Even before the environmental movement started getting national attention, recycling unwanted and discarded consumer goods was a profitable business. Now the recycling business is booming. The Environmental Protection Agency is just one federal government resource that helps individual entrepreneurs and state or local governments create recycling plans. Recycling consumer electronics is a potential niche that not only makes a profitable business, but also helps our environment. Depending on your location and your skills, you won't need a huge capital outlay to start recycling electronic equipment.
Instructions
Starting an Electronics Recycling Business
1. Draft a budget, marketing plan and operations plan for your business. Design or buy forms that you need to keep tax records. Plan your schedule so that you have time every week to keep track of your income and expense and to review your marketing and operations plans.
2. Assess the market opportunity in your area. Make a list of several categories of electronic equipment users that you can contact about picking up their discarded electronics. In addition to individual consumers, consider businesses, churches, nonprofit organizations, healthcare facilities, public and private schools and day care facilities. Depending on your area, your city and local government and utility providers might also be great prospects.
3. Review the Environmental Protection Agency's regulations on electronics recycling. Get information about state and local recycling regulations and services already in place. Consult your local government about any permits and licenses that your business may need. Check with your insurance company about the use of your personal vehicle in your business. Get additional coverage or a rider, if necessary.
4. Locate buyers for the electronic equipment that you plan to collect for your recycling business. Some larger cities have centralized recycling locations run by the government that accept recyclables from consumers and entrepreneurs. In other cases, you may need to find companies that pay for recycled electronics by consulting business directories and your local phone book.
5. Decide whether you will collect electronic equipment from both consumers and businesses. Initially it may be more efficient to collect unwanted electronic equipment from businesses. In most cities, businesses tend to be grouped close together due to zoning laws. You may spend less time collecting equipment in an office park than trying to contact individual consumers.
6. Find out the rates that master recyclers pay for used electronics in your area. This can range from a few cents per item to several dollars. You may need to identify more than one electronics reclaimer that will accept your recycled electronics. Some may specialize in audio or video equipment only and refuse items like portable telephones and computers.
7. Set up a fee structure that you can advertise to potential prospects for pickups. You can offer to pick up discarded electronics from prospects for a fee or at no cost to them. Some recyclers also elect to provide a small financial reward as an incentive for people to hold discards for them instead of a competitor. Estimate your potential profit and determine if splitting it with the equipment donor is practical.
8. Make a schedule for picking up equipment from customers that have agreed to give you their discarded electronics. Let your prospects know how frequently you expect to visit their area. Give prospects a way to contact you to schedule special pickups, if their normal equipment disposal schedule changes.
