Clear Path Junk Removal

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Executive Summary

Clear Path Junk Removal is a small junk removal and hauling company in North Carolina. We haul away furniture, old appliances, yard debris and the contents of garages, sheds and estates for homeowners, landlords, property managers and small businesses. Our customers are people who have too much stuff and not enough time, strength or a truck.

The problem is simple. A pile of junk can sit for months because renting a truck, loading it and paying dump fees is a day's work, and some haulers give a vague price and a different bill. We give a written price before we start, load everything ourselves, sweep up and take it to a legal place to be donated, recycled or disposed of.

Here is what our numbers show. We expect sales of $170,400 in Year 1, growing to $546,250 by Year 5 as we add trucks, crew and repeat contracts. We expect a profit of about $6,300 in Year 1 while we build our reputation and repeat customers, then a larger profit of about $33,700 in Year 2, growing to about $46,400 by Year 5.

We need $80,000 in total. That covers $54,300 in startup costs (a used truck, loading gear, a phone and card reader, insurance, signage and the first disposal costs) and a cash cushion for the first months. I am putting in $15,000 of my own money, and I am asking for a $50,000 SBA loan plus $15,000 from an investor or partner.

I am Marcus Webb, the owner. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Clear Path Junk Removal will be a limited liability company (LLC) in North Carolina, owned by Marcus Webb. An LLC is a business type that generally keeps your home and savings separate from the business's debts and lawsuits, although a lender may still ask for a personal guarantee. A business attorney or the Small Business Development Center (SBDC) can explain how it works in our state.

What we believe. Do not dump anything illegally, protect the customer's property, and give the price in writing before the first item is lifted.

What we offer:
- Residential pickups. A single load or part of a load of furniture, appliances, mattresses, yard debris and household items.
- Garage, estate and property cleanouts. Full or partial cleanouts for homeowners, families settling an estate, landlords and sellers.
- Property manager and business contracts. Regular pickups for apartment communities, real estate offices and small businesses.
- Later, as we grow: dumpster partnerships and light demolition. The numbers in this plan do not include these.

The space. We run from a leased storage yard or small lot with room to park the truck and stage donations and recycling. We budget $4,800 a year for the yard in Year 1, and the plan assumes this grows about 8% a year.

Licenses and insurance. We will register the LLC with the state, get a business license and an EIN (the business tax number from the IRS, free at irs.gov), and register the truck. I will ask the state and county whether a hauler permit or registration is needed, and where each type of material may legally be taken. Because a truck can fall under federal or state motor carrier rules depending on its weight and where we drive, I will confirm which rules apply before we buy it. We will carry commercial auto insurance, general liability insurance, insurance for customers' property while it is in our care, and workers' compensation once we hire.

Where things stand today. This plan is my starting point. Before I buy a truck, I will visit local disposal sites to learn their fees and hours, ask at least 10 property managers, agents and neighbors about what they would pay, and line up at least 5 repeat customers. If I cannot, I will change the plan before I spend money.

Problem & Opportunity

Getting rid of junk is harder than it looks.

1. No truck and no time. Many people do not own a truck or have the time and strength to load it.
2. Surprise prices. Some haulers quote a low price and add charges when the load is bigger than expected.
3. Illegal dumping worries. Customers want to know their old items will not end up dumped by the side of the road.
4. Hard-to-handle items. Appliances, mattresses and heavy furniture are difficult and risky to move without help.
5. Property managers and sellers need fast, reliable help. A unit that is not cleaned out on time costs money.
6. Reuse and recycling take effort. Many items could be donated or recycled if someone sorted them.

How we will find out if people want this before we spend money. I will talk with at least 10 property managers, real estate agents and landlords, post a simple offer in two neighborhood groups, and ask 20 homeowners what they would pay. Our Year 1 plan needs about 380 residential pickups, about 60 cleanouts and about 90 business and property manager jobs, so I will ask for at least 5 repeat customers first.

Products & Services

What we sell. We have three types of jobs, each priced simply.

