As rural communities become denser, individual citizens can no longer simply bury or burn trash and it’s impractical to expect everyone to carry trash to the local dump. Just like indoor plumbing and electricity, efficient and stress-free trash disposal is a major hallmark of modern civilization. Gone are the days of irritating backyard trash heaps and rusting vehicles being left out in the woods.
In this modern age, people at every level of the socioeconomic pyramid want access to easy and convenient trash removal. However, municipal services most often fail to live up to this demand. One profitable alternative most often is privatized trash removal. If you are someone who doesn’t mind getting dirty, a valet trash service business should be on top of your list since it can be extremely profitable.
Steps on How to Write a Valet Trash Services Business Plan
Executive Summary
Clean Neighborhood is a new convenient, accessible, and reliable trash and recycling Pick-up Company that will work with multifamily communities, homes, apartment complexes, businesses, and many more for the sole purpose of establishing and maintaining neat and healthy living spaces.
By extensively complying with standard EPA guidelines, we will carefully put together a team of environmentally sound individuals trained to evaluate all common areas to pinpoint every specific need to establish the perfect plan of action for each space, and also adequately carry out the plan ensuring that each environment is left sanitized.
Company Profile
a. Our Products and Services
Millions of people in the United States experience doorstep trash collection every single night, although a good percentage still don’t have it. At Clean Neighborhood, we strongly believe that the service we offer is genuinely a win-win for both renters and property managers.
For property management companies, they get access to one of the most vital service amenities for apartment complex rentals, coupled with growth in their net operating income for implementing the services. For renters, the first benefit is the convenience factor – they don’t have to bundle their garbage to a dumpster.
At Clean Neighborhood, we will make it easy for them to just place their trash outside of their doorstep into a bin that we provide, and we pick it up.
b. Nature of the Business
Our aim at Clean Neighborhood is to make waste collection and management easy for property management companies and renters with our Clean Neighborhood App. This app allows our Collection Porters to create detailed reports, or Clean Neighborhood Reports, that show clients where and when our collectors are on their property with GPS tracking, and before and after photos. We believe this will ensure peace of mind; something other companies simply cannot compete with. Our offerings also include:
- 5-day per week service
- No cost waste receptacles
- No cost recycling bins for residents
- Detailed activity reports with photos & GPS information
- Free resident appreciation day
- Daily breezeway & compactor cleaning
- Service notification door hangers
c. The Industry
Clean Neighborhood will be located in Raleigh, NC, United States, and is part of the Waste Treatment and Disposal Industry.
d. Mission Statement
Our mission at Clean Neighborhood is to build awareness and create strong accountability amongst our team members. Clean Neighborhood will be built on our consistent desire to lead by example.
e. Vision Statement
Aside from ensuring that your home and businesses stay spotless, our vision at Clean Neighborhood is to foster an environment that is built with a passion to strengthen communities. To achieve this purpose, we will always begin with our end goal in mind. Owing to that, Clean Neighborhood is committed to providing both training and employment opportunities for those who are passionate about environmental health and waste management.
f. Tagline or Slogan
Clean Neighborhood –Assuring a Clean Environment
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
Clean Neighborhood will be registered as a Limited Liability Company in the State of North Carolina. One of our major aims at Clean Neighborhood is to help our clients maintain a healthy, pleasant, and clean living environment without worrying about overflowing trash cans, clutter, or general garbage.
h. Organizational Structure
Our plan at Clean Neighborhood is to only hire people that are qualified, hardworking, innovative, and customer-centric and who are eager to help us build a modern business. We plan to fill up the following portfolios.
- Chief Operating Officer
- Admin and HR Manager
- Transport and Logistics Manager
- Marketing and Sales Executive
- Accountant
- Service Operators
- Truck Drivers
- Front Desk Officer
i. Ownership/Shareholder Structure and Board Members
Clean Neighborhood will be solely owned and managed by Founder Michael Brooks, who will also be the only investor at Clean Neighborhood.
SWOT Analysis
a. Strength
- Automation of activities and processes
- Superb performance in new markets
- Highly skilled workforce through successful training and learning programs.
