Is waste recycling profitable as a business
Hello dear readers of dohodinet. u. In Russia and neighboring countries there is a problem of waste disposal and recycling. This niche is currently free, so anyone can become a leader in this area. Knowing how to make money on garbage, you can use an almost free resource for enrichment and at the same time bring huge benefits to the environment.
Earning money from garbage is a profitable and promising direction, as it is one of the few unoccupied niches on the modern market. With the right organization, the initial investment can pay off in 6-8 months of work, depending on the volume.
Advantages of the garbage business:
- government support;
- cheap and sometimes free resource (waste);
- lack of seasonality - there is garbage all year round; <
- versatility - no need to look for a special target audience, the problem of disposal is relevant for everyone;
- minimum competition;
- high profitability;
- minimal risks ;
- an established business can be profitably sold;
- the ability to stay afloat even in the event of an economic crisis.
How to start a garbage business
It will not work to start without start-up capital, since the specifics of the business require the purchase of equipment, lease or purchase of special equipment, a landfill, industrial premises, and payment of personnel.
This business has other disadvantages that need to be considered when building a strategy.
In addition to large investments, an entrepreneur risks facing public opposition, for example, if he plans to build a waste recycling plant. In many regions there are still no such enterprises for this very reason.
Low awareness of the population about the risks of environmental deterioration as a result of the plant's operation leads to the fact that people are afraid of such innovations due to toxic emissions. But in fact, with the right approach and the use of modern technologies, the ratio of risk and benefit is acceptable.
Initially, it is worth deciding on the direction and deciding what kind of garbage business will be. To do this, you need to conduct analytics and get answers to the following questions:
- what are the needs of the region in which the provision of services is planned;
- what is the level of competition;
- how great are the chances of becoming a leader in the chosen niche;
- what are the risks and prospects.
Further actions concern the practical side of the business. You need to make detailed calculations:
- how much money is needed to start a business;
- what is the cost of maintaining a business per month;
- payback periods and net profit;
- what are the maximum and minimum prospects for profitability.
Nowadays for aspiring entrepreneurs there are a huge number of different opportunities for starting their own business. In most cases, they opt for entertainment and catering, trade and rental. However, some people use the ideas of a business on garbage, its recycling, in some cases they can bring millions.
This area provides unique opportunities for entrepreneurs in our time. Firstly, the low level of competition in the market, and secondly, there are practically limitless opportunities for the expansion and development of the sphere. Despite the fact that such activities have not yet gained popularity in the CIS countries, the countries of the European Union, in which special attention is paid to the environmental friendliness of enterprises, and the state contributes to the development of small business, have appreciated this segment. In addition, in the European Union, this industry is distinguished by a high level of competition, and it is extremely difficult to start an activity in it.
Business ideas for garbage and its recycling can be completely different - plastic, cardboard, broken glass and household waste is an inexhaustible resource. According to expert estimates, every inhabitant of our planet leaves about 250 kilograms of various waste in 12 months.
Thus, by choosing the right strategy for the work and development of the enterprise in the domestic market, a businessman gets the opportunity to have significant profits in this segment.
Garbage business ideas: required documentation, preparatory activities
Before opening an enterprise that carries out its activities in the field of waste processing, it is necessary to obtain a special license from the Ministry of Ecology.
It should be noted that this procedure has a number of difficulties. It is necessary to carry out a specialized examination of an ecological type, and obtain its conclusion. It should be noted that a permit to conduct activities in this area is issued once and is valid throughout the entire period of the company's operation.
In addition, permission from the sanitary and fire authorities will be required.
Important! It is necessary to draw up detailed project documentation in advance, which will describe all the technological features of the production process.
Obtaining a special work permit will cost about 5,500 rubles, and the conclusions of fire and sanitary commissions will cost about 300-1000 rubles.
Recycling of waste paper is not only a useful activity for preserving the environment and natural resources, but also a very profitable business. In the article, you will find out whether the business of recycling waste paper is relevant, how much and how you can earn in Russia.
Relevance of business idea
It is profitable to deal with waste paper, as the return on investment is 100%. The profit will not be long in coming: processing and production brings in more than 5 million rubles a month (per paper) and 9.5 million rubles. (for cardboard).
There are several key benefits:
To start the education process you will need:
Before starting a business, make a business plan. You can develop it yourself, but it is more advisable to contact financial consultants. It will help you determine what type of paper recycling is worth doing, what you need to purchase and how much money is required.
Business is best built in cooperation with resellers of recyclable materials. Then it will be possible to open a waste paper processing plant.
Types of waste paper processing business
Individuals who started collecting and then processing raw materials at the beginning of their enterprise can rent a truck to collect and transport raw materials. So you will save money and give the driver the opportunity to earn extra money. Instead of a warehouse, you can use a garage or any non-residential premises.
There are several types of paper processing. The most profitable types of investments and business ideas are:
Waste paper recycling can be used for the production of paper towels, diapers, disposable handkerchiefs.
The first option is suitable for people who start a business without large investments and investments. There will be no need to rent a large room, qualified personnel, or purchase expensive equipment for processing waste paper. All you need is a chopper and a press. At the same time, you will have a good income, which in the future can be used to expand production.
