The paper that we use is mostly a biodegradable waste that can easily be decomposed with the passing time. In the present times there has been a huge usage of paper. Nearly everywhere we go we can easily see papers around. The usage of paper is vivid and is increasing by time. Some basic usage of paper includes newspapers, books, text copy, pamphlets, posters, magazine papers, calendars, and many more.
The world market of paper is very huge and is in billions. Paper is made using the pulp from trees. As of 2011, 398, 975 thousand tons of paper is produced every year. In this article I am sharing profitable business plan for paper recycling business. If you want to start your own paper recycling plant then read this article till the very end, you will get all information about profit margin in this business and cost of setting up a paper recycling plant.
How Paper is produced?
Paper is produced from the pulp of wood, fibrous plants, rice, water plants, stubbles, and other such materials. The basic material that is required to manufacture paper is fiber which is an essential part in paper making. You can get this pulp mainly from two sources. One is from wood pulp and the other is from old recycled papers. The production of papers required cutting down of tress. One tree in general produces 16.67 reams of paper whereas 12 trees produce 1 ton of paper.
To produce such a huge quantity of papers millions of trees are cut down every year. The rise in cutting down of trees has led to deforestation resulting in rise of global warming. To counter this people are now focusing on recycling of paper.
Is Paper Recycling as a Business A Good Idea
Paper recycling business is a flourishing business that is giving huge returns to its owners. There is abundant demand of recycled paper as they are cheap. If one plans down a strategy, executes it and invest a fair amount of capital then one can get a satisfying return within no time. To lay down a business plan you need to understand the basics of recycling a business, its requirements, investment, and return and so on. Here is a strategic and brief plan that can help you in your paper recycling business.
What Is Paper Recycling Business Plan:
The plan will carry all the details of how your paper recycling business can be opened, executed and run successfully with satisfying return. Here are few things you need to care about.
- Resource Required to open a recycle plant
- cost of setting up a waste paper recycling plant
- Requirement of total capital
- Arrangement of capital
- Time investment
- Strategy for successful recycle business
- Profit margin
- Return on investment
What License Are Required For Paper Recycling Business
While executing Paper Recycling Business ideas you must look for a license required for the Paper Recycling Business.
You may start the small to medium business either a Proprietorship or partnership farm
For Partnership operation, you have to register as a limited liability partnership (LLP) or Pvt. Ltd.
A company with Registrar of Companies (ROC).
Get GST number (compulsory for all business after GST rule), tax identification number and insurance certificate
Trade License: obtain the Trade License from local authorities.
apply for pollution certificate because business is dealing with the pollutant.
Fastener manufacturing is a machinery-based industry. Registering your business at the MSME / SSI Registry can provide you with government subsidies and benefits.
Employees state insurance which is an insurance scheme for workers.
Employees provident fund is compulsory for the business were more than 20 employees are working.
Register your brand name with a trademark that will protect your brand.
Investment of setting up a recycling plant:
The cost estimation which is given below is in Indian currency and is targeting readers from India. This business plan is also valid for other countries like South Africa, Australia, USA, UK, Canada, etc. The cost of machine is nearly same everywhere and recycling process is also same.
Renting or owning of place depending on size varies from place to place which one can calculate. The better option in starting is to rent a place or use an existing place owned by you as it will reduce investment. Waste paper collection doesn’t costs much. Nearly 4-5 rupee is spent to buy 1kg of waste paper.
Purchasing equipment is costly which should best be rented on monthly basis which is easily available if you have contacts. Recycling machine is a costly thing to own which should best be owned. Start with a small machine that costs around 3-5 lakhs while the medium costs at Rs 5-10 lakhs and the large one costs Rs 10-35 lakhs.
Hiring expert technician and labor will cost you Rs 30-40 thousand per month. You can add electric charges, water charge, transportation and other expense as well. A total of at least Rs 10 lakhs is required for the first time in setting up your business. Later you have to spend at least 1-1.5 lakhs per month.
What Is Area Required for Paper Recycling Business
The First basic requirement is a place where you will recycled paper. If your house allows you to setup your plant then it is okay or you need to get a decent space where you can set your factory. Depending on the scale of recycling you can own or rent that space. The minimum space should be around 250sq. feet. The space should be closed with rooms for collecting paper waste, a cleaned room for keeping the recycled paper, a place to setup machines and so on.
What Are Raw Material for Paper Recycling Business
The Basic amenities are required everywhere. You need to have permanent standard power connection with stable water supply. The paper recycling plant requires huge amount of water therefore you need to have that supply. Your plant should not be that far that transportation becomes a problem because you need constant supply of waste paper for your recycle plant. To recycle the paper you need some standard equipment like washing soap, cleaning equipment, bleaching powder, tanks, containers, machines, jets, paper printer, etc.