- Local authorities are involved In the community’s waste
b. Weakness
- Well established waste management companies
- Gaps in our service range
- Lack of investment in research and development
c. Opportunities
- New technology
- Market development
- New environmental policies
- Stable free cash flow
- Waste management is an important national agenda that the government is considering
i. How Big is the Industry?
According to industry reports, measured by revenue, the United States Waste Treatment & Disposal industry is $22.3bn in 2023.
ii. Is the Industry Growing or Declining?
According to reports, the Waste Treatment & Disposal Services industry in the US grew by 1.5% per year on average between 2017 and 2022. The industry is still expected to increase 3.4% in 2023.
iii. What are the Future Trends in the Industry
According to industry reports, every aspect of the waste industry (public and private; collection, processing, and disposal) has experienced the need for service tracking software. In the United States, a good number of municipalities are switching from traditional methods of accountability to a field of GPS solutions.
Owing to that, both private and public waste collection companies are adequately managing their workforce, billing, and reporting procedures. In addition, the influence of a technology-based platform offers raw data for these companies. Note that by using this software, valet trash service companies benefit from the following:
- Increase service levels
- Implement recycling initiatives
- Eliminate clerical errors from manual data entry and billing
- Expand their clientele with retention
iv. Are There Existing Niches in the Industry?
Regardless of the demographics a valet trash business is targeting, the service will have to cater to the needs of customers from a vast range of housing backgrounds. They include;
- Singular apartment renters
- Multifamily units
- Senior care facilities
- Standard household garbage
- Electronics and furniture disposal
v. Can You Sell a Franchise of your Business in the Future?
No, we do not intend to sell franchise opportunities at Clean Neighborhood in the future. Although we plan to grow and expand to other urban areas in the United States, all our locations will be fully company-owned and managed.
d. Threats
- Intense competition
- Rising pay level
- Changing consumer buying behavior
- New technologies developed by the competitor or market disruptor
i. Who are the Major Competitors?
- WeDoTrash
- Valet Living
- Doorstep Details Valet Trash
- Trash Butler
- Benco Valet Trash Service
- Trashbusters
- National Doorstep Pickup
- Accelerated Waste Solutions
ii. Is There a Franchise for Valet Trash Services Business?
- Accelerated Waste Solutions: $127,200 – $247,100.
- Junkluggers: $105,535 – $230,760
- First Valet Trash: $58,150 – $84,350
- Doody Calls: $$35,612 – $50,000
iii. Are There Policies, Regulations, or Zoning Laws Affecting Valet Trash Services Business?
Yes. For example, a good number of cities will only permit a specific number of trash collectors to operate within their jurisdiction. In this line of business, you’ll need to read up on the necessary local laws that concern recycling hazardous and electronic waste. Note that the Secretary of State’s office or the local chamber of commerce can help you to negotiate the red tape along the way.
Marketing Plan
a. Who is your target audience?
i. Age range
As of 2019, Raleigh, NC had a population with a median age of 34.5 years.
ii. Level of Education
According to reports, Raleigh remains one of the top 5 most educated cities in the US based on the percentage of residents who held college degrees.
iii. Income Level
Notably, the median household income of Raleigh according to reports is $69,333.
iv. Ethnicity
- White (non-Hispanic): 51.6%
- Black or African American (non-Hispanic): 25.76%
- Native American: 0.23%
- Asian: 5.01%
- Pacific Islander: 0.04%
- Other/Mixed: 4.41%
- Hispanic or Latino: 12.94%
v. Language
English remains the official language in Raleigh.
vi. Geographical Location
Raleigh is the capital of the state of North Carolina and the seat of Wake County in the United States. Also, note that this is the second-most populous city in North Carolina.
vii. Lifestyle
Part of what makes Raleigh ideal is the people who call the city home. Living in Raleigh are some of the nicest, most welcoming people in the world. Note that the happiness of the people who live in Raleigh is a product of everything Raleigh has to offer including the number one place for jobs, awesome weather, and affordability, unlike most other cities.
b. Advertising and Promotion Strategies
- Network With Realtors, Project Management Companies, and All Those Involved In The Home Buying Process
- Acquiring Leads From Providers
- Email Marketing To Previous Customers & Referral Contacts
- Using our Collection Trucks as Mobile Billboards
i. Traditional Marketing Strategies
- Referral
- Broadcasting
- Cold-calling
- Handing out flyers or brochure
- Billboards at strategic places
- Direct mail
- Print ads
- Event marketing
ii. Digital Marketing Strategies
- Use a website builder like Wix to quickly create a professional website
- Set up a Google My Business page to place Clean Neighborhood on the map
- Create a Facebook Business Page to start building a personal vibe around our business.
