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24 Tips to Open Waste Oil Recycling Industry in Nigeria

Waste Oil Recycling Industry: Every internal combustion driven automobile must be lubricated with oil.

The friction inside a running engine breaks down that lubrication.

This means the oil must be changed periodically to protect the engine.

Many car owners change the oil themselves to save money.

This oil is often improperly disposed of in a way that causes environmental contamination.

State governments have taken notice of this predicament and have begun to offer incentives to garages that collect waste oil for recycling.

You can offer oil recycling service at your garage as a way to bring in customers.

Waste Oil Recycling Industry

Waste Oil Recycling Industry: https://www.mobil.com/en/lubricants

Read also: 28 Tips to Partner with Dangote Company Nigeria

Once you’ve decided you want to start a small business, formulated your business plan.

Lined up financing, and secured a site, the time will finally come to actually open up shop.

While planning a business may present challenges.

The actual act of opening a business and bringing the business concept to fruition has its own set of difficulties.

To have a better chance of long-term success, you need to get your business off to a good start.

Here are a few tips on how to legally establish your business, hire your first employees, spreading the word, and organizing a grand opening.

1. Ensure you have a business plan.

A business plan is critical to the success of a business and can be seen as a plan that describes your business, products/services, market, and describes how your business will go about expanding for the next three to five years. It is essentially a “road map” for your business to follow going forward.

See also:28 Tips to Partner With Hardy Oil and Gas Nigeria Plc

2. Determine the legal structure of your business.

Before starting your business and filing the necessary papers, it is important to decide on how your business will be legally structured. Generally speaking, you will be establishing either a sole proprietorship; partnership; corporation; or limited liability company (LLC). There are important legal and tax implications for each.

  • A sole proprietorship is owned and run by one person, and there is no distinction between the owner and the business. This means that all the business’ profits, losses, debts, and liabilities are your responsibility. Choose this if you are the sole owner and want full responsibility for the business.
  • Partnership. A partnership occurs when two or more people share ownership. In a partnership, each partner has equal share (unless specified) in the profits, liabilities, and management of the business. This can be useful in terms of pooling capital and expertise to start the business.
  • Corporation: A corporation is an independent legal entity owned by shareholders. Generally, this structure is not appropriate for small businesses.
  • Limited Liability Company (LLC): An LLC is similar to a partnership, except members are protected from personal liability for actions of the LLC. For example, if the LLC is sued, the personal assets of the partners are typically exempt. If you are worried about personal exposure to lawsuits or debts arising from your business, this may be a good option.

3. Form the necessary legal structure.

A different procedure exists for forming each one of these structures.

And some require more work while others are extremely simple.

See also: 15 Marketing Methods for Planning Diaper Business in Nigeria

4. Register your business name.

Unless you are running the business under your own name, such as “John Smith Painting,” most states require you to register a “Doing Business As” (DBA) name for tax and legal purposes. Registering a DBA is done with your state government or county clerk’s office. Search the specific requirements of your state online.

5. Obtain a business license.

The city or county which you operate within will require a business license. Typically, these forms can be found on the website for your city.

  • These forms will require your business type, address, # of employees, EIN, and possibly information regarding revenue (estimations will work fine here).
  • Keep in mind that licensing requirements often apply to online and home-based businesses as well as typical brick-and-mortar businesses. Requirements do vary according to location, so be certain to contact your local and state government to determine specific requirements.

Read also: 13 Tips to Start Handmade Art/ Designs Business in Nigeria

6. Inquire as to other necessary permits.

Unfortunately, each city or county has different permit requirements for businesses. These can include things like “Home Occupation Permits” for home based businesses, “Alarm Permits” if your business requires a commercial alarm, or various alcohol and firearm permits.

  • Contact your local government’s permitting bureau or similar authority, or seek out the local chamber of commerce or business association for advice.

7. Purchase a large plastic container

Purchase a large plastic container that holds at least 10,000 gallons. Pay a contractor to install this container underground on your place of business. Only tank installation contractors are qualified to do this type of work legally and safely, so choose wisely to avoid fines and the loss of your business.

See also: 17 Guides on Setting Up Gelato Business in Nigeria

8. Review your state’s guidelines:

Review your state’s guidelines for oil collection and recycling. Modify your company’s collection protocol to conform with the guidelines. Begin offering oil recycling service to your customers. Pay each customer the amount required by the state for each quart of oil turned in for recycling.

Waste Oil Recycling Industry

9.  Save a copy of every receipt:

Save a copy of every receipt you write for the payments made to customers for oil. Fill out the appropriate paperwork and turn it into your state’s regulatory agency periodically for reimbursement.

Read on: Top 20 Hotel Franchise Business in Nigeria

 10. Contact an oil disposal company.

Contact an oil disposal company. Research every potential company to find an ethical partner that strictly adheres to all state and federal environmental laws. Arrange for periodic pickup of the waste oil you collect.

