While population is growing and more waste are produced every year, our planet stays the same size and suffers the consequences. When considering elements such as the fact that in China, only 1% of the population breathes air that is considered safe, it becomes clear that going green and being more environmentally friendly is now more essential than ever. These facts also bring up an opportunity that can be turned into a profitable business. While the recycling industry has been around for many years, it is currently thriving and it is becoming a more viable business venture to invest in. Starting a recycling business holds many benefits for an entrepreneur and also adds the ability to help with the growing epidemic of pollution.
A recycling business can be founded with a minimal investment and the process is quite simple. When you start out right, you will be able to contribute to the “going green” movement and create a profitable business venture that brings in a substantial amount of money after every completed job. There are several steps that should be considered when you considering starting your own recycling business.
Step 1: Focus on a Specific Business Niche
When you want to start a recycling business, the first step is to decide on a specific niche. Recycling is a vast industry covering a wide range services like collecting various types of recyclable products from households and offices. You can start any of the recycling pick up services such as used paper; scrap metal, plastic bottles etc. While there are a lot of competition when it comes to starting a paper recycling business, starting a recycling business where you can buy and resell various items such as appliances in a working condition can be a viable focus point. You can also choose to collect and process recyclable material yourself or sell the material to processing facilities. Processing material yourself means you will need to turn the used material into a new product. This could be anything from paper to water bottles.
Step 2: Compile a Business Plan
A business plan not only makes your business look more professional when applying for funding, it also helps you be more organized during the entire process of starting your business. You need to compile a thorough business plan for this type of business in order to follow the correct set of processes when launching. It can also assist with your future marketing campaigns due to the market analysis that should be included here.
It is important to focus on elements such as the business type, name of your business, start-up requirements, initial investment requirements, business structure, management structure, as well as the goals and functions of your business. You should also complete a thorough analysis of your target market to realize the potential your business will have. A financial forecast can also help estimate your future profit in order to realize how profitable the business will be.
A professional business plan should also include a basic market plan that explains how you will attract customers and how you will promote your business to the public and to businesses.
A competitor analysis will also help you determine how competitors are doing business and how they achieved their success rate. This will also give you some ideas when it comes to gaining customers and marketing your services or products.
Step 3: Educate Yourself
Make sure you have gained adequate amount of knowledge in your niche before you start operating. Not only will this help you understand the process better, but it will also avoid legal issues and many other problems that can occur in the future. This will also help you run the entire operation in a more organized fashion, which will lead to a more successful business venture.
Apart from understanding the industry and niche you will be working in, you might want to strive towards gaining some certifications in order to improve your skills and credibility. You can also get your staff members certified in order to run a more professional business. Some of the most vital certifications that you should look into are the health, safety and environment certification, as well as the processing operator, compost facility operator and certified safe driver certifications. The requirements will defer based on your geographical location and type of business.
Step 4: Business Funding
Depending on the type of recycling business you want to start, you may require up to $300,000 in funds in order to get started. The capital requirements also depend on the scale at which you want to run your business. While it is estimated to cost around $170,000 to start a small scale recycling business, a medium scale business could cost more than $300,000. The first step to funding your business is to decide on the type of business, scale, geographical location and other requirements. This will help you determine the amount of funds you need.
Once you have a more accurate figure in mind, it is time to find the required funding in order to start your business. There are several sources for finding the initial capital for your business. It is important to understand the advantages and disadvantages of each type of source in order to determine the best option for your specific scenario.
Funding can be acquired from personal savings and investments, from family members, from business investors or through finding business partners, as well as through a business loan. Determine the best option for your business and proceed with acquiring the necessary funding.
Step 5: Locating your Business
Choosing a suitable location is important for a recycling business. Whether you need to locate your business in an industrial area or within an easily accessible place will depend on the type of business you want to start. Starting a business where you will process material yourself will most likely need to be placed within an industrial location, whereas a small scale business focusing on buying and selling items could even be started from home if you have a large enough space to work with.
You should also determine the best location that is close to your target market in order to gain customers quickly without having to go out of town for business.
Step 6: Starting your Business
Starting a recycling business requires a few steps, but once you have completed the five steps we’ve covered here, you should be ready to start your business. When you are ready to get started, you should hire a building where you can operate from and purchase the required equipment. Depending on the type of business you are starting and whether you will be processing materials yourself, you might only need to buy some basic equipment or you may need to purchase large and expensive equipment. Be sure that you have acquired the necessary education so you know what equipment and other elements are required.
You will also need to employ some labor workers to help you deal with the process of collecting and recycling material. A receptionist or assistant to deal with customers can also be useful, as well as a bookkeeper to keep track of your finances.
After you have covered these aspects, you should launch your business and start operating.
Step 7: Gaining Customers
The next step is to promote your business and gain customers. There are several effective forms of advertising that can be utilized to acquire new customers. The details in your marketing strategy will depend on the type of business you have started, but generally the techniques will be the same for every type of recycling business.
Putting a focus on the “being green” movement can aid in gaining trust from the public and getting your first few clients. Recycling aids in this movement and that can be an excellent perspective to add to your marketing material and techniques.
Business cards should always be on hand to give out when you meet a potential customer. You can also print flyers and distribute the flyers around town, especially where your target market mostly hangs out. Posters can be added to community and notice boards. Advertising in local business magazines, local newspapers and even on your local radio station can be very beneficial, as well as listing your business in local business and telephone directories.
The internet can also be utilized to promote your business. A website is usually a great starting point. From there, you can take advantage of internet marketing and social media marketing to expand your online presence and reach a wider audience.
Another very useful marketing method is referral marketing. Whenever you get a client that is happy with the services you provided, you can ask them to refer you to their contacts. This can potentially bring in more clients and build up your client database.
While global warming and other worldwide epidemics have been a rising problem over the past few years, a business opportunity has also been presented by the crisis. Taking advantage of the green movement can help you build a profitable recycling business. A simple business structure of collecting and recycling various materials and items can bring in a sustainable income.