- Paid advertising like Google Ads and Facebook Ads
- Network with real estate agents.
- Create a referral program.
- Geo-Fencing Ads
- Retargeted Ads
iii. Social Media Marketing Plan
- Show our Team At Work On Instagram
- Encourage Engagement
- Post Consistently
- Make Posts Visual and Add Relevant Hashtags
- Pay Per Click
- Use Facebook Advertising.
- Engage with Customers and Followers
- Post About Valet Trash and Waste Management Topics
c. Pricing Strategy
At Clean Neighborhood, we will start our pricing with a month-by-month contract at a low rate that can be altered as we go. We believe that this will allow customers to try our services and also give us a way to figure out the best price point for our basket of services. Within a few months, we strongly believe we will have a good idea of what will work on a long-term basis.
Sales and Distribution Plan
a. Sales Channels
Our sales strategy at Clean Neighborhood will involve getting the word out about our services to potential customers, educating them on the value they stand to gain. Also, note that our current management team will serve as the principal sales force when operations begin.
At Clean Neighborhood, we believe our sales force will increase as business demand permits. In the first six to twelve months of operation, our sales team will focus all energy on multifamily communities, homes, apartment complexes, and businesses. Face-to-face contact and direct mail selling are part of the selling channels.
b. Inventory Strategy
At Clean Neighborhood, we intend to use OptimoRoute to manage inventory and optimize our routes. Just by inputting our customers’ addresses, we can receive the most time- and cost-effective pickup and drop-off routes. We believe that by implementing route optimization software early in our operations, we can genuinely grow, expand and scale our business. With route optimization software, we can easily route hundreds of stops for a large fleet without spending much more time planning.
c. Payment Options for Customers
Below are the payment options we intend to make available to our clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Return Policy, Incentives, and Guarantees
At Clean Neighborhood, we will operate a no refund policy, and this entails we will not provide compensation for services rendered at our facility. However, just as with licenses and permits, we will purchase adequate insurance to adequately protect our employees and workers.
e. Customer Support Strategy
At Clean Neighborhood, we believe our customer support strategy is the core of the main strategy:
- Emphasize high-value, high-quality services.
- Build a relationship-oriented business.
- Focus on multifamily communities, homes, apartment complexes, and businesses
Operational Plan
Our clients will be advised to place their bagged and tied waste into the provided container and place it outside on their doorstep between 6:00 PM and 8:00 PM, Sunday through Thursday for pick-up. Note that our trash valets will collect all trash and deliver it to the community’s dumpster or compactor. We aim to model proper trash disposal while educating our clients on the importance of health and safety.
a. What Happens During a Typical Day at a Valet Trash Services Business?
Aside from collecting trash, the owner is still expected to complete several tasks throughout each day. And the daily business tasks may include:
- Taking inventory of supplies and ordering new supplies when necessary
- Scheduling employees
- Interviewing potential new employees
- Speaking with potential customers about possible upcoming jobs
- Contacting current customers about current jobs
- Troubleshooting with unsatisfied customers about how to improve their valet trash service experience
- Developing digital and print marketing campaigns
- Invoicing clients and managing payroll (if these tasks are not outsourced to a private accounting company)
- Working with other waste management companies to coordinate waste disposal
b. Production Process
There is no production process at Clean Neighborhood.
c. Service Procedure
Our service process at Clean Neighborhood includes;
- Overcome perception issues that may exist with door to door waste collection
- Establish and build relationships and trust with customers to help shield them from future competition.
- Expand rapidly to control the market.
- Offer reasonable prices.
