Business Ideas | Small Business Ideas: Earn Money By Recycling Used Tires

Friday, September 12, 2014

Earn Money By Recycling Used Tires | Start a Tire Recycling Business

Used tires are an environmental hazard. In landfills, a large pile of discarded tires can quickly turn into a dangerous fire that is difficult to extinguish and spews pollution. Improper tire disposal is illegal in many municipalities. Recycled tires may become entirely new products, or a substitute for fossil fuels under certain controlled conditions. Tire recycling businesses are in demand to safely handle, store and transport tire waste.

Starting a tire recycling business can help the environment. Instead of piling up in the local landfill and potentially starting a hazardous fire filled with pollutants, recycled tires can be broken down for use in other product or be retread. By learning how to start a tire recycling business, you can help preserve the environment as well as become a member of this fast-growing industry.

You really can earn over $100 a day recycling old tires in almost any populated section of North America," says Washington State's Bob Stevenson. "I've been doing it for years in a number of different cities as far east as Lansing, Michigan and as far north as Saskatoon, Saskatchewan. And, contrary to what you probably believe, you don't need a truck to get into this business, the work is not heavy, and there are plenty of old tires lying around just waiting for you to pick them up!"

Instruction:

Step 1

Familiarize yourself with tire recycling basics. You should have a registered hauler carry the tires to your recycling center where you can either retread them for sale as a used tire or shred them down into crumb rubber.

Crumb rubber is shreds of rubber that have been broken down into 3/8-inch (.95 cm) particle size. Crumb rubber is used in a variety of applications including rubber mulch, asphalt, flooring, mud flaps, and many others. Retreading tires gives them additional life where they can be resold.

Step 2

Develop your tire recycling business plan. This will help you determine everything you need to really start your business and what you plan to do with the tires when you get them. The business plan will also help you secure any necessary funding you will need to start the business. Purchase all the specific equipment you need to run your business.

The used tire recycling equipment you will need will vary based on what you are doing with the tires, but could possibly include tread shredders, tread cutters, and bead removers.

Step 3

Secure the necessary permits required to operate a tire recycling business in your area. Make sure you are in compliance with all local, state, and federal guidelines for a business of this nature. You may have to operate your tire recycling business within an area zoned accordingly, and you may need specialized licensing and permits depending on your location. You should also secure general liability insurance to protect your business, potential employees, and all your equipment.

Step 4

Find a location to operate your business. It should be located within the proper zone as according to your local laws. You should have a building where you can house all your equipment and office tools as well as can greet customers. You should also have plenty of room to hold all your tire waste.

Step 5

Hire employees. You may not need to do this right away, but as the business expands, you will hopefully get more rubber and tires than you can handle on your own.

Step 6

Secure sources for used tires. Talk to local waste management companies to learn about the best places you can get the tires. Speak to all the tire dealers in the area and negotiate deals to get all their tire waste. Look through local directories to find other locations for used tires, such as metal recycles where cars are crushed.

Step 7

Learn the basics of tire recycling. A registered tire transporter should haul tires no longer useful to an authorized facility, such as one dealing in tire recycling. Tires can be turned into crumb rubber--simply rubber shredded to 3/8-inch particle size. Recycled tires are most commonly used as fuel in civil engineering projects; rubber-modified asphalt; vehicle mud guards; floor tiles and mats; patio blocks; and surfaces for running tracks and playgrounds. Retreading tires is also a recycling option.

Step 8

Create a preliminary business plan. Decide what you will need, particularly in terms of vehicles and location. Equipment will vary, depending upon what you plan on doing, but may include everything from bead removers and tread cutters to shredders. Check national and local prices for tires and crumb rubber. In your plan, don't forget to include insurance for general liability as well as vehicles and equipment. Explore community grants for green businesses and other possible funding sources for starting or expanding your business.

Step 9

Get government approval. A business license and proper zoning for your location is only part of the approval process. A tire recycling business may require specific permits or licenses, depending upon the location. In Texas, for example, all facilities storing more than 500 tires must be registered with the Texas Commission on Environmental Quality (TCEQ). Some permits will cost a significant amount of money. Don't forget to include those figures in your final business plan.

Step 10

Locate tire sources. Your local waste management department will most likely have the most up-to-date information about tire waste in your area. It is important to make connections with local businesses that receive scrap tires. Scrap tires may come from local mechanics, department stores with tire departments or auto dealers. Some cities also have a tire cleanup or tire amnesty day to allow for discarding them at no charge.

