Are you skilled at in-home and business repairs? If so, you might want to provide handyman services. Caleb started North Seattle Handyman in 2017 and is making $250k/year with only one employee. He started his handyman business with $5,000 and has never had a month where he didn't break even. He shared how he started his business, and we're going to share his tips with you. We'll walk you through how you can start your own handyman business step-by-step.

What is a handyman?

A handyman is a person who does odd jobs like small repairs, home maintenance, hanging TVs, and other tasks that homeowners and rental property companies require to ensure that their properties stay in good repair. That means most handymen will be working in the client's home or business. Working on someone else's property has special legal requirements that you need to pay attention to during the beginning stages of starting a handyman business. We'll cover them in general terms as each state will have different requirements.

What type of work can a handyman do legally?

Each state has different requirements, but in general, a handyman can typically do jobs under $1,000 without a handyman license. If you plan on taking larger jobs, small business owners should check what their state's requirements are on Next's Handyman License Requirements. Local contracting laws may also impact whether you need handyman licenses for smaller jobs. Go to your city or county's website to establish whether you have local licensing requirements. If you wish to do larger repairs, like home remodeling, or other services like plumbing, HVAC, or major electrical repairs, you may need a contractor's license. As previously mentioned, your city or county will give you the best information about which license is better for you. Caleb told us: [su_quote]I have a general contractors license so that I can manage larger projects than most handyman businesses, but I make more profit on my smaller projects.[/su_quote] Do handymen need to be licensed? I wish I could give you a better answer to this and on how to get a handyman license. Unfortunately, the spectrum of requirements is so dramatic that the best I can tell you is to use Money Lion's links to the proper governing authorities for each state.

Skills required to become a handyman

When starting a handyman business, you should have a variety of skills because your potential customers will want to be able to contact you for any of the tasks they don't have the time or desire to do. Some of the most common client expectations of handyman business owners include:

• Know how to find a stud
• Anchoring bookcases, TVs, and other objects on a stud
• Filling holes in drywall with spackle
• Fixing loose tiles
• Caulking tubs, sinks, and bathtubs
• Fixing leaking faucets
• Unclogging drains (with or without a snake)
• Seal cracks in pavement
• Change showerheads and toilet seats
• Clean gutters
• Change doorknobs, tighten hinges and replace door locks
• Change filters
• Building and replacing window screens
• Painting
• Basic electrical like changing light switches and electrical outlets

If you want to learn about how to do many of the projects a handyman works on, check out The Handyman Youtube Channel. He has a ton of videos on repairs and other work he has done. I found him entertaining too.

Tools required to become a handyman

According to Smart Service, every handyman should have:

• Claw Hammer
• Tape Measure
• Level
• Utility Knife
• Impact Driver
• Drill Driver - Included in the suggestion for Impact Driver
• Drill Bits - This includes drills bits and screwdriver attachments
• Circular Saw
• Recipro Saw
• Flashlight - I'd suggest both a handheld and headlamp
• Charging Kit - Included in other power tools
• Shop-Vac
• Screwdrivers
• Wire Stripper
• Pliers
• Gloves
• A vehicle that can transport everything. Look at work vans and trucks if you don't already have one.

Now that you have a great list of tools you need to provide handyman services, let's look at how much it costs to start a profitable handyman business.

How much does it cost to start a handyman business?

If you have the tools and vehicle to start providing handyman services, the startup costs can be fairly low. Caleb told us: [su_quote]I started my business with $5,000, which was primarily the general contractor's license, a surety bond, and general liability insurance.[/su_quote] If you have to purchase the tools and equipment needed, starting a new business as a handyman may cost as much as $60,000 if you buy a new truck. Depending on the payment terms of a car loan, most of the extra cost could be spread out over 5-7 years. Handyman startup pricing will obviously depend on your area of the country and local regulations. Many handymen will be able to start a business with no special requirements, but places with higher-cost handyman business license requirements may be more expensive places to start small businesses.

How much do handymen charge?

When I researched "How much do handymen charge?", this is what I found:

• Self-employed handyman hourly rate: $50-$125/hour
• Most jobs are between $65-$1200 with an average of $390
• Common jobs may have a flat fee
• Materials are typically in addition to the hourly rate

We asked how much Caleb charges per hour and he told us: [su_quote]I charge $100/hr plus material costs. I found that was the rate that attracted clients that appreciate the work and can afford the service.[/su_quote] You can watch the entire interview here:  [su_youtube url="https://www.youtube.com/watch?v=leUta_q_MPQ"]

How much does a handyman business make?

This is the part of every business that really matters: how much do handymen make a year? Caleb told us: [su_quote]I pay my handymen between $30-35/hr ($62,400-72,800/yr.)[/su_quote] According to the Bureau of Labor Statistics, Repair Workers tend to average around $40k/year.  Because business best practices suggest keeping employee compensation (including benefits) at less than 1/3 of revenue, a handyman business should plan to make at least $120k revenue per handyman. That's consistent with what Caleb told us: [su_quote]I'm making about $250k/year with me and one other handyman. We're about at the limit we can handle without hiring another local handyman.[/su_quote] To further give you an idea of how much money many handyman businesses make, we asked Caleb how many clients he takes a day. He told us "Each handyman can normally handle about 5 calls a day." Now that you know the basics of what you need to become a handyman, let's dig into the process of how to start your own handyman business.

Identify the target market for your handyman business

Every new business will need to establish who its ideal customers are. Caleb was the most informative small business owner we've talked to about who the potential customers are. He gave us a list of potential target markets you may want to pursue when starting a handyman business.

• Property management companies because they create business growth quickly due to the number of properties they manage.
• Real estate agents because the buyers will frequently ask for small repairs that were noted on the pre-sale home inspection.
• Homeowners in wealthy areas who are able to afford service calls that are $500+

He also told us: [su_quote]I talked to a business consultant who recommended including Northern Seattle in my business name. That had 2 benefits, made it easier for my small business to rank on the first page of Google and narrowed down the area I service to between North Seattle and Mukilteo.[/su_quote] For those who don't know the Greater Seattle Metropolitan area, it is approximately a 1.5-hour drive to drive from Olympia to Mukilteo, but only 22 minutes from North Seattle to Mukilteo, reducing the time sitting in traffic by 67% percent. That makes it where each vehicle can take an extra service call or two per day. I'd recommend doing the same if you live in a metropolitan area and constrain your target audience to a much smaller geographic location. Keep reading to learn about writing a business plan.