- Get investment.
d. The Supply Chain
Our plan at Clean Neighborhood is to predominantly rely on online advertising and lead generation strategies since most people seeking valet trash services tend to first search online for information. Therefore, we plan to launch a full-fledged online marketing campaign that will be inclusive of paid, social media, and website campaigns. In addition, we will approach potential commercial clients directly, either through cold calling or e-mail to arrange pitch meetings.
e. Sources of Income
- Residential Services
- Weekly curbside garbage pickup
- Monthly curbside garbage pickup
- Recycling fees
- Yard and food waste – bi-weekly pickup
- Commercial Services
- Weekly container pickup
- Monthly container pickup
- Miscellaneous Services
Financial Plan
a. Amount Needed to Start your Valet Trash Services Business?
We need around $184,000 to $320,000 to start up Clean Neighborhood.
b. What are the Costs Involved?
- Business registration – $1,250.
- Business insurance, permits, and license – $5,500
- Rent – $150,000.
- Waste collection trucks – $150,000
- Inventory management software and office supplies – $4,800
- Supplies, including trash removal items and trash bags– $6,200
- Uniforms or other forms of employee identification – $4,000
- Advertising, marketing, and accounting costs – $13,700
c. Do You Need to Build a Facility?
No, this business can be started from a rented commercial space used primarily to store trash temporarily before they get dropped off. It is also necessary to set up a contract with the right landfill to receive the trash. Most often, a landfill or dump will charge a garbage collector by the ton.
d. What are the Ongoing Expenses for Running a Valet Trash Services Business?
- Updating reusable equipment
- Keeping an inventory of single-use equipment (like trash bags)
- Payroll
- Insurance
- Transportation
- Bills for large-scale removal of collected and stored waste
e. What is the Average Salary of your Staff?
- Chief Operating Officer: $67,800
- Admin and HR Manager: $52,000
- Transport and Logistics Manager: $47,600
- Marketing and Sales Executive: $45,880
- Accountant: $42,200
- Service Operators: $38,900
- Truck Drivers: $36,240
- Front Desk Officer: $30,890
f. How Do You Get Funding to Start a Valet Trash Services Business
- Source money from personal savings and sale of personal stocks and properties
- Apply for a loan from your bank/banks
- Apply for business grants and seed funding from the government, donor organizations, and angel investors
- Source for soft loans from your family members and friends.
Financial Projection
a. How Much Should You Charge for your product/Service?
It can be quite challenging to note exactly how much a valet trash service can charge, as the price of the service will vary depending on the customer’s requirements. Note that the cost charged will often depend on several factors, including property type and size, special collection hours, frequency of service, and, in some circumstances, contract terms.
b. Sales Forecast?
- First Fiscal Year (FY1): $250,000
- Second Fiscal Year (FY2): $700,000
- Third Fiscal Year (FY3): $1.3 million
c. Estimated Profit You Will Make a Year?
At Clean Neighborhood, we expect to make;
- First Fiscal Year (FY1): $87,500 (35% of revenue generated)
- Second Fiscal Year (FY2): $315,000 (45% of revenue generated)
- Third Fiscal Year (FY3): $520,000 (40% of revenue generated)
d. Profit Margin of a Valet Trash Services Business Product/Service
According to reports, the net profit margin for waste management and disposal businesses as of 2022 is 10.09%.
Growth Plan
a. How do you intend to grow and expand?
Just like we noted earlier, Clean Neighborhood does not intend to sell franchise opportunities in the future. While we plan to grow and expand to other urban areas in the United States, all our locations will be fully company-owned and managed.
b. Where do you intend to expand to and why?
At Clean Neighborhood, we plan to expand to cities with vast multifamily community markets. According to reports, the U.S. needs roughly 328,000 new multifamily units annually through 2030. Therefore, in the coming years, demand is expected to be high and we at Clean Neighborhood will grow with this demand and expand into these cities;
- Louisville, Kentucky
- Northern New Jersey, New Jersey
- San Antonio, Texas
- Tampa-St. Petersburg, Florida
- Nashville, Tennessee
- Philadelphia
- Orlando, Florida
- Charlotte, North Carolina
Exit Plan
We at Clean Neighborhood believe family succession to be our possible business exit strategy. This is mainly because this business exit strategy, unlike others, won’t need extreme or excessive involvement of external parties. In addition, it remains one of the most straightforward options when done right, and we intend put extensive plans in place to ensure success.