Steps To Start a Tire Shredding Business

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For waste management authorities and landfills, worn out tires are among one of the most problematic and largest sources of waste. But tire recycling offers a number of profitable business opportunities as rubber is very flexible and can be re-used in many different ways.

The Business Opportunity

Tire shredding is one of the most profitable and continually growing businesses because of the following reasons:

  • Shredded rubber crumbs are bought in large quantities by asphalt companies to blend with their hot melt asphalt to make pavement cheaper.  
  • Shredded tires are ideal for raising the burning value.  So, waste to energy plants can easily maximize the burning process by making use of a rubber mixture.
  • Road construction companies buy huge quantities of mid-sized shredded tires to use in road beds for highway sound barriers and for minimizing vibrations.
  • Shredded tires can be used as a carbon source in steel mills by replacing coke or coal in the production process.
  • Shredded tires can be used for leachate lines in landfills and to help build new cells.

So, now you know where to sell shredded tires and how to  set up your business.

Major Steps in Starting the Business

1. Find a Market for Your Output

When you decide that you want to start a tire shredding business, you need to perform thorough research on where to locate business.

A tire shredding business will only be sustainable if you have easy access to the market for your output. As I already have mentioned the common buyers of shredded tires and all other possible outputs of a tire shredding business, you try finding the market before you carry on with other steps. When you find the market with plenty of demand of your output in it, you can carry on with the other steps.

2. Find a Perfect Hauling Location

Try locating your business in close range of multiple potential buyers. Because many buyers will decide buying your output based on how close/ accessible you are to them. While tire source and markets are of critical importance, it goes without saying that other business location factors must be considered such as zoning, environmental considerations, adequate space for storage, unloading and loading, as well as road access.

3. Prepare a Complete Business Plan

Not preparing a complete business plan can create problems after starting your business. So, try finding similar businesses, or talking to entrepreneurs or tire recycling equipment vendors, know what it takes to start a shredding business and prepare a complete business plan. You may be able to find tire recycling business plans online for free, or available for purchase. Another prudent step might be to first seek work in the tire recycling industry to gain a better understanding, if your timeline permits, or perhaps creating at first a smaller, related business such as an old tire hauling service.

As for your business plan, honest and precise with your projected revenues and operating costs in preparing a complete budget for your enterprise.

This will allow you to check if you can really afford the right kind of machinery and other requirements before making a major financial commitment. Depending on the desired size of your business, you will have to buy dumpers, conveyors and other material handling equipment. The least possible investment for a tire shredding business should be $100,000.

4. Start Shopping For Tire Shredding Solutions

Once you have a complete business plan, you are all set to buy necessary equipment and machinery as you now know what you need for your business. As you already inquired for prices need equipment at the time of preparing your business plan, you have some confidence as you go about the business of acquiring machinery.

5. Setup Business and Hire Employees

When you have bought and installed your equipment, you can start operation of your business.

 Hire an adequate number of employees to collect, transport, clean and shred old, worn out tires and convert into valuable output.

In the steps above I have outlined in a very simple fashion the steps necessary to embark on a tire recycling business. Of course there are numerous challenges and financial risks involved in any entrepreneurial venture of this nature, and anyone considering such a venture should undertake thorough due diligence.