How much can you earn from garbage removal? How the garbage business works in Russia. Types of materials for processing
Russians produce hundreds of tons of garbage every year. It accumulates in landfills, is buried, and burned. By the way, it's all money! Yes, by burying garbage in landfills, we are burying capital in the ground. But a significant part of the garbage can be recycled and make money from it.
Moreover, this is not necessarily a multi-million dollar investment in a complex and large plant. In fact, setting up a waste recycling facility is easier than it seems. Need sorting line, a press, a couple of trucks and a garbage truck. That’s it, with this arsenal you can “go into battle.”
The essence of recycling
Let's dot all the i's right away. We will not talk about the business of full-fledged waste recycling. This is quite an expensive matter. It is much easier to start sorting and selling waste paper, plastic bottles and cans for further processing.
In this case, your job is as follows: you receive garbage, sort it, selecting plastic, tin, paper and cardboard. Next, you send it all to the press. Afterwards, the finished briquettes made of plastic, tin or paper are loaded into the machine and sent to customers.
Who is the buyer? There are many of them, you just need to look. In fact, these are almost all companies involved in the production of plastic products, cardboard, and tin products.
According to reviews from people involved in similar business, it is important to choose the right personnel. Needless to say, the work is not very prestigious and is quite specific, especially at the sorting stage. Where you literally have to sort through tons of garbage with your hands in search of the things you need.
And this is one of the key problems of this business. As entrepreneur Igor Sviridov, who processes waste in Volgograd, says, there is nothing more difficult than finding people to sort.
“This became a real problem, and the work was unskilled and dirty, so the salary was not the highest, but I paid waste sorters decently, at least more than the loaders in the neighboring hypermarket,” says Igor. - It did not help. After working for a short time, they always quit. I tried to hire homeless people and the so-called downtrodden element. But it didn't help. The solution was found through trial and error. First, I improved working conditions. And my sorters have disposable capes for clothes, beautiful and comfortable uniforms, a clean and modern locker room, and a shower. Secondly, I and other employees did our best to demonstrate to the sorters that they were a key link in our chain of success. Thirdly, at first I myself worked with them on sorting. As a result, I solved an impossible task and coped with the staff turnover in the sorting department!”
Where to get raw materials?
At the landfill. Do not laugh. In fact, only there you will find a lot of ownerless plastic bottles, cardboard, and glass containers. All that’s left to do is to agree with the management of the landfill that you will be allowed to “rakes up the rubble.” Problems may arise here, but, as practitioners say, a little help from the landfill administration solves all the issues.
Local homeless people are quite suitable as primary sorters who will select the garbage that interests you. They know very well what is where, and for little money they are ready to give you this stuff. The only thing is that they need strict control.
But there is another option - you can enter into an agreement with shops, markets, and various institutions. They regularly have tens of kilograms of paper waste that needs to be disposed of somewhere. According to Igor Sviridov from Volgograd, he easily concluded an agreement with a supermarket chain for the export of empty cardboard boxes. For this he pays little money. But it is guaranteed to receive large volumes of paper and cardboard, which it then delivers to processors in compressed form.
“If you don’t take into account the costs of transportation, wages, and so on, then I sell a kilogram of waste paper at least 10 times more expensive than I bought it from the supermarket,” Igor clarifies. Unfortunately, it is almost impossible to build such a supply chain with plastic bottles.
Where and how to sell
Main consumers waste paper, plastic and tin- various productions. They are found in almost every region, and, as experience shows, they happily accept recyclable materials.
But they take it by weight. In addition, no one will be happy if you bring a KAMAZ full of plastic bottles or waste paper. After all, half of it is air, and such recyclables will take up an unreasonably large amount of space. Also, are you willing to pay for air transportation?
Therefore, the main part of the waste processing plant is the press. This should be a universal press that will turn your garbage into dense cubes. It is these cubes that you will sell. Moreover, as existing entrepreneurs say, it is quite profitable.
Unfortunately, Igor Sviridov does not disclose the amount of his profit. But he emphasizes that the profitability of his business is almost 100 percent, and the demand for products is constantly growing.
Ivan Muravyov
Photo from wordpress.com, giport.ru, icd.com.vn, xakac.info, liveinternet.ru
Nowadays, in an era of great opportunities, you can find a lot of ideas on how to start your own business. As a rule, most novice entrepreneurs open cafes, shops, pawn shops, sell balloons or rent vehicles. And only a few make millions from waste. Yes, yes, you heard right. A waste business can bring in really big money.
