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How much does it cost to start a junk removal business?

Updated By ProfitDrawer

Short answer

ProfitDrawer's junk removal business guide gives an example budget of about $550 to $9,650. If you already own a suitable truck, you mostly pay for gear, a license, insurance and marketing. The biggest lines are a used dump trailer or vehicle upgrade ($0 to $6,000), liability and business auto insurance for the first months ($150 to $1,200) and dollies, straps, tarps and tools ($150 to $500). These are example ranges; your costs will differ.

Example budget (your costs will differ):

Item Low High
Used dump trailer or vehicle upgrade (if you need one) $0 $6,000
Dollies, straps, tarps, gloves and tools $150 $500
Business registration and local license or permit $50 $500
Liability and business auto insurance (first months) $150 $1,200
First disposal fees (money set aside) $100 $400
Simple website or booking page, business cards $0 $400
Marketing (flyers, truck magnets, local ads) $50 $500
Phone and software for the first months $50 $150
Total $550 $9,650

The trailer or truck is the cost that moves the total most. If you need a loan for it, a written plan with numbers helps when you talk to a lender.

Disposal fees come out of every job, so build them into each price. In the guide's worked example, a quarter-load garage cleanout takes 2 people 1.5 hours ($90 of labor), with a $45 dump fee, $17.50 of driving and $15 of overhead, for a cost of $167.50; adding 20% to the cost (a 20% markup) gives $201, rounded up to $205 (see answer 144). Put your own numbers into the free startup cost calculator.

Source: How to Start a Junk Removal Business (ProfitDrawer guide) · Updated

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General information, not tax, legal or financial advice. Check the rules for your state and your situation.