Monday, 22 June 2009

Beecycle: recycling for profit and pleasure

If at first you don't succeed with an entrepreneurial idea, try again, advises Kenneth Cheung, founder of the recycling business Beecycle.

By Widget Finn Published: 1:20AM BST 22 Jun 2009

Mr Cheung now has 12 local Lancashire schools as customers
He spent six months researching how to develop a spray to compost waste, then discovered that the microbes he planned to use were forbidden by UK legislation.
"All the time and energy spent on research was wasted, which was a big bill for a small business. I was faced with the dilemma of whether to give up and get a job – and probably never have another opportunity to start my own business – or find a different product. I chose to try again," he said.

Mr Cheung, 24, graduated from York University in 2006 with a degree in biochemistry, and spent a "gap year" planning to establish a business. "I went on a course which encouraged people to set up environmental companies. My idea was around composting – people would pay me to collect food waste which could be converted into a saleable product, compost, and I could use my biochemistry knowledge to develop organisms to produce a faster, odourless process."
In 2007 he won a business plan competition run by Lancaster University Environment Centre. The prize was £1,500 and a free incubation office at the centre for a year. "Moving to Lancaster was pivotal to the development of the business. Being based in the university meant that I got a lot of free business support from Lancaster University Management School and the IT department, and EU funding provided technical design from the engineering department."
"I found there was a market for educating the public about composting, especially as legislation will soon be introduced for household food waste recycling. I decided to develop composting products targeted at households and schools." The result was OvO, a self-composting and self-watering plantation system. Food waste is composted by worms, then seeds are planted in the compost, eventually producing more food.
"It's an ideal educational tool for schools, because kids can see the whole cycle of food and waste. Environmental education is becoming important in schools, but they don't have a good understanding of the subject. I wrote lesson plans for OvO which made it an attractive educational tool – all the preparation was already done for teachers, and it ticked all the boxes for Key stage 2."
Mr Cheung started cold-calling primary schools in Lancaster, and now has 12 local schools as customers. His next target is households, and he plans to sell the system through garden centres and supermarkets which market ethical products. He also sees consultancy as an expanding area of the business. Beecycle has built two large wormeries at Lancaster University, run by student volunteers, which composts the cafeteria food waste into a fertiliser used on an organic garden which grows vegetables for the cafeteria.
The business has already won Mr Cheung several awards, and as a finalist in the 2009 Make Your Mark awards he is now an ambassador for the event, a role he takes seriously. "Business is not just about making money, but about enjoying the process and helping people around you along the way."
RECESSION BUSTERS
 If it's appropriate, use student volunteers – they gain experience and provide lively input into the business. Reduce start-up costs by seeking out grants, awards and incubation offices, or you may be in an area which is eligible for EU funding.
STARTING OUT
DO  Network, go to events, approach people – even if you don't think they're important at the time. You never know how they or their contacts could benefit your business in the future. Go in for competitions and awards – it's free publicity, and helps you streamline business plans and ideas. Even if you don't win you come back stronger and learn from your mistakes.
DON'T  Give up if your first idea doesn't work. Try out something else.
FACT FILE
Name Kenneth CheungCompany BeecycleFounded Oct 2007Staff Founder plus student volunteersStart-up funds £0Turnover £6,000
www.beecycle.co.uk