Trash Service Business Model

Spencer Scott started a local trash collection company called Lone Star Trash after experiencing poor service from his neighborhood's existing provider. He turned neighborhood frustration into a business opportunity by collecting pre-commitments and launching a community-focused service.

Key Components:

• Initial Launch Strategy:

  • Required 200 house commitments before starting
  • Collected $15,000 in pre-sales through Stripe
  • Purchased 200 trash bins upfront
  • Bought used garbage truck for $40k using Amex business credit

• Service Model:

  • One day per week collection
  • $50/month per household
  • 300 houses in target neighborhood
  • Additional 400 houses in sister neighborhood potential

• Marketing Approach:

  • Built referral program website based on Harry's pre-launch strategy
  • Rewards:
    • T-shirt for referring one customer
    • Free month of service for referring 10 customers
  • Uses Facebook community groups for customer acquisition

• Growth Potential:

  • Example from Oklahoma operator: $9M revenue/$2M profit
  • Nearby city contract opportunity: 50,000 houses, $20M/year
  • Plans to expand to new regions if successful
  • Target metrics:
    • Bad year: $150k revenue
    • Decent year: $250k revenue
    • Great year: $350k revenue

• Operational Setup:

  • One truck holds 200 bins worth of trash
  • $250 cost per dump
  • Main costs: truck, bins (pay off quickly), labor
  • Currently has 2 people (himself + 1 employee)