Do you want to start a junk removal business that will bring in immediate revenue?
In most cases, starting a junk removal business requires a huge investment without turning a profit for at least the first year. That’s a lot of money for absolutely no return.
In this article, we’ll discuss how you can start your own junk removal business as an independent contractor with little-to-no buy-in while also getting immediate jobs and immediate revenue.
That’s right! We won’t be giving you leads…we’ll be giving you jobs.
We’ll also take a look at the other options you have for getting into the junk removal business, including buying a franchise and starting up on your own. So let’s get started!
How to Start a Junk Removal Business
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- Getting Started: Tools, Vehicles & Equipment
- Junk Removal Start-Up: Moderate Investment, More Risk
- Independent Contractor: Smallest Investment, Least Risk
- Junk Removal Franchise: Largest Investment, Moderate Risk
- Benefits of LoadUp’s Exclusive Loader Program
- Junk Removal Business Income Potential
- Frequently Asked Questions: Starting a Junk Removal Business
How to Start a Junk Removal Business
Although difficult work, junk removal can actually be incredibly lucrative when you have the right support and resources to hit the ground running. However, junk removal has quickly become not only a popular side hustle, but even a full-time gig, so the competition is high.
If you start a junk removal business on your own, you’ll be competing with some of the big dogs like College Hunks, 1-800-GOT-JUNK, Junk-King, and even LoadUp. To go up against them and win jobs that are worth your investment, you’ll need to not only have a way to haul junk and a buddy to help you, but you’ll also need to invest a good deal of money in marketing & advertising.
But first, let’s take a look at what you’ll need to get started.
Getting Started: Tools, Vehicles & Equipment
Depending on how serious you are about taking high-income jobs, a pickup truck might not be enough to start a junk removal business.
Pickup trucks have limited space in the bed, and won’t be right to take larger jobs with greater payouts. If you have a pickup truck, your hauling business will be limited. You still can haul little items like mattresses, electronics, small pieces of furniture, scrap wood and metal and other miscellaneous items, but you won’t be able to complete larger, high-ticket jobs, and you’ll be making more frequent trips to the dump, recycling facility or donation center.
For example, you won’t be able to perform a property cleanout – or even some basic junk removal jobs – without taking multiple trips to the dump. This creates an issue since it taps into your overall profits when you’re paying out more for gas, mileage, and multiple dumping or recycling fees. Not to mention, larger jobs have higher payouts!
Now let’s take a look at your options for starting a junk removal business, beginning with creating your own startup company.
Junk Removal Start-Up: Moderate Investment, More Risk
The Investment: $90k+
Starting a junk removal business doesn’t have to be super expensive, but it also isn’t cheap. Some things that you’ll need startup money when starting a junk removal business include:
- Box truck: You’ll need a reliable ride that can handle a heavy payload. Box trucks are the most ideal vehicle for junk removal, and when purchased new, can cost anywhere between $25k to $50k+ depending on the make, model, year, and size of your truck. The newer the truck, the easier it will be to maintain. The larger the truck, the more junk you’ll be able to carry, reducing the need to take multiple trips to the recycling center or landfill.
- Business License: The nationwide average to purchase a junk removal business license is between $50 – $400, depending on your city and state.
- Insurance coverage: It’s important to carry junk removal business insurance and to get licensed to perform junk removal jobs in your area. The average cost for $1 million general liability coverage is between $450 – $1000 per year.
- Safety equipment: This can include gloves, dollies, straps, masks and tools for basic disassembly jobs like pool tables, basketball goals, hot tubs, treadmills, and other bulky items that might not be able to fit through a customer’s door.
Once you have a solid business plan, you can apply for a small business loan or grant to try and gain some extra money to start your junk removal business, purchase a box truck and tools, and pay for your business license.
An easy way to create a business plan when you don’t have much business experience is by downloading a junk removal business plan template or purchasing one online. You can usually find what you need by searching the web for “junk removal business plan” or “junk removal business plan pdf”.
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The Risk: Getting Jobs
Sounds good so far, right? You’ve got your license, your truck, your gear and your insurance.
