How We Acquired A Junk Removal Business And Grew It To $1.2M Per Year
Hello! Who are you and what business did you start?
Hello, I'm Ben Sharpe, a seasoned entrepreneur based in Seattle with over 20 years of experience in owning and managing various service businesses. With a background in electrical engineering, I've always been driven to innovate and improve operations.
In January 2023, I acquired Junk B Gone, a leading junk removal service in Seattle. We offer full-service junk removal for both residential and commercial clients, focusing on keeping our community clean and environmentally responsible.
Since taking over, we've nearly doubled the size of the business based on revenue and have expanded our team from 8 to 12. This growth has been driven by the integration of key tools like a CRM system for better customer communication, Jobber for efficient scheduling, and a revamped website to improve the customer experience.
What's your backstory and how did you come up with the idea?
My journey into the world of service businesses was driven by a simple philosophy: the allure of "boring service businesses." Unlike the high-stakes world of software startups, where success often hinges on securing significant funding and achieving monumental breakthroughs (e.g. “Grand Slam Home Runs”), service businesses offer a different kind of reward.
It's about consistently hitting “base hits”—doing the simple things right. In many service sectors, businesses falter in executing basic tasks: returning customer calls promptly, sticking to schedules, and offering genuine courtesy. At Junk B Gone, we've made it our mission to excel in these areas, and it's this commitment to everyday excellence that sets us apart.
The opportunity to acquire Junk B Gone came through a broker. What caught my attention were the promising margins, its dual focus on both commercial and residential clientele, and its resilience against economic downturns. Moreover, it beautifully complemented Pacific Facilities and Construction, our sister company that offers commercial handyman services throughout Seattle.
As I scoured the market, evaluating over 20 potential businesses, Junk B Gone stood out. It had a robust team, an impeccable reputation, and immense growth potential. The icing on the cake? The original owners' willingness to stay on board and collaborate on elevating the business.
My background in electrical engineering has been instrumental, especially when it comes to integrating technology into our operations. Within just three months, we had implemented three cutting-edge technology platforms, streamlining our operations and enhancing the customer experience.
This tech-savvy approach, combined with my extensive discussions with the previous owners and consultations with business leaders in my network, solidified my decision. Seattle's growth trajectory and the ever-present demand for junk removal services, given society's increasing materialism, further validated my choice.
The world was just starting to emerge from Covid and the economy was very strong but the Fed was rapidly raising interest rates and financing for these businesses was uncertain as I considered purchasing Junk B Gone. For me, it was important that I was purchasing a business that was pretty low risk and would be resilient in the face of an upcoming recession.
I wanted to make sure that the business had little or no debt so that we didn’t have the pressure of debt when operating the business in a downturn in the economy. It’s difficult to say whether or not a downturn with materialize in the Seattle area but being conservative in our approach was important to me.
Take us through the process of building the first version of your product.
I purchased Junk B Gone from Ann and Booker Scott, who started this business over 30 years ago. I met the husband and wife team through OneAccord, a Kirkland based business broker, and initially, we couldn’t come to terms on the price to acquire the business. It was the classic log jam between buyer and seller - my price was too low, and their price was too high.
About 18 months later I was in Las Vegas at a tradeshow with a friend when Ann called me and said “I think our price expectations are closer to where you were, are you still interested?” At that point, I had started Pacific Facilities and Construction with another partner and we both thought the junk hauling business would fit in nicely!
When I first took over Junk B Gone, my immediate focus was on modernization and employee well-being. We swiftly implemented Jobber for efficient scheduling and dispatching and integrated a CRM to streamline our customer communications across phone, text, and email.
But it wasn't just about technology; I introduced a bonus program for all employees and provided them with health and medical benefits as well as paid time off. These changes were not just for operational efficiency but also to cultivate a motivated, happy workforce.
The initial challenge was akin to a deep dive—a rapid, immersive learning experience. The previous owners were incredibly supportive, but I had to quickly grasp the nuances of a business that had been successfully running for 30 years. This was crucial for me to identify areas for optimization and set the stage for the next growth phase.
While we didn't make any drastic changes to our core services, we did invest in expanding our fleet with two new trucks. This was a strategic move to increase our capacity and serve our growing customer base more effectively.
I think acquisition entrepreneurship is an often overlooked opportunity to make a great living and make a real impact on the lives of your employees and your customers.
Describe the process of launching the business.
Taking over Junk B Gone was an exciting venture, but it wasn't about reinventing the wheel. The business had been successfully operating for over 30 years with three full-time trucks. My vision was to scale it beyond that, and for that, we needed systems that could grow with us. The previous owners had been using paper-based scheduling, which was effective but limited.
We transitioned to Jobber, a digital solution that not only handles scheduling but also automates reminders, enables text communication with clients, and manages invoicing and payments. This was a game-changer, allowing us to schedule well into the future, something the paper system couldn't handle. We also implemented a CRM system for new customer intake, enabling multiple team members to sync up on communications and bookings.
Financing the business was straightforward. While I initially considered a bank loan, I ultimately decided to pay cash, supplemented by a short-term seller note. This gave us the flexibility to make immediate changes without the constraints of loan repayments.
