The portable sanitation industry, also referred to as the portable restroom industry, generates $3.3 billion in annual revenue in the United States.1 It is projected to exceed $5.35 billion by 2023.2 If you own and operate one of the nearly 3,500 portable sanitation businesses in the country,3 this growth presents a significant opportunity to increase your revenue.
Whether you are just starting out in the sanitation industry or already have a well-established portable sanitation company, this Huddle Business Capital blog article offers tips for growing your business.
Every city and town, no matter its size, has unique requirements for portable sanitation services. To meet these needs, it's essential to invest time in researching your specific market. You can conduct research on your own by exploring online resources, or you can hire a market research professional or firm for assistance.
The research process involves reviewing demographic data and staying up to date on local events and construction projects. These findings can provide insights into the specific needs associated with portable sanitation in your area. Plus, they may help you identify potential clients who may benefit from your services.
Portable restroom services are needed year-round for projects such as long-term construction and agricultural operations. However, demand usually rises during the warmer months, particularly in spring and summer. These seasons present an excellent opportunity to promote your business. Consider targeting seasonal events such as fairs, concerts, sporting events, and weddings. You can uncover these opportunities through market research, as outlined in the previous section.
When reaching out to potential clients, gather details about the project's size and scope. This information will help you recommend the appropriate number of portable restrooms based on the crowd size and facility layout.
One of the most challenging aspects of owning a portable sanitation business is managing inventory. This involves investing in portable restrooms, handwashing stations, and delivery vehicles to meet client demand. Instead of making a large one-time purchase, you can finance or lease this equipment to better manage costs.
One common strategy is to maintain enough inventory for your current clients and add more units as needed. This approach can help prevent overspending and maintain cash flow. If you find that managing your inventory is too time-consuming, consider using inventory management software. This software lets you monitor your stock levels at job sites and in storage, so you always know how much you need.
Some discerning clients may prefer luxury restroom trailers for events such as weddings, VIP functions, video shoots, and corporate parties. By offering luxury options, you can boost revenue and gain a competitive advantage. Luxury restroom trailers are available with one or multiple stations and feature a variety of amenities that vary by make and model. These may include flushing porcelain toilets, climate control/odor-free waste tanks, sound systems, granite countertops, showers, and mirrors.
In addition to helping drive revenue, luxury restroom trailers offer the added advantage of a straightforward delivery and setup process. You and your team just need to place it on a flat surface, stabilize it, open the stairs, and hook it up to power and water.
You don't need to hire an expensive marketing agency or invest a small fortune in a traditional advertising campaign for your portable sanitation business. Instead, focus on low- or no-cost marketing efforts. Effective low-cost options include a local press release, a targeted email campaign, and periodic blog content. Free marketing strategies you can utilize include engaging on social media, networking within your community (i.e., joining your Chamber of Commerce), creating a free Google Business Profile, and using LinkedIn.
When crafting your marketing message, consider what sets your portable sanitation business apart from the competition. For instance, if you serve corporate events and weddings, highlight your luxury restroom units and handwash sinks.
One of the most effective strategies for driving revenue is to establish partnerships with local businesses that need portable sanitation services. Reach out to local contractors and builders—both residential and commercial—to secure contracts for construction sites. Additionally, consider contacting hotels, concert venues, and event planners, such as wedding and corporate event planners, to explore further opportunities.
Once you establish a local business partnership, you must deliver on your client's expectations and complete the tasks outlined in your contract. Make sure that you deliver and set up the portable restrooms on time, service and clean them as needed, and restock bathroom supplies regularly. By doing this, you can help generate repeat business.
When you meet with a prospective client to discuss their project, take detailed notes and ask questions to gain as much information as possible. Then, take the time to write out a detailed budget that includes a timeline, all relevant costs, and any potential contingencies. Present this budget on your company's letterhead and include a cover letter expressing your gratitude for their consideration of your services.
This approach takes time, but it is far more professional than sending a vague budget that seems hastily put together at the last minute. Your goal is to land clients, and a well-structured, detailed budget can help you achieve it.
As summer draws to a close and the temperatures begin to drop, the demand for portable restrooms tends to decline. That's because many outdoor events and gatherings, which are plentiful during the warmer months, also come to an end as fall and winter approach. Therefore, it's wise to prepare for this slow period by saving enough capital to support your business during these months.
If you need an influx of capital during a slow period, a working capital loan is a viable option. Available with Huddle Business Capital through our network of top-tier lenders, this type of loan can be used to bridge cash flow gaps and manage daily operational expenses.
1, 2 - https://www.grandviewresearch.com/horizon/outlook/portable-toilet-rental-market/united-states
3 - https://www.ibisworld.com/united-states/number-of-businesses/portable-toilet-rental/4716/
This Huddle Business Capital blog article is purely educational and contains general information and opinions; it is not intended to provide advice or recommendations of any kind. Huddle Business Capital is not affiliated with nor endorses the companies mentioned in this article.