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Document Shredding Business Idea

With the proliferation of identity theft, there is an increasing need for the document shredding business. Document destruction protects essential financial and proprietary assets.

The Federal Trade Commission (FTC) estimates that identity theft crimes affect nearly 9 million Americans each year. Some thieves even rummage through garbage to collect sensitive information.

You will be helping to prevent identity theft by destroying these confidential identity documents. Tailor services to fit customer needs – for both individuals and businesses.

An individual can purchase a small paper shredder, but you can still offer residential junk mail shredding for busy customers.

You should advertise especially heavily during the tax season, and offer mobile shredding to customers who need it.

Businesses find it inefficient for their personnel to shred large quantities of paper documentation. Companies will be more lucrative customers due to higher volume but competition will also be fiercer.

A future growth plan could offer records management too – including warehouse storage, security, and destruction at a specified date.

Another possibility is electronic media destruction of physical hard drives and diskettes. Already there are electronic shredding applications that contort digital data.

Understand laws regulating confidential document handling such as the Gramm-Leach-Bliley (GLB) Act governing "Disclosure of Non-Public Personal Information". The Fair and Accurate Credit Transaction Act of 2003 (FACTA) controls financial identity issues.

Develop A Document Shredding Business Plan

Develop a business plan for advertising, sales, and accounting. According to industry experts, approximately 63% of your gross revenues will go to expenses. Recycling shredded documents will provide added income.

Establish a high level security hiring process which runs criminal background checks for potential employees. Most businesses in this sector have general liability insurance for $1 million, though some increase this coverage to $3 million.

Advertise in business journals for business customers, and advertise in local newspapers or distribute leaflets door-to-door to reach homeowners.

Your document shredding business must ensure maximum security in destroying private and sensitive material, as this will decrease your client’s potential liability.

For scheduled pickup, use a security bag. Develop a confidentiality policy showing how your record destruction method guarantees privacy. Provide a notarized "certificate of destruction" in addition.

Competitors include garbage companies and shipping firms – determine your advantages against each one.

Building Up Credibility And Trust

Investigate professional document shredding bodies: the National Association of Information Destruction (NAID) uses a certification process measuring security, screening and destruction processes, with audits by Certified Protection Professionals.

Bonding and Better Business Bureau accreditation are also wise options.

Different paper shredding technology offers different security levels. The "pulverizing" paper shredding technology boasts superior security over strip, piece-and-tear and cross-shredding techniques. High-volume shredders offer destruction rates of 5000 – 6000 pounds of documents per hour.

A successful document shredding business requires a good, high security reputation and good customer service. Glowing customer testimonials will bring in more business. All it takes is one mistake in compromising data, however, to ruin your business.

Plan ahead, always providing the best service possible, protect your customers from "identity theft", and profit from your own document shredding business.

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