Depending on the options you choose, the cost of a typical trash pickup truck or van can be anywhere between $28,000 and $85,000. You are also expected to pay for maintenance, fueling, salary, and utility bills. When it comes to starting a standard valet trash business, one is expected to spend the bulk of the start-up capital on the purchase of standard trash pickup trucks and vans and in some cases a recycling facility.
The valet trash business is rapidly gaining popularity and loads of entrepreneurs are making a steady income from this line of business. The concept is easy. A valet trash business takes away the stress from people who live in apartments, condominiums, and similar facilities by picking up their trash from their doorposts and disposing of such trash.
These are the key areas where you are expected to spend your start-up capital;
The Estimated Cost to Start a Valet Trash Business
- The total fee for registering the business in the United States of America – is $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines, and other software) – $3,300.
- Promotional expenses for the grand launching of the valet trash business for the total amount of – $3,580.
- The cost for hiring a Business Consultant (it includes writing of business plans) – is $2,500.
- Insurance (general liability, workers’ compensation, and auto insurance) coverage at a total premium – $15,000.
- Payment of rent for 12 months at $1.76 per square foot in the total amount of – $105,600.
- The cost for parking yard/facility remodeling – $25,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500) – $3,000
- Operational cost for the first 3 months (salaries of employees, fueling and maintenance of the trash pickup trucks, payments of bills et al) – $120,000
- The cost for office/store equipment (cash register, security, ventilation, signage) – $750
- The purchase of two trash pickup trucks (fairly used) – $45,000
- The cost of launching a website – $600
- Miscellaneous – $10,000
From the rough estimate above, you would need a minimum of two hundred and eighty – three thousand five hundred and eighty USD ($293,580) to start a medium–scale but standard valet trash service business. Please note that this amount includes the salaries of all the staff for the first three months of operation, excluding your maintenance team. You can always contract this aspect of the business to a third-party service provider.
Please note that this is a rough estimate and we usually advise our readers who are interested in starting a valet trash services company to directly contact major dealers in their city to get the real-time prices of the types of pickup trucks and vans they want. The truth is that, if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above.
Factors That Influence the Cost of Starting a Valet Trash Service
Table of Content
- The Brands and Number of Trash Pickup Trucks You Are Starting With
- The Choice of Location
- The Required Licenses and Permits
- The Type of Facility
- Additional Services Offerings
- The Cost of Hiring and Paying a Business Consultant and Attorney
- The Cost of Branding, Promotion, and Marketing of the Business
- The Cost of Insurance
- The Cost of Registering the Business
- Source of Your Supplies and Ongoing Expenses
- Cost of Recruiting and Training Your Staff
- The Cost for Purchasing and Customizing of Uniforms
The Brands and Number of Trash Pickup Trucks You Are Starting With
A major factor that will determine the overall cost of opening a valet trash services company in the United States of America is the number and brand of trash pickup trucks and vans you intend to start the business with. Trust me, if you decide to start with a fairly used trash pickup truck or van, it is going to cost you far less but you will have to spend more on maintenance in the long run.
The Choice of Location
Another major factor that will determine the cost of opening a valet trash services company in the United States of America is the location. In business, location is a key part of what determines the success of a business. There are business consultants cum realtors who are specialized in helping people choose an ideal location for their business.
The truth is that the location you choose to open your valet trash company determines if you will be issued the required business license and permits. Government officials must first inspect your facility to be sure that it is located in the location zoned for such business.
The Required Licenses and Permits
In the United States of America, you cannot open a business without first applying for the mandatory license and permits. Of course, you would need, a building license, zonal permits, CDL, and signage permits amongst others. As expected, these licenses and permits cost money and it will influence the overall cost of opening a valet trash company in the United States of America.
Please note that there may be several inspections you must pass through before you can be issued your licenses and permits – this will also cost you money. To get the overall cost of licensing and permits associated with opening a new valet trash services company in the United States, we will advise that you reach out to your city council or state government. You also need to consider state and federal requirements.
