How to Start a Portable Toilet Business

Starting a portable toilet business can be a profitable and scalable venture due to the steady demand across construction sites, outdoor events, and other temporary venues that require reliable sanitation services.

That said, starting a successful portable toilet business will require more than simply providing units; you will need to efficiently coordinate logistics, ensure regulatory compliance, and maintain the cleanliness and functionality of your equipment in order to meet client expectations and ensure long-term success.

In this comprehensive guide, we’ll walk you through all the essential steps you’ll need to take to start your own portable toilet business, from conducting market research and securing funding to selecting the right equipment, setting up operations, and establishing a plan for regular servicing and maintenance.

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Industry Overview

The portable toilet rental industry generated $2.8 billion in revenue in 2023 and is expected to continue growing at a compound annual growth rate (CAGR) of 7.6% over the next few years.

This steady growth is largely driven by the recent boom in the construction sector, where rapid urbanization and a rise in infrastructure projects have significantly boosted the demand for portable sanitation solutions.

In addition to this, the growing popularity of outdoor recreational activities like camping, hiking, and large-scale events such as festivals, sports tournaments, concerts, and weddings has also contributed significantly to the demand for portable toilets.

The market is divided into different segments, with standard portable toilet rentals making up the majority of demand due to their cost-effectiveness and widespread use across construction sites, outdoor events, disaster relief efforts, and temporary work locations.

Another emerging trend within the industry is the rapid growth of the luxury portable toilet segment, which is expected to grow at a CAGR of 8.6% from 2022 to 2030. This segment, while smaller, is gaining traction due to rising demand for premium sanitation options at high-end events such as weddings, corporate functions, and VIP gatherings.

Overall, the sector is easily accessible, with few barriers to entry, making it an attractive option for entrepreneurs eager to tap into the strong and growing demand for portable sanitation services, which is expected to continue in the years to come.

Startup Costs

If you’re considering whether a portable toilet business is right for you, the first thing you’ll need to know is whether it’s a) affordable, and b) worth the investment. I mean, how much can you actually make running your own portable toilet business?

Fortunately, the initial investment is relatively low compared to most other types of businesses, with the main costs being focused on:

  • Portable Toilet Units ($500 – $2,500 per unit): You will need to purchase enough units to meet the needs of your initial operations, including having extra inventory on hand for busy periods or last-minute requests. For a small to medium startup, this typically means acquiring around 10 to 50 units, with costs ranging depending on the model and features.
  • Transport Vehicle ($15,000 – $50,000): You will need a truck or trailer to transport the toilets to and from job sites, with costs varying based on the type and size of the vehicle, as well as whether you choose to buy new or used.
  • Storage Facility ($200 – $1,000 per month): You will need to rent a storage space to securely store your portable toilet units when they are not in use, with the cost depending on factors such as the size required to accommodate your inventory and the location of your business.
  • Waste Disposal Equipment ($5,000 – $20,000): You will need to purchase a vacuum pump system to remove waste from the portable toilets, along with a holding tank for temporary storage before proper disposal. The cost of this equipment will depend on factors such as the capacity of the vacuum pump, the size of the holding tank, and whether the system is mounted on a truck or trailer.
  • Business Licensing and Permits ($200 – $1,000): Depending on where your business is located, you will likely need to obtain a range of licenses and permits to operate legally, including general business licenses, sanitation permits, and potentially environmental permits for waste disposal.
  • Maintenance and Cleaning Supplies ($500 – $2,000): As part of your startup costs, you will also need to purchase an initial supply of cleaning and maintenance products to ensure your portable toilets are properly sanitized and kept in good condition. These will include disinfectants, deodorizing chemicals, brushes, cleaning cloths, hoses, gloves, and waste disposal bags.
  • Employee Wages (if applicable): If you plan to hire staff to assist with deliveries, maintenance, or administrative work, you will need to factor in employee wages. The cost will generally range from $25,000 to $50,000 per employee per year, depending on their experience and specific responsibilities.

Note: Keep in mind that when you place larger orders, your per-unit cost will decrease significantly. For example, if you plan to buy 100 portable units, the price per unit could be less than half of what you’d pay for just one. This is why the absolute minimum you should consider purchasing to start with is around 10 units — anything less than that won’t allow you to benefit from economies of scale.

Earning Potential

Portable toilet businesses tend to operate with high profit margins — usually between 30% to 50% — and have strong earning potential due to their low operating costs and high client retention.

This profitability is mainly because the portable toilet business tends to have a recurring nature — once you secure a client, such as a construction company or event organizer, they will often rely on your services for all of their ongoing and future sanitation needs.

The reason this happens is often referred to as the “inertia effect,” where clients, after establishing a reliable relationship with a service provider, are unlikely to switch to competitors because the service represents a small portion of their overall budget and changing providers isn’t worth the hassle.

In industries like construction and event planning, as long as the service is reliable, clients will typically stick with the same provider to avoid disruptions, making it easier to maintain long-term contracts and consistent revenue.

That said, the challenge when starting out will be securing enough clients to reach profitability and grow. The very reasons clients stay loyal to their current provider — convenience and reliability — are the same reasons you might find it difficult to gain traction initially.