What to include in your handyman business plan

A business plan will help guide your decisions and strategy if you want to start a profitable handyman business. Exactly what you should include in it depends on whether it is just to guide your decisions, to help employees understand their roles in the business, and whether you are trying to get small business loans. At a minimum, I would recommend including:

• The business’ services
• The business’ goals. Do you just want to make as much money as you can make on your own, or do you want to hire employees?
• Who the ideal clients are. If there is more than one, you should break down each segment separately.
• What you need to achieve before you can begin business operations.
• Budget and funding-startup costs and how you will get the funding. If you need to take out loans, how will you accomplish that?
• Naming the business - This is how companies will know your business.
• Forming a business - All the legal requirements that you will have to meet to start a small business and maintain your handyman licensing.
• Hiring employees (if you plan to) - What roles you will need to fill and how you will fill them.
• Marketing Plan - Guides what marketing strategy you will use, including marketing materials, social media platforms, and a brand style guide
• Operations Plan - Guides how the business will and will not operate, including customer relations, processes, vendor management, and employee management. If you are seeking funding or need the business plan to guide employee decisions, you'll want a more in-depth plan. Here’s some free and low-cost education on business plans:
• UpFlip’s blog on How to Write a Business Plan
• SCORE’s free business plans and startup assistance resources
• The Complete Business Plan Course (Includes 50 Templates)

I'd also suggest checking out our interview with Mike Andes on how to write a business plan. [su_youtube url="https://www.youtube.com/watch?v=Seac5PbUZXk"]

Create a budget and obtain funding for your Handyman Business

Creating a budget requires financial discipline. You'll want to estimate the costs that you will incur before starting your business and during operation, and you’ll want to include a miscellaneous expense amount. Let's look at each of these.

Startup costs for your business

While I have already given you an idea of how much startup costs can run, I feel like we should break it down into more detail. Here are the line items you should probably consider:

• Cost of tools (if you don't already have them): _______
• Cost of work vehicle (if buying): _______
• Cost of DBA in your location: _______
• Small Business Insurance/Handyman Insurance (talk to your insurance company to see if they offer this): _______ How often is the renewal period?
• Local Licensing: _______ Is there a renewal period?
• State Licensing:_______ How often is the renewal period?
• Cost of Commercial drivers insurance: _______ How often is the renewal period? Are you using your personal vehicle? If so, what is the difference between personal insurance and commercial insurance?
• Cost of website and other software: _______ How often is the renewal period?
• At least 1 month of marketing expenses:_______. If Caleb uses paid marketing, it's $600/mo (read marketing section for more details.)

Operational Costs

Operational costs should be broken down monthly. Remember, you should assume best-case revenue is $120k/handyman. If you are just doing this for yourself, I would probably do a one-year analysis and return to it each year. If you are trying to get financing, I would use a 5-year budget.

• Any renewals mentioned above (add 3% each renewal period to protect against inflation):_______
• Vehicle costs:_______ assume $.58/mile
• Loan Payments (if applicable):_______
• Employees: _______ Assume $40k per employee or 30% of revenue attributable to that employee (or more if you are paying higher than average wages.)
• Sales tax: _______ Base it on your location and revenue estimates
• Income Tax: _______ Assume 20% of revenue
• Materials: _______ Assume 10% of revenue according to BPlans.
• Miscellaneous expenses: _______

I created a mock income statement using:

• Data Caleb gave us about his revenue and other expenses.
• Assumptions from the BPlan link above.
• Breaking it down for 1 and 2 trucks.

These were the results: If you can achieve these results (or better), your business bank account should be in good standing. During the first year, meeting the $125k mark may be a challenge. Fortunately, you only have to make around $30k to break even, which should be completely achievable.

Funding your business

In the previous section, the interest expense was based on 10% of the total operating expenses. If you seek funding, you'd want to use either total operating expenses or (Total operating expenses + Direct cost of sales = Funding needed). Common funding paths include:

• Personal funds/personal assets
• A loan from family or friends
• Funds from a business partner
• Government programs

The SBA offers free courses on financing options and funding programs. For info on using personal funds to start a business, check out this article from The Hartford. Alternative sources of funding include:

• Crowdfunding 
• Credit cards
• Home equity loan
• Business loan - check out our partners
• Rollover for business startups (ROBS)

Keep reading for tips on naming your business.

Select a Business Name for your Handyman Company

Next, you need to name your handyman company. Consider these questions while naming your company:

• Does it describe what you do?
• Is it easy to remember?
• Does it prevent weird acronyms?
• Is it available as a domain name? Check that the domain name and social media accounts are available with namechk.
• Include your location/area you serve, as Caleb suggested.

Try the business name generator from Shopify and make sure it is available with the Business Name Search from Better Legal.

Get a domain name

You can buy domain names from the platform you set up your online store on, but if you want to spend money on it elsewhere, you can find domain names for as low as $0.88 at NameCheap. Other providers include:

• Google Domains
• GoDaddy
• HostGator

You can't learn how to become a handyman without learning about the legal requirements. Keep reading to learn more about becoming a legal entity.

Become a Legal Handyman Business

Before you can legally work as a handyman, you’ll need to meet the legal obligations of your area. Depending on your location, you may require all of these, but the insurance and bonds are most commonly associated with major cities that have special contractors licensing requirements.

• Business License/Contractors License
• Business Insurance
• Bonds
• Business Formation
• Apply for an EIN
• Sales Tax Permits
• Tax Filing and Withholding
• Federal employment and labor law posters
• Unemployment Insurance

I'd like to remind you that earlier in the blog, Caleb told us that his startup costs were $5,000, most of which involved this process. Keep reading to learn more about each of these requirements.

Business License/Contractors License

The business license may be required on a state, city, or county level. The requirements will be different for each location. I provided information on the state level earlier in the blog.  Unfortunately, there's not a definitive source for local levels. Just to give you an idea though, for jobs over $1,000 in Nevada (and jobs less than $1,000 that are part of a larger project, or involve HVAC, plumbing, or electrical work), the state Contractors Board requires:

• Submittal of resume and references
• Disclosure of financial records
• Disclosure of criminal background (if any)
• A commercial bond of up to $500k
• Passing an exam on business law AND trade practices
• $300 application fee
• $600 license
• Up to $1,000 annual payments to the consumer recovery fund

That means most of the jobs a handyman will do would need a contractor's license in Nevada. In NV, you'd want to go for a general contractor license so you can handle any projects you want. It might be tempting to run the business without a license, but that risks criminal penalties of up to 4 years in prison for operating as a contractor without a license. Make sure to do online research on the following topics to make sure you follow the proper procedures:

• Do I need a contractor license in (Insert your state)?
• Do I need a contractor license in (insert your city)?
• Do I need a contractor license in (insert your county)?

Business Insurance

Business insurance can be purchased from most insurance companies. I'd reach out to your current car and home insurance first as you may be able to get the insurance through them. You'll want a commercial liability policy, which will typically be $1 million occurence/$2m lifetime coverage, but some areas or clients may require more. For instance, in my hometown of Las Vegas, MGM casino properties require $3m per occurrence. They also require $1m automobile coverage for contracts. If you have a client that needs work done very occasionally that has these requirements, you can often change it for the length of the time it takes to do the job and reduce it again upon completion.

Bonds

If you need a bond for a handyman business, you will need to get the details from the governing agency that approves the contractor licenses. In NV, they require a bond agency with long-term debts that are A grade or a cash bond of up to $500k. I strongly suggest going with the bond agency.

