Whether you’re moving homes, moving offices, or embarking on a renovation project, there will come a time in everyone’s adult life when they’re called to bring in the help of a professional waste removal service.
You might be surprised to learn that skip bin businesses and rubbish removal businesses in Australia are booming. With careful management, hard work, and some good business sense, a rubbish removal business can easily turn hundreds of thousands of dollars in profit every year.
So, how do you start a rubbish removal business in Australia? Here are the basics you need to know about starting a business in this highly lucrative sector.
What does a skip company do?
At its most basic level, skip companies hire out skip bins to customers. Every skip company has slightly different offerings and procedures, but generally speaking, skip companies are responsible for delivering skip bins to their clients, collecting the skip bins from the site at a later date, and then processing the waste from the skip bins according to local procedures.
So, what do skip companies do with their waste? The answer isn’t as straightforward as you might think. Rubbish removal isn’t as simple as collecting waste and dumping it into landfill (at least, it shouldn’t be!). Skip companies work hard to ensure that they’re disposing of waste in the most environmentally responsible manner. That’s why waste removal companies offer different types of skip bins to clients. By separating waste by material, waste companies are able to dispose of the contents of a skip responsibly and efficiently. Organic/green waste is typically turned into compost, recyclable waste is taken to a recycling facility, and other waste is taken to landfill.
Is there money in waste removal?
For as long as humans inhabit the planet, there will always be waste and rubbish left behind. Unfortunately, waste is an inevitable byproduct of human existence, which means that there will always be demand for waste removal services across the world.
In Australia, the waste removal industry is a multi-billion dollar industry. In the 2018-19 financial year, Australians spent a whopping $17 billion on waste services! So, if you’ve ever wondered if there’s any money in waste removal, the figures suggest that there most certainly is profit to be found in operating a waste removal business.
Skip bin hire prices vary depending on the size of the skip and the duration of the rental period. Skip companies generally charge a flat rate for each day of hire. Hipages estimates that you’d be looking at paying anywhere between $286 for a small 2m3 skip to $1,958 for a large 17m3 skip. For a more detailed idea of the cost per size, take a look at our Jim’s Skip Bins pricing guide.
Since skip bin companies essentially hire out their equipment to customers and operate on a mobile basis, skip hire businesses are often highly profitable endeavours. And because skips are rented at a fixed price, the profit margins are typically extremely favourable for the business owner. That’s how many of our Jim’s Skip Bin franchise owners have been able to build six-figure businesses with multiple employees!
Hear from one of our Jim’s Skip Bin franchisees, Sukhy Jandu, as he reflects on his growth as a Jim’s Skip Bin business owner.
At Jim’s Skip Bins, we recognise that a lack of cash flow in the early years can be the downfall of many small businesses, which is why we offer our franchisees a unique ‘Pay For Work Guarantee’ of $2,300 per week. With that being said, Jim’s Skip Bins is one of our top 10 divisions with the most unserviced leads, which means that there’s plenty of work to go around. With plenty of customers to service, the vast majority of our Jim’s Skip Bins franchisees never need to fall back on our ‘Pay For Work Guarantee’ as most of them end up making more than that figure from the very beginning.
How do I set up a waste company?
The key to the success of any small business lies in good planning and preparation. The following steps can be used as a general guideline for how you should approach setting up your own skip company:
- Identify the services you’d like to offer
- Select a name for your business
- Sign up for an ABN or register for a company
- Write a skip bin business plan
- Establish a financing strategy
- Set your service prices
- Organise equipment and business insurance
- Purchase equipment
Setting up any business can be daunting, especially if you’re going into it alone. When you start a skip business as a Jim’s Skip Bin franchisee, we put everything in place to make the startup process less intimidating. We provide all of our new onboarding franchisees with full support throughout the the entire business setup process, as well as plenty of other ongoing benefits including:
- Buying power
- Cheaper insurance, phone plans, finance and leasing costs, uniforms, and stationary
- Jim’s Group systems and procedures
- Ongoing training and support
- Access to national leads from day one
- Operational and marketing expertise.
What insurance and licensing do you need for a skip business?
You don’t need to obtain any formal qualifications to start a skip business, so it’s an extremely accessible industry to get into. However, you will need to get a licence to be granted permission to handle and dispose of rubbish in your area. Rules and regulations differ depending on where you live, so contact your state or territory’s Environmental Protection Authority via the links below for more information:
- New South Wales
- Northern Territory
- Western Australia
- South Australia
- Australian Capital Territory
Licensing aside, you will also need to ensure that your business, your employees, and your equipment is fully insured. If you’re setting up a franchise business as part of Jim’s Group, we’d recommend contacting agents at Jim’s Insurance for insurance advice. Our brokers are highly specialised in insuring franchise businesses and sole traders and are well-versed in the ins and outs of setting up a franchise in Australia.
Skip bin business for sale
If operating a skip bin business sounds like the perfect venture for you, get in touch with us at Jim’s Skip Bins today. We receive far more leads than we’re able to service, so we need new, motivated people to join our growing team. Call 131 546 or enquire online today to speak to a local franchisor.
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