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Recycling Company Business Plan

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recycling company business plan

The recycling company business plan is almost always written with two purposes in mind. First, it is a guide for business planning and keeping strategic focus over at least the next five years. Second, it is written to attract investors because lack of capital is a major barrier to small business success. The business owners must also deal with the strict federal guidelines for product collection and disposal. The Environmental Protection Agency encourages new recycling businesses because they benefit the environment and the economy. However, the agency is deeply concerned with issues like landfill management and disposal of hazardous chemicals, and recycling businesses deal with both.

Recycling businesses can take many forms. It can be a business that collects rubber, processes it and then resells crumb rubber to tire manufacturers. It may be a business that recycles fabric into apparel sold to consumers interested in protecting the environment. These are just two examples of the breadth of possible recycling companies. The Executive Summary, Company Description and Company Mission in the recycling company business plan need to make it clear to investors how consumers and the environment will benefit from the recycling business. Just being in the recycling business is not enough to attract funding. What the company is offering has to be affordable and provide unique value to its market.

Following are some other items that should be considered in the recycling company business plan:

  • How the business will grow through product line expansion or new sources of products

  • Management’s experience in the recycling industry

  • How technology will be used to recycle products, i.e. state-of-the-art equipment, newly developed recycling process, new uses for recycled products, etc.

  • What makes this recycling business different from its competitors, supported by industry market research and explanation of business strengths and uniqueness

  • What is the targeted market segment

  • The environmental and non-environmental benefits customers are offered

  • The land, facilities and equipment needed to adhere to the operating plan

  • How EPA regulations will be met and who is responsible for compliance

  • How will commodity price fluctuations be managed

  • Contingency planning

The recycling company business plan can seek debt or equity financing, or private funding. Most recycling companies have large capital budgets which directly influence the amount of funding needed from investors. The business plan should outline the financing needs from at least business startup to profitability because beyond that point the full recovery of the investment is more likely. However, it is important for the recycling company business plan to address the fact the business is subject to many risks, like falling prices, natural disasters, technological obsolescence, and changes in the laws or government regulations.

It is critical that the recycling company business plan be thorough and address the unique characteristics of the industry. OGS Capital works closely with companies to develop business plans that attract investors by succinctly presenting the reasons the company is a good investment for the economy, the environment and the funders themselves.

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