Business Formation

Now is the time to establish the legal structure. For best results, hire legal representation that has experience starting a business, like an attorney, accountant, or tax specialist. Each location has different licenses, permits, or tax forms required. Use the SBA License and Permits page to identify what your handyman company needs. We have partnered with Better Legal to help you with the business formation process. Better Legal will set up an LLC or Corporation for you. Their services include:

• LLC or Corporation Filing
• Employee Identification Number
• Operating Agreement
• Banking Resolution Document
• Free Website with Inventory Management
• Free Business Checking Account
• Free Tax Analysis
• Business Specific Insurance Suggestions
• Suggested Payroll, Benefits, and HR Platforms

They’ll help you get your business started quickly so you can focus on how to start getting clients for your handyman business. Keep reading for information on different legal structures.

Limited Liability Corporation (LLC)

An LLC is the most common business structure used in the United States because the company protects the owner’s assets. It’s similar to partnerships and corporations but can be a single-member LLC in most states. An LLC requires a document called an operating agreement. Each state has different requirements. Here’s a link to find your state’s requirements. People may register in specific states due to the cost of doing business. Delaware and Nevada are common states to file an LLC because of their business-friendly laws. Here’s a post on the top 10 states to get an LLC.

Sole proprietorship

A sole proprietorship is the easiest way to become a handyman, but the structure doesn’t protect the owner’s assets from legal issues. This structure should not be used because the handyman work includes work and materials that can cause injuries to employees, customers, or physical property. To start a sole proprietorship, fill out a special tax form called a Schedule C. Sole proprietors can also join the American Independent Business Alliance.

Partnerships and corporations

Partnerships and corporations are typically for massive organizations or legal firms. Unless there is a specific reason you need a partnership, it is better to do a multi-person LLC. Investopedia has good information about partnerships and corporations.

Apply for an EIN

Every business operating in the United States needs an employer identification number. It’s like a social security number for your business. Apply for it on the IRS website. It’s used on tax forms when filing taxes and to tie employees’ pay to the proper employer.

Sales Tax Permit

Most states have a sales tax, and you need to adhere to their requirements. This blog isn't the place to discuss the permits for all 50 states, but Avalara has a guide on Sales Taxes. Check it out. While you are learning about sales taxes, consider using AvaTax with Shopify Plus to make your tax compliance super easy.

Tax filing and withholding

Federal and state tax filing requirements apply to new employers. You must keep records of employment taxes for at least four years, including special forms and accounting for state taxes. Don’t worry! We’ve got you covered! Check out the IRS guide for employers here.

Federal employment and labor law posters

All employers must display Workplace Posters, which you can download from the website. Other requirements include:

• Employment Eligibility Verification (Form I-9)
• State’s New Hire - This is required so that people who owe child support remain in compliance
• Worker’s Compensation Insurance- Insurance for when employees get hurt on the job. Check out this guide to state laws
• Disability insurance - California, Hawaii, New Jersey, New York, and Rhode Island, and Puerto Rico have requirements. Learn more about disability insurance
• Occupational Safety and Health Administration (OSHA) - Federal and state laws govern what are safe working conditions. Fines can be up to $136,532/violation or up to $13,653/day. Make sure you understand your area’s laws at OSHA.gov.

Unemployment Insurance

The U.S. Chamber of Commerce has a ton of information on unemployment and also offers links to each state agency that handles state unemployment. You’ll have to pay $420 per employee on a federal level plus any state UI. Let's look at some tips on hiring employees to run a more profitable handyman business (measured in total dollars).

Hiring Employees

Hiring employees is primarily focused on hiring people who are skilled at the type of services you provide. Caleb told us: [su_quote]If your employees aren’t making you money, then it’s not worth having them. In the Seattle area, you are going to pay each employee around 6k a month in wages and also have LNI and insurance for them.[/su_quote] When hiring a handyman, you’ll need to:

• Post Open Jobs
• Conduct Interviews
• Establish Compensation
• Manage Tax Filings and withholdings
• Comply with federal and local labor laws

Keep reading for more info on each step.

Job Posting 

Hiring people requires posting “now hiring” signs and posting on prominent job boards. Some places you can start posting job requirements are:

• Facebook
• Indeed
• Zip Recruiter
• LinkedIn
• Craigslist

Make sure to include the tools you expect them to have as well as the most common jobs they need to be able to do without guidance. If you have to train them, you'll be spending more time on each job as opposed to taking on more jobs.

Interviews

Having a prepared list of questions for interviews can make hiring the right people easier. Indeed offers a variety of resources to help you make better hiring decisions. Read their guide on how to hire your first employee. Some questions you should ask during the interview process include:

• What handyman work are you most comfortable with? Least comfortable with?
• If you have to use a tool you have not used before, what would you do to make sure you handle it safely?
• How do you respond to a customer when you don’t know the answer to your question?
• I intentionally left (something in the shop that needs to be repaired) needing repairs for this interview, can you walk me through how to repair it?
• What are your compensation expectations?
• Do you have any ongoing commitments that impact your availability? If so, what dates and times will it impact?
• Do you have any points or DUIs on your driver's license?

Check out Indeed's list of questions to ask for more interview questions.

Compensation

Employees are typically a company’s biggest expense. There are three common pay structures in business. Each fits different scenarios. Let’s take a closer look.

Salary

Flat weekly/monthly rate based on a person working a specific number of hours. This is typically reserved for owners, managers, and some admin roles. You might want to assign this to yourself for budgeting purposes.

Hourly

This pay structure just tracks the hours an employee works and pays them a set hourly rate. This pay structure is solely based on time, not performance.

Commission

Typically used in sales to give employees a percentage of revenue. It is a strictly performance-based compensation model.

Hybrid Models

Hybrid models combine two pay structures: for instance, hourly and commission to compensate for time and performance. The hourly rate will typically be lower than an hourly rate without commission, but the commission should make it where good performing employees make more than they would without commission. These structures also help reduce the variability of pay from week to week. Paying employees an hourly wage works for most positions for clothing lines, but depending on your business structure, a commission or hybrid payment model might make sense. The article, “How to Create a Pay Structure That Promotes Team and Company Growth” offers some insights into thinking about pay structure.

Outsourcing

If you don't need a full-time employee, you can consider outsourcing or hiring a freelancer on sites like Upwork.com. You may pay more per unit hour, but it saves you time in hiring, training, and other time-consuming activities. Accounting and payroll are often prime targets for outsourcing because they can be done remotely on a weekly or biweekly basis.

