Rent-A-Dumpster | Application Preview
Rent-A-Dumpster is seeking government grants to enhance its fleet and equipment, specifically to purchase an F750 straight truck with a hooklift system and containers that meet customer demand for 20 and 25 cubic yard hook rentals. The total estimated cost for the truck and containers is approximately $190,000.
The business aims to serve the waste removal needs of customers in western South Dakota, particularly in the underserved rural Black Hills and areas within Rapid City. Rent-A-Dumpster plans to advertise through various channels, including online platforms and traditional marketing methods, while emphasizing exceptional customer service to build a strong local reputation. Currently, the company often has to refer potential customers to competitors due to a lack of necessary container sizes.
The financial projections indicate steady growth, with expectations to expand inventory and services over a five-year period, ultimately establishing a curbside trash service for areas lacking municipal waste systems. The business model focuses on maintaining low operating expenses and avoiding debt, aiming for sustainability and continual investment in equipment.
The application highlights Rent-A-Dumpster's rapid online growth and increasing visibility, transitioning from 10th to 3rd on Google within a year. The business also emphasizes its environmentally friendly practices, personalized service, and extended operating hours, which help differentiate it from established competitors like Kieffer, Mammoth, and Black Hills Dumpsters.
Overall, the grant funding is expected to facilitate equipment upgrades to meet growing demand while reinforcing the company's commitment to customer satisfaction and environmental responsibility.
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General Information
Business Registration Number: DL225233
Location: Rapid City, SD, United States
Length of Operation: 1-5
Number of Employees: 1-10 Employees
Annual Gross Income: Less than $100k
Annual Gross Expense: Less than $100k
Open to Loans: YES
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Funding Usage
If awarded, Rent-A-Dumpster will use the funds to upgrade the fleet and equipment. Funds will be used to purchase an F750 straight truck with a hooklift system and three 20 cubic yard and one 25 cubic yard hook container. Inquiring customers most frequently request 20 cubic yard hook containers. F750 hooklift truck - $160,000.00 plus $6,400 tax, 20 cubic yard hook container - $4,587.00 ea plus $298.16 tax, 25 cubic yard hook container - $5,900.00 ea plus $383.50 tax
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Business Plan
I propose to generate revenue by serving customers in western South Dakota, in a 70 mile radius of Rapid City, by meeting their waste removal demands. The targeted demographics of customers will be in the rural Black Hills where competing waste management companies do not service and within city limits where the higher population brings a large customer base. I will continue to utilize various means to advertise and reach the large customer base. These means include: business cards, major search engine listings, Yelp, Yellowpages, and Craigslist, in addition to vehicle vinyl wrap and dumpster signage. Through providing exceptional customer service, the Rent-A-Dumpster reputation will continue to grow in the local community. The demand for dumpster rentals is apparent, however, additional equipment is needed to meet the needs of inquiring customers. On an average summer month, I’ve had to refer 4-7 potential customers to my competitors because I lacked the hook container size that the customers were requesting. Rent-A-Dumpster will utilize temporary 20-25 cubic yard rentals with noncommercial customers being the primary customer base while also serving the commercial companies for small to midsize hook container rentals as I currently do with the dump trailer. The revenue generated from this will be used to start month-to-month residential 64-96 gallon curbside trash containers in the Black Hills area where city trash removal is not available. This will be built on route density and M-TH trash pickup with Fridays being the equipment maintenance and overflow day. My business model is built on limiting, and eventually eliminating, debt while keeping monthly expenses at 80% or less of monthly gross income. Business longevity depends upon strict routine preventive equipment maintenance, safety checks, company procedures, and reserved repair funds. Profits will be rolled-over into the business for upgraded and additional equipment to grow Rent-A Dumpster to meet the demands of my customers. I would be honored and extremely grateful to be awarded the requested amount. Year 1 - Grow customer base with 20-25 cubic yd dumpster rentals - $77,400 projected annual gross income, Years 2-3 - Increase number of 20-25 cubic yd dumpsters to 6 or more depending on customer demand - $116,400 projected gross income per year, Year 4 - Maintain cash flow to build capital for 64-96 gallon curbside trash containers and Curbtender Trash Compactor -$116,400 projected annual gross income, Year 5 - Market and build residential curbside trash accounts based on route density - $116,400 projected annual gross income plus goal of 100 curbside accounts It has been less than a year since the start of Rent-A-Dumpster and, in that time, I’ve utilized the understanding of algorithms to boost positioning on major search engines. Since early June 2022, Rent-A Dumpster was listed 10th when searching on Google for dumpster rentals in Rapid City, SD. Currently, it is listed 3rd. When searching on Bing under the same criteria, Rent-A-Dumpster is the 1st listing. As my 5 star reviews grow and I add the hook containers to better serve customers, my online presence will be boosted even more. My business model is low risk. Rent-A-Dumpster is highly sustainable because there has been no business debt acquired. The 2019 F350 used to pull the dump trailer was a personal truck prior and was financed several years before the start of Rent-A-Dumpster. Growing the business steadily and sustainably is prioritized by purchasing new equipment outright to avoid business debt as was done with the 2022 dump trailer. Each business purchase is calculated and made in order to reduce future costs, increase efficiency, and/or raise monthly cash flow. The vision of Rent-A-Dumpster is to provide exceptional customer service while using industry best practices in waste management with an emphasis on environmental consciousness.
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Self Identified Competition
The top three competitors are: Kieffer, Mammoth, and Black Hills Dumpsters. Kieffer has a large fleet and commercial and residential units. They have various sized units ranging from residential garbage cans to 40 cubic yard roll-off dumpsters. Mammoth has 15 and 20 cubic yard dumpsters. Black Hills Dumpsters specializes in temporary dumpster rentals and has 10, 20, 30, and 40 cubic yard dumpsters and serves the Black Hills area. My competitors were established years before the start of my business which began in June 2022. The volatile prices of raw materials in the current market makes it difficult for a startup business like Rent-A-Dumpster to purchase the equipment needed while keeping the rental prices comparable to the competition. Due to inflation and supply chain issues, equipment costs are presently much higher than what my competitors paid for dumpster bins and vehicles when their businesses were established pre-pandemic. Rent-A-Dumpster is environmentally conscious through safe methods per local regulations and applicable federal guidance while providing unmatched service to the customer through honesty, integrity, reliability, and efficiency. I offer personalized service and extended hours which sets me apart from my competitors. Because of this, I’ve received positive feedback from customers regarding my extended and flexible hours of operation which led them to choose Rent-A-Dumpster over other waste management service providers.
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