The recycling business may be a great business opportunity for you. There is a great demand for recycling and it is only going to increase in future. Getting started now will help you make a good living in an eco friendly way. You would be providing employment for others and helping people to recycle with your recycling pickup business. Here’s how to go about it, even though you might not have any experience in this sector.
How to start your own recycling pickup business
In this guide to start your recycling pickup business, we will provide all the information you need. Recycling is not only about soda cans, paper and bottles, but you can make a profit out of selling the gold in computers as well as cell phones, household goods and used tires.
Know your customers and your sellers
To start off, you first have to pinpoint your customers, i.e. you must do your research as to where you can pick up the items to be recycled, as well as whom you are going to sell them to. It won’t be difficult to find who to collect from – just look around you and mark the homes and offices you can pick the material from. There would be streets and areas which do not have a recycling pickup business as yet.
Households, government agencies, schools, colleges, estate managers, industries – all these could be your clients.
The next step in this guide to start a recycling pickup business is to find the recycling businesses which would be willing to buy items for recycling from you. Find out the going rate for different articles and see whether you will be able to make a profit.
Categories you can specialize in
There are some niche categories to specialize in, but some of these categories need a lot of investment. You will not require much startup money for recycling pickup business for household goods, plastics recycling pickup, battery, electronics, metals and paper pickup business. You can choose to collect used paper and sell it to companies who recycle paper. Paper is a material which is generated in big volumes in offices, schools and industries and collection of paper is one service you can offer.
But for larger items such as furniture and construction waste pickup, you will need to invest in bigger pickup trucks and may have to employ a few people, and you will have to get investors or invest your own money to hire or buy trucks and pay the salaries of your employees, initially. If you do not have any budget at all, but do have a van, you can start your door-to-door pickup business with a minimum investment, and start the most profitable recycling pickup business.
Setting up your company legally
Before you start the actual work of collection, you should do all the paperwork necessary. The company should be registered and consult an accountant or lawyer as to what type of business registration would be most profitable for you. Depending on the category, you will be able to receive funds from banks and venture capitalists, transfer ownership easily if required, and have greater flexibility in management structures and ownership as well.
You will also have to find out if you have to take out any kind of insurance policies as well.
Make a business plan
Consult with experts to make a workable and profitable business plan. Having a plan would reduce the trial –error approach and you will be able to manage/organize your business with precision and purpose. It will enable you to set goals and handle future growth and expansion. The business plan for your recycling pickup business would be an effective guide and keep you grounded. Remember to set down correct figures and instead of overestimating, it’s always better to underestimate the figures, so that you can cope with the ups and downs of business.
Make a detailed cost analysis
The cost analysis will vary depending on the kind of material you want to pickup. You must at least plan for the cost of a pickup van or truck, salaries of one or two employees, and rent a warehouse to store the items. The cost of transportation (fuel) and so on should also be taken into consideration, as well as the cost of business/visiting cards, signage, promotions and marketing is something that shouldn’t be missed out on.
As everyone is online these days, a basic website detailing your work would be helpful to get the word across and get new customers. Though you can set up your own website for free, you would at least have to pay a minimum amount to register the domain name. Emails are a great way of marketing, which is free and effective. Approach people who want their recyclables to be collected through mails and social media.
Arranging the finances
If you are planning to start on a small scale, you might be able to self-finance, or ask for a small loan from banks. Soft loans from friends and family too might suffice.
On a bigger scale, after all the legalities of company registration are completed, you can apply for loan from banks and venture capitalists. You might approach investors with your business plan, who might provide you the funds necessary, if you can convince them.
Finding collection agencies
In your business, you will make a profit when you sell the recyclables to recycling companies. You have to find out the collection points of various recycling companies who recycle different items. For example, companies which recycle paper may not recycle construction waste. Be savvy and work out the best prices.
Many recycling companies are on the lookout for business which can supply them regularly with used items. If you can guarantee a regular supply in the quantity they require, you can have a regular income by selling all the items you collected.
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Distribute flyers in the places where you want to collect the recyclable items. Many people do not recycle as they find it a hassle to deliver their used products to a collection point. Your business would be a service to the community as you would help in the reduction in the use of raw materials as well as clear up the landfill space.