Table of Content

    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.

    Executive Summary

    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
    • Government

    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:

    Recycling Company Business Plan - 3 Years Profit Forecast

    Franchise Business Plan
    Helps the franchisee get business case approval from the franchisor

    Company Summary

    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.

    Step2: Branding

    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.

    Step5: Advertisement

    Note

    Marketing is the most important thing for the promotion of the business. Ardon will develop a thorough plan for the advertisement of his business.

    Recycling Company Business Plan - Startup Cost

    Start-up Expenses  
    Legal $132,400
    Consultants $0
    Insurance $22,200
    Rent $33,200
    Research and Development $10,000
    Expensed Equipment $53,200
    Signs $3,400
    TOTAL START-UP EXPENSES $254,400
    Start-up Assets $222,400
    Cash Required $209,000
    Start-up Inventory $39,000
    Other Current Assets $233,000
    Long-term Assets $232,000
    TOTAL ASSETS $935,400
    Total Requirements $1,189,800
    START-UP FUNDING
    Start-up Expenses to Fund $254,400
    Start-up Assets to Fund $935,400
    TOTAL FUNDING REQUIRED $1,189,800
    Assets
    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
    TOTAL ASSETS $1,514,000
    Liabilities and Capital
    Liabilities $18,200
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $53,200
    Other Current Liabilities (interest-free) $0
    TOTAL LIABILITIES $71,400
    Capital
    Planned Investment $1,189,800
    Investor 1 $0
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    TOTAL PLANNED INVESTMENT $1,189,800
    Loss at Start-up (Start-up Expenses) $252,800
    TOTAL CAPITAL $1,442,600
    TOTAL CAPITAL AND LIABILITIES $1,514,000
    Total Funding $1,189,800

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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:

    Recycling Company Business Plan - Marketing Segmentation

    Business Plan for Investors

    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.

    5.2.4 Government

    Our company will also provide trash and recycling services to government buildings and organizations. We expect to engage in business with these customers regularly.

    Market Analysis
    Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
    Commercial Businesses 36% 53,200 63,840 76,608 91,930 110,316 10.00%
    Residential Community 30% 43,200 51,840 62,208 74,650 89,580 10.00%
    Industrial & Manufacturing 22% 23,200 27,840 33,408 40,090 48,108 10.00%
    Government 12% 23,200 27,840 33,408 40,090 48,108 11.00%
    Total 100% 142,800 171,360 205,632 246,758 296,110 10%

    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.

    Marketing Strategy

    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

    Recycling Company Business Plan - Sales Monthly

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    6.4 Sales Yearly

    Recycling Company Business Plan - Sales Yearly

    6.5 Sales Forecast

    Recycling Company Business Plan - Unit Sales

    Sales Forecast      
    Unit Sales Year 1 Year 2 Year 3
    Plastic Retreival 750 795 843
    Waste Services 950 1,007 1,067
    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
    Plastic Retreival $250.00 $290.00 $336.40
    Waste Services $750.00 $870.00 $1,009.20
    Dupmster & Container Rental $250.00 $290.00 $336.40
    Plastic Materials Sale $300.00 $348.00 $403.68
    Sales
    Plastic Retreival $187,500.00 $230,550.00 $283,484.28
    Waste Services $712,500.00 $876,090.00 $1,077,240.26
    Dupmster & Container Rental $312,500.00 $384,250.00 $472,473.80
    Plastic Materials Sale $165,000.00 $202,884.00 $249,466.17
    TOTAL SALES $1,377,500.00 $1,693,774.00 $2,082,664.51
    Direct Unit Costs Year 1 Year 2 Year 3
    Plastic Retreival $100.00 $110.00 $115.50
    Waste Services $250.00 $275.00 $288.75
    Dupmster & Container Rental $100.00 $110.00 $115.50
    Plastic Materials Sale $120.00 $132.00 $138.60
    Direct Cost of Sales
    Plastic Retreival $75,000.00 $87,450.00 $97,331.85
    Waste Services $237,500.00 $276,925.00 $308,217.53
    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

    Personnel plan

    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

     Personnel Plan      
    Year 1 Year 2 Year 3
    Manager $30,000 $33,000 $36,300
    Recycling Plant Personnel $180,000 $198,000 $217,800
    Executive Operations $30,000 $33,000 $36,300
    Technician $22,500 $24,750 $27,225
    Accountant $23,500 $25,850 $28,435
    Drivers $175,000 $192,500 $211,750
    Total Salaries $461,000 $507,100 $557,810

    Financial Plan

    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

     General Assumptions      
    Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 8.12% 8.20% 8.26%
    Long-term Interest Rate 8.40% 8.44% 8.47%
    Tax Rate 24.03% 24.21% 24.60%
    Other 0 0 0