You can network with scrap collectors, paper waste owners, dumping grounds and so on to collect waste paper.
What Machine Are Required For Paper Recycling Business
There are three types of machines for recycling paper. First is the small type machine that recycles 20-100 kg of paper per hour. The medium size machine recycles 75-250 kg of paper while the large machine recycles 100-500 kg of paper waste. Depending on your requirement and budget you can purchase the machine. It would be advisable to start with small machine and later on go for medium and large machine as it will help you in understanding the business supply and returns.
What Kind Of Business Training Is Required For Paper Recycling Business
You need at least one person who is expert in paper recycling and with major machines and equipment. You also need few labors that will assist the main worker in the recycling job.
What Is The Process Of Paper Recycling Business
Paper recycling has been hugely adopted these days by every country in order to save the cutting down of trees. The benefit of recycling is not only that it saves cutting down of trees but also reduces and reuses paper waste that would have created a mess in the atmosphere. There is unique advantage of recycling paper as it is beneficial in many ways. To produce one A4 size paper nearly 5 liters of water is required. Recycling down of 1 ton of paper saves 26, 500 liters of water, 682.5 gallons of oil and 17 trees.
Inspired by such an effective method, the whole world has invested a huge sum of money in recycling paper waste. Earlier these recycling job was conducted by either government owned businesses or big recycling businesses but now even common man can own a paper recycling business.
Stage 1: Collection
The most common way paper is collected for recycling is via kerbside collection schemes – operated by your local council to make recycling at home as convenient as possible
Stage 2: Recycling
The start of the paper recycling process requires the paper to be separated into types and grades. The paper is then washed to remove any film, glue, ink and other contaminants using soapy water. Once washed the paper is then transfered to a large container, where it is mixed with water to create a pulp.
Stage 3: Rolling
The pulp is then pressed, dried and rolled into large thin sheets of recycled paper that can be over 50 miles long.
How To Sell Recycled Paper
As soon as you have done together with the Recycling paper plan program You need to work on how to sell recycled paper and the best way to promote your business, here we have given the subsequent strategy which you might use to have clients.
You can foster your Business locally with local media such as Paper, the networking, you are able to brand your small BUSINESS.
Additionally, tell your previous customers and family members to inform about your company, this approach will make it possible for you to get referral customers.
Aside from local advertising, you have to attempt online marketing that enables you to expand your open BUSINESS internationally and quickly. Here we have mentioned some online advertising strategy which can help you grow your business.
Produce a Website:
To create the internet presence of your company you need to have to create a website that presents your company on the internet and receive you, customers
Once you’ve done with the website production you’re able to article The blog concerning. Which could allow you to get more viewers? Employing high-quality content
The blog post is a long-term marketing strategy, and you also do not Have to pay for blogging frequently, the blog will provide you continuous clients.
Boost Your Website For SEO:
Social networking supply a great opportunity for attaining the ideal customers for your business. So long as you know your customer well. It is likely to promote Your Company Utilizing social websites such as Facebook, Instagram, LinkedIn, etc
Sell On Other Website
Register your Cashew nut business on B2B websites like
etc. where you can sell your product on bulk orders.
Register your Cashew nut business on B2C websites like
etc. where you can sell your product directly to the customer.
Retarget Your Customers
Getting clients is not just serve as a reason for the promotion you’re able to retarget your previous customers utilizing the following approach.
Offer Free Product:
Marketing Studies confirmed that people are more prone to Accept something for free. So, you can offer a free service or merchandise to your clientele?
You’re able to retarget your customers by providing them free Service or merchandise
Email advertising Is Something Which Every Company Owner Should be considered as a marketing platform
If you can give something at no cost in exchange for your Consumer’s email address. And as soon as you build an email list you can get connected with your previous clients, and target them to market and encourage the merchandise of your enterprise.
Review for Business
While searching for any service or merchandise new customers are constantly looking for the prior portfolio or past work. So you may ask your customers to provide feedback or testimonials that you can utilize to acquire new clients.
Brand and Uniqueness
Apart from all tradition way of promoting; online promotion is a very efficient and effective way to launch your brand.
While marketing the business you need to study the competitors, analyze the competition and do a plane for promoting your brand.
You can open your own online shop where you can sell your product, or you can tie-up with another hosting site that will help to Sale and introduce your product to the customer.
Advertising is a critical advance for the accomplishment of the business.
You have to advance your business from the day you have finished to begin the cashew preparing business.
It will spread to word and you will get a decent measure of customers during the season of your first unit of generation is finished.