Are you interested in starting a paper recycling business but you don’t know how to go about it? Do you need a sample paper recycling business plan template that you can use to raise funds from investors? If your answer to the questions above is YES, then I advice you read on.
The green movement is on. People are increasingly becoming aware of the need to protect the environment and conserve our mineral / natural resources. Few months ago, I wrote an article on how to start a recycling business. due to popular demand, I decided to follow it up with this article on how to start a paper recycling business.
In this present day of rapid technological development, businesses are becoming increasingly aware of the environment and are increasingly looking for ways to reduce their environmental impact, and where possible, to also reduce their operating costs.
Starting a paper recycling business involves you having a good knowledge of where to collect the waste paper, technical and mechanical know-how on how to operate the machines used for the process and where to sell your finished goods. Now how do you go about starting this business? I suggest you keep reading.
Starting a Paper Recycling Business – Sample Business Plan Template
1. Conduct Preliminary Market Analysis
Market research is the first and most important task you need to accomplish for you to know if your idea is feasible. Before even considering the option of setting up a paper recycling plant, you need to ask yourself these questions:
- How will my business benefit my clients?
- Who and how many potential customers are there for me?
- What is unique about my business that would motivate buyers to patronize me?
You have to know if the companies in your location are willing to buy the products from you. Recycled paper can be used to make newspapers, paper money, egg cartons, masking tapes, cartons, tissue paper and paper grocery bags.
Most companies pride themselves in the use of recycled paper. You can check online and find out the companies in your location that manufacture all these products and approach the manager to ask if you can supply paper to them.
2. The Financial Implications of Starting a Paper Recycling Business
Starting a paper recycling business is not as expensive as you think it might be. Majority of businesses start with what they have at hand and grow gradually and steadily. The amount you would spend depends on how large your operation would be.
Equipment Needed to Run a Paper Recycling Business
To start a paper recycling company, you will need a Pulper. A Pulper is the machine used to mush old paper through the use of water and chemicals and turn it into new paper through a process of pulping, screening, cleaning, deinking and bleaching. Information for purchasing these machines can be gotten at your local environmental /waste management office.
On the other hand, you can just collect the waste paper, sort them out yourself and go drop them off at the nearest paper recycling plant and pick them up to sell to manufacturers. For this to happen, you must have discussed the terms of business with the owner of the recycling plant. This procedure is suggested as a good business move for people who are just starting up in the business.
Below are a summary of start-up costs you should expect:
- Land and buildings
- Equipment
- Materials and supplies
- Marketing and advertising
- Operational costs and expenses
- Personal living expenses and cash reserve.
3. Write a Business Plan for your paper recycling plant
You should have a business plan, it is very important. It helps to organize the framework of your business. A business plan will help you identify the risk, threats and rewards you will encounter in the business. Also, it will aid you in the process of raising funds for your recycling plant.
4. Do a Product Analysis
Not all papers are recyclable. And being able to differentiate the kinds of paper would add to your productivity.
- Recyclable Paper
With office paper-letterhead, business forms, offset paper, scratch paper, copy-paper, colored paper, photo copies, adding machine tape, index cards, computer printout paper, standard business cards, brochures, newsletters, magazines (glossy magazines are not acceptable),books with stapled/sewed binding, envelopes and folders.
- Non-Recyclable Paper
Adhesive removable notes, carbon paper, envelopes with plastic windows, blueprint paper, cellophane, film, spiral binders, glossy magazines, books using glue for binding, wax paper, paper cups, paper plates, napkins, tissue, paper towels and stamps.
5. Licensing Your Business
Before you start operation, you must register your business with the required authority in the area you want to operate your business. You will also need a sales permit and tax clearance permits, along with relevant permissions from the relevant environmental agencies.
6. Marketing and Advertising
For your business to survive, grow and get a constant inflow of cash, you must be aware of what is happening in your industry as well as what your competitors are up to. Which associations do you need to join and how can you take advantage of these resources?
To be successful in the recycling business, you must have a thorough understanding of the market for recyclable materials in order to adjust rapidly to changes in market conditions. Talk to people already in the business. They will have up-to-date, practical information and suggestions. Talk with people you already know and also check in with your community recycling centre. They would have contacts for you to follow up on.
7. What Kind of Program Would You Run?
How do you want to collect the paper to be recycled? Would you have the manpower to go house to house, and to business establishments to collect waste paper? Or, would you gain permission to organize drop-off points where people can drop their paper waste for you to pick-up?
Where to Get Recyclable Materials?
The source of paper recyclable materials can vary. You may decide to target your services to the general public, the commercial sector or other sources.
In addition, recreational areas, such as city parks or sports events, may also be a good source for getting waste paper. You can discover other sources of recyclable materials by identifying the consumers of your targeted recyclable materials and contacting them to discuss collection.
In conclusion, it is advisable that you summarize your business plan, and start with what you have. The paper recycling business is a profitable business in this age of being Green. The future of your business depends on your entrepreneurial skills, your competence and lots of hard work.
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