Junk Removal Business Plan [Sample Template]

Are you about starting a junk removal company? If YES, here is a detailed sample junk removal business plan template & FREE feasibility report.

Junk removal business is one of the business opportunities available in the Waste Management sector that an entrepreneur can start in the United States of America. The truth is that if you settle for this business, you are sure of making huge returns from your investment.

This is so because junks which can be classified as domestic waste, are generated on a daily basis and of course reliable statistics shows that the waste collection industry in the united states of America rakes in about billion dollars annually.

If you are sure that this type of business is what you want to do after you must have conducted your market research and feasibility studies, then the next step to follow is to write a good business plan; a detailed blue print of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your services.

Below is a sample junk removal company business plan template that will help you successfully write yours without much stress.

A Sample Junk Removal Business Plan Template

1. Industry Overview

Junk removal is a business that assists with the decluttering process. It is different from regular garbage collection. Junk Removal business is grouped under the waste collection services industry and companies that operate in the industry collect hazardous and nonhazardous waste and recyclable materials.

Nonhazardous waste includes municipal solid waste (household waste or junks) and industrial and commercial waste. Transfer stations where waste is transferred from local vehicles to long-distance automobiles for transport to disposal facilities are also included in the waste management industry. It is important to state that this industry does not account for government-provided services of a similar nature.

A close study of the Waste Collection industry shows that it has benefited from the recovery of the industrial, construction and commercial business sectors. As these sectors expand, it is natural for them to produce more waste. So also, steady demand from the residential market has helped stabilize the overall revenue generated by the waste collection services industry.

Going forward, the demand for waste collection services will continue to be driven by population growth, privatization and business creation. Additionally, the industry will benefit from the public’s growing interest in the recycling industry.

The companies holding the largest market share in Waste Collection in the US include Waste Management Inc., Republic Services Inc. and Waste Connections Inc. Statistics has it that in the United States of America alone, there are about 11,824 licensed and registered waste collection companies responsible for employing about 217,713 employees.

The industry rakes in $45 billion annually (benched mark in 2018) with an annual growth rate projected at 1.7 percent within 2013 and 2018.

A recent report published by IBISWORLD shows that the distribution of establishments in the industry across the United States largely reflects the size and distribution of the US population and economic activity. Densely populated areas that are particularly economically active tend to generate large quantities of waste, necessitating the presence of greater numbers of industry establishments.

Other factors that contribute to the relative concentration of industry establishments in a geographic location include the structure of the local economy and the commitment to and level of recycling. Some industries, particularly in the service sector, generate relatively little waste.

One good thing about the industry is that it is open for both big time investors who have the capacity to start the business with fleet of junk collection trucks and aspiring entrepreneurs who may want to start with just one truck.

2. Executive Summary

Tim Smith® Junk Removal, Inc. is a registered and licensed junk removal company that will be based in Delaware City – Delaware. We have been able to secure all the relevant licenses and permits to operate as a standard junk removal company in the United States.

We will ensure that we abide by the rules and regulations guiding the industry and we will only hire experienced and qualified drivers with valid commercial driver’s license (CDL) to handle our junk collection trucks. Our services will include general junk collection and hauling, recyclable junk collection and hauling, junk transfer station operation, etc. We will provide daily services all around Delaware City – Delaware and neighboring cities.

Our customers can be rest assured that they will get quality services at competitive rates. At Tim Smith® Junk Removal, Inc. our goal is to provide excellent service to our customers and we pride ourselves on the integrity and competence of our company and employees.

Tim Smith® Junk Removal, Inc. will ensure that all our junk pick-ups are on time and we supersede the expectation of our customers. We will only put trucks that are in top shape on the road, and all our cleaners and drivers will be trained to be extra careful, pay attention to details, be courteous, friendly and to abide by the rules and regulations of the industry.

We will take proper care of our cleaners and drivers as well as our trucks and equipment. We are quite optimistic that our values and quality of service offering will help us drive our junk removal business to enviable heights and also help us attract the number clients that will make the business highly profitable.

Our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Tim Smith® Junk Removal, Inc. is owned by Tim Smith and his immediate family members. Tim Smith, a native of Delaware City is a graduate of Business Administration from the University of Delaware and he has an MBA in Finance from the University of Tulsa. He has over 22 years’ experience in the waste management industry.

3. Our Products and Services

Tim Smith® Junk Removal, Inc. is established with the aim of maximizing profits in the waste collection industry. We want to compete favorably with leading junk removal companies in the United States which is why we have put in place a competent quality assurance team that will ensure that every service carried out meets and even surpasses our customers’ expectations.