Things Needed

Business plan
Insurance
Business License
Permits
Tire sources

Tips

A tire recycling business is considered a green business and may qualify for grants to help with the start-up costs.

Warnings

Burning old tires is dangerous and illegal unless the tires have been properly processed and the burning is controlled.
Always use personal protective equipment when handling scrap tires.

References

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Easy Tips and Ideas to Start Business

Although anyone can start a business, many people fail because of a bad product or improper research. If you want to start your own business, you can improve your chances for success before you even begin. In order to make your business successful, start strong and make sure that your idea will hold out for the long haul.

Have a Good Product

Ensure that you plan to sell something useful. Although you may think that your product is important or special, that doesn't mean the general public will agree. Ask friends, family and strangers what they think of your product. If they don't seem that interested, ask them why. With their suggestions, you can either improve the product or scrap the idea completely. According to Brad Sugars of Entrepreneur magazine, most small businesses fail because they sold a product that didn't have an adequate market. This also applies to small businesses that provide a service. A lawn-care business might be useful for part of the year in a northern state, but it is in-demand year-round in the south. Consider whether people will actually want to use your service and get constructive advice from those not afraid to give their opinion.

Research Local Businesses

Research local companies before starting up your own business. This will not only give you an idea of the amount of competition you will have, but it will also help you price your product or service. If you're looking to start a wedding photography business, you may find during your research that the market is over-saturated in your area. If not over-saturated, you should contact each business and ask them for a price list. Alter your prices so you can stay competitive with the competition in town. Researching similar local businesses will also help you decide where to locate your business location. Try not to start up a store or office close to another business of your type. If your small business is located away from similar business types, this will cause locals to choose you over businesses that are farther away from where they live.

Get Professional Advice

You may know someone who has started their own successful business. Ask him for advice and listen to his stories of how he started his company. You may gain useful advice on the good and bad ways to start a business. Local entrepreneurs can also introduce you to local product providers or advertisers that you may not have met without their help. Accept any advice with open arms, especially if the advice is coming from someone successful in the area.

How to Calculate Business Start Up Costs

Starting a business in no easy endeavor. It takes a great deal of research, perseverance and hard work. While sweat equity will make your small business more successful, you will most likely need real capital to get the business started. Before you start raising capital and/or investing your own funds, the first thing you need to do is determine the total start-up costs.

Step 1

Determine your costs of sales. For most small businesses this means inventory, the cost of raw materials, manufacturing equipment, shipping, packaging, and warehousing. However, not all businesses sell products. In this case, the cost of sales is primarily the direct labor involved in making the sale. For example, to open a small shoe business entails purchasing enough inventory ($10,000) to stock the store.

Step 2

Determine professional fees. Planning your business structure, i.e., limited liability corporation or general partnership, means hiring an attorney. There may also be the need to pay an attorney for help with establishing trademarks, copyrights, and patents. In this scenario, that puts total professional fees at an estimated $20,000.

Step 3

Determine technology costs. Technology can greatly reduce the cost of labor for small business if used effectively. Most small businesses require computers, printers, cell phones, website development, Internet access, software applications, information security, data storage, and outsourced information technology (IT) consulting. If the cost of technology is $10,000 to start, add an additional $5,000 a year for maintenance (hint: maintenance is not included in start-up costs).

Step 4

Determine administrative costs. This varies with business types and may include items such as business insurance, office supplies, product packaging, parking, rent, express shipping, desks, chairs, fax machines, phones, or anything else necessary to operate the business daily. A good estimate for start-up administrative costs would be $5,000 for the first six months.

Step 5

Determine initial sales and marketing costs. Now that you have your product, you need to let folks know about it. Sales and marketing costs generally include marketing materials for presentations, printing stationery, business cards, advertising, trade show events, and public relations. These initial sales and marketing costs can add up to $3,000.

Step 6

Determine the wages and benefits needed to secure a staff. This includes employee salaries, benefits, workers compensation, and payroll taxes. Let's put the cost of wages and benefits estimated at $20,000 for the first three months of business.

Step 7

Add all costs associated with starting the business for a total. Be sure to only include business start-up costs that will be incurred in the first three to six months of operations. For this example, the calculation is: $10,000 + $20,000 + $10,000 + $5,000 + $3,000 + $20,000 = $68,000.

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