Starting a paper recycling business involves you having a good knowledge of where to collect the waste paper and where to sell your finished goods.
1. conduct market research
What is Market research? Market research is a process of gathering, analyzing and interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present and potential customers for the product or service; research into the characteristics, spending habits, location and needs of your business’s target market, the industry as a whole, and the particular competitors you face
How will it help you?
Market research is the first and most important task you need to accomplish for you to know if your idea is feasible. 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, masking tapes, tissue paper and paper grocery bags, etc.
2. What is the target market?
While almost every person and organization has paper to recycle, the most profitable sources of paper are usually businesses. Small offices, print shops, and retailers are especially good sources. They’re usually located close to each other, so drive time between pickup locations is reduced. Also, their paper and cardboard isn’t contaminated with food.
The first step in writing an effective business plan for your Paper Recycling Business is to understand what a business plan is, what type if information is contained in a business plan. And also to understand what the benefit of a business plan is to you as an aspiring entrepreneur. Find out how to write a business plan click here
5. The Financial Implications of Starting a Paper Recycling Business in South Africa
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.
6. Resources required to start a paper recycle business:
Space and Factory:
The First basic requirement is a place where you will recycled paper. If your house allows you to setup your plant then it is okay or you need to get a decent space where you can set your factory.
Requirement of Resources:
The Basic amenities are required everywhere. You need to have permanent standard power connection with stable water supply. The paper recycling plant requires huge amount of water therefore you need to have that supply.
Paper Recycling Machine:
It would be advisable to start with small machine and later on go for medium and large machine as it will help you in understanding the business supply and returns.
Waste Paper Collection:
You can network with scrap collectors, paper waste owners, dumping grounds and so on to collect waste paper.
7. Funding your business
You can finance your business by any or all of the following ways:
- Fund your startup yourself.
- Pitch your needs to friends and family.
- Applying for a Business loan
- Finding your business through crowdfunding
- Apply to local angel investor
Investors invest into things that they know and understand, only talk to investors who know your industry. Conversations with anyone else are unlikely to be productive. You also want to do some research into your investor. To find out What does an investor really want to see from your business pitch read more