Starting a trash collecting business

From: alexhormozi

This article outlines how to start a trash collecting business, emphasizing customer acquisition strategies and leveraging initial services to build a sustainable model. The core principles discussed are applicable to various service-based businesses [00:05:59].

The Core 4 Customer Acquisition Methods

To start a business and turn “trash into cash,” the first step is to acquire customers [00:00:08]. The video outlines “The Core 4” methods for gaining customers [00:01:29].

1. Warm Outreach (People You Know)

The easiest way to get customers is by talking to people you already know [00:00:10].

• Initial Contact: Pull up your phone contacts and find someone to call [00:00:15].
• Personalized Approach: Start with a personalized tidbit, possibly found through social media pre-research [00:01:48].
• Direct Question: Ask a direct question about the service you offer, e.g., “Is anyone taking out your trash?” [00:01:54]. The goal is to identify if they spend time on a task you can do for them [00:02:24]. Frame your service as “time-saving” [00:02:44].
• Offer Free Service: Offer to do the service for free for a few people (e.g., five or ten) to gain testimonials and reviews [00:03:57]. This allows you to practice and get feedback from “friendlies” [00:04:32].
  • Value Proposition: Emphasize that the client is “helping you out” by letting you perform the service for free, rather than you doing them a favor [00:05:11]. Your time isn’t valuable yet if you’re not making money [00:04:27].
• Outcomes from Free Service: You can make money in four ways from offering a free service [00:04:21], which contributes to building a sustainable business model:
  1. Become a Customer: They like the service and become paying customers [00:04:39].
  2. Leave a Review: They don’t become a customer but leave a valuable review [00:04:46].
  3. Refer a Friend: They send you a friend as a referral [00:04:51].
  4. Provide Feedback: They offer feedback on how to improve, which can lead to long-term money making [00:05:01].
• Scripted Conversation: Follow a script initially, as it helps when you don’t know what you’re doing [00:02:56]. Over time, you’ll find your own rhythm [00:03:19].
• Getting Referrals (Three-Way Text Intro): Ask if they know others who might benefit from your service [00:03:09]. Instead of asking them to remember to make an intro, ask for a three-way text introduction immediately [00:06:07]. This directly provides leads and makes the new contact more polite [00:06:16].

Limitations of Warm Outreach:

• Time: You have limited hours in a day to make calls and reach out [00:07:07].
• Network Size: You only know so many people. Even with email lists, phone contacts, and social media followers, you can quickly exhaust your warm network [00:07:09].

2. Posting Free Content

The second way to acquire customers is by posting free valuable content [00:07:36]. The goal is to provide so much value that your audience asks for more, either free content or paid services [00:09:18].

• Content Structure (Hook, Retain, Reward/Call to Action):
  • Hook: Capture attention in the first 3 seconds, as this is the most critical part of a content video [00:09:39]. Hooks can be questions, jarring statements, or crazy topics that generate curiosity [00:10:54].
  • Retain: Keep the audience engaged using lists, steps, stories, or a combination [00:10:00]. Use “open loops” (e.g., “Way number one…”, then “Way number two…”) to encourage viewers to watch to the end [00:11:09].
  • Reward/Call to Action: The end of the content should encourage sharing (e.g., a funny moment that subverts audience expectations) or include a clear call to action (e.g., “Call 1800-Alex-Trash”) [00:10:20].
• Content Strategy for Local Business:
  • Consumer-focused: Offer tips about trash that improve their lives, independent of using your services [00:11:48].
  • Recruitment-focused: Target potential employees by showcasing what a sales or trash collecting job looks like [00:11:56].
• Content Tips:
  • Remind More Than Teach: People need to be reminded frequently. It’s arrogant to assume your audience consumes all content or remembers it perfectly [00:12:16]. Re-use concepts across different formats (tweets, videos, captions, podcasts) [00:12:42].
  • Leads from Engagement: People who like, engage with, or comment on your posts are leads that you can message [00:13:33]. Engagement gives you a reason to reach out without seeming like a “scumbag” [00:13:45].
  • Reframe Views: Instead of being discouraged by low view counts, imagine the number of views as the size of a room you’re speaking in [00:14:08]. Seventeen views is a full classroom, and reaching them for free is valuable [00:14:19]. Everyone starts at this point and builds from there [00:14:40].

3. Cold Outreach (Strangers One-on-One)

Cold outreach involves reaching out directly to strangers through various methods [00:15:56]. This method requires learning how to sell and handle rejection [00:23:17].

