Dumpster Rental Business Plan Template

Written by Dave Lavinsky

Dumpster Rental Business Plan

You’ve come to the right place to create your Dumpster Rental business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Dumpster Rental companies.

Below is a template to help you create each section of your Dumpster Rental business plan.

Executive Summary

Business Overview

Pacific Dumpsters is a new dumpster rental company located in Spokane, Washington. We offer a wide variety of dumpster rental options for residents and local businesses to help them with all of 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.

Pacific Dumpsters is founded and led by Freddy Wright. Freddy has 20 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.

 

Product Offering

Pacific Dumpsters 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

Pacific Dumpsters will target the residents of Spokane who need a dumpster to dispose of their waste and materials. The company will also target local businesses, particularly construction companies, that need dumpsters during their cleaning, construction, or remodeling projects.

 

Management Team

Pacific Dumpsters is founded and led by Freddy Wright. Freddy has 20 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

Pacific Dumpsters will be able to achieve success by offering the following competitive advantages:

  • Customer Focus: Pacific Dumpsters’ employees provide the highest quality customer service focused on transparency, communication, and responsiveness throughout the rental process.
  • Management: Freddy Wright 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 Pacific Dumpsters’ 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.

 

Financial Highlights

Pacific Dumpsters is currently seeking $850,000 to launch. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses, and working capital. Specifically, these funds will be used as follows:

  • Store design/build: $250,000
  • Vehicle purchase and maintenance: $250,000
  • Inventory and supplies: $100,000
  • Three months of overhead expenses (payroll, rent, utilities): $150,000
  • Marketing costs: $50,000
  • Working capital: $50,000

The following graph below outlines the pro forma financial projections for Pacific Dumpsters.

Pacific Dumpsters Financial Projections

 

Company Overview

Who is Pacific Dumpsters?

Pacific Dumpsters is a new dumpster rental company located in Spokane, Washington. We offer a wide variety of dumpster rental options for residents and local businesses to help them with all of 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.

 
Pacific Dumpsters is founded and led by Freddy Wright. Freddy has 20 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.

 

Pacific Dumpsters’ History

Freddy Wright incorporated Pacific Dumpsters on March 1st, 2023 as an S-Corporation. The business is currently being run out of Freddy’s home, but once the lease on Pacific Dumpsters’ 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
  • Determined equipment requirements
  • Began recruiting key employees

 

Pacific Dumpsters’ Services

Pacific Dumpsters 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.
 

Industry Analysis

There will always be a demand for dumpsters and other waste management solutions. Society will always produce waste to some extent, making businesses like Pacific Dumpsters 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, the dumpster rental industry is expected to see moderate growth, with a projected CAGR of 3.2% over the next five years. 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.

 

Customer Analysis

Demographic Profile of Target Market

Pacific Dumpsters will target all residents of Spokane, Washington. The residents of Spokane are likely to need a dumpster from time to time to dispose of waste from their construction, renovation, or cleaning projects. The company will also target businesses in the area, particularly construction businesses.

The precise demographics for the Spokane, Washington are:

TotalPercent
    Total population1,680,988100%
        Male838,67549.9%
        Female842,31350.1%
        20 to 24 years114,8726.8%
        25 to 34 years273,58816.3%
        35 to 44 years235,94614.0%
        45 to 54 years210,25612.5%
        55 to 59 years105,0576.2%
        60 to 64 years87,4845.2%
        65 to 74 years116,8787.0%
        75 to 84 years52,5243.1%

 

Customer Segmentation

Pacific Dumpsters will primarily target the following customer profiles:

  • Residents
  • Businesses
  • Construction companies

 

Competitive Analysis

Direct and Indirect Competitors

Pacific Dumpsters will face competition from other companies with similar business profiles. A description of each competitor company is below.

 

WM Inc.

