business plan for recycling

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Recycling Company Business Plan Sample

AUG.26, 2013

Recycling company business plan for starting your own business?

If you are considering starting up your own recycling company, you should know that the business opportunities available are as wide-ranging and varied as the tons of stuff that we dispose of every day. Starting a recycling company business does not require you to hold technical knowledge, you can start it with a small team and with less funding. You can start it at any scale and can expand or narrow down your offerings whenever you want.

To start any business, it is important to follow the proper procedure. First, you will have to develop a business plan . To learn how to write a recycling proposal, you can take help from this provided sample. This is a business plan for a recycling company named ‘Greenworks Recycling Center’. This business plan would also be helpful in writing scrap metal business plan .

Executive Summary

2.1 the business.

Greenworks Recycling Center will be a recycling company owned by Ardon John in New York. The primary aim of the business will be to recycle and reuse plastic waste materials. Our recycling company will focus to recycle plastic wastes like plastic containers, bottles, polythene, polybag, plastic boxes, packets, sheets, and the like, and turn them into useful products. The business will offer a wide range of services and products for the ease of its customers.

2.2 Management of recycling company

To start a plastic recycling business, you must have strong management skills. Adequate planning is necessary to ensure flawless management. There is no better way to plan out every aspect of your company than developing a recycling company business plan pdf like the one offered here. 

A relevant business plan such as a business plan for e waste recycling company can also help you write your strategic plan. 

In this recycling business proposal, we will guide you on all the major aspects of a strong business plan. This  business plan is written for investors   as Ardon needed funding to set up his recycling business. 

2.3 Customers of recycling company

Our customers and the people who will benefit from our products and services are expected to belong to both ends of the supply chain. Our customers will belong to almost all work domains as plastic recycling is required in many diverse areas nowadays. However, our potential and recurring customers are identified as follows:

• Commercial Businesses
• Residential Community
• Industrial and Manufacturing Units
• Government 

2.4 Business Target

Our target is to become the most trustworthy and reliable choice for our target customers whenever they need recycled and reused plastic materials. 

Our financial targets to meet for the first three years of our launch are demonstrated below:

Company Summary

3.1 greenworks recycling center owner.

This Greenworks Recycling Center will be owned by Mr. Ardon John. Ardon Jack completed his master’s in environmental sciences a few years back. After his academic career, he pursued a manager position in a noteworthy recycling company. Recently, he left his job to start his own business of recycling plastic materials to create environmentally friendly products.

3.2 Why the recycling company is being started

Ardon noticed that as the environmental movements began to take hold on a national scale, recycling started to be viewed as a personal manifestation of helping the environment. So, he decided to bring innovation to existing modes through his intellect and knowledge. Therefore, he decided to start his own recycling business to fully implement the great ideas he had.

3.3 How the recycling company will be started

Step1: Plan Out Everything

To learn how to start your own recycling company, first, you will have to make a business plan. To help you in creating a business plan we are providing a recycling company business plan . For opening a recycling business, you can take help from this business sample or go through other business plans like greentech consulting business plans to get an idea of what to include when planning for a startup. 

Step2: Branding

The next step is to get your company and its values and services recognized by customers. For this purpose, Greenworks Recycling Center will make a brand that people can trust. Defining the brand is important as it enables you to introduce a good image of your business to your customers. It also helps you create a space for yourself in the market.

Step3: Physical Space 

The next step is establishing the physical presence of the business and for this purpose, Ardon decided to buy a large place in the outskirts of New York. To set up his recycling company, he acquired land that had shades, a closed space, large rooms, and a technical room. After acquiring the space, he got the machinery installed there.

Step4: Online Presence

A wider audience can be attracted through online channels so establishing an online presence is a must if you start a business nowadays. Ardon decided to make a mobile-friendly app, website, and social media page for his business to reach out to a wider audience. 

Step5: Advertisement

Marketing is the most important thing for the promotion of the business. Ardon will develop a thorough plan for the advertisement of his business. In later sections, we will document the sales strategy developed by Ardon.

Marketing is the most important thing for the promotion of the business. Ardon will develop a thorough plan for the advertisement of his business.

Services of recycling company

Your business plan of recycling company must include the services that you will provide to your targeted customers. You may have many plastic recycling business opportunities, but you have to choose the ones that are in the most demand in your target location. 

For starting a recycling company, you can follow this guide on how to open a recycling business to figure out what the market for the business looks like and what services are ideal to be included in your startup. This business plan sample can also aid in writing other business plans such as business plan for a distilled business. 

Following are the services that will be provided by our Greenworks Recycling Center Company:

• Plastic material retrieval 

This will be the main service offered by us. We will retrieve plastic material from solid waste and process it for recycling or reuse. Plastic is of distinctive types and it usually has joint material attached to it. Our company will segregate plastic consisting of different polymers, strengths, and qualities.

• Waste Awareness Services

To ensure that our customers send the right materials to be recycled, we will spread information about the materials that can be recycled and the ones that cannot be. This information will be distributed every time we enter into a partnership with a company or an organization.

• Dumpster and Container Rental Services 

Our customers will be able to take advantage of our low-cost dumpsters and containers that they can rent out for a short period. 

• Plastic Sale 

The plastic materials we purchase and retrieve will be sold to local buyers and the ones from other states. We will try to make recycled plastic material buyers a permanent customer group for the business.

Marketing analysis of recycling company

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To learn how to start up a recycling business, you should have an excellent understanding of your target market. You can gain this understanding by doing an extensive market analysis as a part of yourmarketing plan for recycling business. This analysis should look into current market trends as well as compare them with past trends. The same marketing plan can be used for business plan for an e waste recycling company.

Your recycling business model should also analyze the rates of similar services in the market. If you don’t know how to open a recycling business company and how to price your offerings then you can take help from this business plan. 

This business plan can also be used to make other business plans like electronic recycling business plan and waste paper recycling business plan. 

5.1 Market Trends

According to IBIS World, the recycling industry holds a market size of $77 Billion in the United States, employing almost 70,961 people. The industry is continuously in demand as more and more people adopt recycling in their life. So, opening a  plastic scrap recycling business is a very smart move as the demand will only increase.

5.2 Marketing Segmentation

The potential customers of Greenworks Recycling Center are divided into the following groups:

5.2.1 Commercial Businesses

Our commercial customers will range from smaller retail businesses to urban skyscrapers with high-volume waste streams. We will provide permanent, temporary, and need-based trash removal and recycling services.

5.2.2 Residential Community

Residential customers have a variety of materials to be recycled. Some households generate enough trash making it economically feasible for the resident to utilize a larger commercial-sized trash container for weekly trash service. 

5.2.3 Industrial and manufacturing

Industrial customers frequently require roll-off dumpsters, compactors, trash containers, and waste plastic recycling equipment. Industrial customers are expected to contact us for scrap metal hauling and redemption, cardboard and waste paper recycling, construction and demolition debris collection, and trash disposal.

5.2.4 Government

Our company will also provide trash and recycling services to government buildings and organizations.

5.3 Business Target

• To provide a green way of disposing of trash to our customers 
• To earn a net profit margin of up to $70k per month by the end of the fifth year
• To achieve and maintain a CSAT score above 92%

5.4 Product Pricing

Our prices will be economical as compared to our competitors. We aim to provide the best services at a nominal rate.

Marketing Strategy

To start a recycling company, you must develop the best business plan with an impressive sales strategy. A strong marketing strategy is needed to attract a wider audience. To gain attention in the market among your competitors, you need to highlight your competitive advantages. 

This is a business plan developed for Greenworks Recycling Center by a business consultancy firm. You can use this business plan to write other business plans like shoe business plan . You can learn a lot from here if you are even making a skateboard store business plan .

6.1 Competitive Analysis

• Our custom programs will ensure that you have the right containers, schedules, and operations. 
• We’ll implement green cleaning practices by using eco-friendly and non-toxic recycling operations.
• Through our website and user-friendly mobile app, our customers would be able to book our services remotely.

6.2 Sales Strategy

• We’ll use online channels like Google Local ads service and social media to attract a wider audience.
• We’ll provide free waste pick-up services for one month to our first ten customers.
• We’ll offer a 30% discount on specialized recycling services for the first month of our launch.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

The success of an eco-conscious business such as a recycling business depends not only on its services but also on the values and behavior of its workforce. So, you have to be very careful when you are hiring employees in your company. You also need to be very diligent in background checks when hiring for these positions. 

This business plan for a plastic recycling company has all the detail regarding the employment practices of a recycling service business. The same personnel plan can be used for starting a paper recycling plant.

7.1 Company Staff

The list of employees, necessary for the business to function, includes:

• 1 CEO/ Manager
• 6 Recycling Plant Personnel
• 1 Operations Executive 
• 1 Technician to upkeep the recycling machinery
• 1 Accountant

7.2 Average Salary of Employees

Financial plan.

It is essential to manage your operations timely and efficiently to earn recycling business profit. A detailed financial analysis is necessary to ensure that your business is not getting into a loss. The recycling companies business plan must contain all the financial information to help analyze how to direct cash flows to earn revenue.

Evaluating the startup costs are also important for your financial plan. In your financial plan, you must identify when and how you’ll cover your investment amount with the earned profits. It would also help you to analyze your yearly expenses to determine the possibilities of reducing them. To know how to make an accurate financial plan and which projections to include in it, you can see this business plan. Here we’re providing the detailed financial plan made for Greenworks Recycling center. 

The financial plan of this sample can also be used to write jewelry business plan .

8.1 Important Assumptions

8.2 break-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 projected cash flow.

8.5 Projected Balance Sheet

8.6 business ratios.

• Is the recycling business profitable?

Yes, if you start recycle business after doing proper planning, it can be immensely profitable.

• Which recycling business is most profitable?

The wastepaper recycling business is the most profitable. A paper recycling business proposal is necessary for starting a business in this domain. You can also consider the start up plastic recycling business as it is a strong contender for the most profitable recycling businesses. 

• How do I start a recycling business?

A recycle company business plan is needed to start a recycling business. Along with this a strong operations and marketing strategy is also needed. 

• Why recycling is not profitable?

The only reason behind a recycling business not yielding the desired profits can be inaccurate planning. If you follow the stepwise guide given in this business plan recycling company, your business is not likely to get into a loss.

Download Recycling Company Business Plan Sample in pdf

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Waste Recycling Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Green & Eco-friendly » Waste Recycling

The recycling business is an eco-friendly business that can earn you a living and make you a business owner and an employer of labor. Many misconceptions are out there and scaring people away from the recycling business, most people think a recycling business is all about collecting soda cans, bottles, and old paper.

But in fact, most profitable recycling businesses concentrate on other items and materials, such as the gold found in computers and cell phones, used tires, or re-selling household goods.

All you need to start a recycling business requires a good knowledge of where to collect your goods and where to sell them, as well as strong entrepreneurial skills and perseverance.

A Sample Waste Recycling Business Plan Template

1. industry overview.

The recycling industry has become an integral part of modern society not only due to its social and economic impact but also because it plays a vital role for the future of our planet. In the world today, it is estimated that over 1 trillion tons of waste at the household level and in industries is generated.

Common materials for recycling include bottles, paper towels and aluminum cans et al and the niches available in the recycling industry are metals recycling, plastics recycling, electronic recycling, water recycling, oil recycling, glass recycling, furniture recycling , garbage recycling, tire recycling, construction waste recycling, paper recycling, battery recycling, cartridge recycling and industrial waste recycling.

According to experts, all sorts of used scrap metal may be profitable. The waste and recycling sector is a broad one though, and there are lots of areas that remain unexploited often because big recycling companies and Waste Management outfits believe the market value is too small.

Some environmental experts further say that the world market for waste, from collection to recycling, is worth around 300 billion Euros ( US $410 billion ). The recycling business is therefore a growing business that has futuristic benefits; there are markets in the developing world that can be tapped into especially in Africa, Asia and Latin America.

For instance, with the scientific knowledge available to us in this dispensation, it is obvious that it might just   no longer be safe for the earth to accommodate plastic bottles and other waste materials that are buried in it. For this reason, it is very important for government of most countries to encourage plastic bottles and other recycling business.

If you are conversant with companies that use plastic bottles for packaging their products, you would realize that they are promoters of plastic bottle recycling and they ensure that they include the recycling instructions or signs on their entire plastic bottle product.

That is that, companies that are engaged in plastic bottles recycling business or other form of recycling business can be considered as part of those working to save our world from degradation. This is so because plastic bottles that are buried in the earth are shielded from sunlight hence it becomes impossible for them to decompose.

It is a known fact that at least 66% of energy is saved when producing new plastic bottles from recycled plastic bottles, as against producing plastic bottles from the very scratch. That is why most companies engage in the use of recycling plastic bottles for their packaging, clothing, toys, fiberfill for sleeping, plastic bags, plastic ruler, amongst many others.

Statistics has it that the Recycling industry in the united states of America is worth bn, with an estimated growth rate of -5.5 percent. There are about 1,155 registered and licensed recycling facilities in the United States and they are responsible for employing about 23,308 people.

The recycling industry has come to stay and the good part of it is that it enjoys the support of environmentalist and the government of various nations since it is a means to preserve the earth from degradation, greenhouse gas emissions and environmental pollution.

Although establishing your own recycling company requires huge startup capital and rigorous processes to build your own plant, but it is a fact that it is indeed a profitable venture.

The market for recycled aluminum cans, pet bottles, used papers and cardboards et al is large and can accommodate loads of investors. For example, recycled aluminum cans are used for canning foods, drinks, chemicals, lubricants, oil, industrial gum and much more.

2. Executive Summary

Friends of The Earth Recycling®, LLC is a U.S based licensed and standard recycling company. We have been able to secure a standard and well – positioned facility in the outskirt of town in San Bismarck, North Dakota; a facility that is well positioned and highly suitable for the kind of recycling plant that we want to build.

We are in the recycling industry to contribute our quota in saving the earth and also to compete in the highly competitive recycling industry not only in Bismarck – North Dakota, but also throughout the United States market.

Friends of The Earth Recycling®, LLC will initially be involved in the recycling of materials such as aluminum cans, scrap metals, pet bottles, used papers and cardboards et al. We intend providing raw materials for companies that are into the manufacturing / production of books / papers, drinks, lubricants, oils, spare parts, chemicals, water, plastic and paper bags et al.

Our business goal is to become one of the leading recycling company in the United States and we will make sure that we do all we can to compete favorably with leaders in the industry.

We are going to operate on a topnotch level and that is why our workers are going to be selected from a pool of certified and highly experienced recycling engineers and technicians in and around Bismarck – North Dakota and also from any part of the United States of America as the business grows.

We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading recycling plants in the United States and throughout the globe.

At Friends of The Earth Recycling®, LLC our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for all our partners, employees and for our clients.

Friends of The Earth Recycling®, LLC is founded by Engr. Shannon Carson a recycling engineer per excellence who graduated with from Illinois Institute of Technology (B.Engr.) and his friend and business partner for many years Moses Carpenter (B.Sc. Business Management).

They have a combine experience that can help them build Friends of The Earth Recycling®, LLC to favorably compete with other leading recycling plants in the United States of America.

3. Our Products and Services

Friends of The Earth Recycling®, LLC was established with the aim of maximizing profits in the recycling industry. We want to compete favorably with the leading recycling plant in the United States which is why we have but in place a competent quality assurance team that will ensure that every recycled material or products that leaves our recycling plant meet and even surpass our customers’ expectations.

