Entrepreneurs worldwide are always on the lookout for business ideas and the recycling industry offers sustainable initiatives for startups if you plan it properly. You can choose between glass, plastic or paper recycling options for your new venture. And yes, despite the transition to digital technology, Australia continues to generate tonnes of paper waste that could be recycled.
Your recycling startup can help reduce the amount of paper going to municipal landfill sites but what do you need to get started? If you’re collecting paper from individuals and companies you could hire trailer services to reduce capital outlay. Deciding how to market it will get your name known and a solid business plan ensures you see returns sooners rather than later.
Keep reading to find out what you need to do to get your paper recycling startup up and running and why trailer hire could be the best solution, especially in the beginning.
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What You Need to Know About Paper Recycling Startup Costs
Before you hit the road collecting paper for your recycling startup, you need to plan your business. This step includes finding a name for your startup, doing a budget and identifying your target market. Knowing the costs of starting a paper recycling business will help you figure out what to charge customers for your service and if you can sustain your running expenses.
Startup costs can be minimal especially if you’re running a one-man show until your business grows enough to take on more workers. You’ll need to factor in costs such as the following:
- A vehicle and trailer for collecting and transporting paper
- A scale to weigh collected paper
- An area for storing collected paper before delivering it to recycling facilities
- A small office with basic furniture and equipment
If you have limited capital, you can use your private vehicle and hire a trailer to reduce transport costs until you have enough revenue to invest in a truck. Your garage can be used to store paper while setting up a home office means you don’t need to rent commercial space.
Initial ongoing expenses include fuel, vehicle and trailer maintenance, and office rental (if you can’t manage it from home) so make sure you factor them in when doing your budget. You also need to find out how much recycling facilities will pay for your waste paper.
3 Reasons Why Trailer Hire is a Good Idea for Your Startup
1. No Capital Outlay Needed
Many entrepreneurs start their businesses with little or no capital outlay. Taking out a bank loan or borrowing from family or friends is an option but it comes with many additional expenses. Finding ways to reduce costs, in the beginning, is essential if you want your startup to be successful in the long run. Using your private vehicle and a trailer saves you from sourcing capital to purchase a truck.
Purchasing a trailer can be costly, which is why many new business owners consider. Trailer hire is a cost-effective solution especially if you’re only collecting paper two to three times a week as you grow your business.
Tip: some trailer hire companies offer special weekend rates so you can save money collecting paper during these days.
2. Reduce Trailer Maintenance Costs
Ongoing running costs can put a strain on a new business and reducing or minimising these expenses will help you grow revenue in the initial stages of your startup. Vehicle and trailer maintenance is essential to prevent costly repairs and keep you and other road users safe. With trailer hire you don’t need to concern yourself with maintenance costs as the hiring company will handle them for you.
When signing a contract with a trailer hire company, check if their trailers are well-maintained and licensed, so you’re assured of being safe on the road.
3. Grows With Your Startup
Another reason you should consider trailer hire for your paper recycling startup is that you can upgrade to larger trailers as your business grows. Enclosed cage trailers are excellent for collecting and transporting paper waste and they’re available in different sizes. Initially, you may only need a small trailer but as your startup gets busier, you can upgrade to a larger size.
With cage trailer hire, you’re not limited by how much your startup can grow. Most trailer hire companies can offer you a wide range of types to suit your growing business needs.
Final Thoughts
With over 5.4 tonnes of paper and cardboard waste being generated annually in Australia, starting a recycling business makes a whole lot of sense. However, planning your startup properly and calculating the costs of running a recycling entity is important for sustainability.
Luckily, there are many ways to keep costs to a minimum and allow you to build sustainable revenue for long-term growth.
Choose a trailer hire company with a wide selection so you can expand your startup as you get known in your local area. This approach gives you a cost-effective strategy for the long term!
