How to Start a Recycling Company

How to Start a Recycling Company thumbnail
Start a Recycling Company

The growth of recycling companies throughout the United States is a response to increasing awareness of environmental issues. As households become concerned with where their waste goes, recycling companies will be in higher demand to keep paper, plastic and electronics out of landfills. Prospective recycling company owners have to plan carefully even as the recycling industry is on the rise. The best recycling firms have multiple buyers for their materials and offer invaluable services to local residents.

Things You'll Need

  • Business license
  • Garbage trucks
  • Recycling bins
  • Processing equipment
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Instructions

    • 1

      Use your business plan to explain how your recycling company will remain competitive with bigger companies like Waste Management. List potential buyers for raw materials, the number of households in your target community and the services that will be offered once you are operational.

    • 2

      Select the materials that will be recycled in your facility before investing in trucks and equipment. Paper and plastic recycling companies typically pick up products from customers using garbage trucks. Cell phone and electronics recyclers run mail order and drop-off campaigns in their communities to keep overhead costs low.

    • 3

      Consult your state's department of environmental protection to find certified processors looking for raw materials. Your main buyer for recycled plastic, paper and metal will be recyclable processors that purchase materials by the ton.

    • 4

      Lease property to build a processing facility and truck depot for your recycling company. Your property should have ample space for growth as well as easy access for garbage trucks from busy streets. Apply for commercial loans to cover your initial costs and keep your start-up budget available for business expenses.

    • 5

      Install processing equipment in your facility to handle anticipated volumes of paper and plastic. Traditional recycling companies use compactors to smash paper and plastic before using shredders to tear materials into smaller pieces. Electronics recyclers use cathode ray tube (CRT) smashers to break internal tubes into thousands of glass and metal shards.

    • 6

      Acquire a business license and land-use permits for your recycling company before opening. Your business license application should include an explanation of services offered, an application fee and a copy of your business plan. Most cities will require land-use permits for recycling facilities due to the potential for runoff and other waste from processing.

    • 7

      Research scale certification requirements through your state's department of weights and measures. Your recycling scale from americanweigh.com needs to be calibrated based on state regulations to avoid fines and other penalties.

    • 8

      Buy garbage trucks with ample room from a supplier such as Heil. Look for garbage trucks with compacting equipment to simplify processing at your home facility. Start your recycling business with one or two trucks to handle regular routes until your revenue stream allows additional purchases.

    • 9

      Bid on waste disposal services through your city council to increase your recycling company's profits. Submit your costs for handling weekly recycling pickups for city residents as well as processing and disposal of raw materials.

    • 10

      Invest in hundreds of plastic recycling bins from a company like Fibrex Group. The recycling bins produced by Fibrex Group can handle paper, plastic and co-mingled materials up to 60 gallons. These bins should be delivered to subscribers for private routes or city residents with government contracts.

    • 11

      Keep your processing and office staff limited in your recycling company's first few months. Train two or three operators to handle your compactor and shredder, assigning each employee to part-time hours throughout the week. Your hiring focus should be hiring truck drivers who are willing to work early mornings a few times a month.

Tips & Warnings

  • Advertise your recycling company at retailers in your community where potential recyclables are purchased. Link your print advertisements to your company's website complete with recycling information and tips for a cleaner environment. Post print ads at office supply stores, grocers and big-box retailers when possible to attract eco-conscious consumers.

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Resources

  • Photo Credit Photo by Rafa from Brazil (Flickr)

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