Our service offerings are listed below;

• Reusable junk removal (items that can be sold by consignment and thrift stores)
• Recyclable junk material collection and hauling
• Removal and hauling of rubble, construction and demolition debris
• Waste transfer station operation

4. Our Mission and Vision Statement

• Our Vision is to build a business that will take care of junk removal for major residential estates and other businesses in the whole of Delaware City – Delaware and neighboring cities.
• Our mission is to deploy professional and environmentally friendly ways of junk removal in inner cities; we want to become a standard of how junk removal companies should operate in the United States of America.

Our Business Structure

We intend starting the business with a handful of full – time employees (waste truck drivers, professional junk removers and back office staff) and some of the available driving roles will be handled by qualified contract drivers. Adequate provision and competitive packages have been prepared for all our employees.

At Tim Smith® Junk Removal, Inc. we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company.

For now, we will contract the maintenance of our trucks to service providers, we don’t intend to maintain a very large overhead from the onset. But as soon as the business grows and stabilizes, we will assemble our own in-house maintenance team. Below is the business structure and the roles that will be available at Tim Smith® Junk Removal, Inc.;

• Chief Operating Officer (Owner)
• Admin and HR Manager
• Transport and Logistics Manager
• Marketing and Sales Executive (Business Developer)
• Accountant
• Junk Collectors
• Waste Truck Drivers
• Customer Services Executive / Front Desk Officer

5. Job Roles and Responsibilities

Chief Operating Officer (Owner):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Transport and Logistics Manager

• Accountable for coordinating drivers, vehicles, loads and journeys
• Responsible for operating IT systems
• Responsible for negotiating and agreeing contracts
• Responsible for preparing paperwork for regulatory bodies
• In charge for implementing health and safety standards
• In charge of planning routes and load scheduling for multi-drop deliveries.
• Communicates effectively with clients and responding to their requirements.
• Responsible for monitoring transport costs.
• Confronts climate change issues by implementing transport strategies and monitoring an organization’s carbon footprint.

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carrie out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities.

Marketing and Sales Executives (Business Developers)

• Identifies, prioritizes, and reaches out to new clients, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts
• Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Documents all customer contact and information
• Helps to increase sales and growth for Tim Smith® Junk Removal, Inc.

Accountant

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managers with financial analyses, development budgets, and accounting reports
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Accountable for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Waste Truck Drivers

• Assists in loading and unloading junks
• Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
• Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment, such as hazardous material placards.
• Assists the transport and logistics manager in planning their route according to a pick – up and delivery schedule.
• Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
• Reports defects, accidents or violations

Junk Collectors and Cleaners

• Responsible for handling core services such as, reusable junk collection and hauling, recyclable junk material collection and hauling, removal and hauling of rubble, construction and demolition debris, junk transfer station operation, and hauling amongst other related services
• Handles any other duty as assigned by the transport and logistics manager

Customer Service Officer

• Welcome clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the HR manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to potential clients when they make enquiries
• Receives parcels/documents for the company
• Distributes mails in the organization
• Handles any other duties as assigned by the human resources and admin manager.

6. SWOT Analysis

As a result of our vision, our mission and the kind of business we want to set up, we don’t have any other option than to follow due process. Following due process involves hiring a business consultant to help us conduct SWOT analysis for our business.

Tim Smith® Junk Removal, Inc. hired the services of a seasoned business consultant with bias in startups in the U.S. to help us conduct a thorough SWOT analysis and to guide us in formulating other business strategies that will help us grow our business.

Here is a summary from the result of the SWOT analysis that was conducted on behalf of Tim Smith® Junk Removal, Inc.

• Strength:

Our junk collection network serves some of the largest population centers in Delaware City – Delaware. Size advantages, cost advantages, customer loyalty and strong reputation amongst domestic and industry players are what we can boast of.

Our business is centrally located in a densely populated residential estate in Delaware City – Delaware; our location is in fact one of our major strength. We are also not neglecting the power of our team; our workforce and management.

• Weakness:

Looking through our Business model, one of the weaknesses that may pose a challenge to us is insufficient flow of finance to handle key issues such as purchase of brand – new waste collection trucks and promotion of the business.

• Opportunities:

Come to think of it, there is no household, construction sites, business complex or shopping malls that does not generate waste from time to time which means that a junk removal company will always be in business as long as people live in the location that they operate in.

