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When done correctly, a rubbish removal business can be profitable. What's better, you don't need specific qualifications to start one - just a good dose of self-motivation, a business-savvy nature and a knack for working with people.
In this article, we'll take a look at the costs associated with setting up a rubbish removal service as well as the tools and qualifications you'll need to run a successful company.
A rubbish removal business is typically a group of individuals who collect and dispose of people's unwanted goods. Removalists will collect the rubbish from a customer's property before transporting it to recycling plants, waste treatment facilities or a landfill site.
If you're not sure how to get the ball rolling with your rubbish removal business, check out the following key steps:
While you don't need a specific set of skills to open a rubbish removal business, it can pay to have a general understanding of waste removal in your town or city. It's also worth looking into what your customers are looking to dispose of and how you can do this safely.
You will need to have a basic understanding of finance so you can crunch your business numbers as well as knowledge of marketing strategies to get the word out about your new venture.
While there's no formal qualification needed to start a rubbish removal business, there are some courses available online where you can learn about waste disposal and management methods. These may include:
To legally operate a rubbish removal firm, you'll need to have the correct licensing in place. This will allow you to handle and dispose of rubbish in your local area. You'll find that the rules and regulations differ across states and territories. To find out the correct licensing for you, contact your local Environmental Protection Authority at the links below:
When it comes to naming your business, you need to choose something that reflects the services you provide and something that's easy to remember. Here are a few tips to help you hit both of these important points:
Before you start up operations, you'll need to choose a business structure. This will determine how you pay taxes as well as who makes the key decision in your business.
If you're planning to run the business yourself, you may choose to set yourself up as a sole trader, to begin with. This puts you in charge of all business decisions, assets and liabilities. For tax, you're able to submit your business tax under your Tax File Number (TFN).
When you set up a business with a friend or family member, you'll need to register it as a partnership. You'll pay tax just as you would as a sole trader, but they'll be two people as the brains of the business.
As your company grows and expands, you may choose to change your structure and register your business as a company. Companies are much more complicated legal structures and are generally more costly to set up. However, they are much more flexible, allowing shareholders to invest and taking the financial burden off your shoulders.
Taking the time to put together a business plan can be extremely beneficial for you and your company later down the line. As a business owner, a plan can help you to understand your finances, goals and plans for expansions. These are a few essential sections to cover:
A rubbish removal business requires significant initial investment to get it up and running. Here are a few essential pieces of kit that you'll need to invest in. If you need help funding your business, check out these loans for small businesses.
You'll need to invest in a large, sturdy vehicle to operate as a rubbish removal company. To find a ute that's fit for purpose, you'll need to budget between $25,000 or more depending on the specification you're looking for, and your budget.
If you're keen to get stuck into the big jobs, you'll need somewhere to put all of that rubbish. The easiest way to do this is to invest in a skip or a trailer, that your vehicle can tow.
It's essential to keep yourself and your employees safe while working on the job. Your insurance policy will generally demand that you provide a bare minimum of protective overalls, gloves and boots. However, if you're dealing with more toxic waste, you may also wish to invest in masks and eye protection too.
Along with these essential items, here's a quick rundown of some tools that will come in handy:
Away from the day-to-day operations, you may also need a hand running the backend of the business. In terms of business software, take a look at Jobber and Workiz Easy, which can help schedule, manage payments, time tracking, and provide great customer service.
Every business needs to understand its legal rights and obligations. To do this, let's start by taking a look at some key legal documents that you'll need to put in place.
If you're thinking about writing these documents yourself, why not use an online legal template as a starting point. Alternatively, contact a small business lawyer who can help you navigate the legal technicalities of starting a rubbish removal business.
Another must-have to protect your company and its employees is having the right business insurance in place. Rubbish removal can be risky, especially if you're dealing with heavy machinery and hazardous waste. Here are a few different types of insurance to consider:
Rubbish removal businesses typically charge customers by volume, time or weight. The simplest of these three methods is time; that is, you charge customers for how long a job takes.
This takes into account weight and volume as the more rubbish there is to dispose of, the longer it will take. Hourly rates for rubbish removal companies in Australia typically vary between $30 and $80. You may also want to charge a call-out fee or a disposal fee.
Volume-based pricing is also worth considering and is based on how full your truck is. For both time and volume charges, you can use software to help you track and calculate costs.
You can start to build up a customer base using various marketing channels ranging from email marketing and social media advertisements to traditional flyers and posters.
In addition to these channels, you can also explore various online marketplaces that provide a hassle-free opportunity to find new customers. Here are a few services worth checking out:
Another way to broaden your customer base is by listing your business on directories such as TrueLocal and White Pages.
Can I dispose of all rubbish for my customers?
It's up to you. Some rubbish removal companies choose to have a 'blacklist' of items they simply won't dispose of. This can include hazardous or non-recyclable items that are expensive to get rid of.
Should I invest in a rubbish removal franchise?
Investing in a franchise can be a good way to start a business as you're buying into a company's established reputation. You can also save on marketing costs and find customers more quickly. However, you should consider the disadvantages of investing in a franchise too. This includes franchise fees, significant upfront expenses and sometimes restrictive conditions limiting your business' success.
What are the other costs associated with a rubbish removal business?
Aside from investing in a van, trailer and essential tools, you'll also need to consider legal fees, insurance costs and put aside a budget for marketing your rubbish removal business.Back to top
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