Libuse Binder, LiveScience.com Yahoo News 2 Jul 08;
Editor's Note: Canadian Tom Szaky is obsessed with worms. He quit Princeton University to "to shovel poop," as he puts it. Like any good entrepreneur, he and his partners maxed out their credit cards to launch their company, TerraCycle, turning down $1 million from a venture capitalist who did not share their vision. He says of his company: "'Our contents are garbage." Learn how your waste has become his big business...
Who says dropping out of Princeton is a foolhardy move? Not Tom Szaky, who in 2001, along with co-founder Jon Beyer, had a vision for a new kind of product created completely from waste. In fact, their moment of inspiration came while visiting friends who were successfully using vermacompost (worm poop) to grow thriving plants.
Szaky and Beyer founded TerraCycle in 2002, and the company has grown exponentially since its humble beginnings in a Princeton dorm room. Szaky recently discussed TerraCycle's successful eco-capitalistic business model, which is based on the idea that there really is no such thing as garbage.
How Does It Work?
TerraCycle partners with corporations and accepts their "waste" By signing up on the TerraCycle site, you can receive an envelope to mail in "waste" like cookie wrappers and wine corks TerraCycle pays for each "waste" product (two cents per energy bar wrapper, for example) as well as for shipping costs, and each collection location raises money for a cause or charity The wrappers, plastic containers, plastic bags and corks are used as packaging or raw material for such products as plant food, reusable shopping bags and window cleaner
No Longer Garbage
TerraCycle is working to redefine the idea of garbage. According to Szaky, "Garbage is a commodity people are willing to pay to get rid of." Right now, the company takes 100 percent of Target's used plastic bags and turns them into reusable bags, and TerraCycle has collected 4.5 billion Capri Sun drink pouches. Packaging that was once destined for the landfill has been reborn as backpacks, totes and pencil cases.
Industry Innovator
As awareness about limited space in landfills and pollution grows, companies want to find creative solutions to eliminate waste. Szaky says, "Everyone is interested in eco-friendly solutions, and this is why all of these sponsors want to work with us."
Best Part of The Job
It is no surprise that an innovator like Szaky is most excited by the creation of new innovative products. Once he comes up with an idea, he can see it to fruition in as little as six months.
What's Next?
TerraCycle is growing fast and has plans to expand into the international market in the near future. Its sales are doubling every year as the company expands its product offerings into different categories and continue to take in high profile waste items. There will soon be holiday products, more bags, more office products, a more extensive line of cleaners and laundry detergent.
Favorite of the Three R's
Szaky's favorite "R" is reuse because, "it uses the least amount of energy, is best for environment and it makes something new." He operates with the firm belief that there really isn't garbage. "Garbage is a product that we haven't come up with a solution for yet. It doesn't exist in nature. If you look at any commodity creatively enough, you can eliminate the idea of garbage."
