Waste recycling involves waste wood collection, sorting. The wood is repurposed, repaired or recycled and sold to end-users. Practitioners provide environmental service, including direct and indirect labor.
Things to consider before starting the business is type of equipment, landed space, labor, utility truck, labor costs. First write a business plan and carry out a feasibility study before embarking on the job.
Things to Consider Waste Wood Recycling
- Write business plan
- Carry out feasibility study
- Secure funding
- Lease factory space
- Purchase equipment
- Register the business
- Get insurance
- Operational license
- Tax identification number
- Network with waste wood suppliers
Why the business is lucrative
The business is highly profitable and environmentally friendly. An operator requires moderate capital investment to lease landed space, machinery and labor.
Advantages are low tech, low skilled workforce, abundant raw materials and huge profit. Downside huge capital investment, high labor costs. Common wood waste include industrial wood waste, building, discarded or old furniture.
- low tech
- low skilled workforce
- abundant raw materials
- huge profit
- huge capital investment
- high labor costs
- strict government regulations
How they make money
They make money from sales of repurposed products and waste wood collection. Cost include transportation, labor, utilities and state fees. Customer base are carpenters, building contractors, households, haulage companies, residential households
- purchase of waste wood
- equipment maintenance
- state fees
- building contractors
- haulage companies
- residential households
There are different types of recyclable wood in the business. Common category includes short wood, timber, damaged pallets. More include rotten wood, contaminated wood, discarded wooden furniture, and timber.
- short wood
- damaged pallets
- rotten wood
- contaminated wood
- discarded furniture
Waste wood is produced into different end products. Repurpose them into tables, chairs, benches, boxes. Cut into firewood, building material, artworks.
Startup costs are labor costs, purchasing of waste wood, transportation costs. Others include buying a used truck, lease landed space, equipment, legal and insurance cover. Secure funds through target savings or borrow from traditional lenders. Approach commercial or merchant banks or join a cooperative.
Register the recycling business as an enterprise or limited liability company. Lease factory location and buy equipment, get tax identification number, insurance. Others are operational license then conform to environmental and waste handling rules.
Make sure the location has good roads, utilities and large space. Secure the location from weather, theft. Equipment are truck, shredder, carpentry tools like nails, hammer, saw.
The final product will determine the market base. Furniture is sold to residential homes, small business owners, property developers. Advertise the products on electronic, print and online channels.
How to Start Woodwork Business
Woodwork involves creating functional items like wooden toys, chairs, cabinets. Others are decorative items, tables, boxes. The business requires knowledge of carpentry and woodwork.
Steps to Start woodwork Business
Write a woodwork business plan and study the competition. Find out legal requirements secure funds, good location, equipment. Network with raw material merchants, develop an effective marketing strategy.
- Write a woodwork business plan
- study the competition
- register a business name
- get insurance
- personal tax identification
- secure funds
- find good location
- buy equipment
- network with raw material merchants
- develop an effective marketing strategy
Legal and funding
Try target savings or reach out to family and friends for funds. Secure low interest long term loans from commercial or trade banks. Register a business name, personal tax identification number and find out state permits. There are environmental safety protocols, insurance considerations.
- register a business name
- personal tax identification number
- state permits
- environmental safety protocols
- target savings
- bank loans
- venture capitalist
- partnership funding
- crowd funding
- core investor
Rent a shop
Rent a shop in a shopping complex, heavily trafficked area. The shop should have a front store and production space at the back. Make sure the products are high quality with good finish. Staff requirements are driver, sales clerk, sales representatives, store manager, cleaner.
Quality products speak for themselves. However proper marketing will drive sales over the roof. Use signboards, billboards, business cards and flyers. Advertise in local newspapers, organize local events, and build a website.