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How to start a recycling business?


More and more people become interested in creating a recycling business. They decide to create different kinds of companies like small junk removal firms, scrap collection services, etc. Starting this type of business does not have to be very difficult, but it is important to remember some basics that need to be considered before starting a company.

First steps and decisions

One of the first important steps should be finding a specific niche for a recycling company. Many different opportunities are available in the market, so everyone can set a specific, important niche that will provide good profit. In other words, your company can focus on used supplies from the building industry, junk collection services, collecting scrap metal, cardboard or plastic, collecting pallets, etc. You can also create a store with used clothes or you can become the e-waste depot operator.

After selecting the best niche, it is good to do research and to answer some important questions. First of all, you should know if there is a need for your products/services and you should know who needs it. You should also check if any similar companies offer the same products or services.

Analyze your competition

Before starting a recycling company, it is good to analyze similar companies that also work in this industry. You should focus your attention on pricing and offered services because these two elements are very important. Of course, you have to think about prices that are not too high or not too low. You should also analyze and observe all the rules or legal requirements.

Getting information about seasonal business

Some types of business, like junk removal, can be seasonal. In the case of junk removal, this business is much slower during the winter. Remember about seasonal dips when you are planning your business. Some people prefer seasonal business because, during the “slower” time, they can focus on other activities and their passions. Other people prefer businesses that are active over the whole year because they are not interested in having moths without income.

Other important things to remember

In many cases, starting a recycling business does not require a very high level of investment. If you want to create a company responsible for collecting scrap metal and other types of junk, you will have to buy a truck. If you do not have a truck, you will need to include its cost in your plans. When planning finances, you also have to remember about maintenance and other operating expenses. Of course, you will also have to buy other things depending on your selected niche (cargo straps, netting, containers, cutters, etc.).

You can create a one-person company, a partnership, a limited liability company or a corporation. It is also important to select the appropriate business name that will be easy to remember. Some types of activities require special permissions and licenses. You have to obtain them before you start your work and you also need to remember about the costs of these permissions.

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