Marketing a Successful Handyman Business

Caleb gave us a lot of great advice when it comes to marketing the fact that you provide handyman work. He emphasized: [su_quote]If you start a handyman business right now, you will immediately get real estate agents or people managing condominiums. I do direct-to-customer, that way, I can charge $100 an hour. I’m not using a 3rd party customer.[/su_quote] In other words, avoid using companies like Homeadvisor, Thumbtack, and other services that take a large cut for marketing. [su_quote]You have to market your skills, define your skills. Anything from hanging TVs, installing faucets, to lifelong carpentry.[/su_quote] Share pictures of projects on social media and Google My Business. [su_quote]Having a website is what has made the difference in my business. Having somewhere people can see me virtually increases my customer base about 1000 fold. We use branding on the side of the van, the website, and by doing a good job for the customers. I use Squarespace for my website. We have an online portal where the customer puts a bunch of information in for us. Our system is created to accurately quote based on emails and pictures.[/su_quote] In other words, create an awesome site using Squarespace or other platforms and integrate it with other software to make life easy. If you are going to build your own website, check out our blog on how to create a website. [su_quote]We do a lot of things to stay relevant on Google. First, the website name. Our Yelp ads help keep it ranked. Second, we ask people to include the name North Seattle Handyman if they leave reviews on Google or other places.[/su_quote]

Useful Software for Handyman Businesses

[su_quote]When a client is gets directed to my website, they fill out the info that gets put into a Google Form, and then we have a 3rd party software called Zapier that connects other parts of the business. It sends me an email, and then it also sends it to my customer management system, and that keeps everything in one place. So I can invoice, I can talk to the customers, I can schedule through that system which is Field Pulse. Those systems run around $100 a month. We use HomeWyse, it’s like having an estimating book in your car.[/su_quote] If Field Pulse doesn't seem like the best CRM for you, there are a ton of Customer Relationship Management tools for handyman businesses. Jobber and Housecall Pro seem to be two that have high usage and good ratings.

Operating Your Own Handyman Business

Caleb gave so much advice on operating your own handyman business that I think it is best to let his words do the talking. Caleb on learning business skills: [su_quote]Online tutorials are great, but I found having a business coach beneficial. You do have to spend some money on them, but they will help you make decisions you avoid making. (He uses Rebecca Ellison.)[/su_quote] Caleb on the early stages of business: [su_quote]Freedom is the best part of being a business owner. You can make being a handyman into whatever you want it to be, I made it into a professional service. When you first start out, you can definitely do this with a pickup truck and a set of tools. Eventually, I think it’s a good idea to buy a sweet van. When I first started, I was going to charge $60-70 an hour, but friends in the business said I needed to charge more, so I did. I charge around $100 an hour. $100 an hour is perfect for middle to upper-middle-class clientele. When you first start, you are going to overbook yourself. You have to pay attention and revise your decision-making.[/su_quote] I hope you have found this information about starting a handyman service company as informative as I have. If you found this walkthrough useful, subscribe to our mailing list to keep up to date on how to start different types of businesses. I want to leave you with the best three pieces of advice that Caleb can give you: [su_quote]Get started, treat your customers like people, and systemize, systemize, systemize.[/su_quote]

Everyone knows that tech companies are some of the most profitable. One of the best strategies for making a ton of money in tech is by making a mobile app.

We talked to Amin Shaykho and Marwan El-Rukby, who created their own app, Kadama, when they were just teenagers. They started as an app to link students with tutors, but when COVID hit, they had to convert to online tutoring.

[su_note note_color="#dbeafc"] We'll share the lessons learned by Amin and Marwan to help you learn how to create an app, the challenges you’ll face, and how to market mobile apps.

• Case Study: Kadama
• Mobile app development industry outlook
• How to make an app
• How to create mobile apps for iOS and Android
• How much does it cost to publish an app on the app stores?
• How to validate app ideas
• How long does it take to create an app?
• Are you ready to build your own app? [/su_note]

Read our guide start to finish, or click on any of the links above to jump to the info you need right now.

Case Study: Kadama

Amin and Marwan were barely out of high school when they met and started discussing how much tutoring sucks. They got talking about their interests and realized that they were in the unique position to build their own app for tutoring students.

They realized:

[su_quote]You don’t want older tutors. You want tutors from people around your age because they become more like friends. That makes it more fun to learn.[/su_quote]

They were both doing internships and earned the money for the original app development. Amin told us:

[su_quote]We paid a contractor $3K to create the first version of the mobile app. I learned the business side, my partner learned the app development process and took over as we learned.[/su_quote]

They had to overcome numerous challenges including people using fraudulent tactics to get free tutoring, learning the trick to making videos that encourage users to join their app, the pandemic, and nearly running out of money.

Despite all that, they double to triple their income each year and are expecting to make between $20 and $30 million this year.

Now that you know a bit about their experiences, get ready to learn about the mobile app industry and A-to-Z development process.

Mobile app development industry outlook

When you create an app, the outlook will vary depending on the industry that you are in. For instance, Entertainment software tends to have higher profit margins than healthcare or information services; eCommerce apps are highly dependent on what products you sell.

Type of Company	Gross Profit	Net Profit
Computer Services	25.52%	4.40%
Entertainment	38.09%	-0.23%
Healthcare Information and Technology	47.67%	5.72%
Information Services	32.72%	3.49%
Software (Entertainment)	63.43%	20.35%
Software (Internet)	59.11%	-14.32%
Software (System & Application)	71.52%	19.14%

How to make an app

Mobile apps need to be developed strategically because they can be a source of useful information and fun, but also major cybersecurity issues. The mobile app development process will normally follow the steps below.

1. Create design specifications for your app idea.
2. Analyze the market for your app.
3. Create a wireframe.
4. Design the app.
5. Choose your development platform.
6. Develop the app.
7. Test the app.
8. Publish your app.
9. Measure performance.
10. Market your app.
11. Regularly update the app.

Get ready to learn how each step plays a part in the mobile app creation process.

Create design specifications for your app idea

Like any business, a successful app starts with a good idea. Effectively, you want to establish what problem you will solve and how you will solve it. Amin explained:

[su_quote]First to market is a huge advantage. If you can get in first and dominate, it will be hard for other mobile apps to catch up.[/su_quote]

According to Apple’s app store, the 15 most popular types of mobile app ideas that are downloaded include:

1. Photo & Video
2. Entertainment
3. Social Networking
4. Health & Fitness
5. Lifestyle
6. Productivity
7. Business
8. Developer Tools
9. Apps for Watches
10. Graphics & Design
11. Music
12. Shopping
13. Education
14. Finance
15. Navigation

Once you’ve identified a problem and come up with an app-based solution, you need to specify the requirements for a minimum viable product before you build an app. A minimum viable product is simply the features that will be included in the app to make it useful and earn money.

Analyze the market for your app

Like any other business, mobile apps need to make money. That means you need to research the demand for your service, the target market, and how competitors make money. You can use this tool to help document your research.