We will work hard to ensure that Friends of The Earth Recycling®, LLC is not just accepted in Bismarck – North Dakota but also in other cities in the United States of America. Our products and services are listed below;

• Sale of recycled pet bottles and plastic bags
• Sale of recycled papers and cardboards
• Sale of recycled aluminum cans and materials
• Sale of recycled metals and other related recycled materials

4. Our Mission and Vision Statement

• Our vision is to establish a standard and world class recycle plant whose products and brand will not only be accepted in Bismarck – North Dakota but also in other cities in the United States of America.
• Our mission is to provide standard recycled materials that will assist the relevant industries in saving cost and energy and also to contribute our quota in helping save our world from unnecessary degradation.
• We want to build a recycling plant that can favorably compete with other leading brands in the recycling industry.

Our Business Structure

Friends of The Earth Recycling®, LLC is a recycling company that intend starting small in Bismarck – North Dakota, serving smaller industries within our locations, but hope to grow big in order to compete favorably with leading recycling plants in the industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operations.

At Friends of The Earth Recycling®, LLC, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders ( the owners, workforce, and customers ).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer
• Head, Technical Services
• Human Resources and Admin Manager
• Sales and Marketing Executive
• Plant Engineers / Technicians and Operators

Client Service Executive

Truck Drivers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Head, Technical Services:

• Serves as project manager of the organization; works directly with employees
• Develops strategic plan by studying technological and financial opportunities; presenting assumptions; recommending objectives.
• Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
• Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
• Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
• Maintains quality service by establishing and enforcing organization standards.
• Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
• Makes certain that the technical department perform efficiently, coordinate employee efforts, and facilitate communications between management and recycling plant engineers, technicians and machine operators
• Ensures that the organization work in line with international best practices.

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Designs job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carrying out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Oversees the smooth running of the daily office activities.

Sales and Marketing Manager

• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Creates new markets cum businesses for the organization
• Empowers and motivates the sales team to meet and surpass agreed targets

Accountant / Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for Friends of The Earth Recycling®, LLC
• Serves as internal auditor for Friends of The Earth Recycling®, LLC

Recycling Plant Engineers (2) and Technicians / Machine Operators (8)

• Responsible for installing, maintaining and repairing of all the recycling machines in the plant
• Responsible for operating recycling machines in the plant
• Operates facilities for separating and sorting recyclable materials from nonhazardous waste streams
• Operates facilities where commingled recyclable materials are sorted into distinct categories
• Handles any other job functions as it relates to recycling materials.
• Assists in loading and unloading waste materials and recycled materials.
• Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
• Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment, such as hazardous material placards.
• Assists the transport and logistics manager in planning their route according to a pick – up and delivery schedule.
• Inspect vehicles for mechanical items and safety issues and perform preventative maintenance
• Complies with hazardous waste truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
• Collects and verify delivery instructions
• Reports defects, accidents or violations
• Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

6. SWOT Analysis

Friends of The Earth Recycling®, LLC engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured recycling business that can favorably compete in the highly competitive recycling industry in the United States and the world at large.

Part of what the team of business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for Friends of The Earth Recycling®, LLC. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Friends of The Earth Recycling®, LLC;

Our core strength lies in the power of our team; our workforce. We have a team of certified and highly trained and experience recycling engineers and technicians / machine operators, a team with excellent qualifications and experience in various niche areas in the recycling industry.

Aside from the synergy that exists in our carefully selected workforce, our product will be guided by best practices in the industry and our recycling plant is built to fit into the design of a 21 st century recycling plant.

As a new recycling plant in Bismarck – North Dakota, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients ( big time manufacturing / production companies that make use of recycled materials ) in the already saturated and highly competitive recycling industry; that is perhaps our major weakness.

Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.

• Opportunities:

No doubt, the opportunities in the recycling industry is massive considering the number of individuals and manufacturing companies who are now switching over to alternative source of raw materials basically to save cost and energy. As a recycling company, we are ready to take advantage of any opportunity that is available in the industry.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new recycling plant in same location where our target market exists and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

• Market Trends

One obvious trend in the recycling industry is that players in this industry leverage on saving the earth and balancing the ecosystem to promote their business.

As a matter of fact, governments all over the world and even international Non – Government Organizations are in the forefront when it comes to campaigning in favor of recycling materials to generate raw materials for industries as against tapping virgin raw materials. This is so because it will help save cost and energy and the earth that we live in will be the better for it.

Another trend is that is common in the recycling industry is that, with the advancement of technology, it is now easier the recycle and process almost any materials and liquid waste that exist in our world. This trend and the immerse support from government and NGOs is sure responsible for encouraging investors to venture into the recycling industry

Lastly, more and more manufacturing industries are beginning to see the benefits of going for recycling materials as against going for virgin raw materials in the production of their products. This is the reason why the industry is expanding and becoming more profitable and viable.

8. Our Target Market

Before starting our recycling business in Bismarck – North Dakota, we conducted a market survey and feasibility studies and we are certain that there is a wide range of manufacturing / production factories that cannot successfully run their businesses without sourcing for recycled raw materials from us.

In view of that, we have created strategies that will enable us reach out to various manufacturing / production companies who we know can’t afford to do without our products / recycled raw materials. Below is a list of the people and organizations that we have specifically market our products and services to;

• Food and drinks processing and packaging companies
• Roofing and construction companies
• Chemical manufacturing companies
• Manufacturers and Distributors
• Printing Press (Publishing Houses)
• Branding and Advertising agencies
• Entrepreneurs and Start – Ups who would need recycled raw materials from us.

Our Competitive Advantage

The recycling industry is an emerging one that is yet to be fully accepted globally, therefore there is little or no competition in the industry at the moment. Although, there is a relationship between the emerging players as they cannot do without the other.

Since the industry is a multi-stage one, there is need for collaboration among the players in order to have a win-win situation for all the players. Without a shadow of doubt, there are loads of big time investors that have a stake in the recycling industry; but one thing is certain, there is room big enough to accommodate all players.

So, if you enter the industry today, you should brace up yourself for collaboration and prepare for serious competition in the nearest future as soon as the recycling industry enter it boom period, this period will definitely arrive especially in the developing world in little time when recycled product is seen in the same light as the new and “virgin” materials.

Our competitive advantage lies in the power of our team; our workforce. We have a team of certified and highly trained and experience recycling engineers and technicians / machine operators, a team with excellent qualifications and experience in various niche areas in the recycling industry.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category ( startups recycling companies in the United States ) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Friends of The Earth Recycling®, LLC is established with the aim of maximizing profits in the recycling industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients. Friends of The Earth Recycling®, LLC will generate income by selling and supplying the following products;

10. Sales Forecast

One thing is certain, there would always be manufacturing / production companies who cannot but source their raw materials from recycling plants.

We are well positioned to take on the recycling industry and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our recycling company to enviable heights.

We have been able to critically examine the recycling market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Bismarck – North Dakota.

Below is the sales projection for Friends of The Earth Recycling®, LLC, it is based on the location of our business and of course the wide range of our services and target market;

• First Fiscal Year-: $150,000
• Second Fiscal Year-: $250,000
• Third Year-: $600,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there is stiffer competition in the recycling industry; hence we have been able to hire some of the best marketing experts to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the recycling industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Friends of The Earth Recycling®, LLC.

Our corporate goal is to grow Friends of The Earth Recycling®, LLC to become one of the top 10 recycling brands in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in Bismarck – North Dakota but also in other cities in the United States of America.

Friends of The Earth Recycling®, LLC is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our recycling company by sending introductory letters alongside our brochure to manufacturing / production companies and other key stake holders in the manufacturing industry.
• Advertise our business in relevant business magazines, newspapers, TV stations, and radio station.
• List our business on yellow pages ads (local directories)
• Attend relevant international and local expos, seminars, and business fairs et al
• Create different packages for different category of clients in order to work with their budgets and still deliver good recycled raw materials
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We will not undermine the fact that for a lot of people to know what we do, we have to continuously advertise. We have been able to work with our in house brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to become the number one choice for manufacturing / production companies in the whole of Bismarck – North Dakota and beyond which is why we have made provisions for effective publicity and advertisement of our recycling company.

Below are the platforms we intend to leverage on to promote and advertise Friends of the Earth Recycling®, LLC;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our services
• Install our Bill Boards on strategic industrial locations all around Bismarck – North Dakota
• Engage in road show from time to time in targeted industrial estates
• Distribute our fliers and handbills in target areas
• Contact manufacturing / production companies by calling them up and informing them of Friends of The Earth Recycling®, LLC and the services we offer
• List our solar panel installation, maintenance and repair company in local directories / yellow pages
• Advertise our recycling company in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles / trucks are well branded with our company logo et al.

12. Our Pricing Strategy

At Friends of The Earth Recycling®, LLC we will keep the prices of our recycled raw materials below the average market rate for all of our customers by keeping our overhead low and by collecting payment in advance from corporate organizations who would hire our services. In addition, we will also offer special discounted rates to all our customers at regular intervals.

We are aware that there are some one – off jobs or government contracts that are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.

• Payment Options

At Friends of The Earth Recycling®, LLC our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft
• Payment via mobile money
• Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a standard recycling plant; it might differ in other countries due to the value of their money. However, this is what it would cost us to set up Friends of The Earth Recycling®, LLC in the United of America;

• Business incorporating fees in the United States of America will cost – $750.
• The budget for Liability insurance, permits and license will cost – $3,500
• Acquiring facility that will accommodate the design of recycling plant we want to build will cost – $150,000.
• The amount required to purchase the needed recycling equipment and machines – $120,000
• Equipping the office (computers, printers, projectors, markers, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $30,000
• Amount required to purchase the needed software applications to run our business – $3,500
• Launching an official Website will cost – $500
• Amount need to pay bills and staff members for at least 2 to 3 months – $70,000
• Amount needed to acquire trucks – $50,000
• Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000

Going by the report from the market research and feasibility studies conducted, we will need about four hundred and fifty thousand ( $450,000 ) U.S. dollars to successfully set – up a medium scale but standard recycling plant in the United States of America.

Generating Funding / Startup Capital for Friends of the Earth Recycling®, LLC

Friends of The Earth Recycling®, LLC is a business that will be owned and managed by Engr. Shannon Carson and his friend and business partner for many years Moses Carpenter. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 ( Personal savings $70,000 and soft loan from family members $30,000 ) and we are at the final stages of obtaining a loan facility of $350,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Friends of The Earth Recycling®, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to sell our recycled raw materials a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Friends of The Earth Recycling®, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of ten years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Securing a standard facility to build a standard and modern recycling plant: CompLeted
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the start – up capital from the founders: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of Logo for the business: Completed
• Purchase of repair and installation tools and equipment: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the needed recycling machines, equipment and trucks: In Progress
• Purchase of the Needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
• Creating Official Website for the business: In Progress
• Creating Awareness for the business: In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in various industries: In Progress

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Recycling Business

Back to All Business Ideas

How to Start a Recycling Business

Written by: Esther Strauss

Esther is a business strategist with over 20 years of experience as an entrepreneur, executive, educator, and management advisor.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on April 25, 2021 Updated on March 13, 2024

Investment range

$156,550 - $184,100

Revenue potential

$300,000 - $700,000 p.a.

Time to build

Profit potential

$120,000 - $210,000 p.a.

Industry trend

A recycling business is the entrepreneurial equivalent of killing two birds with one stone: it has good money-making potential AND it’s a good thing to do for our world. By starting a recycling business you’ll be fighting climate change while setting yourself up to make a good living.

Of course, starting any business takes determination and hard work. The key is gaining the relevant knowledge and moving patiently through the launch and development process, as detailed in this step-by-step guide.

Read on, and you’ll soon be on the road to recycling business success!

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Before delving into the world of recycling, let’s look at it from a general perspective.

Pros and cons

To gain a balanced view of the recycling industry, let’s look at the positives and the negatives. 

• Join growing global fight against climate change
• You’re the boss — choose your specialization, work when you want
• Growing industry with huge potential
• Capital and labor-intensive
• Small margins and limited profit potential
• Underdeveloped recycling infrastructure

Recycling industry trends

A look at Google Trends for the search term “recycling services” shows consistent interest over the last five years((https://trends.google.com/trends/explore?date=today%205-y&geo=US&q=recycling%20services)). 

Industry size and growth

• Industry size and past growth – Analyst IBISWorld values the US recycling facilities market at $7.6 billion in 2022, after growing more than 3% annually in the last five years.(( https://www.ibisworld.com/industry-statistics/market-size/recycling-facilities-united-states/ ))  
• Growth forecast – The US plastic recycling market alone is expected to post a healthy annual growth of more than 4% through 2030.(( https://www.researchandmarkets.com/reports/5311547/united-states-u-s-plastic-recycling-market )) 
• Number of businesses – There are more than 1,000 recycling facilities in the US(( https://www.ibisworld.com/industry-statistics/number-of-businesses/recycling-facilities-united-states/ ))
• Number of people employed – The industry employs nearly 25,000 people.((​​ https://www.ibisworld.com/industry-statistics/employment/recycling-facilities-united-states/ )) 

Trends and challenges

The latest trends in recycling are:

• Paper and paperboard wastes are declining, while plastic waste is increasing. 
• Public awareness about recycling is increasing.

Some of the challenges are:

• Finding CDL drivers and helpers 
• China’s National Sword policy which cuts imports of recyclable waste

Popular materials

Nearly 70 million tons of municipal solid waste in the US were recycled in 2018, according to the Environmental Protection Agency. These are the most common materials that are recycled.(( https://www.epa.gov/facts-and-figures-about-materials-waste-and-recycling/national-overview-facts-and-figures-materials#NationalPicture ))

• Paper and paperboard (66.5%)
• Metals (12.6%)
• Rubber, leather, and textiles (6%)
• Wood (4.49%)
• Plastics (4.47%)

What kind of people work in recycling?

Among the workers in recycling are the collectors. 

• Gender – Nearly 94% of recyclable materials collectors are male.(( https://www.zippia.com/recyclable-materials-collector-jobs/demographics/#gender-statistics ))
• Average level of education – Around 60% of collectors are high school graduates.(( https://www.zippia.com/recyclable-materials-collector-jobs/education/ ))
• Average age – Most collectors are over 40 years old.(( https://www.zippia.com/recyclable-materials-collector-jobs/demographics/#age-statistics ))

How much does it cost to start a recycling business?

Starting a waste collection business will be your cheapest option because you won’t need to process any material. For a collection business, you’ll need $20,000 to $30,000 to get started.

Here are a few things that you’ll need:

• Staff 

If you’re looking to start a small production or processing business, you’ll need an investment of about $170,000. On the higher end, you’ll be looking at $3 million and up. 

You’ll need a handful of items to successfully launch your recycling business. Here’s a list to help you get started:

• Hydraulic lifts
• Industrial loaders
• Vibratory feeders
• Recycling screens
• Pulverizers

Ensure that you have all the necessary equipment before you start your business; otherwise, you could end up with delays.

Here’s an idea of what your investment will cover:

How much can you earn from a recycling business?

Recycling advocate Green Biz estimates that the cost of processing a ton of recycling material is $75. In addition, you’ll need to evenly split any income above this mark with your local municipality. 

Roughly speaking, here is the revenue you would generate per ton of materials:

• Cardboard: $25
• Paper: $2.50
• PET plastic: $150
• HDPE plastic: $250
• Aluminum: $1,325

In your first year or two, you could recycle 15 tons of waste in a day for five days a week, bringing in nearly $300,000 in annual revenue. This would mean around $120,000 in profit, assuming a 40% margin. As your brand gains recognition, your capacity could climb to 30 tons a day and you could extend operating hours to six days a week. If you hire more staff and invest in additional equipment, your profit margin would be reduced to around 30%. With annual revenue of around $700,000, you’d make a tidy profit of $210,000.

What are the barriers to entry?

The recycling industry is a highly regulated space, so you need to be aware of several barriers.

Here are a few:

• Several permits and licenses required
• Expensive insurance
• Demanding OSHA regulations
• High startup costs

Related Business Ideas

How to Start a Composting Business

How to Start a Waste Management Business

How to Start a Junk Removal Business

Step 2: hone your idea.