Waste Oil Recycling Industry

11. Establish a bank account for your business.

It is very important not to mix business and personal finances, as this can lead to issues with the IRS. Having separate bank accounts for business and personal transaction simplifies accounting and makes tax requirements easier to understand.

  • To open a business account, simply contact your local bank or credit union.

12. Hire the right people.

The first impression is critical for a new small business, and unless you’ll be doing all the work yourself, that impression will be made at least in part by the people you hire.

  • Ideally you can find someone who is familiar with the business — someone who has twirled dough if you’re opening a pizza shop, for instance — but even more important is finding a person who is willing and eager to learn. You need employees who want to learn to do things (and represent your business) your way.
  • You do have to be willing to let go a little, however. This business has been your baby for a long time, but as you let it out into the world, you’ll need help taking care of it. Look for employees who are eager to contribute ideas and adapt as the business goes through its early growing pains.
  • Do your homework. Look over resumes. Call references. Don’t just hire your nephew to make your brother happy. (Wait until your business gets on its feet.)
  • Key questions like “Can you provide an example of a problem that you successfully solved?” may offer insights into a potential employee’s ambition, ingenuity, and work ethic.[7]. Keep in mind that such questions are common, however, and the interviewee may have prepared stock answers already. (An inability to answer effectively is thus a bad sign.) In addition, try to think up a few problem-solving hypotheticals, for instance, that are specific to your small business.

Read on: 6 Ways for Bamboo Products Making Business in Nigeria

Waste Oil Recycling Industry

13. Prepare your site.

Whether you have a physical or virtual business site, the impression it makes on your initial customers will go a long way toward determining your chances of success.

  • If your business involves a storefront — a candy shop or used-book store, for instance — set up your space to represent your vision for the business. Coordinate color patterns and décor with your logo, for example, or consider personalizing it with family photos to establish your essential connection to this business. Consider hiring a professional interior designer and/or decorator.
  • A web presence is becoming (if not already) essential for any new small business, so don’t take this aspect for granted. Especially if your business has a substantial web-based component, make your site intuitive, manageable, and suited to the brand identity you want to build. Hiring a professional web designer may be a good idea.
  • If your budget is tight, and/or your business does not require a traditional storefront, don’t overspend on a fancy space. A local coffee shop can make a good place to meet clients, or you can rent a space as needed for such gatherings. Wait until your business has a solid foundation before expanding into a nicer space.

14. Consider a “soft” opening.

There is no rule that says your first day of business has to also be your Grand Opening. Give your business a chance to work out the kinks before announcing itself to the world.

See also: 16 Top Digital Marketing Services in Nigeria

Waste Oil Recycling Industry

15. Start early.

Don’t wait until opening day, or even until you know when opening day will be. Be proactive in establishing brand awareness and generating anticipation. A “coming soon” sign on your in-preparation storefront is a good start, but not enough on its own.

  • Preserve the bulk of your initial marketing budget for the Grand Opening, but before that time utilize budget-friendly options like flyers, targeted direct mail, and a social media presence.
  • Try to build your brand even before your location is ready. If you’re going to be selling handcrafted necklaces or handmade pierogies, seek out a local craft or food festival where you can set up a table and sell your wares. (Be sure to advertise your forthcoming retail presence.) If you’re an accountant, maybe you can volunteer to offer tax advice at the local community center or library (and hand out business cards).

16. Access to Re-Refined Oil

In some cases, used oil can actually be re-refined and then used again. This is the case with some types of motor oil. This means that the oil doesn’t have to go through a rigorous break-down process and then used in the manufacturing of other items. It can simply be cleaned and used again.

So by recycling oil, you’re giving companies access to the raw materials needed to make even more oil. This can limit the dependency on new oil sources and over time even impact the price of purchasing oil. In some cases, recycled oil can also be used in other items, which can lead to other cost saving benefits for businesses that purchase those items. But re-refined oil is one of the biggest examples.

17. Establish a marketing budget.

The run-up to opening and first few months of operation may very well make or break your new small business, so make sure you give your initial marketing push a strong effort.

  • One suggestion is to dedicate 20% of your first year’s marketing budget to your Grand Opening. This amount should be significant enough to spread your message widely at a time when your ads are likely to be their most effective, but at the same time isn’t an “all your eggs in one basket” situation that leaves you with limited ability for subsequent advertising.
  • Spend, for example, $4,500 advertising your Grand Opening, because that amount should be sufficient for two media buys. If that amount is beyond your reach, you may be able to utilize a mix of flyers, direct mailings, promotional items (balloons, banners, etc.), and a “sign spinner” at a busy intersection for around $1,500.[10]
  • This, of course, assumes you have a fairly large marketing budget of $22,500 ($4,500 is 20% of $22,500). Since many businesses have much smaller marketing budgets (maybe only a few thousand dollars), always work within whatever 20% of your marketing budget is.

