Thinking about starting a new portable restroom company
|
Starting a new company in any industry takes a lot of research. Starting up in the portable sanitation business is no
different. What you need to know is most new entrys into the business are taken in by the quantities of portable
restrooms seen on construction sites across the country. How to get started means a lot of fact finding information
Outside of establishing where you will dispose of the waste and what equipment you will ultimately purchase the question
of profitability has to be considered. Over the last decade the business has boomed gaining in general acceptance and
benefiting by construction growth that seems will never stop. The truth is growth will stop it is just a matter of when. Each
year industry professionals wonder and attempt to plan according to the economic outlook for the coming year.
Pricing has, on a large scale been established by determine what all others are charging and then making an offer less than
general market pricing which has resulted in rental prices eroding rather than gaining which is generally more typical in a
good growth market.
Average rental prices have stalled even with the escalating cost of doing business. While many have done very well in the
business and have created good businesses they later discover that narrow profit margins have decreased the overall value
of the business making it difficult to find buyers when it comes time to sell. A recent industry polling indicates that more
than 80% of the existing operators intend on passing their business down rather than attempt to sell.
You may be well served to attempt to buy an established company within the area you are thinking about operating that
endure the battle of obtaining business by offering a rental service at a cost less than your potential competitors who may
themselves not be running in a profitable status.
On the upside there seems to be a lot of business available for those desiring to come into the business. The choice then
rest in your marketing plan, meaning how will you go about getting a portion of the business out there and then will the
market hold long enough to justify your investment., In our opinion a must is seeking membership in the Portable
Sanitation Association (PSAI). This organization has several programs designed to help you succeed, including a
mentoring program that will hook you up with a successful industry leader that is not in the realm of the area you intend to
operate. As an association they have support material and orchestrate an annual trade show as well as a mid year training
type session, both of which can aid you in the success of your new venture. In addition there are several subjects written
in detail that can be found through searching the Journal archives. Many vendors within the industry are equipped with
good solid information which can be helpful in making a final decision. If you decide this business is for you or fits in with
what you are already doing visit our supplier page and search archives for additional information regarding suppliers that
can enhance your success.
Although not highly regulated many states and counties have their own regulations regarding disposal and licensing.
These regulations are changing rapidly. We would recommend meeting with local health officials prior to making any
investment in equipment.
This page by design is very basic and in no way represents all the information that should be considered prior to launching
a new venture into the portable restroom business. If we can be of further assistance simply email or call. Steve McDonald
The Sanitation Journal is a monthly trade publication that caters to the portable restroom industry. Each month
thousands of portable restroom operators utilize information from the Journal to aid in business decisions. Subscribe
today and make sure you never miss an issue.
Serving the American Liquid Waste Industry Since 2002