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 with 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. 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 a 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 the like, and turn them into useful products. The business will offer a wide range of services and products for the ease of its customers.
2.2 Management of recycling company
To start a plastic recycling business, you must have strong management skills. Adequate planning is necessary to ensure flawless management. There is no better way to plan out every aspect of your company than developing a recycling company business plan pdf like the one offered here.
A relevant business plan such as a business plan for e waste recycling company can also help you write your strategic plan.
In this recycling business proposal, we will guide you on all the major aspects of a strong business plan. This business plan is written for investors as Ardon needed funding to set up his recycling business.
2.3 Customers of recycling company
Our customers and the people who will benefit from our products and services are expected to belong to both ends of the supply chain. Our customers will belong to almost all work domains as plastic recycling is required in many diverse areas nowadays. However, our potential and recurring customers are identified as follows:
- Commercial Businesses
- Residential Community
- Industrial and Manufacturing Units
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.
3.2 Why the recycling company is being started
Ardon noticed that as the environmental movements 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 to existing modes through his intellect and knowledge. Therefore, he decided to start his own recycling business to fully implement the great ideas he had.
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 startup.
The next step is to get your company and its values and services recognized by customers. For this purpose, Greenworks Recycling Center will make a brand that people can trust. Defining the brand is important as it enables you to introduce a good image of your business to your customers. It also helps you create a space for yourself in the market.
Step3: Physical Space
The next step is establishing the physical presence of the business and for this purpose, Ardon decided to buy a large place in the outskirts of New York. To set up his recycling company, he acquired land that had shades, a closed space, large rooms, and a technical room. After acquiring the space, he got the machinery installed there.
Step4: Online Presence
A wider audience can be attracted through online channels so establishing an online presence is a must if you start a business nowadays. 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. In later sections, we will document the sales strategy developed by Ardon.
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|
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 that are in the most demand in your target location.
For starting a recycling company, you can follow this guide on how to open a recycling business to figure out what the market for the business looks like and what services are ideal to be included in your startup. 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. Plastic is of distinctive types and it usually has joint material attached to it. Our company will segregate plastic consisting of different polymers, strengths, and qualities.
- Waste Awareness 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 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 recycled plastic material buyers a permanent customer group 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 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 rates of similar services in the market. If you don’t know how to open a recycling business company and how to price your offerings then you can take help from 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 is a very smart move as the demand will only increase.
5.2 Marketing Segmentation
The potential customers of Greenworks Recycling Center are divided into the following groups:
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 need-based trash removal and recycling services.
5.2.2 Residential Community
Residential customers have a variety of materials to be recycled. Some households generate enough trash making it economically feasible for the resident to utilize a larger commercial-sized trash container for weekly trash service.
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 contact us for scrap metal hauling and redemption, cardboard and waste paper recycling, construction and demolition debris collection, and trash disposal.
Our company will also provide trash and recycling services to government buildings and organizations.
|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 up to $70k per month by the end of the fifth year
- To achieve and maintain a CSAT score above 92%
5.4 Product Pricing
Our prices will be economical as compared to our competitors. We aim to provide the best services at a nominal rate.
To start a recycling company, you must develop the best business plan with an impressive sales strategy. 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 a business plan developed for Greenworks Recycling Center by a business consultancy firm. You can use this business plan to write other business plans like shoe business plan . You can learn a lot from here if you are even making a skateboard store business plan.
6.1 Competitive Analysis
- Our custom programs will ensure that 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.
- We’ll offer a 30% discount on specialized recycling services for the first month of our launch.
6.3 Sales Monthly
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 you are hiring employees in your company. You also need to be very diligent in background checks when hiring for these positions.
This business plan for a plastic recycling company has all the detail regarding the employment practices of a recycling service business. The same personnel plan can be used for starting a paper recycling plant.
7.1 Company Staff
The list of employees, necessary for the business to function, includes:
- 1 CEO/ Manager
- 6 Recycling Plant Personnel
- 1 Operations Executive
- 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|
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 help analyze how to direct cash flows to earn revenue.
Evaluating the startup costs are also 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. It would also help you to analyze your yearly expenses to determine the possibilities of reducing them. To know how to make an accurate financial plan and which projections to include in it, you can see this business plan. Here we’re providing the detailed financial plan made for Greenworks Recycling center.
The financial plan of this sample can also be used to write jewelry business plan.
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
|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.|
- Is the recycling business profitable?
Yes, if you start recycle business after doing proper planning, it can be immensely profitable.
- 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 businesses.
- How do I start a recycling business?
A recycle company business plan is needed to start a recycling business. Along with this a strong operations and marketing strategy is also needed.
- Why recycling is not profitable?
The only reason behind a recycling business not yielding the desired profits can be inaccurate planning. If you follow the stepwise guide given in this business plan recycling company, your business is not likely to get into a loss.
OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.