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.

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 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.

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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
  • 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 Planning 
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.

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. 

Step2: Branding

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. 

Step5: Advertisement

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.

Recycling Company Business Plan - Startup Cost
Start-up Expenses 
Research and Development$10,000
Expensed Equipment$53,200
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 Requirements$1,189,800
Start-up Expenses to Fund$254,400
Start-up Assets to Fund$935,400
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 
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$53,200
Other Current Liabilities (interest-free)$0
Planned Investment$1,189,800
Investor 1$0
Investor 2$0
Additional Investment Requirement$0
Loss at Start-up (Start-up Expenses)$252,800
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 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:

    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 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.

    5.2.4 Government

    Our company will also provide trash and recycling services to government buildings and organizations.

    Market Analysis       
    Potential CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
    Commercial Businesses36%53,20063,84076,60891,930110,31610.00%
    Residential Community30%43,20051,84062,20874,65089,58010.00%
    Industrial & Manufacturing22%23,20027,84033,40840,09048,10810.00%

    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.

    Marketing Strategy

    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

    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 SalesYear 1Year 2Year 3
    Plastic Retreival750795843
    Waste Services9501,0071,067
    Dupmster & Container Rental1,2501,3251,405
    Plastic Materials Sale550583618
    TOTAL UNIT SALES3,5003,7103,933
    Unit PricesYear 1Year 2Year 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
    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 CostsYear 1Year 2Year 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 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

     Personnel Plan   
     Year 1Year 2Year 3
    Recycling Plant Personnel$180,000$198,000$217,800
    Executive Operations$30,000$33,000$36,300
    Total Salaries$461,000 $507,100 $557,810

    Financial Plan

    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

     General Assumptions   
     Year 1Year 2Year 3
    Plan Month123
    Current Interest Rate8.12%8.20%8.26%
    Long-term Interest Rate8.40%8.44%8.47%
    Tax Rate24.03%24.21%24.60%

    8.2 Break-even Analysis

    Recycling Company Business Plan - Break-even Analysis
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     Break-Even Analysis 
    Monthly Units Break-even5340
    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 1Year 2Year 3
    Sales$1,377,500 $1,693,774 $2,082,665
    Direct Cost of Sales$503,500 $587,081 $653,421
    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%
    Sales and Marketing and Other Expenses$145,000$148,000$156,000
    Leased Equipment$0$0$0
    Payroll Taxes$24,000$25,000$27,000
    Total Operating Expenses$640,200 $690,550 $751,710
    Profit Before Interest and Taxes$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/Sales13.58%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 ReceivedYear 1Year 2Year 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
    ExpendituresYear 1Year 2Year 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
    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  
    AssetsYear 1Year 2Year 3
    Current Assets   
    Accounts Receivable$24,000$26,880$30,213
    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 CapitalYear 4Year 5Year 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
    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 1Year 2Year 3INDUSTRY PROFILE
    Sales Growth7.25%8.03%8.90%3.00%
    Percent of Total Assets    
    Accounts Receivable9.21%10.20%11.31%9.80%
    Other Current Assets2.11%2.34%2.59%2.40%
    Total Current Assets149.80%151.00%152.00%158.00%
    Long-term Assets11.55%11.60%11.64%12.00%
    TOTAL ASSETS100.00%100.00%100.00%100.00%
    Current Liabilities4.90%4.94%4.98%4.34%
    Long-term Liabilities0.00%0.00%0.00%0.00%
    Total Liabilities7.59%7.65%7.72%7.38%
    NET WORTH100.45%101.25%102.19%110.00%
    Percent of Sales    
    Gross Margin94.60%97.15%99.87%99.00%
    Selling, General & Administrative Expenses93.56%96.09%98.78%97.80%
    Advertising Expenses1.52%1.56%1.60%1.40%
    Profit Before Interest and Taxes41.50%42.62%43.81%33.90%
    Main Ratios    
    Total Debt to Total Assets0.18%0.18%0.17%0.40%
    Pre-tax Return on Net Worth74.08%74.89%75.00%75.00%
    Pre-tax Return on Assets96.30%101.12%106.17%111.30%
    Additional RatiosYear 1Year 2Year 3 
    Net Profit Margin33.56%34.60%35.67%N.A.
    Return on Equity55.80%57.53%59.31%N.A.
    Activity Ratios    
    Accounts Receivable Turnover7.77.87.8N.A.
    Collection Days100100100N.A.
    Inventory Turnover32.434.0235N.A.
    Accounts Payable Turnover15.61616.3N.A.
    Payment Days272727N.A.
    Total Asset Turnover2.52.52.6N.A.
    Debt Ratios    
    Debt to Net Worth-0.04-0.03-0.04N.A.
    Current Liab. to Liab.111N.A.
    Liquidity Ratios    
    Net Working Capital$244,000$257,664$272,093N.A.
    Interest Coverage000N.A.
    Additional Ratios    
    Assets to Sales0.850.870.89N.A.
    Current Debt/Total Assets1%0%0%N.A.
    Acid Test2929.1229.16N.A.
    Sales/Net Worth2.12.22.2N.A.
    Dividend Payout000N.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.

    Download Recycling Company Business Plan Sample in pdf