If you are thinking of entering in the waste market, it is not at all waste of time. It is much larger than expected.
Environment Research and Education Foundation (EREF) research reveals that recycling in U.S. is creating a positive impact on the economy.
According to this comprehensive study, there are 8,828 waste and recycling operations. It is more than double than the previous estimate of 4,057 operations.
Interestingly, the amount of waste generated in the United States was 128.4 million higher than Environmental Protection Agency (EPA) estimated numbers. It clearly indicates that the United States produces more waste that is managed by solid waste industry.
EPA's 2013 annual report on Municipal Solid Waste Generation reveals that Americans generated about 254.1 million tons of waste and recycled and composted more than 87 million tons.
Every American generated 4.40 pounds of waste per day. They recycled and composed around 1.51 pounds per day. On a yearly basis, the composting and waste generation increased slightly, and recycling rate fell.
On July 28, 2015, Zero Waste Development and Expansion Act was introduced for funding waste reduce, recycling and reuse efforts. The aim was to:
- Create local jobs, reduce greenhouse emissions with proper utilization of resources.
- Help local businesses in the elimination of wasteful practices.
- Create awareness among people to reuse, recycle and compost.
What does it signal?
It signals a green light to all the entrepreneurs who want to fill their pockets from this green initiative.
Apart from making a positive impact on the environment, recycling can turn out to be a profitable business.
If you don't believe in the impact of recycling business, have a look at these two examples:
Ninety-nine percent of Sweden waste goes into recycling process. They have become so efficient in waste management that they import garbage from Norway, Italy, UK, and Ireland.
They have changed the definition of waste. Instead of looking recycling as a trash collection, they believe it is a commodity for business expansion.
Are you ready for this mind blowing statistic?
If Sweden burns two millions of waste annually, it results in the production of 670,000 tons worth of fuel energy.
General Motors generate $ 1 Billion revenue by recycling waste. They make this eye-popping number from scrap steel, paint sludge, cardboard boxes, and worn-out tires.
In the initial phase, GM invested just $10 for a ton of waste. Over time, the program costs were reduced by staggering 92% and the total waste by 62 percent.
From business and ecological point of view, it is a win-win game.
How to initiate the recycling business?
Keep a check on local competitors
Stop looking your competitors as a threat. Ask these questions to carry out a detailed research on their working:
What products are they recycling?
For how long have they been in this business?
Are they generating good profit?
Why are they choosing recycling of a particular product?
Before jumping in this green initiative, prepare a roadmap for setting yourself ahead of your competitors. Fill the existing loopholes by understanding the community demand for recyclable items.
Don't forget to track the waste authorities and latest developments
Start networking with the local authorities for getting funds for boosting your recycling business. You can't initiate the business without understanding local rules for collecting recyclables.
Always remember:
Rules vary from region to region. It is not possible to implement one rule because the feasibility of business depends on region-specific availability, location, licensing, and regulations.
Update yourself with the latest trends and development. Keep a close eye on new rules and technologies in this ever changing business.
Understand Your Buyers and Cost Issues
Locate purchasers of your final product. Their availability determines the price for recyclables. Check out online forums and start the discussion with your clients. Don't join the group with the sole intention of selling. Educate them.
Take help of your local newspapers and magazines to spread the message across the people living in your area.
Keep a track of storage, handling, equipment, campaign, staff, and other costs. Before getting into any financial mess, identify whether your step makes the process profitable or not. Look out for an efficient route to carry out the operations smoothly.
"It is the perfect time to step in the recycling business. Stop worrying about the constant flux in waste management market. If you provide an excellent service, you'll survive and experience exponential growth. This area is booming with lots of growth potential for private companies." Says Ron Fogel Jr., President of Incineration Recycling.
Select your niche and location correctly
After analyzing the strengths and weakness of your competitors and understanding the local authority recycling rules, focus on your niche.
The niche, decision to choose the type of waste for recycling, depends mainly on four factors:
- Availability of waste
- Level of competitions in a particular niche
- Business opportunities
- Demand for the recyclable product
If your sample site is too far from your recycling facility, you have to bear the transportation and safety costs.
Are you ready to join the waste management tribe?
The market is eager for enrolling recycling startups. In the age of depleting resources, you have a golden chance to become a savior and generate lots of commercial opportunities from waste.
If you have great ideas for waste management, don't waste your time in thinking. Start the work.