A recycling business involves picking up waste that can be recycled and used again.
It is a business that you can start with minimal capital and it is also profitable as there is always available waste that can be recycled.
Starting a recycling business is also a way of improving the environment.
TYPES OF RECYCLING BUSINESS
There are various types of recycling business, you can start your business from the scratch or acquire a franchise.
Starting a recycling business from the scratch involves only inputs from you while starting out with a franchise means running your business according to the standards and principles of the franchise.
Establishing if you want to run your recycling business as a:
- sole proprietorship,
- husband and wife co-ownership or a
- limited liability company is important for your business.
Do you want to run your recycling business from home or you want to get a space specifically for your recycling business?
When starting your recycling business, it is advisable that you stick to minimal cost after which you can expand as your business grows.
Also there are various types of recyclable materials but it is advisable to start with recycling papers first as a beginning with little capital.
As your recycling business expands you can gradually moved to recycling computers, cans, tyres, scrap metals, bottles and other recyclable materials.
Finally determine if you want to do the recycling processing yourself or you will only be involved in gathering recyclable items for other recycling companies.
Note that getting involved in the recycling process will involved getting the necessary training and experience if you are new to the recycling business.
STARTING YOUR RECYCING BUSINESS
INVESTIGATE COMPETITORS IN YOUR AREA
Investigating other competitors will help you to establish what to recycle and whether there is an aspect of recycling which there is a demand for.
You will need to carve a niche for yourself and stand out from other recycling business.
For instance you can choose pick up services if your competitors are not offering pick up services.
LOCATE BUYERS FOR RECYCLABLES.
Search for recyclables buyers.
You could check in the business pages of your area’s phone book, online and also in local newspapers for individuals who would be interested in purchasing the kind of recyclables you assemble.
Contact them to find out about what their contracts require and how much they would pay.
Note that some recyclable buyers pay more than others, so get the buyers who will pay the highest rates.
You however need to be sure that the buyers are interested in what you plan to recycle; it is wise to focus on high-demand materials.
GET THE NECESSARY LICENSE AND REGISTER YOUR RECYCLING BUSINESS
It is imperative that you register your business and get the necessary license and permits you need to start your recycling business.
Ensure you received your license before investing in the business and choosing a location.
As with any other small business, it is imperative to get the necessary permit in order to run your recycling business.
Expect to pay a certain amount for taxes and fees such as:
- weight and measures fees,
- business tax certificate,
- business license fees,
- state income tax,
- employee payroll taxes,
- federal income tax,
- property tax, and
- any other local taxes or permitting fees.
The particular taxes to pay however varies in various states, find out from your local and state authorities the necessary taxes and fees you will need to pay
GET THE NECESSARY EDUCATION
It is important for you to get the necessary education for the kind of recyclable materials you will be recycling in your business.
It is essential for you to get the proper information on recycling the right way, so as not to cause environmental damage.
Also recycling some materials are more dangerous than others and if you will be crushing the materials so as to enable easier transportation, then you will need proper training.
DISCOVER A GOOD LOCATION FOR YOUR RECYCLING BUSINESS
Find a location that you will use as your processing facility if you will be recycling yourself.
Search for locations that are not close to already established recycling businesses.
Seek out a space in secured areas that will be easy accessible for customers.
Pick a space with a reasonably big parking lot with enough space for several vehicles during drop-offs.
Also you need to make sure there is ample space for your recycling equipments and vehicles.
You could however commence your business from the confines of your home if you have adequate space for storing recyclables and all the necessary equipments.
Though you must make enquiry from the necessary authorities to find out if you will be allowed to have a processing facility or run your recycling business from home.
If you do not plan on carrying out the recycling process yourself, you will only need a location where people drop off the recyclable materials you are interested in so you can take them to recycling companies or centres.
This location could be a little warehouse or stall situated close to a supermarket or commercial places that will permit you to run a recycling business.
PROCURE THE NECESSARY PROCESSING AND OTHER EQUIPMENT
You could either discover fairly used equipment on websites for recycling industry or locate a processing company who will do all the necessary processing for you.
You will need to procure paper balers, metal crushers, shredders and other necessary equipment if you decide to do your recycling on your own and it depends on what kind of materials you have decided to recycle.
You will also need to acquire a vehicle that can transport your materials in cases where you have decided to drive your recyclables to buyers and do pickups.
You would basically require a weighing scale, huge bins, and vehicle.
You should be aware that there are certain requirements for weighing scales as they are always periodically inspected by authorities, ensure you find out the necessary requirement in your state.
You also must get your weighing scale certified.
ADVERTISE YOUR RECYCLING BUSINESS
Get flyers that describe your recycling business and how you will be operating.
This will help tell people about your recycling business, share from door to door, ask if you could drop them at public places, hand them out to people in person and paste some on bulletin boards.
Ensure you specify the method of collection, if you will be collecting on some certain days and time of the week; state the kind of recyclable products you will be collecting also.
Encourage people and let them know the benefits of recycling and how it helps to improve the environment