With increased regulations striving to reduce the danger of identity theft, paper shredding has grown into an ideal business opportunity for any entrepreneur looking to start a profitable small business. But just like starting any recycling business, there are a number of considerations.
Note that it is never ideal to venture into an industry without knowing the current players in the market. That is why it’s advisable to first research local competitors before making any investments. Identify any niches that might be under-served. Is there room in the community for a new entrant?
In addition, it is imperative to first create a business plan. There may be free resources available to help in this regard, such as the local economic development corporation. They can offer funding ideas, including applying for a SBA – approved loan through a local bank, or other sources.
However, when considering venturing into any new industry, always ensure to reach out to the relevant trade association—in this case, the National Association of Information Destruction, and also to read relevant industry publications such as Security Shredding & Storage News. Trade associations can help connect you to small operator members in other parts of the country, while case studies featured in trade publications can prove useful.
Additionally, while normal business advice applies in terms of small business licence and permit requirements, note that a paper shredding business is really in the safety and security field, so you may need to have certain permits or licenses from your community in order to operate legally.
Typically, the overall US paper shredding market is very competitive with downward pressure on costs. Security and confidentiality are the keys to success in the paper shredding business. In fact, these two words should be the main selling points.
So it’s imperative you know local laws relating to identity theft and deliver a proper destruction certificate at the end of each shredding operation. Here are paper shredding franchise opportunities to consider in the United States.
3 Best Paper Shredding Franchise Opportunities and Their Cost
There are a few important benefits to invest in this mobile document destruction business. This security business is perfect for startup operations; it requires a few dedicated employees and has low operating overhead. This industry is stable, sales – driven and has proven growth consistency.
Typically, the low – turnover customer base consists of a large number of accounts that usually pay within 45 days. Bad debt is almost unheard of in this business. The destroyed paper is a recyclable commodity that creates an ongoing revenue stream as well.
But unlike typical franchises, there are no royalties, territory limitations or franchise fees. Attractive exit strategies and an exceptional return on investment also differentiate the independent on – site document destruction opportunity Shred – Tech® is offering.
- Initial Investment: $200,000
In the United States, all businesses need the ability to secure sensitive information so it doesn’t fall in the wrong hands. All documents, whether they are paper or electronic documents go through a cycle of creation, distribution and destruction.
Making sure that both electronic and paper documents are destroyed properly is the main priority of document destruction companies like Shred – It. Shred – It works with all business to customize their document destruction needs. It handles both paper and electronic media ensuring that sensitive materials are destroyed correctly.
- Liquid cash requirement: $1,000
This is a service-driven document destruction company dedicated to on – site paper shredding: one of the most secure, convenient and cost – effective methods of destroying and recycling confidential documents and materials. There are many benefits to having a B2B (business – to – business) franchise with Proshred Security.
With a Proshred business franchise, you will more or less work a 9 – 5 schedule, leaving you with time to enjoy life outside of your business. The freedom the B2B franchise provides also includes looking for your own clients rather than waiting for clients to come to you (which they do as well). This mobile freedom will allow you to join business associations and network with other professionals to make strong relationships and potential partnerships.
- Initial Investment: $333,000
- Net – worth Requirement: $750,000
- Liquid Cash Requirement: $250,000
Corporations must protect themselves against espionage, safeguard trade secrets and guard proprietary information. The Federal Bureau of Investigation (FBI) estimates that US corporations lose more than $24 billion each year to information theft. From a business standpoint, the most economical, secure, cost efficient way to join this lucrative industry is to consider any of the franchises mentioned above.