Preparing A Tire Recycling Plant Business Plan
Are you researching for your own tire recycling business? Are you aware of the challenges in this business? Like any other business, tire recycling business also presents a number of challenges but it can be a lucrative business as the world is dealing with a huge amount of waste tires. Thankfully, the affordable availability of pyrolysis plant for sale for processing of waste tires opens a window of opportunity for budding entrepreneurs to set up a highly profitable tire recycling business. However, things are never as straightforward as they seem in any business and therefore, you need a business plan if you want to run a profitable business over the long term.
For instance, you will need to figure out the availability of scrap tires for feed-stock. You also need to figure out how many tires you will process, which will influence which model of pyrolysis machine is suitable. Also, the size of tyres will require different equipment. For instance, the proportion of synthetic rubber and natural rubber as well as carbon black and steel in passenger tires and truck tires is completely different. You will also need to figure out the demand for fuel oil obtained from the pyrolysis process. It is commonly known as tire derived fuel and is widely used in many industries as a fuel source. The fuel oil obtained from the pyrolysis process needs to be distilled further to obtain diesel and other types of oil which can then be used in various industries as a fuel source. However, you will need to sell this oil to make money. More details can be found about pyrolysis plant cost here.
One of the most important things in this business is logistics. You will need regular supply of scrap tires and scrap tires take up a lot of space. Also, these scrap tires need to be processed before these can be fed into the pyrolysis machine. So, you need to figure out a way to process the tires into smaller chunks of 2 inches to make them ready for pyrolysis process. These waste tires can be processed in a separate facility and then you will need to figure out the logistics to transport those chunks to your tire pyrolysis plant.
Once the waste tires have been recycled, you will need to figure out a way to transport the end products to your customers. Once you have figured out all these things, you will also need to think about existing competition. If there is existing competition in your location, you will need to be prepared for a price war or other issues. While recycling scrap tires is beneficial for the environment, it is a business at the end of the day and you need to prepare an objective business plan that is objective. Not everybody thinks of scrap tires as an environmental problem.
Overall, it is essential to develop a business plan to set up a strong foundation for your tire recycling business. It is recommended to set up a business plan with focus on the first 3 to 4 years of operations as most businesses fold shop within the first 5 years. Be objective when doing calculations and do not let your beliefs/emotions cloud your judgment. So, get started and dig deep to prepare a foolproof tire recycling business plan. More details about pyrolysis plant in the Philippines for you.