Starting a junk removal business always appears like a simple and straightforward self-employment idea. People are always looking to get rid of their stuff, and you get paid to do it. With carbon-footprints all over the world, it’s the junk removal business that likes getting their hands dirty. In a time of increasing affluence, more and more people are looking to downsize, creating more opportunities for junk removal services. Good for you and the people around you!
Though junk removal can be a very successful business, there are some factors that you have to keep in mind before venturing out into this business. Take a look!
- Take a look at the junk around
Market analysis is a prerequisite for anyone and everyone seeking to venture into something new and exciting. If so, then you should find out about the presence of Cambridge junk removal providers or wherever you are based. Your search must not only include small junk removal services, but also the big players.
You also need to understand the prevailing market rates, your operating cost, overhead costs, and the facility required to properly dispose of or recycle the junk. Cold call companies and find out their current prices- they might be fluctuating. The most important factor that you need to think about is what questions you will be asking. Deciding who wins the scrap contest among landfill owners, scrap dealers, charity donations, or any other uses will impact the cost of removal.
- Get lawyered up!
You can get a lot of flak from the authorities if you do not meet compliance. The basic point here is that there are regulations in place that govern the junk businesses too. Depending on where you are based and the laws there, you will either be bound to follow the state laws or federal laws for lawful disposal of the junk. Especially when it comes to hazardous waste management, hefty fines may be levied, if the disposal is not done legally. You have to know the rules to break them! But sometimes, try not breaking them!
Do your due diligence before starting your business; understand what certifications or licenses are required to be an authorized dealer.
- You better check yourself before you wreck yourself!
Another practical aspect of doing market research is to take a temporary job with a junk removal business to gain an understanding of how the business runs and the organizational skills required. Know what you are getting into before investing in yourself.
- Study Bigger Brands
The entrance of big players has increased consumer expectations for appearance, price as well as professionalism. Professional customer service is of high importance and hence imperative to have. You also get the opportunity to customize your business to help in differentiating yourself from the big brands. Remember, everyone once started small!
- Know the Barriers to Entry
If it did not require capital investment or market research, everyone would be in the junk business. This situation is commonly known as barriers to entry, and failing to understand this can throw you out as fast as you got in.
The trick you can use here is to enter and under-price your services because others may not have a realistic picture of overhead costs, making it economically in-viable for people to match. The best bet is to offer highly personalized service and make it extraordinary so that people start raving about you.
- Consider Seasonality
The volatility of the junk removal business is majorly dependent on the season of the year. Spring and summer are the busiest seasons. Festive seasons such as Christmas will constitute the highest revenue earning period for all junk removal businesses, so keep an eye out for it!
We have done our best in carving out the key factors of the junk removal business. Consider and study them carefully, or else you will be in deep shit- oops, junk! Let us know if this article helped you in starting your junk business.