Dumpster Rental Business Plan Template
If you want to start a dumpster rental business or expand your current dumpster rental business, you need a business plan.
The following Dumpster Rental business plan template gives you the key elements to include in a winning Dumpster Rental business plan.
Sample Dumpster Rental Business Plan Template
Below is a dumpster rental business plan example with each of the key sections to help you write a dumpster rental business plan for your own company.
I. Executive Summary
Business Overview
[Company Name] is a new dumpster rental company located in [Location]. We offer both residents and local businesses a wide range of dumpsters to rent for all their waste management needs. Our company’s focus is on customer service and affordable pricing. We guarantee to have the most affordable dumpsters in town and provide the best customer service in the industry.
Products Served
[Company Name] offers a variety of dumpster sizes for rent. We have small dumpsters for home projects and large dumpsters that suit extensive construction projects. Some of the sizes we offer include:
- 2 cubic yards
- 4 cubic yards
- 10 cubic yards
- 15 cubic yards
- 20 cubic yards
- 30 cubic yards
Smaller dumpsters can be rented for up to seven days. Larger sizes can be rented for up to 30 days. Rental charges are based on the dumpster size and the length of the rental.
Customer Focus
[Company Name] will primarily be homeowners and businesses located within a 20-mile radius of [Location]. The demographics of this area are as follows:
- 105,013 residents
- 32% married
- 42% homeowners
- 5000 businesses
- Median age of 36
Management Team
[Company Name] is founded and led by [Founder’s Name]. [Founder’s Name] has [X] years in the waste management industry, starting as a driver and working his way up into management and operations positions. Over the past few years, he dreamed of operating his own dumpster rental company that was focused on customer service and affordable pricing. His extensive experience has given him an in-depth knowledge of all aspects of the business, making him the most valuable asset to the company.
Success Factors
[Company Name] is qualified to succeed due to the following reasons:
- There is always a demand for dumpster rentals within the community. In addition, the company surveyed the local population and received highly positive feedback pointing towards an explicit demand for the services, supporting the business after launch.
- The company serves a wide geographic area within [Location], making the company available to a majority of the city’s residents and businesses.
- The management team has a track record of success in the dumpster rental business.
- Dumpster rental businesses have a proven track record of business success in communities throughout the United States.
Financial Highlights
[Company Name] is currently seeking $750,000 to launch. Specifically, these funds will be used as follows:
- Store design/build: $250,000
- Vehicle purchase and maintenance: $250,000
- Inventory and supplies: $100,000
- Working capital: $150,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name] is a new dumpster rental company located in [Location]. We offer both residents and local businesses a wide range of dumpsters to rent for all their waste management needs. Our company’s focus is on customer service and affordable pricing. We guarantee to have the most affordable dumpsters in town and provide the best customer service in the industry.
[Company Name]’s History
[Founder’s Name] incorporated [Company Name] on [date of incorporation] as an S-Corporation. The business is currently being run out of [Founder’s Name]’s home, but once the lease on [Company Name]’s office location is finalized, all operations will be run from there.
Since incorporation, the company has achieved the following milestones:
- Found a business location and signed a Letter of Intent to lease it
- Developed the company’s name, logo, and website located at [website]
- Determined equipment requirements
- Began recruiting key employees
[Company Name]’s Products/Services
[Company Name] offers a variety of dumpster sizes for rent. We have small dumpsters for home projects and large dumpsters that suit extensive construction projects. Some of the sizes we offer include:
- 2 cubic yards
- 4 cubic yards
- 10 cubic yards
- 15 cubic yards
- 20 cubic yards
- 30 cubic yards
Smaller dumpsters can be rented for up to seven days. Larger sizes can be rented for up to 30 days. Rental charges are based on the dumpster size and the length of the rental.
III. Industry Analysis
Even in an era where zero waste lifestyles are becoming more popular, there will always be a demand for dumpsters and other waste management solutions. Society will always produce waste to some extent, making businesses like [Company Name] essential.
Many waste management companies offer limited options for residents and companies to dispose of their waste. Dumpster rentals are appealing to those who have one-time cleaning, renovation, or construction projects that produce a lot of waste. These services are often much cheaper than what typical waste management companies provide and have much more flexible policies.
According to Research and Markets, the dumpster rental industry is expected to see moderate growth, with a projected CAGR of 3.2% from now until 2027. This shows that the industry is still going strong and is continuing to grow and expand. Therefore, this is a great time to open a dumpster rental company, as we are likely to be very profitable.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve residents and businesses in [Location] and its surrounding areas.
A demographic profile of the area is as follows:
| Wilmette | Winnetka | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
[Company Name] will primarily target the following three customer segments:
- Individuals: Individuals and families often need small dumpster rentals when cleaning out their homes or conducting their own remodeling/renovation projects. We expect this demographic to be the largest consumer segment of our small dumpster rentals.
- Commercial Businesses: Local businesses have a wide range of projects that require proper waste management. These can include renovations or major office cleanings. Therefore, we expect this segment to be in need of our rentals often.
- Construction Companies: Construction companies utilize dumpsters often to throw away waste materials and trash as they work on extensive construction and remodeling projects. We expect that most of our sales will come from construction companies.
