How to Start a Junk Hauling Business in Nigeria – Make Money from Trash/Waste
Junk hauling business in Nigeria and anywhere in the world goes with the saying that “One Man’s Trash is Another Man’s Treasure”. Junk or waste management business is one of the best investments you’ll ever thank yourself for investing on.
Although this business is belittled by most people in the world because it’s not a fancy job. Most people prefer sitting in office, working for a boss and gets underpaid. But let me tell you that with this waste management business in Nigeria, you can make millions of naira while your mates are busy looking for white-collar jobs.
You may be thinking…
Is Junk Hauling Business in Nigeria Really profitable?
Yes! It’s profitable. And of the reasons why it’s profitable is because very few people are aware of this business (no high competition).
Apart from competition;
The junk hauling industry is valued at $55 billion, with an expected growth rate of 2.7% in the United States of America. Despite being lucrative, only 12,383 junk hauling businesses are operating in the industry.
… apart from the government waste management scheme, only few private investors or entrepreneurs are into junk hauling business in Nigeria and that’s a great head-up for you to start before people are aware of secret behind this business.
But you may want to know…
How Much Can I Make with Junk Hauling Business in Nigeria?
There is ample opportunity to step up and grab a chunk of the profitable junk hauling industry.
If done correctly, the junk hauling business can help you make $1000 to $3000 (or N360,000 to N1m) in a month easily.
But here is a misconception;
Most people assume that having a pickup truck and a phone connection is enough to start earning thousands of dollars. While they will help you get your business going, you need more than a pickup truck to establish yourself as a credible business.
In this article, we will discuss 5 pro-tips to help you start a profitable junk hauling business in Nigeria.
To be successful, you must know your market, must develop a business plan to give you direction & to secure funding, must legalize your business, must invest in effective marketing, and must remember to be patient & persistent.
Now, let talk about these pro-tips;
5 Pro-tips to Start Junk Hauling Business in Nigeria
Tip 1 – Conduct Market Research
Market research is the first logical step before starting any business. To make informed decisions about your junk hauling business in Nigeria, ask yourselves the following questions:
- What is your Target Market?
Which geographical area are you going to serve? What type of junk will you collect? What kind of junk collection is most profitable and suitable for a new business?
For instance, you may focus on consumer/home junk, office junk, or industrial junk. Most established businesses offer all of these services, but since you are a beginner and have limited resources, figure out which type of junk will be most profitable in the area you plan to serve.
- Determine the Cost of Operations
Develop an estimation of the amount of money it will cost you to start the business. Think in terms of office space, vehicle, gear, equipment, utility bills, and workers.
- Determine Estimated Revenue
How much can you make from the junk hauling business in Nigeria? Develop an accurate, projected revenue. You can do so by asking industry specialists, interviewing people already working in the industry, or by taking a job in a junk hauling business in your city.
- Analyze the Competition
It is vital to know your competition. Determine the number of international, national, or local junk hauling companies operating in your area of interest. What services are they offering? What is their pricing strategy? Do they have a competitive advantage? What target market are they serving? Do they have a loyal clientele?
Knowing the answer to these questions will help you establish a unique brand identity. It will also give you insight into market needs, gaps, and the opportunity to attract consumers to your business.
- Analyze Barriers to Entry
Are there any hurdles in starting the business? For instance, it may be difficult to obtain local, state, or federal permits for a junk hauling business in Nigeria.
- Franchise Vs. New Business
Analyze the market to determine whether it is more profitable to purchase a franchise license or to start a business of your own from scratch. Create a pros and cons list to analyze your options and make an informed choice.
- Pricing Strategy: How Much Will You Charge?
If you decide to start your own business, it is imperative to determine a consistent and competitive pricing strategy. In most cases, new businessmen change prices randomly from one job to the next.
A consistent pricing strategy makes you look professional and increases business profitability.
Tip 2: Prepare a Business Plan
A business plan is a formal document that contains details about your business and business strategy. A business plan includes the name and purpose of the business, business strategy, financial strategy, marketing strategy, and exit strategy (expansion plans). It will not only guide your actions but will also help you attract investors and funding.
If you go to a bank for loan, hedge fund, or any organization that gives money to startups, they will ask to see your business plan to determine whether it is worth it.
Tip 3: Legalize Your Business
It’s essential to register your business as a separate legal entity. Firstly, it is important because you will need to obtain licenses and permits for your business, and that cannot happen unless you have a registered company.
The second reason to form a business entity is to make sure that it is separate from your personal finances. God forbid if your company goes belly up, it won’t make you personally liable to pay off business debts and loan. You can file bankruptcy top avoid paying out of pocket.
Another reason to register your business separately is tax policy; the tax for companies is separate from personal tax. If you don’t register your business, it can be contused as tax evasion, which is a punishable offense. Moreover, small and micro businesses are often given tax concessions, which can actually be more feasible financially.
You don’t necessarily need to setup your own junk hauling business. In fact, you can partner up with other junk hauling and dumpster business and get yourself up and running right of the bat. Fortunately, you can rent a dumpster from a company and upsell it to your customer. There are a lot of other creative methods you can use.