How to Start a Tire Recycling Business

Discarded tires pose an environmental hazard. Many states and cities have developed regulations to prevent them from disposed of improperly. Yet millions of used auto, truck and agricultural tires wind up in landfills, annually. Lacking equipment, ideas and marketing skills, most entrepreneurs have shied away from this lucrative recycling business opportunity. Start a tire recycling business and profit from new trends and new technologies.

Things You'll Need

• Vehicles
• Insurance
• Business License
• Permits

Instructions

Market Entry

1. Locate reliable suppliers of discarded tires. Generally, your state waste management agency is a good place to start your search for businesses that have tire disposal and stockpile permits.

2. Conduct market research for your state. Get prices from tire disposal companies.

3. Review federal and state regulations for your tire recycling at the Environmental Protection Agency website. Find links to tire recycling associations and companies as well.

4. Identify your potential customers for products from recycled tires, based on your market research. Target a small niche that has little competition, initially. Become expert on the benefits of using your recycled product to replace or complement an existing one.

5. Find equipment needed for tire belt separation and any additional equipment for shredding, crumbing or molding operations.

6. Investigate additional markets for products and by-products made from discarded tires. Scrap tires can be recycled as floor mats, playground surfaces or molded landscape accessories and patio furniture. Each of these finished products requires different manufacturing equipment.

Operations

1. Review insurance and safety regulations for tire recycling operations at the Environmental Protection Agency and the Department of Labor websites.

2. Create a business plan and a human resources plan.

3. Get a business license and any required permits and insurance. Consider incorporating your business to decrease your personal risk and to enjoy numerous tax advantages.

4. Identify an appropriate space for storage of salvaged tires. Identify vendors for equipment, tools and supplies.

5. Hire staff, if you need assistance with your recycling operations.

6. Track profits monthly. Find tools for making cash flow projections on the All Business website.

7. Advertise your business and recycled products to both commercial and consumer markets.