1. Residential pickups. The plan assumes an average of about $285 per job in Year 1, rising to about $325 by Year 5. Dump and recycling fees, fuel for the trip and supplies cost about $105 per job in Year 1. We expect about 380 jobs in Year 1 (about 7 a week), growing to about 1,050 a year by Year 5.
2. Garage, estate and property cleanouts. These are larger jobs. The plan assumes about $720 per job in Year 1, rising to about $800, with about $260 per job in direct costs. We expect about 60 jobs in Year 1, growing to about 170.
3. Property manager and business contracts. The plan assumes about $210 per job in Year 1, rising to about $230, with about $80 per job in direct costs. We expect about 90 jobs in Year 1, growing to about 300.

Our prices. We price by how much space the items take in the truck, with a clear price for a quarter, half, three-quarter and full load, plus extra fees only for items that cost more to dispose of, such as mattresses and appliances with refrigerant. The written estimate is final unless the customer adds items.

How it works for a customer:
1. The customer calls, texts or books online and sends photos if they can.
2. We give a written estimate before we start, and the customer approves it.
3. We arrive in a marked truck at the booked time, protect floors and walls, and load everything.
4. We sweep up, take the load to a donation center, a recycler or a disposal site, and send a receipt.
5. We ask for a review and offer a discount on the next job.

Gross margin, explained. "Gross margin" is the share of each sale left after paying for dump and recycling fees, fuel for the haul and supplies. Our plan shows about 63% in Year 1. That money pays the crew, truck insurance, the yard and other bills. Crew pay is counted separately, under payroll.

Market Analysis

Who will use us:
- Homeowners cleaning out a garage, attic, shed or yard, or moving.
- Families settling an estate or helping a parent downsize.
- Landlords and property managers who clean out units between tenants.
- Real estate agents and sellers who need a house cleared before it is listed.
- Small businesses with old furniture, equipment or construction leftovers.

Where we will work. Customers within about 30 minutes of the yard, so that each job leaves time for a second trip and a stop at the disposal site.

How we sized the plan. Our Year 1 plan needs about 7 pickups a week, plus about 60 cleanouts and about 90 contract jobs. That is a little over one job a day, which one truck and a small crew can do. I will check the real numbers by calling property managers and agents before spending money.

Season. Spring cleaning, summer moves and fall cleanouts are the busiest. The numbers show a yearly average. We plan ahead with spring promotions and contracts with property managers that bring work all year.

We are careful on purpose. Year 1 assumes one truck, so quality and safety stay high before we add more.

Competitive Landscape

Other choices customers have:
1. Doing it themselves. It costs less, but takes a truck, a weekend and the dump fees.
2. National junk removal franchises. They are well known, but often cost more.
3. Small local haulers. Some are good, but prices can change after the work starts and some do not insure their crews.
4. Dumpster rental companies. Good for big projects, but the customer does the loading.
5. Donation pickup services, which are free but limited to certain items.

How we will win customers: a written price before we start, a marked truck and uniformed crew, careful handling of floors and walls, legal disposal with receipts, and donation and recycling whenever we can. These are promises we have to keep, and any competitor could make them too, so we will measure ourselves on them every week.

Marketing & Sales Strategy

How customers will find us.
- A free Google business listing with photos and reviews, and a simple website with a price chart and a booking form.
- Property managers, landlords and real estate agents. Visit them in person with a one-page offer and a discount on the first job.
- Neighborhood groups and social media. Share before and after photos, with the customer's permission, and answer questions.
- A referral thank-you. A customer who refers a neighbor gets a discount on the next job.
- Truck lettering and yard signs, where local rules allow, and community cleanup days.

Marketing budget. About $6,000 a year in Year 1 (about $500 a month), growing about 10% a year. The truck lettering, website and photos are paid for from startup costs ($2,800).

Operations Plan

How the business runs day to day.

The yard and truck. A leased lot or storage yard for parking and staging, and a used box truck or dump trailer rig that we choose after checking the safety record, weight rating and cost of repairs.

A normal day:
1. Morning check. Walk around the truck, check tires, lights and straps, and review the day's jobs and estimates.
2. Jobs. The crew arrives on time, walks through with the customer, protects the property, loads the truck and sweeps up.
3. Disposal. We sort items for donation, recycling and landfill, and take them to approved sites, keeping receipts.
4. End of day. Clean the truck, record the day's jobs and costs, and schedule tomorrow.

