We just added another service after years of thinking about it. Why did we wait so long to add another service and why should you too? Lee Godbold from JRA explains the JRA Way of adding services.
What’s going on guys? I hope everybody is doing good this afternoon. It’s about 5:00 o’clock Thursday afternoon. Got Memorial Day weekend coming up. What’s everybody doing for Memorial Day weekend? I got plans heading to the beach. We’re heading down to the beach for Memorial Day weekend. I got a lot of work to get done this weekend. Take advantage of this weekend. Get a lot of work done. That’s not what I’m talking about today. What I’m talking about is what’s behind us right here. We got you U-Haul behind us. We are now renting out U-Haul as kind of another source of income. What’s you always want to remember? You always got to think about your opportunity cost when you when you bring on additional income like this. What is it going take to do this correctly? It’s the amount of money you’re going to bring in, worth the additional headache and time. For example, we’ve thought about doing U-Haul for years. We just now pulled the trigger. So, what was our thought process on just now pulling the trigger?
It’s the fact that we’ve got more people now, so we got more business and people we have at this location. Our main business office is being moved about 15 minutes from here over the next month and a half. It’s going to be the Junk Removal Authority office. It’s five individual offices and then it has an area for our call center. Conference room and all that sort of stuff. We’re moving all of our business office there, but this is going to be the main Junk Doctors office. It’s still operating out of a single wide trailer like we have been for years with Junk Doctors. We have great road access here. What we’re doing is we’re putting our dispatch guys. All the guys keeping up with dispatch for both Junk Doctors as well as any other junk removal companies that work with us.
Part of our absentee owner option that we have for junk removal business where we run majority of the business and the owner puts the money up to finance it. Keeps stuff inventoried, hires people, and dealing with customer complaints. Checks people in the morning and afternoon. He or she might have another job, they’re working in the middle of the day or they just let us handle most of the job dispatch and booking jobs. All that sort of deal. Those people be here. The call center is not here. Can’t see a whole lot of these pods. Behind us, it is where we keep stuff. Part of that was our shop. All of our dispatch the truck crews and all, we’ll check in here.
All of our office personnel other than dispatch are moving to Apex. Our dispatch that’s something if you missed a call for a dispatch customer. It’s not a huge deal. We already have a separate phone number that rings for U-Haul customers and dispatch We’ll probably split those up into two additional lines where we know if it’s a U-Haul call or a dispatch call. What we don’t want to happen is U-Haul calls get routed to the same phone number as Junk Doctors calls. We don’t want to miss on Junk Doctor’s business and Junk Doctors calls to rent U-Haul. That’s one of the reasons we went this way. That way we had enough people answering phones where there wasn’t a potential for us to miss either Junk Doctors call or somebody else’s call. Some other company we work with and Junk Removal Authority call, to rent a U-Haul
Now that we have that, our dispatch is responsible for selling items out of these pods. Then for renting U-Haul. Our thought is between the U-Haul rentals and item sales. We aren’t actually make money on having dispatch people in addition to the amount that we e get paid to actually handle dispatch for other companies. Again, we didn’t do this until we had the people to do it. You don’t ever want to bring on another income stream if it’s going to potentially lower your current and proven income stream. That’s something you always have to remember. You always want to find multiple income streams at some point. Dumpster rentals is another good example. I get asked all the time, should I go in and get a dumpster truck? You’re just starting junk removal company, they’re young.
Handling The Junk Business
No, work on your main business until it’s running mostly without you. Where it’s running smoothly. Where you’ve hit it. Where you’re putting additional effort into that business isn’t going to bring you more junk removal business or you’ve hired somebody that can put in that additional effort to get you more junk removal business. Then you focus your attention on dumpsters or you hire somebody to deal with dumpsters. Don’t reduce your income stream through one service. In this case, junk removal to get more income from dumpsters when you could just focus on junk removal and probably make more money because you’re going in different directions. Dumpsters are a little challenging. You’ve got to keep up with the dumpster. You dropped them off, pick them back up. Inventory has to do with them.
You really need a bunch of different bins to be efficient in dumpsters. You need minimum 10 bins. That’s what I would consider good money in dumpsters. Some of you all might consider what you can get all 4 or 5 bins to be good money. You don’t want too many options. There is plenty of money out there and just junk removal. Once you get to the point like we are with Junk Doctors where you’ve gotten worth 2 million a year. Once you get to a million a year, that isn’t among 3 locations. Now, Raleigh does a few hundred thousand dollars over a million. Charlotte and Greensboro kind of make up the rest. Once you get one location close to a million depending on your market size. If you’re in a smaller market, maybe 750,000. Look to add additional services like U-Haul. Look to add additional services like dumpster rental. Maybe add a cleaning company or maybe expand into another market at that point, but don’t expand into another market before you’ve reached your maximum potential in the current market you’re in.
Don’t expand it to another service until you’ve your maximum potential for the current service you’re in. If you do, you’re both services will suffer. You’ll get pretty discouraged a lot of times. If you get discouraged then the entire business could potentially go out of business. People always underestimate what it takes to get a new service up and running. Now, the one exception to that is if you’re going into business with money. I still wouldn’t expand too quick, but it’s very well possible if you have the resources to hire multiple people that you can actually start multiple services close together. I wouldn’t start them all at once, but you might be able to start a cleaning company a year after you started junk removal company or a dumpster rental a year after you started junk removal company. You had multiple services.
If you have a bunch of money to go out there and hire a bunch of people and take losses for a year or two. If you’re able to do that and you’re a great business manager. If somebody goes out and does that, they’re going to know pretty much everything I’m talking about right here. This isn’t going to be new information to them. They’re going to be a very sophisticated manager, business owner or investor. If they have the resources to go out and start that. The people I’m really talking to are the people that are just starting to get a little bit of business going with junk removal or whatever business they’re doing and they’re looking to expand into dumpsters or something like that. You haven’t reached the full potential in your current market.
Don’t go rush into another market before you’ve at least reached most of your potential in the current market you’re in. A lot of you all leaving money on the table by not doing AdWords. If you’re not on Google, you’re leaving tons of money on the table. I can guarantee you Google will double your business depending on how long you’ve been in business. I’ve been in business in 10 years. Google might not double it, but if you’ve been in your business a couple years we can have AdWords double your business. That is how good AdWords is. We’ve done so much for the couple of people we’ve been working with on AdWords. I’m ready to help out a lot more people because it’s amazing. Absolutely amazing what AdWords has done. It has been the single greatest thing to our business.
We made a lot of mistakes. Our stuff now is so streamlined. There wasn’t a JRA when we started Junk Doctors. We took six years of data and just put this AdWords campaign which allows us to go into additional services like this. If you’re not on Google, you haven’t reached your full potential. Until you’ve reached your full potential, don’t go into other services. If you got any getting questions, give me a call at +1 919-466-9322. You can visit junkremovalauthority.com. Really looking forward to bringing out a brand new JRA website. It’s going to have tons of information and content. All that is going to be coming out here real soon. Everybody just kind of have a wonderful Memorial Day weekend. Take this time to really think about your business. You’re getting into busy season now. You could be making some money.
It’s time to make some investments in your current business this year. To help you out this year and to help you really become successful into the future. I hope everybody has a great Memorial Day weekend. Of course, we’ll be doing videos daily even all the way through. I might be sipping on a Margarita at the beach, but we’ll be doing videos every day. Talk to everybody soon.