However, despite this challenge, the sector is poised for continuous growth, offering substantial opportunities for new businesses that can secure a foothold.

7 Steps to Starting an Portable Toilet Business

In order to start a portable toilet business, you’ll need to complete the following steps:

  1. Planning Your Portable Toilet Business
  2. Registering Your Business
  3. Securing Funding (If Applicable)
  4. Finding the Right Location
  5. Opening a Business Bank Account and Credit Card
  6. Getting all Applicable Licenses and Permits
  7. Obtaining Business Insurance

We’ve broken each one of these down in more detail below.

Still exploring your options? Check out other small business ideas.

Step 1: Plan Your Portable Toilet Business

Before diving into your portable toilet business, you’ll need to spend some time conducting thorough market research to understand where your business will fit and how it can stand out.

The main focus of your research should be finding out who your potential clients are, how many there are, and what strategies you can use to win them over.

This means understanding the specific needs of your target market and identifying the pain points that current providers may not be addressing, as well as determining how you can effectively communicate how your business will meet those needs and provide a better solution.

This will help you evaluate the financial viability of your project — including projected revenues and expenses —as well as set realistic targets in relation to your profitability and growth.

Finding a Suitable Name

Choosing the right business name is both important and challenging.

This is because your name will need to be eye-catching, memorable, and (at least somewhat) related to your industry.

If you don’t already have a name in mind and need help, you can visit our How to Name a Business guide.

If you do have a name in mind, we recommend researching the following:

  • Your state’s business records
  • Federal and state trademark records
  • Social media platforms

You will also need to make sure that your business’s name is available as a domain — this is your website’s URL address.

Note: If you’re planning to operate a sole proprietorship, you might want to operate under a business name other than your own name — known as a “Doing Business As” (DBA) name. Keep in mind that this is not recommended for a portable toilet business.

Determining the Right Number of Units

After conducting market research and having a clear idea of your target clients and their needs, you will then be able to make an informed decision about the number and types of portable toilet units that your business will need to obtain in order to meet demand.

Generally speaking, you will need to plan for a buffer by purchasing more units than you initially anticipate needing.

For example, if your expected demand is roughly for 20 units, you should consider purchasing around 25 to account for unexpected growth, last-minute requests, and potential breakdowns.

Of course, you’ll need to strike a balance — ordering too many units could leave you with excess inventory sitting unused, which could tie up valuable capital and impact your profitability.

Step 2: Register Your Business

One important aspect that cannot be overlooked when starting your portable toilet business is the importance of establishing a solid business foundation. While sole proprietorships and partnerships are the most common entity types for small businesses, they’re a far less stable and advantageous option than LLCs.

This is because unincorporated business structures (i.e., sole proprietorships and partnerships) expose you as an owner to personal liability for your business’s debts and legal actions, while LLCs protect you by keeping your personal assets separate from your business’s liabilities.

In practice, this means that if your portable toilet business were to face a lawsuit or incur any debts, your savings, home, and other personal assets could not be used to cover these costs. On top of this, forming your business as an LLC also helps it to appear more legitimate and trustworthy.

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Note: If you’re interested in more information before getting started, we recommend having a look at our state-specific How to Start an LLC guide (DIY) or our in-depth Best LLC Services review (for those opting for a professional service).

Step 3: Secure Funding (If Applicable)

Securing funding is a critical step in starting your portable toilet business, with the most common options being bank loans, SBA loans, private investors, and crowdfunding campaigns.

Each option has its pros and cons, and the best choice will ultimately depend on your financial situation and business plan.

Even though the majority of portable toilet businesses will require some form of financing when starting out, it is always recommended to approach debt with caution.

You should generally only take on funding if it’s clearly tied to revenue-generating work — meaning that the loan will be covered by consistent income from your units.

For instance, if you’re considering a loan to purchase additional portable units, ensure that you have clients lined up who will rent those units — without confirmed demand, taking on debt can put unnecessary pressure on your business and hinder its growth potential.

Of course, the extent that this step will be applicable to you will depend on your individual financial situation.

Step 4: Find and Secure the Right Location

The next step you’ll want to take is to find (and secure) the right location for your portable toilet business.

While many factors come into play — such as accessibility, storage capacity, and proximity to waste disposal facilities — the most important consideration for a portable toilet business will be affordability.

This is because the location primarily functions as a storage facility, meaning that upgrading to a high-cost area does not provide any additional client attraction or revenue potential.

On the other hand, keeping costs low will do wonders for your business’s financial health, helping you maintain viability and foster long-term growth.

Note: You will also need to ensure that your prospective property is zoned appropriately for a portable toilet business and complies with all applicable local and state regulations (discussed in more detail in Step 6).

Step 5: Open a Business Bank Account and Credit Card

Using dedicated business banking and credit accounts is essential when operating as a business owner; this is because when your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) can be at risk in the event your business is sued.

In business law, this is referred to as piercing your corporate veil and is a result of the fact that not having a separate business bank account can be interpreted by some courts as evidence that you are not treating your business as a separate financial entity.

As a result, you could lose your limited liability protections even if you’ve registered a separate business such as an LLC or C Corp.

