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WASTE MONETIZATION SM

 

 

 

Waste Monetization^SM ('to save, divert or capitalize from your waste stream' as defined by WasteCare) is a rapidly growing necessity as businesses compete to reach optimum efficiency.  Any business that is spending at least $1,000 or more per month in waste processing costs has a good opportunity for Waste Monetization^SM . Of course, the larger the yearly waste processing expense the greater the opportunity for rewards. Oftentimes the Waste Monetization^SM  can occur without spending any money on equipment or making other burdensome commitments to long term waste management arrangements, which can be very intrusive.

Typically the first step to Waste Monetization^SM  should not require the purchase or implementation of equipment, but rather a simple, straight-forward assessment of some basic information and observations that can be performed internally rather than by hiring others.  In addition, if equipment is purchased too early in the process it can serve to cover up inefficiencies that should be pinpointed before equipment purchases are made. Much more leverage will be gained from equipment if it is introduced at the right time and for the right reasons.

Oftentimes the biggest obstacle to Waste Monetization^SM  is just a matter of getting organized and knowing how and what types of information and resources to organize as it relates to waste processing. Waste Monetization^SM  and Waste Optimization go hand in hand but waste optimization activities have to be structured so that the Waste Monetization^SM  benefits can be easily measured and managed incrementally as the organization builds upon each layer of the Waste Monetization^SM  process.

As systems, internal and external controls, and business framework (in general) are developed to address waste processing needs (as it relates specifically to each business) the benefits and economics start to shift exponentially towards greater efficiency. In the end, the obvious objective is to shift as much of the waste stream as is feasible from trash (that incurs charges for being hauled to the landfill) to recyclables (that are earning money for the organization). 

If there is existing waste processing equipment already in place (prior to an understanding of Waste Monetization^SM  basics) there are some routine checks and balances that can help determine whether the equipment is being properly utilized and leveraged against the waste profile and waste volume at a particular facility.  And, it must be recognized that equipment generally requires people to operate it, people to maintain it, and people to service it, so improperly placed waste processing equipment is not just about the equipment cost itself, but also about the people, time and money spent interacting with the equipment as well. 

Every business (including those within the same niche) will have its own unique path for effectively pursuing Waste Monetization^SM , but the foundation and fundamentals are the same from business to business and industry to industry. The corporate culture, organizational priorities and missions established at the top level will dictate when and how Waste Monetization^SM takes place, but inevitably it will be recognized as both a necessity and a huge area of opportunity for each and every business.  It is not prudent to implement Waste Monetization^SM  in a way that causes huge disruptions and counter-productivity to existing business operations, but rather it can be transitioned incrementally when there is a basic understanding of objectives, mixed with some know-how and a plan. In most cases, the approach that WasteCare Corporation advocates is a Do-It-Yourself approach that allows participants to understand the ingredients and recipe that is necessary for producing the proper results. When decisions are rooted with an understanding and a common mission they come easy and they are usually correct, without a need for an ongoing consensus before each move is made.    

Although waste processing is a variable expense that is often treated and structured by vendors as a fixed expense, there are steps that can be taken to maintain and manage it as a variable expense that can also be converted to a source of 'other income'. 

Whether a business is spending 10,000 per year on waste processing or $100,000 per year on waste processing the same basic principles and financial ratios apply to all businesses. For example, in the case of a business that is spending $100,000 annually, and assuming a common 'triple net' margin of 2% of revenues, this means that an organization such as this that monetizes just $10,000 per year from their waste processing (which is easy to do) would have to perpetually generate an extra $500,000 in total revenues each year in order to get that $10,000 back to the bottom line. Each such organization should ask what resources, time expenditures and costs are required to produce that extra $500,000 in revenues? And of course it is all relative in that the company spending $10,000 per year in waste processing (and monetizing $1,000) would have to generate an extra $50,000 in revenues to return that $1,000 to the bottom line. Wouldn't it be much easier just to grab the 'low hanging fruit' that is available through some simple Waste Monetization^SM ? The steps are easy, the path is straight-forward and Waste Monetization^SM  is real.

By Matt Kennedy - Contributor / Author

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