How To Start a Dumpster Rental Business

If you want to learn how to start a dumpster rental business, you have come to the right place. The best thing about starting a dumpster rental business is that you don’t have to be available on a specific schedule to operate this business since, aside from customer phone calls and dumpster deliveries and pickups, you don’t have to be available all of the time. Furthermore, the initial investment in order to start a dumpster business is fairly minimal. This step-by-step guide will help you to learn more about this business venture and see whether it’s the correct step for you to take as an entrepreneur.

1. Familiarize yourself with Dumpster Rental Industry

There is no getting rid of the trash. Since trash is always in demand, dumpster rental companies provide vital services to a wide range of clients. The dumpster rental businesses typically rent out a variety of dumpsters. If you are wondering who rents the dumpsters, it’s the customers from the residential, commercial, and industrial sectors who regularly rent dumpsters for short-term or long-term use. When a dumpster is rented, the rental business delivers it to the specified location and then returns it at the end of the rental period. If you want to add more services to your dumpster rental business, you can also remove dumpsters on a regular basis to dispose of their waste.

Think about it, customers don’t have to worry about purchasing a dumpster that they’ll only need temporarily. This creates a unique business opportunity for someone who can provide dumpster rental services to these customers. Dumpster rental companies benefit from rental fees on their dumpsters on a regular basis, allowing them to profit from their one-off dumpster purchases and possibly scale the business by purchasing more dumpsters in the near future.

Market Research

Most dumpster rental companies cater to residential, commercial, and industrial clients. Their typical target market consists of anyone with significant waste disposal needs, such as those generated by a construction project, home renovation, or restaurant and cafe business.

Real estate agents are another excellent source of referrals for landlords and property owners in need of cleaning services. Make sure you perform your due diligence in conducting the market research for your dumpster rental business.

How much does it cost to buy a dumpster?

You can buy small dumpsters for as low as $1200. However, if you want to start a dumpster business you should buy at least a couple of 20 yds dumpsters which will cost you around $6000 each.

How much does it cost to start a dumpster rental business?

You could start a dumpster rental business at a basic level for around $14,000 (assuming you buy two 20yds dumpsters). An extra $5000 to $10,000 could get you off to a great start. That being said, if you want to operate on a bigger scale and provide waste disposal services as well, you will also need to buy a roll-off truck which alone costs around $70,000. Therefore, it will cost you around $80,000 to start a dumpster rental business on a big scale with two dumpsters and a truck.

Keep in mind, if you want to go really cheap, you can buy as you grow. If you don’t mind a little hard work, dumpster rental is one of the best businesses to start and scale.

Is dumpster rental business profitable?

A dumpster rental business is incredibly profitable if marketed properly. The success of your dumpster rental business will be determined by the number of clients you find. Buying a single 20yds dumpster will cost you around $6000. And you can rent the same dumpster for around $400 per week to other businesses. That means you will only need to find a renter of your dumpster for just 15 weeks to make all your money back. After that everything is your profit.

Is dumpster rental business worth it?

Absolutely, starting a dumpster rental business is incredibly worth it. You can realistically buy just one dumpster and start your business journey from there. The best thing is you can even start a dumpster rental business by buying used dumpsters. A single 20 yds dumpster can generate anywhere from $350 to $450 per week. Furthermore, this business is highly scalable and you can reinvest a portion of profit back into the business and scale it to a million-dollar rental business in no time.

2. Plan your Dumpster Rental Business

Planning is critical for the success of any business. The same applies to the dumpster rental business too. Let’s get into some of the key steps you will need to understand while planning your dumpster rental business.

Choose a name for your dumpster rental business

Whether you want to start a dumpster rental business or a drone rental business, you must choose a name that reflects your values and beliefs.

Keep in mind that the legal business name must comply with state naming rules in the states where you intend to operate your business; otherwise, a state may refuse to accept the documents filed to form or qualify the company.