WM Inc. is the #1 waste management company in the region. The company is in charge of Spokane, Washington’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 Pacific Dumpsters’ 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 Pacific Dumpsters’ will be. Furthermore, it is impossible to book a rental online as customers must call their local office to get a rental. Pacific Dumpsters 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. Pacific Dumpsters’ mission revolves around positive customer relationships, so we will have a huge advantage over this competitor.

 

Competitive Advantage

Pacific Dumpsters will be able to offer the following advantages over their competition:

  • Customer Focus: Pacific Dumpsters’ employees provide the highest quality customer service focused on transparency, communication, and responsiveness throughout the rental process.
  • Management: Freddy Wright 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 Pacific Dumpsters’ 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.
  • Management: Freddy Wright 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 Pacific Dumpsters’ 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.

 

Marketing Plan

Brand & Value Proposition

Pacific Dumpsters will offer the unique value proposition to its clientele:

  • Friendly, fast, and professional customer service
  • Great variety of dumpsters
  • Large service area
  • Most cost effective rates in town

 

Promotions Strategy

The promotions strategy for Pacific Dumpsters is as follows:

Social Media

Pacific Dumpsters hire another company to 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.

Website & SEO

Pacific Dumpsters will invest in developing a professional website that displays all of 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.

Word of Mouth Marketing

Pacific Dumpsters 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.

Direct Mail

Pacific Dumpsters will blanket neighborhoods in the area with direct mail pieces. These pieces will provide general information on Pacific Dumpsters, its services, and promotional discounts.

 

Pricing

Pacific Dumpsters’ 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.

 

Operations Plan

Pacific Dumpsters will utilize the following operations plan.

Operation Functions:

  • Freddy Wright will manage all aspects of the business. He will oversee scheduling, client communication and satisfaction, billing, and accounts payable.
  • Freddy is joined by Cedric Smith, who will be the Administrative Assistant.
  • Freddy will hire an outside accounting firm to handle all tax obligations and accounting.
  • Freddy will also hire a marketing firm to help with all the marketing and advertising campaigns.
  • Freddy will hire several other employees to help him run the service functions of the business, such as transporting the dumpsters, and managing waste materials.

 

Milestones:

Pacific Dumpsters will have the following milestones complete in the next six months.

  • 6/202X – Finalize lease agreement for office space.
  • 7/202X – Purchase initial inventory of dumpsters.
  • 8/202X – Hire and train key employees.
  • 9/202X – Hire advertising company to develop website, social media accounts, and marketing campaigns.
  • 10/202X – Pacific Dumpsters officially opens for business and can begin to rent out dumpsters.

 

Management Team

Pacific Dumpsters is founded and led by Freddy Wright. Freddy has 20 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.

 

Financial Plan

Key Revenue & Costs

Pacific Dumpsters’ 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 Pacific Dumpsters will be labor expenses, vehicles and equipment, marketing, and the lease for the office space.

 

Funding Requirements and Use of Funds

Pacific Dumpsters is currently seeking $850,000 to launch. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses, and working capital. Specifically, these funds will be used as follows:

  • Store design/build: $250,000
  • Vehicle purchase and maintenance: $250,000
  • Inventory and supplies: $100,000
  • Three months of overhead expenses (payroll, rent, utilities): $150,000
  • Marketing costs: $50,000
  • Working capital: $50,000

 

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

  • Number of customers:
    • Year 1: 120
    • Year 2: 180
    • Year 3: 280
    • Year 4: 400
    • Year 5: 550
  • Annual rent: $100,000

 