Unlimited possibilities
Currently, all conditions have been created to enter this area and take a worthy place in it. You will have few competitors, but the prospects for developing and expanding your empire are limitless. In general, it is very strange that in Russia this business still seems somehow outlandish and unprestigious. Meanwhile, in Europe it has long been appreciated.
Moreover, there is fierce competition in this area, and it is simply impossible to enter it without a sufficient number of business connections and financial resources. A waste business is interesting because you will always have raw materials to work with. Plastic bottles, broken glass, household waste - all this has been, is and will be as long as humanity exists. Experts estimate that every person on the planet produces about 250 kilograms of waste annually.
About providing documents
Before you start doing business with waste, you must obtain permission to engage in such activities from the Ministry of Environment. It is this authority that should issue you a license to collect and process solid household waste. However, for this you still need to undergo a special environmental assessment, which will allow you to obtain the necessary conclusion.
Its peculiarity is that it is issued to the entrepreneur one time for the entire period of the company’s existence and costs about 5,500 rubles. In addition, you will be required to get approval from the sanitary and fire departments. For a positive response from these authorities, draw up project documentation with a detailed description of the technological processes at your processing plant. These conclusions will cost you from 300 to 1000 rubles.
Think things through in advance
Experienced entrepreneurs say that in order to obtain the entire package of permits, it may take from 3 to 6 months. If you are planning to open a small processing plant, then register as an individual entrepreneur. To do this, provide the tax office with a corresponding application, a copy of your passport and pay the state fee.
And before investing your personal funds or borrowed loans in a dirty business, be sure to draw up a detailed action plan. You must also clearly understand what type of waste you are going to process, what principle will be used to deliver the waste, and, finally, where the processed products will be sold.
About investments
Let’s say right away that this business is not suitable for all entrepreneurs. As a rule, businessmen who have already succeeded in some business, have earned their first capital from it, and are thinking about expanding their empire into new areas, show interest in it. Experts say that opening a new universal plant for recycling various types of waste will cost about $20 million.
We think that because of this amount, many entrepreneurs who had previously thought about how to make money from garbage have lost all desire for it. But don't despair. You can get by with less money. For example, you can open a small factory that would be focused only on a specific type of waste. In this case, 80 thousand dollars will be enough to get started.
This amount will include obtaining all necessary permits, rent, purchase of all equipment, purchase of raw materials and, of course, the first salary for all personnel. As you can see, you can still figure out how to make money on garbage without having millions in your pocket. By the way, even less finance is required to organize a waste removal business: a new KamAZ garbage truck costs about a million rubles, and a used one costs half as much. But in such a niche, the big difficulties are finding clients.
There are nuances
Your income will directly depend on what type of waste the enterprise is capable of accepting, how it processes waste and the volume of its work. Entrepreneurs who have already made capital in this area admit that it is best to deal with paper and plastic. Processing of this particular raw material is considered the most profitable (about 50%).
In order to provide your enterprise with an uninterrupted supply of waste of this particular category, organize your own collection points. As a rule, small factories buy recycled plastic at a price of 14,000 to 18,000 rubles, then process it into special granules and sell it for 30,000 rubles per ton. The products of waste recycling plants are in great demand among companies dealing with small plastic items.
About the premises and more
In order to begin full-fledged work, you will need a spacious room. Its minimum size is 500 square meters. In addition, you must have about 100 square meters of storage space, as well as a room or a separate building for an office.
Experts in this business suggest locating their enterprise closer to the landfill outside the city. This way you kill two birds with one stone: you save money on renting premises and increase your income by reducing the cost of delivering raw materials. Your enterprise must have a minimum set, which consists of crushing equipment, a sorting line, a press, a storage hopper, and a magnet.
Don't spread yourself thin
It is also recommended to install additional melting furnaces, but this can significantly increase the amount of required investments. A minimum set of non-new domestically produced equipment will cost approximately $50,000. As you can see, before you start making money from garbage, you need to invest well.
However, it is not only the initial capital that is of key importance here. Before engaging in this type of business, think carefully about everything and draw up a business plan for your enterprise. With properly structured and organized work, you can start making serious money from garbage in the first year.
Let's sum it up
Currently, the waste recycling business is not popular among domestic entrepreneurs. This area is still treated as something inferior. In fact, the earnings from garbage can be very significant, and European companies have long understood this and are ready to invest millions of dollars in this business and compete in order to take their place in this market.
