If you want to open a dumpster rental business, this post contains sections and links to give you more information on this type of business.
In this article, you will learn how to start a dumpster rental business and the factors to consider. You will also see resources that may teach you more about how the waste management industry operates.
Steps to Starting a Dumpster Rental Business
1. Make Sure Running a Business is Right for You
The first thing you should do before opening a business is to figure out if entrepreneurship is your lifelong dream and if you have the skills for it.
Not everyone is cut out to be an entrepreneur, and running a business may not be ideal for you.
Check this post to learn more:
2. Research
Business Research
Knowing more about a dumpster rental business increases your chances of success.
The link below provides first-hand access to information from players in the waste management industry. You’ll also see ways to contact them for any necessary information. Furthermore, you’ll learn more about having a dumpster rental business.
See An Inside Look Into the Business You Want to Start for more.
Target Market
Knowing your target market will put your business in a better position to attract customers.
By defining your target audience, you connect with them and identify their wants and needs. Once you begin operations, you can fine-tune your advertising campaigns to address their needs.
For more, see, How to Understand Your Target Market.
3. Setup Considerations
Visualize the type of setup you desire for your dumpster rental business. Your vision may change as you conduct your research, and that’s perfectly normal. Just try to figure out your business vision now. You can adjust as you proceed.
The questions below can help you come up with a vision:
- Do you intend to have one or multiple locations?
- Do you plan to operate part-time or full-time?
- Who will manage and operate the business? You or the people you plan to hire?
- What is unique about your business and your competitive edge?
4. Choosing the Right Business Location
The location you choose can make or break the success of your business. A good business location ultimately leads to more success, while a poor one hinders it.
Select a location with a high demand for waste management and a market that is not saturated.
For more, see Choosing the Best Location for Your Business.
5. Choose a Business Name
When selecting a business name, choose one that’s memorable and easily pronounceable. You also want a captivating name that has not yet been registered by another entity.
Additionally, you want a name that you can match with the domain name for your website.
The following posts provide more information on choosing a domain name:
6. Business Registration
You want your business to operate legally in the eyes of the government and the tax agencies in your location. Therefore, you should register your business through the ideal entity structure and acquire the necessary business permits.
The entity structure you select will depend on various factors, such as the capacity of operations you intend to have and your capital situation.
See, How to Register Your Business for all the details.
7. Create Your Corporate ID
Create and present your corporate ID through elements such as a logo, branded stationary, business cards, brochures, and other promotional items.
Start by creating your logo and business cards. Then, ensure the design you select positively impacts your customers.
See A Complete Introduction to Corporate Identity Packages for more.
8. Estimate Your Startup Cost
Estimate the capital you need to open and run your entity for the first few months.
A low estimate will put you at risk of running out of money. A high estimate, by contrast, makes your operations appear risky.
Begin with a list of necessary items. You can add more items to your list as you research costs and other issues.
For more, see, Estimating Start-up Costs: Are You Missing Anything? Also, see, Business Expenses to Consider.
9. Writing a Business Plan
Having a business plan helps you in two ways. It clarifies your business vision and strategy and enables you to acquire debt or equity investors.
Here is a link to guide you when creating a business plan.
For details, see How to Write a Business Plan.
10. Set Up Your Banking
It’s vital to separate your business finances from your personal ones. One way to do this is by opening a business checking account. You can also open a merchant account if you want your business to accept debit and credit card payments.
Check the following articles to learn more about business banking:
- Choosing a Business Bank
- How to Open a Business Bank Account
- What Is a Merchant Account, and How to Get One?
11. Get the Funding for Your Operation
Getting a loan might be a challenge since lenders consider startups risky. They would rather give loans to an established and successful entity than take their chances with a startup.
But just because it’s difficult doesn’t mean it is impossible. Having collateral and a professional and meaningful business plan increases your odds of getting a loan.
For ideas, see our article, Getting a Small Business Loan.
12. Software Setup
Business software helps you efficiently organize and operate your business and analyze crucial information.
To select the best software packages, research their capabilities. Read customer reviews to learn about other people’s experiences with the software.
13. Get the Right Business Insurance
You need the right insurance coverage before opening your business.
Consult an expert insurance broker to ensure you get the necessary policies for your employees, customers, and property.
Explore these links for more details on business insurance:
14. Choose Suppliers
The right supplier can enhance your operations. The wrong one, on the other hand, can disrupt them. You want to choose a dependable supplier with which you can develop a long-term relationship.
See How to Choose a Supplier for tips and insights.
15. Physical Setup
This step requires you to pay attention to the layout of your operation. You want an organized layout to ensure you can easily put away and access things. You need an appealing area that makes you look good in the eyes of your customers.
An attractive setup also applies to where you will spend time running your business: your office.
Also, this stage is the ideal time to put signage to show customers you are open for business.
