How to Start a Business Recycling Cell Phones

by Tara Duggan

Starting a business that specializes in recycling cell phones typically involves researching recycling services, writing a business plan and marketing your company’s services. A cell phone recycling business usually offers customers the opportunity to get money for their old phones. To reuse phones, ensure they work properly, have not been water damaged, have all personal information removed and have no broken parts before sending them to a service, such as Flipswap or Gazelle who reuse working electronic or recycle nonworking parts.

1. Use the resources by Earthworks, an environmental nonprofit organization, to research the benefits of cell phone recycling so that you can use this information in your business plan. For example, by collecting phones replaced by the latest technology for reuse or recycling, you help people contribute to reducing the amount of solid waste put in landfills. All makes and models of phones can be recycled, including the batteries and chargers.

2. Analyze the competition in your area. Determine if other small businesses offer cell phone trade-in programs. List the strengths and weaknesses of your competitors so that you can fill gaps left by their programs. Identify potential customers, such as students, so that you can target your marketing campaign.

3. Write your business plan using the resources provided by the Small Business Administration and SCORE websites. Download a free template from those websites or establish your own format and structure. Typically, a business plan includes an executive summary, market analysis, company or product and service description and financial information. Use your plan to obtain funding required to start your business recycling cell phones.

4. Create a website to advertise your business. Obtain marketing collateral, such as the brochures and posters, from recycling services, such as Flipswap or Gazelle. Establish a way to receive payment for your services or offer credits to your customers. For example, the Flipswap Instore program allows you to use an online price guide and free rating tools that allow your customers to trade in their current phone get a credit to buy something else.

5. Establish a process to collect and ship cell phones and accessories to recycling services. Once you have determined the trade in value of phones collected, the recycling service typically pays shipping costs. Using their website, print out a prepaid label to ship the phones.

6. Use the resources provided by the website to structure your business, name your business and register the name so you can pay your taxes as well as follow federal, state and local regulations. Use the SCORE website to locate a mentor, specializing in minimizing electronic waste, who can help plan, launch and grow your sustainable cell phone recycling business in your area.

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