RECYCLING PLANT BUSINESS PLAN SAMPLE
Recycling is a process of converting used waste materials into a usable or reusable state. This process is a better alternative to the orthodox form of waste disposal as it increases air and water pollution and waste of new materials.
There are various forms of recycling, which include paper recycling, recycling of building supplies, collection of junk, metal collection, plastic or cardboard collection, scrap pallet and used clothing collection.
Recycling basically is of two forms;
- Recycling primarily is providing a new supply of the same product which is usually more expensive then manufacturing new products from raw materials. Therefore, recycling involves converting waste materials into other materials (Reiterating).
- Restoring of certain materials from complex products as a result of inherent value or due to their imperilment nature is also another form of waste recycling.
Here is a sample business plan for starting a recycling plant.
Conduct a Research on the Type of Recycle Business
After carefully deciding your preferred area of waste recycling, the next step is to research to ensure it is a profitable business. Also, perform a research on other local waste collectors to identify competitors and devise means to beat them.
Find out the prices placed on waste collected and recycled in your area. Analyze and differentiate the prices placed on new business from the ones of more successful companies, as the prizes placed by fresh businesses might not be enough to guarantee long-term success in the business.
In some areas, items may be restricted or may have ban placed on them. Inquire about such items and get a transportation certificate when necessary.
Gathering such restricted materials may endanger your business as you may have no means of disposal. Waste collection is usually more favorable during the summer and runs slower during the winter and fall.
Financing the Recycling Business
Starting up a recycling business might not require large financing but, a trunk would be needed. You should also include trunk maintenance in financial planning and other maintenance expenses such as waste bags and items depending on your preferred form of waste management.
Draft a Recycling Business Plan
A business plan is a blueprint for future success. Starting up a recycling business would definitely require planning, a business plan is not only necessary when the owner needs financing other than what she can provide.
A recycling business plan isn’t just a post business startup requirement, but it should also be followed up regularly to secure success.
This plan should contain all your shortcomings, opportunities and end goals as well as other planning related factors.
When starting up a recycling business, your sales forecast should contain information such as;
- Estimate the number of households that are readily available to pay for waste disposal in your locale and your gross sales per month.
- Expenses should be included as you may employ the use of workers and materials such as bins, trucks and machines for recycling.
- Ensure your business doesn’t have an income problem, more shouldn’t be given out than received.
- Fortuity planning
A recycling business might have a few shortcomings. When drawing out a business plan, you should also consider disasters so when they happen your business would scale through.
Your fortuity plan should involve methods of overcoming disasters such as data loss, theft, Illness and other hindrances.
Register your Business
Your business structure would have a major influence on your business, it is very important you decide carefully on a suitable business structure. You may decide to run a sole proprietorship, a partnership, a Limited Liability Company (LLC) or a corporation.
After the decision is made, set out to choose a business name and register your business. Run a search on your business name to be certain that it is unique and not a copy of any other company.
If you’ve decided on sole proprietorship, your business name would be registered with your state clerk. Whereas Limited Liability Companies, Corporations and partners would be required to fill out paperwork.
License and permits are also very important to avoid problems with the law.
You should also seek for a good business location, one that would be sufficient for waste recycling and management.
Market your Services
Planning out a proper market strategy would attract clients to your recycling business, It involves concise actions to carry out to maximize profit.
In starting up a recycling business, you should consider methods to collect the waste to be disposed.
- The fastest and most used method of waste collection is the curbside collection. Waste disposal vehicles move along street corners collecting waste which is then cleaned up and sorted out.
- Buy-back centers. At these centers, recyclables are cleaned and sold out to recycling companies.
- Waste bins should also be placed at road sides for easier access to waste. A two sided or three sided waste bin is advised, to separate recyclable waste from non-recyclable waste.
Recyclables collected are sorted out and recycled to various new materials.
If you plan to start a recycling business, you are already informed of the steps required by you and how to go about it.
RECYCLING PLANT BUSINESS PLAN EXAMPLE
With increasing interests in recycling plant business being showed by investors and entrepreneurs, this sector is witnessing steady growth that is set to increase in the coming years.
