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Expert tips guiding you from start-up to scale-up. 

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Writer's pictureJustin Hubbard

HH #16: The Secret to High Returns: Efficient Effort

Updated: Nov 21


 

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HAULING SPOTLIGHT: Bailey Stewart

 

Company: Blue Bin DumpstersEstablished: 2024

Locations: Salt Lake City, UT

Services: Dumpster Rentals


Q&A with Bailey

What's your inspiration and journey in the hauling industry?

I grew up in the construction world, so I was no stranger to dumpsters. I spent a few years at the beginning of my career flipping houses, and after renting a dumpster one day I started to run the numbers on how much these guys were making on each rental. I’m always looking at new opportunities and this business model really intrigued me. There seemed to be very few moving parts (boy was I wrong), and I’ve always loved running heavy equipment. I sat on the idea for a couple years as I sold off my remaining projects, and decided to take the plunge!

 

I was able to transition over two of my main employees from the real estate business into my dumpster business. It was incredibly stressful doing it this way, as it was very slow at the start and I was committed to providing them full-time work. I had to get very creative to keep them busy and effective. But it forced me to really hit the ground running, there was no time to start slow or to wait to scale. In hindsight, it was a huge blessing. I don’t think I would be as far along as I am now without that added pressure, and my team makes this business better than I could have imagined!

 

What are some challenges you've faced and how did you overcome them?

The biggest challenge we faced with starting this business was definitely buying the equipment. It takes quite a bit of capital to start a dumpster business, and obtaining financing proved to be incredibly difficult. Even if you have all the money you need to start up, it is very tricky to navigate all of the different styles, brands, and sizes of trucks. I had no idea that we’d run into so many different compatibility issues between rail sizes, hold-down bar systems, hooklift heights, dumpster lengths, and staying compliant with CDL regulations.

 

It took a tremendous amount of time and effort to learn about all of these aspects of the business, and it was quite stressful making sure that everything would work cohesively. Fortunately, we were able to deal with any issues effectively and create a system that works great in our market!

 

What are some of your unique selling points?

Dumpster rentals are often viewed as more of a commodity than a service, so we make a

tremendous amount of effort to contradict that. Primarily, we focus on having well maintained dumpsters, eye-catching colors and branding, and most of all, incredible service. We rarely miss a call, and communicate with our customers at least 4 different times throughout their rental via text message, call, and email.

 

Right now our main driver, Zach, is really our super power. His politeness and courtesy to our customers leaves them in awe, and it has generated a lot of reviews and referrals for us. We got our equipment in February and within about 4 months we had over 100 5-star google reviews! Dumpster rentals are one of those services where it can be a bit difficult to stand out, so we are always looking for and experimenting with new ideas to add value for our customers. We strive to attract the type of customer that is happy to pay a premium for better service.

 

What's your social media strategy?

Honestly, we have vastly under-utilized social media. That’s one area where we see a lot

of growth potential, and we are in the process of ramping up our social media presence.

One of the major upsides we see with social media is the ability to build trust with your

customers. Even if you’re not necessarily booking jobs as a direct result of your social

media account, your customers are absolutely going to be looking you up online and a

robust and personable social media account helps us to stand out against our

competitors that simply don't put the effort in online.

 

I know that I feel like a brand is much more trustworthy when I can see them investing time into social media. It indicates that they are in business for the long-haul and that they care about their reputation, and that they aren’t some fly-by-night operation.

 

What's your take on work-life balance?

I’ve always gone back and forth on this topic, and in a lot of ways, I think that work-life

balance is overrated, at least by most people’s definition. If things are balanced, nothing

moves. I am typing this email from my office on memorial day, and do deliveries myself

most weekends while my employees aren’t working. I don’t plan on that always being the

case, but I do believe success requires a touch of obsession, especially in the beginning.

If you want to be perfectly balanced, go get a job where you can clock in and clock out

and not worry.

 

If you start a business expecting to have balance I think you’re in for a rude awakening, at least in my experience. Maybe there are better operators out there that are able to start a business only working 40 hours a week, but I think it takes more than that. I think it takes a tremendous amount of effort and unbalance in the beginning in order to set yourself apart from the crowd and secure your place in the market in any industry.