It’s time to think about where you’ll fit in the recycling industry, your business’s location, and other finer details

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

To determine your competition, you could look at the city, county, state, or even national level. You might look through trade organization databases or Google Search businesses in your niche. 

Try to get as much data from your recycling business competitors as possible, like how much material they collect, process, and produce, how they price their products and transport goods. By learning about your competition, you put yourself in a good position to beat them. 

There are many types of recycling businesses . They vary by which part of the recycling process they’re in and what material they recycle. The three primary recycling business niches are also steps in the overall process: 

• Collectors – Gather, sort, store, and deliver recyclables such as plastic bottles 
• Processors – Recycle used materials before passing on to manufacturers
• Producers – Take raw material from processors and create products

What? Determine your products or services

Will you specialize in metal? Plastic? Electronics? You could start a plastic recycling business, recycled paper company, or even an aluminum recycling facility. There are many possible avenues. So you’ll need to do your research and choose the best fit. You should take into account the availability and demand of materials, the costs of starting in a particular niche, and which step of the recycling process offers the best fit. 

You could collect waste materials, transport and process them, store materials, or manufacture and sell products. 

Keep in mind, until you choose your niche you won’t know what equipment to purchase, your target demographic, or how to market your new business.

How much should you charge for recycling?

Since materials and commodities usually fluctuate in price, you’ll have to check out the latest valuations to determine the worth of your recyclables. You can also look at your competitors’ prices to give you a better idea. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be the primary customers for your products. For example, if you have a plastic recycling business, your target market will be producers of any goods made out of recycled plastic. 

At the same time, you could also offer to collect plastic for recycling from consumers and businesses. If you were to structure your business like this, you’d have target markets on both ends of your business — in-take and output. 

Where? Choose the location for your recycling business

Choosing the right location is essential for your recycling centers. It’s a good idea to have a site near your customers to keep your transportation costs low, especially since you’re dealing with tons of materials. A typical location for this type of business would be in an industrial area on the edge of the city to avoid high rental costs. 

Step 3: Brainstorm a Recycling Company Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “climate” or “recycling”, boosts SEO
• Name should allow for expansion, for ex: “Green Cycle Recycling” over “Battery Recycling Solutions”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

Powered by GoDaddy.com

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Recycling Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: Present a brief of your recycling business, highlighting the types of materials you’ll process and the environmental and economic impact you aim to achieve.
• Business Overview: Describe your recycling business’s role in waste management, focusing on the materials you’ll recycle and the processes you’ll use.
• Product and Services: List the services you offer, such as collection, sorting, processing, and reselling of recyclable materials.
• Market Analysis: Evaluate the demand for recycled materials in your area and the sectors you will serve, like manufacturers or municipal programs.
• Competitive Analysis: Identify your competition and how your business will offer more efficient or sustainable recycling options.
• Sales and Marketing: Outline your approach to securing sources of recyclable materials and finding buyers for the processed goods.
• Management Team: Introduce the team that will lead the business, emphasizing any expertise in environmental science or waste management.
• Operations Plan: Detail the operational workflow, from material collection to processing and resale.
• Financial Plan: Provide an overview of your startup costs, operational expenses, and revenue projections.
• Appendix: Include supplementary documents, such as certifications, detailed market studies, or partnership agreements, to support your business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to recycling. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your recycling business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just needs to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

Choose Your State

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans : This is the most common method, but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans : The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants : A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Venture capital : Offer potential investors an ownership stake in exchange for funds, keeping in mind that you would be sacrificing some control over your business.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal : Self-fund your business via your savings, the sale of property or other assets, and support from family and friends.

Bank and SBA loans are probably the best options, other than friends and family, for funding a recycling business. You might also try crowdfunding if you have an innovative concept.

Step 8: Apply for Recycling Business Licenses and Permits

Starting a recycling business requires obtaining a number of licenses and permits from local, state, and federal governments. 

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits, such as storage and recycling permits and hazardous material permit. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your recycling business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

Running a recycling company entails a lot of moving parts which makes for complicated management processes. But by automating these processes, you can spot errors and improve your efficiency. You may want to use industry-specific software, such as ScrapRight , Waste Logics , and ReMatter .

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Starting a recycling business is a commendable venture that not only contributes to environmental sustainability but also offers economic opportunities. To help you kickstart and grow your recycling business, here are some effective marketing strategies.

• Educational Workshops: Host workshops in schools, community centers, and local events to educate people about the importance of recycling, proper sorting techniques, and the impact on the environment.
• Partnerships with Local Businesses: Collaborate with local businesses to set up recycling bins at their locations, fostering a sense of community responsibility and expanding your recycling network.
• Reward Programs: Implement a reward system where individuals or businesses earn incentives for recycling, such as discounts, coupons, or recognition, creating motivation for active participation.
• Social Media Campaigns: Leverage social media platforms to showcase success stories, recycling tips, and engage with the community, building a strong online presence and encouraging participation.
• Mobile Recycling Units: Introduce mobile recycling units that can visit different neighborhoods or events, making recycling more accessible to a broader audience.
• Participation in Local Events: Set up booths or participate in local fairs, markets, or festivals to raise awareness about your recycling services and interact with potential customers face-to-face.
• Community Clean-up Initiatives: Organize or sponsor community clean-up events, highlighting the positive impact of recycling while creating a sense of pride and unity within the community.
• Branding through Unique Containers: Design visually appealing and easily identifiable recycling containers, making your service more recognizable and encouraging people to use them.
• Collaboration with Municipalities: Work with local governments to establish partnerships, ensuring that your recycling services align with municipal waste management goals and regulations.
• Data-Driven Marketing: Collect and share data on the positive environmental impact of your recycling efforts, demonstrating the tangible results of community participation.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your recycling business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your recycling business could be:

•  The most eco-friendly recycling processing system
• The best prices on recycled materials 
• Full-service recycling, from pick-up to delivery! 

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a recycling facility, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in recycling for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in recycling. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.

Step 12: Build Your Team

If you’re starting out small, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a recycling business would include:

• Collectors 
• Facility Manager
• Accountant 
• Marketing Lead 

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn or Facebook.  

You can also use free classified sites like Jobs and AngelList. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.

Step 13: Run a Recycling Business – Start Making Money! 

Recycling is a fast-growing industry worth more than $7 billion in the US. By starting your own recycling business, you not only stand to make some good money, you’ll also be doing a service to your community and helping combat climate change. 

But you’ll have to be ready to invest a significant amount into your processing facility and equipment. So it’s a good idea to identify possible sources of funds from the start. Having distinctive upcycled products is also ideal.

If you’ve followed all the steps laid out in this guide, you and your recycling business should be ready for success!

• Recycling Business FAQs

The intricacies depend on the type of business, but most recycling companies make profits in three ways. They can either charge for the collection of recyclable material, sell recycled material to a producer or sell a recycled product directly to a consumer.

There isn’t one most profitable recycling business because there are many niches and approaches businesses can take. But two niches that have good potential are waste paper and electronic waste.

Waste paper requires minimal sorting and processing, so your initial capital outlay can stay low. While electronic waste usually has components that are made of precious metals.

There are a number of items that you can recycle. These include:

• Scrap metal – Metal can be reused many times without degrading
• Junk cars and parts
• Bottles and cans – Aluminum can fetch over $1,000 per ton
• Ink cartridges
• Electronics
• Plastic waste
• Solid waste

Utilize online platforms to showcase your services, engage with your target audience, and share informative content. Collaborate with local businesses and organizations, conduct educational outreach, and promote convenience and ease of use. 

Commonly sought-after recycled materials include paper and cardboard, plastic bottles and containers, aluminum cans, glass bottles, and certain types of metals. 

The material that is often considered hardest to recycle is typically Styrofoam (expanded polystyrene). Its lightweight and bulky nature poses challenges in the recycling process, as it requires specialized machinery and processes to efficiently break it down and recycle it. 

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Recycling Company Name
• Create a Recycling Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Recycling Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Recycling Business - Start Making Money! 

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Recycling Business Plan

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write a Recycling Business Plan?

Writing a recycling business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

• This section may include the name of your recycling business, its location, when it was founded, the type of recycling business (E.g., paper recycling, metal recycling, glass recycling, tire recycling), etc.

Market opportunity:

Products and services:.

• For instance, you may include collection & sorting, material processing, manufactured products from recycled materials, sustainable waste management solutions, etc.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

• Paper recycling business
• Plastic recycling business
• Metal recycling business
• E-waste recycling business
• Glass recycling business
• Tire recycling business
• Construction & demolition recycling business
• Explain where your business is located and why you selected the place.

Mission statement:

Business history:.

• Additionally, If you have received any awards or recognition for excellent work, describe them.

Future goals:

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

• For instance, government agencies, commercial & industrial businesses, residential customers, manufacturing & industrial facilities, or educational institutions would be an ideal target audience for a commercial recycling business.

Market size and growth potential:

Competitive analysis:, market trends:.

• For instance, sustainable fleets have a booming market; explain how you plan on dealing with this potential growth opportunity.

Regulatory environment:

Here are a few tips for writing the market analysis section of your recycling business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Product and Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your products & services:

Mention the recycling products& services your business will offer. This list may include

• Collection & sorting services
• Material processing
• Manufactured products from recycled materials
• Composting services
• Waste audits & consulting
• Education & awareness programs

Quality measures:

• This may include material sorting & contamination control, compliance with environmental regulations, product quality standards, continuous improvement & innovation, etc.

Additional Services:

In short, this section of your recycling plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

• For example, comprehensive recycling solutions, advanced recycling technologies, or collaborative partnerships could be some of the great USPs for a professional recycling company.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your recycling business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your recycling business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & machinery:.

• Explain how these technologies help you maintain quality standards and improve the efficiency of your business operations.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your recycling business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

• It should include, key executives(e.g. COO, CMO.), senior management, and other department managers (e.g. general manager, operations manager, sales & marketing manager.) involved in the recycling business operations, including their education, professional background, and any relevant experience in the industry.

Organizational structure:

Compensation plan:, advisors/consultants:.

• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your recycling services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.

Financing needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your recycling business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample recycling business plan will provide an idea for writing a successful recycling plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our recycling business plan pdf .

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Frequently asked questions, why do you need a recycling business plan.

A business plan is an essential tool for anyone looking to start or run a successful recycling business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your recycling company.

How to get funding for your recycling business?

There are several ways to get funding for your recycling business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your recycling business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your recycling business plan and outline your vision as you have in your mind.

What is the easiest way to write your recycling business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any recycling business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

How do I write a good market analysis in a recycling business plan?

Market analysis is one of the key components of your business plan that requires deep research and a thorough understanding of your industry.

We can categorize the process of writing a good market analysis section into the following steps:

• Stating the objective of your market analysis—e.g., investor funding.
• Industry study—market size, growth potential, market trends, etc.
• Identifying target market—based on user behavior and demographics.
• Analyzing direct and indirect competitors.
• Calculating market share—understanding TAM, SAM, and SOM.
• Knowing regulations and restrictions
• Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

How detailed should the financial projections be in my recycling business plan?

The level of detail of the financial projections of your recycling business may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a complete view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

What key components should a recycling business plan include?

The following are the key components your recycling business plan must include:

• Executive summary
• Business Overview
• Market Analysis
• Products and services
• Sales and marketing strategies
• Operations plan
• Management team
• Financial plan

Can a good recycling business plan help me secure funding?

Indeed. A well-crafted recycling business will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.

So, if you have a profitable and investable business, a comprehensive business plan can certainly help you secure your business funding.

What's the importance of a marketing strategy in a recycling business plan?

Marketing strategy is a key component of your recycling business plan. Whether it is about achieving certain business goals or helping your investors understand your plan to maximize their return on investment—an impactful marketing strategy is the way to do it!

Here are a few pointers to help you understand the importance of having an impactful marketing strategy:

• It provides your business an edge over your competitors.
• It helps investors better understand your business and growth potential.
• It helps you develop products with the best profit potential.
• It helps you set accurate pricing for your products or services.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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How to Start a Recycling Business in 14 Steps (In-Depth Guide)

Updated:   January 31, 2024

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The global recycling industry makes more money than some people realize. The future is bright with an estimated compound annual growth rate (CAGR) of 4.8% from 2022 to 2030 .

In this guide, we’ll explain how to start a recycling business from the ground up. Topics include market research, competitive analysis, sourcing recycling materials, developing a business plan for a successful recycling business, and registering an EIN. Follow along to learn all you need to know to start a smoothly operating recycling business.

1. Conduct Recycling Market Research

Market research is important to any new recycling program. Whether you sell recyclable materials or run a processing facility, market research offers insight into your target market, prime locations, local market saturation, local government license requirements, and more.

Some details you’ll learn through market research in the recycling sector include:

• The major drivers stimulating this growth are expanding environmental awareness, corporate sustainability goals, and local and state regulations mandating recycling.
• With landfill space dwindling, more states are likely to pass similar laws, creating opportunities for recycling companies.
• Scrap metals like aluminum, copper, and steel are highly profitable to collect and resell.
• Setup costs are low and it’s easy to scale gradually.
• With new gadgets flooding the market daily, e-waste is the fastest-growing waste stream.
• Startup costs are higher due to required certifications, but this segment offers great impact potential.
• Entrepreneurs can focus on recyclable plastics like PET and HDPE or find niche markets like plastic film or Styrofoam recycling.
• Entrepreneurs can provide collection services for offices and households, operate drop-off locations, or focus on document destruction and shredding services.
• With the construction industry booming, disposing of huge volumes of debris is a major challenge.

The keys to success for any new recycling business are 1) identifying the right local niche and target materials 2) ensuring access to profitable end markets and 3) building strategic partnerships with waste management companies, municipalities, general contractors , and generators.

2. Analyze the Competition

Thoroughly analyzing the competitive landscape is crucial when starting any new business, and recycling is no exception. Here are some tips on assessing your competition as a new recycling entrepreneur:

Identify direct and indirect competitors in your local area. Direct competitors offer the same services and target the same customers as you plan to. Search online directories and drive around your region to create a comprehensive list.

Evaluate their offerings, capabilities, and weaknesses. Visit their sites or call anonymously to inquire about services and pricing. Search their websites and social media pages to gauge their marketing abilities. Look for gaps or shortfalls you can improve on.

For example, a scrap metal recycler may find competitors have small, cluttered facilities and poor logistics. An electronics recycler may see weak community outreach from rivals. Identifying deficiencies can reveal opportunities to gain an edge.

Research indirect competitors too – businesses that may lure away potential customers. For a plastic recycler, these could include waste-to-energy plants or landfills. Understanding all options for waste generators’ materials provides useful intel.

Estimate the market share of major players, using available data like revenue, volumes handled, and regional coverage. This gives perspective on who leads the market and how much share is feasibly up for grabs.

Evaluate competitive online presence as well. Search engines, review sites, and social media all help customers form opinions, so review what customers see during online research. If competitors’ web presences are outdated, lacking in engagement, or absent, you can seize the advantage.

Lastly, learn from inspirational companies outside your region. Look for recyclers with and gold-standard gold-standard customer service, s and gold-sta,ndard, or innovative practices that set them apart. Adapt elements that could give you a competitive edge in your local market.

Analyzing the competition from all angles provides tremendous insight into positioning your new recycling business for success amidst rivals. Use these findings to hone your niche, offerings, and marketing for maximum impact when you launch.

