Starting a business is exciting and daunting. If you are considering starting a recycling business, there are many things to consider. We queried experts for you and gathered their advice. Keep reading to see what they would suggest to someone in your shoes.
Tony Grenier

Tony Grenier

Tony Grenier, CEO of Grenier Media.

3 Tips on Starting a Recycling Business

  1. Make sure that you have enough sources for your raw materials. A recycling business will need used items like papers, used electronics, or even used car wheels to proceed with the recycling. Now, this might sound easy to acquire, but in reality, most recycling start-ups fail because of the lack of these materials.
  2. Partner with student organizations to spread awareness of your business. Student organizations are very active in environment-related programs so you can partner with them for raw material collection. Our organization did a program like this, and we were able to collect almost a truckload of items for recycling.
  3. You can also hire recyclable material collectors that do house-to-house. Homeowners are not usually informed that they can deliver these used items, so they just throw them in the trash. Go house-to-house to ask for these items. Some homeowners also sell these so be prepared with some money to buy these raw materials.

Understand Your Target Market and Competition

You’re going to need a lot more than an idea before you can start your recycling business. Ideally, that would involve educating yourself about the industry, getting familiar with recycling laws, and even researching the equipment needed for what you have in mind.

If you’re going to invest your time in starting up a recycling business, make sure there’s a need for it. Understand your target market, competition, and more.

You’ll need to consider your organization’s structure, how it will be set up, who your employees will be, and much more. That’s why it’s essential to consult with an experienced business lawyer who can help you find the best options for your new venture.

Some of the legal challenges you will face if you have a small business, such as starting up a recycling business, may include finding a legal name for your company, registering your domain and website, creating accounts or bank accounts for those accounts, hiring new employees, etc. It would be best if you also considered the taxation implications of starting up and how to pay back expenses.

Lynda Fairly

Lynda Fairly

Lynda Fairly, Co-founder, and Marketing at Numlooker.
Deborah Sweeney

Deborah Sweeney

Deborah Sweeney, CEO of

Incorporate as an LLC

My advice for entrepreneurs that wish to start a recycling business is to incorporate or form a limited liability company (LLC) for the business. Many companies start as unincorporated entities known as sole proprietorships. However, an unincorporated business does not receive limited liability protection like an incorporated business does.

You may consult a legal professional to determine the proper entity formation that is the right fit for your business and its industry, but I do recommend incorporating early as an LLC. Aside from protecting your assets with limited liability, an LLC also provides tax savings and helps establish credibility with customers.

Use Software for Automating Your Business

Find a software service or tool that can help automate their business processes. For example, the recycling business involving building client relationships just like any other business, and so there is a need to make use of a CRM (Customer Relations Management) tool to make client-relationship building smoother. Apart from customer service, you can also use automation tools and software to make lead generation, sales, and engagement more efficient for better business success. By automating most, if not some, of your operations, you’ll have more time to focus on other aspects necessary for the improvement of your recycling business.

Matt Spiegel

Matt Spiegel

Matt Spiegel, Founder, and CEO of Lawmatics.
Willie Greer

Willie Greer

Willie Greer, Founder of The Product Analyst.

Up-sell Your Purpose

Starting a recycling business is challenging, considering that not everyone is as involved in saving the environment as we would envision it to be. Selling a recycled piece isn’t attractive as people would think that you spent less on it when, in reality, it costs almost the same. This is why what you have to sell to customers and clients is your purpose.

What is your recycling business for? Why would you want to encourage consumers to invest in your business? How would it help them in return too? Sustainability may seem complicated, but it is very pivotal in today’s time.

Choose your Niche and Understand the Legalities

Recycling can help to play a significant role in environmental conservation. It can also be a great business opportunity. So, what are some tips you need when starting a recycling business? Here are a couple:

• Choose Your Niche
The recycling industry contains several niches, and you can pick one that you find comfortable or have a natural inclination toward. Some of the niches include glass recycling, paper recycling, domestic waste recycling, and many others. It is good to conduct market research to pick the one that works best in your area.

• Understand the Legalities
You can research and familiarize yourself with the legal implications that the business requires. Remember that you can register the business as a sole proprietorship, corporation, or limited liability company. All come with their share of benefits and challenges. It also depends on the size of your business. Be sure to check with the necessary government bodies.

Harriet Chan

Harriet Chan

Harriet Chan, Co-Founder of CocoFinder, a company engaged in software development.
Simon Elkjær

Simon Elkjær

Simon Elkjær, Chief Marketing Officer at avXperten.

Know Your Target Market

My piece of advice to entrepreneurs wanting to start their own recycling business is to know who their target market is, where to find them, and how to appeal to them and catch their attention. Knowing this early on will help you strengthen your marketing plans, use all the right platforms, and invest in all the right marketing campaigns.

Entrepreneurs should also never forget to showcase their value through quality content. Making sure that your quality content is informative and engaging will help you get your message across, expand your reach, and strengthen your place in the industry.

This is a crowdsourced article. Contributors are not necessarily affiliated with this website and their statements do not necessarily reflect the opinion of this website, other people, businesses, or other contributors.