 

That being said, I think you can still achieve some level of balance while working crazy hours, it just makes for very busy days. I find myself to be much more effective in the office on days that I go to the gym, and it’s crazy the amount of mental clarity it brings. I think that if you had to pick one thing to help you balance your life while in the startup mode, it would be to go to the gym or to take a walk after work. Both of those work wonders.

 

What's your business philosophy and future vision look like?

I guess I haven’t given this a ton of thought, but my business philosophy could be loosely

described as the following: By creating a strong brand that focuses on incredible customer service, quality product, and efficient internet marketing, we will build a business that outlasts us and compounds our efforts for years to come.

 

As we build our brand name and our network of recurring customers, we will be able continually decrease our customer acquisition cost, while continuing to increase the value we deliver to our customers.

 

Welcome to our latest newsletter! As a hauling business owner, it's crucial to constantly evaluate the return on effort (ROE) in your operations. This concept can significantly impact your bottom line and overall business efficiency.

 

Understanding Return on Effort

Return on effort (ROE) isn't just about financial returns, it encompasses the overall value and benefits derived from the energy and resources you invest. For example, consider the time and money spent on setting up a new piece of equipment. Does it enhance productivity enough to justify the investment? Similarly, think about how streamlining your routes can save time and fuel, translating into higher efficiency and lower costs. ROE helps you make informed decisions by comparing the value generated against the effort expended.

 

This concept can guide you in prioritizing tasks that yield the highest returns. By focusing on high-ROE activities, you can ensure that your resources are utilized effectively, leading to better performance and increased profitability.

 

"Efficiency is doing things right; effectiveness is doing the right things." – Peter Drucker

 

Applying ROE to Your Hauling Operations

  1. Equipment Efficiency:  

  • Evaluation: Assess the productivity of your trucks and machinery. Are they providing maximum output for the time and money invested in maintenance and operation?

  • Action: Consider upgrading to more efficient models or enhancing your maintenance schedule to reduce downtime and increase longevity.

  1. Route Optimization:  

  • Evaluation: Analyze your current routing system. Is it the most efficient way to complete jobs, or is there unnecessary mileage and time wastage?

  • Action: Implement advanced routing software to optimize paths, reduce fuel costs, and complete more jobs within the same timeframe.

  1. Employee Productivity:  

  • Evaluation: Look at the workload distribution among your staff. Are their efforts yielding the best results, or is there room for improvement?

  • Action: Invest in regular training and provide tools that enhance their efficiency and job satisfaction, leading to better performance and higher returns on their efforts and in-turn, customer satisfaction.

  1. Marketing Strategies:

  • Evaluation: Review your marketing efforts. Are your campaigns bringing in high-quality leads relative to the effort and budget spent?

  • Action: Focus on targeted, data-driven marketing strategies that ensure your efforts translate into valuable leads and conversions, maximizing the impact of every dollar spent.

 

Owner's Focus

As the business owner, your role is to ensure every aspect of your operation yields the best possible return on effort (ROE). This involves regular assessments and a readiness to pivot when something isn’t working optimally. By concentrating on high-ROE activities, such as refining your marketing strategies, optimizing routes, and ensuring employee productivity, you can drive your business toward greater efficiency and profitability. It’s about smart resource allocation, identifying areas where small changes can result in significant gains, and continuously improving processes for sustained growth.

 

In Closing

Maximizing ROE is about making smart, calculated decisions that enhance your business's efficiency and profitability. This means continuously evaluating and optimizing your equipment, routes, employee productivity, and marketing strategies. It’s about ensuring that every effort counts and contributes to the overall success of your business. By fostering a culture of continuous improvement and adaptability, you position your business to thrive in a competitive market, ensuring long-term sustainability and growth..

 

Stay tuned for next week's insights, and keep hauling success!

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Got ideas or stories of your own? We'd love to hear from you! Reply and or share your insights with us in the Haulers Forum. Together, let's inspire and guide each other toward building businesses that aren't just successful today but poised for future success.


Justin Hubbard

Justin Hubbard

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