• Threat:

Some of the threats that we are likely going to face are mature markets, stiff competition, volatile costs, and rising fuel prices. Other threats that are likely going to confront Tim Smith® Junk Removal, Inc. are unfavorable government policies, seasonal fluctuations, downturn in the economy which is likely going to affect consumer spending and of course emergence of new competitors within the same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

One interesting part of this industry is that recycling is becoming much more common. Though the concept of recycling dates back centuries, it wasn’t prevalent until recently. In 1960, the United States recycled 5.6 tons of waste—6.4 percent of the country’s total litter. By 2013, the number was up to 87.2 tons, or 34.3 percent of the whole.

Latest trends show that the Waste Collection industry has benefited from the recovery of the industrial, construction and commercial business sectors. As these sectors expand, it is natural for them to produce more waste. So also, steady demand from the residential market has helped stabilize the overall revenue generated by the waste collection industry.

Going forward, the demand for junk removal services will continue to be driven by population growth, privatization and business creation. Additionally, the industry will benefit from the public’s growing interest in the recycling industry.

Fuel is one of the primary input costs for this industry, as it is used to power the trucks. Therefore, higher fuel prices increase industry costs. The price of diesel and other fossil fuels used to power waste collection vehicles is expected to increase going forward, which presents a potential threat for the industry.

8. Our Target Market

Prior to launching our junk removal company, we are certain that there is a wide range of households and businesses who cannot successfully dispose their junks without hiring the services of a junk removal company. We will ensure that we develop strategic pacts with corporate organizations, and estate managers et al. This will give us several options to generate revenue for our company.

In view of that, we have created strategies that will enable us reach out to various construction companies, business complexes, shopping malls and households who we know can’t afford to do without our services. We have conducted our market research and survey and we will ensure that all our services are accepted in the market place. Below is a list of the people and organizations that we will market our services to;

• Residential buildings
• Business complexes
• Shopping malls
• Hotels
• Restaurants
• Schools
• Public facilities
• Construction sites
• Farmers
• Printing Companies
• Hospitals

Our Competitive Advantage

Our major competitive advantage is the vast industry experience and solid reputation of our owner, Tim Smith and our management team. Tim Smith® Junk Removal, Inc. no doubt is a new junk removal company, which is why we took our time to do a thorough homework before launching the business.

We were able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are trust, honesty, good junk removal network, excellent relationship management, strong management, strong fleet operation, our junk collection and transportation network, our size advantages, cost advantages, customer loyalty and strong reputation amongst domestic industry players.

To sum up, all our employees will be well taken care of, and their welfare package will be among the best within our category. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

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Sources of Income

Tim Smith® Junk Removal, Inc. will make sure that we leverage on our strength and the opportunities available to us in the U.S. market to generate enough income that will help us drive the business to stability. Below are the sources we intend exploring to generate income for Tim Smith® Junk Removal, Inc.;

• Reusable junk removal (items that can be sold by consignment and thrift stores)
• Recyclable junk material collection and hauling
• Removal and hauling of construction and demolition debris
• Waste transfer station operation

10. Sales Forecast

We are well positioned to take on the available market in Delaware City – Delaware and we are quite optimistic that we will meet our set target of generating enough income/profits from the first month or operation and grow the business and clientele beyond Delaware City.

We have been able to examine the waste collection services industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projection for Tim Smith® Junk Removal, Inc., it is based on the location of our business and our competitive advantage;

• First Fiscal Year (FY1): $230,000
• Second Fiscal Year (FY2): $470,000
• Third Fiscal Year (FY3): $725,000

• Marketing Strategy and Sales Strategy

The marketing strategy adopted by Tim Smith® Junk Removal, Inc. is going to be driven by professionalism, excellent customer service, honesty and quality service delivery. We will ensure that we build a loyal customer base. We want to drive sales via the output of our jobs and via referral from our satisfied customers.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be equipped to meet their targets and the overall goal of Tim Smith® Junk Removal, Inc.

Our goal is to grow Tim Smith® Junk Removal, Inc. to become the leading junk removal company in Delaware City – Delaware which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with in the waste collection services industry. Tim Smith® Junk Removal, Inc. is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our junk removal and management business by sending introductory letters alongside our brochure to construction companies, shopping malls, hotels, residential estates and other key stake holders in Delaware City – Delaware
• Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
• Use friends and family to spread word about our business
• Post information about our company and the services we offer on bulletin boards in places like schools, libraries, and local coffee shops et al
• Place a small or classified advertisement in the newspaper, or local publication about our company and the services we offer
• Leverage on referral networks such as agencies that will attract clients who would need our customized services
• Advertise our junk removal and management company in relevant magazines, newspapers, TV and radio stations
• Attend relevant expos, seminars, and business fairs et al to market our services
• Engage in direct marketing approach
• Join local chambers of commerce and industry to market our services.

