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How To Start A Recycling Business From Home – Complete Guide

The whole world may have been progressing, but we can’t deny the fact of how much garbage we have put up. The solution is to recycle. You can start a recycling business from your home and can make a profitable business out of it. Millions of tons of garbage are produced in a month around the world, and this ain’t going anywhere. Either we recycle the garbage or just let it pile up till we are left with no place to live.

Recycling will not only help the environment but at the same time will make the world a better place to live. Starting a successful recycling business will require thorough market research and implementation. But, to make it easy for you, here’s a complete plan on how you can start a profitable recycling business from home with little money.

Here are the 10 Steps to Start a Recycling Business

1. Market Research 

You need to work on your idea properly. Recycling is very different from any other business and has to be carried out very carefully. First, you need to select what you want to recycle. There are a lot of categories, and you have to pick one which will suit your requirements and market demand. Carry out market research in and around the area you want to operate.

This will provide you with an idea of what people are throwing away and what you can recycle.

Selecting & Collecting Recyclables is the most important aspect of this business. There are several kinds of recycling businesses, and you have to pick one. From metals to plastics to batteries, every item has a different recycling process.

The categories can be broadly divided into:

  • Paper and glass for processing facilities
  • Recyclable materials into new products
  • Broken electronics
  • Recyclable components
  • Scrap Metals
  • Batteries
  • Cartridge Refilling
  • E-Waste Recycling
  • Plastics
  • Vehicle Tires

2. Financing Your Recycling Business

Recycling is a cost-intensive business. Once you finalize what you want to recycle, you can work on your budget accordingly. The budget will play a major role initially. The machinery you need to set up, the areas you will operate and how the functions are going to be carried out will depend on your investment.

You can choose to finance your business via any of the banks that offer the best low-interest long-term business loans.

3. Creating a Business Plan For Recycling Business

The recycling business is quite different from conventional businesses. You will have to work skillfully on the plan by mapping down the advantages and disadvantages of how you want to operate your recycling business from home. A business plan helps you to measure your level of performance. You can write about the goals you want to achieve and the vision you want your company to follow.

The plan should have a detailed map work on how you want to operate your recycling business from home.

4. Naming Your Recycling Business

Choosing a good name for your recycling business is important. You can’t go wrong with the name, so do give it the required thought. The name should be easy to pronounce and read. After you finalize a list, check with the state’s office to see the availability. Patent and Trademark Office for registration.

Also, make sure you have a domain available with the same name you choose for your business.

5. Choosing Business Structure For Recycling Business

With your business name ready, now you can start filing forms. You have to choose the business structure which suits you best for your business. It is an extremely critical decision as a proper decision in structuring your business will give you the advantage of being free from certain legal liabilities if anything untoward happens.

Every country provides different options for forming companies. Check with your country and state’s requirements and select the one that fits you most.

For example in the United States, you can register as an LLC. This will provide you additional tax benefits and will keep you free from certain legal bindings at the same time.

6. The Legality of Recycling Business

The recycling business requires several licenses. You will have to apply for several permits before you can start your recycling business. These are some of the licenses and permits generally required (differs from country to country):
Employer Identification Number (EIN)

  • Business license for operations
  • Environmental department permission
  • Business license to collect material (if hazardous)
  • Annual permit and report all of your recovered materials

7. Finding Location & Setting Up Equipment

You have to find a location where you will store your stuff. You have to set up the machinery according to how much you want to process at a time and sell. The most suitable space to keep your stuff is a garbage ground so that you can easily operate your recycling business from your home.

The facility for processing and the place where you store your materials should not be far.

For example, a plastic recycling business will require equipment like separators, plastic shredders, granulators, pre-washing systems, dryers, processors, and more. You can get all your recycling necessities from the manufacturers.

8. Selling Your Recycled Products

Once you enter the manufacturing phase, it’s better to start with finding a market for your recycled products. Initially, you can go up to companies with the samples and what they may want to manufacture. You will have to market your recycling facility and what kind of products you can produce.

You also need to acquire permission from the zoning commission, environment department, and development department around your area.

9. Hiring The Right Professionals

Up next you need to set up a team and hire a few professionals to look after the whole business. You will need people who will collect the recyclables from different places and will bring them to the facility. One has to hire a huge team comprising machine operators, technicians, a driver for pick-up vehicles, selling, and more.

Furthermore, you also need to choose your accounting software and manpower to manage bookkeeping and marketing.

10. Promoting Your Recycling Business

You have to have a proper marketing plan to promote your recycling business. To maintain a steady flow, you need an order from big manufacturers. Start with putting the word out and sending out samples to different companies. Make sure your recycled materials offer the best quality and are affordable at the same time.

There is a good amount of competition in the recycled goods industry and hence creating your business network with different companies is important.

Suggested Read: How to Make Money Recycling Batteries

The garbage is growing and the world slowly is turning to recycled products offering a huge scope for recycling businesses around the world.