Recycling company business plan for starting your own business?
If you are considering starting up your own recycling company, you should know that the business opportunities available are as wide-ranging and varied as the tons of stuff that we dispose of every day. Starting a recycling company business does not require you to hold technical knowledge, you can start it with a small team and less funding. You can start it at any scale and can expand or narrow down your offerings whenever you want.
To start any business, it is important to follow the proper procedure of starting a business. First, you will have to develop a business plan. To learn how to write a recycling proposal, you can take help from this provided sample. This is a business plan for recycling company named ‘Greenworks Recycling Center’. This business plan would also be helpful in writing scrap metal business plan.
2.1 The Business
Greenworks Recycling Center will be a recycling company owned by Ardon John in New York. The primary aim of the business will be to recycle and reuse plastic waste materials. Our recycling company will focus to recycle plastic wastes like plastic containers, bottles, polythene, polybag, plastic boxes, packets, sheets, and their likes into useful products. The business will offer a wide range of services and products for the ease of its customers.
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2.2 Management of recycling company
If you are just learning to start a plastic recycling business, then you must have strong management. Adequate planning is necessary for the establishment of strong management. And there is no better way to plan out every aspect of your company than through a recycling company business plan pdf like the one offered here.
The relevant business plan like business plan for e waste recycling company can also help you write your business plan.
In this recycling business proposal, we will guide you about all the major aspects of a strong business plan. Also, this business plan is written for investors to help Ardon in setting up his recycling business.
2.3 Customers of recycling company
Our customers are at both ends of the supply chain that will benefit from our products and services. Our customers will belong to almost all work domains as plastic recycling is required by all nowadays. However, our potential and recurring customers are identified as follows:
- Commercial Businesses
- Residential Community
- Industrial and manufacturing
2.4 Business Target
Our target is to become the most trustworthy and reliable choice for our target customers whenever they need recycled and reused plastic materials.
Our financial targets to meet for the first three years of our launch are demonstrated below:
3.1 Greenworks Recycling Center Owner
This Greenworks Recycling Center will be owned by Mr. Ardon John. Ardon Jack completed his master’s in environmental sciences a few years back. After his academic career, he pursued a manager position in a noteworthy recycling company. Recently, he left his job to start his own business of recycling plastic materials to create environmentally friendly products. This will be the plastic recycling company.
3.2 Why the recycling company is being started
Ardon noticed that as the environmental movement began to take hold on a national scale, recycling started to be viewed as a personal manifestation of helping the environment. So, he decided to bring innovation in existing modes through his intellect and environmental knowledge. Therefore, he decided to start his own recycling business to fully implement the great ideas he possessed.
3.3 How the recycling company will be started
Step1: Plan Out Everything
To learn how to start your own recycling company, first, you will have to make a business plan. To help you in creating a business plan we are providing a recycling company business plan . For opening a recycling business, you can take help from this business sample or go through other business plans like greentech consulting business plans to get an idea of what to include when planning for a start-up.
The next step is to get your company’s values and services to be recognized by customers. For this purpose, Greenworks Recycling Center will aim to make a brand that people can trust. By defining the brand, you will introduce a good image of your business to your customers and help you create a space for yourself in the market
Step3: Physical Space
The next step is the physical presence of the business and for this purpose, Ardon decided to buy a large land in the outskirts of New York to set up his recycling company. This land will have shades, a closed space, large rooms, and a technical room. There will be a clean and closed space to keep the machines as well.
Step4: Online Presence
At present, a wider audience will be attracted through online channels so establishing an online presence is a must. Ardon decided to make a mobile-friendly app, website, and social media page for his business to reach out to a wider audience.