Competitor Analysis Research Tool

How to make money with an app

There are numerous ways to make money with an app. Some of the most popular ways to generate income as an app maker include:

• In-app advertising: You can sell advertising space to other businesses and earn revenue from it. You’ll want to track frequency and length of ads to establish optimal lengths and frequencies for customer satisfaction and revenue. You can also sell an upgrade to an ad-free experience.
• In-app purchases: Offer your app for free and create opportunities for users to make in-app purchases. This is particularly popular with eCommerce, restaurants, and game creators. It is most beneficial with depletable items.
• Subscriptions: Charge users to pay regular fees in exchange for access to the app or its features. Many apps use subscriptions along with in-app advertising to get people to spend monthly on their app.
• Freemium: Offer a free version of the app that is very usable but is lacking a few features that a user can unlock for a one-time fee.
• Crowdfunding: You can ask for donations from users to support your app. Wikipedia is probably the best-known app maker that uses this strategy to earn money from its app.
• Affiliate marketing: You can include links to products or services from other companies in your app. When a user clicks on the link and makes a purchase, your business will earn a commission.
• Collecting and selling data: You can sell your databases to third parties, but many people view this as a poor business practice. The Apple App Store requires disclosing when you track any person or device “across apps and websites owned by other companies for ad targeting, for ad measurement purposes, or to share your data with data brokers.”
• Paid apps: You can charge to download an app, but you’ll drastically narrow your target market. Most mobile applications that use this model are either highly successful or for business purposes.
• Sponsorship: You can have companies sponsor your content. This strategy will require an audience that the sponsors can benefit from.
• Selling merchandise: You can sell products in an app to make money.
• Transaction fees: Financial services often make money in a mobile application through transaction fees. Companies like Uber and Kadama also use this model.

Kadama is free to download. Then users pay for their tutoring sessions. Amin explained how Kadama makes money:

[su_quote]Let’s say they spend $100: We take $30, and $70 goes to the tutor, which is higher than people taking a salary.[/su_quote]

He went on to explain how much Kadama makes with this method:

[su_quote]We made about $10 million last year from the 30% commission. About 80% of that is gross profit, while the other 20% goes to servers, advertisements, and to create application improvements.[/su_quote]

Once you have established that there is a market for your mobile application, it’s time to build a prototype.

Get the funding

While the costs of making an app have gone down, part of learning how to create an app is figuring out how to pay for it. Some of the common ways to fund an app are:

1. Pay for it yourself
2. Borrow money from friends and family
3. Get a business loan
4. Raise funds with crowdfunding
5. Venture capitalists

Amin told us:

[su_quote]Be excited for nos. We got 70 nos before we got a yes. If we had stopped any earlier, we would have failed.[/su_quote]

He went on to explain that app developers should be careful when talking with venture capitalists.

[su_quote]Venture capitalists will try to scrape you for their data. There’s no such thing as an NDA in this world. Be careful what information you give them because they may be just trying to compare what you do to what one of their investments is doing.[/su_quote]

How much does it cost to make an app?

Creating an app can cost as little as $60 per month and your time, but when you hire a designer and developer the costs can go up dramatically. Amin told us:

[su_quote]We paid a contractor $3K to create the first version of the mobile app.[/su_quote]

While I (the writer) was working as the content writer for an Australian development firm, I was able to learn a lot about the app development process. Custom software design for fin-tech companies often runs between $9K and $100K per month between the original creation of the mobile app and the ongoing maintenance.

Create a wireframe

Mobile app development should start with brainstorming about a user interface, or what the customer sees when they use the mobile app. App makers normally create apps by starting with a wireframe, which is a two-dimensional illustration of a page's interface. It shows your web page, app interface, or product layout.

Wireframes help programmers and designers think and communicate the structure of the software or website they're building. These prototypes also help stakeholders or customers understand what each page of the user interface will look like.

There are three main types of wireframes, with increased detail:

1. Low-fidelity wireframes: Just the basic blocks of where everything would be
2. Mid-fidelity wireframes: These frames may be slightly more detailed and show how the user interface takes the user from one page to another
3. High-fidelity wireframes: These are the most detailed and the best-looking wireframes, but the user interface (UI) and user experience (UX) features still aren’t actually added

What’s the difference between user interface (UI) and user experience (UX)?

A user interface is a front end and the navigational elements that a user can see. Meanwhile, the user experience includes both the UI and other aspects like whether transitions from screen to screen work well, speed of loading, and predictive text.

UX might also include decisions like whether to use dropdown, fill in the blank, or checkboxes to simplify filling out information in app stores.

Design the app

This stage of the app creation process turns the wireframe into a more functional-looking UI, but it still won’t have all the elements of the backend that require a programmer for the app development process.

You’ll basically be making the app visually appealing with smooth transitions and logical interfaces. There are some differences in the user interface requirements when you create Android apps and iOS app development. At the onset, it’s important to know:

• iOS apps: iOS apps need to conform to Apple’s Human Interface Guidelines.
• Android apps: Google also has design standards to follow as an app builder.

When you create apps, it is extremely important to follow the appropriate guides because 6% of app rejections are because they don’t follow the different app stores’ design guides.

Choose your development platform

Once upon a time, you had to hire a development company to design and build an app, create the system architecture, create your own servers, and build your databases. Fortunately, there are no-code app-building platforms that work similarly to free website builders.

• Appy Pie: $60 per month for a no-code app on both iOS and Google Play Store
• Softr: Good for beginners
• Bubble: A balance between power and ease of use
• Glide: Good for creating simple mobile apps
• Draftbit: Good for creating powerful mobile apps

Alternatively, you can use legacy app development strategies and host your app on AWS, Google Cloud, or Azure.

Develop the app

Once you’ve chosen what platform to use, you just have to begin app development. This can be as easy as using one of the no-code platforms listed above or spending thousands of hours on custom development. The app development will include:

• Creating servers
• Adding automations
• Adding analytics software
• Integrating cybersecurity features
• Integrating payment options
• Establishing whether storage is on-device or cloud (some decisions are stipulated by app stores)

Once you're done with app creation, you’ll need to test everything.

Test the app

When you build your own app, you’ll need to do application testing. The application testing process follows the steps below:

1. Outline the process.
2. Select test type.
3. Prepare test cases.
4. Perform manual testing.
5. Perform automated testing.
6. Perform usability and beta testing.
7. Perform performance testing.
8. Perform security testing.

You’ll need to perform this process for each of the operating systems before you submit your mobile app development project to the app stores, which we’ll discuss next.

Publish your app

Next, you’ll want to publish your app in each of the app stores. This part of the app development might be complicated for people who aren’t devs. An app builder will have to submit both iOS and Android apps to the respective stores for the operating systems.

Pro Tip: When many people create an app, they start with an Android app because the Google Play Store is not as difficult to get into as the Apple App Store.

Market your app

After your app development is complete and approved by the app store, you’ll want to market the app. While Amin is in app development, he is keenly aware of how marketing contributes to creating a successful app.