3. Costs to Start a Recycling Business

Starting a recycling company requires careful financial planning and cost analysis. The expenses involved can vary widely based on factors like location, scale, target materials, and more. Here is an overview of typical start-up and ongoing costs to expect:

Start-up Costs

• Incorporation Fees – $500-$2,000 to form an LLC or corporation
• Business Licensing – $50-$500 for state and local business licenses
• Permits – $3,000-$10,000 for special recycling permits and approvals
• Equipment – $50,000-$500,000+ for trucks, balers, crushers, shredders, forklifts, etc. Scale and materials affect costs greatly. Leasing can lower initial outlay.
• Real Estate – $5,000-$750,000 to buy or rent facility space. Minimum 2 acres recommended for most recycling operations.
• Site Improvements – $50,000-$250,000 for paving, fencing, truck scales, office space, stormwater management, etc.
• Consultants – $2,000-$20,000 for legal, accounting, engineering, and compliance support.
• Inventory – $10,000-$100,000 for spare parts, fuel, and other operational materials.
• Working Capital – $25,000-$250,000 cushion for first 3-6 months of operating expenses.
• Contingency – An additional 10-20% of total costs for unexpected overages.

Total startup costs can easily exceed $500,000 for a full-scale recycling business. Starting small and scaling gradually can reduce and initial capital needed.

Ongoing Costs

• Labor – $200,000-$2 million annually for employees like equipment operators, drivers, sorters, and administrators. Major cost factor.
• Insurance – $10,000-$100,000 annually for property, liability, commercial auto, workers comp. Varies by risk exposure.
• Rent/Mortgage – $24,000-$500,000+ per year depending on facility size and location.
• Equipment Maintenance – $50,000-$250,000 annually for repairs, fuel, and replacements to keep equipment operating efficiently.
• Utilities – $10,000-$100,000+ per year including electricity, gas, water, telephone, internet.
• Disposal Fees – Depending on the model, $50-$500+ per ton in landfill tipping fees for residual wastes.
• Transportation – For collections models, $50,000-$500,000 annually for driver payroll, fuel, and truck maintenance.
• Marketing – $15,000-$150,000 per year for advertising, online marketing, business development.
• Other Overheads – ~$50,000 for office supplies, professional services, compliance costs, and unforeseen expenses.

While daunting, the sizable revenue potential in recycling makes the startup and operating costs involved surmountable for many entrepreneurs. Careful planning and advantage-seeking can help optimize costs and profitability.

4. Form a Legal Business Entity

When starting a recycling company, one of the first key legal decisions is choosing the right business structure. The four main options each have advantages and disadvantages to weigh.

Sole Proprietorship

This simplest structure has no formal registration requirements. The owner operates under their own name and personal liability.

• Pros: Easy to form, few paperwork requirements, the owner retains full control, no corporate taxes.
• Cons: Unlimited personal liability, limited access to financing, no perpetual business life.

Best for small recycling operations with minimal risk. Offers little protection if sued.

General Partnership

Two or more co-owners share management, profits/losses. Personally liable for each other’s business actions.

• Pros: Easy to establish, share startup costs, pooled management skills.
• Cons: Equal responsibility for debts/lawsuits, divisions between partners, no perpetual life.

Limited Liability Company (LLC)

Members enjoy liability protection while retaining passthrough taxes like a partnership. Managed informally or with a corporate structure.

• Pros: Limited liability for owners, separate legal entity, operational flexibility, passthrough taxation.
• Cons: More paperwork than sole proprietorship, limited business life.

The liability shield makes an LLC ideal for recycling companies of most sizes.

Corporation

A separate legal entity offers complete limited liability for shareholders. Considerable legal formalities.

• Pros: Strongest liability protection, unlimited business life, easier to raise investment capital.
• Cons: Double taxation on corporate income and dividends, extensive recordkeeping, closely regulated.

The liability shield benefits larger recycling firms but increased regulations can deter small businesses.

5. Register Your Business For Taxes

One important task when starting a recycling company is obtaining an Employer Identification Number, or EIN, from the IRS. This unique identifier is essential for federal tax purposes.

An EIN acts like a social security number for your business. It identifies your company to the IRS and allows you to open business bank accounts, apply for licenses and permits, file taxes, and hire employees. An EIN is required if you have any employees, operate your recycling business as an LLC or corporation, or file any partnership tax returns.

Applying for an EIN is free and can be done online via the IRS website . The online application takes less than 30 minutes to complete. You’ll need to provide basic information about your recycling business structure and ownership.

Once submitted, you’ll receive your EIN immediately. This number should be included on all your recycling business’ tax filings and other documents requiring IRS identification.

You’ll also need to register with your state’s taxation department for sales tax collection purposes. This involves filing additional paperwork and remitting sales tax revenue regularly. State business registration can be completed on [your state’s taxation website] after receiving your EIN.

Taking these essential steps early on ensures your new recycling venture complies with federal and state tax laws right from the start. The EIN also legitimizes your business and lays the groundwork for growth.

6. Setup Your Accounting

As a recycling entrepreneur, implementing solid accounting principles from day one is critical. Proper bookkeeping and financial management will help your business thrive and avoid costly IRS issues.

Accounting Software

Getting set up with small business accounting software like QuickBooks provides the foundation. The software seamlessly integrates with your business bank accounts and credit cards, automatically importing and categorizing transactions to streamline recordkeeping.

Hire an Accountant

Partnering with an accountant takes your financial management to the next level. A qualified accountant provides bookkeeping and records reconciliation monthly or quarterly to identify any discrepancies. This prevents small mistakes from becoming major problems.

Come tax season, your accountant will be familiar with your finances and can ensure accurate filing and maximal deductions for your recycling business. Expect to invest around $200-$500 monthly for these ongoing services.

Open a Business Bank Account

Maintaining completely separate finances for your recycling company is also key. Do not comele personal and business transactions, as this complicates taxes and makes an audit more likely. Open dedicated business checking/savings accounts to keep funds separate.

Apply for a Business Credit Card

Applying for a business credit card also builds your recycling company’s financial identity. Issuers evaluate business creditworthiness based on time in business, income, and the owner’s credit. Startup companies can get approved for $1,000-$10,000 in initial business credit.

7. Obtain Licenses and Permits

Before collecting or processing any recyclable materials, it is essential for recycling entrepreneurs to acquire all required federal, state, and local licenses and permits. Find federal requirements through the U.S. Small Business Administration . The SBA also has a local search tool for state requirements.

The specific permits needed vary based on your location and the scale and types of materials handled, but some examples include:

• Solid Waste Facility Permit – State environmental agencies regulate waste management. You’ll need a solid waste permit to operate any recycling facility including sorting, processing, baling, storage, or collections.
• Hazardous Materials Permit – If handling any batteries, e-waste, or other materials classified as hazardous, additional EPA and state permits are required covering transport, storage, security protocols, and disposal of these items.
• Air Quality Permit – Recycling operations produce dust, odors, and other air pollutants requiring air permits, especially for shredder, crusher, or melting activities. State environmental agencies review emissions controls and can impose restrictions or limitations through the permitting process.
• Wastewater Discharge Permit – Water used in recycling processes becomes contaminated and must be properly treated before discharge. Permits set allowable discharge limits and monitoring requirements based on the types of pollutants.
• Stormwater Permit – Outdoor recycling facilities of a certain size have to implement stormwater management plans and obtain NPDES discharge permits for rain-contacting operations. This helps prevent runoff pollution.
• Occupational Health & Safety Permits – For activities like spray painting, abrasive blasting, or hazardous material handling, OSHA permits are required to demonstrate proper procedures and safety precautions for workers.
• Transportation Licenses – For collection services, commercial driver’s licenses, vehicle registrations, and state waste transporter permits must be secured for all drivers and trucks. DOT numbers may also be required.
• Local Business Licenses – Cities and counties require business licenses for all recycling operations in their jurisdiction covering zoning approvals, taxes, and other regulations. Some may require special recycling facility licenses.

While daunting, covering all licensing and permitting bases ensures your recycling business complies fully with the myriad regulations on waste management and environmental practices.

8. Get Business Insurance

Given the hazards inherent in handling large volumes of scrap materials and operating heavy machinery, insurance is especially critical for recycling businesses. The right policies can prevent severe financial losses.

Without adequate coverage, a few hypothetical scenarios could cripple or destroy your recycling company:

• A machine malfunction sparked a fire that caused $250,000 in equipment damage. Without property insurance, you would bear the full replacement cost.
• An employee was injured by faulty baling equipment. Without liability insurance, their $500,000 lawsuit award could bankrupt your business.
• A delivery truck crashed resulting in $100,000 in property damage to the other vehicle. Lacking commercial auto insurance means you must cover the payment yourself.

To mitigate risk, work with an insurance broker to secure policies tailored to your recycling operation before opening. Key coverages likely needed include:

• General liability – Protects against third-party, bodily injury, property damage, and lawsuits
• Commercial property – Covers damage to business property like equipment in case of events like fires or storms
• Commercial auto – For company vehicles, covers collision, damage, and liability
• Workers’ compensation – Pays for employee injuries suffered on the job per state laws
• Business interruption – Replaces income lost if operations are halted by covered incidents

The application process will require details on your location, facility, volumes handled, transportation practices, and materials recycled to assess risk levels. Quotes for annual premiums will reflect the underwriter’s appraisal of the hazards involved. Higher deductibles can reduce premium costs.

9. Create an Office Space

Having a dedicated office space provides legitimacy and functionality for a recycling startup. An office allows you to meet with clients, store documents securely, manage payroll, and house your business address. Depending on needs and budget, various options exist:

Home Office

A home office works well initially, with minimal setup – simply designate a bedroom or basement area. This allows easy access to administrative work, storage, and meetings. However, having clients visit a residence may appear unprofessional. Lack of separation may also lead to distraction. Expect minimal investment, but limited capabilities.

Coworking Office

For recycling businesses wanting a professional presence without the cost of commercial space, a coworking space like WeWork offers a nice middle ground. Coworking spaces provide amenities like conference rooms, front desk staff, high-speed internet, break areas, and office equipment for monthly membership fees starting around $300.

Retail Office

Some recyclers operate a small retail office/drop-off center allowing local clients to conveniently submit materials for recycling while providing a space for staff to work. If you have a storefront location, utilize part of it for your office needs. However, retail spaces have higher rent and may lack adequate parking or amenities for employees.

Commercial Office

Leasing traditional commercial office space provides the most professional environment but requires considerable investment. Expect monthly rents of $1,000 plus utility costs and a multi-year lease. However, the space can be customized to your needs and convey stability to clients. This option works best for established recycling firms.

10. Source Your Equipment

A key step in launching any recycling operation is acquiring the necessary equipment for collecting, sorting, and processing materials. Savvy entrepreneurs have options when sourcing these assets:

Buying brand-new equipment from manufacturers ensures full warranties and no worn components. However, prices are highest for shiny new machinery. Options include contacting manufacturers directly or working with an equipment dealer who can bundle offerings. Expect to pay premium prices but benefit from customization.

Purchasing used recycling equipment helps save money, with high-quality machines potentially available at half-off retail prices. Search industry classifieds, online auctions like Ritchie Bros. , and local equipment dealers to find deals. Joining industry trade groups also provides access to members selling off assets.

An alternative to buying is renting equipment as needed. This prevents major upfront capital outlays. Rental rates vary widely – expect to pay 10% of the purchase price per month. Search equipment rental marketplaces like Rent It Today when the need arises.

Leasing provides the benefits of new equipment without a huge lump purchase. After a down payment, fixed monthly installments cover the equipment over a set term. Ownership transfers after the final payment. Expect to pay a few thousand per month depending on the assets leased.

11. Establish Your Brand Assets

Developing a strong brand identity helps recycling businesses make a memorable and professional impression on customers. Your brand conveys what your company stands for.

Getting a Business Phone Number

A dedicated business phone number lends legitimacy versus using a personal cell. Options like RingCentral provide toll-free and local numbers with professional call-handling features like greetings, extensions, and voicemails. Expect costs starting around $30/month.

Creating a Logo and Brand Assets

A logo uniquely ties your recycling brand’s visual identity together. Consider an abstract mark, a letter mark, or one incorporating recycling symbols. Services like Looka help create logos tailored to your company for affordable rates.

Business Cards and Signage

Business cards enable quick sharing of contact details in person and at trade events. Yard signs, building signage, and vehicle decals boost visibility. Order economical, quality cards and signage from Vistaprint .

Purchasing a Domain Name

Your domain name is the URL website visitors type to find your recycling business online. Choose a name matching your brand and register it through Namecheap or similar providers. Aim for a .com address with keywords like “yourcityrecycling”.

Building a Website

An online presence is a must through an informational website. Options include DIY builders like Wix or hiring a freelancer from Fiverr . Weigh time vs. cost.

Regardless, ensure your site presents capabilities, contact options, and useful content to engage visitors. This drives new business.

12. Join Associations and Groups

Joining local groups and associations provides invaluable connections when starting a recycling venture. Surrounding yourself with fellow industry experts leads to trade secrets and partnerships.

Local Associations

Most regions have recycling-focused trade organizations you can join, like the California Resource Recovery Association . These provide access to events, advocacy efforts, peer support, and insider knowledge that gives you a competitive edge.

Local Meetups

Attending local meetups and tradeshows puts you face-to-face with potential mentors and partners. Sites like Meetup list environmental and waste management events near you. Bring business cards and be ready to connect.

Facebook Groups

For real-time sharing and advice, Facebook groups like Business Owners, Entrepreneurs, and Start-Ups Networking and (RCO) Recycling business opportunities provide an engaged community of thousands of recycling pros.

13. How to Market a Recycling Business

Implementing ongoing marketing is essential for recycling businesses to continually attract new customers. A multifaceted approach combining digital and traditional strategies is ideal for growth.

Personal Networking

First and foremost, tap your network and existing customer base. Satisfied clients who spread word-of-mouth referrals and reviews are invaluable assets. Consider thanking loyal customers with a special offer if they refer new business.

Digital Marketing

For wider outreach, smart digital marketing should be a priority:

• Run Google Ads campaigns with keywords like “recycling near me” to get found locally in searches
• Create Facebook ads targeted by location and demographics likely needing recycling services
• Start a YouTube channel with tutorials on topics like scrap metal preparation for educational marketing
• Maintain a blog on your website with helpful recycling content driving organic search traffic
• Claim Google Business Profile and Yelp pages to manage listings and customer reviews
• Send email newsletters with company updates and special offers to engender loyalty

Traditional Marketing

More traditional tactics can supplement your digital activities:

• Print full-color flyers and mailers to distribute in neighborhoods
• Take out ads in local newspapers and community circulars
• Sponsor community events related to sustainability to get brand exposure
• Advertise on billboards along highly trafficked roads near your facility
• Run ads on local radio stations aligned with your target customer demographics
• Provide tours of your facility to local schools or civic groups to create connections

The most effective marketing incorporates digital avenues for expanded reach with targeted local advertising to attract customers in your area. All efforts should convey your capabilities, commitment to service, and the convenience you provide.

14. Focus on the Customer

Providing excellent customer service is crucial for recycling companies to retain clients and gain referrals. In this highly competitive industry, experience matters. Some ways to improve customer focus include:

• Small touches that show you value customers have a huge impact.
• Respond promptly to inquiries, provide reminders before pickup days, or send holiday cards to regular clients.
• Offer flexible scheduling if a customer needs to reschedule a pickup. Go the extra mile to build goodwill.
• Following up is also key. Call clients after a big project to ensure satisfaction. Seek feedback so you can continuously improve offerings.
• Address any concerns immediately.
• With great service, you become partners in your clients’ recycling efforts rather than just a vendor.
• Make it easy for satisfied customers to leave online reviews. Positive experiences shared publicly or privately with peers are your best marketing.

By providing supportive, responsive customer service – answering questions, solving problems, listening to needs – you demonstrate genuine commitment. Clients will stick with you for the long haul and promote you to others. This helps recycling businesses grow exponentially through referrals.

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Small Business Trends

How to start a recycling business: your guide to a greener profit.