What we do not take. We do not haul hazardous waste such as paint, solvents, pesticides, asbestos, fuel, medical waste or large batteries, or anything we are not certain we can legally handle, and we tell customers before the job.

Safety. Lifting and strap training for everyone, gloves and boots, two people for heavy items, no work on roofs or at unsafe heights, and a stop-work rule when something looks unsafe. We never dump items illegally, and we pass on donation receipts when asked.

Equipment. About $44,000 to start: a used truck or trailer set-up, dollies, straps, tarps and bins, a phone, tablet, scale and card reader. We set aside about $4,000 a year after that for repairs and replacement, and the plan includes a second truck in Year 3.

Running costs in Year 1: truck insurance about $7,200, fuel and truck maintenance about $7,800, marketing about $6,000, the storage yard and dump staging about $4,800, software, phone and card fees about $2,400, and accounting, licenses and legal about $2,400. That is $30,600 in all.

Payment. Residential customers pay by card at the end of the job. Property managers and business customers are invoiced and most pay within 30 days, so we keep a cushion of cash to cover the wait.

Management & Organization

Who runs the business. Marcus Webb, owner and driver. As owner I will drive the truck, give estimates, supervise the crew, handle disposal and donation stops and manage the money side of the business. I plan to pay myself $36,000 a year in salary.

The team. Pay figures include payroll taxes and workers' compensation insurance.
- Crew member (full-time): none in Year 1, one in Year 2, two in Year 3, three in Year 4 and four in Year 5, at about $30,000 a year each.
- Crew member (part-time): one in Years 1 to 3 and two in Years 4 and 5, at about $18,000 a year each (about 20 hours a week).
- Scheduling and customer service (part-time): one starting in Year 3, at about $22,000 a year.

We hire people who are strong, honest and careful with other people's property, train everyone on lifting, straps and disposal rules, and run background checks (with the person's permission and following the law) on anyone who enters customers' homes.

People who will help us: a bookkeeper or tax preparer, an insurance agent who understands trucking, a business attorney for a one-time review of the customer agreement, and a free mentor from SCORE or the Small Business Development Center (SBDC).

Milestones Narrative

Our goals and when we plan to reach them.
- Before opening (3 to 5 months ahead): confirm the hauler permit, truck and motor carrier rules, visit local disposal and donation sites for fees and hours, ask at least 10 property managers, agents and landlords what they would pay and line up at least 5 repeat customers, register the LLC and get an EIN, open a business bank account, get insurance quotes, find the truck and a yard, and have an attorney review the customer agreement. Buy the truck only after the permit answers and the repeat customers are in hand.
- Year 1: open with the owner on one truck, one part-time crew member and about 7 pickups a week, $170,400 in sales and a profit of about $6,300.
- Year 2: add our first full-time crew member, with about 600 pickups a year, $279,550 in sales and a profit of about $33,700.
- Year 3: add a second truck, a second full-time crew member and a part-time scheduler, with about 780 pickups a year, $379,100 in sales and a profit of about $33,800.
- Year 4: grow property manager contracts, with about 930 pickups a year, $468,450 in sales and a profit of about $36,200.
- Year 5: grow to about 1,050 pickups a year with a crew of eight, $546,250 in sales and a profit of about $46,400.
Growth depends on winning repeat contracts, keeping the truck on the road and handling disposal legally, so treat the later years as goals, not promises.

What we check every week: jobs completed, average job price, disposal cost per job, truck downtime, estimates accepted, reviews and cash in the bank.

Funding Request

How much we need and how we will use it. Total we are raising: $80,000.

