What should I check before buying a paper shredding business?

Clients hand a shredding company paper they cannot afford to lose track of. When you look at a shredding business, you are judging how dependable its service is and how well it can prove what it did with every box. The checks below start with the work that repeats and move to the records that back it up.

Recurring service or one-off jobs

Ask how much of the work is scheduled pickups from locked bins and consoles, and how much is a purge, where a client clears out old files once. Scheduled service repeats and is easier to plan around. Purges can be large but may not return. Ask for contract terms, renewal history and any customers who have cancelled lately, along with the reason each gave.

Mobile truck or plant

Some companies shred at the client’s door in a truck, and others haul paper to a plant. Each needs different equipment, staff and upkeep. Ask about the age and repair record of the shredder, the truck or both. Ask who buys the shredded paper and how the business is affected when what that buyer pays changes. Find out what happens to service when a machine breaks down.

Records, clients and staff

Clients often want proof that their paper was destroyed. Ask to see the chain-of-custody records and sample certificates of destruction, and ask how they are kept. Check whether a few clients make up most of the income. Ask how staff are screened and supervised. Privacy duties around the information the business handles are a question for your lawyer.