Instagram is better for marketing his junk removal coaching business.

Find junk removal leads

You’ll need to find customers who need junk disposal services. There are a lot of ways to help people find you when they need help. Kyle discussed where you can find potential customers:

Social media, Google (both search and local ads), flyers, door knocking, and Yelp are all good places to find leads.

Use junk removal business software

Business software is necessary to help potential customers find your business and manage all the jobs.

The main requirements you are looking for in software include a website, email and text automation, quotes, invoicing, and a customer relationship management system.

Many junk removal businesses use either Jobber or Housecall Pro , which offer all of the services above. Based on testing both for blogs, I like Housecall Pro’s functionality better.

Quote prices

Once you have gotten leads, Kyle said that you’ll want to go to the person’s residence or business location so you can see the extent of the junk haul-off. There, you’ll examine what you need to remove and provide an estimate. If you’re in the junk removal truck, you might even be able to haul the junk immediately.

You should also provide a business card so they can contact you if they don’t want the junk removed immediately.

In addition to offering home and office junk removal, Kyle suggested the following services:

You can also offer house flipping, dumpster rentals, and demolition.

When it’s time to collect the junk, you’ll go to the customer’s location and put it in the truck or scrap trailer. Removal time will depend on the number of items, ease of getting to them, and other tasks you need to do.

When you are done, you’ll want to get paid for junk removal. You might also want to provide junk removal business cards because the waste removal industry doesn’t get much repeat business, but business cards could help you get referrals.

Finally, you’ll take the junk to the dump, a recycling yard, or somewhere that you can repair it. When there are things you can recycle or repair, you can commonly make some extra money when you have slow periods.

When you start a junk removal company, you’ll want to find ways to expand it. Kyle told us:

Focus on perfecting one thing, but be open to expanding to other services. In my case, it led to house flipping and coaching.

You could recycle or repair appliances to make extra money, too. As your business grows, you could also franchise your business to help other people get started quicker.

Find employees

Kyle explained:

Lots of people thought I was all talk, but once I started a lot of my friends wanted to become junk removers.

If you don’t want to work with friends, learn about hiring employees from a recruiter.

Systemize everything

Establishing and documenting systems and policies for your business can make it run smoother, even in your absence.

How much is junk removal for customers?

Junk removal pros normally charge a minimum pickup fee of $50 to $150, and larger jobs may cost a minimum of $100 to $450. If customers rent dumpsters, those may cost $30 to $285 per day.

Can I buy a junk removal franchise?

Yes, you can buy a junk removal franchise. Some of the common junk removal franchises are:

• 1-800-Got-Junk?: The most famous commercial junk removal company hauls away all kinds of junk.
• College HUNKS Hauling Junk & Moving: Starting a junk removal business with College HUNKS means you’ll provide moving and junk removal services.
• Bin There Dump That: This hauling junk business brings dumpsters to people’s homes, then hauls it afterward. Learn more .
• Junk Removal Authority (JRA): The JRA offers the equivalent of franchise support without royalty fees.
• JDog Junk Removal & Hauling: JDog focuses on helping veterans start waste removal companies. They also donate or recycle over 60% of junk.
• The Junkluggers: Junkluggers franchises offer same-day and next-day junk and trash removal.

Learn about other junk collector franchises .

Whether you want to start a junk removal side hustle, buy a franchise, or start your own business, we’ve covered every aspect of entering the junk removal business as an entrepreneur.

It’s up to you to get started. What kind of junk removal will you do?

Brandon Boushy

Brandon Boushy lives to improve people’s lives by helping them become successful entrepreneurs. His journey started nearly 30 years ago. He consistently excelled at everything he did, but preferred to make the rules rather than follow him. His exploration of self and knowledge has helped him to get an engineering degree, MBA, and countless certifications. When freelancing and rideshare came onto the scene, he recognized the opportunity to play by his own rules. Since 2017, he has helped businesses across all industries achieve more with his research, writing, and marketing strategies. Since 2021, he has been the Lead Writer for UpFlip where he has published over 170 articles on small business success.

