Business question - Page 2

For whatever it's worth .... i started part time in the mid-90's and then went full time in 2001 after building a customer base. It's easier in a rural area because things aren't as formal. Keep it small, don't make problems for anyone, do the right thing, and you might be okay.

Cash flow is the big thing. You've gotta build up some kind of a capital reserve to cover your operating expenses while you're waiting to get paid.

For example: You do the work on the first of the month. You bill your customer at the end of the month. Net in 30 is pretty much standard practice so it can end up being sixty days from the time you do the work till the time you get paid. That's like two months with money going out before you see your first dollar of income. There are ways around cash flow problems but you've always got to be planning ahead.

If you stay with your full time job now you've got a steady income. Maybe take on a few customers as a side gig after work or on the weekends ? Take that money and start building your business. In five or ten years you'll have your customer base built and all of your equipment will be paid for.

It's a patient process but it's a sustainable way of going from smaller to bigger.

Don't know about the big boys where you are but most of the established businesses in this area were founded two or three generations ago. The founder was just some guy that started out with little or nothing, worked his ass off, and built something over a lifetime.

The packers in this rural area don't seem to last more than a few years. There's one guy that runs two pickup trucks that's been doing it for the last 40 years. There's another younger fulla that's running one truck and he's been in it for the last five years. A packer is a nice thing to have but it's more expensive to operate. Maybe you need a certain number of established customers before they become cost effective to operate ?

Years ago ... i filled in for the guy that had the municipal trash pickup contract with the town for awhile. That was a steady income thing that paid on a regular basis. He always worked out of a 3/4 ton pickup with sides. It wasn't a big money thing but he was able to make a living at it.

Any chance of underbidding someone with a municipal contract -or- buying an established business from an old timer that's getting ready to retire ? It's more risk but that would be a faster way of jumping in.

^ what he said. Start small, start slow and get the feel of operating your own business before taking out any big loans.

Wow. I'm paying 17/ton here. Guess I cant complain.

Some good advice by all so far, I have thought there is opportunities and money in the trash business. Getting it is not so easy! First know your competition, may need to know them and how their business operates, better then they do (as best you can). There is over 20,000 trash companies in this country. The two largest, Waste Management and Republic handle more than half of the trash in this country. One of their business methods is to eliminate competion by utilizing local government to do it for them. This is done by several ways: lobbying to pass laws and municipal codes that favor their business. Enter in long term contracts that give them exclusive rights to handle all aspects of a areas trash business.

Starting with your current employer, ask yourself this question: Do I have the resources and knowledge to compete with existing trash companies and offer a better service to their customers?

As you know the trash business is a dirty job. You need to know there is a lot dirty dealing too!