Learn more from the following articles:
16. Creating a Website
Your website is essential for two functions. You can use it to communicate with customers and market your entity. Aim to have a well-designed website that loads fast, is mobile-friendly, and impresses visitors.
You’ll also need to register your domain name and purchase hosting from a decent provider to acquire ultimate control over your site.
For more on creating websites, check these posts:
17. Create an External Support Team
An external support team refers to people you use for their professional services or consulting. This team can take months or years to gather. However, this doesn’t mean you hold off using their services until the support team is fully ready.
Start by listing the professionals worth having on your team and consider setting meetings with them. For instance, you can have a lawyer, banker, marketing professional, financial advisor, accountant, and IT expert on your team.
For more, see, Building a Team of Professional Advisors.
18. Hiring Employees
Whenever you are ready to hire employees, try not to hire more than necessary. Overstaffing increases operating costs and reduces profits.
Ensure each staff member you hire is a good fit for the position. Hiring the wrong personnel causes you to lose time, productivity, and money. In addition, it takes you back to the hiring process again if the person resigns or you fire them for not delivering results.
For more, see, How and When to Hire a New Employee. You may also be interested in Common Job Positions for a Business.
Considerations
We have outlined the steps to establish a dumpster rental business. Let’s discuss a few things to consider for a dumpster rental business.
Type of Dumpster Rental Service to Consider
Before starting your dumpster business, it’s important to identify the type of dumpster business you want to start. Here are some examples to consider.
- Junk Removal
- Construction & Demo
- Yard Waste
- Manufacturing Waste
What Type of Dumpsters Will You Use?
There are different types of dumpsters for different services. Identify the type of dumpsters you will focus on most. You can have more than one type if you have more than one type of service. Below are a few types to consider.
- Front Loader Dumpsters
- Rear Loader Dumpsters
- Roll Off Dumpsters
- Portable Dumpsters
Customer Considerations
Who Are Your Customers?
Knowing your customers will make you more successful when you adapt your services to meet their needs. You’ll also have a better chance to modify your advertising to address your customers.
- Will you be setting your focus on the consumer market?
- Do you plan on servicing contractors and home renovators?
- Will you focus on B2B clients?
It’s common to have customers that rent dumpsters for one day, a week, or even a month. Some customers will use your service for yearly contracts if they consistently need your services, such as production plans and home renovators.
Sometimes your customer won’t need the dumpster to sit at their location. A “live load” is when you wait at the location until the dumpster is filled in. which could be a few minutes or a couple of hours, depending on the job.
One of the key issues you must be aware of is having contracts signed by your customer, ensuring that they’re not dumping anything that can contaminate a dumpsite. There are ways of disposing of contaminated materials, but you can’t mix them with regular waste.
How Will You Dispose of Waste
You’ll need to research the best way to dispose of the waste picked up from your customers.
Do you use the local landfill, or are there other trash disposal methods? Determining this is in your best interest since it’s a big part of your business expenses.
For construction waste disposal, you can discount your customers if they separate the waste according to environmental laws. You won’t have to separate the material, saving you labor costs that can be passed on to the customer.
Scheduling
Scheduling your pickups is an important part of your business. You want to ensure your trucks are always on time. You’ll need software that can help you stay on track with pickups and deliveries of your bins.
Dumpsters and Trucks
You want to ensure you have enough dumpsters for your regular customers and those that need a temporary solution.
You need the right amount of drivers who will keep busy and perform services on time.
Stay Up To Date With Regulations
There are many new regulations for waste disposal compared to the rules of the 70s. With this type of business, you want to make sure you are abiding by the law, and you want to keep up to date with changing regulations related to waste removal.
There are different types of waste, for example. Renovation businesses need to remove debris from construction sites.
Are you considering eliminating all kinds of waste or specialized removals such as plastics or foods? The type of waste you will be disposing of will determine the regulations you must follow.
Marketing
Marketing is always ongoing in any business. It’s always one of the topics of focus for entrepreneurs.
Choose the marketing strategies that make sense to you and use them to attract customers and generate sales.
Simple marketing strategies like handing out business cards can help create awareness for your business. Therefore, always carry a few business cards to pass out when an opportunity presents itself.
Check the links below for tips and insights to create awareness for your business.
See our marketing section to spark your creativity for more ideas to market your organization also see How to Get Customers Through the Door, to find ideas you can use.
Profit
No one can tell you the exact amount of profit you stand to make since no business has the same operating expenses.
You can, however, estimate your profitability from each sale. Determine your net profit by subtracting total expenses from gross revenue.
To make more profit, keep expenses to a minimum. However, avoid keeping them so low that it affects quality and productivity.
See, Factors Affecting Business Profit
Pricing
Set your prices within the market range and adjust whenever necessary. If you want to increase your product’s or service’s price, increase its value, too.
Setting high prices causes you to lose business. Having them too low, on the other hand, causes customers to view your business as a discount operation.
See the tips for setting your prices.