Marketing is the most important thing for the promotion of the business. Ardon will develop a thorough plan for the advertisement of his business.
|Research and Development||$10,000|
|TOTAL START-UP EXPENSES||$254,400|
|Other Current Assets||$233,000|
|Start-up Expenses to Fund||$254,400|
|Start-up Assets to Fund||$935,400|
|TOTAL FUNDING REQUIRED||$1,189,800|
|Non-cash Assets from Start-up||$1,196,800|
|Cash Requirements from Start-up||$234,000|
|Additional Cash Raised||$50,000|
|Cash Balance on Starting Date||$33,200|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$53,200|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$1,189,800|
|Loss at Start-up (Start-up Expenses)||$252,800|
|TOTAL CAPITAL AND LIABILITIES||$1,514,000|
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Services of recycling company
Your business plan of recycling company must include the services that you will provide to your targeted customers. You may have many plastic recycling business opportunities, but you have to choose the ones in the most demand by the customers.
For starting a recycling company, you can follow this guide on how to open recycling business to figure out what the market for the business looks like and what services are ideal to be included in your start-up. This business plan sample can also aid in writing other business plans such as business plan for a distilled business.
Following are the services that will be provided by our Greenworks Recycling Center Company:
- Plastic material retrieval
This will be the main service offered by us. We will retrieve plastic material from solid waste and process it for recycling or reuse. As plastic is of distinctive types, they also have joint material attached to them. Our company will segregate plastic consisting of different polymers, strengths, and qualities.
- Waste Services
To ensure that our customers send the right materials to be recycled, we will spread information about the materials that can be recycled and the ones that cannot be. This information will be distributed every time we enter into a partnership with a company or an organization.
- Dumpster and container rental services
Our customers will be able to take advantage of our low-cost dumpsters and containers that they can rent out for a short period.
- Plastic materials sale
The plastic materials we purchase and retrieve will be sold to local buyers and the ones from other states. We will try to make permanent recycled plastic material buyers make a steady stream of income for the business.
Marketing analysis of recycling company
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To learn how to start up a recycling business, you should have an excellent understanding of your target market. You can gain this understanding by doing an extensive market analysis as a part of yourmarketing plan for recycling business. This analysis should look into current market trends as well as compare them with the past trends. The same marketing plan can be used for business plan for an e waste recycling company.
Your recycling business model should also analyze the price of similar services in the market. If you don’t know how to open a recycling business company then you can take the help of this business plan.
This business plan can also be used to make other business plans like electronic recycling business plan and waste paper recycling business plan.
5.1 Market Trends
According to IBIS World, the recycling industry holds a market size of $77 Billion in the United States, employing almost 70,961 people. The industry is continuously in demand as more and more people adopt recycling in their life. So, opening a plastic scrap recycling business in this industry is a very smart move as the demand will only get bigger.
5.2 Marketing Segmentation
The potential customers of Greenworks Recycling Center are divided into the following groups:
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5.2.1 Commercial Businesses
Our commercial customers will range from smaller retail businesses to urban skyscrapers with high-volume waste streams. We will provide permanent, temporary, and as-needed-basis trash removal and recycling services.
5.2.2 Residential Community
Residential customers have a variety of materials to be recycled. Some residences generate enough trash making it economically feasible for the resident to utilize a larger commercial-sized trash container for weekly trash service. So we expect quite a bit of business from these customers.
5.2.3 Industrial and manufacturing
Industrial customers frequently require roll-off dumpsters, compactors, trash containers, and waste plastic recycling equipment. Industrial customers are expected to use our company for scrap metal hauling and redemption, cardboard and waste paper recycling, construction and demolition debris, and trash disposal.
Our company will also provide trash and recycling services to government buildings and organizations. We expect to engage in business with these customers regularly.
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
|Industrial & Manufacturing||22%||23,200||27,840||33,408||40,090||48,108||10.00%|
5.3 Business Target
- To provide a green way of disposing of trash to our customers
- To earn a net profit margin of $70k per month by the end of the third year
- To achieve and maintain a CSAT score above 92%%
5.4 Product Pricing
Our prices will be economical as compared to our competitors and we will provide them with the best services of recycling at a nominal rate.
To start a recycling company, you must develop the best business plan. A strong marketing strategy is needed to attract a wider audience. To gain attention in the market among your competitors, you need to highlight your competitive advantages. This is crucial in developing a business-like plastic recycling.