The Type of Facility
The type of facility you want to run your valet trash company from is also a major factor that will determine the overall cost of opening the business in the United States of America. You have the option of renting, leasing, or designing and constructing your valet trash services company from the scratch.
With renting and leasing a facility, you might just have to spend extra to modify the facility to fit into what you have in mind, but there is a limit to how far you can go and it will be dependent on what the landlord of the facility wants. Let us assume that you want to construct your valet trash facility from the scratch.
It means that you will buy the land or property, construct and equip the facility to fit into what you have in mind. With that, you will agree that you are going to spend way more when compared to people that rent or lease a facility.
Additional Services Offerings
Another key factor that will determine the cost of opening and operating a valet trash services company in the United States of America is the additional services offerings of the valet trash services company. For example, a valet trash services company may decide to go into trash recycling.
This means that they will have an additional facility, equipment, and staff members to handle this aspect of the business. In essence, some of the additional services you are going to be offering will cost you more hence you must increase your budget for opening a valet trash services company if you intend to offer additional services.
The Cost of Hiring and Paying a Business Consultant and Attorney
If you want to get your business started on the right foundation, it will be a wise decision to hire the services of a competent business consultant and perhaps an attorney. A business consultant will help with drafting a workable business plan, a marketing plan and strategy, a comprehensive SWOT analysis, and other advisory services that will help you with opening the business.
So also, an attorney will help you with registering the business, drafting contract documents, and offering you all the legal expertise that will help you start the business on the right foundation. Of course, you will agree that these services will cost you money and it will indeed influence the overall cost of opening a valet trash service in the United States of America.
The Cost of Branding, Promotion, and Marketing of the Business
The cost for branding, promoting, and marketing the valet trash service is yet another key factor that will determine the overall cost of opening a valet trash service in the United States of America. Trust me, if you need massive results as it relates to competing and winning a fair share of the available market in your city, then you must be willing to pay for effective branding, promotion, and marketing of your valet trash service.
It is not cheap to come by an expert in branding, promotion, and marketing that will help you compete with brands that are already determining the market direction of the industry in your city. So, if you add the cost of paying a branding and marketing expert, it will surely increase the cost of opening your valet trash services company.
The Cost of Insurance
The cost of paying for insurance policy cover is yet another important factor that will determine the overall cost of opening a valet trash services company in the United States of America. In the United States, you can’t operate a business without having some of the basic insurance policy covers that are required by the industry you want to operate from.
Thus, it is imperative to create a budget for insurance policy cover and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your business.
The Cost of Registering the Business
The cost of registering the valet trash services company is yet another cost that will influence the overall cost of opening the business in the United States of America. Although the cost of registering a business and obtaining all the needed documents is affordable, it will no doubt add to the overall cost of opening a valet trash services company.
Source of Your Supplies and Ongoing Expenses
Another major factor that will determine the cost of opening a valet trash service in the United States of America is the source of your supplies such as disinfectants, cleaning chemicals, hand gloves, spare parts, gas, et al. If you have access to manufacturers of all the supplies you would need, it will sure cut down the cost of running the valet trash services company.
Cost of Recruiting and Training Your Staff
The fact that you are opening your valet trash services company as a new business means that you are expected to recruit and train your staff. The training will help you sell the corporate culture of your organization to the new employees. As expected, it will cost you money to hire expert trainers that will bring your new hires up to speed and that will add to the overall cost of opening a valet trash services company.
The Cost for Purchasing and Customizing of Uniforms
Another factor that will determine the overall cost of opening a valet trash services company in the United States is the cost of the purchase and customizing of uniforms, shoes, and caps amongst others. All these uniforms will cost you money which is why it must be part of your budget if you are looking towards opening a valet trash services company.
Please note that there are other factors not listed above that will surely influence the overall cost of opening your valet trash services company which is why we will advise that you work with a result-driven business consultant in your city to give you the needed guide as it relates to the unique factors in your location that will influence the overall cost of opening your valet trash services company.