There are also a variety of practical and economic benefits to this step, such as a larger access to business loans and a more legitimate look.

Getting a business credit card can also be a great idea as it can help you build your company’s credit history from the start.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Step 6: Secure All Required Licenses And Permits

The applicable licenses and permits that you’ll need will largely depend on your state and local regulations.

Even so, we’ve compiled a list of some of the common licensing regulations that you’ll likely need to satisfy in order to operate legitimately.

Business Operation Licenses

At a state level, your business may be required to obtain a business license in order to operate — though this will depend on your location.

This process generally involves submitting an application, paying a fee, and meeting specific state requirements.

Waste Management License

Some states will require businesses handling human waste to obtain a waste management license in order to operate legally.

This license ensures that your operations comply with local health and safety regulations regarding the collection, transportation, and disposal of waste, and it can typically be obtained from your state’s environmental agency or health department.

Zoning and Land Use Permits

Before establishing a portable toilet business, you’ll need to ensure that the land is zoned appropriately for your operations.

Zoning regulations vary by locality and dictate the types of activities that can be conducted on a piece of land. In some areas, you may need to obtain a special use permit or a variance if the land is not already zoned for your intended use.

We recommend consulting with your local zoning authorities in order to understand the specific requirements and restrictions that will be applicable to your self storage business. Alternatively, you can consult with a business attorney if you want someone else to take care of this for you.

Fire Safety Permit

To operate your portable toilet business, you’ll likely need a fire safety permit, which will require passing an inspection from your local fire department.

This is due to the presence of chemicals used for sanitation and deodorization, which may pose fire hazards if not stored and handled properly.

Environmental Compliance Permits

You will likely need to secure a number of environmental compliance permits in order to ensure that your portable toilet business operates within state and federal regulations regarding waste disposal and environmental safety.

These ensure that your operations do not harm local ecosystems, especially in regards to the chemicals used for sanitation and waste treatment.

The Environmental Protection Agency (EPA) provides guidelines and oversees the issuance of these permits on a federal level, though it’s important to note that some states can also impose their own regulations.

Step 7: Secure Business Insurance

In addition to securing the necessary permits and licenses, you will need to obtain the right business insurance.

Note

Even if you form an LLC, purchasing business insurance is still a good idea. This is because an LLC structure protects your personal assets, not your business’s.

Even though the exact coverage will depend on your individual circumstances and the specific structure of your business, most portable toilet businesses will primarily need to consider three types of insurance:

Professional Liability Insurance (Errors & Omissions Insurance)

Professional Liability Insurance, also known as Errors and Omissions Insurance, covers your portable toilet business against claims of negligence or failure to deliver services as promised.

For instance, if a construction company claims that your units were not delivered on time, were insufficient in number, or did not meet sanitary standards, professional liability insurance would protect you by covering legal fees and any potential settlements or judgments.

The cost of professional liability insurance typically ranges between $500 and $1,500 per annum depending on factors such as your business’s size, the level of coverage needed, and your personal claims history.

General Liability Insurance

General liability insurance is foundational coverage that any portable toilet business should have, as it protects against claims of bodily injury, property damage, and personal injury that may occur during your operations.

For example, if a worker on a construction site is injured while using one of your portable toilets, or if your delivery truck accidentally damages a nearby fence while dropping off units, general liability insurance would cover the medical expenses or repair costs associated with those incidents.

The average cost for general liability insurance according to recent data is $42 per month, or $504 annually, though costs can vary based on your business’s specific needs and risks.

Equipment Insurance

Equipment insurance is another important coverage for portable toilet businesses, as it protects your restroom units against theft, vandalism, fire, floods, and other unforeseen circumstances.

The cost of this insurance coverage typically ranges from $500 to $2,000 annually, depending on factors such as the declared value of the equipment, the number of units you own, and the specific coverage options you choose to include in your policy.

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How to Start an Portable Toilet Business FAQs

Are portable toilets profitable?

Yes, portable toilet businesses — typically operating with profit margins of 30% to 50% — can be quite profitable.

This is primarily due to the steady demand for sanitation services across various sectors, including construction, outdoor events, and recreational activities, which often leads to long-term contracts and recurring revenue.

How many porta potties do I need to start a business?

To start a portable toilet business, you will need to acquire at least 10 to 50 units, as anything below this level isn’t enough to establish a viable operation.

You will also need to ensure that your inventory can handle unexpected demand and last-minute requests, as this will be crucial for maintaining customer satisfaction and growing your business effectively.

What is the demand for portable toilets?

The demand for portable toilets is consistently strong, driven by various sectors such as construction, outdoor events, and recreational activities, which have all experienced significant growth in recent years.

This has led to the portable toilet rental industry generating approximately $2.8 billion in revenue in 2023, with projections indicating continued growth at a compound annual growth rate (CAGR) of 7.6% over the next few years.

What is the lifespan of a portable toilet?

The lifespan of a portable toilet typically ranges from 10 to 15 years, depending on factors like usage, maintenance, and the materials used.

That said, you should keep in mind that regular and proper maintenance can significantly extend their usability for an even longer period of time.