Amin warned:

[su_quote]Don’t be too married to an idea.[/su_quote]

Use TikTok

The Kadama team markets their mobile app primarily on TikTok, which is what earned them a 30 Under 30 award. Amin explained:

[su_quote]You have to catch [viewers’] attention in three seconds. You have to add a twist that nobody has done before.[/su_quote]

He went on to explain:

[su_quote]Research, post a video on social media that's funny, and get them to download app.[/su_quote]

It’s not without trial and error, though. They wasted a lot of money on ads before figuring out how to go viral. Then they changed their strategy to focus on content creation and only boost the content that had already gone viral. Amin explained:

[su_quote]It gets easier once you get to one million TikTok videos in a month. We started doing five videos a day. We just kept hitting more and more. You see a snowball effect.[/su_quote]

Improve app store optimization

App development teams will have to submit information to the app store. Like other search engines, you can use app store optimization (ASO) to increase your app’s visibility, reach, and conversion rates. Some of the ways you can optimize your mobile app for ASO include:

• Use a descriptive title.
• Use keywords wisely.
• Describe your app well.
• Use high-quality screenshots.
• Add an app preview video.
• Pick the right category.
• Focus on icon design.
• Encourage positive reviews.
• Optimize your app's title and subtitle.
• Add compelling visual elements.
• Update regularly.
• Monitor results.

ASO can cost up to $2,000 per month, and some ASO tools can cost more than $10,000 per year. Check out Velvetech’s reviews of some of the different tools.

Be wary of free trials

Many companies offer free trials, but you need to be wary of them as an app maker. Amin explained:

[su_quote]Free trials take a big hit. Overnight, we lost $30,000 and had to figure out how to [deal with] it. We also discovered that the people who used the promo codes never planned to buy and the people who would buy don’t care about the promo codes. So, we spent $50,000 to $100,000 to learn that.[/su_quote]

This is consistent with my experience using apps. When I test a web app, I make it a point to use the free trials. Because I’m normally testing them to give my opinion on them in a blog, I have no intent of buying them.

An app maker should be looking for ways to identify the parts of their audience that spends money and focus on what is important for them.

Measure performance

When you create an app, you’ll need to monitor both the performance of the app on operating systems and how well it is performing with your target audience.

Depending on mobile devices’ tracking policies, an app maker may be constrained by the amount of tracking allowed.

You’ll want to at least monitor:

• Uptime and downtime: This helps you understand how well app users are able to access your app.
• Number of users: The number of users that are using your app on a daily, monthly, and annual basis are an indication of your reach and where you should focus your marketing efforts.
• User satisfaction: You want to track ratings, churn rate, and user feedback to help you understand whether your app design and business model are landing well with your target audience.
• Revenue: You’ll probably want to track revenue, earnings per user, and number of users who are free versus paying.
• Profit: You’ll need to track the expenses and profit margins.
• Cost of customer acquisition: Measuring the cost to acquire new users is critical because it shows how much you need to make from each app user to become profitable. Amin told us Kadama’s cost of acquisition is $200.

Use data to improve your mobile platform

Your data can be a key component when you develop an app. It can help you find new features and even turn your mobile app from a money pit to a profitable app. Amin explained:

[su_quote]We launched in 2020 and we were profitable in mid-2022. We weren’t profitable, and we had three months of earnings before we would lose funds. We increased the profitability by raising our commissions from 15% to 30%.

I literally called our 200 best-performing tutors and convinced 99 that it would be better because we could invest in features that would make them more money.[/su_quote]

Regularly update the app

Anyone wondering how to make apps might be surprised that when you develop an app, that’s just the beginning of your app-building journey. You should expect to keep building continuously. Some reasons you’ll want to keep building when you create an app include:

• Improving the app’s appearance
• Adding desired features based on user feedback
• Eliminating bugs in the app’s functionality
• Conforming to changes in the operating system and app store policy
• Removing features people don’t value
• Improving cybersecurity

Professional app developers understand all this, but many people new to app development are surprised at how often an app builder needs to update a web app to comply with the Apple and Android app development requirements.

At this point, you know how to create a mobile app, but there are differences in apps created for iOS, Microsoft, and Android devices. Let’s look at some of the differences that affect the entire development process.

How to create mobile apps for iOS and Android

There are two main ways to create an app that will work for both iOS and Android users:

• Cross-platform app: A development team will normally prefer to build in a way that ensures an app functions on both Android and iOS devices. You or your designer or developer will be able to use your coding skills to create the majority of the app, then you’ll need to make modifications for each of the platforms.
• Native app: If you want to learn how to build an app that works perfectly on a certain device, your app development company will need to build a native mobile app. This means you’ll need to create native apps for each of the platforms you want to be on…and it means you’ll be doing more work to create an app.

Let’s look at how to make an iPhone app first.

How to make an iOS app

You’ll want to spend a lot of time on Apple’s developer site when researching how to make iPhone apps. They recommend using the programming language Swift and the software tool Xcode. Check out their tutorials on each to learn how to create an app for iPhone.

Once you’ve completed the app-building process documented in the sections above, you’ll need to:

1. Create a developer account for $99 per year (or $299 for enterprise accounts).
2. Submit your app and all documentation.
3. Wait for approval or change requests.
4. Make any necessary changes to the app.
5. Optimize your app shop listing.
6. Resubmit when you make updates to the app.

You might be wondering how to man an app for iPhone for free. Let’s find out if you can.

How to make an iPhone app for free

Sorry, everyone. Unless you already have a developer account, you can’t get into the Apple app store for free. It’s only $99 per year, but every app builder who wants to include their app design in the iPhone has to pay the fee even if you are building a free app.

Other than that fee, you can build your app for free if you have a server and the coding skills to be an app builder without hiring people.

How to make an Android app

To begin Android development, you’ll need to follow the process below:

1. Download Android Studio.
2. Create a project.
3. Find project files.
4. Update the text.
5. Change the graphics.
6. Add padding.
7. Review the code.

Pro Tip: For a more in-depth walkthrough, learn how to create an app for Android in this tutorial.

After the Android application development is complete, you’ll need to:

1. Go to Google Play Developer Console.
2. Link the developer account with a Google Wallet Merchant Account.
3. Create your application.
4. Apply for an App Store listing.
5. Upload app bundles or APK to Google Play.
6. Wait for content rating.
7. Fix app pricing and distribution.
8. Publish the application.

You can learn more about how to make an app for Android on AppInventiv.

How to make an Android app for free

Like iOS, Android app developers also have to pay to list an app. It’s a $25 one-time fee for each app you add to the Google Play Store. That’s why so many people who start in mobile application development choose to go with Android before building an iPhone app. Just follow the steps in the previous section.

How much does it cost to publish an app on the app stores?

Google Play Store requires a $25 one-time fee, while Apple charges $99 a year for individual app developers or a $299-per-year fee for your development team.

How to validate app ideas

There are numerous ways to validate app ideas. Some ways to validate your app ideas include:

1. Survey your target market to find out what they want.
2. Use wireframes and prototypes to establish whether people like the design of the app.
3. Use the beta testing functions in the app stores to detect bugs.

Pro Tip: Check out some of the best ways of validating ideas.

How long does it take to create an app?

