8 steps to a start million-dollar dumpster rental business

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Considering starting a dumpster rental business? But looking for how to start a dumpster rental business? If you want to start a dumpster rental business, you have to follow a complete direction. 

We’ve distilled our learnings into this helpful guide, offering a step-by-step guide to starting a million-dollar business. 

According to the market research of IBISWorld,

“In the US, the market size of the dumpster rental industry is around $506.8m in 2022, and the growth rate is almost 3.5%.”

Furthermore, you can start a dumpster rental business with a relatively small investment, which makes it a good choice for newbie entrepreneurs. This detailed guide will assist you in learning more about this business endeavor and determining whether a dumpster rental business is right for you. 

8 steps to start a dumpster rental business

8 steps to start a dumpster rental business

Step 1: Conduct Thorough Market Research

Not all rental businesses are the same.  Always do your research to determine if there is an unmet demand for for-hire/for-rent dumpsters in your local area. 

Perform Market Segmentation

To conduct proper market research, you have to perform market segmentation. You can easily filter your target market, target audience, and competitors. 

Contractors, construction companies, landlords, and building developers will all be in your target market.  Find them and connect with them on LinkedIn and Facebook. You can even collaborate with remodelers and contractors to gain access to their clientele.

Identify Your Target Customer

Once you have conducted market segmentation, you have to accurately determine your target customer as well. You must be aware of who your customers are and whether you have a sufficient number of them to sustain your enterprise.

Envision your perfect Customer

Will you actively seek out residential contracts? If so, you’ll want to know the demographics of the local population, such as whether most of them are homeowners with plans to remodel. 

Knowing who your target client is shouldn’t be difficult if you have a clear picture of your company.

With this information in hand, you can start determining whether there is room for a new player to enter the dumpster rental space. 

Are your prospective competitors prospering? Are people starting this business and leaving it soon, or do they usually make it a success? 

While it may be exciting to jump right in, you can save yourself a lot of time (and money!) by doing your homework upfront.

Find a Suitable Location

In this stage, you have to choose the perfect location for your dumpster rental business. You should look for a place to store your dumpsters that has reasonable fees while still being close to your desired communities.

The more remote your location, the less expensive it will be to keep your equipment, but the more you’ll spend on gas, mileage, time, and general truck wear and tear to reach your Customers.

You can consider the following factors to choose a suitable location for your dumpster rental business. 

  • Convenient access to improved roads (loaded dumpsters can be very heavy)
  • Proximity to the local landfill (the debris your Customers dump has to go somewhere)
  • Lease that is adaptable and can be renewed as your firm expands
  • Ready-to-use area that doesn’t require any substantial repairs or upgrades.  Bonus points for a secure facility with a paved parking lot to make load/offload easier.

Step 2: Choose Your Preferred Business Structure

There are several types of business entities, each with advantages and disadvantages. Choose thoughtfully since the legal structure you select for your dumpster rental company may affect your taxes, personal liability, and business registration needs.

Sole Proprietorship

One of the easiest and clearest business formats for your dumpster rental company is a sole proprietorship. You have total authority over your company if you operate it as a sole owner. 

Moreover, you will be the sole recipient of all firm earnings and be in charge of all tax and legal obligations. Most significantly, this business structure provides no legal distinction between the company and the owner. 

However, you have to remember that you might need to complete another state filing depending on the size and type of your business operation. 

General Partnership

This is another form to start a dumpster rental business. This business structure allows you to resemble a sole proprietorship but with two or more people involved. 

Once more, owners are responsible for losses and retain earnings. On their personal tax returns, the partners report and pay taxes on their respective business income shares.

Limited liability company (LLC)

In this corporate arrangement, an LLC is considered the same tax-paying company as its members. The member’s tax returns get full responsibility for any corporate tax obligations. Remember that self-employment taxes are also due to business profits.

In the case of an LLC, you must file a Fictitious Firm Call Statement with the county where your dumpster rental company’s headquarters is situated. So, it combines the traits of sole proprietorships and partnerships or corporations. 


