How to Start a Valet Trash Business

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A valet trash service company is a trash collection service business that is made available by a privately-operated company. They collect and remove the trash from the doorsteps of residents predominantly in multi-family communities and estates.

Statistics have it that in the United States of America alone, there are about 11,824 licensed and registered waste collection companies (valet trash service companies inclusive) scattered all across the length and breadth of the country and they are responsible for employing about 217,713 employees.

The industry rakes in a whooping sum of $45 billion annually (benchmarked in 2018) with an annual growth rate projected at 1.7 percent within 2016 and 2022.

Steps on How to Start a Valet Trash Business

Conduct Market Research

If you are considering starting a valet trash service business, you need reliable market research to be able to maximize profits from the business. The first step in the market research process should be to develop market-based research questions in line with your overall business goal and objective.

In this regard, you should source for information that will help you maximize your business, give you a reliable hint on what your potential market will be looking out for from a valet trash service business, and also help you operate your valet trash service business with less stress.

a. Who is the Target Market for Valet Trash Business?

Multi-family residences
Condominium complexes
Student housing
Retirement communities
High-rise residences
Gated communities/Estates
Vacation resorts

b. Is Valet Trash Service Business a Profitable Business?

Yes, the valet trash service business is profitable. Available data shows that a self-operated valet trash business with a 1,000-unit portfolio could earn $13,000 per month off their resident’s trash. This is over $150,000 annually. Since it came onto the scene in the last decade, valet trash has exploded in use as a result of the financial impact it can have on property managers.

c. Are There Existing Niches in the Industry?

No, there are no existing niches when it comes to the valet trash service business because the valet trash service business is a subset of the waste collection services industry.

d. Who are the Major Competitors?

Trash Butler
We Do Trash
National Trash Valet
WastePoint – Valet Living
National Doorstep Valet Trash Service
Valet Waste
A1 Valet Trash
Valet Trash Authority
Benco Valet Trash Service LLC
Pro Valet Trash LLC
VTS Valet Garbage Service
Luxury Apartment Pick Up Valet Trash Company
Garbage Grabbers Valet Trash
The Pickers Valet Trash Company
Cleanup Trash Valet LLC
USA Valet Trash Solutions
Retriever Valet Trash Service, LLC
Empire Valet Trash, LLC
WellKept | Valet Trash Services
Trash Valet, LLC.

e. Are There County or State Regulations or Zoning Laws for Valet Trash Service Business?

No, there are no county or state regulations or zoning laws for valet trash service business, but players in this industry are expected to work with the existing regulations governing similar businesses in the county where their business is domiciled.

Please note that trucks used for collecting trash are required to stop at motor carrier safety and weight inspection stations when signs direct them to do so.

So also, all across the United States, a valet trash truck can be rented by someone without a commercial driver’s license (CDL) license if it has a gross vehicle weight rating (GVWR) of 26,000 pounds or less. Any truck or van with a rating of 26,001 pounds or more requires at least a Class B CDL.

f. Is There a Franchise for Valet Trash Service Business?

Yes, there are franchise opportunities for valet trash service business, and here are some of them;

First Valet Trash
Accelerated Waste Solutions
The National Trash Valet Success System™.

g. What Do You Need to Start a Valet Trash Service Business?

A Feasibility Report
Business and Marketing Plans
Business Licenses and Permits
Valet Trash Collection Trucks
Commercial Driver’s License (CDL) (at least a Class B CDL)
Insurance
EIN (Employer Identification Number) / Federal Tax ID Number.
A Corporate Bank Account
IRP Plates
Employees
Operational Capital (For Ongoing Expenses)

Choose a Memorable Business Name

When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.

Some of the catchy business name ideas suitable for a valet trash business are;

Creative Valet Trash Business Name ideas

We Move Trash© Valet Trash Service, Inc.
Garbage® Valet Trash Service, LLC
Clean Environ© Valet Trash Service Company, Inc.
Trash Solutions® Valet Trash Service Company, Inc.
Garbage King™ Valet Trash Service Company, Inc.
Green Line™ Box Truck Company, LLC.
Luke Elton and Co© Valet Trash Service Company, LLC
Valet Guys® Valet Trash Service Company, Inc.
Star Collectors© Valet Trash Service Company, Inc.
One Trash© Valet Trash Service Company, Inc.
Safe Hands® Valet Trash Service Company, LLC
Green Trash® Valet Trash Service Company, LLC
Tyrone Moses™ Valet Trash Service Company, LLC
Don Pedro© Valet Trash Service Company, Inc.
Sun Rise® Valet Trash Service Company, Inc.
David Landover™ Valet Trash Service Company, Inc.
Mighty George™ Valet Trash Service Company, Inc.
Castor Harrison© Valet Trash Service Company, Inc.
San Diego® Valet Trash Service Company, LLC
No Trash™ Valet Trash Service Company, Inc.