Thinking about starting a recycling business? The stats back you up. By 2028, the global waste recycling industry will be valued at almost $90 billion. This article will guide you through the steps you need to start a recycling business. From the financial plans and legal requirements to the equipment recycling businesses need.

Why Start a Recycling Business?

Starting a recycling business is a significant venture that has big benefits.

• This type of business reduces the demand for raw materials and conserves natural resources. The EPA reports that in 2018, 186 million metric tons of greenhouse gas emissions were saved.
• Grand View Research pegs recycling is a growing industry, projecting it will reach $81.3 billion by 2028.

A business like this creates employment all the way up from collection sorting to management and processing.

What Do Recycling Companies Do?

Recycling companies work with a wide range of different materials.

Scrap Metal Recycling

Sources can include construction and demolition debris, electronic devices, and automotive parts. The materials can include different types of ferrous metals like iron and steel and non-ferrous metals like aluminum.

Plastic Waste Recycling

A new company needs the right equipment, including conveyor belts and shredders. The sources here include a variety of plastic polymers.

Paper Recycling

A paper recycling department in your new business will collect waste from municipalities, businesses, schools, and offices. This system needs to categorize different materials and separate cardboard, office paper, and newspaper.

Electronic Waste Recycling

Recycling this type of material conserves materials like copper, silver and gold. E-waste recycling reduces water and soil pollution. This type of recycling requires dismantling and sorting procedures.

There are also specialized recycling programs, like those for recycling ink cartridges or those that facilitate business recycling program initiatives.

The Fundamentals of Starting a Recycling Business

Before you can start recycling, you need to learn how to start a business . Here’s what you need to get started.

Research and Market Analysis of the Recycling Industry

Some points to consider include:

• Researching collection methods. Take a look at the logistics and costs for different business models like drop-off centers and curbside pickup.
• Look into the recyclable items in your area. Common ones include glass and plastics, cardboard, metal, and electronics.
• Take a look at the market size and the potential for recycling growth. Look at the trends in waste and analyze government initiatives.

Creating a Business Plan for Your Recycling Business

Here are some tips for getting your business plan right. The business description needs to detail whether you’re starting a paper, recycling, or e-waste recycling venture. Be specific about what you’ll be handling.

The market analysis needs to describe the different segments and whether you will count on industrial, commercial, or residential clients.

Funding and Financial Planning

Financial planning for a startup business should include costs like marketing, insurance, licenses, and equipment plus others.

• You can get money for small business loans by going to banks or credit unions. The Small Business Administration offers programs.
• Family and friends might invest but you need to be clear about the terms to avoid any problems later on.
• Check out grants and subsidies from the government or industry associations to get funded.

Legal Requirements and Regulations for Starting a Recycling Business

Recycling businesses need to stay compliant with regulations to minimize pollution and protect health. Noncompliance can have legal consequences.

Acquiring Necessary Permits

First, you need to pinpoint the kind of recycling venture you are going to start. These can vary depending on your location and the kind of materials you handle. Permits usually mean you’ll need to deal with federal state and local governments.

Environmental Regulations

Federally, you need to deal with the Environmental Protection Agency (EPA). Each state has its own agency. Cities and counties may have their own departments too.

Consider using an environmental consulting firm.

Health and Safety Protocols

Specific protocols depend on the type of business but here are a few general pointers.

• Employees need to be trained on potential hazards and safe workplace practices.
• Everyone needs to understand the proper use of Personal Protective Equipment (PPE). That includes gloves and face shields. etc.
• Safe handling procedures and an up-to-date Material Safety Data Sheet (MSDS) need to be included.

Startup Costs to Consider for Your Recycling Business

If you want to make money with a recycling business, you must start by knowing what costs.

Equipment and Machinery

Here’s a list with some prices.

For Material Handling

• Forklifts start at $10,000.
• Conveyor belts move materials for sorting. They cost up to $10,000 per linear foot.
• Shredders can cost up to $100,000.
• Bailers and compactors can cost somewhere between $2000 to $50,000

Heavy Equipment

Depending on the material you might need crushers, excavators, and loaders. Heavy equipment costs anywhere from $50,000 to several hundred thousand dollars.

Location and Processing Facilities

Before you commit to a location, conduct a feasibility study and site assessment. Make sure the location lines up with regulatory and zoning compliances.

Marketing and Branding

Showcase your service and how it contributes to broader social goals. For example, highlight how it supports green initiatives. Brand it as a company that reduces landfill waste.

How to Start a Profitable Recycling Business

Here are a few tips to make your business profitable.

Choosing a Niche

Analyse and research the market demand. Plus you want to look at the competition and the availability of materials.

Quality of Recyclable Materials

The number one thing to look out for here is contamination. Visual inspections can identify contaminants like food waste and trash.

Partnerships and Collaborations

Organizations and businesses that parallel your operations make for good partners and collaborations. Search for other recycling businesses that share your environmental responsibility goals.

Put together an excellent value proposition highlighting your benefits, resources, and expertise.

Types of Recycling Services to Offer

A recycling business can provide different services.

Community Recycling Programs

These programs collect recyclables from residential properties. The residents sort recyclables and put them in bins. They get picked up curbside.

Corporate Recycling Services

These programs work with businesses. They provide processing, sorting and collection services for materials like metals, plastics and paper.

Waste Management Services

These services look after collection and disposal. They collect recyclables from the curb and include sorting and environmentally responsible treatments.

Steps to Launch Your Recycling Business

Here’s a step-by-step guide to launching a recycling business.

Procurement of Raw Materials

You can start by establishing partnerships with waste management companies or local cities and municipalities. Other entrepreneurs can set up their own curbside collection programs and/or drop-off locations.

Setting Up the Processing Facility and Recycling Centers

There are two commonly used options here. The manual sorting facility needs a location where trucks can deliver recyclables. You’ll need a lot of space for sorting equipment.

An automated sorting facility requires fewer workers. However, it does need a computerized control system to adjust and monitor the processes.

Implementing Marketing Strategies

Here are the three most successful marketing options for a recycling program.

• Use customer testimonials and/or case studies.
• Master community engagement and local partnerships. Don’t forget local schools and community organizations.
• A responsive website needs educational content and updated contact information.

How to Run a Successful Recycling Business

Running a successful business includes the following:

Effective Resource Management

Optimizing and analyzing your processing and sorting operations is top of the list. Effective resource management means improving your efficiency and maximizing your material recovery rates.

Customer Engagement

Look for feedback and share educational content to build a loyal customer base.

Sustainability Measures

One of the top metrics is the waste diversion rate. It’s the percentage of waste that gets diverted away from landfills.

FAQs: How to Start a Recycling Business

How profitable is a recycling business.

The market price for the recyclable items you are working with is a big factor. By 2028, the industry is forecast to be worth US$90 billion.

What types of recycling are most profitable?

There are several sustainable business ideas within the recycling industry. Metal recycling and electronic waste are the two that generate the most money.

Is starting a recycling business good for the environment?

Yes, in several ways. A recycling business diverts glass, plastics, paper, and metal from landfills. These businesses reduce the need for processing raw materials.

What are the risks involved in a recycling business?

Like any business, there are risks with a recycling process. If contamination and quality control aren’t done properly, processing costs increase.

Market prices for items like plastics paper and metal can be volatile for those who want to sell recyclable materials.

How does a recycling company work with municipalities?

Municipalities often offer contractual agreements to recycling companies. These companies can operate curbside collection services for the municipality. They can also manage and establish drop-off centers. Both are recycling program options.

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Route Optimization and Planning

How to start and optimize a recycling business in 2022.

August 4, 2022 8 min read

Circular economies—economies  designed to be regenerative —are growing in popularity, which is probably why you want to start a recycling business. Smart.

The recycling industry is a major factor in driving this change. As more entrepreneurs consider recycling as a viable business option, it’s important to understand what makes recycling companies successful.

This guide covers everything you need to know about starting and optimizing a recycling business, including:

5 Recycling Business Ideas

How to start a recycling business, route optimization: a key growth driver for successful recycling companies, how to optimize your recycling business with optimoroute.

Before you start planning your recycling business, you have to pick a niche—or a type of good—you want to recycle. (You can’t choose ‘em all.) Why? The short answer is: it would be too expensive. Different recyclable materials require different methods of collection, sorting, and processing, and the recycling industry is heavily regulated by both federal and local governments. Trying to process and abide by regulations for multiple niches would be cost-prohibitive. 

Let’s review some potential business ideas (i.e., niches) based on different types of recyclable materials:

Mobile recycling collection

Mobile recycling refers to collecting all manner of mobile phones, from flip phones to smartphones.  An estimated  95% of 18-49 year-olds  owned a smartphone in 2021. Mobile phones are a  growing source of waste  in landfills. Recycling mobile phones can be profitable for you and better for the environment.

Electronics recycling

As a whole, the term  e-waste   loosely refers to business and consumer electronic equipment that’s  no longer functional . Recycling programs that handle e-waste handle everything from computer monitors to microwave ovens. 

As recycling centers evolve to be able to process more of the sheer abundance of discarded electronics, this niche will continue to grow. From 2010 to 2019 alone, global e-waste production nearly doubled, growing from  33.8 to 53.6 million metric tons .

Aluminum recycling

Aluminum is light, durable, and used in many different ways, which is why aluminum is in  high demand for consumer goods . Aluminum is also very abundant. However, it takes a  disproportionate amount  of work and energy to refine and produce new aluminum for manufacturing.

Therefore, despite its availability, a recycling business that allows us to reuse aluminum instead is advantageous for manufacturers (and for recycling business owners).

Appliance recycling

In the recycling market, appliance recycling generally refers to large-scale home appliances like laundry machines, refrigerators, and stoves. 

As living standards and per capita income continue to rise globally, appliances will offer a growing source of recyclable materials. In fact, the global market for appliance recycling will be worth almost  $850 million  by 2025. 

Plastic recycling

As part of the swell in environmentalism and Earth-first thinking in the 70s, consumers learned that most plastics aren’t biodegradable. Though recycling culture blossomed around attempts to curb plastic usage, market demand remains high due to plastic’s low production costs, durability, and versatility. 

In 2018, plastics alone accounted for almost  20% of landfill waste . This means plastics recycling is growing as a business opportunity, especially as current processing methods make them much easier to reuse. Global Industry Analysts, Inc. predicts the plastic recycling market will reach  $47.3 billion  by 2026.

Once you have a sense of which niche fits you best, the process of starting your recycling business can begin.

Start with a business plan

While they don’t sound super exciting, business plans are secret weapons in the small business world. Because a business plan acts as your north star, it will help you  stay on track  while your business gets off the ground. While any form of business plan should work for you, there are basics any plan for a recycling business  needs to cover . These include:

• What types of materials are you going to recycle?
• How will you collect and drop off recyclable material?
• Will the recyclable material of your niche include any hazardous waste?
• Who will buy the recycled product?
• How will you finance your business? 
• How will you keep your business efficient and profitable over time?

A major aspect of creating your business plan should also include how you’ll  cover business costs . Again, depending on your niche, these costs will vary. General costs for a recycling business typically include:

• Access to processing complexes
• Transportation of recyclable materials
• Employees and support staff
• Waste management equipment
• Utilities, solid waste permitting, licenses, etc.

Once your business plan’s complete, you’ll know how much funding you’ll need to secure to start your business. The next step? 

Finding those funds…

Find funding

A truism in business is it takes money to make money. A recycling business is no exception (i.e., you gotta find green to go green). One advantage other industries may not benefit from is the growing support for entrepreneurs contributing to circular economies.

In addition to traditional sources of business funding, federal government grants exist  solely to help business startups .

Take advantage of websites like  Grants.gov  by searching for terms like “recycling” and reviewing which opportunities are currently available. Other levels of government are also worth exploring (especially with the help of sites like the  Database of State Incentives for Renewables & Efficiency ).

But don’t limit your thinking to grants alone.  Other forms of financial assistance  for recycling startups can include  private funding ,  low-interest loans , and  tax incentives .

Purchase equipment

When starting out, one of your first major decisions will involve whether you purchase your initial equipment or rent/lease it. Based on your niche and business plan, it may seem like you’ll start out processing enough recyclable material to justify the purchase of waste management equipment.

Remember, though, that the cost of the equipment itself is only a fraction of the overall cost to you, the business owner. When purchasing, you’ll also be responsible for maintenance, repairs, and the salaries of the people who operate it. As a new recycling business owner, it’s often tough to know how much of which type of equipment you’ll need.

For these reasons, leasing may well be the savvier move for most owners as their business gets off the ground.

Hire a team

During the planning process, it’s also important to  identify which specific roles  you’ll need to fill when starting your recycling business. For example, recycling centers often employ a combination of drivers, sorters, mechanics/technicians, facility managers, recycling coordinators, route managers, and sales reps.

Also certain technologies like route optimization software have  experienced growth  in both demand and performance over the past few years. This means transportation-based business owners (both new and current) are wise to balance  finding the right employees  vs. investing in technology to  meet their operational demands . 

Offer mobile pickup

For some recycling niches, a majority of your business may involve sending drivers on predetermined routes. For electronics and aluminum-focused businesses, offering mobile pickup will appeal to potential customers who need recycling services less frequently, but who do end up with large amounts of recyclable material on ocassion. 

These potentially lucrative opportunities are hard to plan for as a business owner. By offering mobile pickup, you’ll ensure your business benefits from these “one-off” opportunities whenever they present themselves. Don’t forget—by making your mobile pickup service seamless and efficient, you might be impressing future customers. 

Market your business

The potential benefits of mobile pickup also underscore why you need to market your recycling business. Unlike you and your competition, customers aren’t thinking about recycling 24/7. When they do need something recycled, marketing helps ensure the name of your business is top of mind.

Fortunately, marketing doesn’t need to be complicated. Above all else, avoid the temptation to dump money into a  one-size-fits-all approach . Just like a business plan, taking time to plan out who you’re marketing to and how best to do so will pay off long-term. 

As part of your marketing planning, make sure to  map out everything  you know about your main customers in distinct customer profiles. Effective customer profiles give you a sense of which marketing channels your customers look to when they need your services. Then, by focusing on these specific channels, you keep investing your marketing budget in the places your customers are. 

How Bureo’s Making Waves With Their Recycling Business

Studies estimate there are  5 trillion  pieces of plastic afloat in our seas. Discarded fishing nets are one of the most dangerous products contributing to this mess. So,  Bureo’s  made it their business to partner with local communities and fisheries to help collect, clean, and sort fishing nets. Bureo then processes these nets into the patented Netplus™ material. 

This material is then sold for use at major clothing brands like  Patagonia , which creates employment opportunities for local workers and funding for community-based programs.

No matter how perfectly you plan, your customers will literally be all over the place due to the nature of the recycling business. Fortunately, route optimization ensures you’re picking up all recycled materials with the  least amount of stops possible. This capability, among others, can be the difference between boom or bust in the recycling industry. 

Like many transportation-based industries, driver wages and fuel costs can make up  67% of total operational costs  per mile. Planning for and controlling these costs may arguably be the most important thing you can do when starting your recycling business.

Any form of route optimization is better than none. But modern fleet-planning solutions benefit the entire business (not just the owner). For instance,  OptimoRoute  can:

Automatically plan routes Owners can import thousands of orders and let the optimization software plan the ideal route for every driver. Smartphone apps provide order information, navigation, route updates, and the status of orders in real time.

Since OptimoRoute adapts to workflow constraints in real time, the software maximizes orders performed while simultaneously reducing costs.

Assign drivers and schedules Using OptimoRoute, owners can determine ideal shift start times for individual employees, balancing employee schedules with customer expectations.

The software also provides this information in real time, meaning owners can balance workloads throughout the day/week, ensuring no one employee is under—or over—utilized.