It's better to start small. Open your own mini-factory for processing paper and plastic. It is better to purchase equipment in Russia. The minimum set that has already worked will cost you 50 thousand dollars. In order to start making money as quickly as possible, move your enterprise to the borders of the landfill.
Considering the cost of a garbage truck that has already worked at another enterprise, it can be purchased in order to mobilize recycling as much as possible. And in order not to experience problems with raw materials at all, organize the collection of waste that interests you here at the enterprise.
In order to start this business, you need to have at least $70,000 in your pocket. Experts are confident that these funds can begin to return in the first year of operation. This means that in about a year and a half you will be able to justify your investment and achieve net profit. Therefore, it is worth trying your hand at this, albeit not very attractive, but profitable business.
Russia has long been choking on dirt and garbage, but all the good intentions of the state to organize its recycling end in nothing. RBC selected six companies capable of recycling waste in the country, forming a new multi-billion dollar segment of the economy.
Rubbish numbers
400 kg the average Russian family of four produces 150 kg of plastic waste and 100 kg of waste paper per year
15 thousand tons garbage is removed from Moscow every day
40 million tons solid household waste is generated in Russia every year
31 billion tons waste is buried in Russian landfills
44% Russians throw away food because they don’t have time to eat it
Company: Amigo-Service LLC (Nizhny Novgorod)
Field of activity: tire recycling
Owner and CEO - Rustam Aizatullin
Market size: 1 million tons per year
Revenue in 2014: 20 million rub.
Investments: 15 million rub.
Seven years ago, Rustam Aizatullin left the police to start recycling glass. His company Amigo-Service sold waste from the Bor glass factory to bottle production factories such as the Turkish Sisecam. In 2012, Aizatullin came to the Nizhny Novgorod business incubator Clever with a new business idea: to create a production facility for recycling old tires. For its implementation, he received a grant in the amount of 300 thousand rubles.
According to the Association for the Promotion of Retreading and Recycling of Tires "Shinoecology", about 1 million tons of used tires are generated annually in Russia, but only 5-7% are recycled. Aizatullin proposed recycling tires into crumb rubber, which can be reused in road construction, for sprinkling football fields and playgrounds. The Guarantee Fund of the Nizhny Novgorod Region three times issued a microloan of 900 thousand rubles to Amigo-Service. at 9.5% per annum for business development. In 2013, Aizatullin received 7 million rubles. in the Russian Bank for the Support of Small and Medium Enterprises and another 5 million rubles. in the form of a subsidy from the Nizhny Novgorod Ministry of Entrepreneurship Support. With this money, the entrepreneur purchased a premises with an area of 1,300 square meters. m in Dzerzhinsk, leased a Gazelle for collecting and transporting tires, and also increased the staff to 43 people. Today, Amigo-Service’s capacity allows us to process up to 200 truck tires per day (6 tons of crumb rubber), received under contracts with tire shops and from private assemblers. According to Aizatullin’s estimates, Amigo-Service currently recycles about 15% of used tires in Nizhny Novgorod.
Aizatullin sells his baby for 14-15 rubles. for 1 kg at a cost of 9 rubles. The entrepreneur plans to establish a complete recycling of tires. Now, on average, after recycling 100 tons of tires, 30 tons of waste remains in the form of metal cord and textile fiber, which are taken to a landfill. In the second half of 2014, Amigo-Service launched a pyrolysis unit, and is now completing experiments on remelting steel cord. At the output, the company should receive metal from which it plans to cast wrenches, as well as energy, which will allow the production premises to be fully illuminated and heated.
Company: CJSC "Aksion-RDM" (Perm)
Field of activity: extraction of rare earth and noble metals from production waste
Co-owner and CEO - Dmitry Kondrutsky
Market size:$1 billion per year
Revenue in 2014: RUB 3.7 million
Investments: RUB 47.8 million
In 2008, Dmitry Kondrutsky defended his PhD thesis on enzymes and biomolecules at the Volga Polytechnic Institute. As part of his scientific work, he invented a resin (axionite), which, when added to industrial waste, absorbs rare earth (indium, cesium, europium, etc.) and noble metals. Most rare earth metals are used in modern electronics, but almost none are produced in Russia. In May 2010, a venture fund managed by Bioprocess Capital Partners invested 18.5 million rubles in Kondrutsky’s invention. with the condition that the development of the project will continue on the basis of the Perm Chemical Company. As a result, Aksion-RDM CJSC was created (the venture capital fund participated in the project through the authorized capital, now it owns approximately 3/4 of the company’s authorized capital). In 2011, Aksion-RDM received a grant of 29.3 million rubles to improve technology, patent and enter the market. from the Skolkovo Foundation.
