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Venturing into the dumpster rental business might not be the first thing that comes to your mind when thinking of delving into the business world, right?
Well, before you write it off, here is a great blog post that will make you realize that the dumpster rental business is quite a lucrative venture, more so in areas with inadequate rental resources.
Think about it this way: Waste disposal is one of those tasks every person must do. It’s obvious then that a dumpster business can be such a hit, especially if you’re well equipped to start and run it. One great thing about the businesses is that you benefit from the dumpster’s rental fees time and again, hence enjoying a great profit for the purchase of your dumpster.
In this article, you’ll learn more about this business venture to eventually see if it could be your most appropriate entrepreneurial move.
Dumpster Rental Business Overview
Dumpster rental business is not new, dumpsters are found everywhere- in parking lots and driveways, on the streets, in commercial buildings, and in residential areas. It’s quite a simple idea: The customer pays a set fee for the dumpster for temporary or long-term use. They keep it for a set period of time, and then you pick the dumpster and handle the transportation and dumping of the waste.
Dumpster rental companies rent various sizes of dumpsters to customers, both residential and commercial. They deliver the dumpsters to precise locations and collect them after a specific period of time. Although most of these companies incorporate waste management solutions, the industry doesn’t incorporate waste disposal’s generated revenue.
The target market cuts across anyone with significant needs in relation to garbage disposal. It requires minimal investment in terms of time and resources. Apart from dumpster deliveries, and customer phone calls, you don’t have to be available on the working site all the time.
Dumpster Rental Business Industry trends
The performance of the dumpster rental industry is greatly influenced by consumer spending. As economic growth increases, it drives more activities that generate waste products, which is the basis of business for the industry.
The good news is that this industry has registered great performance for the past few years. Between 2014 and 2019, it experienced annual growth of 2.3%. Talking of 2019 alone, the employment rate was at 4,579 with 262 operating businesses.
The incorporation of digital services is a new trend in the industry that has really improved customer’s experiences. They are able to search dumpster rental firms online, read reviews, compare pricings, and settle for the company that suits their needs.
What it takes to run a dumpster rental business
While it doesn’t require a degree in business management to operate a dumpster rental business, there are certain skills and expertise that can enhance your success. These include Commercial Driver’s License, customer service skills, attention to detail, marketing skills, and organization skills.
The initial cost of starting the business mainly depends on the truck and dumpsters you intend to purchase. The cost of a dumpster ranges from $1000 to $6000 according to the size. A Truck Trailer is priced at $60,000 to $100,000. Other factors that influence the initial cost include a website, working uniforms, and signage for the dumpsters and truck. Generally, a business with 10 dumpsters and a truck can earn up to $3,630 per week minus the general expenses.
How do you start a dumpster rental business?
Just as is the case with other types of businesses, it’s important to have a good plan as you start. Of course, there are things you must know and things you must do for your business to triumph. Let’s go through the steps when it comes to venturing into the dumpster rental business.
Make a business plan
After envisioning the idea, the next step should be writing a business plan. Starting a business with a well conceptualized plan increases the chances of success.
Create a business entity
A business entity entails the legal structuring of business operations. LLC, sole proprietorship, corporation and partnership are the four primary types of business entities to choose from.
Decide on your location
Though most of the time dumpsters stay at the customer’s site, it’s necessary to have a place where they’re stored when not in use. While remote locations cost a bit less, locations that are closer to urban areas save time and energy when it comes to deliveries.
Acquire business permits and licenses
On top of a CDL for the truck drivers, a dumpster rental business might also need some general registration such as tax permit, occupancy permit, Employer Identification Number among others.
Get the funding
It’s one thing to have a business idea, and another to find the required financing. Sources of financing include loans, savings or sponsorship.
Make your marketing plan
It’s important to have well established marketing campaign plans and know your competitors before initiating the business. The cost of marketing depends on the kind of marketing such as print advertising or online advertising.
With an insurance policy, a business is assured of getting compensation in case of a tragedy that leads to loss of property or injury of a worker. A dumpster business needs a number of insurances such as commercial property insurance, general liability insurance and worker’s compensation insurance and commercial automobile insurance.
The next important step is to take on employees to handle various tasks associated with the business. A dumpster business truck driver earns approximately $17.11 per hour. While a few employees may be able to manage all the work initially, consider adding more workers as the business expands.
Final thoughts about Dumpster Rental Business
Just like any other business, it takes some effort to start a dumpster business. But although you may struggle as you start, you eventually overcome the struggle as the business picks. It’s good to give your business enough time to grow as you give your best. Everything will be paid off when success starts to triple in. Good research and planning prior to venturing into the business will put you in a better position to provide excellent services; you are able to stay one step ahead of your competitors.
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