• Methods: Email, phone calls, direct messages, SMS, voicemails, or door-to-door sales [00:17:07]. Door-to-door is considered the most aggressive but builds immense respect and thick skin [00:22:50].
• Preparation for Door-to-Door:
  • Visual Cues: Dress in work clothes and carry visual aids (like trash over your shoulder) to immediately demonstrate your service and create curiosity [00:17:21].
  • Leverage Existing Clients: Use “name dropping” by mentioning you work with their neighbors (e.g., “the Johnsons”) [00:17:45]. This disarms the stranger, builds trust, and increases the likelihood they will give you time [00:18:21].
• Sales Script (for “no” vs. “yes” to existing service):
  • Initial Question: Ask if they already have someone providing the service, rather than directly asking if they want your service [00:18:49]. This allows you to guide the conversation regardless of their answer [00:19:02].
  • If “No” (No existing provider): Use a “no-based question” (e.g., “Would you be opposed to me doing it for you?”) which statistically yields more “yes” responses than direct “yes-based questions” [00:19:28]. Once they say yes, stop talking and get the business [00:19:59].
  • If “Yes” (Has existing provider):
    • Rapport Building: Be friendly and upbeat. Use humor (e.g., “Are they as awesome and smiley as me?”) to disarm and make them less likely to be rude [00:21:08].
    • Alternative Offer: Introduce a superior offer, such as a free trial period (e.g., “Do they also do it for free for this month?“) [00:21:53]. People who already pay for a service are more likely to buy from you [00:19:20].
    • Close the Deal: Ask for ID and credit card information to secure the payment details, holding onto their ID until they provide the card [00:22:21].
• Handling Rejection: “Noes” are like “coins that you toss in the machine” before you get a win [00:23:32]. Don’t take it personally; a “no” from someone having a bad day has nothing to do with you [00:23:44]. Building a valuable business requires learning to sell and facing rejection [00:23:06].
• Solving Cold Outreach Problems:
  1. No Contact Information: Build a list using software, brokers, or by assembling it yourself (most valuable, as it’s a “virgin list”) [00:24:28]. Sources include Yelp, Google Maps, online databases, Facebook groups, and Reddit forums [00:25:24].
  2. What to Say (Script and Offer): Use a script (like in 100 Million Leads) [00:25:42] and offer “Big Fast Value” (BFV) [00:25:48]. A superior, amazing offer is crucial when talking to strangers who don’t trust you [00:26:00].
  3. Not Enough Replies: Increase volume of outreach [00:26:21]. This is achieved through automation and collaboration [00:26:30]. Getting good at technology provides leverage for replies [00:26:52].

4. Running Paid Ads

Paid advertising is the fastest and most risky method of customer acquisition, but can yield significant results if executed well [00:27:04]. This involves paying platforms to access strangers and communicate to them one-to-many [00:29:41].

• Ad Structure (Hook, Meat/Retain, Call to Action):
  • Hook: Capture attention in the first few seconds, as 80% of people decide not to watch within 3 seconds [00:33:54]. Test multiple hooks [00:33:59]. Hooks can be questions, statements, or visual cues [00:30:11].
  • Call Out: Before the hook, use a visual or auditory call-out to specify who the ad is for (e.g., “Las Vegas homeowners”) [00:30:51].
  • Meat (Problem & Solution):
    • Present & Agitate the Pain: Describe common pain points related to the service (e.g., trash smell, forgetting pickup days, chasing the truck) [00:31:15]. Be detailed in describing the pain points to resonate with the audience [00:32:35]. Attack the problem from multiple angles (e.g., personal inconvenience, social status) [00:32:55].
    • Introduce Solutions/Benefits: Present solutions in an organized manner (e.g., “three things we do better”) [00:31:34]. Include strong guarantees (e.g., “three free months if we miss one pickup day”) [00:32:04]. Elevate your service by addressing perceived weaknesses in the industry (e.g., professional and polite team) [00:33:13].
  • Call to Action (CTA): Clearly instruct viewers what to do next (e.g., “Click the link or call 1800-Alex-Trash”) [00:33:31].
• Ad Tips:
  • Avatar Alignment: The setting and the appearance of the person in the ad will attract the right type of customer [00:34:37].
  • Diverse Representation: To double or triple your reach, include multiple different types of people in your ads (e.g., more women in ads to attract more women clients) [00:34:54].

By combining these four strategies, a new business can effectively acquire customers and begin transforming a product into a sustainable business or building a valuable business.