This is a business plan for Greenworks Recycling Center business. You can use this business plan to write other business plans like shoe business plan. You can learn a lot from here if you make a skateboard store business plan.
6.1 Competitive Analysis
- Our custom programs ensure you have the right containers, schedules, and operations.
- We’ll implement green cleaning practices by using eco-friendly and non-toxic recycling operations
- Through our website and user-friendly mobile app, our customers would be able to book our services remotely.
6.2 Sales Strategy
- We’ll use online channels like Google Local ads service and social media to attract a wider audience
- We’ll provide free waste pick-up services for one month to our first ten customers offer a
- We’ll offer a 30% discount on specialized recycling services for the first month of our launch.
6.3 Sales Monthly
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6.4 Sales Yearly
6.5 Sales Forecast
|Unit Sales||Year 1||Year 2||Year 3|
|Dupmster & Container Rental||1,250||1,325||1,405|
|Plastic Materials Sale||550||583||618|
|TOTAL UNIT SALES||3,500||3,710||3,933|
|Unit Prices||Year 1||Year 2||Year 3|
|Dupmster & Container Rental||$250.00||$290.00||$336.40|
|Plastic Materials Sale||$300.00||$348.00||$403.68|
|Dupmster & Container Rental||$312,500.00||$384,250.00||$472,473.80|
|Plastic Materials Sale||$165,000.00||$202,884.00||$249,466.17|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Dupmster & Container Rental||$100.00||$110.00||$115.50|
|Plastic Materials Sale||$120.00||$132.00||$138.60|
|Direct Cost of Sales|
|Dupmster & Container Rental||$125,000.00||$145,750.00||$162,219.75|
|Plastic Materials Sale||$66,000.00||$76,956.00||$85,652.03|
|Subtotal Direct Cost of Sales||$503,500.00||$587,081.00||$653,421.15|
The success of an eco-conscious business such as a recycling business depends not only on its services but also on the values and behavior of its workforce. So, you have to be very careful when deciding the roles of different employees in your company. You also need to be very diligent in background checks when hiring for these positions.
This business plan for plastic recycling company has all the detail regarding the employment practices of a recycling service business. The same plan can be used for starting a paper recycling plant.
7.1 Company Staff
The list of employees necessary for the business to function include:
- 1 CEO/ Manager
- 6 Recycling Plant Personnel
- 1 Executive Operations
- 1 Technician to upkeep the recycling machinery
- 1 Accountant
- 6 Drivers
7.2 Average Salary of Employees
|Year 1||Year 2||Year 3|
|Recycling Plant Personnel||$180,000||$198,000||$217,800|
A successful business yields profit. It is essential to manage your operations timely and efficiently to earn recycling business profit. A detailed financial analysis is necessary to ensure that your business is not getting into a loss. The recycling companies business plan must contain all the financial information to start a business.
The startup costs are important for your financial plan. In your financial plan, you must identify when and how you’ll cover your investment amount with the earned profits. Moreover, it would help to analyze your yearly expenses to determine the possibilities of reducing them. The financial plan of this sample can also be used to write jewelry business plan.
Here we’re providing the detailed financial plan made for Greenworks Recycling center.