Another type to start a dumpster rental business is a corporation. The ability to keep your personal and professional lives separate is the main benefit of incorporating a dumpster rental business. 

A dumpster rental company limits the personal culpability of its owners because it is a separate legal entity from them.

However, it’s important to keep in mind that both the corporation and the shareholders must pay taxes when you establish your dumpster rental business as a corporation. This entails taxing every firm profit twice.


You can avoid going the solo DIY path in this situation if you intend to eventually go public or add other shareholders. Before creating a corporation for your trash rental business, you should consult with a business lawyer.  

Step 3: Create a Clear & Precise Business Plan

Don’t skip this step.  A business plan effectively serves as your company’s road map.

It compiles your ideas about your company into a workable plan. Budgeting, identifying your target market and competitors, pricing strategy, operational strategies, and growth predictions are a few items to include in your business plan.

Don’t worry about writing a flawless business strategy. At this point, a business plan serves only as a  tool for organizing your thoughts and plans. If more polishing is required, you can do it later. But primarily you have to write a clear and detailed business plan. 

Choose a Perfect Business Name & Logo

You need to pick a name that represents your values and ideals whether you want to launch a dumpster rental business. 

Remember that in the states where you wish to conduct your firm, the legal business name must adhere to state naming regulations.

It’s a good idea to discuss branding and how it will impact your firm before choosing a name for it. The primary query here is whether your brand name will be separate from your legal name or if your legal business name will also be your brand name.

When you initially start out, it is advisable to utilize your official business name as your brand name. Why? Because it makes things much simpler, is quite easy to do, and costs a lot less money.

Register Your Business for Taxes

In this stage, you can register your business according to your local laws and regulations. Obtaining an Employer Identification Number, or EIN is the last step before you can start paying taxes. 

Moreover, you can visit the IRS website for further information on how to apply for your EIN online, by mail, or by fax. Remember that if you’ve decided to operate as a sole proprietorship, your EIN might just be your social security number.

You must decide on your tax year once you get your EIN. Your company will operate financially over a 12-month period called a fiscal year, which can begin in any month and runs from January to December. 

So, your business structure will dictate which taxes you must pay, while this will establish your tax cycle.

Open a Business Bank Account

To store your money before you start earning it, you’ll need to open a bank account. Even if you operate your dumpster rental firm as a single proprietorship, keeping your business finances separate from your personal account. 

As a result, you can easily track your company’s income. Similar to opening a personal account, opening a business bank account is very easy.

Step 4: Get Funding for Your Dumpster Rental Business

If you don’t have enough money to acquire your dumpster inventory, your rental company will fail—even if you offer the best dumpster rental service in the nation and can win over clients from miles away. 

Although it may seem counterintuitive, you must first have money in order to make money. You can consider the following funding options to get fund for your dumpster rental business. 

Bank Loans

Banks are a typical source of capital for startup companies, but before making a loan to a new company, they frequently carry out significant due diligence and underwriting.

Personal Savings

Having some personal funds is crucial since you frequently need to put money on the line before lenders would cooperate with you.

Government Grants

Several financial assistance programmes offer funding to business owners. To find out which may be appropriate, you can go to Grants.gov.

SBA Guaranteed Loans

A loan that is backed by the Small Business Administration is an additional source of finance for your startup company.


There are some popular websites like Kickstarter and Indiegogo, which are becoming more and more popular for low-risk options. Also, multiple investors can fund your firm using entrepreneur-focused crowdfunding platforms like Fundable and WeFunder.

For just $14,000, you could invest in a basic dumpster rental business (assuming you buy two 20yds dumpsters). You may start off strong with an additional $5,000 to $10,000.

However, if you want to expand your business and offer waste disposal services as well, you will also need to purchase a roll-off truck, which is an additional expense that costs about $70,000.

Therefore, to start a large-scale dumpster rental company with two dumpsters and a truck, it will cost you around $80,000 just to get started.

The typical cost to rent a 10-yard dumpster is $500 a week. After costs, such as storage rental and part-time labor, your profit margin should be around 50%. 

