If you’re considering starting a recycling business in Nigeria, one important question you’ll ask is, “What will starting a recycling business in Nigeria cost?” The answer is “It depends” because the cost is influenced by factors such as ”the recyclables, the size of the facility, equipment needed, operation method, among others.” As with every other business, upfront knowledge reduces the likelihood you’ll spend on unnecessary items.
This article will provide a complete breakdown of the costs of starting a recycling business in Nigeria.
Breakdown of Startup Costs
- Facility & Storage: Storage space is essential to the recycling business; you will need space to store the recyclables after you collect them and before selling them. However, the necessary storage space varies—depending on the business scale you intend to start, you can get storage as small as a 12 X 12 container or as big as a plot. If you already have space in your compound or elsewhere, you can use that and save on storage costs.
- Transportation: Except in a few cases where the seller brings the materials to you, you’ll most often need to go to the seller’s location to pick up the recyclables, so you need to budget for transportation costs. Some business owners also employ collectors to go around picking these materials. If you decide to go this route, you’ll also need to buy wheelbarrows for your collectors.
- Marketing: You’ll need to promote your recycling business. This will include printing flyers, posters, and other collateral. The cost varies based on the quantity and quality of the flyers and posters you want to create. A beautifully designed flyer printed on glossy material costs more than plain white paper text. You will also need to factor in design, printing, and distribution costs. Ultimately, marketing cost depends on your budget; there’s no fixed price you must spend on marketing.
- Operational Costs: It is essential to factor in operational costs like;
- Staff Salaries: Depending on your availability, you might need to employ some staff, including collectors. You might also need a security guard to protect your materials from theft in some locations.
Cost Variations & Considerations
As you’ve most likely noticed from the breakdown section, the total cost of starting recycling isn’t fixed and varies based on many factors. In addition to the already listed ones, these factors also affect startup costs;
- Business Scale: The startup cost is proportional to the size – you can rent a plot or a small container shop, employ one collector or 20 collectors, or print 10 or 100 posters. You need to decide the size you want to start based on the available resources and buy the essentials.
- Location: Starting a recycling business in a remote location in Lagos like Badagry will differ from starting in an urban area like GRA or Ikoyi.
Strategies for Minimizing Startup Costs
Just like with every other business – when starting a recycling business, it is essential to maximize resources; some tactics that can help reduce the startup costs include;
- Consider getting used equipment – they’re usually less expensive.
- Partner with existing collectors with equipment such as barrows, jumbo sacks, and established routes.
- Consider conversion-based employee remuneration for a start as opposed to salaries.
Starting your Recycling Business With Scrapays
Many Nigerians like you want to start a recycling business due to its massive profit potential, but only a tiny percentage eventually do so due to the complexity of the business and lack of knowledge about how to start, among other challenges.
Scrapays eliminates these barriers to entry, makes it easy for you to start your recycling business in the shortest time, and helps you not only begin but also succeed with your online business. The average Scrapays agent makes 200k/month.
Start your recycling business as a Scrapays agent today—you’ll be up and running in days.
