The paper shredding business is providing the service of securely and permanently destroying outdated paper documents. An entrepreneur living in a city or suburban, having a network with business houses can start this recycling business with substantial capital investment.
Even in this electronic age, there are still things that will be in paper form. Recorded documents and legal papers are still required to have a pen and ink signature. Every document has a different holding time. Important paper documents must first be shredded as they may contain confidential business, employee, or customer information before throwing it into the bin.
Here are the 7 Steps to Start Paper Shredding Business
Here is a paper shredding business plan guide for beginners:
1. Research the Market
The first thing to do before you start any business is to understand the local market. Try to collect as much information as possible regarding the needs of target customers, level of competition from other local players, pricing, etc. It is essential to carry out detailed market research and find out the gaps and plan accordingly.
2. Select the Business Model
Broadly there are two ways of starting a paper shredding business in the present day. One is the traditional way wherein customers come to your workshop and get the paper shredding work done at your workshop. In this model, you need to have an in-house shredding setup.
The other way which is getting popular is the mobile paper shredding setup. In this setup, a truck or a van equipped with a paper shredder comes to your location at a pre-scheduled time. A shredding technical person transfers the documents that you want to shred into the shredder.
The customer can watch their documents shredded in person during the process. This makes the customer feel conveniently secured as the documents are trashed at their own location. You will be also making money by selling shredded paper bales to recyclers to be processed and reused in the manufacture of paper-based products.
3. Create a Business Plan for Paper Shredding Business
Every prudent entrepreneur knows the importance of having a business plan. Determine your business objective and target consumers. Calculate your startup budget with machinery, vehicle, staffing, and promotional expenses.
A business plan is also required if you want to get funding from any financial institution. If you have chosen the mobile shredding business, add transportation costs and plan the pricing accordingly as per distance. For a small paper shredding business pan, some of the basic topics that must be included are the following:
- Initial and recurring costs
- Target customers
- Pricing plan
- How do you plan to promote your paper shredding services?
There are plenty of free resources available online that can be of great help while documenting your paper shredding business plan. Check out the official site of Security Shredding News and the local chapter of the economic development corporation.
4. Name your Business
It is extremely important to find a catchy and attractive name for your paper shredding company. It is seen that a proper name not only enhances brand growth but also helps in fetching new customers for your paper shredding services.
5. Legal Compliances
Determine a proper business structure under which you are going to operate. Furthermore, you need to obtain the required licenses and permits from the local authority to start and run paper shredding business activities.
If you stay in the United States, forming an LLC is a better option. Check this detailed guide on how to form an LLC for free.
6. Set up and Equipment for Paper Shredding Business
In initiating a paper shredding business you will need to have one office set up and equipment like a shredding machine, paper baler, pallets, and paper bins. If planning a mobile shredding setup, you need to buy or hire a vehicle fitted with an industrial paper shredder and a generator as a power supply. Additionally, make arrangements for a spare room or space for storage. home.
Different types of industrial shredding machines are available. Choose the machine according to your required output. Check the warranty period and the client’s testimonials before purchase. Get practical training from the machine supplier.
7. Get Clients for Paper Shredding Business
Every business organization such as hospitals, factories, law firms, and education institutes retails are your prospective consumer. Having trust and reputation is the key factor to being successful in this business.
In starting, go for some local newspaper advertisement. Create a website with testimonials of satisfied clients. You can also send emails to business houses detailing your service facilities. Furthermore, register your paper shredding business with trade associations.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.