Prior to deciding on a business name, it is also a good idea to talk about branding and how it will affect your company. The main question here is whether your legal business name will also be your brand name, or whether your brand name will be distinct from your legal name.

To be honest, it is preferable to use your legal business name as your brand name when first starting out. Why? You may inquire. The reason for this is that it simplifies things, is extremely simple, and is significantly less expensive.

However, if you operate an informal business (sole proprietorship, limited liability partnership, or general partnership), some states require you to use your surname as the legal name of your company.

Would you mind if your surname served as your legal business name? If the answer is YES, you can proceed to the next step. On the other hand, if your answer is NO, please stick with me.

If you do not want to use your surname as your legal business name, you must file a Fictitious Business Name Statement with the county in which your dumpster rental business’s head office is located.

Shopify’s Business Name Generator is super useful while brainstorming brandable names for your dumpster rental business. Once you decide the name of your dumpster rental business, you need to perform three final checks.

  • First, check your State’s business name database to see if your desired business name is available.
  • Second, do a domain name search to check if your business name is available as If it is available go ahead and register the domain before anyone else gets it. BlueHost offers domain names free of cost if your purchase 1-year hosting package with them. You can use the tool below to see if the domain name is available.

If the name for your dumpster rental business is available you can choose to trademark it, but honestly – don’t bother about it right now. It is a lengthy process and will cost you around $600. I would rather spend the money and time on the marketing channels.

Choose a dumpster rental business model

At the very least, you will need a solid business model to start a successful dumpster rental business. Don’t just get into the rental business because it sounds cool and people are making a lot of money in it.

Consider what your dumpster rental service’s USP (Unique Selling Proposition) will be. What inventive methods will you employ to attract customers to your business? What is your strategy for retaining current customers?

There are hundreds of dumpster rental businesses in every town, and hundreds more are popping up every month. The bad news is that approximately 95 out of every 100 new dumpster rental businesses fail miserably. I’m not trying to scare you; I’m simply stating the facts. As a result, to ensure that your dumpster rental business does not fail, you must have a solid business model in place.

Also, keep in mind that you should be prepared to put in at least 60-100 hours per week on your new dumpster rental business, especially in the beginning when you will need to learn a lot of new things and will most likely be on your own.

Dumpster rental business plan

If you want to start a successful dumpster rental business, you will need a compelling business plan at a bare minimum. A well-written business plan should explain the company’s core objectives and how it plans to achieve them. One of the other purposes of a business plan is that it makes your business look professional and appealing to prospective lenders.

All in all, a well-written actionable business plan is a crucial document for your dumpster rental business. Without it, you’d be running around like a headless chicken. 

A compelling business plan has many sections, some of the must-includes are:

  • Executive Summary
  • Business Description
  • Market Analysis
  • Competitor Analysis
  • Services to Offer
  • Competitive Pricing Strategy
  • Marketing Strategy
  • Fundings
  • Financial Projections

You can use business plan software like BizPlan and Enloop to compose a professional-looking business plan. However, don’t get lazy and pay someone 10 bucks to write a business plan for your dumpster rental business. You will need professional high-quality work.

3. Register your Dumpster Rental Business

You must first register your dumpster rental business in order to operate it as a legal entity. However, before registering the company, you must first understand and choose a business structure for your dumpster rental company. Because how you set up your dumpster rental business will affect your taxes and legal obligations, you’ll want to make an informed decision.

These are some of the most common forms of business structures for a dumpster business in the US:

a. Sole Proprietorship

A sole proprietorship is one of the simplest and most straightforward business structures for your dumpster rental business. As a sole proprietor, you have complete control over your business. You will receive all of the company’s profits directly and will be responsible for all of the company’s taxes and liabilities.

Operating a dumpster rental business as a sole proprietor does not necessitate any state formation filings. However, keep in mind, you may need to do some other state filing, depending on the scale and nature of your business operation.

b. Limited liability company (LLC)

As the name implies, an LLC provides its owners with some level of personal liability protection. LLCs are taxed differently as well. Keep in mind that an LLC can have one or more managers.