Using the attracted investments, Kondrutsky developed equipment with which rare earth metals are extracted using axionite. The device costs 800 thousand rubles. is already working at the Russian Copper Company and Acron, and the axionite itself is produced at the facilities of JSC Aksion-RDM. “With the use of axionite, mining companies can have an impressive additional profit of up to $20-30 million,” Kondrutsky tells RBC. Dmitry estimates the volume of the Russian market at $1 billion, but now 99% of it is free. Kondrutsky plans to occupy 80% of the volume over the next decade.
Company: LLC "Southern Federal District Processing"
Field of activity: plastic recycling
Owner and CEO - Roman Sebekin
Market size: 4 million tons per year
Revenue in 2013: 4 million rub.
Investments: 6.5 million rubles.
At the age of 21, Roman Sebekin decided to build a house, but it turned out that this was not a cheap undertaking. Therefore, he spent $500 to assemble a machine and organize the production of blocks of polystyrene (foam) filler. At first, Roman bought granules for polystyrene, but then he came to an agreement with several Volgograd hardware stores like Tekhnomarket: they saved on transporting plastic waste to a landfill, and he saved on raw materials. Sebekin paid private collectors 4 rubles for 1 kg of plastic. In 2008, Roman won a competition for young entrepreneurs organized by Opora Rossii and Promsvyazbank. As a prize, the entrepreneur received a preferential loan for three years in the amount of 1.5 million rubles. at 15% per annum. Sebekin used it to buy equipment for processing all types of plastic waste: bottles, toys, boxes, film. Four years later, Vagit Alekperov’s Our Future Foundation provided Sebekin with an interest-free loan of 5 million rubles. With them, he moved from the yard to a small factory, bought a vehicle and installed 300 tanks in Volgograd for the selective collection of plastic waste.
Today Sebekin has mastered 10% of Volgograd’s plastic waste, which is estimated at 30 thousand tons per year. The capacity allows the entrepreneur to produce 10 thousand polystyrene concrete blocks per month. “For a house of 100 sq. m need 30 thousand blocks, we sell them for 25 rubles. [at Leroy Merlin the same aerated concrete block costs 62 rubles], says Sebekin. - The cost of the block is 15 rubles. It takes 1 kg of plastic.” The factory is also capable of producing 15 thousand square meters. m of paving slabs and tiles per year. The revenue of Southern Federal District Pererabotka LLC in 2013 amounted to 4 million rubles. Our immediate plans include setting up production in Moscow and also starting production of polymer sleepers for Russian Railways.
Company: LLC "Bioenergia"
Field of activity: organic waste processing
Founder and CEO - Alexander Smotritsky
Market size: at least 200 million tons per year Revenue in 2014: n.a.
Investments: 20 million rub. Alexander Smotritsky, head of the company
“Bioenergia” (Ekaterinburg), recalls that personal experience prompted him to the topic of processing organic waste. “On the way to Koltsovo airport there is a large poultry farm that emits a very unpleasant smell,” says the entrepreneur. Having become interested in this issue, Smotritsky found out that in Russia poultry farms and other producers of organic waste (sewage, farms, etc.) most often transport waste to fields or store it without processing it. “According to various estimates, at least 200 million tons of such waste are generated annually in Russia,” he says in an interview with RBC. Meanwhile, organic waste is an excellent source for the production of biogas and fertilizers.
In Europe, over the past 15 years, several thousand biogas plants (BGUs) have been built in large agricultural complexes and on the basis of urban sewerage systems. A typical biogas plant is capable of producing 50 cubic meters from 1 ton of raw materials. m of biogas, from which, when burned, you can obtain 100 kWh of electricity, and up to 200 kg of fertilizers. The main problem of modern biogas plants is the slow process: fermentation of waste can take from 20 to 60 days. Smotritsky, together with his partners, developed the WiseSoil complex (protected by three patents), which, thanks to mechanical preparation and subsequent bacterial treatment, doubles the fermentation process of waste and doubles the biogas yield. This can significantly increase the economic efficiency of BSU.
