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.
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
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