With its rising popularity however, some entrepreneurs interested in investing in this businessare faced by challenges, especially as it has to do with writing a good business plan for their recycling plant businesses.
We commence with the following table of contents;
- Executive Summary
- Products and Services
- Our Vision
- Our Mission
- Market Analysis/Trends
- Target Market
- Competitive Advantage
- Sales and Marketing Strategy
- Sales Projection
- Payment Channels
- Publicity and Advertising Strategy
We are a licensed recycling plant operating out of Ohio providing a broad range of recycling services that includes bottles, cardboards, aluminium cans and a host of other scraps harmful to the environment. While helping to keep the environment safe, we will be making this our business through becoming a one-stop shop for the supply of raw materials for various companies.
With a workforce that will be selected from a pool of the very best, with well experienced and certified technicians whose knowledge and experience will be harnessed to ensure that we compete favourably among the top tier recycling plants in America.
Products and Services
The products and services to be offered by us will include the sale of recycled materials that include papers, cardboards, cans, tyres, plastic bags and metals among several others. With the superior services to be offered by us, we will select a group of recycling ambassadors which in include people with passion for the environment. These ambassadors will be equipped to give talks in forums and shows related to the safety of the environment.
Their jobs will be to sensitize people on the advantages of buying recycled products and also helping in ensuring that they separate their wastes into different categories to help in faster sorting of materials for recycling.
Our vision is to be among the foremost recycling companies within the United States within the first 5 years of commencing operations. The drive will see us engaging all available legal means to ensure that we achieve this lofty aim.
Our mission at Recycle-It LLC will be to ensure that while providing a vital service, which is the protection of the environment, we also derive healthy profits from our activities to sustain our future expansion plans.
Instead of what was commonplace especially among the manufacturers of goods, where virgin raw materials were always sourced for any production, there has gradually been a shift in the preference for recycled materials for production. This is fueled by the advancement in technology where almost every material can be broken down to useful component parts or renewed for further use.
Governments across the world, seeing the advantages presented by recycling, in saving the environment, have endorsed and promoted this initiative. Today, the recycling business is considered so vital to the stability of the ecosystem.
With the provision of only the best products and services, the market for this products and services is very important. This is why Recycle-It LLC has its target market where its goods and services will be consumed or used.
Our target markets include; both manufacturers of goods and distributors, construction companies, food and drinks processing and packaging firms among a long list of our target market.
The competitive advantage we have over our competitors providing similar services is that we ensure that our workforce are highly appreciated and motivated. A way of motivating the workforce includes ensuring that they have attractive remuneration packages, with bonuses for any exceptional act.
Also, we ensure that we hire only the very best. As such our pool of workforce is going to be drawn from a group of highly skilled and knowledgeable experts.
Sales and Marketing Strategy
Our marketing department will be properly positioned for high performance. This department will be run by highly qualified marketing experts that will ensure that our services reach our target population. Also, our marketing department will be better positioned to spread awareness on the critical services we render.
Using the current market growth indices, we have come up with a projection that sees our company enjoying robust growth within our first three years of operations. This growth will be driven both by the highly skilled staff in our employ, and also by the economic indicators within the recycling industry.
However, factors such as natural disasters and economic downturn have been discounted in reaching this conclusion. The table below shows a simple sketch of this;
- First Year $340,000
- Second Year $550,500
- Third Year $800,000
We have ensured that we have a wide variety of payment platforms to cater for all our unique customer needs. Among the list of accepted payment methods are the use of the POS machine, acceptance of cash payments, acceptance of credit cards, mobile banking, cheques among other channels of payments.
Publicity and Advertising Strategy
The publicity and advertising strategies to be deployed will be broad based, consisting of the different advertising media. As such, we will be making use of the local radio and TV stations in spreading word about our services. Fliers and banners will be included in our list of advert strategies to be employed.
However, we will not forget the old and efficient method which is the word of mouth marketing. Although an age-long method, this is still efficient today in spreading word about particular services.
This recycling plant business plan sample contains all the necessary points needed in writing an engaging and interesting business plan. Entrepreneurs can follow the format laid out here and supply information specific to their recycling plant businesses.