How To Start a Junk Removal Business

by Team Tradify, May 31, 2023

As the saying goes, one person’s trash is another person’s treasure. Or, in this case, a business venture. The junk removal industry is growing, and there’s plenty of room for new entrepreneurs to lighten the load. If you’re up for the challenge, starting a rubbish removal company can be profitable and rewarding — but you need to tick off a few crucial steps first.

Need a hand coming up with a name for your junk removal business? Try our Junk Removal Business Name Generator!

Short on time? Skip ahead!

1. Knock out a solid business plan
2. Training and qualifications for junk removalists
3. How much should you charge for junk removal services?
4. Let's talk money – the cost of starting a junk removal business
5. Build a free-flowing rubbish removal business

1. Knock out a solid business plan

First, ask yourself why you want to start a junk removal company. Your ‘why’ will help you make the best decisions when life as a business owner throws you curveballs.

Next, identify your target market and the services you can offer. Research your local competitors to see what they’re doing and where you can provide something different based on your experience, skills and resources.

Your business plan should cover the following:

Financial projections
Growth opportunities
Marketing strategies
Financing
Short and long-term goals

2. Training and qualifications for junk removalists

You don’t need specific training or formal qualifications to work as a junk removalist. However, workplace training or higher education in related areas, like health and safety, will demonstrate that you’re serious about providing the best service. The job can also be physically demanding, so you’ll want a good fitness level.

Depending on local and national regulations, you may also need special licenses to drive heavy machinery and recycle or dispose of rubbish. It’s best to contact your local government and double-check what you need.

Here are some useful links:

🇺🇸 USA - Environmental Protection Agency
🇬🇧 UK - Environment Agency
🇦🇺 AU - Environment Protection Authority (EPA)
🇳🇿 NZ - Ministry for the Environment

3. How much should you charge for your junk removal service?

Putting a price on your work can trip up some trade business owners. While it might seem like a good idea to go cheap and cheerful, you won't make any profit if you aren’t at least covering your expenses and outgoing costs. Calculating your charge-out rate will ensure you charge the right amount to pay the bills and increase your profit margin.

4. Let’s talk money – the cost of starting a junk removal business

Running a trade business isn’t all about the money. The most common goals for tradespeople are to turn a profit, operate efficiently and have a good work-life balance. However, there are specific financial and admin tasks you must get right to build and grow a successful rubbish removal company.

Funding your business

How much money do you need to get your junk removal business off the ground? Unless you have some extra cash saved, you’ll likely want to speak with a lender. When you do, you’ll need to fill out these documents:

A break-even analysis — be sure your business can at least break even before it makes a profit.
A cash-flow forecast — how much money will move in and out of your business, and when?
A sales forecast — estimate future revenue by predicting weekly, monthly or yearly sales. This isn’t easy when you’re starting, but there are ways to determine whether your business idea is financially viable.

You may also want to research whether you’re eligible for local government funding. Here are some links to get you started:

🇺🇸 USA - SBA provides limited grant funding to eligible businesses.
🇬🇧 UK - Start-Up Loans of £500 to £25,000 are available to start or grow your business.
🇦🇺 AU - Check if you’re eligible for a range of grants that vary between states.
🇳🇿 NZ - Government grants, advice and mentoring are available, depending on your business.

Insurance

In a new business, every penny counts. Getting the right insurance will mean you’re covered, even if the worst happens.

You’ll want your work vehicle and equipment covered should they get stolen or damaged.
If you have staff, you might consider worker’s compensation.
As the boss, you’ll want general business owners’ and income protection insurance.

What policies you take out will depend on the structure of your business and the type of work you do. Here's our article on business insurance for tradespeople.

Register your business

If you’re planning on hiring staff or operating under a business name (now or in the future), it’s essential to get your business registered through the proper channels:

Invest in junk removal equipment

Working as a rubbish removalist primarily means transporting junk from A to B. To do that, you’ll need a truck. It doesn’t need to be fancy or brand-new, but it does need to be large and durable. You’ll also require clean-up supplies like a shovel, industrial broom, dust-pan, garbage bags, and protective gear.

Remember, you can claim back tax on most of your business expenses, particularly assets like your work vehicle and equipment.

🇺🇸 USA - Business tax write-offs
🇬🇧 UK - Expense claims for UK contractors
🇦🇺 AU - Expense claims for Aussie contractors
🇳🇿 NZ - Expense claims for NZ contractors

Accounting and taxes

You can implement the best marketing strategy and provide the best customer service. But if you don’t have control over your finances, tax fines and missed payment fees will stop you from growing your business. Some trade business owners choose to work with an accountant, but at the very least, you need accounting software — and all of these popular options integrate with Tradify:

5. Build a free-flowing rubbish removal business

Helping people get rid of unwanted rubbish and clutter is an increasingly popular line of work and can be profitable and rewarding. However, as you take on more clients, hire staff and invest in new equipment, business admin tasks get more complex. That’s when specialised junk removal business software like Tradify is an all-in-one fix that’ll put your day-to-day estimating, quoting, scheduling, job management and invoicing processes into one streamlined system.