Are you thinking of the best business to venture into? The dumpster business is not one that many people will readily jump into for reasons best known to them.
However, one thing worthy of note is that there are a lot of opportunities in the dumpster business. You can get the most out of this business, especially in locations where there are no sufficient dumpster rental businesses.
Also, another benefit of the dumpster business is that it’s not time-consuming. The only thing required of you is to answer phone calls from your customers and make dumpster rental deliveries. This business doesn’t require that you sacrifice your entire time because you can easily employ the service of an assistant.
So, do you want to know how much it costs to start a dumpster business? Keep reading to know more about the cost involved and the things to check off the list to start your own business.
How Much Does it Cost to Start a Dumpster Rental Business?
One reason why fewer people are involved in the dumpster rental business is not that it’s a job most people consider dirty. It’s because it requires a huge amount of money to start. The hardest part of running a dumpster business is at the beginning when you have to spend a lot of money. Once you’re able to raise the capital you need, the business can go on smoothly.
When it comes to the dumpster rental business, you spend the most money on trucks and dumpsters; and yes, they can be very expensive. A rough estimate on the price of new roll-off trucks is somewhere between $50,000 to $200,000. If you’re looking to get high-end trucks, this is the price you’d have to pay.
But for people who are interested in this business but do not have this amount of capital, you have the option of buying used trucks. Purchasing a used truck is a more feasible plan when you decide to start a dumpster rental business. A rough estimate of a used truck is somewhere between $15,000 to over $15,000 if you still want to get quality trucks.
This price may seem exorbitant for some, however, you can solicit help from family and friends to help raise the capital, and at the same time, you opt for a loan.
Dumpster Business Overview
The dumpster rental business is always high in demand because so long as there is trash around, there will always be a need for roll-off dumpsters. Every day, different sizes of dumpsters are always in demand whether for residential, commercial or industrial use. Sometimes, they rent it out for long-term use while some rent it out for a specific period.
When a customer requests a dumpster, you as a business owner make the delivery of the dumpster to the client’s location. After use, you go back to pick up the dumpster once the time of rent has elapsed. Some rental companies go the extra mile to help their clients dispose of the waste contents in the dumpster from time to time.
The sole purpose of the dumpster rental business is to take the burden of owning a dumpster for personal use off customers’ shoulders. It’s expensive to acquire and as such, everyone cannot own one.
Dumpsters are only needed temporarily, that’s why they’re always rented out. For dumpster rental businesses, the more you rent out dumpsters, the more profit you make. If you’re able to serve multiple customers, you begin to rake in more profit and cover all the money you spent as capital. You could even go ahead to purchase more dumpsters so you can be able to satisfy more customers.
However, before you venture into a dumpster rental business, you should first do your research. Make a research on the location or the area you want to start your business.
Check to see if your business can thrive better in that area and also look at the market competition. If you’re new in the business, you should check out what your competitors are doing, and check the rates at which they charge their customers per dumpster.
Also, look for certain opportunities that your competitors have missed, if their charges are too high, make yours moderate. If their dumpster sizes are too big, get mid-sized ones. Just make research on the opportunities your competitors have missed and leverage them.
While conducting your research, it’ll be a smart move for you to get in touch with your local landfills. The reason for this is so that you’ll be aware of the waste disposal restrictions in your area.
Once you get your hands on this knowledge, you may be able to strike a deal with the landfill operators and maybe get a discount. At the same time, you’ll know what kind of waste material can be disposed of there. For instance, hazardous materials may not be allowed to be disposed of in your local landfill so it may affect the price of your service.
In essence, making proper research gets you familiar with how the business is being run in your area. Then you will be able to incorporate your discoveries into your business plans and become successful at them.
Schedule a FREE website audit NOW.
Checklist for Starting a Dumpster Rental Business
Below, you’ll find a list of things that you should do if you’re serious about starting your own dumpster business.
- Write A Business Plan.
You already have the vision of starting a dumpster rental business, so what next? The next step is that you should create a business plan. To apply for loans from financial institutions, you’ll need a business plan. Aside from that, creating a business plan gives you and your business a sense of direction.
- Form A Business Entity
The most common types of business entity is a sole proprietorship, limited liability companies, corporations and cooperatives. Each of these entities comes with its risks and advantages. But when it comes to the dumpster rental business, the best entities are usually sole proprietorship and limited liability companies.
The only downside of the sole proprietorship is that the owner will bear all the risk alone. And for the LLC, the owner can enjoy the liability protection of a corporation while operating the business as a sole proprietor.
- Choose a Business Name
Finding the perfect name for your business can prove difficult. Because firstly, you have to ensure that the name has not been used elsewhere. Also, your customers have to understand the name of your business so they can call for it anytime they need it.
- Select your Location
Most of the time, the dumpsters will be with the customers when they rent them out for use. However, when they are not out for rent they need a place where they can be stored. When choosing a location for your business, choose one that is closer to your area of operation. Because it will save time and gas when you’re out to deliver dumpsters to your customers.
- Apply for Business Licenses and Permits
Generally, dumpster rental businesses do not need a license to operate however the drivers for the dumpster trucks should be licensed. Apart from that, as a business, you need some documents to operate freely without getting in trouble with the law. Documents like Business license, Employer identification number, sales tax permit etc.
- Find Financing
This is the most crucial part of starting a dumpster business. Raising capital for this type of business can be difficult to achieve individually. That’s why you must search for funds either from financial institutions or from family and friends. Either way, so long as you come up with the funds legitimately, your business is good to go.
- Open a Business Bank Account
For more effective running of your business, you should separate your business finance from your finances. By doing this, you’ll be able to keep track of the finances of your business. You’ll be able to tell if you’re making profits or losses. So endeavour to create a business account for your business.
- Get Your Marketing Plan in Place
For your dumpster rental business to thrive, you need a good marketing strategy. Customers are always in need of dumpster services so you have to get in their faces.
These days, people take to the internet to look for dumpster rental services near them. So the smart move to take is to engage in online marketing. Such as paid advertising, social media marketing, etc.
- Hire Employees
When you first start your dumpster rental business, you may be able to handle the business all by yourself. But as the brand grows, you need more hands on deck to ensure faster deliveries. You may need to employ additional drivers for the trucks.
- Set up an Accounting System
For your business to last longer, you need to set up an accounting system. This helps your business to know how much tax it needs to pay to the government and when to pay it. An accounting system keeps track of all the cash that goes in and out of the business.