Averagely, with as low as $25,000 or even lower, you should be able to start a small-scale garbage collection business especially if you will be operating the business with just a garbage collection truck, and 2 or 3 employees. A garbage collection business usually does not attract huge startup capital especially if the owner of the business wants to start small and then grow the business.
A garbage collection business is a niche idea in the cleaning and janitorial services industry that involves the collection of garbage from different locations with the aim of maintaining cleanliness, hygiene, and sustainability in communities by efficiently managing waste.
So, if you are looking to start a garbage collection business, you should first acquire the required experience, and exposure before drawing an estimate of what it will cost you to start the business. Actually, it won’t cost you much to start a garbage collection business.
Please note that there are key factors that can determine the total budget of starting a garbage collection business and that is what we will discuss in this article.
7 Factors That Influence the Cost of Opening a Garbage Collection Business
-
Your Choice of Location
When it comes to starting any business, one of the major factors that will influence the cost of starting the business is your choice of location. The truth is that the location of a business will determine how much you will spend on rent or lease, acquiring licenses and permits, utilities, and every other cost associated with locations.
-
The Cost of Licensing and Permits
Another factor that will influence the cost of starting a garbage collection business is the cost of acquiring all the needed licenses and permits.
Basically, you should make plans to apply for Business License, Waste Management Permit, Hazardous Waste Transporter License (if handling hazardous waste), Commercial Driver’s License (for drivers of collection vehicles), Environmental Protection Agency (EPA) Registration, Department of Transportation (DOT) Registration (if transporting waste),
Occupational Safety and Health Administration (OSHA) Compliance, State-Specific Waste Disposal Certifications, Health Department Approval, and Recycling Facility License (if providing recycling services).
In case you are not sure of the required licensing permits to start a garbage collection business in your city, then you should check with your local government or regulatory agencies. Please note that costs for these licenses and permits can vary.
-
The Cost of Insurance Policy Cover
Another cost that will influence the overall cost of starting a garbage collection business is the cost of acquiring the needed insurance policy cover for the business. Garbage collection businesses typically require vehicle insurance, liability insurance, and workers’ compensation insurance to protect against potential risks and liabilities.
Please note that the cost of insurance policy coverage will depend on factors such as the size of your business and the coverage limits you choose.
-
The Cost of Equipment and Supplies
The cost of equipment and supplies is yet another major cost that can influence the overall cost of starting a garbage collection business. You should make provision for equipment and supplies like; personal protective equipment (PPE), cleaning agents, disinfectants, waste disposal containers, and specialized cleaning tools.
As expected, the amount you are to spend on equipment and supplies will depend on the size of your business, and the garbage collection projects you are handling per time.
-
The Cost of Purchasing Garbage Collection Trucks
Another major cost that will determine the cost of starting a garbage collection business is the cost of purchasing and maintaining your garbage collection trucks. Please note that depending on the size and location of your garbage collection business, you may need different sizes and types of garbage collection trucks.
It is important to note that the cost of a suitable garbage collection truck will depend on your preferences and also your decision to settle for an outright purchase or lease.
-
The Cost of Marketing and Advertising the Garbage Collection Business
If you have plans to start a garbage collection business, then you should do all that it takes to secure garbage collection contracts. Promoting your garbage collection business through marketing and advertising efforts is essential to attract clients.
Even though there are no specific costs attached to marketing and advertising a business, the bottom line is that if you want to launch a business that will win a fair share of the available market share in your location, then you must be ready to invest a significant amount to promote your business.
-
Operational Expenses
Lastly, another cost that can influence the overall cost of starting a garbage collection business is the amount you are expected to spend on operational expenses.
For a garbage collection business, you should budget for fees for disposing of waste at appropriate disposal facilities such as landfills, recycling centers, and composting sites, costs associated with sorting, processing, and recycling waste materials, costs associated with ensuring compliance with environmental regulations, safety standards, and waste disposal requirements, etc.
In conclusion,
All the factors listed above, and some other factors not listed above, are factors that can influence the overall cost of starting a garbage collection business. However, it is important to state that there is no specific amount required to start a garbage collection business. The cost of starting a garbage collection business is at the discretion of the entrepreneur.