8 minute read
FRANCHISE GROWTH
FRANCHISE GROWTH
charlotte@wilcobr.com photo courtesy Drew Hirt
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JUNK FRANCHISES
Solving Problems by Adding Profit to Them
For Drew Hirt, owner of The Junkluggers of Round Rock & Georgetown, the term “junk” is a bit of a misnomer. ‘Junk’ often initially conjures images of Sanford and Son picking up items for the junkyard. But today, according to the Bureau of Labor Statistics, the junk removal industry, which includes junk moving, hauling, and packaging, is a $10 billion industry a year. The 90s and new millennium saw exponential growth of the junk removal industry when junk haulers started popping up as franchise owners. Some of this growth can be attributed to the rise of the Internet, where we find people looking for others’ so called trash.
THE PAIN POINTS
At the root, junk hauling is about resolving customers’ issues, such as when a loved one passes away, an empty-nest couple moves to a smaller home, or a real estate investor has to deal with unfortunate hoarder issues,” Hirt says. Much of what Junkluggers haul is donated or recycled, and they also focus on partnering with business customers—real estate agents and investors, residential and commercial property managers, senior living communities, and professional organizers. All their efforts are aimed at creating a positive win-win solution for their customers, the environment, and local communities, Hirt says.
Hirt admits at first he was skeptical when his franchise consultant suggested junk removal as a business opportunity. At the time, he was working as a commercial lender in the banking industry while searching for the right business to make the leap from finance to entrepreneurship—his original goal when he entered the banking field 15 years ago. “Banking is a stable industry. I could have stayed there and earned a decent living, but I wanted to be more hands-on and involved,” he says. “Instead of helping other people build their business, I wanted to build my own.”
He also realized the timing was right. “I have three kids and if I waited much longer, they would be involved in multiple activities, I would be stretched too thin and kicking the can down the road. I knew if I didn’t do it now, I was never going to do it. After discussions with my wife, we decided to go for it.”
The more he thought about opening a Junkluggers location, the more it made sense. The number of businesses in the waste collection services industry stands at 11,8061 and the average industry growth from 2015–2020 was at 1.4 percent. Experts predict this industry will continue to steadily grow for the next decade as lifestyles trend toward minimizing and upcycling.
PERFECT TIMING
Hirt is a perfect example of adapting service concepts to current needs. Many businesses may not be able to shift revenue streams while staying true to brand, but changes in the market since 2020 have created gaps in consumer and business needs that are easily filled by companies already midstream in a supply chain and fully staffed. Much like Hirt, who took advantage of near universal lifestyle changes due to pandemic conditions; i.e., people redesigning their home spaces because they spend more time there, and recognizing consumers’ need to reduce and recycle things they previously would not have noticed.
Hirt also truly appreciates the company’s eco-friendly focus, emphasizing The Junkluggers doesn’t just pick up junk, dump it in the landfill, and move on to the next job, like many other junk haulers. Instead, they are dedicated to donating unwanted items to nonprofit organizations and/or recycling them when possible.
THE BUSINESS OF TRASH
The Junkluggers is based in Connecticut and has approximately 77 locations across the U.S., all of which are focused on keeping reusable waste out of landfills to serve the environment and local communities better.
Hirt opened The Junkluggers of Round Rock & Georgetown in September of 2021, a slightly bumpy beginning fraught with pandemic conditions, supply chain issues, and a lack of delivery drivers for their commercial trucks. However, with a solid team of luggers now assembled and a new bright green commercial truck, he is enthusiastic about the future of The Junkluggers. His luggers serve Round Rock,
1 IBIS World
At 11 million tons, electronic waste makes up just 2 percent of the total waste in America, but represents 70 percent of the toxic waste volume.