How we got that number. The Funding Need Calculator in this plan adds up three things:
- Startup costs of $54,300, listed item by item in the Startup Costs section: $36,000 for used box truck or dump trailer with tool package, $4,800 for dollies, straps, tarps, bins and safety gear, $3,200 for phone, tablet, scale and card reader, $1,800 for disposal fees and supplies for the first weeks, $1,500 for yard or storage deposit, $900 for business license, vehicle registration and local permits, $1,500 for legal and accounting setup, $2,800 for truck lettering, website and photos, and $1,800 for first commercial insurance payment.
- A cash cushion of about $21,200: about 3 months of running costs. Our cash stays above zero in every year of the plan, but lenders still want a cushion in the bank for slow weeks and surprises. They call this "working capital."
- Together that comes to about $75,500, rounded up to the nearest $500: $75,500.
We are raising $4,500 more than that, $80,000 in all, to leave extra room for loan payments in the first years, repairs to the truck and the slow winter weeks.

Where the money comes from:
- My own money: $15,000.
- Amount requested as a loan: $50,000.
- From an investor or partner: $15,000.

Kind of funding we are looking for. An SBA 7(a) small loan through a local bank or community lender, plus investor or partner money. SBA Microloans, which go up to $50,000 through nonprofit lenders, are another place to ask; their repayment times are usually shorter, so the monthly payment would be higher. Investor or partner money is not paid back with interest, but the person gets a share of the business. A family member, a friend, a local investor or a business partner could fill this part. Put any agreement in writing.

How we will pay it back. We expect a profit of about $6,300 in Year 1 while we build our reputation and repeat customers, then a larger profit of about $33,700 in Year 2, growing to about $46,400 by Year 5. With this funding, the business has money in the bank at the end of every year of the plan, and the lowest year-end balance is about $41,000, at the end of Year 1. The loan is planned at 12.75% interest over 10 years, so payments of about $739 a month (about $8,870 a year) are already included in our cash flow. We chose 12.75% as a cautious planning rate. Ask the lender for the real rate, which may be lower or higher.

What we are offering the lender: our equipment as collateral (something the lender can claim if the loan is not repaid) and my personal guarantee (my promise to repay from my own money if the business cannot).

A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan:
- Phase 1: start with a pickup truck and trailer you already own or can borrow (check your insurance), taking small jobs on weekends while keeping your current job. Startup can be roughly $5,000 to $8,000 for insurance, supplies, signage and disposal costs. Get your own quotes.
- Phase 2: once you are booked solid on weekends, buy a used truck, hire a part-time helper and follow this plan.
To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match.

All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume (one page is fine) and any licenses or training certificates.
- A personal financial statement (a list of what you own and what you owe; lenders usually provide a form).
- Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov).
- Proof of insurance, or a quote.
- Your written estimate form, customer agreement and a list of items we do not take.
- Proof of insurance for the truck and the business, or quotes.
- Quotes for the truck and a letter or quote for the yard.
- Letters from property managers or agents who would use you.
If you don't have any of this yet, no worries - let's continue.

The assumptions behind our numbers (change them in the Financials section to match your own):
- Residential Pickups: about $285 per job in Year 1, rising to $325; about $105 per job in direct costs, rising to $117; about 380 jobs in Year 1, growing to 1,050.
- Garage, Estate and Property Cleanouts: about $720 per job in Year 1, rising to $800; about $260 per job in direct costs, rising to $280; about 60 jobs in Year 1, growing to 170.
- Property Manager and Business Contracts: about $210 per job in Year 1, rising to $230; about $80 per job in direct costs, rising to $88; about 90 jobs in Year 1, growing to 300.
- Pay: Owner / Driver $36,000 (1/1/1/1/1); Crew Member (full-time) $30,000 (0/1/2/3/4); Crew Member (part-time) $18,000 (1/1/1/2/2); Scheduling and Customer Service (part-time) $22,000 (0/0/1/1/1). The numbers in parentheses are how many people we plan to have in Years 1 through 5. Pay figures are yearly and include payroll taxes and workers' compensation.
- Other yearly costs in Year 1: truck insurance $7,200, fuel and truck maintenance $7,800, marketing $6,000, storage yard and dump staging $4,800, software, phone and card fees $2,400, and accounting, licenses & legal $2,400. These grow between 5% and 22% a year as the business grows.
- Residential customers pay at the end of the job, but property managers and businesses are invoiced. At the end of Year 1 about $8,520 (5% of Year 1 sales) is owed to us by those customers or is still on its way from card processors.
- Tax rate: 21%.
- Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs