Most Nigerians are probably not aware of the fact that garbage and thrash thrown out of homes after use are great sources of income as most of them are recyclable items.
Recycling is an economic and environmental activity, in the sense that it could be a profitable business and at the same time contribute to the health improvement of citizens. It could be seen as Win-Win for an individual and his environment at large.
Recycling could simply be explained as the refurbishment of waste products into new and useful ones. Asides from protecting the environment, being profitable, recycling does help conserve natural resources and further more, creates employment opportunities.
Recyclable materials could be:
- Paper wastes.
- Glass wastes.
- Plastic wastes.
- Aluminium wastes and so on.
Here are some helpful steps on how to start up a recycling business;
- Firstly, pick a niche. The word niche implies a particular segment of the market for a particular product or service.
So if going into the recycling business, one must conduct a thorough research on the recycling market to know which business already exists in that area, how sales are being conducted and how the pricing systems work works. It is best advisable to pick a niche not too saturated but in demand. While One can specialize in one or more of the earlier mentioned types of recyclable materials, other areas include; electronics recycling, scrap gold recycling, tyres recycling, wood or timber recycling and printer cartridge recycling.
- Create a budget. The capital solely depends on the size/scale of the business an individual wants to run. Budgets are importantly needed for licensing and permits as they are essential to run the business. Not also forgetting every possible expenses that would arise.
· Create A Business Plan
Recycling business requires a thorough business plan to begin. All the research you conducted will help you write a detailed business plan. A business plan is a formal document containing the details of how you will run your business. With your business plan, you can apply for funding and grants to start out your business.
· Get Capital For Your Recycling Business.
Once you’ve estimated the needed amount to start your recycling business with, the next thing to do is to source for a way to get it. You have different funding options. One of the funding options available to you is to obtain a bank loan. In reality, small business owners find it difficult to obtain loans from banks because of the inability to provide the required documents or collateral. However, there are several funding options; friends and family, international grant opportunities.
· Register Your Business With CAC
In Nigeria, the recognised body for registration of new businesses is Corporate Affairs Commission (CAC). It is important to register your recycling business as soon as you start so that you don’t encounter challenges and harassment from government officials when you begin operations.
One can register as a sole-proprietorship business (Business Name) or as an incorporated entity (Limited Liability Company)? You can also register the business as a social enterprise (NGO).
The registration procedures are easy and can be done online via CAC’s portal.
· Obtain The Needed Permits And Licenses
The recycling business deals with the environment so, it attracts certain licensing and permits before establishment. Therefore, endeavour to get all necessary licenses and permits before you begin operations.
For instance, one of the bodies that issue recycling license in Lagos is the Lagos Waste Management Authority (LAWMA). Once you get licensed with them, your name will be listed on their website stating the category you belong to and your certificate number.
· Acquire The Relevant Equipments/Machines
At this point, you are ready for business and you cannot run your recycling business without equipment or machines. Hence, you need to purchase them or Lease them depending on your budget.
Generally, the equipment you need includes: scales to weigh your plastic waste, bins, sorting and grouping equipment, washing gears, etc.
Truck, vibrator, feeders, Magnetic separators, Baling machine, Compactors, Grapplers, Metal Shears
Another way to make money from your equipment is to lease them out to recyclers and collect hire fee in return.
· Acquire a space or land in a good location.
It is important to have your business location where people are most inclined to drop their recyclable wastes. That way, people can freely bring their recyclables to you.
Importantly, ensure your chosen location is approved for such a business. You can approach your local government to find out if your proposed location is approved for your kind of business to avoid future challenges.
Asides from having an open space for material processing, you can also get an office to secure your equipment against theft.
· Hire Employees.
The employees you need in the recycling business are broad. When you begin, you will need people that will help you with the collection of recyclables and there’s no limit to the number of persons you can employ.
· Promote Your Business
There are many manufacturing companies in need of your recycled materials and now is the time to reach out to them. Advertisement is the oil of your business and you mustn’t joke with it.
Apart from setting up a website for your company, ensure you open a page social media. Additionally, there are other ways to promote your product such as word of mouth, newspaper advert, collaborations and partnerships, etc.
Once all these steps are followed carefully and accurately, it’s a certainty run to a well-running and income bringing recycling businesses.
