Want to make $200K monthly while driving around and hauling junk? We’ll show you how to start a successful junk removal business from scratch.

We’ll dive into the exact steps Kyle Landwehr used to start Slam Dunkin’ Junk with just $6K. Today, he’s making $2.5M annually.

We’ll share the strategies Kyle used to start junk hauling and how he knew it was time to take his business to the next level. Get ready to learn how to start, grow, and scale your junk hauling services.

Keep reading or click on any of the links below to jump to that section:

What is a junk removal business?

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

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

That’s how Slam Dunkin’ Junk went from a solopreneurship to hiring employees and investing in real estate. Listen to the interview below to find out more:

Learn About the Junk Removal Industry

You should understand the junk removal industry before you enter it. Here’s a brief overview of the larger waste management industry:

17 million Avg annual revenue

7.3% Avg profit margin

1% Projected market growth

$77.1 billion Market size

There are also some important questions you should ask before you start a junk removal company. Let’s talk about each in greater detail.

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

The amount of money you need to start a junk removal business depends on your 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: $1K to $90K
• Limited liability company (LLC): Under $1K
• Business license: Under $1K
• Business insurance: $1K to $10K
• Dolly: $200
• Trash bags: $25
• Reciprocating saw: $300
• Safety equipment: $100
• Website: $1.2K 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:

How much do junk removal companies make?

According to IBISWorld, there are 8,607 companies in the junk removal and waste industries. They make a combined $73.7 billion. Kyle told us he earns $200K to $300K a month as a junk removal company owner.

Is the junk removal business profitable?

Yes. The gross profit margin is 32.7%. After taxes and other costs, junk removal profit margins come out to 7.3%. This is based on data from 62 publicly held companies.

Kyle told us:

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.

How to Start a Junk Removal Business

Starting a junk removal business follows this general process:

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

Step #1. Create a Junk Removal Business Plan

If you want 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’ll market the business

Check out our interview with Mike Andes to learn how to write a business plan:

You can also refer to our business plan writing guide.

Step #2. Build a Junk Removal Brand

Kyle told us:

Creating a distinctive and memorable brand for your service-based business sets you apart from competitors and helps you establish a reputation. 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. For inspiration, use our business name generator.

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 #3. 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 business registration requirements in our business registration guide.

The cost of registering on the secretary of state’s 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, MO. You’ll also need an employer identification number from the IRS.

Depending on your area, a junk removal business may need local or county licenses. Check with your local government’s business office to see what’s 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).

OSHA governs some of the policies about junk removal, and compliance can add additional costs. Make sure you understand those before offering specific services. He also told us:

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

Step #4. Get a Business Bank Account and Insurance

Your junk removal business will need a small business bank account before you offer junk removal services. Your 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. However, you might want more extensive business insurance like a business owner’s policy (BOP).

A BOP covers general liability, property damage, and unexpected shutdowns. It also has riders for other policies. Learn more in our business insurance guide.

When you’re ready to take out a policy, 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 handle bills and payroll, generate and dispatch invoices, and maintain the financial health of your business.

Step #5. 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:

• Set prices: You might want standardized prices for time, weight, and volume (like by the cubic foot). Creating all three will help you establish which makes the most sense for each job.
• Research competitors: You don’t want your services to be overpriced or underpriced. Both scenarios will hurt your earning potential.
• Include overhead: Add all the expenses that aren’t directly applied to a job, then divide them by the number of billable hours (roughly 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 #6. 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 at least the following essentials:

• Pickup truck or box truck: You’ll need a vehicle to transport junk. This will be the largest of your business expenses, but Kyle says you can just rent a U-Haul when you’re first getting started.
• 3-in-1 dolly: A successful junk removal business will need a dolly that converts to a cart. Kyle told us they have a dolly with a 1,000-pound capacity.
• 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 bags and bins 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’re recycling items like air conditioners. Wires, copper, steel, compressors, and motors all have different values. Don’t forget blades and extension cords.

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

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
• Rakes
• Screwdriver set
• Shovels
• Sledgehammer
• Tarps
• Wrench set

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

Step #7. 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:

• Post on social media.
• Find junk removal leads.
• Use junk removal software.
• Quote prices.

Post on Social Media

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

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 an automated FAQ 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:

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 and email and text automation. It should also support quotes, invoicing, and customer relationship management.

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 that 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 a junk removal truck, you might even be able to haul the junk immediately.

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

Step #8. 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 distribute your junk removal business cards even at one-time jobs. 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. If there are things you can recycle or repair, you can commonly make some extra money when you have slow periods.

You don’t have to run your junk removal business as a full-time job. Find out how Osvaldo Rocha started a side gig removing junk that makes $23K per month:

Step #9. Expand Your Junk Removal Company

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

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

Find Employees

Kyle explained:

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. 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?: This is the most famous commercial junk removal company. These franchises haul away all kinds of junk.
• College HUNKS: 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 them afterward.
• Junk Removal Authority: 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.

Are you ready to start offering junk removal services?

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?