By the year 2025, the waste management industry is expected to reach $530 billion. This alone, as well as the fact that this is an industry in expansion, is enough to show just how lucrative it is to start a waste management business. However, this is a specific industry that requires a lot of planning and preparation. It also requires some expertise, research, and in-depth knowledge of the field. For all those who are seriously considering entering this industry, here are the basics of what you would need to start your own waste management business.
1. Know your target market
The first thing you need to know about starting a waste management business is the fact that, even though every household and business produces waste, not everyone is in need of your services. There are a lot of organizations that take care of their own waste management and disposal, which is why your first step is to learn how to identify those who will, indeed, need your services. In general, there are some industries that are in greater need of specialized waste disposal than others.
We’re mostly talking about construction sites, dry cleaners, printing companies, and manufacturers. Other than these entities, automobile repair shops and exterminators are also likely to need your services. Nonetheless, specializing in just one of these industries may not provide you with enough workload to make your business idea financially sustainable. Therefore, try to cast a tad wider net in order to provide your business with a steadier workflow.
2. Choosing a specialization
On the other hand, specializing does have its advantages. First of all, it allows you to get enough work with one or two major clients. Second, it allows you to get into a narrower niche without any significant competitors. Then, it gives you an opportunity to make a more cost-effective business model by getting specialized tools and supplies, as well as charging more for your specialized services. When it comes to specialization options in the waste management industry, you can specialize in hazardous or non-hazardous materials, as well as in areas of medical waste, animal waste, etc. Overall, your options are numerous and it all depends on your ability to handle the needs of each of these specializations.
3. Specialized facilities
Depending on whether you’re processing this waste or just deposing it, you might need to outfit a specialized facility. For this to work, you will have to find the right equipment for the job, some of which you’ll be able to buy used, while there are some elements that will have to be custom made for your business. For instance, one of the first challenges that you’ll face is finding a reliable heat exchanger manufacturer in order to make this facility ready for work. Other than this, you might also need equipment to process or compress this particular waste. Overall, it all depends on your plan.
4. Figuring out your budget
The next thing you need to consider is your budget, which depends on a series of factors. First of all, you need to pay the rent for the location. Then, you need to pay employee salaries and bonuses. After this comes the issue of transportation and equipment. There, the question is whether you should buy or rent. Seeing as how you’re often dealing with pollutants and potentially hazardous materials, you might need to take the issue of insurance somewhat more seriously. Lastly, you need to think about advertising, seeing as how this will directly determine the amount of work you’re receiving and, therefore, the popularity of your business.
5. Acquiring legal documents
Perhaps the most challenging task that lies ahead of you is of acquiring the necessary legal documentation. You see, it’s not just the registration of the business that’s difficult to handle. Haulage trucks require a special license and registration, while you’ll also need a health inspection certificate. Other than this, you also need some standard requirements like a business license, a business plan, and a non-disclosure agreement. Overall, this is a lot of work, which is why you need to start collecting it as soon as possible. Of course, it goes without saying that you also need to protect your intellectual property and acquire a unique taxpayer’s ID for your business.
In the end, you need to keep in mind that this is an industry that will test your organizational abilities and put your moral principles to question. Deposing waste in an ethical, eco-friendly, and cost-effective way is far from easy, especially if you’re supposed to stay profitable while doing so. Fortunately, where there’s a will, there’s always a way.
