42 Pros & Cons Of Starting A Recycling Business (2024)

Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

Ability to start your business from home

It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!

Rewarding work

Starting a recycling business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

Scalable

With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.

Meaningful business connections

You never know who you will meet as a recycling business. This could be the start of an incredible business opportunity!

Quick build time

The average time it takes to build your product is quick - typically around 7 months. This will allow you to bring your product to market faster.

Control of workload

With starting a recycling business, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.

Unlimited income potential

With starting a recycling business there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.

Daily physical activity

Recycling Business's typically involve a much greater degree of movement than other lines of work. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. This can have a positive impact on energy levels and your overall health.

You are your own boss!

With starting a recycling business, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!

Local Community

One of the best parts of starting a recycling business is that you can develop a local following by selling your products at craft shows, farmers' markets, or even local storefront businesses! This gives you access to additional revenue streams and loyal customers.

Higher likelihood of getting referrals

This business is all about referrals, which can be a a very impactful way to attract and retain customers. It's critical that you have a great referral program in place that incentivizes your customers to tell their friends about your product.

You can sell your product in various places!

There are various different markets to sell your product, which will help you reach different audiences and revenue streams.

Simple business model

A recycling business has the advantage of a simple business model, which makes launching and building the business more seamless.

Minimal experience required

Starting A Recycling Business requires little experience and no specific certifications or qualifications. To be successful, you need hard work, determination and the desire to achieve greatness!

Control your own destiny

Starting A Recycling Business allows you to control every aspect of your life and make your own dreams come true every day.

You get to do something you truly love

With starting a recycling business, you get to put your energy into something you are truly passionate about! You'll find yourself devoting as much time and energy as possible into the business to make it successful.

Easy to Learn The Business

When starting your recycling business, there is a ton of information readily available to you online (Facebook groups, Youtube videos, Starter Story etc). This will help you get the business started and answer any questions, doubts or concerns you may have.

You get to inspire others

Your business is one that encourages and inspires others, which in itself, can be very fulfilling.

Never a dull moment

With starting a recycling business, there is truly never a dull moment. Your job offers a lot of variety and allows you to meet interesting people from all walks of life.

You can promote and sell your product on Amazon

Although there are some disadvantages to consider when selling your product on Amazon, there are also a host of benefits. Mainly, Amazon is the world's largest online retailer, so you're bound to tap into new business and reach an entirely new audience.

Various different ways to make money

With starting a recycling business, there is not just one business model to choose from. This field is amazing in that there are various different ways to make money. Although this may complicate things, it's great to have different options and sources of revenue.

Low maintenance customers

In this industry, customers are known to be very appreciative and low maintenance. This can help with your stress levels and allow you to focus on growing your business.

Crowded Space

Competition is high when it comes to your recycling business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.

Low margins

The gross margins for your recycling business are typically around 65%, which can make it more challenging to incur new expenses and maintain profitability.

Work can be inconsistent

As a recycling business, the amount of work assigned to you and schedule tends to be more inconsistent, which may make your income less stable. It's important to set boundaries and budget accordingly based on the amount of work you plan to have.

Lack of benefits

With a recycling business, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.

Taxes

As a recycling business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

No safety net

Typically, as a recycling business, you do not receive a consistent pay-check and instead earn money based on your transactions each month. During the slow periods, you typically take away less since the job is based on commission. It's important to budget accordingly for the slow times.

Niche Market

A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.

High overhead expenses

With starting a recycling business, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.

You may need to charge sales tax

If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out this article

Time commitment

With starting a recycling business, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.

Be prepared to get out of your comfort zone!

Although this is exciting for some entrepreneurs, it can be a big challenge for others! You may find yourself in uncomfortable social and business situations, jumping into tasks and responsibilities you aren't familiar with, and pushing yourself as far as you can go!

You might struggle financially (at first)!

If you bootstrap your business or choose not to pay yourself (or pay yourself less than you were making at your corporate job), this can be financially taxing. It's important to adjust your lifestyle and set a plan for yourself so you don't find yourself in a stressful situation.

Difficult to scale

With a recycling business, it can be challenging to find ways to scale. Check out this article that discusses scaling your business and the challenges that come with it.

Work is not always glamorous

With starting a recycling business, you may need to get your hands a little dirty. Although it may seem glamorous from the outside to start this business, the work can require a lot of physical activity and repetition.

Easy target for criticism

Since your recycling business has the ability to reach a large audience, you'll need to be able to handle criticism. The internet can be a cruel place, and regardless of your intentions, many people will disagree with you and even take their criticism too far. To survive in this industry, you'll need to have tough skin (or at least learn this along the way).

The job can be demanding

This is one of the major disadvantages starting a recycling business. It's important to understand that you may need to make yourself available on a 24/7 basis.

Equipment Breakdowns

Over the years, your equipment can get damaged, break down, and may need repairs which can be expensive. It's important you prepare for these expenses and try to avoid damages/wear & tear as much as possible.

Answering Phones

The recycling business is still considered a traditional business, which means answering phones is a big part of the job. If you or your team miss phone calls, you could be missing out on potential revenue opportunities. If you are unable to attend to your phone throughout the day, it would be in your best interest to hire a call center or an employee dedicated to this.

Takes time to see results & make money

Results and revenue do not come overnight with a recycling business. Often times, it takes weeks, months or even years for your work to monetize.