BusinessHABShredding’ the gnar: Starting a shredding business can help the environment.
Instead of piling up in the local landfill and potentially starting a hazardous fire filled with pollutants.
Shredding tires can be broken down for use in other products or be retread by learning how to start a Shredding business,.
You can help preserve the environment as well as become a member of this fast-growing industry.
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1. Familiarize yourself with tire Shredding Business
You should have a registered hauler carry the tires to your shredding 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 sizes.
- 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.
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2. Develop your tire Shredding Business
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 shredding equipment.
- You will need will vary based on what you are doing with the tires.
- But could possibly include tread shredders, thread cutters, and bead removers.
Shredding’ the gnar
3. Get permits required Business
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-shredding 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.
4. Find a location for your business.
It should be located within the proper zone 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.
The location of the business is very important.
If your factory is too far from raw materials you would bare huge haulage and transportation costs.
The perfect location is close to raw materials and buyers.
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There are strict zoning requirements for recycling and shredding plants based on environmental issues and safety.
Waste management is also a curtailed aspect of the business. You need a location with huge space for loading and unloading the tires.
The factory should have an administrative area, storage, and a good road network.
The optimal site location depends on several variables, some of which are predicated on minimizing freight costs.
Related to bringing in scrap tires and shipping out processed material.
And while tire source and markets are of critical importance.
It goes without saying that other business location factors must be considered Such as zoning and permits, environmental considerations.
Adequate space for storage, unloading, and loading, as well as road access.
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5. Hire employees.
When you have bought and installed your equipment, you can start the operation of your business.
Hire an adequate number of employees to collect, transport, clean and shred old.
Worn out tires and for conversion into a saleable material.
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.
Staff strength includes refusing tire collectors who are paid on commission.
You need machine operators, drivers, cleaners, and casual labor
Interesting Article, 19 Tips to Start security business 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.
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Shredding’ the gnar
7. Get to know the advantages Of the Business:
An entire niche industry is a shredding business.
Shredded rubber has many important applications and good economic advantages.
An investor could earn a steady income operating a rubber shredder.
We find rubber-based products in household appliances, industrial machinery, accessories, and construction sites.
There are many products made from shredded rubber, listed below are a few uses of the product.
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Shredded Rubber Products
A derivative of shredded tires is used in landfills. Other important uses include carbon for steel mills, road construction, and fire accelerator.
Pure rubber is granulated and used in garden beds, playgrounds and race tracks, while rubber tires are good for erosion control, barriers, and collision reduction purposes
Uses of Shredded Tires
- Used in Land Fills
- Carbon source in steel mills
- Road beds for highways
- Burning value
- Shredded rubber crumbs used for pavement
Shredding’ the gnar
8. Get a Business Plan
Not preparing a complete business plan can create problems after starting your business.
So, try finding similar businesses, or talking to entrepreneurs or tire recycling equipment vendors.
Know what it takes to start a shredding business and prepare a complete business plan.
You may be able to find shredding business plans online for free Or available for purchase.
Another prudent step might be to first seek work in the tire recycling industry to gain a better understanding.
If your timeline permits, or perhaps creating at first a smaller, related business such as an old tire hauling service depending on the desired size of your business.
You will have to buy dumpers, conveyors, and other material handling equipment.
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Prepare for a minimum investment in equipment of at least #100,000.
Hire someone with experience to write the business plan, you could also use online resources to compile a business plan. The plan should cover business structure, management team, products, and marketing.
Other parameters are a type of equipment, location, and haulage.
Don’t forget future goals, fixed/working capital, profit and loss accounting.
9. Funding the Business
It is capital-intensive funding a shredding business.
You need a large expanse of land, heavy equipment, storage, and a waste management system.
It could cost #50,000-#100,000 to set up a shredding outfit. The cost depends on geographical location, type of equipment and startup capital.
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Shredding’ the gnar
10. Look for the Equipment
There are different types of shredders in the market.
You have both fabricated equipment and fully automated machines.
Find out the type of equipment popular in your country.
The machine your buy should be heavy-duty, rugged, efficient, and cost-effective.
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A complete line should process scrap tires or re-purpose them.
High-quality equipment is cost-effective and produces high-quality rubber from scrap tires.
The shredded equipment could incorporate shredders, granulators, and powderize.
Focus on four basic products as rubber powder and rubberized asphalt paving.
Other products include rubber powder for sports turfs and crumb rubber.
Shredding’ the gnar
11. Recycling Equipment
- Single-pass shredders
- Tire derivative fuel production system
- Wire-free/mulch production system
- Recycling system
- Tire de-beading machinery
- Granulator
- Powderizers
- Mobile shredder
12. Market the Products
There is a diverse range of customers based on what you produce.
Find out those in need for your products in your locality.
Contact your customers through telephone, advertorials and sales representatives.
You can network with real-estate developers, contractors and builders.
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Shredding’ the gnar
13. Find Sources and Markets for Your Output
As a first step in exploring the opportunity to start a shredding business.
You need to identify local opportunities to source old tires.
And for customers to purchase your processed scrap.
It pays to “follow the old tires” in order to understand what happens to them.
Are they being regularly picked up?
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Where do they go?
Check out the ongoing scrap tire businesses in your area.
If you see tire accumulations, are there unfulfilled needs for old tire removal?
Or customers interested in purchasing the processed material?
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Shredding’ the gnar
14. Start Shopping For Tire Shredding Solutions
Once you have a complete business plan.
Including a financial strategy, you are ready to set up shop in terms of renting a property.
If necessary, as well as acquiring the machinery necessary for a tire recycling business.
As you already inquired for prices need equipment at the time of preparing your business plan.
You have some confidence as you go about the business of acquiring machinery.
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Conclusion:
In the steps above I have outlined in a very simple fashion.
The rudimentary steps are necessary to embark on the shredding business.
Of course, there are numerous challenges and financial risks involved in an entrepreneurial venture of this nature, and anyone considering such a venture should undertake thorough due diligence.
To explore the opportunity in more detail during your business plan development.
Consider attending the Scrap Tire Research and Education Foundation’s Scrap to Profit Conference.
Or subscribe to industry publications such as Scrap Tire News. BusinessHAB,com
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