Except you’re running a charity organization, the sole purpose of every business is to make profits. Starting a dumpster roll-off business can leave a lot of questions on your mind. You’ll want to know if the dumpster rental business is lucrative in your area, if it’s profitable, and if it’s easy to start.
When compared to other businesses out there, starting a roll-off dumpster may not seem like the best option. But once you know that roll-off dumpsters are a $500 million industry, you will have a rethink.
Before attempting to start a roll-off dumpster business, you must be ready to pump in a lot of money. And not to worry, with the right business strategy, your investment is safe and you’ll get your profits in due time.
There’s more to starting a dumpster rental business than just making monetary profits, you get to have time to yourself too. The business is not too time-consuming as you can easily hire assistants to get the job done for you.
If you’re interested in starting a dumpster rental business and you want to know how profitable it is, then this article is for you. But before we go further on how to start your dumpster rental business, let’s consider how profitable the business is.
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Is a Dumpster Rental Business Profitable?
The profitability of the dumpster rental business doesn’t depend on the fact the industry is a multi-million dollar industry. Instead, it depends on how effective your marketing is and how you’re able to get more customers to patronize your business.
Do you know that renting a dumpster costs approximately $500? If you’re able to get enough dumpsters to rent out to about 30 customers in a month, that means you’ll be earning $15,000 per month.
Getting about 30 customers is very possible if your marketing strategy is effective. Even if you have to minus other expenses like insurance, gas, and maintenance fees, the profit every month is enough for you to live elegantly.
The major factor in determining how profitable a dumpster rental business is the price you charge per dumpster rental.
So what are the rates for dumpster rentals?
The average price for renting a dumpster is $469.29. The price can also range from $244–$833. However, the actual cost may change depending on different factors like your location, the size of the dumpster, and the kind of waste you’re disposing of. For instance, the cost of disposing of hazardous waste varies from the cost of disposing of normal waste.
To get a precise cost for renting roll-off dumpsters, contact other dumpster rental companies in your area and ask for the price at which they operate.
Also, the price varies depending on how long the dumpster will be rented out. Some companies rent out their dumpsters per week and some per month. It all depends on the agreement between the company and the client.
The profits from starting a dumpster rental business are the gain whereas, the investment needed to start is the pain.
The dumpster rental business gulps a lot of money, especially at the beginning. To start, you’ll need trucks and dumpsters, and this equipment does not come cheap in the slightest.
To get a new roll-off truck, the price range is estimated to be $50,000 to $200,000. It all depends on the quality of the truck you need.
Also, there’s the option of purchasing a used roll-off truck if you cannot afford to buy new and high-end trucks. The price range for purchasing a used truck is estimated at $15,000 and above. The price for these trucks is a huge price to pay however the endless profits you could make once you start is worth the investment.
Now that you know how much profit you could make from starting a dumpster roll-off business, it’s time to know the steps to take to start.
Steps to starting a roll-off dumpster business
- Avoid Disaster and Research the Market First
The worst thing that could happen to any business is to start up in a place where there’s no demand or need for that business. So, the first thing to do before starting a dumpster rental business is to do proper research.
First, start by identifying your market and having an idea of how many customers are likely to patronize your business. Check out the location where you want to start up, and check if it has a growing population or is stagnant.
Also, check if your customers are residential or commercial entities. Once you’re able to figure out this aspect, you’re one step further in starting your dumpster rental business.
It doesn’t stop there; conduct intensive research into how the business has been conducted in that area. Ask around to see if the dumpster rental business has existed before and closed down. Or if the existing ones are satisfying their customers.
- Establish Your Business
After you’ve conducted your research and you’ve concluded that it’s safe to start your business, the next step is to establish your business. Choose a business name and logo that is peculiar to you, not one that has already been used.
If you’re finding it difficult to come up with a name for your business, some tools can come to your aid, like the Shopify Business name generator.
You can look up logo designs on canva.com and check for any design that is to your liking. If you’re having trouble with this, you can easily employ the help of a professional graphics designer.
In all you do, you must ensure that your business name and logo aren’t the same as someone else’s because it’s bad for business.
Another step to establishing your business is creating a website. You can keep your website simple with nothing too extra and fancy except if you can afford it.
Then you need to have a GMB account(Google My Business). This account helps people that need roll-off dumpster businesses in your location to find you easily.
Then lastly, set up your business entity like a limited liability company or partnership. If you want to take this step, you need to hire a professional lawyer that can help you set this up without any complications.
- Create a Business Plan For Your Dumpster Rental Business
For any business you want to venture into, you need a business plan. A business plan is what guides your business to become a successful one.
When creating your business plan, some things must not be overlooked. For instance, budgeting, competitor analysis, marketing strategy, pricing strategy and operational plans all have to be included in your business plan.
Not only does it help you have a defined purpose, but it’s also useful when you need to solicit financial assistance from banks and loan companies. These companies will request a professional business plan to check if your business is worth their assistance.
- Open Up a Business Checking Account and Credit Card
You need to open a business checking account for your business. Let all your business finances run through that account.
Operating a business account that’s different from your account facilitates the record-keeping process. It also portrays your business as a credible and professional entity. It sounds more professional to ask the client to pay into your business account than into your account.
Also, while you’re at it, get a business credit card. It’s way easier to acquire a business credit card even if you’re just starting your business. However, just like your business account is solely for business purposes, do not use your business credit card for personal purposes.
- Obtain Funding
To start a roll-off dumpster business is not a piece of cake. You need heavy funding to get started. And except you’re extremely wealthy, you can’t pull this off on your own.
However, there are different ways to obtain funding for your dumpster business. You can add your savings to the amount you’re able to get from family and friends. Or you could seek assistance from banks and financial institutions.
Soliciting for help from these institutions helps you to gather the funds in time and start your business as soon as possible.
- Obtain License and Permits
To operate your business, there are certain licenses and permits you need to have. Before you can use your roll-off trucks, you need to obtain a Commercial Drivers’ License(CDL).
Also, depending on your location, you might need additional licenses and permits to operate there. You should make your research on the permits you need before starting.
But for all businesses, you’ll need to obtain a general business license and this license isn’t expensive or difficult to get.
Then you’ll need to employ assistants and drivers to help you out with truck deliveries as you may not be able to handle all the deliveries yourself.
On a final note;
If you’re interested in starting a dumpster rental business but you’re worried about how profitable the business is, then be rest assured that it is profitable.
All you need to get started is the initial capital and extensive research on where to start up your business and you’re good to go.