Plastic is an everyday utility that is valuable in just about every sphere. However, it requires proper disposal, otherwise it becomes a threat to the environment. Consequently, there are numerous ways of managing plastics, and among them is recycling. In fact, most companies that use plastic in their packaging advocate for recycling.
A plastic recycling manufacturing business involves processing used plastic to make it reusable. Although this is a lucrative business, there are many upfront costs involved that cover for the location of the business, the recycling machinery as well as the human resources to run the machinery. In addition, you will need to fulfil other requirements that include the following:
- Register the Business with the State
This is the first and most important step to undertake in your quest to establish a plastic recycling manufacturing business. To do this, get in touch with the state secretary’s office to register your business name with the state in which you intend to operate. Here, you will be given the application as well as a list of the other documents that you are required to present by the state in order to register the business.
- Apply for a Business Tax Identification Number
This is another important requirement. To apply, you need to contact the Internal Revenue Service. Your tax identification number refers to your federal tax number that the business will use to not only open bank accounts but also establishing credit accounts with vendors as well as filing business tax documents.
- Obtain Money for Financing
You cannot set up your plastic recycling and manufacturing business without the necessary resources. Thus, you need to identify potential sources of money that you can use for leasing the business location, buying the equipment needed to run your recycling business and paying operational costs at the initial stages before the business becomes self-sustaining. You should contact a couple of lenders to compare their terms and interest rates before submitting an application to your preferable lender.
- Pick Up a Location
Location is everything. You need to identify an ideal location where you will set up your business; preferably a warehouse, business or plant location that has adequate space to accommodate your machinery and equipment.
- Obtain a License
Your plastic recycling manufacturing business cannot operate without the appropriate license. Therefore, you will do well to get in touch with the clerk of the courts of the county within which your business operates to get an occupational license. In addition, you should also get in touch with the county’s zoning department for a license for your business to occupy the location with a plastic recycling plant.
- Buy the Recycling Equipment
Once you have obtained the paperwork, you can then purchase the plastic recycling equipment that includes separators, plastic shredders, granulators, breakers, a pre-washing system, a rinsing system, and dryers. The best place to buy this equipment is through recycling equipment manufacturers.
- Write a Transport Plan
It is important to have an elaborate plan of how you will transport the plastics from clients to the manufacturing plant. Your transportation plant may include providing bins to your customers to store plastics as well as a moving truck for picking up the plastics and bringing them to your recycling plant.
- Promote your Business
Once you have everything in place and your business has begun operations, you must promote your business. This can be through building a website, creating brochures or through other marketing collateral that you can use to promote the business to your potential clients that includes counties, cities as well as municipalities offering recycling services to residents and plastic manufacturing companies that need to recycle used or left over plastic.
Setting up a plastic recycling manufacturing business is a straightforward process as long as you meet all the requirements by law or otherwise.