If you are looking for a sample plastic recycling business plan template, here is a guide for starting a plastic recycling company.
Interested in small plastic recycling business planning tips? If YES, here is a practical guide on plastic recycling business.
How to Start a Plastic Recycling Company – Business Opportunities
Are you thinking about starting a recycling business in your state where you reside? Since necessity they say is the mother of invention, the current biting global economic meltdown continues to set people thinking on how to assuage the scourge and make better opportunity of the gory situation.
One of the areas that are yet to be looked into, particularly, in this part of the world is recycling business. Do you know that you can make millions from plastic recycling business? Recycling is the process of collecting, sorting, and processing of waste materials to create new products. This is an important part of the environmental equation.
Have you ever heard about some strange business ideas that make you wonder how in the world you never thought about it? Of course you have. We all have looked at a particular business and thought, “What? Wow. What a neat idea.”
Plastic recycling business is one great profitable business idea that you can start from scratch and grow it into a million-dollar empire. Many people think that only the giant waste management companies can make money from waste. On the contrary, even someone who’s just starting out from home can potentially earn a huge income from this business.
Without wasting your time, here is how it is possible to start a plastic recycling business;
Research the Plastic Recycling Market
The first thing you need to do before starting a plastic recycling business is to conduct a feasibility research in the plastic recycling market to see the type of plastic bottles recycling companies requires. Check your area to see if there exist a plastic recycling companies in your locality and make your decision if you still need to start a plastic recycling business in that area.
Also research for manufacturers that will pay for recycled plastics and the price they pay too. Polyethylene Terephthalate (PET) is the most common plastic that is mostly recycled. Examples of Polyethylene Terephthalate (PET) products are Coca-Cola plastic bottles, Pepsi plastic bottles, most bottled waters, and many more.
- Incorporate Your Business
the fact that you won’t be acting as a middle man in the plastic recycling business makes it compulsory for you to register your business with the government of your country. Registering your business gives the chance to seek for loan from financial institutions and some world organization for expansion.
The amount of money that you will need to start your recycling business will vary greatly depending on what kind of operation you are planning to run. Knowing how much you would need in advance to start a plastic recycling business will help you in a great deal.
Some of the expenses that you will need to consider include vehicles to haul recyclables, machinery to process the recyclables, salary for employees, storage spaces, and money to pay people that brings plastics to you.
All the research that you have conducted and other findings will come together in your business plan. Your business plan will help you stay on track as you start your journey. Aside that, it will also help win potential investors to help you fund your business.
Your business plan should contain the following and much more;
- Executive Summary
- Company’s Goal.
- Company’s Vision and Mission.
- How the business will be structured and managed.
- How much capital will be needed to run the business.
- Market Analysis
- Your Target Area
- Your plastics collection point etc.
These are important outlines that must appear in your business plan.
In addition to registering your business, you will need to apply for necessary license and permit from your state’s office. Don’t launch until you have the necessary papers for recycling plastic waste in your state.
- Make a Collection Plan
You have to decide on where you will be collecting your plastics. You can either choose to be collecting them from residential bins or you can contract it to volunteers who will collect the plastics for you and bring it to your location while they get paid for it.
The choice is yours to make. You can still make a small metal trucks, give them out to contractors that will be going round residential buildings to collect plastics for you and drop it at your site.
- Find a Space/Site for your Plastic Recycling Business
You will need a space to store, process and sell your recyclables. You will need to lease or buy a building or warehouse. Make sure the road network is motor able. Make it a rule of caution not to establish your plastic recycling business near residential areas as it may cause disturbance due to the noise that will be coming from your factory.
You can look for free cheap land to rent or for lease and build your own structure to your taste if what you are getting don’t suit you.
- Get the Necessary Equipment
Search online for the types of machinery that you will be needing for your plastic recycling business. From my research, the machinery needed include;
- Crushing Machine.
- Drying Machine.
- Laundry Drier.
- Washers etc.
If you won’t be able to purchase all this equipment and more, you can research for local processors you can outsource some processing to. This means you have to have a huge truck that you will be using to transport processed recyclables.
In order to succeed in the plastic recycling business, you will need to get your words out. Use flyers, business cards. Use online and offline marketing to push your business out to your market.
You can sign up contract with companies that uses plastic bottles for their business. The truth is that they would be interested in doing business with you because it is cheaper to get their plastic bottles from a recycling plant than from those who produces virgin plastic bottles.