An LLC is treated as the same tax-paying entity as its members in this business structure. All business tax obligations are transferred to the member’s tax returns. Keep in mind that business profits are subject to self-employment taxes as well.

In the case of an LLC, if you choose to name your business something other than your name (for example, Sarah Peters Dumpster Rentals), you must file a Fictitious Business Name Statement with the county where the head office of your dumpster rental business is located.

c. Corporation

The biggest advantage of registering your dumpster rental business as a corporation is the separation of your business affairs from your personal life. As a legal entity existing separately from its owners, a corporation limit’s its owners from personal liability.

However, a key thing to keep in mind, while registering your dumpster rental business as a corporation is that both the corporation and the shareholders pay taxes. This means double taxation on all the business income.

You can raise money for your corporation through the sale of shares and the corporation will continue operating even after the death of the owners.

Don’t go the solo DIY route here, it’s too risky if you plan to go public at some point or bring in some more shareholders. Consult a business lawyer before forming a corporation for your dumpster rental business.

4. Register for Taxes and Obtain an EIN

As a responsible business owner, you must always follow the regulations. That is to say, you must adhere to all applicable tax, licensing, and employment laws. Learning about any legal laws that may apply to your dumpster rental business now could save you a lot of time, money, and stress later. The company entity you choose, as well as other aspects of your dumpster rental business, will affect what taxes you must pay and how you must file. To make sure you’re on the correct track, speak with a good accountant right now.

If your dumpster rental business will employ other individuals, you’ll need an employer identification number. This is also known as an EIN or a tax ID number for a business. You can obtain your EIN from the IRS online for free and use it when filing taxes for your dumpster rental business. It is also required if you want to open a business bank account, get a business credit card, or apply for a business loan. Even if you do not intend to hire employees, obtaining an EIN has numerous advantages.

5. Get Funding for your Dumpster Rental Business

Even if you have the best dumpster rental service in the country that can capture the hearts of customers from miles away, if you don’t have enough money, your rental business will fail. It may sound absurd, but in order to make money, you must first have money. There is no escaping the fact that purchasing a dumpster is costly. Well, if it wasn’t so expensive, everyone would buy one, and the dumpster rental sector would be dormant. Not to mention the fact that you may be paying exorbitant rent, marketing your service, and hiring personnel with lucrative salaries and benefits.

Numerous incentives, subsidies, loans, and equity investments are available to small enterprises like dumpster rental businesses. Regardless of the funding source you choose, you must have the following documents (at a bare minimum):

  1. A Dumpster Rental Business Plan
  2. Projected Financial Statements
  3. Tax returns of both the business owner and the business itself (when available)
  4. An explanatory document on how the money will be used
  5. A description of services offered by your dumpster rental business

After you’ve done the maths and figured out how much money you’ll need for your dumpster rental business, you may look into the following choices.

Obtain Funds through SBA Backed Lenders

Even if you have little to no money and want to start a dumpster rental business, you may be eligible for an SBA loan. The United States Small Business Administration (SBA) works with lenders to provide loans to small businesses around the country.

One thing to keep in mind is that the agency does not make direct loans to small business owners. Instead, it develops guidelines for its lending partners, community development organizations, and micro-lending institutions.

SBA-guaranteed loans have a number of benefits. These loans’ rates and prices are frequently equivalent to those of non-guaranteed loans. Furthermore, SBA-backed loans come with continuing assistance to help you start and run your dumpster rental business. Furthermore, certain SBA loans require no collateral, have lower down payments, and have more flexible overhead limits.

Let’s get familiar with three of the most popular SBA loans.

  1. 7(a) Loans: This type of loan guarantees a portion of the total amount, cap interest rates, and limit fees.
  2. 504 Loans: These types of loans provide long-term, fixed-rate financing to purchase assets for your dumpster business.
  3. Micro-Loans: These are the loans that provide $50,000 or less to help small businesses start up and grow.