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Junk Removal Business Plan Template

Written by Dave Lavinsky

Junk Removal Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their junk removal companies.

If you’re unfamiliar with creating a junk removal business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a junk removal business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your junk removal business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a junk removal business or grow your existing junk removal company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your junk removal business to improve your chances of success. Your junk removal business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Junk Removal Businesses

With regards to funding, the main sources of funding for a junk removal business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for junk removal companies.

Finish Your Business Plan Today!

How to write a business plan for a junk removal business.

If you want to start a junk removal business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your junk removal business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of junk removal business you are running and the status. For example, are you a startup, do you have a junk removal business that you would like to grow, or are you operating a chain of junk removal businesses?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the junk removal industry.
• Discuss the type of junk removal business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of junk removal business you are operating.

For example, you might specialize in one of the following types of junk removal businesses:

• Municipal waste : this type of junk removal offers a regularly scheduled waste disposal service to all the communities. These services collect daily waste and dispose of it and target waste materials such as food waste, liquid waste, litter, etc.
• Professional junk removal: this type of junk removal is a private entity that treats a variety of junk like litter, furniture, commercial waste, office waste, metal, automobile waste and trash from construction sites or home remodels.
• Recycling plants: this type of junk removal is dedicated to collecting all the junk and waste products that can be recycled and upcycled for future use.
• Donation center: Donation centers are technically not a junk removal service, but does work with the items people may get rid of and consider “junk”. They accept old and gently used items and then donate them to people in need.

In addition to explaining the type of junk removal business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of clients served, the number of junk removal jobs with positive outcomes, reaching X number of clients served, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the junk removal industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the junk removal industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your junk removal business plan:

• How big is the junk removal industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your junk removal business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your junk removal business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and businesses.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of junk removal business you operate. Clearly, individuals would respond to different marketing promotions than businesses, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other junk removal businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes thrift stores, the landfill, or estate sales. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of junk removal business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide services other than junk removal (i.e. cleaning)?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a junk removal business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of junk removal company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide cleaning services, recycling, donations, or remodels?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your junk removal company. Document where your company is situated and mention how the site will impact your success. For example, is your junk removal business located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your junk removal marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your junk removal business, including answering calls, scheduling junk removal jobs, billing clients and cleaning of the truck(s), etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your junk removal business to a new city.  

Management Team

To demonstrate your junk removal business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing junk removal businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a junk hauling business or successfully running a small waste disposal company.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you complete 3 junk removal projects per day, and/or offer cleaning services? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your junk removal business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a junk hauling business:

• Cost of junk removal equipment and dumpster trucks
• Payroll or salaries paid to staff
• Business insurance
• Other junk removal business startup costs (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of dumpster trucks you will have in your fleet.  

Writing a business plan for your junk removal business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert and know everything about starting a junk removal business. You will understand the junk removal industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful junk removal business.  

Junk Removal Business Plan Template FAQs

What is the easiest way to complete my junk removal business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your junk removal business plan.

How Do You Start a Junk Removal Business?

Starting a junk removal business is easy with these 14 steps:

• Choose the Name for Your Junk Removal Business
• Create Your Junk Removal Business Plan
• Choose the Legal Structure for Your Junk Removal Business
• Secure Startup Funding for Junk Removal Business (If Needed)
• Secure a Location for Your Business
• Register Your Junk Removal Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Junk Removal Business
• Buy or Lease the Right Junk Removal Business Equipment
• Develop Your Junk Removal Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Junk Removal Business
• Open for Business

Learn more about   how to start your own junk removal business .

Don’t you wish there was a faster, easier way to finish your Junk Removal business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan advisors can give you a winning business plan.

Other Helpful Business Plan Articles & Templates

• How to Start a Junk Removal Business

Whenever unwanted belongings cannot be thrown out in the normal trash, a junk removal service can help. People and businesses need help hauling away broken furniture, clearing out an attic full of trash, or even emptying an estate or foreclosure. The junk removal industry is competitive but growing, and you can start from scratch or buy into a franchise. If you’re up for the challenge, owning a junk removal business can be a profitable and rewarding adventure that involves not only hauling heavy garbage but also scouting local donation and recycling solutions.