Waste recycling as a business is an extremely promising investment activity. This socially significant activity has a positive impact on the environment.
It was not profitable enough 2-3 years ago. Recycling of recyclable materials, garbage disposal to landfills gave great profit. A lot has changed since then. Today, household waste is at least 60% recyclable.
Business Idea Concept
The average person throws out up to 250 kg of garbage per year. The problem of waste disposal - reuse has become urgent.
Many components of garbage can be recycled, but up to 96% of the waste is sent to landfill.
Benefits of a waste recycling business:
- Since there is little funding for waste recycling, the local authorities tend to be very supportive of the waste disposal business. The city administration provides financial support and helps to find industrial premises.
- Companies that recycle waste are always in demand. Disposal and recycling of waste allows you to save primary raw materials. New companies in this segment are created annually.
- Sorting complex can be used. This is an inexpensive equipment created by domestic manufacturers. Its application will reduce costs.
- High economic efficiency. According to professionals, the profitability of a garbage collection and disposal business can be up to 80%.
- Garbage is a valuable raw material. The waste recycling business is profitable as there is very little competition in this segment.
Starting a business from scratch
Everything useful should be removed from the garbage whenever possible. For this, it is important to create the appropriate conditions.
- The paperwork for commercial activities takes several months. Obtaining a license from the Rosprirodnadzor Department is a prerequisite.
- In order to issue a permit, an environmental audit is carried out by the local Department of Environmental Management. A project with a detailed description of the technological process must be submitted to the water and utilities authorities, Rospotrebnadzor, and fire inspection.
- A sanitary zone of 500 m should be established around the waste recycling facility as required by the regulatory authorities. Based on the results of this work, a conclusion is made. At least 2 thousand dollars must be invested in order for the production facility to meet the requirements of industrial sanitation and fire safety.
Financial component of entrepreneurial activity
In the economic realities of modern Russia, trying to open your own business is akin to playing roulette. The competition for raw materials and sales markets is so high that a newcomer does not always manage to gain a foothold in the market, and even more so, to develop his business at least to an average size. Therefore, already at the planning stage, all possible risks, pros and cons should be calculated. As practice shows, one of the most win-win options today is the waste recycling business.
Waste recycling is the most promising business
According to statistics, every year the population and industrial enterprises of Russia produce up to 44 million tons of various waste. Of all this volume, only a third is processed, and the rest is deposited in solid waste landfills. Previously, they tried to solve the problem of a growing garbage bank by simply burning or burying them in the ground. However, such actions lead to a sharp deterioration of the ecological situation, poisoning the soil, groundwater and the atmosphere.
The solution to the problem of efficient and safe disposal of industrial and household waste is seen only in one thing - the development of a wide network of waste processing enterprises. In Western Europe, hundreds of private organizations are engaged in waste processing, which generates intense market competition with all the ensuing consequences. Waste recycling as a business in Russia is practically undeveloped, which provides a lot of potential opportunities.
Pros and cons of a recycling business
"Garbage business", like any other commercial enterprise, has its undeniable advantages and pitfalls. The pluses include:
- Fast payback periods. The funds invested in the waste recycling production will pay off quickly enough. With skillful and effective business management, these terms are about 3-5 years.
- High profitability of business on waste, reaching 30% for each ruble invested. This is a pretty good indicator, considering that, according to Rosstat, the profitability of medium and small business in Russia is about 12-15%.
- Government support for businessmen who decided to open a waste recycling enterprise. From the side of the federal authorities, such businessmen are provided with tax incentives related to the cost of purchasing equipment, renting / purchasing / building premises.
- Local municipal authorities are also ready to provide all kinds of assistance to waste recycling entrepreneurs. Responsibility for maintaining cleanliness in a city or village lies entirely with the local authorities, therefore a private waste recycling business relieves a significant part of the current worries from the municipal administration.
- Almost unlimited amount of free raw materials, available in large quantities in any region of Russia.
- Low cost of raw materials. Unlike many other industries, waste recycling as a business requires minimal costs for the purchase of raw materials. You will have to spend only on containers for collecting waste, and on specialized vehicles for their delivery to the place of processing.
- The demand for secondary raw materials that have passed the stage of initial processing is traditionally high among domestic industrial enterprises. Therefore, a waste-recycling businessman does not have to worry about the markets for his goods.
- There is another motivating factor for entrepreneurs with increased social responsibility - a moral one. Recycling of garbage allows you to solve the problem of environmental pollution of native nature, to preserve it for future generations.
But, despite such a large number of positive aspects, persons who decide to start their own business in this area should approach this as responsibly as possible. There may be problems with the collection, delivery, sorting of waste, as well as financial costs for unforeseen expenses and the like.
Often there is a rejection of the neighborhood with a waste recycling plant on the part of local residents who start slow litigation. This litigation often takes away from the entrepreneur a lot of time and effort that could have been spent for its intended purpose - to start production. Therefore, first of all, it is necessary already at the initial stage to draw up a business plan for waste processing, which will take into account all possible force majeure situations in advance.
How to start a garbage recycling business