Now that you understand the whole SBA lending process, it’s time to know some of the most popular SBA-backed lenders in the USA for your dumpster rental business:

  1. US Bank
  2. Wells Fargo
  3. United Midwest Savings Bank
  4. Live Oak
  5. MidFirst Bank

Obtain Funds through Banks

If you are unable to obtain funding for your dumpster rental business through state-level agencies or SBA-backed loans, your next step is to seek regular small business loans from banks. As a result, you must conduct due diligence and understand how lenders evaluate your dumpster rental business. If you do, you may be able to obtain a traditional loan with a longer-term and a higher loan amount.

Obtain Funds through P2P Networks

The term “peer to peer” refers to a type of financing that is very similar to crowdsourcing, except that your loan application is reviewed and given to a large number of lenders and investors.

This type of funding is an excellent choice if traditional lenders have turned down your dumpster rental business loan application. The following are some well-known peer-to-peer lending companies:

  1. Prosper
  2. Peerform
  3. Lending Club
  4. Funding Circle

6. Promote your Dumpster Rental Business

If you do not have a large sum of money to invest right away, you must understand what it takes to successfully promote a dumpster rental business. You’ll also need a solid marketing strategy and communication strategies in place.

Let’s go over some of the traditional and modern marketing strategies you can use to promote your dumpster rental business.

Build a website

The next step is putting your business name out there on the web for everyone to see. Websites are a crucial part of the dumpster rental business. You need to have a professional website for your dumpster rental business.

Make sure to utilize the power of the internet. Additionally, you must customize your website and make it align with your brand. You can put pictures of your dumpsters plus testimonials and make an excellent impression on your visitors. After all, actions speak louder than words.

Don’t forget to include your mission statement on your website and let your customers know why they should rent from you. Having a website creates a digital presence for your dumpster rental business so your potential customers can search and find you on the web.

You can read my guide on how to make a basic website for your small business if you want to do it yourself. However, if you want someone else to work on the technicalities while you focus on acquiring more clients for your business, we are ready to help you. Our $499 digital package comes with a professionally designed website, custom email, 24/7 support and maintenance, SEO, and digital marketing services. You wouldn’t want to miss the deal. Contact us today before the deal runs out.

Establish social media accounts

Create a digital presence for your dumpster rental business by establishing social media accounts. You must be strategic in this regard, as you do not want to waste your time appearing on all social networks, particularly those that do not align well with your target audience.

You want your dumpster rental business to be on, depending on the size of your operation:

  1. Twitter
  2. Facebook
  3. Instagram
  4. YouTube
  5. Pinterest
  6. LinkedIn

Nowadays, almost everyone uses social media not only to communicate with friends and family but also to shop for goods and services. Getting your dumpster rental business in front of your target audience can result in more leads and sales. Moreover, it can also be used to keep current customers informed and to attract new customers.

Run Paid Ads

Paid Ads have the ability to target prospective customers within a specific demographic and region, making them an excellent tool for your dumpster rental business. Consider running paid ads through services like Facebook Ads, Yelp, or Google AdWords. Furthermore, the best thing about paid advertisements is that they produce results quickly, allowing you to scale your rental business both vertically and horizontally.

If you need any professional help to run paid ads for your dumpster rental business, please contact us. We will be more than happy to provide you with help and resources for absolutely free.

Distribute Flyers and Business cards

The majority of dumpster rental decisions are made by the people who live in a house(not apartments) or business owners. If they have your contact information, they are more likely to contact you. Therefore, the key is to establish your brand’s presence and identity.

  • Have a strong brand (logo, colors, font)
  • Include specifics and promotions.
  • Getting in Touch

Business Listing and Directories

Businesses and Individuals come to the sites like Yelp or YellowPages to search for the right services. Make your dumpster rental business listed in directories sites such as Google, Yelp, Porch, Home Advisor, Houzz, Thumbtack, Angie’s List, and other directories. Therefore, all you need to do is:

  • Create a business profile
  • Ask customers for reviews on your business profile
  • Update/showcase your dumpsters