In addition to benefiting the environment, used tire recycling can be a profitable business. Millions of used tires provide a continuous source of supply of recycled tires that are used in three markets: tire-derived fuels, civil engineering applications and ground rubber applications or rubberized asphalt.
Before starting a tire recycling business, conduct a thorough market analysis to identify possible customers in your area and to find reliable sources of supply.
1.Finding Sources of Used Tires
2.Finding Customers for Used Tire Products
An owner needs to know how to operate all of his equipment so that he can teach his employees to work productively and not be injured.
Prepare a Business Plan
After making a thorough analysis of potential sources of supply and making a list of possible customers, prepare a business plan to determine how to build a profitable business recycling tires. Starting up a tire recycling business requires a considerable investment of funds in equipment, site preparation, trucks and wages. The path to profitability must be carefully thought out with financial projections and the determination of the break-even sales level. The business plan will be needed when talking to banks and investors for loans and financing.
Site Location Analysis
The location of the plant must comply with local zoning regulations. Tire recycling is a noisy, dusty business, so there are restrictions on where a municipality will allow these plants to be located.
The site must be large enough to accommodate storage of used tires and recycled products. It needs a building to house the equipment and an office and must have easy access for trucks coming and going.
Licenses and Permits
A tire recycling plant needs approval from local, state and federal agencies, especially the environmental departments. Some of these permits can be expensive, and they should be included in your business plan expenses.
Adequate Insurance Coverage
A tire recycling plant must have adequate insurance coverage. It has safety risks and the potential for environmental mishaps. It needs protection from product liability lawsuits.
Recycling tires can be a profitable business, but it must be carefully planned and supported with sufficient financial capital to succeed. With millions of cars and trucks on the roads, there will be a continuous source of supply. The challenge is finding the most efficient collection methods and producing the products that are in demand by other manufacturers in the area.