Learn how to start your own Junk Removal Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a junk removal business by following these 10 steps:

• Plan your Junk Removal Business
• Form your Junk Removal Business into a Legal Entity
• Register your Junk Removal Business for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Junk Removal Business
• Get the Necessary Permits & Licenses for your Junk Removal Business
• Get Junk Removal Business Insurance
• Define your Junk Removal Business Brand
• Create your Junk Removal Business Website
• Set up your Business Phone System

We have put together this simple guide to starting your junk removal business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Junk Removal Business Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your junk removal business?

Business name generator, what are the costs involved in opening a junk removal business.

At a minimum, you can start up a junk removal business with these resources:

• A truck or large van
• Basic tools and cleaning supplies
• Location for sorting

The first vehicle represents the biggest hurdle. You can use your own truck, a new or used vehicle, or a full commercial tractor-trailer. Other options include vehicle decals and logowear to brand your business and project professionalism to customers.

What are the ongoing expenses for a junk removal business?

Who is the target market.

Individuals and businesses are both frequent junk removal customers. Real estate and storage facilities are two industries with a particular need. Residential customers often include empty nesters and retirees looking to declutter.

How does a junk removal business make money?

Pricing typically centers around the volume of garbage removed, measured in cubic feet inside the truck. Other fees might apply to especially heavy items, certain dangerous materials, cleanup, and rush appointments.

For a single junk removal visit, homeowners most often spend between $139 to $373, according to HomeAdvisor. This often covers a load of junk consisting of a few pieces of furniture or appliances, or a small room full of garbage. With pricing based on junk volume, it can be more or less depending on the customer’s needs.

Junk removal business owners need accurate knowledge and data of all overhead, including:

• Employee wages
• Insurance (injury, liability, business auto, and more)
• Landfill fees and other disposal costs
• Fuel costs and auto payments
• Office, marketing, and other expenses

In some cases, the junk removal business can benefit financially during the disposal process, such as by selling scrap metal or receiving tax deductions for donations.

The largest national franchisors offer “no hidden fees” pricing. The crew gives an estimate upon arriving at the site, and the customer decides whether to proceed.

More information about pricing models for junk removal businesses:

• HomeAdvisor.com - How Much Does Junk & Trash Removal Service Cost?
• JunkTrashRemoval.com - Junk Removal Pricing & Cost | How Much to Charge?

How much profit can a junk removal business make?

Each vehicle can average about one typical residential job per hour. Some jobs will take a long time, but those jobs will also bring in more revenue. Many junk removal businesses have a minimum charge of around $125 to make sure that expenses are covered for one hour of work. The size and density of your service area greatly affect driving time, which in turn affects your efficiency.

With enough demand and fast workers, a junk truck can bring in $500 to $1,500 per day, or about $500 for each truckload of junk. Many businesses start with one truck. Investing in a larger fleet greatly affects profitability.

How can you make your business more profitable?

Junk removal businesses can scale easily thanks to branding and fleet size increases. Add trucks with the company logo and employees to drive them, and the owner can scale as much as the market demands.

Completing more jobs in less time is the best and simplest way to maximize profits for your junk removal business. Strategizing your drivers’ routes, training employees to work quickly, and growing the fleet all help with booking more customers each day.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your junk removal business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a junk removal business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Service Agreement

Junk removal businesses should consider requiring clients to sign a service agreement before starting a new project. This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, service level expectations, and intellectual property ownership. Here is an example service agreement.

Recommended: Rocket Lawyer makes it easy to create a professional service agreement for your junk removal business when you sign up for their premium membership. For $39.95 per month, members receive access to hundreds of legal agreements and on call attorneys to get complimentary legal advice.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Junk Removal Business needs and how much it will cost you by reading our guide Business Insurance for Junk Removal Business.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a junk removal business

Customers need to know your name and trust you; therfore, quality branding and referrals are both key to marketing a junk removal business. Funny names and bright colors are popular and effective for direct advertising campaigns. A strong online presence also helps capture more local customers.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

Problem solvers, people persons, and those who like working with their hands can succeed and find joy in running a junk removal business. Running the show involves managing plenty of people and resources while sticking to a tight schedule.