Minimize time on the road and save fuel Efficient routing means fewer trucks and drivers needed for day-to-day operations. This boosts profits. Minimizing time on the road also benefits the environment.

Using best-in-class tools like OptimoRoute, some companies have saved up to  20% in mileage  and improved  order capacity by 100% , all without increasing the size of their fleets. 

The Optimized Recycling Business: Your Competitive Advantage in 2022

While there are a lot of factors to consider when starting a recycling business, the ability to optimize your operations is an undeniable advantage. This is why it’s wise to engineer optimization right into the DNA of your business planning.

To help you do exactly that, take a deeper dive into our  automated route planning software  for waste collection businesses.

Try OptimoRoute ™ for Free

No installation or credit card required

Main categories

Make Your Mobile Workforce 43% More Productive. Optimize Driver Routes in Just 7 Minutes.

How to Start a Recycling Business

Importantly, a critical step in starting a recycling business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start a Recycling Business :

• Choose the Name for Your Recycling Business
• Develop Your Recycling Business Plan
• Choose the Legal Structure for Your Recycling Business
• Secure Startup Funding for Your Recycling Business (If Needed)
• Secure a Location for Your Business
• Register Your Recycling Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Recycling Business
• Buy or Lease the Right Recycling Business Equipment
• Develop Your Recycling Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Recycling Business
• Open for Business

1. Choose the Name for Your Recycling Business

The first step to starting a recycling business is to choose your business’ name. This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your recycling business:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your recycling business.

2. Develop Your Recycling Business Plan

One of the most important steps in starting a recycling business is to develop your business plan. The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business. Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your recycling business.
• Company Overview – this section tells the reader about the history of your recycling business and what type of recycling business you operate. For example, are you a recycling collection center, plastic, metal, glass, or a paper recycling business?
• Industry Analysis – here you will document key information about the recycling industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing products or services like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your recycling business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your recycling business make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

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3. choose the legal structure for your recycling business.

Next you need to choose a legal business structure for your recycling business and register it and your business name with the Secretary of State in each state where you operate your business. Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the business owner and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a recycling business together. The partners share in the profits and losses of the business. The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a recycling business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a recycling business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others. Once you register your recycling business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

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4. Secure Startup Funding for Your Recycling Business (If Needed)

In developing your recycling business plan, you might have determined that you need to raise funding to launch your business. If so, the main sources of funding for a recycling business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a recycling company that they believe has high potential for growth.  

5. Secure a Location for Your Business

There are a few things to consider when looking for a location for your recycling business. First, think about the type of recycling company you want to start. Do you want to recycle paper, plastic, metal, or glass? You may have different facility requirements depending on the type of material you’ll be recycling.

Next, you’ll need to consider the size of your operation. How much space do you need for your recycling equipment and materials? Will you be able to expand your business in the future? Finally, you’ll need to think about where your customers are located. You’ll want to choose a location that is convenient and easy for them to access.

When you’ve considered all of these factors, you’ll be able to narrow down your search for a location for your recycling business. Once you’ve found a few potential locations, you can contact the property owners and ask about leasing or purchasing options.  

6. Register Your Recycling Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.  

7. Open a Business Bank Account

It is important to establish a bank account in your recycling business’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your recycling business to help you separate personal and business expenses. You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.  

9. Get the Required Business Licenses and Permits

To start a recycling business, you will need a business license and a permit to operate a recycling center. You may also need a permit to collect recycling materials from businesses and residences. Check with your local business licensing office to determine the specific requirements for your area.  

10. Get Business Insurance for Your Recycling Business

There are various types of insurance necessary to operate a recycling business. Some business insurance policies you should consider for your recycling business include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Auto insurance : If a vehicle is used in your business, this type of insurance will cover if a vehicle is damaged or stolen.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
• Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
• Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.  

11. Buy or Lease the Right Recycling Business Equipment

Depending on the type of recycling business you operate, you may need a variety of equipment. For instance, you will need a recycling truck, a compactor, and a baler. You may also need a shear, shredder, and a conveyor belt. You can purchase these items new or used. Used equipment is usually cheaper but you may have to do more maintenance, which leads to greater ongoing costs. You can find all of these items at your local recycling center or online.  

12. Develop Your Recycling Business Marketing Materials

Marketing materials will be required to attract and retain customers to your recycling business. The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your recycling business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website : Likewise, a professional recycling business website provides potential customers with information about the products and/or services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your recycling business.

13. Purchase and Setup the Software Needed to Run Your Recycling Business

A computer is necessary to manage your business operations. You will need word processing software to create letters and invoices, accounting software to track expenses and income, and a contact management system to keep track of customers and suppliers. There are many different options for each type of software, so be sure to research the best options for your business needs.  

14. Open for Business

You are now ready to open your recycling business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.  

Additional Resources

Recycling Mavericks  

How to Finish Your Ultimate Business Plan in 1 Day!

How to start a recycling business faqs, is it hard to start a recycling business.

There is no one-size-fits-all answer to this question, as the difficulty of starting a recycling business will vary depending on factors such as the location of the business, the amount of competition in the area, and the type of recycling services offered. However, with a solid business plan and good marketing strategy, it is definitely possible to start a successful recycling business.

How can I start a recycling business with no experience?

There are a few ways to start a recycling business with no experience. You can start by becoming familiar with the recycling process and learning about the different types of recycling. You may also want to network with other business owners and get advice from them. Finally, you can attend trade shows and events related to recycling to learn more about the industry.

What type of recycling business is most profitable?

There is no definitive answer to this question as it largely depends on the specifics of the recycling business. However, certain types of recycling companies may be more profitable than others. For example, a recycling business that specializes in collecting and recycling metals may be more profitable than a business that specializes in collecting and recycling plastic. Additionally, a recycling business that processes and recycles materials on-site may be more profitable than a business that requires materials to be shipped off-site for processing. Ultimately, the most profitable recycling businesses are those that are able to generate the most revenue while incurring the least amount of expenses.

How much does it cost to start a recycling business?

It typically costs around $10,000 to start a recycling business. There are a few things you'll need to get started, such as a vehicle to transport the materials, recycling bins, and advertising. You'll also need to pay for a business license and zoning permit from your local government.

What are the ongoing expenses for a recycling business?

A recycling business usually incurs ongoing expenses for transportation, labor, and supplies. The cost of transportation may vary depending on the distance involved. Labor costs will also depend on how many workers are needed and how long they work. The cost of supplies will include things like bags, gloves, and sorting equipment.

How does a recycling business make money?

A recycling business can make money in a few ways. One way is by charging customers for the service of recycling their materials. Another way is by selling the recycled materials to companies that need them. Recycling businesses can also make money by getting grants from local or state governments.

Is owning a recycling business profitable?

There are a number of reasons recycling can be a profitable business . 

First, there is a rising demand for recycled materials. Companies are increasingly environmentally conscious and look for new ways to reduce their carbon footprint. 

Second, recyclers can charge to collect materials and then sell recycled materials for a profit. Recyclable materials are often preferred by commercial customers because they can be more sustainable and require less energy and money to process than raw materials. 

Finally, the recycling industry is becoming increasingly automated. There is less labor required to operate a recycling business. As a result, recycling businesses are becoming more cost-effective.

All of these factors together make owning a recycling business a lucrative venture. If you are looking to start a business that is both profitable and environmentally friendly, then a recycling business may be the perfect option for you.

Why do recycling businesses fail?

There can be a few reasons why most recycling businesses fail. Recycling businesses can fail if they are not able to effectively collect and process materials, or if they are unable to find buyers for their recycled products. Additionally, recycling businesses can be unsuccessful if they are not financially well-managed and operated. While there are many reasons recycling businesses can fail, there are also many ways to overcome these challenges and create a successful recycling operation.

Other Helpful Business Plan Articles & Templates

How to Start a Recycling Business? – 11 Steps to Get the Desired Start

• Last Updated: January 18, 2023

• It takes careful planning and research to start a recycling business.
• It’s crucial to decide which type of recycling business you want to start.
• A thorough business strategy will assist you in obtaining funding and attracting clients.
• For businesses in the recycling sector to succeed, it is essential to have strong networks of suppliers and buyers.

The recycling business is considered the “economic engine,” which generates more than 500,000 jobs in the USA alone and is only expected to grow daily. The recycling industry is forecasted to be at a market value of 88.1 billion USD by 2030 .

A market of such enormous size and its future safe will surely offer brilliant business opportunities. Moreover, with the size of waste increasing exponentially, even the governments want more and more business establishments in recycling management.

Multiple horizons can be explored in the recycling business. Paper, plastic, metal, and rubber recycling are some of the most fruitful options. To pursue the goal of operating a recycling business, be sure that you go through the article on how to start a recycling business and understand the basics of it. 

Table of Content

Current Trends in the Recycling Industry

11 effective steps to start a recycling business.

Let’s look at some of the latest recycling trends to know , which will be helpful for working in the industry of recycling and waste management.

• The global waste recycling services market was worth 55.1 billion US dollars in 2020 and is valued at 60.41 billion US dollars in 2022. The market is expected to expand significantly in the coming years as consumer awareness of the environmental consequences of waste grows. The global recycling services market is expected to reach nearly 90 billion US dollars by 2028 , growing at a CAGR of 4.8% between 2022 and 2030.
• The Asia-Pacific market is expected to expand rapidly during the forecast period due to increased demand for recycled plastics as a sustainable solution to plastic waste, with a wide range of applications, including bottles, sheets, fiber, and strapping.
• Major clothing companies, businesses, and environmental organizations have begun using plastics in their fabrics to reduce plastic pollution. In terms of quality and texture, recycled plastic clothing is identical to conventional clothing. As a result, the use of these plastics in textiles is rapidly increasing.

A successful recycling business will necessitate extensive market research and implementation. But, to make things easier for you, here are the 11 effective steps to starting a recycling business.

1. Research the industry

Conduct market research to determine who your competitors are, how successful they are, and whether your area has enough volume to support another recycling business. Are there any materials that the current recycling companies are ignoring? Make sure your research assists you in selecting both profitable materials and a competitive niche.

Once you’ve decided which materials your company should recycle, look into the local government and environmental protection agency. These agencies offer grants and special loans that can cover the processing costs, costs of your facility, staff, electricity, equipment, transportation, storage, handling of materials, and other expenses.

The basic start-up costs for a recycling business can be high in the first month, considering the low-interest loans provided by the government. Also, the incentives typically vary from one to another, so make sure to research the state where you intend to operate your recycling business.

2. Determine the associated costs

Once you have chosen your niche, you must create a budget to fund all associated operations. The budget should account for the costs of obtaining the necessary licenses and permits, a location to store and recycle the materials, pay for any employees you hire, equipment and tools needed for the recycling process, cash for the recyclables, and vehicles.

For instance, recycling at a facility a little outside of town will also help you save money because real estate costs fall as you get farther from a city center.

3. Create a business plan

After all the research you have done, it’s time to create a recycling business plan , which is a formal document outlining how you will develop and operate your business. 

It will help you stay focused as you move forward with the creation of your company and will also give potential lenders the information they need to judge the viability of your project. A thorough section on each of the following subjects needs to be included in your business plan:

• Your company’s goals
• What type of materials would you recycle?
• How is your business unique from its competition
• How your business will be managed and structured
• How will you process materials and sell products
• Understanding the profit margin in a recycling business
• How much money will you need, what will you need it for, and how much will you need to borrow

4. Choose a business structure 

Choose a good business name. The name should be straightforward to read and say. Once you register your recycling business names ideas , it’s time to define the business structure. Some requirements behind registering your business are paying taxes, raising funds, and opening a bank account.

Making a business structure will define your role within the organization, which is the next step. You could opt for either sole proprietorship, partnership, limited liability company, or S corporation.

5. Get licenses and permits

The recycling sector requires several licenses. You will need to apply for several permits before you can start your smoothly-operating recycling business. The following are some instances of common licenses and permits needed:

• Employer Identification Number (EIN)
• Business license for operations
• Environmental department’s permission
• Business license to collect material

6. Look for a facility

The next step is deciding where to start your recycling business. You must buy or rent a building to store, process, or sell recyclable materials. Choose a spot close to any landfills or waste management facilities but far away from residential areas. 

Irrespective of people dropping the waste at drop-off units or you decide to do pick-ups, you must have a facility drop-off to carry out the actual process of recycling.

You need to verify with your city’s zoning commission, planning, and development department, or building division regarding the zoning rules for that area. This will help you save on transportation costs while also allowing you to network with relevant authorities frequently and effectively.

7. Get the right equipment

Your business’s success depends on the tools you use. Here’s a list of some of the tools you’ll need:

The equipment will make up most of your initial recycling start-up costs, so do your homework and speak with business experts to identify the long-lasting, high-performing recycling equipment to purchase.

8. Get insurance for your business

Business insurance is an area that is frequently overlooked, even though it can be critical to your success as an entrepreneur. Insurance protects you from unanticipated events that can be disastrous to your business.

Here are some insurance options you can consider:

• General liability
• Equipment breakdown insurance
• Business property
• Professional liability

9. Hire a team of professionals

The next step is to assemble a team and recruit a few experts to manage the work. You will need employees to manage the register and assist customers in loading their purchases if you want to run a secondhand store. 

When collecting recyclables, employees must drive the vehicles and lift large, heavy objects. You will need a separate processing facility to operate your equipment if you are processing recyclables. In addition, consider hiring individuals to help with bookkeeping and marketing tasks.

10. Promote your recycling business

For new recycling businesses, word-of-mouth promotion is essential because it will raise client and brand awareness. You should invest in a quality website because it serves as your online presence and convince prospective clients.

Once your website is up and running, connect your social media accounts. It’s an excellent tool for business promotion because you can use social media to create engaging posts that advertise your business.

Facebook is a great platform for paid advertising because it lets you target particular demographics. Also, SEO will assist in moving your website up in relevant search results, which is essential for boosting sales. Make sure your website is optimized for calls to action. Try different combinations of text, color, size, and placement for calls to action like “Recycle Now.” Your collection of recyclable materials could significantly increase as a result.

11. Integrate a route planning software

Route planning software comes as a lifesaver for a new business. Recycling companies require heavy commercial vehicles to pick up and take them to the drop-off centers for recycling. Without proper experience or tools, this job can be a demanding one. When starting a new business, you may have to devote your time and resources to multiple tasks.

Don’t make your job tougher. Make sure that you use an intelligent and effective tool, like Upper, that will help plan an optimized route and utilize the available resources to the best of their limits.

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Some of the recycling business ideas are:

• Plastic recycling business
• Paper recycling business
• Scrap metal recycling business
• Computer recycling business
• Glass recycling business
• Aluminum can recycling

Steel and aluminium are the types of materials most recycled in North America. Aluminium cans are the simplest items to recycle because they are 100% recyclable. Using used aluminium cans to make new ones uses 95% less energy than creating an aluminium can from scratch.

Here are the top recycling companies:

• Waste Management(WM)
• Republic Services(RSG)
• Waste Connections(WCN)
• Clean Harbors(CLH)

Here is an estimate of how much money you could make per ton of materials:

• Cardboard: $25
• Paper: $2.50
• PET plastic: $150
• Aluminum: $1,325

Let’s say you recycle 15 tons of waste daily, five days a week, earning nearly $300,000 per year in your first year or two. Assuming a 40% profit margin, this equates to a recycling profit of around $120,000. Your capacity may increase to 30 tons per day as your brand grows in popularity, and your operating hours may be extended to six days per week.

There are many types of recycling businesses, and each one has a different level of profitability, but companies recycling paper are the most profitable.

If you are looking to start a recycling business, you will need a proper business model and a good legal and financial understanding to stand out from the competitors. It is not easy to set up any new business, but surely with the right knowledge, market study, hard work, and effective tools, the job can get much easier. 