If you routinely rent three dumpsters per week in your first year or two, you’ll earn more than $78,000 per year, which allows you to pay down any loans while keeping a good portion of the profits for salaries, new inventory purchases, and more.

Step 5: Apply for Business Licenses & Permits

The local, state, and federal governments must grant you a number of licenses and permits before you can start a dumpster rental business.

In this regard, you need to require a commercial driving license (CDL), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits, and so on. 

Step 6: Obtain Insurance to Protect Your Rental Business

Although it is sometimes disregarded, business insurance can be crucial to your success as an entrepreneur. Insurance shields you from unanticipated occurrences that could severely harm your dumpster rental business. 

You can consider the following types of insurance to start your rental business. 

  • General liability
  • Business Property
  • Equipment Breakdown Insurance
  • Worker’s compensation
  • Property
  • Commercial auto
  • Professional liability
  • Business owner’s policy (BOP)

Related For You: Insurance For Rental Business

A dumpster rental company can be very profitable even with just three containers at first. If you can consistently rent dumpsters for the average price of $500 per week, you can make a handsome income.  The beauty of a dumpster rental business is that the dumpsters do the work; you simply need to deliver on time and empty them when needed.

A single 20-yard dumpster will set you back about $6,000. Additionally, you can rent the same dumpster to other firms for about $400 each week. 

Therefore, you will only need to locate a tenant for your dumpster for 15 weeks in order to recover all of your investment costs. 

So, if you follow all of these steps, the dumpster rental business will be profitable for you.

Step 7: Launch Your Dumpster Rental Business

Now, you can launch your dumpster rental business. But, before launching your business, you need a system that helps you find and serve new Customers and one that makes managing your orders easier. 

You need to integrate a complete rental management solution that will provide an automated solution for your rental business.  

Design & Develop a Responsive Website

The creation of a website is essential since it serves as your online presence and must persuade potential customers of your professionalism and experience. 

However, unless you use Search Engine Optimization (SEO) techniques, Customers are unlikely to find your website. SEO helps your pages rise in the rankings of leading search engines like Google and Bing..

Related For You: Launching An Equipment Rental Business Website

Integrate All Essential Tools & Software

It can be overwhelming to be an entrepreneur since you frequently have to wear multiple hats, including those for sales, marketing, and accounting. 

Fortunately, there is a ton of websites and dumpster rental software available, but you have to choose the best one. 

Step 8: Create a Marketing Plan to Promote Your Business

Finally, you must use advertising to market your dumpster rental business. This will increase the visibility of your recently established dumpster rental service. 

To get your business the most exposure possible right away, it would be advisable to think about advertising on social media, in print publications, and on billboards.

In this regard, you can conduct the following marketing strategies to promote your dumpster rental business. 

Conduct Digital Marketing for Your Rental Business

You should still spend on digital marketing even though some of your business will come from online visitors. Spreading the word is crucial for new businesses as it will increase brand and client recognition.

  • Search Engine Optimization (SEO) 
  • Conduct Content Marketing 
  • Social Media Marketing
  • Run Google PPC Campaigns
  • Business listing directories  

Perform Physical Marketing to Introduce Your Business 

You can also conduct physical marketing that will assist to introduce and promote your rental business as well. In this regard, you can initiate the following activities. 

  • Distribute Flyers and Business cards
  • In-Person Sales 

 Don’t Miss the Opportunity

Get a Smart Solution to Start a Dumpster Rental Business

You have already learned some of the essential steps for starting a dumpster rental business. The most crucial point, though, is that you must adopt automation if you want to improve the efficiency of your business operations. 

So, what system do you need to run and grow a dumpster rental company?

You can integrate an automated solution that will allow you to manage the overall activities of your dumpster rental business. Moreover, the dumpster rental software solution allows you to conduct the overall bookings and reservations. 

Try RentMy to get an all-in-one dumpster rental business management solution. 

This dumpster rental software provides all essential features and exclusive functionalities to operate your dumpster rental business dynamically.  


Dumpster rental businesses are a great choice for extra income with fewer hands-on requirements than other businesses require.  

Plan carefully and use available tools like RentMy to serve new customers and manage your orders. Good luck with your new venture


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