SCRAP METAL RECYCLING BUSINESS PLAN SAMPLE
Are you interested in starting up a scrap metal recycling business in your locality?
This article will serve as a template for writing a good business plan for your recycling business.
I believe you must have acquainted yourself with the requirements you need before starting up a scrap metal recycling company. There are several things you have to put in place before you can plan any salvage business.
The most important of which are: ensuring you have the right machines and equipment, and knowing how to handle them; ensuring you have adequate knowledge of where to source for used and condemned ferrous and nonferrous metals; as well as knowing where to sell your products after recycling.
Here is a sample business plan for starting a scrap metal recycling plant.
BUSINESS NAME: Total Finishing Metal Recycling Company.
- Executive Summary
- Vision Statement
- Mission Statement
- Business Structure
- Products and Services
- Market Analysis
- Sales and Marketing Strategy
- Financial Plan
- Sales Forecast
Total Finishing Metal Recycling Company is a fully registered and licensed scrap metal recycling business.
Total Finishing Metal Recycling Company will be located in an industrial area in Oklahoma, United States. We will be solely fixated in recycling used and condemned ferrous and nonferrous metals and supplying to clients who need our services within Oklahoma and the United States.
Total Finishing Metal Recycling Company will be owned by Jerry Smith, an engineer who has loads of experience working in the industry for more than 20 years; and his long time friend and business partner, Michael Scoffs. We are focused on establishing this scrap metal recycling business to be among the leading scrap metal recycling companies in the United States.
The startup investment sum needed is $500,000. $100,000 each will be contributed by the owners to make up $200,000 of the total startup investment capital. $100,000 will be borrowed from close friends and extended families, while the remaining $200,000 will be obtained as loan from our banks.
Our vision at Total Finishing Metal Recycling Company is crystal clear: we want to be recognized as the standard and top quality scrap metal recycling company whose scrap metal recycle plant will produce top quality products that will be acceptable anywhere in the United States and even all around the globe. We will do well to achieve this vision by doing all well within our capability and permissible under the laws of the state and the United States.
Total Finishing Metal Recycling Company is a company that will readily compete with the top Metal Recycling Companies out there in Oklahoma, and even the leading ones in the whole of United States.
Our mission is to become renowned as a scrap metal recycling business that is focused on providing clean and standard recycled ferrous and nonferrous metals to the relevant industries that need our services, to help them minimize cost and energy.
Also, we want to be able contribute our own share in making sure our world is clean and protected from degradation and deterioration resulting from metallic material wastes that are buried beneath the earth.
Total Finishing Metal Recycling Company is a company we hope to start small in Oklahoma. Overtime, we will build it into a very formidable company capable of competing with the best in the United States.
We well know the importance of establishing a very strong business structure that can guarantee us our business vision of becoming among the very best in the United States. For this reason, we will make sure we do everything within our means to hire only the right employees.
We will establish an interview based platform to select only candidates that are hardworking, competent, driven, and have some sort of experience in the industry. We will turn a blind eye to prejudice and subjectivity, and be objective in selecting our employees. In no particular order, the following are some of the positions to be filled:
- Head, Technical Services.
- Sales and Marketing Executive.
- Client Service Executive.
- Plant Engineers / Technicians and Operators.
- Human Resources and Administrative Manager.
- Truck Drivers.
PRODUCTS AND SERVICES
We are in the scrap metal recycling industry to totally maximize profits as best as permissible under the United States laws. We do not just want to offer any kinds of products and services around the country, but we want to make sure we deliver the very best of products and services to our customers all around the confines of the United States, whenever and wherever.
This is why we will offer the following products and services within the United States:
- Recycling of steel and iron scrap.
- Recycling of aluminium scrap.
- Recycling of copper scrap.
- Recycling of lead scrap.
- Recycling of other ferrous and nonferrous scrap metals.
A keen observer would realize that there are so many market trends in the industry. The most notable of which; is the fact that players, Government and even NGOs campaign in favour of recycling of metal scraps to be used as raw materials instead of fetching virgin raw materials. This is because of the fact that cost and energy will in the long run be saved.
Another notable trend in the industry is that players locate their recycling plants in areas that are very close to their clients to minimize transportation costs.
Our target market includes, but not limited to, the following:
- Metal production industries.
- Roofing and construction companies.
- Manufacturers and distributors.
- Automobile manufacturing companies.
- Ship manufacturing companies.
SALES AND MARKETING STRATEGY
We will do everything possible to ensure we employ the right sales and marketing strategy to our business to guarantee us our spot among the leading scrap metal recycling companies in the United States.
We will start off by introducing our scrap metal recycling business. This, we will do by sending introductory letters together with our business brochure to various manufacturing and/or production companies.
We will list our business in yellow pages ads, as well as advertising in relevant business magazines, newspapers, radio and TV stations.
We will also use the internet and social media platforms to advertise our business. Most important, we will create a functional website for our business.
The total startup investment sum that will be required for is an estimated amount of $500,000.
Sources of Funds
Part of the startup investment sum will be contributed by the owners, Engr. Jerry Smith and Michael Scoffs. The other parts will be obtained as loans from our friends and extended families, and from our banks. $200,000 will be contributed by the owners from their investments, savings and sale of stocks; $100,000 will be sourced from friends and family; while the final $200,000 will be obtained as loan from our banks.
The following is a sales projection for Total Finishing Metal Recycling Company for the next three years.
Year One $250,000
Year Two $600,000
Year Three $1,000,000
This sales projection is based on a number of factors such as the location of our scrap metal recycling business, as well as other obtainable statistics in the industry.
However, this projection does not consider the presence of a key competitor within the same location; neither does it consider the occurrence of any major economic meltdown.
The business plan sample above is a detailed scrap metal recycling business plan sample. This business plan sample presents all the vital areas of the business that attention is needed. It presents the executive summary of the company, the vision and mission of the company, the products and services to their clients; and the sales and marketing strategy to achieve the set vision.
It is only hoped that this business plan sample will serve as a helpful template towards guiding you write a good business plan for your scrap metal recycling business.