From a ton of waste, which usually has a negative value, up to 100 cubic meters can be obtained. m of biogas, the combustion of which will release 0.2 Gcal of heat and up to 200 kWh of electricity, Smotritsky describes the economics of processing. - Another 1-2 thousand rubles. the sale of 200 kg of dry fertilizers can bring.” The WiseSoil complex has already been successfully tested at the BGU in Orenburg and is now preparing for test tests at a 1 MW installation in Brno by the German company AgriKomp. “This company has built more than 800 biogas plants in Europe since 2000,” says Smotritsky. “If WiseSoil’s tests at their station in Brno are successful, then they are ready to become consumers of our technology.” In the meantime, Bioenergy has attracted seed investments from RVC in the amount of 20 million rubles in exchange for a share in the company’s capital and is looking for an investor who is willing to invest another $2 million in the construction of a biogas plant using WiseSoil technology in Russia.
Company: LLC Small Innovative Enterprise Kera-Tech
Field of activity: production of protein additives in feed
Founders: Anna Linnik (60%), Kemerovo Technological Institute of Food Industry (40%)
Market size: 18 million tons
Revenue in 2013: RUB 808.4 million
Investments: 4.5 million rubles.
In 2009, as a student, Anna Linnik was working at the Research and Educational Center at the Kemerovo Technological Institute of Food Industry when a local poultry farm approached them with a request to test a new extrusion apparatus (high-temperature processing of waste from poultry slaughter into feed). The resulting additive was quite expensive, and Linnik had the idea to create a similar product - cheaper - using biotechnology. Linnik wrote a thesis about this and registered the Kera-Tech trademark.
With the help of a biological product invented by Linnik, organic waste from poultry farming (feathers, beaks, bird paws) is converted into a protein additive for feed. Typically, poultry farms purchase protein additives for feed separately (a ton of protein on the market costs 16 thousand rubles), but with the Kera-Tech drug they can almost completely switch to domestic production. “1 kg of biological product allows you to process 1 ton of waste into 890 kg of feed protein,” Linnik told RBC. The cost of the biological product is only 55-65 rubles. per 1 kg and allows you to reduce the cost of poultry feed by 18%. Every year, Russian factories generate 18 million tons of waste.
According to Linnik, the development of the idea is now at the stage of certification and preparation of a package of documents for the construction of an enterprise and the release of a trial industrial batch of the drug. Kerra-Tech received money for all this from grants and awards. In particular, within the framework of the federal target program “Scientific and scientific-pedagogical personnel of innovative Russia for 2009-2013,” Kera-Tech received 2.5 million rubles, and in 2013 the company received the Zvorykin Prize in the amount of 1 million rubles. “We estimate the volume of the Russian market at $2.5 billion per year,” says Linnik.
Company: LLC "Research Institute of Ecology and Rational Use of Natural Resources"
Field of activity: processing of oil and drilling waste
Founders: Yulia Deneko
Market size: 1 million cubic meters m
Revenue in 2013: RUB 808.3 million
Investments: 4.5 million rubles.
While studying at the Faculty of Ecology and Geography of Tyumen State University, Yulia Deneko was actively engaged in scientific and research research together with her father Viktor Ryadinsky. While surveying oil fields, they discovered that mining companies do almost nothing with drilling and oil waste. They are simply placed in special pools. Father and daughter created a company, which in 2005 was the first in the Tyumen region to begin processing oil and drilling waste. Earned from research work 4.5 million rubles. they invested in the purchase of the first truck and excavator.
In 2005-2013, NII EiRIPR LLC processed more than 1 million cubic meters. m of drilling waste, including about 250 thousand cubic meters. m in 2013. During processing, artificial soils are made from them, which are characterized by increased strength, and therefore can be used as foundations in the construction of highways. “Currently, more than 8 million cubic meters have been accumulated in the Tyumen region. m of oil and drilling waste, another 1 million cubic meters are added annually. m,” Yulia Deneko tells RBC. Average cost of processing 1 cubic meter m of oil waste at NII EiRIPR LLC is 3,500 rubles, and the potential market volume is about 4 billion rubles. in year.
- About landfills
- Recruitment
- Processing technology
- How much can you earn
According to statistics, up to 150 million m3 of household waste with a total mass of more than 30 million tons accumulates annually in our country. Only one person accounts for about 250 kg per year. household waste. And this is not the limit, since with the development of industry and technologies aimed at improving human life, the number of new synthetic materials is growing, and those already created are being more actively used.
About landfills
And where should all this “good” go? The decomposition period of just one plastic container is hundreds of years. Local authorities, represented by housing and communal services, simply cannot cope. Most landfills are formed illegally. What can I say, even legal landfills are created in violation of all norms and rules. Dealing with garbage using the classic method of arson is not an option. Burning garbage creates a haze of gases harmful to humans, plus mercury-containing lamps can be thrown into landfills, the arson of which is doubly dangerous.