But what about getting jobs? How do you start bringing in actual junk removal business revenue?
Marketing & Advertising
Marketing and advertising is expensive. You’ll need a website, need a way to schedule, book and get paid for jobs. You’ll need business cards, signage and some form of advertising.
The average Digital Marketer makes at least $35k starting, which means they are fresh out of school and lack crucial experience with junk removal website design, industry-specific SEO, advertising, and marketing campaigns.
Outsourcing gives you a more experienced marketing team and is usually a better option that doesn’t require having a Digital Marketer on your payroll. However, the average cost to outsource marketing costs between $4,000-$7,000 per month.
Unless a Marketer is fully-immersed in the junk removal industry on a daily basis, they won’t be able to keep up with those who are. This could dramatically limit the success of your new business.
But what if you could tap into the resources of a large-scale, well-established junk removal company? What if you could have access to their loyal customer base, strong marketing team, and successful advertising campaigns? What if you could immediately start turning a profit?
This takes us to the next option: joining the only nationwide network of independent junk removal experts with LoadUp.
Independent Contractor: Smallest Investment, Least Risk
Until the launch of LoadUp in 2014, junk removal was a very different business. From what you’ve read already, getting into the incredibly lucrative industry of junk removal required a lot of money upfront, with no return for about a year.
But thanks to LoadUp, that’s no longer the case!
LoadUp is the first, only and largest network of independent contractors in the junk removal industry. When you become a driver for LoadUp, you’ll get immediate access to jobs and weekly cash flow.
We receive so many jobs every single day that we are aggressively seeking qualified, dedicated Loaders to join our nationwide team.
In other words, LoadUp is currently seeking badass haulers.
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Why Join LoadUp?
This shows the power of using our marketing team versus hiring somebody who doesn’t really know your brand or your business like we know ours.
Although we are headquartered in Atlanta, we provide junk removal services to most major cities in every state across the country. With close to 2,000 weekly jobs available nationwide, LoadUp has a well-established customer base that you’ll get immediate access to.
Our powerful proprietary technology and easy-to-use LoadUp Driver app make it easier than ever for Loaders to accept jobs, as well as manage and track order statuses. Plus, our online booking system and upfront pricing structure have eliminated on-site estimates, so you won’t have to waste your own time or gas on multiple trips without a guaranteed payout.
LoadUp is looking for individuals to join their incredible team of Loaders, nationwide, but we do have an even greater and more significant need for Loaders in the following cities:
- New York City
- Long Island
- San Francisco
- Salt Lake City
- Northern Los Angeles
Do you have what it takes to become a Loader? Here’s what we’re looking for:
- Individual contract carriers that own their own truck(s).
- Established junk removal companies wanting more jobs.
- Courier or delivery companies with trucks looking to make supplemental income.
- Individuals who own a truck or van and have their own helper and want to make extra money.
There is no cost upfront to become a Loader. All you need is your own truck, a dedicated helper, your own tools and hauling equipment and the desire to turn hard work into cold hard cash.
Now the only question left is: Are you cut out for the junk removal business?
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What kinds of jobs will I be doing?
The average junk removal company regularly does extremely labor-intensive, dirty, and nasty removal jobs that can involve things like cleaning out the property of a hoarder or hauling bags of waste and debris.
As a Loader with LoadUp, you’ll occasionally do those dirty and difficult jobs, but on most days you’ll be hauling between one and three items per job.
Returns: An Added LoadUp Bonus
LoadUp has partnered with some of the largest mattress and furniture companies across the country to offer return pickups to customers. Here’s how it works:
A customer purchases a mattress through one of our partners that has a 30-day money-back guarantee. They decide that the mattress isn’t for them, so they request to return it. As their partner in returns, LoadUp then receives the mattress removal job, which would entail picking up the mattress from the customer and then either keeping it or disposing of it.
Mattresses can’t be resold after they have been used, so our partner has no other option than to just get rid of it; and you get a free bed out of the deal in addition to getting paid!
