Record Destruction
When I first realised that we outsourced shredding of documents at one of my companies I was mildly shocked. With a bit of thought it is obvious that paying staff to stand at a shredder all day is not going to help the core business, and from that point of view outsourcing this kind of activity is no different to outsourcing the staff canteen, or security work.
You can purchase a home shredder that will deal with even difficult items like CDs and DVDs for a couple of hundred dollars and then you just need to persuade some small businessmen that they will be more productive letting you shred their documents than doing it themselves.
You may not want to purchase any equipment until you have landed a couple of clients. If this is the case then make sure you know where to get your tools of mass destruction and how long they will take for delivery. The last thing you want to do is land a big fish and then not be able to come through.
If you currently work in an office environment then try to find out what your company does. With us we do most of our own shredding but have secure bags that are collected separately from the trash for anything that might be a little sensitive. These are zip locked before leaving the premises and then taking away for shredding and incineration.
Other companies might be happier if you undertake the shredding work on their premises, and yet others may want to know that the shredded paperwork will be re-cycled as opposed to incinerated. Be prepared to discuss options and work with the customer to find a system which works for them.
In order to find out whether this will be sufficiently profitable for you, call a couple of records destruction firms in your area. Pretend to be interested for your own business and ask for quotes, or even a sit down meeting. You will be able to come up with the entire business model simply by asking what the other guys do and understanding their pricing. Remember you may need to factor in costs such as running a van for pick up services, insurance and other items that may not be immediately obvious.
The key to finding customers here may mean a little more leg work than finding
retail customers, but you should get results from trying one or more of the
following :-
Networking
Direct Response advertising
Cold Calling
If you are already a member of a business menˇ¦s club, investorsˇ¦ club, golf club or similar entity then you are well on the way. Start handing out your business card and telling your peer group what you are up to. If you are not already a member of a club then think about what you would enjoy participating in and whether there are likely to be other business owners there. Family, friends and colleagues are great, and your employer may consider using your services but you will ultimately need a wider network than this.
Advertising in the Yellow Pages and other business directories is a must in order to attract customers whose contracts are up, or who are looking for your service for the first time. In addition you should consider placing adverts in trade journals and the business section of quality newspapers. Try to target groups like accountant and lawyers who may generate a lot of spare paperwork as well as what is required for their records.
The Yellow Pages and other business directories may well be where you find your customers, as well as advertising there. If you are not comfortable making cold calls yourself then hire a couple of students, or housewives to call offices during the day time. Pay them a small hourly allowance and a bonus for any firm leads that they generate. If you really want to invest in this then pay a copy writer to write the script for these telephone calls. Start with smaller firms until you (or your team) is more confident, before moving onto the bigger fish. It will be more impressive if you already have some clients before you approach the bigger guys.
Building a website is recommended for most businesses, but you are unlikely to attract much business this way. This is very much a local business, serving other local businesses and whilst it can be expanded over time will probably serve a franchise model better than an organic expansion to other cities.
You can buy shredders at your local stationary or household electrical store. Make sure that you get one which can handle thicker items such as cardboard, CDs etc. You will also need to think about disposal of the waste you generate, donˇ¦t imagine you can just put it out with the trash, or bury it in the garden.
Finding staff will be important once you start to grow. Students and housewives are a fun, flexible source of employees to start with but make sure that these are people you know and trust, or take appropriate references and run criminal background checks. This may prove expensive when you are starting but is worthwhile in terms of guaranteeing confidentiality to your clients.
Try to be flexible in your approach. Working with the client to find the solution that they are happiest with may mean a little more work, but could also mean longer contracts and a higher margin.
Most companies will want their shredding picked up at the end of the day, which makes this an ideal part time business, providing you can get away sharp at the end of your normal working day.
Try asking your current employer for your first contract. You should be able to understand how they evaluate projects and what the benefits would be for them. This could also work for students approaching their college or university for a break.