The average time to develop a mobile app is six to nine months. The app design process will vary depending on the programming language, desired features, operating system, and skill of the development team. Expect the mobile app development timeline to look something like this:

• Ideation and validation: 2–3 weeks
• Design and pre-development: 5–7 weeks
• App architecture: 6–7 weeks
• App development: 3–6 months
• Testing: 2 weeks
• Finalization and launch: 1 week

You can use automated testing to improve the time for testing and ensure the code is free of errors. If you’re set on learning mobile app development yourself, know it could take two to three years of training before you are up to the level of an experienced app builder.

Are you ready to build your own app?

We’ve broken down a complex concept by taking inspiration from Kadama’s success. While I, the author, am not a developer, I recommend starting with a no-code app builder to get an understanding of how to develop an app, then when you get stuck, hire an app developer to take your project to the next level.

What’s your app idea, and how do you envision making it profitable?

Do you like physical work and driving around? Maybe starting a junk removal business is right for you.

Kyle Landwehr started Slam Dunkin Junk and The Junk Academy three years ago. Now he’s making $200K to $300K every month to haul away junk—and teach people how to start a junk removal business of their own.

[su_note note_color="#dbeafc"] With advice from Kyle, we’ll answer the questions about starting a junk removal business below. Click on any link to learn more, or just continue reading.

• What is a junk removal business?
• How to start a junk removal business
  • Step 1. Learn about the junk removal industry
  • Step 2. Create a junk removal business plan
  • Step 3. Build a junk removal brand
  • Step 4. Register your junk removal business
  • Step 5. Get a junk removal business license
  • Step 6. Get a business bank account and insurance
  • Step 7. Create a junk removal price sheet
  • Step 8. Get junk removal equipment
  • Step 9. Market your junk removal business
  • Step 10. Remove junk from home or business
  • Step 11. Expand your junk removal company
• Junk removal business FAQ
• Go start your own junk removal business [/su_note]

What is a junk removal business?

A junk removal business focuses on removing unwanted furniture, appliances, and other items from residences and businesses. It also includes garbage collection, and you may hear it referred to as the waste removal industry.

It’s physical work, and it’s possible to injure yourself. Kyle shared:

[su_quote]I was making $30K to $40K monthly when I broke my ankle stepping off the truck. Breaking my foot is what caused me to start hiring employees and [scale] my business to what it is now.[/su_quote]

He also explained that his injury got him into real estate. Listen to the interview below to find out how:

How to start a junk removal business

1. Learn about the junk removal industry.
2. Create a junk removal business plan.
3. Build a junk removal brand.
4. Register your junk removal business.
5. Get a junk removal business license.
6. Get a business bank account and insurance.
7. Create a junk removal price sheet.
8. Get junk removal equipment.
9. Market your junk removal business.
10. Remove junk.
11. Expand your junk removal company.

Step 1. Learn about the junk removal industry

You should understand the junk removal industry before you enter it. Some of the important questions you should ask before you start a junk removal company include:

• How much does it cost to start a junk removal business?
• How much do junk removal companies make?
• Is the junk removal business profitable?

How much does it cost to start a junk removal business?

The amount of money you need to start a junk removal business will depend on the business’s location (due to cost of living) and the materials you already own.

The items you’ll need to start a junk removal business include:

• A truck: $1,000 to $90,000
• Limited liability company (LLC): Under $1,000
• Business license: Under $1,000
• Business insurance: $1,000 to $10,000
• Dolly: $200
• Trash bags: $25
• Reciprocating saw: $300
• Safety equipment: $100
• Website: $1,200 per year

That means you can start a junk removal business for as little as $4,325 or as much as $102,325. Kyle told us:

[su_quote]If you have a truck, expect to spend around $6,000 starting your business. If you want to know how to start a junk removal business with no money, promote it on Facebook groups during the week and rent a U-Haul on the weekend. That will cost you $40 per day, plus $1.30 per mile.[/su_quote]

How much do junk removal companies make?

According to IBISWorld, there are 8,607 companies in the junk removal industry. They make a combined $73.7B, or $8.6M each. Kyle told us he makes $200K to $300K a month as a junk removal company owner.

Is the junk removal business profitable?

Yes. The gross profit margin is 32.74%, while the junk removal profit margins come out to 7.29% after after taxes, bonuses, and all other costs. This is based on data from 62 publicly held companies.

Kyle told us:

[su_quote]The gross profit margin the first year was around 50% margin, [the] following year 30% to 35% margin, and the third year I hired an operations manager, which took the margin down to 20%, but now I don’t have to be involved in the business.[/su_quote]

How much is a junk removal owner's salary?

The salary for working as an operations manager is around $75,000 annually for waste removal companies. This is nearly $18,000 less than other operations managers. When you run an S-Corp, you will need to use that as your wages and any profit you can pay as dividends.

Step 2. Create a junk removal business plan

For your company to be a profitable business, make sure to write a business plan.

You’ll want to include:

• Your mission and vision
• Ways you’ll make money
• Your target market
• How you will market the business

Check out our interview with Mike Andes to learn how to write a business plan. You can refer to our business plan writing guide as well.

Step 3. Build a junk removal brand

Kyle told us:

[su_quote]My smartest business move was building my plan.[/su_quote]

A distinctive and memorable brand for your service-based business sets you apart from competitors and establishes a reputation for your enterprise. Your brand relies on two main elements: your business name and logo.

First, select a junk removal business name that draws in customers and conveys a strong message about your services. Make sure it’s not already taken in your service area and online.

Next, craft a logo for your junk removal service. You have the option to hire a designer for assistance, or you can create one yourself using an online logo creator such as Canva.

Step 4. Register your junk removal business

You’ll want to register your business with your state. Kyle and most other business owners recommend structuring your business as an LLC, but there are plenty of other structures. Learn more about the business registration requirements and process in our business registration guide.

The cost of registering on the Secretary of State website varies from state to state. To give you an idea of the cost, Kyle said he paid $300 for his LLC in St. Louis.

You’ll also need an Employer Identification Number from the IRS.

Step 5. Get a junk removal business license

A junk removal business may need local or county licenses. Check with your local government’s business office to see what is required in your state.

What license do I need to start a junk removal business?

You may need special licenses and permits for waste removal if you collect hazardous waste or do construction tasks like demolition (which Kyle offers in addition to junk removal services). He also told us:

[su_quote]You could also offer dumpsters for people [which requires licenses].[/su_quote]

Your local business office will be able to help you establish what business licenses you need.

Step 6. Get a business bank account and insurance

A junk removal business needs a small business bank account before it offers junk removal services. The business bank account should have low fees and high interest rates on savings accounts. Keeping your finances separate will be helpful when tax season arrives.

You’ll also need junk removal business insurance. A junk removal company will need commercial auto insurance and general liability insurance at a minimum, but you might want more extensive business insurance, like a business owner's policy (BOP). Learn more in our business insurance guide.

A BOP covers general liability, property damage, and unexpected shutdowns, plus has riders for other policies. We suggest contacting Simply Business to get quotes from multiple insurance companies.

For added financial management, consider enlisting the services of a bookkeeper or accountant. They can oversee business income and expenditures, handle bills and payroll, generate and dispatch invoices, and maintain the financial health of your business.