As the market demand grows, so does the need for raw materials and recycling centers. A recycling business can supply raw materials, refurbished and recycled goods or can even create new products from recycled materials. The options are truly limitless. Hence, this entire article will help you to work on your business idea and turn it into a profitable recycling business.

Rakesh Patel, author of two defining books on reverse geotagging, is a trusted authority in routing and logistics. His innovative solutions at Upper Route Planner have simplified logistics for businesses across the board. A thought leader in the field, Rakesh's insights are shaping the future of modern-day logistics, making him your go-to expert for all things route optimization. Read more.

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Recycling Business Plan Template & Guidebook

Starting a successful recycling business requires thoughtful planning and research. Whether you are looking to create a small-scale operation or launch a full-scale business, having the right plan in place is essential for success. The #1 Recycling Business Plan Template & Guidebook is designed to help entrepreneurs craft a comprehensive and easy-to-follow business plan from start to finish. With this template, recyclers will be able to refine their ideas, outline objectives and goals, determine their competitive advantages, and more.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Recycling Business [11 Steps]
• 10+ Best & Profitable Recycling Business Ideas [2023]
• 25 Catchy Recycling Business Names:
• List of the Best Marketing Ideas For Your Recycling Business:

How to Write a Recycling Business Plan in 7 Steps:

1. describe the purpose of your recycling business..

The first step to writing your business plan is to describe the purpose of your recycling business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a recycling business:

Our mission is to champion recycling initiatives that promote sustainability and reduce environmental impact. We aim to be a leader in the recycling industry, creating innovative solutions that increase efficiency and reduce waste, while educating our customers on the importance of sustainability for our planet.

2. Products & Services Offered by Your Recycling Business.

The next step is to outline your products and services for your recycling business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your recycling business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your recycling business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your recycling business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a recycling business?

• Recycling sorting equipment
• Carts, bins, or dumpsters for collecting recyclables
• trucks for collecting and transporting recyclables
• packaging materials and supplies
• Any necessary licenses or permits required to operate legally

5. Management & Organization of Your Recycling Business.

The second part of your recycling business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your recycling business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Recycling Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a recycling business varies based on many different variables, but below are a few different types of startup costs for a recycling business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your recycling business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your recycling business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your recycling business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Recycling Business Plans:

Why do you need a business plan for a recycling business.

A business plan is an important document that outlines the goals, strategies and implementation of a business. A business plan for a recycling business will provide direction and structure to the business, enabling it to stay on track as it grows and develops. It can highlight potential areas of growth, as well as identify any potential risks or challenges that may arise along the way. Additionally, potential investors can use the business plan to understand the viability of the recycling business, and decide whether or not to invest in it. Ultimately, a well-crafted business plan is essential for any successful recycling business.

Who should you ask for help with your recycling business plan?

You could ask a local recycling facility or a business professional with experience in creating business plans. You might also want to contact your local Small Business Association (SBA) and ask for guidance on developing a business plan.

Can you write a recycling business plan yourself?

Yes, it is possible to write a recycling business plan yourself. Writing a business plan is time-consuming and requires research, financial analysis, and creative thinking. To get started, you should identify your goals, assess the market potential, create a marketing strategy, estimate startup costs, and develop an operational plan. You then need to review the legal aspects of starting a recycling business and create financial projections for your company. Finally, you should review your business plan with experts or experienced entrepreneurs before launching your recycling business.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

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How to Start a Recycling Business in 5 Simple Steps

If you have a passion for saving the planet and a drive to make some green while going green, getting into the business of recycling may be the right route for you to take. 

However, starting a recycling business is not as easy as placing some bins around your city and collecting what people drop in them every week. 

There is much more that goes into this type of work. If you’re considering starting a recycling business but don’t know where to begin, we are here to help. 

Because though it seems simple, you need to make sure that this business is profitable enough to be worth your while, determine what you need to get things started, and prepare for some challenges that you may face along the way. 

Read on to find out what you need to know to start your recycling business today.

5 Steps to Start a Recycling Business

Starting a recycling business is easy when you break it down into attainable steps. Follow these instructions to get started:

• Research the industry
• Determine the costs involved
• Register the business
• Find a facility
• Get equipment

The Easy Parts of Starting a Recycling Business

Not all of the recycling business has to be difficult. 

In fact, there are some fun parts of it that you will enjoy, aside from helping the environment, of course. 

Here are a couple of easy decisions that you want to get started thinking about. 

Choosing What You Want To R ecycle

When many people think of the term “recycling,” they often refer to it as a general term that encompasses all sorts of waste and materials. 

But, when you’re on the inside and working in the industry of recycling, you learn that things get much more specific. 

The specifics start with deciding what kind of materials you want to recycle. You may opt to do just one of these, or you may want to attack recycling multiple. 

Here are the most popular types of waste and materials to recycle. 

• Food Waste. You would be amazed at the amount of food that gets wasted in the United States every year. According to Nutrition Connect, in 2020, 80 billion pounds of food was thrown away . Think about the difference you can make if you find a way to recycle that!
• Glass. This is a fairly easy material to recycle, as it can easily be melted and made into all sorts of things that people use in their daily lives, including drinking glasses. 
• Plastic. Plastic is the most common type of recycling that exists today and is something that our country uses a great deal of. So instead of having it end up in landfills, you can work to recycle it. 
• Paper. Recycling paper is, for the most part, very easy. You simply have to sort the paper into different types, remove the ink, bleach the paper, and make it into something new. This form of recycling tends to be more profitable since the costs are minimal. 
• Ink Cartridges. Did you know that ink cartridges take up to 1000 years to decompose ? We don’t want to dump our current problems on future generations so it’s important to get started on recycling this material today. You may want to consider a recycling business that allows people to refill their ink cartridges, which saves not only the environment but also money for the consumer. Ink cartridges are not cheap.  
• Batteries. Batteries are filled with all sorts of chemicals, many of which are harmful to the environment. That’s why they should be recycled rather than thrown away. 
• Computers. The materials that computers are made of typically consist of plastic and metal, which can both be recycled. Consider taking apart computers and recycling their materials.
• Tires. Tires take a long time to decompose and burning them creates a lot of pollution due to their high rubber content. Instead, consider recycling tires by melting them and molding them into new materials.
• Clothing. Second-hand clothing is making a big comeback, so you may want to consider jumping on this bandwagon. You can either re-sell used clothing or recycle clothing to be used in manufacturing new items. 
• Scrap Metal. The costs of this type of recycling business are low and only require a few tools.  

Deciding How To Collect The Waste M aterial

There are a few different ways that you can opt to collect the recycled materials that you plan to work with. 

• Facility Drop-Off. With this method, you can have a facility that people can bring their recycled materials to where you sort them.
• Curbside Pick-Up. This method means you have a team that collects recycled materials from peoples’ homes and businesses on a regular basis.
• Drop-Off Centers. You can opt to set up drop-off centers throughout a city and have your team collect from them regularly.

The Difficult Parts of Starting a Recycling Business

Unfortunately running a recycling business is not all fun and games, and sometimes the going gets tough. 

But, as a business owner, the tough get going, and to help you stay on the path of success with your recycling business, we are sharing some of the difficult parts that you want to prepare for. 

Determining Profitabili ity

Before you get too deep into your business ideas, you want to make sure that the recycling industry is profitable for you. 

This means understanding what equipment you need (which varies depending on the type of recycling you opt to get into). 

You also want to make sure to price the costs of processes such as: 

• Delivering recyclables 

The profitability of this business is also determined by how much processing costs, which depends on the material you’re recycling. 

It is important to keep in mind that products that have heavy energy requirements tend to have a greater recycling profit. However, you don’t want to go too far, as some products that require excessive energy to recycle will result in lower profits. It’s all about finding that happy medium.

Creating A Business P lan

This is a step you want to take before you dive into starting the business. 

You need to take the time to have theoretical discussions about the business and document what you find. You also need to research (which we discuss in more detail below) to find actual numbers to use in your business plan. 

You can either opt to write the business plan yourself or hire a professional consultant to do it for you. The choice is yours (but should be determined by how much time you have to spend, and how much experience you have in business plans). 

Determining Your B uyers

Once you have recycled the materials, what will you do with them? 

Make sure that you do your research to find out which industries have a demand for the materials that you’re planning to recycle and look into how much buyers will pay for your recyclables in a variety of forms.

Step 1: Research the Industry

The recycling industry should be heavily researched before moving forward with your business ideas.

You need to take the time to evaluate the market and see where things are. Here are the two most important parts of research.

Look at Competition

Do market research to determine who your competition is, how successful they are, and whether there is enough volume in your area to support another recycling business (yours). 

Is your competition only recycling paper so that means you can jump on other materials that they are ignoring? Take a look at what niche is best for you to compete in that allows you to be profitable.

Also, be aware that some cities and counties provide their own recycling services. If you live in one of these, you may need to get creative to compete with city hall. 

Look into Government and Environmental Agency Incentives

Government and other environmental agencies often offer grants or special loans that can help you with costs including your facility, staff, electricity, equipment, transportation, storage, handling of materials, and more. 

Because the start-up costs for a recycling business can be high in the first month, you may want to consider the government’s low-rate loans. 

The incentives offered usually vary from state to state so be sure to research the state in which you plan to run your recycling business.

Step 2: Determine the Costs Involved

The costs involved in your recycling business are determined first by the type of business you opt to have. 

This includes the type of materials that you choose to recycle as well as the type of recycling system you have. 

Having people drop things off at a facility or setting up drop-off stations throughout the city will usually come at a lower cost than a curbside pick-up. This is mainly because with curbside pick-up, you need to have more workers to get the job done. 

Recycling in a facility that is a bit outside of town is also going to lower your costs since real estate is cheaper as you get further away from a city center. However, this can be an issue with ensuring that people come to your facility to drop off their recyclables. You will need to weigh the pros/cons of this. 

Here are some general costs for starting your recycling business: 

• Processing facility (ranges depending on your city, but usually starting at around $1500/month and going up from there)
• Drop-off units (around $1000 each)
• Employees (at least minimum wage, maybe more)
• Equipment (between $5,000 – $10,000 to start)
• Utilities for running your facility
• Transportation
• Recycling bins

Step 3: Register The Business

Before you begin any operations with your recycling business, you need to register the business with your local government. 

Because this will take a lot of time for a business such as this, you may want to consider hiring a lawyer to help with this process.

Find someone who has a great deal of experience in registering businesses similar to recycling and that can get the paperwork done correctly and on time so that you can get things started as soon as possible.

Step 4: Find a Facility

Whether you opt to have people drop off their recyclables at your facility or you choose to do pick-ups, you need a facility to perform the actual process of recycling. 

So, the next step in the process is finding a facility. 

You need a place that is large enough for you to store all of your equipment and that also can serve as an office for you and your employees. 

Thus, you must take the time to find a facility that serves all the purposes you need it to for your recycling business. Because of the high costs of a facility like this, as mentioned above, you may have to go a bit outside of the city to find something that is a reasonable price.

And once you do, it is advised that you either rent or lease the space rather than purchase it. This helps to keep your spending low, as a large portion of your money will be going towards equipment to use in the facility.

Step 5: Get Equipment

Speaking of equipment, that brings us to the next step of actually investing in equipment for your recycling business.

The success of your business relies greatly upon the equipment that you use. Here is some of the equipment you will want and need: 

• Containers 

The equipment will be the bulk of your spending when you start the business so make sure that you take the time to research and talk to experts so that you invest in the best machinery.

Privacy Overview

How to Start a Recycling Business: A Step-by-Step Guide

Are you passionate about the environment and want to do your part in preserving it?

Are you looking for a business opportunity that is both profitable and sustainable ? If so, starting a recycling business may be the perfect venture for you!

This step-by-step guide will walk you through everything you need to know to get your recycling business up and running. Let’s get started!

Steps to Starting a Recycling Business

Starting a recycling business is no small feat, but it can be incredibly rewarding. It can help to reduce waste, conserve natural resources, and create jobs in the community.

However, before getting started, it is important to understand the project’s scope and plan ahead of time to ensure success.

There are many steps and considerations that must be taken to build a successful business, such as:

• Determine Your Target Market
• Develop Your Business Plan
• Choose Your Business Name
• Test Your Hypothesis with a Minimum Viable Product
• Register Your Business & Choose Your Business Structure
• Raise Funding
• Apply for Permits
• Open a Business Bank Account
• Get Business Insurance
• Get Your Own Facility & Equipment

Let’s take a closer look at each step in greater detail!

Step 1: Determine Your Target Market

The first and perhaps most important step to starting a recycling business is determining your target market. Before beginning any other aspect of the business, it is essential to consider who your customers will be, what they need, and what makes them unique.

It’s also important to think about where they’re located, how many potential customers there are in that market, and the competition you may face in the area.

Step 2: Develop Your Business Plan

Once you have identified your target market, it is time to develop a  business plan . This plan will serve as the road map for successfully launching and managing the recycling company.

A business plan should include the following sections: 

• Executive Summary  – a concise overview of the business’s purpose, structure, and goals.
• Company Description  – details all information about the company.
• Market Analysis  – identifies and analyses potential customers of the business based on demographics, trends, and purchasing habits.
• Organizational Structure  – outlines who is responsible for marketing, finance, and customer service operations.
• Operational plan  – details how the business will function on a day-to-day basis.
• Financial Plan  – estimates expenses associated with setting up and running the business.
• Appendices  – includes any additional documents that might support or provide further explanation about different sections in the business plan.

A well-thought-out business plan helps companies stay organized while keeping track of progress toward achieving goals, raising capital, and expanding operations. A key component of any successful plan is to set realistic financial targets that reflect both short-term and long-term sustainability.

Understanding each part of the process makes it easier to craft an effective plan that brings clarity to potential investors while guiding growth strategies.

Step 3: Choose Your Business Name

Choosing a business name is an important step in starting a recycling business. You want your name to be memorable and meaningful while at the same time conveying the fact that you are an  environmentally friendly  and responsible business.

Once you have narrowed down your list of potential business names, consider researching to find out if they are available in your area and online. If another company is already using the name you want to use, look for something else instead.

On the other hand, if it isn’t already being used, you’ll need to  register  it with the appropriate regulatory body so that no one else can use it before you do.

Additionally, remember that trademarking your business name may be necessary depending on the scope of your operations and how widely recognized you plan to become in the industry.

Step 4: Test Your Hypothesis with a Minimum Viable Product

The fourth step to starting a recycling business is to test your hypothesis with a  minimum viable product . This step involves creating a small-scale version of your proposed product or service and seeing if it works as desired in the real world.

Testing your hypothesis with a minimum viable product requires careful planning and research and an understanding of the market you are entering. You will need to identify the target audience and determine what your customers would be willing to pay for such a product or service and if there is room in the market for your specific idea.

It is also important to consider any potential costs associated with testing this hypothesis, such as advertising, development fees, or other related expenses. Additionally, you will need to carefully analyze public opinion on the subject matter and assess whether people are generally interested in something like this.

Step 5: Register Your Business & Choose Your Business Structure

Once you are confident that your recycling business is viable, the next step is registering your business and choosing the desired business structure.

Registering your business typically requires filing paperwork with the federal government and at the state or local level, depending on where your business is located. However, you may be required to obtain certain licenses or permits to operate legally in various areas.

Additionally, the structure you choose will depend on how much risk you’re willing to take, how many people are involved in the venture, and how much money you plan to invest.

Some popular choices for  business structure  include the following:

• Corporation
• Partnership
• Sole Proprietorship
• Limited Liability Company (LLC)

Each has its benefits and drawbacks depending on your organization’s operations’ size, nature, and complexity.

Although, it’s important to research each option thoroughly and consult an experienced business lawyer or accountant to ensure you are selecting the best structure for your company.