Junk removal businesses operate by appointment, so taking days off can be up to the owner. Night and weekend appointments are not necessary but are often in demand and profitable.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a junk removal business?

Scheduling pickups and finding the right drop-off points are the two major challenges for a junk removal business owner. Customers don’t want to be kept waiting for appointments, so punctuality is crucial. People also expect you to dispose of everything in relatively eco-friendly ways. The actual junk removal simply requires appropriate strength and a fleet of trucks.

What are some skills and experiences that will help you build a successful junk removal business?

Successful junk removal business owners typically exemplify these traits:

• Knowledge of business planning and management, including the ability to assess overhead costs and weigh liability issues while determining a realistic pricing model that can compete in the local market.
• The communication skills to work with a team of junk haulers who will be doing the bulk of the labor, which is sometimes extremely strenuous; the owner-manager needs to train and motivate these employees to provide excellent service and always be reliable.
• Customer service skills are always necessary, as a junk removal business needs to build a strong reputation in the community, earn positive online reviews, and stand out from the crowd.

What is the growth potential for a junk removal business?

Junk removal businesses can easily scale up with more trucks and employees. Franchise owners are generally limited to service areas, so you may need to purchase additional areas. On that note, you could potentially franchise your own junk removal startup in the long run.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

Useful Links

Industry opportunities.

• Junk-King.com - Top Franchise Oppportunity
• JunkLuggersFranchise.com - An Eco-Friendly Franchise Opportunity
• 1800gotjunk.com - Industry Opportunity
• JDogFranchises.com - Industry Trends and Market Conditions
• National Waste & Recycling Association

Real World Examples

• Junk-King.com
• 1800GotJunk.com
• CollegeHunksHaulingJunk.com
• JunkLuggers.com
• JDogJunkRemoval.com

Further Reading

• The Franchise Business of Junk
• How Much Does Junk & Trash Removal Cost?
• Junk Removal Pricing & Cost | How Much to Charge?

Entrepreneur Interviews

Read Interview

Have a Question? Leave a Comment!

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How to Start a Junk Removal Business in (2024) in 7 Easy Steps

Free Junk Removal Business Plan Template [Updated 2024] Template

10 Min Read

The junk removal industry is thriving with Americans discarding up to 1,100 kilograms of waste yearly. This rapid growth, averaging nearly 5% annually, signals a lucrative opportunity for new businesses.

In 2021, junk removal companies averaged revenues of $8.3 million, largely because most people find disposing of heavy items challenging.

If you’re thinking about how to start a junk removal business then you’re at the right place. This guide will help you understand the necessary skills and market demands that can position you for success in this expanding sector. So, without further ado let’s get started!

Factors to Consider Before You Get into the Market

Starting a junk removal business is an exciting venture, but there are essential steps to consider first.

Research Your Target Market

The type of junk removal job you offer—targeting homeowners or commercial businesses—will shape your market. Investigate what competitors charge and the specific needs of your potential customers. This research helps you set competitive rates and understand operational costs.

Understand Regulations

As a junk removal business owner, you should familiarize yourself with local, state, and federal junk disposal and recycling laws. Ignoring these can result in hefty fines. Also, remember that handling hazardous waste often requires special licenses.

Know Your Competition

Beyond market research, delve deeper into the local junk removal businesses. Study their business models, pricing, and customer base. Understanding what makes them successful is crucial. If needed, hire a competitive analyst for more nuanced insights.

Gain Hands-on Experience

Consider working in the industry first. This experience offers insights into the business, from operational challenges to discovering potential value in discarded items. It’s also a chance to understand the dynamics of working with different customer bases, like households versus companies.

Find Hidden Opportunities

While working, you’ll learn to spot items that can be recycled for cash or have resale value. This knowledge can be financially beneficial and help with tax considerations.

Identify Your Strengths and Networking Opportunities

Working in this field shows you what you’re good at in the business, helps you meet others in the industry, and introduces you to potential customers.

