How to Start a Paper Shredding Business

Most of this website is about how your own business can select a paper shredding business. Here's a different angle: how and why to start such a business.

There are opportunities to start paper shredding businesses because of the laws that require stricter privacy regarding how papers are handled and because there is a much greater awareness from the public at large about identity theft and how important it is to keep confidential documents private. From tax documents to legal papers to credit card receipts to employee paperwork, any business has a lot of paperwork that must be dealt with properly and securely. That is what you might come in.

This article is primarily for entrepreneurial people who are thinking of starting a small business to do paper shredding for local businesses and even individuals. If you are located in a town or small city, so much the better, as the national paper shredding services may not have so much of a foothold there as they do in the larger cities. But even if you are in a large city, you can probably carve out a niche. Just spend some time examining the existing businesses and what they charge, and then think of where you might fit in.

There are essentially two business models for you to consider. In one, you have a place where individuals and small businesses can bring you documents that you shred. In the other, you are mobile. You can of course offer both.

Mobile Shredding Units

How to get started depends largely on your own skills and finances. If you have the funding to buy a mobile shredding unit, that would be one very good way to start your own paper shredding company, provided that you also know how to do some marketing and to reach your audience.

In a mobile shredding unit, you have a truck with a paper shedder in the back of it. So you or your employees can drive to your customers' locations, take the papers to be shredded out to your unit, and do the shredding right there, quite possibly with someone from the business watching to be confident it is done. (A tip here: you will need to take the papers out of the building and into your truck in such a way that a crucial document does NOT blow down the street in the wind! Attention to detail is important in this business.)

Since everyone seems to be so busy these days, a business advantage you have with a mobile setup is that you are saving your customers time. You go to them, they don't need to haul a bunch of paper to you. Often small businesses keep papers past the time they legally need to, either because they don't know how long they need to keep things or simply because they haven't wanted to tackle figuring out what to get rid of. 

Some Tips for Starting Your Business

1. Now is not a great time to go deeply into dept, so if your funding is  modest, let your startup also be.
2. Inform yourself about the laws that pertain to paper shredding. There are national laws, but there may also be laws in your state and even your local jurisdiction that apply. Your customers will be relying on your knowledge, so not only do you need to inform yourself now, you also need to set up a method you will use to keep abreast of the laws. This could be by using a lawyer who specializes in the topic.
3. Your customers will want reassurance that you are totally trustworthy and so are any employees that you may hire. You may be bonded, you may use a confidentiality agreement that covers every person in your business, and you may choose other means. But the key to success is to develop relationships with customers who know that they can trust you with their private documents.
4. In presenting your business to potential customers, be business-like and professional. Always return phone calls and be on time for appointments. Dress appropriately. This should all be obvious but it is worth mentioning, just to be sure.

Shredding is a growing industry. Consider whether you have the skills, funds, and interest to start a paper shredding business!