How to Start a Tire Recycling Business
Tire recycling businesses fill an important role in our society for disposing and storing tires. Eventually tires are reprocessed into useable goods, asphalt, pathways, running tracks, mud guards and tiles or mats. Learn how to start a tire recycling business with proper licensing, zoning, tire sources, funding and equipment requirements.
Licensing/Zoning/Permits/Insurance
Apply for licensing and purchase insurance for the tire recycling business. You must submit the necessary forms to obtain a business license. File the forms with the country clerk in your state. Buy equipment insurance, general liability insurance and auto liability insurance for a commercial business. Get a permit for tire recycling from the state Environmental Protection Agency. After selecting the property for the recycling business, you need to get zoning approval.
Funding
Evaluate your current funds and decide if you must borrow funds or get a grant. If you need to get a loan to start your business it is an excellent idea to write-up a general business plan for yourself and the bank. A business plan provides details about expenditures for funding the business, how the business will be run and a growth outlook for the company.
Property
Purchase or lease a property with the proper commercial zoning to process tires. Look for properties with a fair amount of space to handle hundreds of tires and a building of sufficient size for running the business. Utilize the services of a real estate agent to find a reasonable property in your price range.
Equipment
Expect to spend a considerable amount of startup funds to buy equipment for tire processing. See if you can purchase used equipment to save funds. Tire recycling centers may need trucks, tire shredders, collection trailers, wheel crushers, peelers, splitters, tread cutters and compactors.
Check into SBIR (Small Business Innovation Research Program) to get a grant. Federal grants are available to companies willing to try new methods for recycling tires. To qualify for a research grant, you must meet SBIR requirements and have a business run for-profit status.
Tire Sources
Research sources for used tires. Consider bidding at special projects and auctions for used tires. Work with service stations, auto dealers and tire chain stores to collect tires for recycling.
Employees
Interview and hire employees able to drive trucks and be trained to use tire-shredding equipment.