Starting your own business requires knowing the market, following the rules, studying competitors, getting experience, and spotting chances. With the correct method, you can make valuable things out of trash.

Now that you’ve learned about the important factors involved in this business, let’s explore how you can start a junk removal business in seven easy steps.

7 Essential Steps to Starting a Junk Removal Business

• Prepare a business plan
• Junk removal business registration
• Get your finances in order
• Ge business licenses, permits, and Insurance
• Get the necessary equipment
• Determine your pricing strategy
• Market your business to bring in clients

1. Prepare a Business Plan

Starting a business is exciting, but securing funding can be tricky. That’s where a strong business plan comes in. It’s like a detailed roadmap, guiding you and potential investors through your vision and financial projections.

To help you get ready like a pro, you can download your junk removal plan here. This plan covers it all: your big ideas for the business, how you’ll get more customers, and, super important, how you’ll manage the money.

Here’s what a business plan includes:

• Executive Summary
• Company Overview
• Product and Services
• Market Analysis
• Competitive Analysis
• Sales and Marketing
• Management Team
• Operations Plan
• Financial Plan

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2. Junk Removal Business Registration

First, you need to select a unique name for your junk removal business. Next, ensure you have the green light to operate that name in your area.

Regulations vary across locations, so research the specific permits and licenses required. For example, to open your junk business in Denver you require a waste hauler license .

Here’s what you need to do next:

Decide on  Your Business Structure

You need to decide the legal structure for your junk removal business before registering it. This decision will influence your tax payments, liability in lawsuits, paperwork, and various other regulations. The common types of structures include:

• Sole proprietorship
• General partnership
• Ownership with limited personal liability (Limited liability company, LLC)
• Limited partnership
• Corporation

Forbes recommends using a Limited Liability Company (LLC) for your junk removal business.

Find a Registered Agent

Every LLC and corporation needs a registered agent. This person or company will take care of all the legal stuff and official letters for your business. They have to be in the same state as your business and need a real address for getting papers.

Register Your Business and Get an EIN

You’ll need to register your business with your state. How you do this can vary, so it’s a good idea to talk to your state’s Secretary’s office. You must also get an Employer Identification Number (EIN) from the IRS . Think of it like a social security number for your business.

Register for Taxes

And don’t forget taxes! You need to be ready for both state and federal taxes. This means setting up sales tax, income tax, and if you have employees, taxes for them too. Make sure you’re all set in this area.

3. Get Your Finances in Order

After completing all the necessary paperwork, your focus should be on managing your finances. It’s crucial to determine the amount of money you will need to start and run your business smoothly.

Typically, the initial junk removal startup costs range from $7,500 to $28,000 , and most of it goes into purchasing a truck. The cost of the truck varies depending on its size and whether it’s new or used.

To save money, you can start with a smaller or older truck and upgrade to a larger one as your business grows.

Creating a detailed budget is equally important as understanding the initial investment.

When planning a budget, consider the following expenses:

• Wages to be paid
•  Insurance expenses
• Cost of tools and equipment
•  Required licenses

Overestimating your income and spending on unnecessary things can quickly make your small business a financial mess.

After creating a budget, the next step is to figure out where to get the necessary funds. There are a few primary methods to consider:

• Use your savings: A classic self-funded approach, ideal for smaller needs.
• Bank loan: Reliable, but requires a convincing business plan.
• Credit cards: Quick access, but high interest rates can bite.
• Angel investor: Rare, but potentially a big boost.

For most, savings and bank loans are the most common paths. Choose the one that best fits your financial needs and repayment ability.

4. Get Business Licence, Permits, and Insurance

Starting a junk removal business involves understanding many legal rules, which might seem complex. To make things easier, you can look up the U.S. Small Business Administration (SBA) website . It has all the necessary list of the permits and licenses you may need for your business and others too. Consider it a guide to begin with, but remember you might also need to follow extra rules in your local area.

Why do you need junk removal business Insurance?

Imagine this: you’re on your way to a job, and there’s a car accident. That’s a real headache, right? Not just the damage but the lost time and money too.

