Building a Lucrative Junk Removal Business
A family with six kids was struggling financially after the father lost his job, but their life took a turn when he discovered a lucrative part-time business opportunity in junk removal. With minimal investment, he started earning up to $20,000 a month, revealing a secret revenue stream that pays twice for certain jobs.
- The business began with a $750 Chevy truck and a $1,400 trailer, and the first job was a significant milestone, marking the beginning of their business.
- The company offers junk removal, light demo, and other services, with hot tub removal being the most profitable due to the high cost of repairing broken hot tubs.
- They use Facebook to bring in customers, posting on community pages to advertise their services, and aim to make a certain hourly wage to make it worth being away from home.
Networking played a crucial role in the business’s success, with approximately 70% of their business coming from a local networking group called Ignite You. The business has a 60-70% profit margin due to low overhead costs and has been successful in generating $20-25,000 per month in revenue.
Key Takeaways
- Starting a business doesn’t require a lot of investment; the bare minimums include a truck and basic tools.
- Building relationships with local businesses is key to getting referrals and securing commercial accounts.
- Prioritizing customer service, asking for feedback, and showing genuine interest in customers’ lives leads to referrals and positive relationships.
- Efficiency is crucial in the junk removal business, and using a dump trailer or truck can improve efficiency and reduce manual labor.
The business owner credits their wife for keeping things organized and describes her as the “organizational queen” who helps manage their schedule. They have a daily 10-minute coffee meeting to outline the day’s tasks and rely on prayer, faith, and hope to make things work out.
Future Plans and Advice
The business is busy from now until September, then slows down until April, so they’re focusing on getting commercial accounts to carry them through the slower months. The owner advises others to take the leap of faith and start their own business, despite having a big family and a full-time commitment.
- Fear is just a roadblock that goes away once you start taking action.
- Mitigate risk by going cash only and avoiding debt, but take the risk of doing it to pursue your entrepreneurial spirit.
- Building a business is a great way to create a legacy and secure your retirement.
Key Vocabulary
| Term | Definition | Example Usage |
|---|---|---|
| Lucrative | Producing a large amount of profit or wealth. | The junk removal business turned out to be a lucrative opportunity, earning up to $20,000 a month. |
| Milestone | A significant event or achievement in a person’s life or career. | The first job was a significant milestone, marking the beginning of their junk removal business. |
| Profit Margin | The difference between the revenue and the cost of goods sold, expressed as a percentage. | The business has a 60-70% profit margin due to low overhead costs. |
| Overhead Costs | The expenses that are not directly related to the production of goods or services. | The business has low overhead costs, which contributes to its high profit margin. |
| Referrals | Recommendations or endorsements from satisfied customers. | Prioritizing customer service leads to referrals and positive relationships with customers. |
| Efficiency | The quality of achieving maximum productivity with minimum waste of time or resources. | Using a dump trailer or truck can improve efficiency and reduce manual labor in the junk removal business. |
| Legacy | A gift or property left to someone in a will, or a lasting impact or influence. | Building a business is a great way to create a legacy and secure your retirement. |
| Entrepreneurial Spirit | The mindset and attitude of someone who is willing to take risks and start their own business. | The business owner advises others to take the leap of faith and start their own business, despite having a big family and a full-time commitment. |
| Mitigate | To reduce the severity or impact of something. | Mitigate risk by going cash only and avoiding debt, but take the risk of doing it to pursue your entrepreneurial spirit. |
| Leap of Faith | To take a risk or do something without being sure of the outcome. | The business owner advises others to take the leap of faith and start their own business, despite having a big family and a full-time commitment. |
| Commercial Accounts | Business relationships with companies or organizations. | The business is focusing on getting commercial accounts to carry them through the slower months. |
How This Dad Makes $200/Hour After Work 🎓
Explore the advanced terminology extracted from the source material.
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Vocabulary Quiz
1. What does ‘lucrative’ mean in the context of the junk removal business?
A) Not profitable
B) Requiring a lot of investment
C) Generating a significant amount of money
D) Unsuccessful
2. Which of the following services is the most profitable for the junk removal business?
A) Light demo
B) Junk removal
C) Hot tub removal
D) Trailer rental
3. What is the primary source of business for the junk removal company?
A) Facebook advertising
B) Local networking group called Ignite You
C) Word of mouth
D) Online directories
4. What is the result of prioritizing customer service and building relationships with customers?
A) Increased competition
B) Decreased revenue
C) Referrals and positive relationships
D) Higher overhead costs
5. What is the business owner’s advice to others who want to start their own business?
A) To avoid taking risks and play it safe
B) To take the leap of faith and start their own business despite challenges
C) To invest a lot of money before starting
D) To focus only on commercial accounts
Answer Key:
1. C
2. C
3. B
4. C
5. B
Grammar Focus
Grammar Focus: Using the Present Perfect Continuous Tense to Describe Ongoing Actions
Grammar Quiz:
Choose the correct sentence that uses the present perfect continuous tense:
- Which of the following sentences is in the present perfect continuous tense?
A) They use Facebook to bring in customers.
B) They have been using Facebook to bring in customers.
C) They used Facebook to bring in customers.
D) They will use Facebook to bring in customers. - Which sentence correctly describes the business’s ongoing revenue generation?
A) The business generates $20-25,000 per month in revenue.
B) The business has generated $20-25,000 per month in revenue.
C) The business has been generating $20-25,000 per month in revenue.
D) The business will generate $20-25,000 per month in revenue. - Which of the following sentences uses the present perfect continuous tense to describe the owner’s advice?
A) The owner advises others to take the leap of faith.
B) The owner has advised others to take the leap of faith.
C) The owner has been advising others to take the leap of faith.
D) The owner will advise others to take the leap of faith. - Which sentence correctly describes the business’s ongoing efforts to get commercial accounts?
A) They get commercial accounts to carry them through the slower months.
B) They have gotten commercial accounts to carry them through the slower months.
C) They have been getting commercial accounts to carry them through the slower months.
D) They will get commercial accounts to carry them through the slower months. - Which of the following sentences uses the present perfect continuous tense to describe the wife’s role in the business?
A) The wife keeps things organized.
B) The wife has kept things organized.
C) The wife has been keeping things organized.
D) The wife will keep things organized.
Answer Key:
- B) They have been using Facebook to bring in customers.
- C) The business has been generating $20-25,000 per month in revenue.
- C) The owner has been advising others to take the leap of faith.
- C) They have been getting commercial accounts to carry them through the slower months.
- C) The wife has been keeping things organized.
