Do you want to start a recycling of wooden pallets? If so, here is a complete guide to starting a wood pallet recycling business with no money and no experience.
Okay, we provide you with a sample in-depth wood pallet recycling business plan template. We also take it one step further by analyzing and writing a sample wood pallet recycling marketing plan backed by actionable guerrilla marketing ideas for wood pallet recycling businesses. In this article, we will consider all the requirements for starting a wood pallet recycling business.
Shredder Machine for Wood Pallet Recycling
Twin-shaft shredder is widely used for recycling of waste plastics, waste rubber, wood and other bulky waste. Through the shearing of this machine, the stack density of materials can be increased and transportation costs can be reduced.
Why start a wood pallet recycling business?
All over the world, countries are becoming more aware of their environment. Many industries are using wooden pallets especially for shipping because of the health and safety standards they adhere to when using wood instead of plastic pallets. As such, if you are going into business for pure profit, you can also be satisfied that you are doing your part to improve the environment.
The wood pallet recycling business is not only considered a hobby but also a commercial enterprise. The fact that there are so many companies that use wooden pallets for shipping makes it a very lucrative business for any environmentally conscious entrepreneur. Although pallets are not the best woods, they are considered very useful as they can even help build the necessary furniture in a house, but in a way that is not as expensive as using other types of wood.
Due to the fact that this is a recycling business, it is important that you do all the necessary research to find out everything there is to know, especially regarding business management and success. Your market research should lead you to find out where you can get wooden pallets at low cost or for free. Generally, the sources for wooden pallets can be distribution companies, magazine publishers, manufacturers, newspapers and transporters, where most of them discard the pallets and give them to you for free or sell them at a very low price.
Once you have a steady flow of suppliers, you will also need to find out who your main customers are and where to find them. In some states, you may be lucky enough to get a list of those who use wooden pallets, making it easier to know which group of customers to focus on.
Be sure to contact the purchasing or shipping departments of the companies you want to contact. However, before you start sending quotes to your potential customers, you should have done some research on pricing so you can compete fairly against your competitors.
A Pallet Recycling Business Plan
In this kind of business, the first thing to do is to find a supplier for recyclable and damaged pallets. Here are the best sources: magazine publishers, newspapers, distribution companies, shippers and manufacturers. These discarded trays have a nominal price and are sometimes given away for free.
Second, you should also do good market research so that you know other potential tray sources. In the National Waste Management agency, you will be able to obtain a complete list of potential users of wooden pallets. You will also need to get the price of used and new wooden pallets from your competitors.
A particular sales proposition must also be developed, but you must carefully base your research on the market. You also need to keep an eye out for users of pricier plastic trays.
Secondly, to pay attention to the tray buyers. You’ll also need to contact the purchasing and shipping department. Most of the time, you can expect more local distributors and shippers to become your avid customers.
The market for pallets manufactured by products and wood products that no longer have the opportunity to be repaired must also be investigated. The waste includes composting bins, flooring, the manufacture of wooden concrete and animal bedding.
The second part of your business will be operation-centric. Because safety and insurance regulations are important to your business, you need to review them on the EPA and Labor Department websites. After that, you need to get a business license and license.
A human resources plan must also be drawn up that sets out the employees’ job description, including their benefits and salary. After that, you can start hiring.
In order to generate more potential customers, you need to come up with a great plan for how you will be able to promote your business. The accounting system must also be set up for you to track all financial transactions.