N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

11. Publicity and Advertising Strategy

We have plans to grow our business beyond Delaware City – Delaware which is why we have perfected plans to build our brand via every available means. We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

Below are the platforms Tim Smith® Junk Removal, Inc. intended leveraging on to promote and advertise the business;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community – based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our services
• Install our Billboards in strategic locations all around Delaware City – Delaware
• Distribute our fliers and handbills in target areas
• List our company in local directories / yellow pages
• Advertise our company in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our waste collection trucks are well branded with our company logo et al.

12. Our Pricing Strategy

There are two fees that most junk removal services charge. The first one is either for the type or the size of the junk. The other is for the number of truckloads or for the time it takes to haul the junk. In addition to this, you can expect there to be some additional charges. For example, fees for delivering waste to its proper space. The reason for this is that some items need to be delivered in a special way and cannot be left in landfills.

On average, when removing junk from a single – family home, the cost is likely to be about $200. When it comes to junk removal from an apartment, the cost is around $250. The professional companies can also offer junk removal rates for a business, which are about $400.

This service usually costs from $10 to $40 a month or $140 to $250 on an annual basis. Bear in mind that these are only average prices Tim Smith® Junk Removal, Inc. has a lease arrangement with various companies and the company’s pricing is based on miles per thousands of tons of junks collected and transported.

We have perfected our plans to charge competitive rates since we have minimal overhead compared to our competition in the industry. We will ensure that we leverage on price to win over customers; our prices will be affordable and negotiable.

The fact that our business door is open to both households and businesses means that we will have different price range for different category of clients. As the business grows, we will continue to review our pricing system to accommodate a wide range of clientele.

• Payment Options

The payment policy adopted by Tim Smith® Junk Removal, Inc. LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Tim Smith® Junk Removal, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via online bank transfer
• Payment via mobile money
• Payment via Point of Sales Machines (POS Machines)
• Payment via check

In view of the above, we have chosen banking platforms that will enable our client make payment for junk removal and management services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

When it comes to starting a standard junk removal business, one is expected to spend the bulk of the startup capital on the purchase of waste collection trucks. Aside from that, you are expected to pay the required fee in dump sites, pay your employees and utility bills.

However, this is what it would cost us to start Tim Smith® Junk Removal, Inc. in the United of America;

• The total fee for incorporating the business in the United States of America – $750.
• The budget for liability insurance, permits and license – $15,500
• The amount needed to acquire a suitable office facility with enough parking space for our waste collection trucks in Delaware City for 6 months (Re – Construction of the facility inclusive) – $150,000.
• The amount required to finance the purchase of the first set of waste collection trucks – $150,000
• The cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al): $5,000
• The cost for accounting software, CRM software and Payroll Software – $3,000
• Other start-up expenses including stationery – $1000
• Phone and Utilities (gas, sewer, water and electric) deposits – ($3,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $120,000
• The cost for launching our official website – $600
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500

Going by the report from the market research and feasibility studies conducted, we will need about four hundred and fifty thousand (450,000) U.S. dollars to successfully set up a medium scale but standard junk removal company in the United States of America.

Generating Funds/Startup Capital for Tim Smith® Junk Removal, Inc.

Tim Smith® Junk Removal, Inc. is set to start as a private business that will be solely owned by Mr. Tim Smith and his immediate family members. He will be the sole financier of the company but may likely welcome other business partners when need for expansion arises.

These are the areas we intend generating our startup capital for our business;

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from the bank

N.B: We have been able to generate about $100,000 (Personal savings – $80,000 and soft loan from family members – $80,000) and we are at the final stages of obtaining a loan facility of $350,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.

One of our major goals of starting Tim Smith® Junk Removal, Inc. is to build a business that will survive off its cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to offer our junk removal and management services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

Tim Smith® Junk Removal, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check:>Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Acquiring of trucks and relevant junk disposal equipment: In progress
• Renting of Office Facility (Parking Yard for our junk collection trucks) in Delaware City: Completed
• Conducting Feasibility Studies: Completed
• Startup Capital Generation: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Promotional Materials: Completed
• Recruitment of employees and drivers: In Progress
• Purchase of the needed office furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with construction companies and other key players in the industry: Completed