Step 6: Raise Funding

Raising the necessary funding is a critical step to starting a recycling business. It requires comprehensive research, creative problem-solving, and a willingness to ask for help.

Before seeking funds, potential entrepreneurs should create a detailed budget of start-up costs and operational expenses that considers both short-term and long-term needs.

Here are some available options for small businesses seeking funding:

• Government Grants

Once funding has been secured, it’s important to use it wisely by creating a detailed budget and allocating resources accordingly to enable the business to be successful in the long term.

Step 7: Apply For Permits

To begin a successful recycling business, applying for the right permits and licenses is essential. When applying for these permits and licenses, it is important to be mindful of any local regulations and laws that may affect the operation of the business.

It is also possible to receive assistance in obtaining necessary licenses from local economic development offices. Additionally, to ensure all paperwork is filled out correctly and submitted promptly, consulting with an attorney specializing in small business law can sometimes be helpful.

Step 8: Open a Business Bank Account

The next step in the process of starting a recycling business is to open a bank account for the business.

This bank account will enable owners to keep track of all expenses , as well as income and investments, which can help them stay organized and make informed decisions about how to best utilize funds.

When opening a business bank account, choose a financial institution with strong customer service and competitive interest rates and fees.

It’s also important to understand all the fees associated with having a business bank account before opening one to ensure that the right type of account is chosen.

Step 9: Get Business Insurance

Getting business insurance is another essential step to starting a recycling business. It can help protect against losses related to property, liability, and other forms of damage or legal action.

The costs associated with business insurance vary depending on the amount and types of coverage chosen. In some cases, premiums are paid monthly, while more extensive plans may require an annual fee.

For businesses that want to obtain proper coverage , it is important to speak with a reliable insurer who understands the unique needs of recycling businesses. They will be able to explain each type of coverage and assist in selecting policies that fit all requirements.

Step 10: Get Your Own Facility & Equipment

The final step to starting a recycling business is getting a facility and equipment of your own. This step is important to choose the right location for your business.

It’s important to consider factors such as the proximity of potential customers, access to suppliers, and the ability to use any existing infrastructure when selecting a space for your recycling facility.

Once you have determined an ideal location, it’s time to select the type of equipment that will best suit your needs.

This could include equipment such as:

• Conveyor Belts
• Sorting Systems
• Self-Dumping Hoppers

Additionally, it’s important to ensure that all equipment meets safety regulations and applicable environmental standards to protect employees and ensure compliance with local laws and regulations.

What are the Pros and Cons of Starting a Recycling Business?

Starting a recycling business can be both an exciting and daunting prospect. On the one hand, there are numerous potential benefits to this kind of endeavor.

For example, a recycling business has the potential to create a positive environmental impact through the reduction of waste materials that would otherwise end up in landfills.

On the other hand, starting a recycling business requires careful planning and preparation to ensure success. There are also some risks associated with starting a recycling business.

Additionally, depending on how large your operations are, you could face hefty waste management and disposal regulations, which can take some time to navigate.

Executive Wrap Up

Starting a recycling business can seem daunting, but it’s an exciting opportunity for financial success while helping to make the world a better place. You can successfully start your own recycling business by carefully following these steps.

With hard work and dedication to customer service and waste management regulations, this type of endeavor can be personally and financially rewarding.

Are you thinking of starting a recycling business? Do you have any questions about how to start a recycling business? Let us know in the comments below!

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How to Start a Recycling Business

Last Updated: December 7, 2023 Approved

This article was co-authored by Madison Boehm . Madison Boehm is a Business Advisor and the Co-Founder of Jaxson Maximus, a men’s salon and custom clothiers based in southern Florida. She specializes in business development, operations, and finance. Additionally, she has experience in the salon, clothing, and retail sectors. Madison holds a BBA in Entrepreneurship and Marketing from The University of Houston. There are 16 references cited in this article, which can be found at the bottom of the page. wikiHow marks an article as reader-approved once it receives enough positive feedback. This article received 23 testimonials and 85% of readers who voted found it helpful, earning it our reader-approved status. This article has been viewed 419,719 times.

A successful recycling business is a venture that allows you to make a profit while helping the environment. It is, however, a large undertaking, and you'll face serious competition. By making a detailed plan, locking in financing, understanding the legal requirements, and using good business sense, you can get your recycling business up and running.

Planning for Success

• Market research will be absolutely essential! You must investigate what recycling businesses already exist in your area, where you will be able to sell materials and for how much, and how much volume exists in your area.
• There are many different types of recycling businesses. You could choose to collect and resell household items like furniture and working appliances, collect materials like paper and glass to sell to processing facilities, collect and process recyclable materials into new products, or collect items that are difficult for consumers to get rid of, like broken electronics, and process them to remove the recyclable components.
• Keep in mind that the commodities market is volatile, which means your profit margins can change very quickly. Depending on the current market conditions, the going rate for materials like metal and paper can change dramatically, which will have a big impact on your bottom line. [2] X Research source

• Vehicles to haul recyclables
• A space to store and/or sell recyclables
• Wages for employees
• Machinery to process recyclables
• Money to pay people for their recyclables

• Your company's goals
• What products/services you offer and who your target market will be
• How your business will be structured and managed
• How you will process materials and/or sell products
• How much money you will need, what you will need it for, and how much you will need to borrow
• What will make your business unique from its competition
• Market analysis, including how much competition you will have and how much demand there is for your services
• How much money you expect to make
• How you will market your business

• The Small Business Administration is a great resource for startup companies in the United States.
• Check with the Environmental Protection Agency's Jobs Through Recycling Program to see if they can offer you financial assistance.
• You may be able to get a loan from your state. Florida, for example, offers special reduced rate loans to entrepreneurs who can increase the state's recycling capacity.
• The Sustainable Jobs Fund may also be able to offer you assistance if your business will provide jobs in an economically distressed neighborhood.
• You may qualify for a loan from the Business and Industry Guaranteed Loan Program if your business is in a rural area.

Navigating the Legal Obstacles

• Once you decide which business structure is right for you, contact your state's Secretary of State office to find out what you need to do to apply. The process varies from state to state. [7] X Research source
• Each business type requires the submission of different forms. You may want to hire an attorney to help, especially if you are forming a corporation. [8] X Research source
• It's a good idea to consult with an attorney and/or CPA if you are unsure which business structure is right for you,
• Make sure to put some thought into your business's name before you file any forms. It needs to be distinguishable from all other businesses registered in your state. You can check with your state's office to find out if the name is available, and with the U.S. Patent and Trademark Office to make sure your desired name has not been trademarked by another business. [9] X Research source

• Applying for an EIN is easy on the IRS's website. You can also submit the application by mail or fax, or even apply over the phone by calling 267-941-1099 (for international applicants only).

• If you are handling any hazardous materials, such as mercury from electronics, you will need to comply with all state and federal environmental protection laws. [12] X Research source
• Depending on your location and the nature of your recycling business, you may need special permits for environmental concerns like air emissions and waste water. [13] X Research source
• In some states, you will be required to apply for an annual permit and report all of your recovered materials to the Department of Environmental Protection. [14] X Research source
• Check with your state's Department of Transportation to find out what the requirements are for registering your commercial vehicles and whether or not you need any additional permits for your vehicles. [15] X Research source

Operating Your Business

• Consider zoning restrictions. If you plan on having a physical location where you store or process recycling materials, you will need to make sure that your building is properly zoned for this kind of business. Although it might be ideal to have a central location near the city, residents and/or planning boards are likely to object to having a recycling business near residential areas. [16] X Research source
• Contact your city's zoning commission, planning and development department, or building department for more information about the zoning restrictions in your area.
• If you need customers to come to your location, either to purchase items or to drop them off, you need to make sure it is a convenient place for people to come. It should be as centrally located as possible and have plenty of parking. You also need to make sure the building is clearly marked so people can find you easily.

• Remember that when marketing your business you need to focus on the value that you will be providing to your customer, whether it's top dollar for their materials or the most convenient way to dispose of them. [17] X Research source
• If you will be reselling goods, keep in mind that some of your customers will be consumers who support the green lifestyle and are drawn in by your advertising, while others may just be looking to purchase used products that are in good condition to save money. It is a good idea to advertise to both of these types of customers.

• Certain types of recycling businesses, such as those that deal with used electronics, are routinely inspected by the Occupational Safety and Health Administration (OSHA) to ensure that employees are using the correct equipment and handling procedures. [20] X Research source
• You also need to make sure to meet your obligations for paying both federal and state taxes. Be sure to keep detailed books for tax purposes. [21] X Trustworthy Source U.S. Small Business Administration U.S. government agency focused on supporting small businesses Go to source

Expert Q&A

• When your recycling business is doing well, consider expanding. Common methods of growing a recycling business are increasing the number of materials you accept or building your own processing facility. [22] X Research source Thanks Helpful 0 Not Helpful 0

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• ↑ http://startups.co.uk/how-to-start-a-waste-and-recycling-business/2/
• ↑ http://www.forbes.com/sites/michaelkanellos/2013/11/12/profits-become-elusive-in-recycling/#681bcbb94b5b
• ↑ http://startups.co.uk/how-to-start-a-waste-and-recycling-business/4/
• ↑ https://www.sba.gov/writing-business-plan
• ↑ http://www.dep.state.fl.us/waste/categories/recycling/pages/loan.htm
• ↑ https://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business/choose-your-business-stru
• ↑ http://www.entrepreneur.com/article/77730
• ↑ http://www.nolo.com/legal-encyclopedia/choosing-business-name-faq-29077-3.html
• ↑ https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
• ↑ http://www.bizfilings.com/states.aspx
• ↑ http://www.recyclingsecrets.com/starting-electronics-recycling.htm
• ↑ http://www.dep.state.fl.us/waste/categories/recycling/pages/rmdealercert.htm
• ↑ http://www.dol.wa.gov/vehicleregistration/commercialvehicles.html
• ↑ http://startups.co.uk/how-to-start-a-waste-and-recycling-business/5/
• ↑ http://www.gaebler.com/How-to-Start-a-Metal-Recycling-Business.htm
• ↑ https://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business/establishing-business/taxes

About This Article

To start a recycling business, start by finding out what materials are already being recycled in your local area. For example, if your town already picks up paper and glass, you might want to start a business recycling large wooden furniture or broken electronics. Additionally, figure out where you can sell the material you want to recycle, and how much you can make from it, to make sure your business can be profitable. Then, determine how much money you’ll need to start your business so you can start looking for loans or investors. For more information, including how to take the appropriate legal steps to start your business, keep reading! Did this summary help you? Yes No

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Plastics Recycling Business Plan Template

Download this free plastics recycling business plan template, with pre-filled examples, to create your own plan..

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A complete business plan.

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Follow these tips to quickly develop a working business plan from this sample.

1. Don't worry about finding an exact match

We have over 550 sample business plan templates . So, make sure the plan is a close match, but don't get hung up on the details.

Your business is unique and will differ from any example or template you come across. So, use this example as a starting point and customize it to your needs.

2. Remember it's just an example

Our sample business plans are examples of what one business owner did. That doesn't make them perfect or require you to cram your business idea to fit the plan structure.

Use the information, financials, and formatting for inspiration. It will speed up and guide the plan writing process.

3. Know why you're writing a business plan

To create a plan that fits your needs , you need to know what you intend to do with it.

Are you planning to use your plan to apply for a loan or pitch to investors? Then it's worth following the format from your chosen sample plan to ensure you cover all necessary information.

But, if you don't plan to share your plan with anyone outside of your business—you likely don't need everything.

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What will be closed or closing early on solar eclipse day April 8 in Erie? Here's the list so far.

This story has been updated to include the Erie County Courthouse closing.

It won't be business as usual in Erie on Monday.

That's the day of the solar eclipse, and tens of thousands of people are expected to come here to see it.

Erie is the largest Pennsylvania city where the moon will totally block the sun for a time. The eclipse will begin at 2:02 p.m. and end at 4:30, with totality from 3:16 to 3:20.

Most Erie area schools and some government buildings and businesses will be closed, at least for a time, on April 8 to allow students and staff to enjoy the eclipse or avoid heavy traffic. Others will ask employees to work remotely.

Businesses and services

Erie County's largest employer is asking employees who can work remotely on April 8 to do just that.

Many of Erie Insurance's 3,446 local employees will be working at home as a result.

"That said, customer and claims support is always available 24 hours a day, 365 days a year at 1-800-458-0811," company spokesman Matthew Cummings said.

Wegmans stores in Erie and upstate New York will close from 3 to 3:30 p.m. to allow employees to view the eclipse during totality.

YMCA of Greater Erie will close its Downtown, Glenwood, Eastside and County branches at noon.

The Millfair Compost and Recycling Center will be closed.

Experience Children's Museum will be closed but will offer eclipse-related activities during Eclipse Day Downtown in Perry Square, sponsored by the Erie Downtown Partnership, from 1 to 4 p.m.

Public buildings

The Erie County Courthouse will be closed to the public, and courts won't be in session.

Offices of Erie County's 13 district judges also will be closed.

Erie City Hall and the North East Township Municipal Building will be closed.

Closing early will be the Fairview Township Municipal Building, at 11:30 a.m., and the Summit Township Municipal Building, at noon.

Schools and colleges

Twelve of Erie County's 13 public school districts will have no classes on April 8.

General McLane School District students will learn remotely.

Private and parochial schools will be closed or offer remote classes.

In Crawford County's four school districts, students will be dismissed after a half-day.

Here's what the colleges plan:

• Gannon University: No classes from 1:20 to 4:30 p.m.
• Mercyhurst University: No classes.
• Penn State Behrend: Remote classes.
• PennWest University: Faculty encouraged to offer remote classes or alternate assignments.
• Allegheny College: Faculty have the option to cancel classes.

All local colleges and universities plan eclipse viewing events for the public.

Contact Valerie Myers at [email protected] .

This article originally appeared on Erie Times-News: What will be closed or closing early on solar eclipse day April 8 in Erie? Here's the list so far.

How To Write a Tire Recycling Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for tire recycling businesses who want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every tire recycling business owner should include in their business plan.

Download the Ultimate Business Plan Template

What is a Tire Recycling Business Plan?

A tire recycling business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Tire Recycling Business Plan?

A tire recycling business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Tire Recycling Business Plan

The following are the key components of a successful tire recycling business plan:

Executive Summary

The executive summary of a tire recycling business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your tire recycling company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your tire recycling business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your tire recycling firm, mention this.

You will also include information about your chosen tire recycling business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a tire recycling business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the tire recycling industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a tire recycling business’ customers may include:

• Car dealerships
• Auto body shops
• Oil change stores
• Tire retailers

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or tire recycling services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your tire recycling business may have:

• Lower Costs : Tire recycling businesses that have the ability to recycle tires more cheaply than competitors will have a price advantage in the market.
• Larger Selection of Tires : A recycling business that has a larger selection of tires than its competitors can meet the needs of more customers.
• Superior Service : Recycling businesses may offer a higher level of customer service, pick-up and drop-off services, or faster turnaround times than their competitors.
• Proprietary Technology : A tire recycling company may have developed a new process or piece of equipment that gives them a competitive advantage.
• Brand Recognition: A well-established brand can give a tire recycling company a competitive advantage over businesses that are less widely known.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or you may promote your tire recycling business via word-of-mouth marketing.

Operations Plan

This part of your tire recycling business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a tire recycling business include reaching $X in sales. Other examples include adding X new customers or partners or expanding to a new location.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific tire recycling industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Tire Recycling Business

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Tire Recycling Business

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup tire recycling business.

Sample Cash Flow Statement for a Startup Tire Recycling Business

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your tire recycling company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

A well-crafted business plan is an essential tool for any tire recycling company. Now that you understand the importance of a business plan for your tire recycling company and the key components to include, you are ready to get started.  

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