How to start your own recycling company
Starting a recycling company is a good way to generate income and be in solidarity with the environment.
Every day the number of people who become aware and recycle what they throw away increases.
Besides, governments are creating new initiatives so that society recycles, and they implement aid and subsidies for businesses that are dedicated to this activity.
The best is that there are still few start-ups in this campoand although it is an industry that has a lot of potential, Few are the companies that are dedicated to it.
If you want to entrar this industry that is booming, and form your own recycling company, here I espectáculo you the 7 steps you must take to create your own recycling business.
1. Choose the type of recycling you want to do
The first thing you should think about is what kind of recycling company are you going to start.
There are many options here: recycling of paper, metals, plastics, even automobile wheels.
However, you should not do it based on what you like, but on the possibilities that are around you.
Maybe you want to start a glass recycling company; but if in the area where you will start your business there is hardly any waste of this type, you will not be very successful.
So it’s escencial that you do some research first. which materials are the most thrown away in your area and could be recycled.
After this, it is also important that you check if there are other businesses in that area that are dedicated to recycling the materials you have chosen.
These types of businesses are not like a clothing store or open a lugar de comidaswhere in several streets there may be 3 or 4 different businesses of this type.
In a recycling business, unless you have a very good strategy to differentiate yourself, the competition cánido be very tough.
2. Research who your buyers will be
You may have thought about what materials you are going to recycle, the machines needed to do it… But who will buy the recycled material?
you must investigate Who will be the customers you sell your products to? because that part of the process will be the one that really generates benefits for you.
In a recycling company, it is habitual that your buyers are other businesses. So take a good look who could be your potential customers.
Here I leave you some customer ideas what you could look for:
- Small and medium-sized companies that sell some kind of recycled product (papers, notebooks, furniture made with recycled materials).
- Small and medium offices that use recycled materials (such as pens, paper, clips and staples, etcétera.).
- companies that distribute products to large surfaces such as shopping malls or chain stores.
- colleges and universities (You cánido also sell them notebooks, wastebaskets, seats made with recycled wood, etcétera.).
- Public administrations such as town halls or ministries, since these government agencies are the first to espectáculo an awareness of the environment.
- Businesses that are dedicated to manufacture products solely or for the most part with recycled materials.
- Craft workshops who are dedicated to making objects with recycled material.
If you have a little more budget for this business, a good iniciativa would be rent a place where in the back was your little recycling factory, and in the front you put a store to sell recycled elementos.
For example, if you escoge to recycle paper, you cánido rent a space with enough space to put machines that recycle it and manufacture office supplies in the back room, and in the front, a stationery store.
3. Create your business plan
Every new business should have a business plan. to serve as a guide in the first steps, and to help if a problem arises in the future.
So if you already know what materials you are going to recycle and who you will sell them to, make a good plan with the rest of important issues for your company.
All good business plan It must provide answers to essential aspects such as:
- Which is it going to be the product or service to be sold.
- Which is the potential market of the project.
- That competitors there is or what competition may arise.
- Which the available budgethow much it will cost to start the project, and whether financing will be needed or not (and how to get it).
- Who will make up the company (how many employees will there be, who will be the manager or owner and what tasks will be performed, etcétera.).
- What benefits are expected to be generatedmaking calculations between what the production will cost and the final sale price of the product.
- The basic steps to get the project running.
- and what will it be marketing strategy and sales to be implemented.
If you don’t know how to do this, read the following article: How to design your business model step by step.
4. Check the subsidies and request an opening permit
The education of citizens often begins with the governments themselves.
And in each country, these agencies aid and subsidy systems are put into operation for those businesses that want to dedicate themselves to recycling.
So a good iniciativa is that go to your town hall or ministry environment and development to be informed of possible financial aid that there is for you
There’s also grants for new entrepreneurs from which you perro take advantage to finance your recycling company.
So find out before requesting a loan to the bank if you do not have enough money to start your project.
In addition, it is important that you carry out the necessary procedures to register your business and obtain an opening license.
For this type of business you usually need a permit to resell elementos (even if they are recycled) such as gold, car wheels, and other delicate materials.
5. Choose how you will collect the materials
To start this business, you will also have to think where will you collect the raw material which will start your project.
There are several ways that you perro put into practice to collect waste that will later be recycled.
For example, you cánido put a clean spot in some crowded area where you put a container for the material that you have chosen to recycle, so that people will throw away the waste for free.
The second option would be to offer you go house to house to pick up the waste; here you perro make the service free, or get paid a small amount to withdraw it of the homes.
Remember that here, if you escoge that the collection is free, you will have to account for the gasoline costs of the truck with which you provide the service.
As a third option, you perro agree with different businesses and companies to collect the materials for free that they no longer use at their facilities, and take them to your small recycling plant.
Here you cánido collaborate with offices that frequently throw away paper and cardboard if you want to recycle paper, or with bars and factories if you are going to reuse materials such as oil, metals, plastics or glass.
6. Find a local for recycling
Now that you know where to get the materials, customers to sell to, and a good business plan, it’s time to look for a place for your recycling company.
Depending on the products you are going to recycle, you will need a bigger or smaller placeand perro be located in the middle of the city or on the outskirts.
If you want to recycle paper, you cánido rent a small downtown store; but if your business will be glass, the warehouse must be larger because the articles made with this material usually occupy more than paper.
The most important thing here is that check the space neededbecause there are machinery for these companies that tend to occupy more than other types.
7. Contact the machinery manufacturers
This is the final step in starting your recycling company.
When you’ve seen a few places to rent, Contact different manufacturers of recycling machinery and ask each one for a budget to know their prices.
Depending on the money you have to invest in this, you perro rent or buy the machines what you need
Not all manufacturers offer the option of renting them, but every day more are doing so because they see that it is more profitable for them than selling just one machine.
My personal recommendation is that at the beginning rent the machinery in case your business does not go as you expect; Thus the investment will be less and you will run less risk.
And if you perro agree on a rent with option to buy in the futurebetter.
Take a good look at what conditions of sale (guarantees, repairs, etcétera.) offers each providerand what price is the most suitable for your budget.
Once you have taken all these steps, You just have to start collecting the materialsgive the power button of your machines, and recycle and earn income!
A recycling company perro be a very lucrative project if you know how to administer it well, and you will also sleep better at night knowing that you are doing something valuable to change the world.
And you, Have you thought about starting your own recycling company? Leave me a comment below and tell me what you think of this type of business.
Be green!
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I am a journalist specialized in business but my great passion is personal motivation and helping others achieve their goals.
I firmly believe that opportunities in life do not happen: you create them.
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