    8.2 Break-even Analysis

    Recycling Company Business Plan - Break-even Analysis

    Any questions? Get in Touch
     Break-Even Analysis  
    Monthly Units Break-even 5340
    Monthly Revenue Break-even $132,500
    Assumptions:
    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
    Sales $1,377,500 $1,693,774 $2,082,665
    Direct Cost of Sales $503,500 $587,081 $653,421
    Other $0 $0 $0
    TOTAL COST OF SALES $503,500 $587,081 $653,421
    Gross Margin $874,000 $1,106,693 $1,429,243
    Gross Margin % 63.45% 65.34% 68.63%
    Expenses
    Payroll $461,000 $507,100 $557,810
    Sales and Marketing and Other Expenses $145,000 $148,000 $156,000
    Depreciation $2,300 $2,350 $2,500
    Leased Equipment $0 $0 $0
    Utilities $2,900 $3,000 $3,100
    Insurance $2,100 $2,100 $2,100
    Rent $2,900 $3,000 $3,200
    Payroll Taxes $24,000 $25,000 $27,000
    Other $0 $0 $0
    Total Operating Expenses $640,200 $690,550 $751,710
    Profit Before Interest and Taxes $233,800 $416,143 $677,533
    EBITDA $233,800 $416,143 $677,533
    Interest Expense $0 $0 $0
    Taxes Incurred $46,760 $83,229 $135,507
    Net Profit $187,040 $332,914 $542,027
    Net Profit/Sales 13.58% 19.66% 26.03%

    8.3.1 Profit Monthly

    Recycling Company Business Plan - Profit Monthly

    8.3.2 Profit Yearly

    Recycling Company Business Plan - Profit Yearly

    8.3.3 Gross Margin Monthly

    Recycling Company Business Plan - Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    Recycling Company Business Plan - Gross Margin Yearly

    8.4 Projected Cash Flow

    Recycling Company Business Plan - Project Cash Flow

     Pro Forma Cash Flow      
    Cash Received Year 1 Year 2 Year 3
    Cash from Operations
    Cash Sales $51,000 $55,080 $59,486
    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
    Cash Spending $42,000 $42,000 $45,000
    Bill Payments $27,000 $28,000 $31,000
    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
    Dividends $0 $0 $0
    SUBTOTAL CASH SPENT $69,000 $74,520 $80,482
    Net Cash Flow $21,000 $23,000 $25,000
    Cash Balance $27,000 $30,000 $33,000

     

    8.5 Projected Balance Sheet

     Pro Forma Balance Sheet    
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $275,000 $308,000 $338,800
    Accounts Receivable $24,000 $26,880 $30,213
    Inventory $4,300 $4,816 $4,900
    Other Current Assets $1,000 $1,000 $1,000
    TOTAL CURRENT ASSETS $282,000 $315,840 $355,004
    Long-term Assets
    Long-term Assets $10,000 $10,000 $10,000
    Accumulated Depreciation $19,400 $21,728 $24,444
    TOTAL LONG-TERM ASSETS $24,400 $27,328 $30,744
    TOTAL ASSETS $294,000 $329,280 $370,440
    Liabilities and Capital Year 4 Year 5 Year 6
    Current Liabilities
    Accounts Payable $18,700 $20,944 $23,541
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    SUBTOTAL CURRENT LIABILITIES $19,000 $21,280 $23,919
    Long-term Liabilities $0 $0 $0
    TOTAL LIABILITIES $15,000 $16,800 $18,883
    Paid-in Capital $30,000 $30,000 $31,000
    Retained Earnings $53,000 $57,770 $63,547
    Earnings $193,400 $210,806 $231,887
    TOTAL CAPITAL $285,000 $310,650 $341,715
    TOTAL LIABILITIES AND CAPITAL $300,000 $329,280 $370,440
    Net Worth $293,400 $319,806 $351,787

     

    8.6 Business Ratios

     Ratio Analysis        
    Year 1 Year 2 Year 3 INDUSTRY PROFILE
    Sales Growth 7.25% 8.03% 8.90% 3.00%
    Percent of Total Assets
    Accounts Receivable 9.21% 10.20% 11.31% 9.80%
    Inventory 5.39% 5.97% 6.62% 9.90%
    Other Current Assets 2.11% 2.34% 2.59% 2.40%
    Total Current Assets 149.80% 151.00% 152.00% 158.00%
    Long-term Assets 11.55% 11.60% 11.64% 12.00%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.90% 4.94% 4.98% 4.34%
    Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
    Total Liabilities 7.59% 7.65% 7.72% 7.38%
    NET WORTH 100.45% 101.25% 102.19% 110.00%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 94.60% 97.15% 99.87% 99.00%
    Selling, General & Administrative Expenses 93.56% 96.09% 98.78% 97.80%
    Advertising Expenses 1.52% 1.56% 1.60% 1.40%
    Profit Before Interest and Taxes 41.50% 42.62% 43.81% 33.90%
    Main Ratios
    Current 34 35 36 32
    Quick 33 33.8 34.645 33
    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.
    Activity Ratios
    Accounts Receivable Turnover 7.7 7.8 7.8 N.A.
    Collection Days 100 100 100 N.A.
    Inventory Turnover 32.4 34.02 35 N.A.
    Accounts Payable Turnover 15.6 16 16.3 N.A.
    Payment Days 27 27 27 N.A.
    Total Asset Turnover 2.5 2.5 2.6 N.A.
    Debt Ratios
    Debt to Net Worth -0.04 -0.03 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios
    Net Working Capital $244,000 $257,664 $272,093 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 0.85 0.87 0.89 N.A.
    Current Debt/Total Assets 1% 0% 0% N.A.
    Acid Test 29 29.12 29.16 N.A.
    Sales/Net Worth 2.1 2.2 2.2 N.A.
    Dividend Payout 0 0 0 N.A.

    FAQ

    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.

    Download Recycling Company Business Plan Sample in pdf