Starting a Waste Management Business

The amount of trash grows daily and someone has to pick it up.

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According to the Bureau of Labor Statistics (BLS), in May 2009, there were nearly 100, 000 people employed in the waste treatment and disposal industry, and they averaged $46, 170 in yearly wages. It also estimates 139, 500 were employed by firms specializing in waste collection, and they averaged $37, 830. Also, approximately 28, 940 worked in the refuse and recyclable material collectors field and averaged $33, 760 yearly. It means more than a quarter of a million people were employed in this industry as of May 2009, and the numbers are expected to grow by 20 percent between 2008 and 2018, according to the BLS. There is often a lot of money in garbage. Opening your own garbage pickup business, while complicated, can be lucrative.

Step 1

Draft a detailed business plan that outlines your cash flow, expansion plans, entity type and general business procedures. Include a thorough explanation of the industry, including regulations and licenses. You will use this document in marketing your business to a lender if you need to apply for a loan to finance the business.

Step 2

Order an Employer Identification Number (EIN) from the Internal Revenue Service at IRS.gov. You can use this number to write grant requests, hire employees and establish checking accounts.

Related Reading: How to Open a Laundry & Dry Cleaning Business

Step 3

Register your business with your state's Secretary of State's office to get licenses and to get a sales tax license, if necessary in your state. Consult with this office regarding other industry-specific licenses or permits you need to operate in your state.

Step 4

Negotiate landfill rates with your landfill. While these rates are traditionally calculated by the ton, determine whether the per-ton charge is negotiable.

Step 5

Consult with the landfill, local government and your state's field office of the Environmental Protection Agency about recycling efforts in your area. Investigate federal grants that promote systematic recycling efforts, especially in high-need areas such as electronic waste and used oil.

Step 6

Discuss landfill policies with landfill management to determine what they accept. Create a contract that restricts your customers to trash within the parameters established by the landfill. Such items as grass clippings and car batteries are often forbidden or priced at a higher rate. Offer pickup of these items as a per-item service separate from your route pickup.