Should I buy a shredding business or start one?
Buying gives you an existing route, a client book and equipment already running, but also inherited contracts and reputation. Starting gives you a clean slate but you must win trust and source trucks yourself. Which suits you depends on your capital, patience and appetite for inherited problems. Ask the same questions of both paths.
In practice clients are handing over sensitive paper and will only do that with a company they trust. That shapes the choice. The question is less about the machinery and more about whether you would rather inherit a trusted name with its flaws, or build one with no history to lean on.
What an existing company gives you
A running company comes with a route, a client list, trucks and plant that already work, and staff who know the process. You start with existing revenue to examine rather than a forecast. The cost of that head start is paid in due diligence: you need to confirm the accounts are real and the equipment is sound. Our page on assessing equipment condition is a place to begin.
What inheriting also means
You inherit contracts, habits and reputation, good and bad. A client who stays because of the old owner may not stay for you. A past incident may still be remembered. Ask which contracts can move to you, how each account feels about the owner, and whether any complaint is unresolved. Your lawyer can read the agreements with you.
What starting from scratch means
Starting means finding your first clients without a track record, sourcing trucks and a shredder, and building the custody and certificate process yourself. You choose every standard from the beginning, and nobody else’s mistakes come with it. But the early months can be slow, and trust is hard to shortcut.
Questions to ask either way
- How will clients know their material is handled safely, and how will I prove it?
- Where does the recovered paper go, and is that arrangement dependable?
- What would I do if a key truck were out of service for a week?
- What can my lawyer and accountant confirm before I commit?
Related reading
11 pages on the same subject, grouped by topic.
Due diligence
- Expert answerHow do I assess equipment condition before buying?
- Expert answerHow do I verify a seller’s financial statements?
- Expert answerWhat financial records should I ask a seller for?
- Expert answerHow do I check whether a business actually makes money?
- Expert answerHow much does due diligence cost when buying a business?
- Expert answerWhat insurance history should I review before buying?
- Expert answerWhat environmental checks do I need before buying a business?
Legal
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 02Business Development Bank of CanadaGovernmentBusiness plan template for entrepreneurs
- 03Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 04Office of the Privacy Commissioner of CanadaRegulatorPIPEDA Fair Information Principle 7 – Safeguards
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