V. Competitive Analysis
Direct & Indirect Competitors
The following remodeling companies operate within a 20-mile radius of [Company Name], thus providing either direct or indirect competition:
WM Inc.
WM Inc. is the #1 waste management company in the region. The company is in charge of [Location]’s residential trash pickup service and serves other towns in the surrounding area. In addition to residential and commercial trash pickup, the company offers dumpsters for rent and other waste management solutions.
Though WM Inc. has a large presence in the area, their dumpster rental service is not popular or well-known. Furthermore, their rental rates are much higher than [Company Name]’s and the rental periods are not as flexible.
Dumpsters.com
Dumpsters.com is a nationwide waste management company that specializes in providing dumpsters for rent. They offer a variety of sizes that serve a multitude of projects. Renting with dumpsters.com is a very convenient process, as they have a large presence nationwide and are open from dawn until dusk.
Though dumpsters.com has a large presence and positive reputation, their pricing is much higher than [Company Name]’s will be. Furthermore, it is impossible to book a rental online as customers must call their local office to get a rental. [Company Name] will offer an online booking option.
Waste Connections
Waste Connections is a dumpster rental and waste management company that offers both residential and commercial waste management solutions. Customers can choose from a multitude of dumpster sizes from a 32-gallon container to a 40-yard dumpster.
Though Waste Connections will continue to thrive, the company has a very low consumer rating due to bad customer service. [Company Name]’s mission revolves around positive customer relationships, so we will have a huge advantage over this competitor.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. Those advantages include:
- Customer Focus: [Company Name]’s employees provide the highest quality customer service focused on transparency, communication, and responsiveness throughout the rental process.
- Management: [Founder’s Name] has been extremely successful working in the waste management industry and will be able to use his previous experience to help customers with whatever they need. His unique qualifications will serve customers in a much more sophisticated manner than many of [Company Name]’s competitors.
- Flexible Renting Policies: Unlike our competitors, we offer flexible renting policies that allow our customers to rent the perfect dumpster for their projects for as long as they need it.
VI. Marketing Plan
The [Company Name] Brand
[Company Name] seeks to position itself as a respectable and renowned competitor in the dumpster rental and waste management industry. Customers can expect to receive high-quality dumpster rentals and excellent customer service for a moderate price.
The [Company Name] brand will focus on the company’s unique value proposition:
- Offering a wide variety of dumpsters to rent
- Servicing a large geographic area around [Location]
- Moderate pricing
- Providing excellent customer service
Promotions Strategy
[Company Name] expects its target market to be individuals within a 20-mile radius of its location. [Company Name]’s promotion strategy to reach these potential customers includes:
Website/SEO
[Company Name] will invest in developing a professional website that displays all the services offered by the company. It will also invest in SEO so that the company’s website will appear at the top of search engine results.
Social Media
[Company Name] will create the company’s social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographic.
Direct Mail
[Company Name] will blanket neighborhoods in the area with direct mail pieces. These pieces will provide general information on [Company Name], its services, and promotional discounts.
Billboards
[Company Name] will secure a billboard in the area that captures the attention of residents. The billboard will draw attention to the new business and its service offerings.
Word of Mouth Marketing
[Company Name] will encourage word-of-mouth marketing from loyal and satisfied clients. The company will use recommendations and word-of-mouth marketing to grow its customer base through the network of its existing customers.
Advertisement
Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The company will advertise its services in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.
Pricing Strategy
[Company Name]’s pricing will be moderate, so customers feel they receive great value when renting our dumpsters. Customers can expect to receive exceptional dumpster rentals and customer service for a far more affordable price than what they would pay elsewhere.
VII. Operations Plan
Functional Roles
[Company Name] will need to fulfill the following functional roles to execute its business plan and ensure the company’s success:
Service Functions
- Provide excellent customer service
- Deliver and pick up dumpsters
- Schedule rentals
- Manage waste after dumpsters are picked up
Administrative Functions
- Social media management
- Website management
- Bookkeeping
- Marketing
- Hiring and training staff
- Maintenance functions
- Other general administrative functions
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is founded and led by [Founder’s Name]. [Founder’s Name] has [X] years in the waste management industry, starting as a driver and working his way up into management and operations positions. Over the past few years, he dreamed of operating his own dumpster rental company that was focused on customer service and affordable pricing. His extensive experience has given him an in-depth knowledge of all aspects of the business, making him the most valuable asset to the company.
Hiring Plan
[Founder’s Name] will serve as the Owner and CEO of [Company Name]. In order to launch, he needs to hire the following personnel:
- Administrative Staff (2 to start)
- Site Manager (1 to start)
- Drivers (3 to start)
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenue will primarily come from charging customers fees for renting out dumpsters. Pricing will be determined by the size of the dumpster and the length of the rental.
The main cost drivers for [Company Name] will be labor expenses, vehicles and equipment, marketing, and the lease for the office space.
Capital Requirements and Use of Funds
[Company Name] is currently seeking $750,000 to launch. Specifically, these funds will be used as follows:
- Store design/build: $250,000
- Vehicle purchase and maintenance: $250,000
- Inventory and supplies: $100,000
- Working capital: $150,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of Clients | Average |
|---|---|
| FY 1 | 120 |
| FY 2 | 150 |
| FY 3 | 180 |
| FY 4 | 200 |
| FY 5 | 220 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
