Do you want to start a litter removal business? If yes, you have landed at the right place.
It is without saying, litter removal is not only rewarding but also a profitable business. This is an easy-to-operate business and does not need high investments. Moreover, the profit margin is also good.
With increasing awareness about environmental protection and hygiene, litter removal service has become more important and it is expected that this service will have more demand shortly.
You can start a litter removal company part-time. However, considering the profit percentage and low investment, you can think of it as a full-time business.
This business needs research and networking on your part along with good marketing and publicity. This will help you in getting more business and earning high profits.
13 Steps to Start a Litter Removal Business
1. Know the Business
A litter removal activity can simply be referred to as a business wherein you are supposed to remove litter from certain places. However, before starting the business, you must have a good knowledge of the details of this business. Litter can be defined as small amounts of trashes that are thrown in public places. Examples of litter include cold drinks or beer cans, cigarette butts, plastic packets, wrapping papers, etc.
Such trashes, thrown in public places pose threat to the environment and hygiene. Hence, paid services are sought for removing the litter. In this business, you have to carry the litter from public places and then dispose of them to some waste management company for recycling, etc.
2. Do Market Research
After knowing about the business, you have to know about the prospects of a litter removal business in your area. Take note of public places like parks, malls, gardens, parking lot, residential complexes, and so on, and find out their condition and status as far as cleanliness is concerned.
Do market research and collect information on the upcoming real estate and construction projects that may be prospective for your business. Along with all these, know about your competitors in the area of your business.
3. Create a Business Plan
Like any other business, making a business plan is equally important for your litter removal business. A well-written business plan will help you in several ways. Your business plan should have brief and to-the-point discussions on topics like
- Mission and Vision
- Intentions behind taking up this Business
- Materials Required
- Operational Plan
- Funds Required
- Source of Funds
- Marketing Plan
- Profit Projection
Refer to important statistics and figures with relevant points. Be truthful and don’t try to make any unrealistic claim/s.
4. Select a Business Name
Choose a good name for your litter removal company. It should be a clear and meaningful name that would tell about the nature of your business. Don’t choose any complicated name. Find the domain in the name of your business for launching the website of your company.
Read: How to Name a Business
5. Company Formation
Give legal status to your litter removal business by registering it as a legal business organization. You have options like Sole Proprietorship, Partnership, LLC, C Corp, and S Corp. Choose an option that suits you.
6. Tax Registration
Register your business for the necessary taxes. Also, try and get the EIN.
7. Licenses and Permits
Get the required licenses and permits for your litter removal business. These can be obtained both at State as well as the Federal level. It will be difficult for you to run your business smoothly without the licenses and permits and you may end up paying high fines.
8. Buy Insurance
Insurance is also a necessary part of this type of business. General Liability Insurance and Workers’ Compensation Insurance are suitable options for you to start with.
9. Open a Business Bank Account
A bank account in the name of your business is necessary to keep your business accounts organized and separate. Hence, you have to open a bank account in the name of your business. Also, try to get a business credit card.
10. Office and Manpower
You can start your litter removal business from home. The office should have a table, chair, computers, printers, office stationery, telephone, internet connection and a separate corner for keeping your equipment. If you want to do the work yourself, there is no need for any field worker. However, for a large-scale business with multiple orders, you will need field staff to do the work. You will also need an accountant and marketing personnel.
11. Equipment Required
The litter removal job does not need any high-powered or complicated machinery. Brooms, trash bags, litter scoops, rakes, shovels, gloves, and sometimes, garbage cans are required for this business.
12. Set Pricing
The litter removal business has two types of clients. In the case of public places like parks, malls, markets, residential complexes, office complexes, or parking lots, garbage removal is done regularly. In such cases, you may have a daily or weekly payment structure on an hourly basis. Annual contracts with city or municipal authorities, mall management, and housing board are also done regularly.
One-time or occasional litter removal is another mode of operation in this business. In such cases, you have to remove litter at parties, fairs, exhibitions, or during festivals. This is done on specific occasions. However, good service can give you repeat orders.
13. Marketing Strategies
Marketing strategies are important and you have to plan them wisely.
a) Make a Website
Make your company’s website a marketing and publicity medium for your litter removal business. The website should be well-designed as well as well-informed, giving the necessary information about your services along with the rates per hour. Update the website regularly and share the link as much as possible. Also, keep provisions for service booking online.
2. Publish Ads
Give ads about your litter removal business in newspapers, magazines, radio, TV, and cable channels.
c) Posters and Hoardings
Use posters, hoardings, and glow signs on your litter removal business at prominent places in the area of your business.
d) Leaflets, Flyers, and Pamphlets
Distribute leaflets, flyers, and pamphlets to people in crowded places. Also distribute them at offices, malls, markets, and residential complexes.
e) Personal Contact
Visit strategic contacts like city or municipal authorities, property management companies, landscape or building maintenance contractors, mall officials, big offices, and event management companies. Distribute well-designed brochures to them and keep in touch regularly. These contacts will give you work.
Enlist your name as a litter removal business in business service directories, both published and digital. This will help in spreading your company’s name.
g) Social Media
Use social media for marketing and publicity of your litter removal business. Create pages in the name of your company and give regular updates, reels, etc. Paid ads in social media are also very effective.
h) E-mail Marketing
Send regular e-mails to import contacts from your database telling them about your litter removal business. This will help you in getting more clients.
How Much Does it Cost to Start a Litter Removal Business?
The litter removal business does not require a high investment. You will need an initial capital of not more than $500. This includes the equipment, primary cost, etc. As you get more orders, you have to hire field workers and pay them from the payment you get.
If you want to start your business on a larger scale with a rented office, your investments can go up to $3000-5000.
You can get the money from your savings, bank loan, or personal loan.
How Much Money Can You Earn from Litter Removal Business?
The litter removal business is profitable. You get paid on an hourly basis and the rates vary between $40 and 50. Therefore, if you work for 5 hours per day and 5 days a week, you can earn $1000-1250 per week, $4000-5000 per month, and $48,000-60,000 per year.
Now, if you have 4 workers working for you the annual income goes up from $240,000 to 300,000. After paying the workers and covering all fixed and variable costs, you can easily enjoy a profit of 40-50%. Profit will further increase with more orders. Hence, this business will give you an impressive profit margin.
Litter removal is a simple business that will give you a good profit. With the right planning and hard work you can become rich in this business.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their businesses.