The average American generates about 4 -1/2 pounds of waste every day, and that’s not even considering the things in your home that you’ve held onto for a while but no longer have a use for. (Moving.com) Junk removal is expected be an $80.7 billion market in the U.S. alone by 2023. Worldwide, it is a $1.3 trillion market. The U.S. waste industry is valued at $75 billion each year, with junk removal accounting to $10 billion each year. Revenue has developed an annualized 1.4 percent to $51.6 billion over the five years to 2020, including a 6 percent decline in 2020. A typical single-family home will reimburse around $210 for junk removal while a business typically spend about $500.
east Austin,
Manor, Elgin, Taylor, Georgetown, Temple, and Burnet—all of which he says are rapidly growing areas. Going forward, Drew plans to host electronic waste drop-off events while partnering with local community organizations.
To reduce waste, he partners with local recycling and donation centers such as the Round Rock Area Serving Center, Georgetown’s The Caring Place, Pflugerville’s Circle of Hope, Habitat for Humanity, Salvation Army, and Goodwill outlets.
“We want to leave the planet in a better condition for future generations, and I truly believe The Junkluggers can help people in their communities accomplish that goal. Additionally, by partnering with local charitable organizations, I feel that we are truly benefiting the communities we serve.”
FINANCE
by William Boughton
An Entrepreneur’s Life
BUSINESS OWNERS ARE UNIQUE
Business owners are a different breed. If you are in this group, you have decided to exchange the security of a steady paycheck for the belief that you can achieve more by taking the risk of building something of your own. You have been willing to make great sacrifices to succeed and demonstrate that the American Dream can be a reality.
While incredibly rewarding, entrepreneurship comes with a unique set of challenges. Your financial life is likely much more complex, requiring a multifaceted approach to developing a plan for long-term success.
PLANNING FOR THE NEXT GENERATION
Retirement, for example, can look quite different. Not only must you consider personal long-term retirement savings and investments but also the future of your business. You may need a plan to unlock its internal value to provide for your needs in retirement. You may wish to sell it, or transition leadership to family or a key employee. A transition plan for when you are no longer at the helm is a must.
Your estate plan may also be more intricate than that of a typical family. Passing an operating business and its assets directly to your heirs may not be a viable plan. Also, business owners’ estates tend to face more complicated tax situations. BUILDING YOUR TEAM
These are but a few considerations business-owners face. The good news is there are ample resources and experts to help. It is never too early to start planning and putting together a strong team of advisors to help with the process is a great first step. Fiduciary Wealth Management Advisor – adds tremendous value and serves as your financial quarterback. They can help identify areas of opportunity and connect you with planning resources. Certified Public Accountant (CPA) – an invaluable asset who not only ensures your taxes are done correctly but also helps you plan future tax considerations. Estate Planning Attorney – a critical partner who can help you craft an estate plan to protect assets and assure heirs are cared for in alignment with your wishes. Insurance Agent – an experienced and reputable agent can help identify cost-effective strategies for protecting your family, business, and assets from unforeseen risks.
The rewards of building your company are well worth the risks you have taken and the sacrifices you have made along the way. Protecting your investment and your loved ones with prudent planning is a key step to achieving peace of mind and fully enjoy the fruits of your labor.
SAFEGUARDING YOUR SUCCESS
The time may come when reinvesting liquidity back into your business does not generate the value it did in years past. If so, alternative modes of investment such as diversified liquid investment portfolios may be prudent.
Protecting yourself and your family from business-related liability is critical. Should you unexpectedly pass or be unable to continue leading the business, your operation and employees could be in sudden jeopardy. Assuring your employees’ welfare is protected if you were to stop leading the business may also be a consideration. A combination of insurance and continuity planning may be key to protecting your company and those who matter most.
Securities provided by VeraBank Wealth Management are not deposits of VeraBank, are not FDIC insured, have no financial institution guarantee, and may lose value
William Boughton Trust and Wealth Advisor VeraBank, N.A. 512-869-8181 Ext. 7306 wboughton@verabank.com www.verabank.com
WILLIAM BOUGHTON
William joined VeraBank in 2019, bringing with him over 15 years of experience as a trusted advisor to domestic and international clients and investment entities. He received his Master of Science in Finance and Economics from West Texas A&M University. He also earned his Graduate Certificate in Wealth Management and Estate Planning from the Cannon Financial Institute. William also has attained the Certified Trust & Financial Advisor designation.
