How Much Money can your Junk Removal Business Make? - Junk Removal Authority

How Much Money can your Junk Removal Business Make? – Junk Removal Authority

alright guys welcome to another episode of junk removal made simple by the junk removal Authority it's about 10:30 on a Thursday evening shooting this video very late tonight I was hoping to have a shot I can't see this little studio set up with some lighting but I don't did today I'm gonna do this video shots and before I shoot the next one we'll try and get that done I was in Charlotte love day to day getting some of our stuff to take care of there I had a lot of urine taxed up working on and then just my normal more normal duties that I get bills paid and all that kinda on Thursday so we this video shot very late coming over to the portable one itself one thing a lot of people are big are interested in and it is how much money can you make now I can do all the legal disclaimer bs this is by no means a guarantee these are average numbers that a unit of this particular size is going to see as far as percentages and expenses it can vary depending on how you operate how efficient your operating and your particular market as well but these should be some good rough figures that tend to carry you across the country some of the income numbers can be a bit different you're in competition will be higher if you live in areas that are a bit more expensive to live so this is gonna be based on the location that earns a hundred and fifty thousand dollars in its first year that's gross income now a $150,000 gross income in the majority of the continental United States should be expecting much parts of keeping the many parts of Canada as well that $150,000 should be expected in your first year some areas you'll see higher than that you know a bit more expensive and some areas could be a bit lower but on average about $150,000 of what you expect to see your very first year so what are your top expenses all the time as far as long as you operate this business your top expense is going to be payroll so $150,000 you're going to show payroll somewhere if you're not on the truck somewhere around 35% if you're on the truck doing all the job somewhere around 17 and a half so it depends how you operate it you can very well operate and be on almost every single job throughout the year and give this $150,000 income that being said if for those of you that are looking this is an investment you have a bit more money saved up and not work or you're not required to have a good salary or good income your first year and you're able to put more effort on building the business and meeting people and advertising marketing and sales then you should expect a higher figure than this however we're going to base our numbers simply on $150,000 you regardless of whether you're on the truck or off the truck as far as your gross sales now 17.5% if that means if you're on the truck it's going to be somewhere around $27,000 for payroll throughout the year now that included to the pay 12 bucks 11 12 13 bucks an hour to that hollowly worker it also includes Social Security and Medicare the portion that the company pays all that's worked into this this figure does not include workers compensation recover that just a minute so 27,000 if you off the truck 17.5% excuse me if you're on the truck 54,000 yeah you're off the truck working on the business or treating it like an investment almost so you're your neck Spence will be work comp now depending on your state if you only have one or two employees you might not have to buy workers compensation insurance I really really really recommend you give that the way you always want to view insurance is if the worst thing happened possible the very worst case scenario haven't possible could it sing me and yes if you have a worker's comp claim if an employee if a team member gets seriously injured he can sink you potentially especially in the automobile accidents and stuff like that so you know if you do a demolition work that kind of deal so trying your orders comp now the problem is when you first start it to be more expensive wear junk doctors we pay about 7% workers comp starting out you're going to be about twelve twelve percent of 150,000 is thirty to forty Oh 27,000 a roll and that's not what that's not twelve percent of your income it's probably not we don't see this it's 12 percent of payroll so thirty to forty one a twenty seven thousand payroll 6480 own $54,000 payroll so for the money when you're first starting out your panel is low enough go ahead guys go to get workers comp insurance so don't try and save thirty to forty or sixty four eighty for your very first year and risk losing your business and your house or wherever else should there be a big big injury going disposal fees depending on how good of a job you do is donating and recycling and what kind of debris is typical in your area this can vary so typically you're going to be seeing somewhere between seven to ten cent tip percent it's pretty high you know you should be able to keep it below 2% so for the joke doctors typically sees about 8% and there are companies that do a little bit better job or recycling donating we tell people that straight up and we don't try and high that we do a decent job with it but other companies out there they're doing a better job when recycling you know today you can probably get this figure down closer to 7 percent but 8 percent is probably what you can be looking at your first year in operation until you get get your recycling and donations set up a bit more streamlined so that's $12,000 your fuel cost now obviously this is something that can vary and you'll have to adjust your prices accordingly if fuel prices rise but generally it will be about 6 percent 6 percent of fuel or of income 9000 your although expense repair calls or your payment that we're kind of group this together Lomo 4500 high of 12,000 the insurance calls so this is going to be not workers comp this is going to be your liability insurance your automobile insurance that that's going to be in any bonding you have that's going to fall under this you're normally going to be around one to two percent which puts you around 1,500 or 3,000 now your advertising cost we're going to slip this in up here for space reasons advertising we recommend a minimum of 10 percent we'd love to see you closer to 15 and 20 percent your first year but advertising cost somewhere around 15,000 to 30,000 10% fifteen thousand twenty percent thirty thousand and you're in how rent is something you shouldn't control and watch you could have as low as zero you can have it as high as about you have a higher this for twelve thousand now your first year in operation trying to avoid the twelve thousand trying to run this thing out of storage unit run out of your house something like that if you're running out of your house tenant you probably you really you wouldn't want to have a zero right here you won't be paying yourself rent for the space you use out of your house but but this is one expense you can watch you don't have to have a nice fancy office your first year in operation it took took