More and more people are becoming conscious about the environment, as are many businesses. Accordingly, several industries are using wood pallets instead of plastic pallets because they are environmentally friendly, and also because of safety and health regulations. Starting a pallet recycling business is not only profitable but is also environmentally responsible.
Before you dive into starting a pallet business, it's important to do your research. First, find out where you can gather some wood pallets for cheap or free. Places like distribution firms, shippers, newspapers, manufacturers and magazine publishers discard their pallets, meaning you could get them for free or a low price. Another way to find places where companies get rid of pallets is to do a Google search and type in "free pallets near me."
Next, you will need to think about a legal entity. Everyone starting a business will need to strategically think about their legal entity because if the wrong one is chosen, it can affect the growth and goals of the business. With five legal entities in the United States available to entrepreneurs, you can choose the one that suits your company the best. The five entities are limited liability company (LLC), partnership, C corporation, S corporation and sole proprietorship.
Once you sort out the legal matters, figure out where your location will be. The location can have a great impact on your business. If you're just starting out with a small budget, you can begin at home, especially if you have enough property to make it work. If you don't want your business to be at your home, you can contact a realtor to help you find a prime spot for your pallet recycling business.
The size and condition of the pallets will make a difference when it comes to selling. However, as a general rule, you can expect between .50 cents and up to $4 each for your pallets. This may seem like a low amount but if you sell to local manufacturers, you have the potential to sell around 50 pallets, five days out of the week. Having multiple local manufacturers purchase from you can rack up your profit.
You can sell wood pallets to several people and businesses. You could sell to a pallet recycling broker, woodworking shops, furniture-making schools, local manufacturers or list your pallets on craigslist. If you have social media, you could also take photos of your pallets and post them on there. For example, Facebook has a "marketplace" section available to sell items.
Before moving forward with your business, put together a business plan that details your goals, budget, strategy, potential obstacles and a schedule for growth. This can help make sure you start off on the right foot and keep you focused on your goals as challenges arise.