See also: 20 Top Betting strategies in Nigeria

Waste Oil Recycling Industry

18. Use traditional media.

If your marketing budget allows, consider using traditional media like radio or newspaper. If you can manage television advertising as well, it is always a good idea to diversify your ad presence.

  • Before tossing radio aside as an outdated media format, note that some three-quarters of U.S. adults listen to radio at least occasionally, and often do so when driving somewhere. Thus, radio can be a particularly good advertising method for retail stores and restaurants. Target your advertising by format (Top 40, Country, Talk, etc.) and time of day to maximize impact.
  • Newspapers are popular among over-35 adults, but even a decent percentage of younger adults read a paper occasionally. Newspapers are still a cost-effective way to reach thousands of potential customers.
  • Consider including coupons as well; they provide not only motivation to visit but a tangible connection between a potential customer and your business. It is also easy to track their effectiveness, as more coupons coming in mean they are doing their job.
  • You may assume that TV advertising is beyond your small business budget, but there are options for producing and placing lower-cost ads, sometimes with the assistance of the local broadcast network. Consider bunching your ads during programs relevant to your targeted customer base — TV judge shows for a legal practice or the nightly news sports report for a golf training academy, for instance — so that you seem like a major sponsor.

Waste Oil Recycling Industry

19. Consider when to make your opening “grand.

As mentioned, there is no requirement to hold your Grand Opening on your first day of business, and it is often advisable to wait even a couple of weeks before staging it.

20. Cleaner Land and Water

When people dispose of oil improperly, like dumping it down storm drains or just throwing it away with the rest of the trash, it can lead to major contamination issues. In fact, the EPA states that the oil from just one oil change can contaminate up to one million gallons of water.

So if you dispose of oil improperly, all the heavy metals and toxic chemicals can have a major negative impact on your local soil and water supply. Recycling ensures that those dangerous materials stay away, thus making your community a safer and healthier place.

Waste Oil Recycling Industry

21. Make it an event.

Work hard to build excitement in the days and even weeks leading up to your Grand Opening.

  • Use the term “Grand Opening” in your marketing — it makes it seem more special than just an “open for business” notice. Create excitement by offering prizes, giveaways, demonstrations, special deals, etc., for visitors that day.
  • Hire a photographer to capture the event for media (traditional or social) consumption. Bring in live entertainment, extra staffing, even security if you expect an especially large crowd.
  • If your business and/or its location aren’t conducive to a large public Grand Opening, consider having an event more along the lines of a “launch party” at a nearby restaurant, banquet hall, etc.

22. Guarantee a positive customer experience.

Plan ahead and do whatever you can to ensure that attendees walk away from your Grand Opening with a positive first impression of your new business. Oversights as simple as inadequate parking, long food lines, or running out of paper products in the restrooms can sour an otherwise enthusiastic reception.

  • Have extra staff on hand to make sure customers don’t have to wait too long for service or attention.
  • If parking may be an issue, try to work out arrangements beforehand with other businesses or community groups — perhaps setting up satellite parking at a nearby church, for instance.
  • Send attendees home with a token of your appreciation — ideally something with your logo on it — along with a coupon / special deal for a return visit.

See also: Top 95 Income Earning Business for Women in Nigeria

Waste Oil Recycling Industry

23. Involve the community.

Establish your connection to the local community from the very start of your business. Let people envision your business having a positive community impact for years to come.

  • Invite the local press to your event, but also other local business and community leaders. Network with as many as possible and establish yourself as a member of the local team.
  • If possible, align your Grand Opening with a community event, when local crowds will already be gathered. Make it seem like a part of that larger celebration. Sponsor the entertainment at the holiday lighting celebration or midsummer festival. Advertise both your business and your deep connection to the community.

24. Improved Public Image

Recycling in general can have a positive impact on your business’s public image. Consumers prefer doing business with companies that have positive environmental and social practices. And employees prefer working for those companies as well.

Specifically in the case of oil, if your business contaminated water or soil through the improper disposal of oil, it could lead to a major PR disaster, especially since there are laws in place to discourage the improper disposal of used oil.

Waste Oil Recycling Industry

Conclusion

When considering the most important tools for your small business, oil might not immediately come to mind. But since it can be used in everything from vehicles to manufacturing equipment, there’s a pretty good chance your businesses uses a fair amount of oil.

If that’s the case, then there may come a time when you need to dispose of some of that oil. And when you do, recycling can be a great option for your business.

Improper storage or disposal of waste oil is a crime under federal and state laws.

Violation of these laws will lead to the loss of your business, hefty civil fines and criminal prosecution involving prison time.


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