If you are looking for a business that will require very little start up capital, then you may want to tinker with starting a wood pallet recycling business. This is one business that can fetch you constant money as long as you don’t mind trying your hands on some wood work. You can consider starting a wood pallet recycling business.
A pallet recycling business involves sourcing for old pallet woods, repairing the broken pallets woods and reselling it at a higher price. The process is as easy as that. Most people still prefer to make use of wood pallets instead of plastics because wood pallets are safer for our environment than plastic.
If you already have a truck that will serve as a means of transportation, the other equipment would just require small money to purchase, much less than $1,500 or even less than that amount if you purchase fairly used equipment. You don’t have to spend money renting those expensive shops in the busy part of the town; you can run this business right from your home. You can make out a space in your garage to store old pallets and wood pallets ready for sale.
There will remain a constant demand for pallet woods for a long while to come, with a good advert system, you can transform this business to a constant source of income. So, how may you possibly start, you just might ask? Here below are the tips needed.
Starting a Wood Pallet Recycling Company – Sample Business Plan Template
1. Write up a Business Plan
A business plan is mandatory step to start and run a successful wood pallet business. It should cover major details of the business, where to source for used wood pallets at the cheapest possible price, equipment you will need to repair broken wood pallets and how to source for buyers for your wood pallets.
2. Buy Your Equipments
After writing out details of your business plan, the next step is to purchase equipment you will need to work on old, broken wood pallets. You will need an electric driller, work gloves, nails and hammers to carry out the repairs. It is not essential to get a brand new truck, as long you can get a fairly used one that is still in a very good condition.
Your choice of truck should also be dependent on the quantity of woods you wish to carry with it per trip you make. Remember, that the bigger woods it can contains, the less number of trips you will have and that will save you fuel cost.
3. Source for Old Wood Pallets
The next step is to source for old wood pallets; some good places to source for old pallets include; factories, stores, shippers, at the manufacturer’s, newspaper and Magazine publishers, amongst others. Some of them may offer you their wood pallets free of charge because most times they actually pay for these old wood pallets to be removed.
You can make a deal with the owner to visit regularly to dispose of the wood pallets. Most times, some old wood pallet owners may insist that you pay them a little fee to carry the wood pallets if they find out that you are making money with them, you can offer them a little money in exchange for the woods as long as you can still make a reasonable profit at the end the recycling process and sales.
4. Repairs of Wood Pallets
Most of the wood pallets you collected may be broken and in need of repairs; you can spend some time to repair the wood. The repair process is nothing strenuous; the oak woods amongst them can be repaired by drilling a hole with the electric driller; while you do the rest with some nails and a hammer.
5. Marketing
This is the final stage in this business and involves sourcing for buyers for your wood pallets. Who then are your potential Customers in this business? Many companies that manufacture ships and boats prefer to work with wood pallets instead of plastics in the construction of boats; if you can make a supply deal with one or two boat manufacturing companies.
Some local manufacturing companies still prefer to construct with wood pallets. These are companies that buy wood pallets in large quantity from recyclers. You can also opt to supply them with your finished wood pallets; the only disadvantage is that, considering that they buy in bulk quantities, they ask for discounts; so you sale at a cheaper price for them.
Since you know who your potential customers are, you have to find a way to reach out to them with a deal to supply wood pallets to them. You can consider getting the number of boat manufacturing companies and local pallet companies in your area from the phone listing or directory. Always be sincere with the quantity you are capable of supplying within the period; to maintain your business integrity and business relationship with the Customers.
In conclusion, this business is one easy and strait forward business anybody can start and make profit almost immediately. The only step you will have to take is put in some extra effort in advertising your product.
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