July 24, 2014  
 
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Opening a Tire Recycling & Disposal Business

Launching a tire recycling and disposal business is your ticket to owning a good, stable business as long as you separate yourself from the competition. We provide tips and advice that may be key to your ultimate success.

Thinking about opening a tire recycling and disposal business? We tell you what you need to know to get started.

Tire Recycling and Disposal Business

Business Characteristics

Tire recycling and disposal is one of the many business concepts that have emerged from the trend toward environmentally conscious entrepreneurism. In previous decades, worn out tires were either burned or dumped. But today, innovative entrepreneurs are finding ways to recycle tire rubber and turn a profit at the same time.

Most tire recycling and disposal businesses act as an intermediary between consumers (or repair shops) and remanufacturing plants. But interested entrepreneurs should know that there is much more to this business model than collecting old tires and dropping them off at a remanufacturing facility.

Every tire that is collected needs to be graded into one of four quality categories. Tires that are in the best condition can be retreaded and resold to consumers, while tires that are in the lowest quality category are graded as "crumb rubber" for processing into the rubber mulch that is popular for private and public playgrounds.

Tire recycling and disposal businesses rely heavily on networks and relationships, starting with recyclable tire suppliers. Tire sellers and repair shops can be a good source for used tires, although larger shops and franchises may already have relationships with tire manufacturers. Tires can also be collected from consumers themselves through pickup services and other disposal opportunities.

On the backend, tire recycling businesses need to develop relationships with companies that turn old tires into useful products. These companies may work with all grades of recycled tires or specialize in just one or two. An alternative is to expand your business model to include remanufacturing. If you're just starting out, consider focusing on one or two recycled products (e.g. rubber mulch) and outsourcing other products (e.g. retreading) to larger manufacturers.

The startup requirements for a tire recycling and disposal business depend on your business model. A simple business plan that relies completely on other manufacturers can get by with a midsize panel truck for collections. If your plans calls for limited or full tire remanufacturing, you will need to factor the cost of equipment and leased/purchased space into your business plan.

Characteristics of a Good Tire Recycling & Disposal Company Business Plan

Your tire recycling and disposal company's business plan should be tailored to your business's unique traits and goals. However, the most effective business plans do address specific sound business plan elements:

  • Mission Statement Your description of your tire recycling and disposal business's reason for existing.
  • Goals & Objectives Goals are broad targets; objectives are the tactics you'll use to reach your goals.
  • Financial, Marketing & Action Plans Specific plans that describe your business environment, demographic targets and quantitative estimates.

Evaluate Competitors

Well in advance of opening a tire recycling and disposal business in your town, it's a smart move to determine how strong the competition is. Use the link below to generate a list of competitors in your area. Simply enter your city, state and zip code to get a list of tire recycling and disposal businesses in your town.

Is the established competition doing a good job? It's important to understand their strengths and weaknesses and think through how you'll stake up against those established businesses.

Learn from Others Who Are Already In This Space

If you are interested in starting a tire recycling and disposal business, you really ought to talk to somebody who is already in the business. Local competitors are not going to give you the time of day, mind you. It'd be crazy for them to teach you the business.

However, a fellow entrepreneur who has started a tire recycling and disposal business in a location that is not competitive to you will be much more likely to talk with you, after they realize you reside far away from them and won't be stealing their local customers. Many business owners are happy to give advice to new entrepreneurs In my experience, you may have to call ten business owners in order to find one who is willing to share his wisdom with you.

Want the scoop on finding a tire recycling and disposal business founder in another city who you can speak with?

It's not that hard. Just use the handy link below and enter in a random city/state or zipcode.

Three Arguments for Buying a Tire Recycling & Disposal Business

It's almost always preferable to buy a tire recycling and disposal business than to pursue a tire recycling and disposal business startup.

You'll want to conduct a comprehensive due diligence process, but here are three arguments why you should think about buying instead of a startup.

  • Proven Profitability. Startups struggle to bring in revenue right out of the gate while existing businesses usually have a steady stream of income.
  • Established Operations & Processes. When you're shopping for a tire recycling and disposal business, be sure to look for ones that have all of the necessary processes and systems to ensure seamless operations from your first day of ownership.
  • Capital Acquisition. With several years of operations under its belt, a purchased company is much more appealing to lenders and investors interested in avoiding the risk of an unproven startup.

Franchising May Be a Better Way to Go

The chances of thriving in your new business immediately improve when you choose to franchise and leverage their successful brand and track record.

If your goal is to start a tire recycling and disposal business, you should investigate whether there are good franchise opportunities available that might make sense for you.

The link below gives you access to our franchise directory so you can see if there's a franchise opportunity for you. You might even find something that points you in a completely different direction.

More Startup Articles

These additional resources regarding starting a business may be of interest to you.

Coming Up With Good Business Ideas

Business Idea Evaluation


Conversation Board

Still have a question about opening a tire recycling and disposal business? We enjoy hearing your comments, insights and suggestions

Michael Jacob 9/16/2010

I am looking for a list of buyers for my tire recycling and disposal business. I am in the Reno/Sparks, Nevada area.

Kgk 3/22/2011

Mike, how long ago did you start your tire recycling business? I am really interested in getting one started but feel it would best suit to get some advice from someone who is doing it. I hope you don't mind? I wouldn't be a competitor. Do you shred your tires?


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Already Own a Tire Recycling & Disposal Business?

If you already are in business and came here to learn about growing an existing tire recycling and disposal business, these resources will come in handy:

Marketing a Tire Recycling and Disposal Business

Selling a Tire Recycling and Disposal Business

Do You Sell to Tire Recycling & Disposal Businesses?

If you came here to learn about selling to tire recycling and disposal businesses, you're in the wrong place. These resources are more appropriate for you:

Selling to Tire Recycling and Disposal Businesses

Mailing Lists for Tire Recycling and Disposal Businesses

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