In this regard, the issue of disposal and processing of municipal solid waste (MSW) is of enormous importance. And it seems that only business representatives can cope with such a task. Recycling waste should bring good income and only then the problem will move forward. Take Europe too. There, recycling waste is so profitable that politicians and the mafia are ready to fight for it. There this business is considered a “gold mine”. Plastic, glass, paper, metal - all this can be recycled and sold profitably to industrial enterprises. And if in European countries waste recycling is an overfilled niche, then in Russia this business is just emerging.
Step-by-step opening plan, business profitability
According to experts, the profitability of a solid waste processing enterprise can be 50% or more.
However, it is not so easy to recycle waste. To organize a large industrial complex for the transportation, reception, and processing of all types of household waste, tens of millions of rubles will be needed, mainly for the purchase of equipment and lines. Large areas of production premises (more than 500 m2) and a warehouse are also required. If it is not possible to rent them, then additional construction costs will be required. Plus, it is necessary to establish all communications, obtain permits, licenses, and so on.
State support is important here. Subsidies, grants, loans, whatever, just to give the business “financial support” for the development of a completely new business for Russian realities. Recycling of solid waste is an issue that is in the interests of local authorities. Therefore, they must take care of providing appropriate areas (land or building) for entrepreneurs who want to engage in this area.
Investments in this business may not be so “cosmic”. For example, you can avoid transporting waste, but organize only the reception of solid waste at the site of its processing. Waste paper is purchased for 50 kopecks, depending on the quality of the paper, and sorted plastic raw materials from 2 rubles per kilogram. Moreover, it is not necessary to recycle all waste. To begin with, you can start recycling only certain types of solid waste, for example, glass or polymers. In this case, you will not need to purchase a dozen different units and lines. It will be enough to purchase a certain type of press for the preparation of a specific type of secondary raw material.
Of all the varieties of household waste, the most in demand in the field of processing and production of secondary raw materials are:
- steel, aluminum - up to 100%;
- textiles - up to 50%;
- waste paper - up to 35%;
- glass - up to 35%.
Creating an enterprise for processing solid waste is especially beneficial in large cities, since a lot of “raw materials” are generated there.
How much can you earn from recycling solid waste?
The cost of one ton of processed and compressed secondary raw materials is approximately the following: plastic recycling- up to 15,000 rubles, aluminum can - up to 50,000 rubles, crumb rubber - up to 16,000 rubles, pressed cardboard - up to 12,000 rubles. In one shift, a small enterprise is capable of processing and receiving up to ten tons of secondary raw materials. Hence the monthly turnover of several million rubles.
An important point is that solid waste belongs to hazard class 4-5, therefore actions related to the collection, use, disposal and processing of solid waste are subject to licensing. The license is issued by the Department of Rosprirodnadzor for the federal district. The premises for processing solid waste must meet all the requirements of Rospotrebnadzor and Pozhnadzor, and also be located at a distance of at least 600 meters from residential complexes. Therefore, the ideal location of such an enterprise is somewhere on the outskirts of the city.
Recruitment
A separate issue is personnel selection. Garbage recycling is mostly manual labor. Therefore, even a small enterprise will require a staff of 25-30 people. At the same time, not everyone wants to deal with solid waste for a long time, hence the high staff turnover. The manager’s task in this case is to establish optimal piecework wages, increase employee motivation and pay bonuses. The main monthly costs of such an enterprise are the payment of wages to employees.
What equipment to choose for solid waste processing
There are a number of offers from a variety of manufacturers on the solid waste processing equipment market. According to Russian businessmen, it is not worth spending money on purchasing expensive foreign lines. And in our country there are budget equipment options that are not inferior in quality to foreign analogues, and are easier to repair.
Separately, it is worth highlighting the line for processing solid waste - the MSK 50 waste sorting complex. This line unites the entire waste processing chain, starting from waste reception and ending with its compaction and storage. The line is operated by 12 workers, 6 people on each side.
Processing technology
Wherein processing technology as follows:
The waste chute carries the waste to a receiving area, where large-sized waste is sifted out: televisions, furniture, tape recorders, etc. From the receiving area, using a loader, the sifted waste is fed into a pit and then onto a feeding inclined conveyor. From the inclined conveyor, the waste is transferred to a horizontal sorting conveyor, where it is sorted into fractions. Each conveyor is equipped with a frequency converter to adjust the speed. Selected waste fractions (paper, PET bottles, cardboard, aluminum cans, etc.) enter mobile carts through hatches in the overpass, on which they are delivered to the presses. Next, each fraction is pressed on the appropriate press, tied, stored and sent to purchasing enterprises (customers).