Step 7. Create a junk removal price sheet

Getting paid for removing junk is nice, but junk removal business owners need to make a profit. That means you need to cover your labor, materials, and overhead costs. To achieve this, it's essential to develop a pricing strategy for your waste removal business:

• Decide how to charge customers: You might want to have standardized prices for time, weight, and volume (like by the cubic foot). Creating all three will help you establish which way makes the most sense for each job.
• Research competition pricing: You don’t want your services to be overpriced or underpriced because both scenarios will hurt your earning potential
• Include overhead: Add all the expenses that are not directly applied to a job, then divide them by the number of billable hours (160 per person, per month). Add this rate to every hour of labor.
• Additional time and materials: You’ll need to cover time driving, disposal fees, taxes, and your profit margin. In general, junk removal services should assume each job will be at least two hours between driving, pickup, and disposal.

Once you've established your junk removal business pricing, you’ll want to create a junk removal price sheet.

Step 8. Get junk removal equipment

Junk removal businesses need a variety of tools, equipment, and software to run successfully.

We’ve got you covered! Get all the supplies you need as a junk removal business owner from the UpFlip Junk Removal Store, or check out the list of tools you need for junk removal jobs below.

What do I need to start a junk removal business?

Junk removal businesses need the following:

• Pickup truck or box truck: You’ll need a vehicle to transport junk. This will be the largest of the business expenses, but Kyle says when you’re first getting started you can just rent a U-Haul.
• 3-in-1 Dolly: A successful junk removal business will need a dolly that converts to a cart. Kyle told us they have a 1,000-pound capacity dolly.
• Safety equipment: Depending on what you do in your junk removal business, you’ll need work gloves, work boots, safety goggles, and hard hats.
• Trash bags and bins: Load small things into these to simplify the process once you get to the dump or recycling yard.
• Reciprocating saw: Being able to saw items into smaller pieces comes in handy if you are recycling air conditioners because wires, copper, steel, compressors, and motors all have different values. Don’t forget blades and extension cords.

Author’s Note: Hauling away a ton (2,000 pounds) of air conditioners can make you around $2,000, based on my time working in HVAC.

You might want other tools including:

• 16-ounce claw hammer
• Construction broom
• Crowbar
• Forearm forklift
• Large trash bins
• Laundry cart
• Long cut snips
• Moving blankets
• Orange vehicle flag
• Packing tape
• Rake
• Screwdriver set
• Shovel
• Sledgehammer
• Tarps
• Utility cart
• Wrench set

Next, find out how to market your junk disposal company.

Step 9. Market your junk removal business

When you start a junk removal business, you’ll need to build a name for yourself. To market yourself, you should:

1. Post on social media.
2. Find junk removal leads.
3. Use junk removal software.
4. Quote prices.

Post on social media

Social media is a powerhouse for all forms of service businesses. Kyle told us:

[su_quote]I went all in on social media, specifically Facebook. You used to have to go to businesses to network, but I can get way more leads from social.[/su_quote]

Junk removal businesses should:

1. Set up a Facebook business profile.
2. Get their friends and family to like the Facebook page and share it.
3. Post pictures of work they do from each junk removal job.
4. Join local Facebook groups and network with potential customers.
5. Create automated FAQs on Facebook Messenger.
6. Keep posting regularly.

Kyle also explained that Instagram is better for marketing his junk removal coaching business.

Find junk removal leads

You’ll need to find customers who need junk disposal services. There are a lot of ways to help people find you when they need help. Kyle discussed where you can find potential customers:

[su_quote]Social media, Google (both search and local ads), flyers, door knocking, and Yelp are all good places to find leads.[/su_quote]

Use junk removal business software

Business software is necessary to help potential customers find your business and manage all the jobs.

The main requirements you are looking for in software include a website, email and text automation, quotes, invoicing, and a customer relationship management system.

Many junk removal businesses use either Jobber or Housecall Pro, which offer all of the services above. Based on testing both for blogs, I like Housecall Pro’s functionality better.

Quote prices

Once you have gotten leads, Kyle said that you’ll want to go to the person’s residence or business location so you can see the extent of the junk haul-off. There, you’ll examine what you need to remove and provide an estimate. If you’re in the junk removal truck, you might even be able to haul the junk immediately.

You should also provide a business card so they can contact you if they don’t want the junk removed immediately.

In addition to offering home and office junk removal, Kyle suggested the following services:

[su_quote]You can also offer house flipping, dumpster rentals, and demolition.[/su_quote]

Step 10. Remove junk from home or business

When it’s time to collect the junk, you’ll go to the customer’s location and put it in the truck or scrap trailer. Removal time will depend on the number of items, ease of getting to them, and other tasks you need to do.

When you are done, you’ll want to get paid for junk removal. You might also want to provide junk removal business cards because the waste removal industry doesn’t get much repeat business, but business cards could help you get referrals.

Finally, you’ll take the junk to the dump, a recycling yard, or somewhere that you can repair it. When there are things you can recycle or repair, you can commonly make some extra money when you have slow periods.

Step 11. Expand your junk removal company

When you start a junk removal company, you’ll want to find ways to expand it. Kyle told us:

[su_quote]Focus on perfecting one thing, but be open to expanding to other services. In my case, it led to house flipping and coaching.[/su_quote]

You could recycle or repair appliances to make extra money, too. As your business grows, you could also franchise your business to help other people get started quicker.

Find employees

Kyle explained:

[su_quote]Lots of people thought I was all talk, but once I started a lot of my friends wanted to become junk removers.[/su_quote]

If you don’t want to work with friends, learn about hiring employees from a recruiter.

Systemize everything

Establishing and documenting systems and policies for your business can make it run smoother, even in your absence.

Junk removal business FAQ

How much is junk removal for customers?

Junk removal pros normally charge a minimum pickup fee of $50 to $150, and larger jobs may cost a minimum of $100 to $450. If customers rent dumpsters, those may cost $30 to $285 per day.

Can I buy a junk removal franchise?

Yes, you can buy a junk removal franchise. Some of the common junk removal franchises are:

• 1-800-Got-Junk?: The most famous commercial junk removal company hauls away all kinds of junk.
• College HUNKS Hauling Junk & Moving: Starting a junk removal business with College HUNKS means you’ll provide moving and junk removal services.
• Bin There Dump That: This hauling junk business brings dumpsters to people’s homes, then hauls it afterward. Learn more.
• Junk Removal Authority (JRA): The JRA offers the equivalent of franchise support without royalty fees.
• JDog Junk Removal & Hauling: JDog focuses on helping veterans start waste removal companies. They also donate or recycle over 60% of junk.
• The Junkluggers: Junkluggers franchises offer same-day and next-day junk and trash removal.

Learn about other junk collector franchises.

Go start your own junk removal business

Whether you want to start a junk removal side hustle, buy a franchise, or start your own business, we’ve covered every aspect of entering the junk removal business as an entrepreneur.

It’s up to you to get started. What kind of junk removal will you do?