If you want a growth industry, then waste management is one of the best options. People are generating a lot of trash as the population increases, the heaps of waste also increases. This waste needs to be hauled away, disposed of, or recycled. Starting a business dealing with waste can be lucrative, but there are some special challenges you are going to meet in this industry.
Waste management – this is collecting, treating, and disposing of waste material. This industry has seen an average growth of 2.5% every year since 2000 according to reports from the Bureau of Labor Statistics. When you hear waste management for businesses, your brain starts thinking about trash collectors hauling garbage, but there are many opportunities in the industry.
Medical waste management: healthcare is a fast-growing industry, and it has strict regulations when it comes to disposing of medical waste. This has provided a growth area for entrepreneurs. Food waste management: Restaurants and grocers have a lot of food waste they need to dispose of in an efficient and sanitary manner. E-waste: There is demand for safe and secure disposal of used electronics has increased. Construction waste: When there is a surge in construction, it provides an opportunity for a waste management business at the end of the day. Hazardous waste management: It is a niche industry with an expected growth of 6.65 annually.
How to Grow a Waste Management Business
Choose one niche and specialize in it because it is the best way to grow your waste management company. The waste management industry Is high regulated, and it can be complex and costly to offer services to different types of clients. This is why it is a good idea to hone a particular market and becoming an expert.
Another option to use in growing your business is to offer your customer environmentally friendly services. Local governments and businesses are looking for ways of reducing the environmental footprints. Recycling is a good way of doing this. There were over 89 million tons of municipal solid waste in 2014 – 34.6% of all the waste produced ended up being recycled. Potential clients are shown to reduce, reuse, and recycle which is going to help comply with regulations, benefit the planet, save money, boost their image, etc.
There is software you can use to manage and maintain your truck fleet and GPS tools that are going to help in planning the most efficient routes for trucks. Technology is also changing the waste management industry. Try your best to stay up to date and implement the right technology for your business.
The industry is price-driven but it is also subject to changes that can affect costs. Things like regulatory changes and fuel shortages can easily cut into your profit margins. This is why you should always keep a close on your operating costs. One way is to use contract drivers that don’t require benefits.
Monitoring threats and opportunities
If you want to succeed in the waste management business, then make sure you keep up with the economic trends and any government regulations that can affect your business. For example, the increased construction or infrastructure project will increase the demand for construction and industrial waste management. Change in regulations can result in new opportunities for you or reduce the market of your services. Always have a closer look at the market so you can switch your focus depending on the direction of the market.
Being adequately financed
You need a lot of capital to start and grow a waste management business. When you work with government and commercial clients, it can take long before you get paid. It is important to focus on your financial planning so you can have a close eye on your cash flow. You should have a backup plan because things don’t always go as planned. Have a plan for getting cash in a hurry because there will be a point when you are going to need it. There are many financial tools you can use to make sure your business runs smoothly and you don’t have cash flow issues. With a good financial plan, you don’t have to stress.