How much can you earn
This type of business has a profitability of 50%, which allows you to recoup the investment within a few months. Profit from the sale of processed raw materials can be up to 50,000 rubles per month, even from a small workshop.
How much money do you need to start a business?
To organize from scratch a full-fledged plant for processing all types of waste (paper, food, rubber, glass, etc.) you will need about $20 million. To organize a workshop designed for 1 type, the investment will be 50-200 thousand dollars.
Which OKVED code to indicate when registering a business?
For this business activity, we select code 38, which includes all processing of any type of waste, as well as their disposal.
What documents are needed to open
In this case, in order to avoid problems with the tax office, it is advisable to immediately register a limited liability company, taking into account significant financial flows. The following documents will be required:
- company charter;
- memorandum of association;
- minutes of the meeting of owners or the decision of the founder;
- Application for registration on Form 11001.
Which taxation system to choose for registering a waste recycling business?
Given the large volumes of income and expenses, you will have to settle on the general system - OSNO. It involves paying an income tax of 20%, as well as VAT at a rate of 18%. This mode will be applied by default, so there is no need to switch to it. But such a system is not subject to numerous restrictions such as the number of personnel, the cost of property, etc.
Do I need permissions to open?
It is necessary to obtain a license from the Ministry of Ecology giving the right to collect and process solid household waste. For this purpose, an environmental assessment will be carried out and an appropriate conclusion will be issued. After this, it is necessary to obtain permits from the sanitary service, water and municipal services of the city, and “fire departments.” The process of obtaining permits may take 3-4 months.
Arseniy Sheromanov has owned a waste disposal company for five years. What is needed to create a business? How to earn your first money? Where can I get the initial capital? What qualities are the most important for a businessman? How to get to the first position in the market? A businessman with extensive experience will answer this and much more.
Main points of the interview:
- Start date of activity- year 2012;
- Main activity- recycling;
- Initial Investment- 4 million rubles;
- What did you do before starting business?- restaurant director;
- First serious earnings as a businessman- 130,000 rub.;
- Company development plans- become a leader in this industry;
- What qualities are the most important for a businessman?- openness, modesty, sense of humor.
How did the waste disposal business begin and how did it develop?
I was born into a family of scientists. My father was a physicist, and my mother worked in medicine. As you understand, I had two options for what to do with my life. After school I went to study at the medical academy, but in my second year I was expelled for poor academic performance.
At that time I was twenty years old, I was drafted into the army. After two years of service, I went to work as a waiter. Over eight years of working in the restaurant business, I grew in my position from waiter to director. But there wasn’t enough money, so I decided to dramatically change my life.
At that time, most of my friends went into business. I felt envious and uncomfortable. I thought: why am I worse? The matter remained “small”. It was necessary to choose a niche. There were several options:
- sale of goods;
I discarded the first option because I was very tired of this area. “Salesmen” always irritated me, so I couldn’t go against myself. The field of waste disposal and recycling seemed tempting and interesting, so I settled on it.
To carry out activities, it was necessary to register a legal entity and obtain numerous permits. It took a lot of effort and time to receive the papers - six months.
The waste disposal industry requires large initial capital. The initial investment amounted to four million rubles. I borrowed part of the amount from the bank, which I did not regret. It seems to me that a loan is the best option for finding money.
For the above amount, I purchased two lines of equipment, which allowed me to start working in two directions:
- Recycling.
- Garbage sorting.
If we talk about the premises, there were no problems with it. From his late father he inherited an area in an industrial zone, which was used as a warehouse. The area was so large that I only used half of it and rented out the rest. This allowed me not to think about repaying the loan.
The waste management business is not automated. At first, forty workers worked at my enterprise. I saved a lot on their labor, since all the workers were from Central Asia.
As for special vehicles, at first I rented garbage trucks, and also had several drivers on staff. Now everything has changed, we are cooperating with a company specializing in waste transportation. We're losing a lot of money, but we've saved ourselves a lot of problems.
Do you remember your first serious income not as an employee, but as an entrepreneur?
Of course, this is impossible to forget. The company started making money from the first month, I didn’t see any money for the first six months. They went to pay workers, buy equipment, and pay off debt to the bank.
After six or seven months, I saw the first money - 130,000 rubles, for which I flew to Dubai with my wife.
What helped during periods of crisis, when everything collapsed and businesses closed?