One of the most eye-opening lessons has been understanding the emotional aspects of junk removal. Whether it's helping someone clean up an estate after a loved one has passed or assisting individuals who struggle with hoarding, the job can be emotionally charged. I'm incredibly proud of our compassionate team, who handle these sensitive situations with grace and dignity.
We also gave the branding a facelift, modernizing the logo and website to reflect our new direction. The transformation has been remarkable, and I'm excited to share those examples.
New Logo:
Old Logo:
Since launch, what has worked to attract and retain customers?
Our approach to growth has been multi-faceted. We've revamped our website and invested in SEO, but the real game-changer has been leveraging our existing customer relationships. We've been proactive in identifying additional problems we can solve for our current clients.
This has not only deepened our customer relationships but also increased our job volume. Additionally, our sister company, Pacific Facilities, has been a fantastic source of cross-referrals, amplifying our reach and customer base.
We keep a close eye on key performance indicators like the number of jobs per day, revenue per truck, and how far in advance we're booked. Striking a balance is crucial; we aim to be booked but not so far in advance that we turn away business. If we find ourselves booked out for more than a few days, it's a signal to add another truck and crew to the schedule.
One of our most successful initiatives has been the implementation of a CRM system. It's revolutionized our response time for new customer inquiries. We also send follow-up messages to customers who haven't responded, which has been perceived as excellent customer service.
As for retaining customers, we acknowledge there's room for improvement. We're exploring ways to routinely engage with our existing customer base, either through dedicated sales efforts or periodic emails.
How are you doing today and what does the future look like?
Today, Junk B Gone is thriving and profitable, aligning well with the financial metrics typical of home services businesses. Since taking over, we've nearly doubled both our top-line revenue and bottom-line EBITDA cash flow. Remarkably, our customer acquisition costs have been minimal, as most of our growth has been organic.
Our sales volume is predominantly commercial, making up about 70% of our business, while residential clients account for the remaining 30%. Operationally, we've scaled up to six trucks and six crews, totaling 12-14 field staff. We've also expanded our management team, adding a scheduling manager to work alongside our general manager and an office staff member responsible for accounts payable, receivable, and accounting.
Looking ahead, our focus is on scaling the core junk removal business. We're targeting new commercial accounts and considering diversifying our services, such as venturing into landscaping debris removal. My goal is ambitious yet achievable: to double the business again by the end of 2024 and then aim for 30-40% annual growth, focusing primarily on the Seattle market.
Through starting the business, have you learned anything particularly helpful or advantageous?
Taking over Junk B Gone has been a journey filled with valuable lessons. While there haven't been any significant mistakes, the experience has been a testament to the power of good decision-making. Implementing technology solutions like Jobber for scheduling and a CRM for customer communications has been transformative. These tools have not only streamlined our operations but also significantly enhanced our customer experience.
Another advantageous decision was to focus on employee well-being. Introducing a bonus program and providing health benefits and paid time off have cultivated a motivated workforce, which in turn has positively impacted our service quality and customer satisfaction.
While external factors like timing or market trends haven't played a significant role, the key lesson has been the importance of adaptability and proactive problem-solving. Whether it's identifying the need for an additional truck when bookings increase or recognizing the emotional aspects of the junk removal business, being attuned to these nuances has been crucial.
What platform/tools do you use for your business?
In today's fast-paced business environment, leveraging the right tools can make all the difference. At Junk B Gone, we've strategically implemented a couple of key platforms to streamline our operations and enhance customer interactions. Jobber has been a game-changer for us in terms of scheduling and dispatching. It allows us to manage our schedule digitally, send automated reminders to clients, and handle invoicing and payments, all within a single platform.
In addition to Jobber, we use a CRM system for customer communications. This platform enables us to respond to new customer inquiries promptly and also allows for follow-up messages, enhancing our customer service.
These tools have not only helped us operate more efficiently but have also been instrumental in providing a superior service experience for our clients.
What have been the most influential books, podcasts, or other resources?
Great question. I listen to a variety of business podcasts including The All-in Podcast, Acquired, We Study Billionaires. I spend a lot of time learning from various people on X (formerly Twitter) in the small business, startup, venture capital, crypto, and real estate communities and each year I read Warren Buffet’s annual letter to shareholders as I get a ton of wisdom and insight from the most iconic person in business.
Advice for other entrepreneurs who want to get started or are just starting out?
I think acquisition entrepreneurship is an often overlooked opportunity to make a great living and make a real impact on the lives of your employees and your customers.
As I’ve mentioned previously, hitting a series of base hits by doing simple things effectively can lead to a very successful business where you can create a lot of value.
Are you looking to hire for certain positions right now?
We’re always hiring great people! Right now I’m looking to hire a new General Manager, the previous owner is moving to retire in the next couple of years so I would like to hire his replacement. I’m also looking for great people to join our crew as junk haulers!
Where can we go to learn more?
- Visit our website
- Call us at 206-722-4285
If you have any questions or comments, drop a comment below!
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