Thinking Of Setting Up A Waste Removal Business? Read This

If you’re getting into the waste removal industry, you’re making a good move. While it might not be the most glamorous sector, it can be an excellent way to make money and set yourself up for life. 

The downside is that you have to do your research first. You can’t just rock up and expect things to work out. 

If you’re in this position, you want to get started, but you’re not sure what to do next, the post is for you. We look at everything you should be doing to ensure the best possible outcome for your enterprise. 

Choose A Niche

Strange as it may sound, it makes a lot of sense to choose a niche in the waste collection industry. Too many entrepreneurs try to become do-it-all services for everyone and wind up failing. 

There are actually quite a few paths you could go down when it comes to setting up a waste disposal business. For example, a lot of companies target construction sites because they are a reliable source of business. Dense residential areas also tend to be good, since people have to throw things out when moving apartments or refitting their kitchens. 

Lastly, you could look into specialty services. These deal with specialist disposals, like hazardous materials and e-waste. Often, the margins for these services are higher, partly because they are more difficult, and partly just because people expect to pay more. 

Get Licenses

Next, you’ll want to think about the licenses you need. These are essential for things like waste tracking and being on good standing with the city or local area. 

The local permits and insurance requirements vary depending on your location. As such, you’ll need to do all the proper research. Don’t rush into it: that could be a mistake and you could get shut down. 

If you can start building relationships with landfills sites and recyclers, that’s also a good idea. Try to figure out what they’ll accept, and what you need to dispose of in inventive ways. Sometimes, you can’t process an item, in which case, you’ll want to state that you can’t on your website. 

Think About Equipment And Be Smart

When it comes to the equipment you buy, you need to be smart. You don’t necessarily have to spend a lot of money to get going. 

For example, packers are usually unnecessary. These pack waste down to make it more transportable, but you won’t usually be doing the volumes for that. 

You might also want to get some dumpsters and a truck that can transport them. Again, you can buy used and simply renovate any equipment or vehicles if necessary, at least until you’ve tested the business concept. 

Also, think about your tracking and metrics. A lot of landfills now charge by weight, so bear that in mind when making collections. You may need to add scales to your trucks to calculate what prices to charge. 

Figure Out Your Pricing

Speaking of which, it’s critical to figure out your pricing. Interestingly, margins differ between various dumpsters, so you’ll want to take that into account.

If you can sell dumpster rentals by the month, that’ll usually make you the most money. You can avoid the collecting and delivery costs, which can sometimes be quite high. 

Furthermore, the longer the dumpster, the higher the value to you. For example, if you use 20-yard options, you can sometimes reach margins of 60%. 

Look For Landfill Deals

If you can get landfill deals, that also puts your business in good stead. These will often save you a lot of money and may even pay you for some types of waste. 

You’ll want to start by negotiating the tonnage rates. These are what you need to pay per tonne for the landfill to remove waste for you. 

Unfortunately, if you’re a commercial provider, you’ll have to pay these, but you can pass on the additional cost to your customers, and it’s standard for the industry. 

You can also look into sourcing clean wood or concrete. Sometimes, landfills will pay between $5 and $10 per tonne for these because they can then sell them as inputs for other processes, like fiberboard. 

Choose The Right Software

Don’t try to run a waste disposal business using pen and paper. Instead, look for software solutions or CurbWaste free tools that can manage operations for you. 

A lot of entrepreneurs getting into this sector get stuck at this stage. They think they can manage everything by hand, but get into trouble with all the admin. 

The best approach to saving money is to simply pass all this work onto software. That’s all you need to do. 

Adopt Operational Hacks

If you’re really seeking maximum efficiency, it’s also a good idea to look for various operational hacks. For example, you could ask whether you might be able to achieve more route density, depending on your location, or perhaps use bonuses to incentivise drivers. 

These hacks might sound small, but they can wind up having a gigantic effect long-term. A lot of companies in this industry double their margins using this method. 

Know What To Avoid

Knowing what not to do is sometimes as important as knowing what to do in the waste disposal industry. Even small mistakes can have severe consequences. 

For example, if you underinsure yourself, you can get into trouble. Ideally, you want several million dollars worth of liability cover to protect you. If you don’t, then a single spilled load could cost you. 

Also, avoid the mistake of failing to verify your landfill tickets. If you’re dumping a lot of waste every day, you’re relying on their calculations. Don’t settle until your tonnage matches theirs. 

Ultimately, if you’re considering setting up a waste disposal business, we suggest looking deeply at yourself and asking if it’s what you want. You have to be okay with things like getting dirty and being called out in the middle of the night. You also need to be able to take on the big franchises, and they’re not always happy you’re stepping in on their turf.