us six years they use it to get our so we were out of a single-wide trailer for the first six years so I watch this rent expense one time we have an average borrow moving the larger all of us and that was a mistake because we were paying after utilities and everything will pay forty hundred bucks a month on a location that was doing $150,000 a year so watch the rain expense that's one thing you can always control and then you're gonna have a miscellaneous expense about five percent that's going to be office supplies phone Internet etc which is going to put you somewhere around 7,500 all right so let's add these together yeah the lesser expenses here plus the ones that are going to be the same that's good a total seventy-nine 740 on the low end and we'll high end your expenses are going to total 145 980 that will do your profit somewhere between $4,000 and seventy thousand two hundred and sixty so um these are some rough numbers right in here chances are one hundred fifty thousand dollars of income you're not going to profit quite seventy thousand dollars two hundred sixty you're likely going to be closer to fifty fifty-five I imagine your advertiser is typically going to be a be a be a bit higher than this your first year at operation and you're probably even if you're on the truck you're probably not gonna be able to truck all the time you're probably gonna be although its own you would it would be difficult or arable the job on the truck every single every single job so realistically you know the highest number you're probably going to see as far as what you what you earn is gonna be your first year somewhere around say fifty five thousand on the low end you probably would make more than that because likely what's gonna happen unless you're just treating this as an investment and you're not really working much on the business and growing it unless you're unless you're doing not doing or unless you're doing that what a likely happened is if you're working mainly on the business and you would be down here this four thousand range well it's probably going to happen especially since you probably spend one advertisement and then you're out there making sales you're making calls to apartment complexes estate companies realtors you're throwing luncheons for realtors you're visiting professional organizers and you're making business connections in all to increase your commercial accounts likely this finger is going to be higher as much as two twenty five you can make that big of a difference so when you hit this 225 that's gonna bring them your profit now it's not gonna bring it up by the seventy-five thousand dollar increase in income it would probably bring this product somewhere I've run over likely somewhere around 15 to 20 at that point but it was the thing is it would set you up for a great for a wonderful year your next year your second year you can likely expect – you really should come close to doubling your second year maybe not quite but you know 253 150 your first year being a 250 your next year is certainly you know very doable and I would almost almost be expected again no guarantees even if you started out in the first year between 25 being closer to 350 ish you know that would be a very realistic figure doubling isn't uncommon we did not double between our we did actually double between our first and second year we did it between our second and third we don't between our third and fourth between our fourth and fifth we've almost doubled between our fifth and six and the so Dublin's not have a question you know with your business is young now the one thing this does not account for his managerial time as you develop your business you must make sure you're getting paid a salary for the work you do for your managerial time that way the profit figured out here is accurate what you want to shoot for after all expenses have been paid including your salary is a 15% profit if you can get this business after all expenses paid to a 15% profit you have a very valuable business something that's worth close to five times its net income so if you get a business worth it's making $200,000 a year you've got a business worth eight hundred thousand or a million dollars at that point you go out sell not even counting equipment so always build this business with profit and profit margins in mind keep your advertising up at the start now don't waste ever dollars make sure you're tracking it and understand every single month you want to do it I'll show you I'll show you a video later on on how to figure your return on investment of advertising you wanna make sure you're profitable or an advertising or breaking even advertise spend as much money as possible in advertising even if you land breakeven because you're getting a cut if you do a good job with that customer you're getting a potential referral or referrals and then also long-term business by your third year in operation you should expect somewhere around 30% repeat business by your fifth year and operation you're gonna be around 50% repeat business so you gotta make sure you're doing a good job but you also got to make sure you get the word out junk removal is a very profitable business if you run it tight and if you're willing to work hard and you know it is extremely profitable for the amount of money you have to put in and at the start any questions at all that you have on this or anything else you know as email Miglia junk DRS com remember no removals already complete business units all the way take from the idea to opening day currently on sale now for $25,000 we've got these generally normal price to 75,000 so you're looking a $50,000 discount guys we may almost we make very very little money upfront on a $25,000 investment matter of fact we pretty much just break even we're trying to blow these business units out there get this thing kick-started and and then we're also in the process of developing the junk removal management app and it's gonna it's gonna be the best application out there and software out there to run your junk removal business for those of you looking into franchises this is the way you gotta go I'm telling you junk removal authorities the way you gotta go you don't have that long-term commitment you're not handcuffed to that French you start paying ten to fifteen percent month after month after month are you doing with us is you pay front fee for the business package the business unit and if you want to use our call center you one-on-one consulting you want to use our website you want to have access to our national contracts on down the line you only pay for the services you actually use so if you get in the point you don't need those services you cut us loose and you do it yourself but unlike the franchise you're paying that amount even if you get the point you know already the service so this is how much money you can make with a jumbo we've got another video coming up soon again any questions lee junki Escom lee at jump DRS calm and you can always call us nine one nine four six six nine three two two nine one nine four six six nine three two two

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