Name:Jack and Mike SchmidtOpening Date:July 8th, 2013Company:JunkluggersLocation:Doylestown, PA
Why did you decide to open the Junkluggers Franchise? My brother was watching CNN and saw the story of Junkluggers with the CEO John Cohen. We set up a call and met with him. We liked the concept and business model where we donate and then recycle. We donate about 80% of the material we receive to charities, including Habitat for Humanity, Impact and Goodwill.
It was very important to my brother that we were going to be the first franchise in Pennsylvania. Junkluggers knew that we were interested in being in a new market, and they were helpful in the process. It all came together at the right time.
We’ve been in business for three months and the last two weeks have been the best yet. We just landed a contract with a property manager in Philadelphia. We have advertised locally in the newspapers, Valpak, networking events and even sponsored a hole at a golfing event.
What was your career before franchising? I was an environmental consultant for 11 years before moving to California. I then returned to Pennsylvania and was working in environmental contracting.
How did you finance your business? Junkluggers recommended that we use Benetrends to rollover our retirement funds to purchase the business. My brother and I had a combination of personal savings. What we like about 401(k) rollover funding is that we can tap into funds that are there instead of using a loan. It’s not on our credit and we are using our own money. Plus, the retirement savings that we used to purchase our franchise was tax-deferred and penalty-free. We didn’t lose a portion of our savings by rolling it over to start our business. In the future, when we want to take out a loan to purchase our next business, we have the capital we need to get started.
What advice would you give someone who wants to start their own business? If you take care of your customers and treat them like you should, your business will continue to get better. We have already had repeat customers so that tells me we are doing a good job. About The Junkluggers The Junkluggers is an eco-friendly New York junk removal company servicing New York City and its five boroughs, Long Island, Westchester, Rockland County, Connecticut and has now expanded its reach to New Jersey junk removal. The Junkluggers is dedicated to its eco-friendly and donating mission by helping residential and corporate clients. Visit www.junkluggers.com for more information.