Register Your Business

a. What Type of Business Structure is Best for Valet Trash Service Business?

Even though there are several options such as sole proprietorship, partnership, limited liability company (LLC), and corporation, when it comes to the business structure of a valet trash service business, the one that most players consider is an LLC.

It is common to consider an LLC because providers want to protect themselves from lawsuits. Please note that an LLC will need an EIN if it has employees or if it will be required to file any of the excise tax forms listed below.

b. Steps to Form an LLC

Choose a Name for Your LLC.
File Articles of Organization.
Choose a registered agent.
Decide on member vs. manager management.
Create an LLC operating agreement.
Comply with other tax and regulatory requirements.
File annual reports.

c. What Type of License is Needed to Open a Valet Trash Service Business?

General Business License
Commercial Driver’s License (CDL) (at least a Class B CDL)
IRP Plates
Zonal Permits
Signage Permit
Operational State Facility Inspections for your parking

d. What Type of Certification is Needed to start a Valet Trash Service Business?

You don’t need any certifications to start a valet trash service business.

e. What Documents are Needed to Open a Valet Trash Service Business?

DBA
EIN
Business and liability insurance
Federal Tax Payer’s ID
State Permit and Building Approval (For your parking)
Certificate of Incorporation
Commercial Driver’s License (CDL) (at least a Class B CDL)
IRP Plates
Business License
Business Plan
Employment Agreement (offer letters)
Operating Agreement for LLCs
Insurance Policy
Online Terms of Use
Online Privacy Policy Document
Contract Document
Company Bylaws
Memorandum of Understanding (MoU)

f. Do You Need a Trademark, Copyright, or Patent?

If you are considering starting your own valet trash service business, you may not have any need to file for intellectual property protection or trademark. This is because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

Cost Analysis and Budgeting

a. How Much Does It Cost to Start a Valet Trash Service Business?

A valet trash service business will cost from $100,000 – $300,000 to start and that can easily go higher depending on your overall business goals and objectives.

For example, the price of a valet trash truck depends largely on its size. Light-duty class 2 and 3 trucks run from $25,000 to $45,000. Medium duty class 4 trucks run from $35,000 to $50,000. Medium duty class 5 trucks run $45,000 to $70,000.

b. What are the Costs Involved in Starting a Valet Trash Service 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 totaling – $1,200.
Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $80.
The cost for hiring a business consultant (writing of business plans inclusive) – is $4,500.
Insurance (general liability, workers’ compensation, and property-casualty) coverage at a total premium – $12,400.
The cost of logistics software, accounting software, CRM software, and Payroll Software – $1,500
The cost for leasing a facility (long-term lease agreement) – is $105,600.
The cost for facility remodeling and installations – $20,000.
The cost for the purchase of valet trash collection trucks and vans: $100,000
Other start-up expenses including stationery – $500
Phone and utility deposits will cost – ($2,500)
Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $50,000
The cost for store equipment (cash register, security, ventilation, signage) – $3,150
The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $8,000.
The cost of launching an official website – $600
The cost for a grand opening party – $3,000
Miscellaneous – $2,500

c. What Factors Determine the Cost of Opening a Valet Trash Service Business?

The size of valet trash service business (number of collection trucks)
The choice of location
The required licenses and permits
The cost of hiring and paying a business consultant and attorney
The cost for branding, promotion, and marketing
The cost for furnishing and equipping the facility
The cost for insurance policy covers
The cost for registering the business
Cost of recruiting and training your staff
The cost for the purchase and customizing of uniforms
The cost for the grand opening of the valet trash service business

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

It is not compulsory to build a new facility for your valet trash service business, but, if you have the required finance, it will pay you to build your parking facility and administrative office. The truth is that building or reconstructing a facility will help you come up with a facility that will perfectly fit into your overall business goals and vision.

e. What are the Ongoing Expenses of a Valet Trash Service Business?