Business insurance is your safety net for these kinds of surprises. If you’re in the junk removal game, focus on these three:

• General Liability Insurance: Quickly covers work-related accidents or damage.
• Commercial Auto Insurance: Handles costs from any work vehicle accidents.
• Workers’ Compensation Insurance: Pays for employee injuries, covering medical bills and lost wages.

These insurances act fast to protect your business from unexpected costs and keep operations smooth.

5. Get Tools, Equipment, and Vehicles

Once the legal hurdles are cleared, building your arsenal of tools and equipment becomes your next priority. This is the bedrock of your junk removal operations.

Garbage bins, shovels, bags, rakes, and tarps are your frontline equipment. They help efficiently collect and manage discarded items.

Transportation

A reliable pickup truck is your workhorse. It facilitates hauling junk from client sites to disposal facilities. Choose a size based on your business scale and anticipated load volumes.

Safety First

Remember, some materials can pose risks. Invest in proper safety equipment like gloves and masks to protect your crew from potential hazards.

Scaling Your Operation

As your junk removal business grows, adjust your equipment and workforce accordingly. Bigger jobs might require additional bins, a larger truck, or more team members.

6. Determine Your Pricing Strategy

It’s awesome to earn money from junk removal jobs but to make a profit; you must ensure your prices cover your labor, materials, and other costs. Here’s how you can create a pricing strategy for your waste removal business:

Choose How You’ll Charge

You can charge based on:

• How long does it take to clean up their junk?
• How much does their junk weigh?
• How much room does it take in your truck (measured in cubic yards)?

It’s smart to have prices for all three options, and then pick the best one for each job. Here’s how to make sure you’re charging fairly:

Look at What Other Successful Junk Removal Business Owners Are Charging

Check out what other junk removal companies charge in your area. Don’t just copy them, but use their prices as a ballpark for what customers are willing to pay.

Think about your overhead costs

Fuel, labor, and truck wear and tear can add up to your costs. Make sure your prices cover these.

Include Other Costs

Don’t forget to add in the cost of materials, the time it takes to travel for waste disposal, and taxes, and aim for at least a 15% net profit margin on top of all this.

7. Market Your Business to Bring in Clients

Your junk removal services are all set to go—now it’s time to get your first customer. Try these marketing ideas for junk removal to draw in customers and start getting jobs:

Building a Website

84% of customers think a business looks more trustworthy if it has a website than just using social media. You can easily create one operating platform like Wix or WordPress.

Start with a simple template and tell the story of your company. People love hearing about how you started; adding high-quality pictures will make your site more engaging. Make sure your contact info is easy to spot!

Advertising

This part is super important. You’ve got to be where your competitors are, but try to do it better. Top spots for advertising your junk removal business include Google Ads, Yelp, Home Advisor, Craigslist, Facebook, Instagram, yard signs, and graphics on your trucks.

Also, hand out professional business cards whenever you can – you never know when you might meet a potential customer. Get your business listed in local directories and encourage your customers to leave reviews on sites like Yelp and Angie’s List.

Sales Strategy

Think about what makes your service unique. You can guarantee to be there within 24 hours after someone calls, or offer discounts to returning customers. Find something that sets you apart and make sure people know about it. This will help you stand out in the junk removal business.

Next Steps to Starting a Junk Removal Business

Junk removal companies will always be around, but making them grow isn’t always easy. Success is possible, but you need a good junk removal business plan, hard work, and the ability to adjust to new trends and changes.

Remember to stick to your core values, keep your eyes on the market, and implement the tips we’ve shared throughout this article. By doing so, you’ll increase your chances of building a successful and lasting junk removal business.

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Frequently Asked Questions

How much money can you make in a day doing junk removal jobs.

Most Loaders earn between $70 to $570 for each job. How many jobs you get can vary. It depends on the size of the trash, what kind of truck you use, and how big the job is.

What equipment and vehicles are essential for starting a junk removal business?

