How to Start a Junk Removal Business: 11 Steps to Starting a Profitable Business

1. Write a junk removal business plan

To help you secure funding for your junk removal business, you’ll first need a detailed business plan to share with future partners, lenders, or investors. A business plan covers a summary of your plans, goals, and structure.

Your junk removal business plan should include:

• Cover page – Include your business name, branded logo, and contact information
• Executive summary – Write a brief one-pager about your business that includes what you need to get started and how your business is unique
• Business overview – Summarize your business structure, when you registered the business, and other important details
• List of services – Show which junk removal services you’ll provide to customers
• Competitive market analysis – Review competing junk removal businesses in your neighborhood and explain how your business will stand out
• Marketing plan – Explain how you plan to advertise to your ideal customers, including your marketing strategy and budget
• Employee planning – Show when and how you plan to hire employees, as well as their roles and responsibilities
• Financial plan – Briefly cover your startup costs, operating costs, expected revenue, and your small business budget

2. Create a junk removal brand

A recognizable, memorable service business brand helps you stand out from your competitors and build a reputation for your business. That brand starts with your business name and logo.

To create your brand, first pick a junk removal business name that attracts customers and makes a strong statement about your business. Make sure it’s not already in use in your service area, too.

Then design a logo for your junk removal service. You can hire a designer to help, or you can make one yourself using an online logo builder like Looka. It could look something like this:

3. Get set up: registration and business structure

Depending on where you live, there’s a good chance you’ll need to register your business name to ensure that you’re running the business legally. Registration requirements are based on your city, state, and country.

You can learn about business registration requirements in your area by googling “AREA + business registration,” or checking with the business division of your local government.

4. Secure a junk removal business license and the right permits

You may need a business license to legally operate a junk removal business in your area, or a transportation license to haul heavy loads. Licensing and permitting requirements vary depending on where you live.

You may even need a state permit, license, or certification for certain types of waste removal, especially if you want to dispose of chemicals, biohazards, and similar dangerous substances.

Check with your local Chamber of Commerce or the Small Business Administration (SBA) to see which licenses or permits you need—and what items you can dispose of legally.

Pro Tip: Figure out a responsible junk disposal plan ahead of time, like heading to the dump or recycling depot, or selling unwanted items and scrap metal. Check to make sure your disposal site accepts the types of waste you’re collecting.

5. Get junk removal business insurance

Junk removal comes with many hazards, from damaging a customer’s home to straining your back while lifting heavy objects. Business insurance protects you, your employees, your company, and even your customers in case of an incident.

At the very least, your small business insurance policy should include:

• General liability insurance for property damage and personal harm
• Commercial property insurance for damage to your office and equipment in it
• Business income insurance to keep you up and running after an incident or disaster
• Commercial auto insurance for your company vehicle
• Workers’ compensation insurance in case an employee is injured on the job

You may also want extra junk removal insurance coverage for different situations, like professional liability, employment practices liability, cyber liability, and crime insurance.

Prices for junk removal business insurance can vary depending on where you are and what services you offer. 

If you’re handling hazardous waste as a service, expect to pay more in insurance fees.

6. Find funding sources for your business

Although you can start a junk removal business on the cheap, It could cost anywhere between $2,000 and $25,000 to get started on the right foot. While many of your startup costs are minor (gloves and boxes), others (a moving truck) can be much higher.

If you don’t have these things sitting around, you’ll need to get a loan or funding from a third-party investor before you can serve new customers.

A few popular options for starting your junk removal business are:

• Investing your personal savings into the business
• Applying for a small business grant through your local government
• Getting a small business loan from your bank or credit union
• Asking family, friends, or angel investors to invest in your business
• Apply for a small business grant or other government funding (e.g., U.S. Small Business Administration (SBA), Government of Canada)
• Opening a business credit card to improve cash flow and manage business expenses
• Exploring the Jobber Grants program, which offers $150,000 in available funding to recognize excellence in 25 small home services businesses

7. Set up your accounting

Before you accept your first junk removal job, open a small business bank account with low fees and interest rates. A separate account helps keep your finances organized, which is important at tax time.

You may also want to hire a bookkeeper or accountant to track business income and expenses, handle bills and payroll, create and send invoices, and maintain your business’s finances.

Pro Tip: Save money when you’re filing taxes by deducting up to $5,000 for startup expenses in your first tax year. This is just one of many small business tax deductions that might be available to you.

8. Price your junk removal services

It’s great to get paid for junk removal, but to be profitable, make sure your prices cover labor, materials, and overhead. Learn how to price for junk removal by following these steps:

• Decide whether you’ll charge customers by time, weight, or truck volume based on cubic yards. You can always set prices for all three methods and choose the best one for each individual job. Whichever method you choose, it should include the factors below.
• Research competitor pricing. Use these as a benchmark to see what customers expect to spend on junk removal services.
• Calculate your monthly overhead by adding together expenses like rent, insurance, payroll, and utilities. Then, break that down into hourly overhead by dividing it by the number of billable hours you work in a month. Apply this rate for every hour of labor.
• Factor in materials, travel time for waste disposal, taxes, and at least a 15% net profit margin. Use our free profit margin calculator to double-check your pricing and make sure every job is profitable.

Once you’ve settled on your service pricing, you can apply it when you’re pricing a junk removal job and creating your junk removal estimate.

9. Buy basic junk removal equipment

You’ll likely spend $2,000–5,000+ (USD) on equipment when you’re starting a junk removal business. Spread out these business expenses over time by only buying equipment when you need it, or buying used items instead of new ones.

Many of the items you need are available at your local hardware store. You can also talk to local contracting and janitorial suppliers to see if they offer better prices, payment plans, or product bundles.

10. Market your junk removal services

Your junk removal business is ready to roll—it’s time to land your first customer. Use these junk removal marketing ideas to attract potential customers and start winning work:

• Create a website where a potential customer can learn about your junk removal business, see before-and-after photos of finished jobs, and book a consultation online.
• Print business cards with your junk removal business name, logo, and contact information, then pass them out to people in the community.
• List your company on Google Business, Yelp for Business, Thumbtack, and other online directories or lead generation sites where potential customers are searching for junk removal services.
• Network with other home service contractors in your area—you may be able to send work to each other. You can also reach new customers by joining your local business association and sponsoring community events.
• Word of mouth is one of the most effective ways to market your junk removal company. After your first few jobs, start a customer referral program and ask for customer reviews of your business.
• Vehicle decals are easy to apply, make your truck and trailer look more professional, and act as a large mobile billboard for your junk removal services as you drive around town. Think about upgrading to a custom wrap if and when you have room in the budget.
• Social media is a popular place for home service businesses to find new customers. Set up a Facebook business page, X (formerly Twitter) profile, or Instagram account to reach potential junk removal customers on the platforms where they spend time.
• Send direct mail—like postcards, flyers, and door hangers—to homes in the areas where you want to work. Consider focusing on older communities where owners have been living in the same home for a long time. Just make sure you aren’t breaking any local rules around flyers and soliciting.
• Advertise online using digital marketing platforms like Google search, Local Services Ads, or Facebook ads. You can choose the audiences you advertise to and when, which makes your budget go further.

11. Hire a team to grow your business

Junk removal is a big job that requires lots of heavy lifting—and you’ll want a team to help you handle the workload. Hire employees who can do heavy labor with a good attitude. You can train them on the job to work safely and help you get the job done faster.