Find Sources and Markets for Your Output
As the first step in exploring the opportunity to start a tire shredding business, you need to identify local opportunities to source old tires and sell processed scrap to customers. It’s worth “follow old tires” to understand what’s happening to them. Do they meet regularly? Where are they going? Look for scrap tire jobs going on in your area. If you see tire deposits, are there unmet needs for old tire removal or customers interested in purchasing the treated material?
Identify Potential Site Locations
The optimum site location depends on several variables. Some of these are based on minimizing the transportation costs associated with bringing in scrap tires and shipping the processed material. While tire sourcing and markets are critical, you should consider other workplace factors such as zoning and permits, environmental considerations, sufficient space for storage, unloading and loading, and road access.
Prepare a Complete Business Plan
An incomplete business plan can cause problems once you start your business. Try finding similar businesses or talking to entrepreneurs or tire recycling equipment vendors. Know what it takes to start a grinding business and plan well from the start. You may be able to find it. Depending on the desired size of your business, you will need to purchase dump trucks, conveyors and other material handling equipment. Be prepared for a minimum investment of at least $100,000 in equipment.
If you don’t have any experience in the industry, it might be a good idea to seek employment in the tire recycling industry first. You can also start by creating a smaller, related business, such as an old tire towing service.
Start Shopping for Tire Shredding Solutions
Once you have a complete business plan, including a financial strategy, you are ready to start a store. You will likely need to rent a property and buy the machinery necessary for a tire recycling business. Since you’ve already researched equipment prices when preparing your business plan, you should have some confidence when purchasing machinery.