Gas and lubricants
Utility bills (internet subscriptions, phone bills, signage and software renewal fees et al)
Salaries of employees
Trucks maintenance
Insurance
Marketing costs

f. What is the Average Salary of your Staff?

Chief Operating Officer (Owner) – $50,000 Per Year
Admin and HR Manager – $40,000 Per Year
Transport and Logistics Manager $38,000 Per Year
Marketing and Sales Executive (Business Developer) – $34,000 Per Year
Accountant $34,000 Per Year
Valet Trash Collection Truck and Van Drivers – $30,800 Per Year
Customer Service Officer (Receptionist) – $26,100 Per Year
Garbage Collectors – $25,000 Per Year

g. How Do You Get Funding to Start a Valet Trash Service Business?

Raising money from personal savings and sale of personal stocks and properties
Raising money from investors and business partners
Sell shares to interested investors
Applying for a loan from your bank/banks
Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
Source for soft loans from your family members and friends.

Write a Business Plan

a. Executive Summary

Go Green® Valet Trash Services, Inc. is a registered and licensed valet trash service company that will be based in a residential and campus community in Green Bay, Wisconsin. We have been able to secure all the relevant licenses and permits to operate as a standard valet trash company in the United States.

We will ensure that we abide by the rules and regulations guiding the industry and we will only hire experienced and qualified drivers with valid commercial driver’s licenses (CDL).

b. Service

Collects and removes trash from the doorsteps of residents predominantly in multi-family communities and estates such as apartments and condominiums.

c. Mission Statement

Our mission is to ensure that we build a standard and successful valet trash collection company that will operate not just in Green Bay, Wisconsin but in major cities all across the United States of America and Canada.

Vision Statement

Our Vision is to become one of the preferred choices for individuals and organizations when it comes to valet trash collection services in the whole of the United States of America.

d. Goals and Objectives

The goals and objectives of a valet trash collection business are to offer a trash collection service where a service valet goes door to door to pick up trash and take it down to the dumpsters.

e. Organizational Structure

Chief Operating Officer (Owner)
Admin and HR Manager
Transport and Logistics Manager
Marketing and Sales Executive (Business Developer)
Accountant
Valet Trash Truck and Van Drivers
Trash Collectors and Handlers
Customer Service Officer (Receptionist)

Marketing Plan

a. SWOT Analysis

Strength:

Excellent operational history
Attention to detail.
Accurate estimates with no hidden costs.
Experience and trained professionals.
Reliable valet trash collection trucks and vans.
Excellent customer testimonials.
Reliable and efficient customer service.

Weakness:

Not enough existing clientele to run at full capacity immediately
The owner is new to large scale marketing
We will need a loan to build our facility and to purchase valet trash collection trucks and vans
The owner is currently running the business solo
Lack of economies of scale.

Opportunities:

Growing real estate activities in the United States.
Build upon existing clientele
Online market, new services, new technology, and of course the opening of new markets.
Increase in the number of families moving from one apartment to another.
Increase in people migrating to the cities where we operate.

Threat:

Loans diminish profitability until they are paid off
The first year will be financially tight while we gain customers and pay off loans
Competition in the area could increase
Management of employees requires time, money, and efforts
The transport department could change their regulatory status and decide to enforce strict regulations that can strangulate our business.

b. How Do Valet Trash Service Businesses Make Money?

Valet trash service businesses make money by charging clients for collecting and disposing of their trash.

c. Payment Options

Payment via bank transfer
Payment with cash
Payment via credit cards
Payment via check
Payment via mobile money transfer

d. Sales & Advertising Strategies

Introduce our valet trash service business by sending introductory letters alongside our brochure to multi-family residences, condominium complexes, student housing, retirement communities, high-rise residences, gated communities, vacation resorts residential estates, and other key stakeholders in and around our city and state
Print out fliers and business cards and strategically drop them in offices, libraries, public facilities, train stations et al.
Use friends and family to spread the word about your business
Place a small or classified advertisement in the newspaper, or local publication about your company and the services we offer
Leverage on referral networks such as agencies that will attract clients who would need your services
Advertise the business in relevant magazines, newspapers, TV, and radio stations.
Attend relevant expos, seminars, and business fairs et al to market our services
Engage in direct marketing approach
Encourage the use of word-of-mouth marketing from loyal and satisfied clients
Join local chambers of commerce and industry to market your services.