You also have the option of donating returns to your local charity, homeless shelter, women’s shelter or other charitable organization of your choice. We encourage you to choose this option over the dump. By donating the returns you pick up, you’ll avoid the dump fees altogether while also helping someone in need.
LoadUp’s Exclusive Loader Program
For Loaders wanting to take their junk removal business to the next level, we have an Exclusive Loader Program. Our Exclusive Loaders will enjoy a huge number of benefits with a much smaller buy-in than going out on your own or purchasing a junk removal franchise.
The Investment: $500 – $10k+
To join the Exclusive Loader program, you’ll have to purchase the rights to at least five zip codes, annually. Depending on your area, prices range from $100 – $1500 per zip code, per year. You always have the option to purchase more zip codes, which will give you greater earning potential and the ability to expand your business by being able to accept more jobs and grow your team.
On the high-end, you can spend $10k+ on zip codes per year. This option is perfect for already established junk removal businesses looking to expand and solidify their customer base and easily grow their profits.
We’re not going to try and claim that $10k isn’t a lot of money. But when you compare it to the $90k – $150k you would pay otherwise, and the fact that you’ll be getting immediate jobs and quickly turn a profit, it’s a serious deal.
Here are some of the benefits you can expect from our Exclusive Loader program:
- Exclusive rights to zip codes you choose: You will have the first pick of all jobs in your zip code. If you choose not to accept them, then and only then will those jobs be released to other Loaders in your area.
- Increased Business: LoadUp gets an average of close to 2,000 jobs per week, nationwide, during the busiest time of year. Our business has grown significantly over the last two years with no end in sight!
- Higher payouts: Each job you complete as an Exclusive Loader has a higher payout when you brand your vehicle with the LoadUp brand. That means more money in your pocket!
- Professional LoadUp Branding: Get your business branded with the LoadUp name and gain nationwide recognition for your incredible services.
- Boosted Advertising: Our marketing and advertising team will take care of everything for you, and provide increased advertising in your exclusive zip codes.
- Dumpster Rental: Ability to diversify your business by adding “Dumpster Rental” to your available services.
Junk Removal Franchise: Largest Investment, Moderate Risk
Buying a junk removal franchise requires one thing – money. And lots of it.
The Investment: $150k+
If you don’t mind not turning a profit for at least a year and have at least $150k to shell out upfront, then buying a franchise is a viable option. And that’s if, and only if, you already have a box truck available for jobs.
The Risk: Not Turning Profits
When you sink a lot of money into something like buying a franchise, it will be very difficult to see an actual profit immediately. The amount of money you have to put out upfront will take time to build back up, which you will be working toward over at least the first year of business.
Is buying into a franchise actually worth it?
The most widely known junk removal franchise is 1-800-GOT-JUNK. According to their website, franchisees are required to have at least $90,000 in liquid assets, and will have to also pay a $30,000 initial franchise fee.
However, 1-800-GOT-JUNK does state that your total initial investment will be between $107,400 – $140,400, and you’ll have to pay them an ongoing royalty fee of 8% of all your franchise’s earnings.
In short, unless you have a ton of money to invest and don’t mind not turning a profit for at least a year, buying a junk removal franchise is not worth it.
Junk Removal Business Income Potential
If you possess the qualities of a professional junk hauler, you’re in for a real financial treat. Your junk removal business salary depends solely on how much you need to invest upfront, how much work you’re willing to put in, and how many jobs you accept on a weekly basis.
We’ve already mentioned that the only way to generate immediate income and turn a profit quickly when starting your own junk removal business is to become an independent contractor with LoadUp. So how much money could you be making by doing so?
On average, you can expect to make about $72 per job, with each job picking up and disposing of between 1-3 items. The highest single payout for one job that we’ve seen was $5,000 for a full office cleanout. Talk about big money! 😮
With LoadUp, you set your own schedule and accept the jobs that you want. We will never force you to accept a job. However, the more jobs you accept every day, the more money you can expect to make!
In short, if you’re willing to put the work in and make the right investment with your money, the junk removal business means big cash.
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