8.1 Important Assumptions
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.12%||8.20%||8.26%|
|Long-term Interest Rate||8.40%||8.44%||8.47%|
8.2 Break-even Analysis
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|Monthly Units Break-even||5340|
|Monthly Revenue Break-even||$132,500|
|Average Per-Unit Revenue||$231.00|
|Average Per-Unit Variable Cost||$0.62|
|Estimated Monthly Fixed Cost||$163,800|
8.3 Projected Profit and Loss
|Pro Forma Profit And Loss|
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||$503,500||$587,081||$653,421|
|TOTAL COST OF SALES||$503,500||$587,081||$653,421|
|Gross Margin %||63.45%||65.34%||68.63%|
|Sales and Marketing and Other Expenses||$145,000||$148,000||$156,000|
|Total Operating Expenses||$640,200||$690,550||$751,710|
|Profit Before Interest and Taxes||$233,800||$416,143||$677,533|
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
|Pro Forma Cash Flow|
|Cash Received||Year 1||Year 2||Year 3|
|Cash from Operations|
|Cash from Receivables||$22,000||$23,760||$25,661|
|SUBTOTAL CASH FROM OPERATIONS||$73,000||$79,570||$85,936|
|Additional Cash Received|
|Sales Tax, VAT, HST/GST Received||$0||$0||$0|
|New Current Borrowing||$0||$0||$0|
|New Other Liabilities (interest-free)||$0||$0||$0|
|New Long-term Liabilities||$0||$0||$0|
|Sales of Other Current Assets||$0||$0||$0|
|Sales of Long-term Assets||$0||$0||$0|
|New Investment Received||$0||$0||$0|
|SUBTOTAL CASH RECEIVED||$74,000||$79,000||$85,000|
|Expenditures||Year 1||Year 2||Year 3|
|Expenditures from Operations|
|SUBTOTAL SPENT ON OPERATIONS||$69,000||$70,000||$76,000|
|Additional Cash Spent|
|Sales Tax, VAT, HST/GST Paid Out||$0||$0||$0|
|Principal Repayment of Current Borrowing||$0||$0||$0|
|Other Liabilities Principal Repayment||$0||$0||$0|
|Long-term Liabilities Principal Repayment||$0||$0||$0|
|Purchase Other Current Assets||$0||$0||$0|
|Purchase Long-term Assets||$0||$0||$0|
|SUBTOTAL CASH SPENT||$69,000||$74,520||$80,482|
|Net Cash Flow||$21,000||$23,000||$25,000|
8.5 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$282,000||$315,840||$355,004|
|TOTAL LONG-TERM ASSETS||$24,400||$27,328||$30,744|
|Liabilities and Capital||Year 4||Year 5||Year 6|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$19,000||$21,280||$23,919|
|TOTAL LIABILITIES AND CAPITAL||$300,000||$329,280||$370,440|
8.6 Business Ratios
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||2.11%||2.34%||2.59%||2.40%|
|Total Current Assets||149.80%||151.00%||152.00%||158.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||93.56%||96.09%||98.78%||97.80%|
|Profit Before Interest and Taxes||41.50%||42.62%||43.81%||33.90%|
|Total Debt to Total Assets||0.18%||0.18%||0.17%||0.40%|
|Pre-tax Return on Net Worth||74.08%||74.89%||75.00%||75.00%|
|Pre-tax Return on Assets||96.30%||101.12%||106.17%||111.30%|
|Additional Ratios||Year 1||Year 2||Year 3|
|Net Profit Margin||33.56%||34.60%||35.67%||N.A.|
|Return on Equity||55.80%||57.53%||59.31%||N.A.|
|Accounts Receivable Turnover||7.7||7.8||7.8||N.A.|
|Accounts Payable Turnover||15.6||16||16.3||N.A.|
|Total Asset Turnover||2.5||2.5||2.6||N.A.|
|Debt to Net Worth||-0.04||-0.03||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$244,000||$257,664||$272,093||N.A.|
|Assets to Sales||0.85||0.87||0.89||N.A.|
|Current Debt/Total Assets||1%||0%||0%||N.A.|
1. Is recycling business profitable?
To start recycle business is very profitable as it is an economic engine that provides over 500,000 jobs in the United States of America.
2. Which recycling business is most profitable?
The wastepaper recycling business is the most profitable. A paper recycling business proposal is necessary for starting a business in this domain. You can also consider the start up plastic recycling business as it is a strong contender for the most profitable recycling business.
3. How do I start a recycling business?
A recycle company business plan is needed to start a recycling business. Along with this a strong planning and marketing strategy is also needed.
4. Why recycling is not profitable?
A business plan recycling company is not profitable as efforts to reduce costs in products and packaging are reducing value objectively.
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