Financial Projection

a. How Much Should You Charge for your Service?

Property managers contract valet trash services at a price per unit per month. Normally they run about $8 to $15 per unit. Consequently, a 100-unit property would pay between $800 and $1,500 per month. We will follow the industry’s standards.

b. How Much Profit Do Valet Trash Service Business Owners Make a Year?

It depends, but the available report shows that on average, a valet trash service business owner with a 1,000 unit portfolio could earn $13,000 per month off their resident’s trash. This is over $150,000 annually.

c. What Factors Determine the Amount of Profit to Be Made?

The capacity of the valet trash service business
The types of service offerings
The location the valet trash service business is covering
The management style of the valet trash service business
The business approach of the valet trash service business
The advertising and marketing strategies adopted by the valet trash service business.
The number of years the valet trash service business is in business

d. What is the Profit Margin of a Valet Trash Service Business?

The profit margin of a valet trash service business is not fixed. It could range from 35 percent to 65 percent depending on the distance of the goods to be transported.

e. What is the Sales Forecast?

Below is the sales forecast for a Valet trash service business. It is based on the location of the business and other factors as it relates to such startups in the United States;

First Fiscal Year: $240,000
Second Fiscal Year: $380,000
Third Fiscal Year: $600,000

Set Up your Office

a. How Do You Choose a Perfect Location for Valet Trash Service Business?

The demography of the location especially as it relates to real estate activities
The demand for the haulage services offered by valet trash service businesses in the location
The purchasing power of businesses and the residents of the location
Accessibility of the location
The number of valet trash service businesses, and waste collection services in the location
The local laws and regulations in the community/state
Traffic, parking and security et al

b. What State and City are Best to Open a Valet Trash Service Business?

Fort Oglethorpe, Georgia
Buffalo, New York
Denver, Colorado
San Antonio, Texas
Greenville, South Carolina
Los Angeles, California
Brattleboro, Vermont
Palm Beach, Florida
Silver Spring, Maryland
Rowland Heights, California
Green Bay, Wisconsin
Dallas, Texas

c. What Equipment is Needed to Operate a Valet Trash Service Business?

You should be prepared to purchase trash collection trucks, forklifts, loaders, pallets, crates et al. So also, you will need computers or laptops, internet facility, telephone, fax machine and office furniture (chairs, tables, and shelves) amongst others and all these can be gotten as fairly used.

Hire Employees

When it comes to hiring employees for a standard valet trash service business, you should make plans to hire a competent chief executive officer (you can occupy this position), admin and HR manager, transport and logistics manager, marketing and sales executive (business developer), accountant, valet trash collection truck drivers, trash collectors and handlers and customer service officer (receptionist).

Launch the Business Proper

You can launch your valet service business with an opening party, though it is never compulsory. You can choose to do a soft opening if you are operating on a low budget or you can go for a grand opening party. The bottom line is that with a proper launching of the valet trash service business, you will be able to inform people in your city that your valet trash service is open for business.

a. What Makes a Valet Trash Service Business Successful?

Choose a good location and reliable trash collection trucks and vans to launch the business
Hire only competent, hardworking, and trustworthy staff
Be deliberate with your marketing sales approach
Encourage the use of word of mouth to promote your valet trash service business
Leverage on all available online and offline platforms to promote your valet trash service business

b. What Happens During a Typical Day at a Valet Trash Service Business?

The business is open for the day’s work
The trash collection trucks are washed, cleaned, and ready for trash pickups
Customer’s trash is picked up from their doorstep and dumped in a dumpsite
Schedule maintenance of trash collection trucks are carried out
Marketing/website upkeep
Supply ordering
Administrative duties
The business is closed for the day.

c. What Skills and Experience Do You Need to Build a Valet Trash Service Business?

Good driving skills
Customer services skills
Interpersonal skill
Logistics and trash handling skills
Business management skills
Bargaining skill
Work experience in a waste collection services industry
Experience in managing people
Experience in business administration
Experience in handling logistics and transportation software.