You’ll need the right tools for a smooth and effective junk-hauling business. To start, you should have:

• Trucks or trailers for moving waste
• Hand trucks and dollies
• Ramps for lifting heavy items
• Safety gloves and gear
• Shovels and brooms for cleaning sites
• Bins, containers, or tarps for sorting and organizing
• Straps and bungee cords for safe transport
• Special tools for certain types of waste

How much capital do I need to start a junk removal business?

Starting a junk removal company can cost between $7,500 to $28,000 . The most significant cost is usually the down payment on a vehicle, which varies based on the vehicle’s size and age.

Can I operate a junk removal business from home?

Absolutely! You can manage it right from your home. You’ll need a truck, some tools, and a bit of marketing money. No fancy office or warehouse needed.

How to calculate debris removal costs?

For yard waste, it’s about $18 for every cubic yard. Household junk? That’s typically $22 per cubic yard. But construction waste is the priciest, averaging $95 per cubic yard, as it’s usually bulkier and tougher to handle.

About the Author

Shyam Dua is a seasoned tax professional with 40+ years of experience & a mentor at SCORE. He stands out due to his exceptional business planning skills. With a keen eye for detail and a strong financial acumen, Shyam crafts compelling business plans that pave the way to success. A CPA with a philanthropic heart, Shyam's strategic expertise, and dedication make him an invaluable asset in shaping thriving business ventures. Read more

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Junk Removal Business Plan Template & Guidebook

Are you looking to start a successful junk removal business? Having a comprehensive business plan is essential to getting your venture off the ground. With our #1 Junk Removal Business Plan Template & Guidebook, we make it easier than ever to craft a plan that guarantees success. This easy-to-follow guide is designed for entrepreneurs of all levels, so you can get your business up and running with ease.

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• How to Start a Profitable Junk Removal Business [11 Steps]
• 10+ Best & Profitable Junk Removal Business Ideas [2023]
• 25 Catchy Junk Removal Business Names:
• List of the Best Marketing Ideas For Your Junk Removal Business:

How to Write a Junk Removal Business Plan in 7 Steps:

1. describe the purpose of your junk removal business..

The first step to writing your business plan is to describe the purpose of your junk removal business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a junk removal business:

Our mission at [Junk Removal Company] is to provide premier junk removal services to our customers, while simultaneously creating a clean and safe environment for our local communities. We strive to contribute positively to the local economy by providing eco-friendly solutions for affordable junk disposal, as well as cultivating relationships with our customers to ensure excellent customer service and satisfaction.

2. Products & Services Offered by Your Junk Removal Business.

The next step is to outline your products and services for your junk removal business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your junk removal business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your junk removal business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your junk removal business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a junk removal business?

• Trucks for picking up and transporting junk
• Protective clothing, safety gear and gloves
• Various tools such as shovels, hammers, dollies, etc.
• Adequate insurance coverage
• Licenses and permits from local authorities

5. Management & Organization of Your Junk Removal Business.

The second part of your junk removal business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your junk removal business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Junk Removal Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a junk removal business varies based on many different variables, but below are a few different types of startup costs for a junk removal business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your junk removal business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your junk removal business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your junk removal business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Junk Removal Business Plans:

Why do you need a business plan for a junk removal business.

A business plan is an essential tool for any business, including a junk removal business. It helps to identify goals and objectives, create strategies and tactics for achieving those goals, understand the market you are operating in, analyze potential competition, create financial projections for the business, and secure funding if needed. It also serves as a roadmap for setting up the business, monitoring progress, and making necessary adjustments to ensure success.

Who should you ask for help with your junk removal business plan?

You may want to consult with a business consultant, small business attorney, accountant, or other professionals who specialize in the formation of a business. Additionally, your local Chamber of Commerce or Small Business Administration (SBA) office can be a good source of advice and resources to help you create your junk removal business plan.

Can you write a junk removal business plan yourself?

Yes, you can write a junk removal business plan yourself. However, depending on the complexity of your business, it may be beneficial to seek the advice of a professional like an accountant or business consultant to help create a comprehensive business plan. Additionally, there are many resources online that provide information and templates to help guide you through the process of creating a sound business plan.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.