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"Composting Business": How to Get Started

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With green and health consciousness dramatically increased over the past few years, green-related business is the new thing. One of the most promising options is to start your composting business. By recycling waste to compost fertilizer, not only you give back to the environment, but it's also a promising business with high earning potential and relatively low startup cost.

If you want to start small, you can concentrate on the waste collection process. You can then sell your waste to a local recycler for a profit. If capital is available, though, you can build a small scale compost facility, and market your fertilizer product to farmers. Of, course, composting yourself will be more profitable, but the capital needed can be very high.

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Interested in starting your own composting business?
Here are some tips to help get you started.

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1. Startup Cost
The startup cost needed will vary depending on your planned scale of operations. If you want to start small, you can start by purchasing a garbage truck. On average, it'll cost you around $30,000. If you want to start a compost facility, the smallest scale with compost bins can only cost you additional $10,000, but a large scale compost facility can cost hundreds of thousands of Dollars. This also shows the scalability potential of the business, which has unlimited potential.

2. Finding your Waste
Your local residential area and restaurants are a good source of food waste. Most will gladly give up their waste, in fact, you can also charge them as a waste disposal service. If you have animal farms in your area, you can also ask (or charge) to collect their feces as it will also be an excellent compost material, assuming you can stand the smell.

3. Finding your Market
Research for market availability before you start the business. If you want to focus only on waste collection, find a recycler of whom you can sell to. If you planned to produce compost fertilizer, find a local farmer or farmer association who might buy from you. Research for current price average, biggest competition, and saturation.

4. Licenses and Permits
In the U.S.,some states will require you a special license for the waste-related business. Consult your local authority to get more information and help with the application. You might also need a vendor's license and business license.

5. Monetizing
There are at least three business models you can follow. First is to charge local residence or business for waste disposal,the second is to sell your waste to recyclers. Finally, if you have the capital you can sell your recycled fertilizers product. You can start with either one of them or all three at once, bringing more profitability potential for your business.

Earning Potential

The national average earning of waste management service is $16.55 per hour, translating to $34,400 in annual earning. However, by selling your waste or recycling yourself, you can expand this earning potential to hundreds of thousands of annual earning.

One cubic yard (3' x 3' x 3') of compost can earn you $50 on average, and can translates to $5,000 monthly if you can manage to recycle 100 cubic yards of compost (which is not an amazing number, in fact). With the world being more and more green conscious, this business might be one of the most sustainable business in the future.