How to start up a waste management business in Nigeria The waste management business is still relatively new in Nigeria and West Africa hence there isn’t a stiff competition yet. This business can be classified as a multi-million Naira business, there are already some Nigerian entrepreneurs raking in millions from the business.
Do you want to start a waste management company? If Yes, here is a complete guide to starting a waste management business in Nigeria.
Best legal entity to use for a Waste Management Business
Starting a waste collection and management business is indeed a serious business so the legal entity you choose will go a long way to determine how big you want the business to grow. No doubt choosing a legal entity for a business can be a bit challenging.
When it comes to choosing a legal entity for your waste collection and management company, you have the option of choosing from general partnership, a limited partnership, an LLC, a “C” corporation, or an “S” corporation. It is important to clearly state that these different forms of legal structures have their own advantages and disadvantages; which is why you must weigh your options properly before making your choice.
These are some of the factors you should consider before choosing a legal entity for your waste collection and management business; limitation of personal liability, ease of transferability, admission of new owners and investors’ expectation and of course taxes.
If you take your time to critically study the various legal entities to use for your waste collection and management business, you will agree that limited liability company; an LLC is most suitable. You can start this type of business as limited liability company (LLC) and in future convert it to a ‘C’ corporation or ‘S’ corporation especially when you have the plans of going public and international.
Choosing a niche
The first and foremost thing to do, before starting a waste management business, is to understand your niche. Depending upon your budget, you can select your niche or even a combination of 2 or more types of wastes. There are several types of waste products and materials, each of these wastes requiring different means and procedures for disposal. Some of the different types of waste disposal businesses are:
- Hazardous or toxic waste disposal business
- Medical Waste disposal business (e.g.: used needles, syringes, soiled clothing, chemicals, medical devices etc.)
- Biomedical Waste disposal business (e.g.: unclaimed dead bodies of human beings or animals)
- Electronic waste disposal business (like CDs, computer parts, mobile phones)
- Green waste disposal business (decomposable materials like leaves and grasses)
- Construction waste disposal business (e.g.: nails, insulation and electrical wiring, tree stumps etc.)
- Nuclear waste disposal business.
- Household Waste disposal business (e.g.: rotten vegetables, newspapers, cardboard etc.)
- Chemical waste disposal services (e.g. chemicals used in factories, laboratories etc.)
- Industrial rubbish removal business (e.g.: wastes generated in mining, manufacturing, construction and metallurgical industries).
- These can also be categories as commercial waste disposal business and household waste disposal. It’s totally upto you that know you understand your market to capture it.
Before starting your waste separation business, get a clear idea of your potential competitors, local junk haulers in your region and their pricing. Compare these with your costs to get an idea of the profits. Understand how tough the competition in the market that you are considering is. If the competition is too tough, you might need to think about starting your business in a different area where these services are not being provided or might have to choose a different niche. Look at major players and even smaller, competing businesses. Decide if you wish to focus on residential or commercial junk removal. Take a look at their advertising strategies, prices, and service areas.
Next, see how big is the market, whether you will be able to sustain or not. Research the prevailing junk disposal business in your area. Try to have a conversation with someone in the same business, in particular in a different city and is willing to discuss the industry with you. Also, figure out where you want to sell; to the landfill, scrap dealers, to nearby charities, or for some other use.
Create a business plan and state your business objectives. Explain what exactly you will do, what will be your target market, what are your specialties, what makes your business unique and better than that of your competitors etc. Explain your pricing model, startup costs, marketing strategy, and how you plan to fund your business.
To have a business plan prepared for you, send an email to firstname.lastname@example.org or contact 0810563601
your Waste Management Business becomes the next important thing. Starting a waste collection business comes with its own share of challenges so it is important to choose the location wisely. It is important to have a contract for a place where you plan to dump or burn waste, preferably away from the cities with the medium cost of transportation involved and to keep away the city from all sorts of diseases. One can only do this in a land designated for waste collection and management companies and for waste recycling plants.
This is the list of the important equipments required to set up a waste management business in Nigeria.
- Waste Collection Truck: You can either use a second-hand van or truck or buy a new one to transport client’s waste to recycling or disposal facilities. To save money, you can also opt for a rented junk removal truck instead of buying a new one initially. The truck should have large load capacity and good fuel economy
- GPS system
- Heavy Duty Work Wears : To remove dirt and garbage, you would need durable work clothes, gloves, and rubber boots. Loose fitting trousers are suited for both indoor and outdoor jobs and are also comfortable. Clothes should be such that they prevent household and garden pests from biting you.
- Shovel and rake
- Heavy-duty Protection: These include facial masks and goggles, dirt and product separator to prevent any contamination from dust and dirt.
- Incinerator, trash cans, dustbins, waste bags, hose and pipes, etc
Register your company
Register your company name according to the requirements of the corporate affairs commission( CAC), your local government and authorities in charge of waste carriers. Contact your local chamber of commerce to gain more insights for this as registration laws differ for every state.
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