My business is not subject to crisis, since the enterprise is supported by the state. We were not affected by the crisis of 2008 and 2012. This does not mean that there were no difficult periods.
Two years after the start of activity, an inspection came in from the migration service of the Russian Federation. As I said earlier, I saved a lot on workers’ labor, which I later regretted. Forty people were immigrants from Tajikistan; of course, they did not have any documents.
I lost a huge amount of money. After this incident, only citizens of the Russian Federation work at my enterprise.
During this period, the support of loved ones, my ingenuity and professional competence helped.
Why don’t you go to the capital, any Russian metropolis, or abroad? What's going on in the provinces?
Samara is a metropolis, more than a million people live here. I have repeatedly thought about moving to the capital. You have to understand, my business is not typical. We have not captured the entire market of the Samara region; we have many competitors here.
As you understand, there are even more competitors in Moscow. To cover the metropolis, colossal funds are needed, which are not available now. I think you should first capture the market in one city, and then look at the second, third.
If we talk about abroad, this is impossible. It is unrealistic to organize such a business abroad. Abroad, of course, attracts me. But if I go abroad to build a business, then the field of activity should not concern my profile. But this is my personal opinion, I could be wrong.
From what sources did you form the start-up capital? How much money did you need at the initial stage? What did you have to spend money on?
I have already stated that the waste disposal and recycling business requires enormous investments. The amount was four million rubles. Money was spent:
- for the rental of specialized vehicles;
- for the salary of an accountant, workers;
- for registration of a legal entity and payment of other state fees;
- for the purchase of equipment for sorting and processing waste.
It’s good that I had free space at my disposal. Because long-term rent at that time was an expensive luxury for me.
I took out three million rubles on credit, an entrepreneur I knew invested five hundred thousand, and the last part was invested from my personal budget.
How did you scale up your activities? Did you use government support?
The business started with a loan. For the first six months, the company worked at zero, since I invested the money I earned back into the business. A businessman friend invested in my company and now has a small stake.
If we talk about state support from a material point of view, I did not resort to such help. However, you must understand that in my business there is nowhere without government support. The support of the state is that it helps in obtaining permits.
How was the activity legalized?
The company is legally registered. At the beginning of my activity, I opened a limited liability company. We work according to a simplified taxation system.
At the beginning of the activity, several business permits were obtained.
What is your relationship with inspection authorities?
Checks are routine. Once a year the equipment is checked for functionality. The last time the tax service checked it was three years ago, everything went well. Once the company was checked by the migration service.
Is there seasonality in your business?
Seasonality? Of course not. There is always waste, so the process of recycling, sorting and processing waste is always active. This is one of the main advantages of this niche.
What services do you offer?
Initially, the company specialized only in waste sorting. However, three years later he saved up money and started recycling waste.
I thought for a long time whether it was worth getting into the waste disposal niche. Since this is an expensive process and not always profitable, it is rarely possible to carry out proper combustion according to all standards. But I took a risk, and now we are specializing in this process. It brings in twenty percent of all profits.
Do you interact with the Internet?
We don't have a website. I do not get the point of it. The company does not need to interact with customers. We are looking for all personnel via the Internet. I think this is the most convenient way.
Is your business automated? What is your role?
If by the term “automation” you mean the operation of the enterprise without my participation, then no. The company does not make decisions without my knowledge. I think that the company could not have operated successfully for six years without my participation. I am at work from morning until late evening, which I do not regret. I enjoy doing this activity. Younger entrepreneurs have long been advised to outsource half of their processes, but I don’t want to take risks. And I can’t imagine what I would do in my free time from work.
Are you planning to develop in a different direction?
I like the construction niche. You can earn big money there. To begin with, you need start-up capital, which you don’t have. Now I am looking for an experienced entrepreneur in this field who can become a partner.
Are you familiar with the concept of “franchise”? How do you feel about such a business?
Familiar. I’ll say more, I purchased a coffee shop franchise, but things didn’t go well. This is my mistake, because I did not fully study and calculate the niche.
Franchising is an interesting type of business. You need to remember when buying a franchise, you still have to work hard to make money.
What should a successful entrepreneur be like?
Most importantly, a businessman must calculate the situation ten steps ahead. I think an entrepreneur should be humble. You shouldn't show how much money you earn.
What advice can you give to people who dream of starting their own business?
A person who believes in himself and his business can achieve success in business. A person must believe that his product is the best.
A young entrepreneur must understand that he will hear many refusals. They should not influence a person's intentions.