Financial Projections

Income Statement
FY 1FY 2FY 3FY 4FY 5
Revenues
Total Revenues$360,000$793,728$875,006$964,606$1,063,382
Expenses & Costs
Cost of goods sold$64,800$142,871$157,501$173,629$191,409
Lease$50,000$51,250$52,531$53,845$55,191
Marketing$10,000$8,000$8,000$8,000$8,000
Salaries$157,015$214,030$235,968$247,766$260,155
Initial expenditure$10,000$0$0$0$0
Total Expenses & Costs$291,815$416,151$454,000$483,240$514,754
EBITDA$68,185 $377,577 $421,005 $481,366 $548,628
Depreciation$27,160$27,160 $27,160 $27,160 $27,160
EBIT$41,025 $350,417 $393,845$454,206$521,468
Interest$23,462$20,529 $17,596 $14,664 $11,731
PRETAX INCOME$17,563 $329,888 $376,249 $439,543 $509,737
Net Operating Loss$0$0$0$0$0
Use of Net Operating Loss$0$0$0$0$0
Taxable Income$17,563$329,888$376,249$439,543$509,737
Income Tax Expense$6,147$115,461$131,687$153,840$178,408
NET INCOME$11,416 $214,427 $244,562 $285,703 $331,329
Balance Sheet
FY 1FY 2FY 3FY 4FY 5
ASSETS
Cash$154,257$348,760$573,195$838,550$1,149,286
Accounts receivable$0$0$0$0$0
Inventory$30,000$33,072$36,459$40,192$44,308
Total Current Assets$184,257$381,832$609,654$878,742$1,193,594
Fixed assets$180,950$180,950$180,950$180,950$180,950
Depreciation$27,160$54,320$81,480$108,640 $135,800
Net fixed assets$153,790 $126,630 $99,470 $72,310 $45,150
TOTAL ASSETS$338,047$508,462$709,124$951,052$1,238,744
LIABILITIES & EQUITY
Debt$315,831$270,713$225,594$180,475 $135,356
Accounts payable$10,800$11,906$13,125$14,469 $15,951
Total Liability$326,631 $282,618 $238,719 $194,944 $151,307
Share Capital$0$0$0$0$0
Retained earnings$11,416 $225,843 $470,405 $756,108$1,087,437
Total Equity$11,416$225,843$470,405$756,108$1,087,437
TOTAL LIABILITIES & EQUITY$338,047$508,462$709,124$951,052$1,238,744
Cash Flow Statement
FY 1FY 2FY 3FY 4FY 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)$11,416 $214,427 $244,562 $285,703$331,329
Change in working capital($19,200)($1,966)($2,167)($2,389)($2,634)
Depreciation$27,160 $27,160 $27,160 $27,160 $27,160
Net Cash Flow from Operations$19,376 $239,621 $269,554 $310,473 $355,855
CASH FLOW FROM INVESTMENTS
Investment($180,950)$0$0$0$0
Net Cash Flow from Investments($180,950)$0$0$0$0
CASH FLOW FROM FINANCING
Cash from equity$0$0$0$0$0
Cash from debt$315,831 ($45,119)($45,119)($45,119)($45,119)
Net Cash Flow from Financing$315,831 ($45,119)($45,119)($45,119)($45,119)
Net Cash Flow$154,257$194,502 $224,436 $265,355$310,736
Cash at Beginning of Period$0$154,257$348,760$573,195$838,550
Cash at End of Period$154,257$348,760$573,195$838,550$1,149,286

Dumpster Rental Business Plan FAQs

A dumpster rental business plan is a plan to start and/or grow your dumpster rental business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Dumpster Rental business plan using our Dumpster Rental Business Plan Template here.

There are a number of different kinds of dumpster rental businesses, some examples include: Home clean-up dumpster rentals, Contractor dumpster rentals, Hospital dumpster rentals, Landscapers dumpster rentals, and Waste management dumpster rentals.

Dumpster Rental businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

Starting a dumpster rental business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Dumpster Rental Business Plan - The first step in starting a business is to create a detailed dumpster rental business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your dumpster rental business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your dumpster rental business is in compliance with local laws.

3. Register Your Dumpster Rental Business - Once you have chosen a legal structure, the next step is to register your dumpster rental business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your dumpster rental business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Dumpster Rental Equipment & Supplies - In order to start your dumpster rental business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your dumpster rental business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.