Free Recycling Center Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $500,000 for the development of a recycling center while showcasing the expected financials and operations over the next three years. Recycling Center, Inc. (“the Company”) is a New York based corporation that will acquire recyclable goods with the intent to sort, smelt, and resell bulk inventories of metal, paper, and plastic to distributors in its targeted market. The Company was founded in 2009 by John Doe.
1.1 Products and Services
The primary revenue streams for the business will come from the sale of bulk metal, paper, and plastic that will be sold to manufacturers and wholesalers throughout the target market. The Company will acquire these inventories by acting as a private recycling center where individuals, general contractors, and subcontractors can drop off their waste recyclable materials. Within its facility, the Recycling Center will have all of the necessary equipment to process and repackage waste recyclables into saleable inventories. The third section of the business plan will further describe the services offered by the Recycling Center.
1.2 The Financing
Mr. Doe is seeking to raise $500,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
The Recycling Center’s mission is to provide the local market with an outlet where their can properly dispose of their waste materials while concurrently generating a profit from the resale of packaged recyclable materials.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the waste management industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals, contractors, and wholesale buyers of recyclable materials within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Recycling Center, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Recycling Center requires $500,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Recycling Center, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Recycling Center. Based on historical numbers, the business could fetch a sales premium of up to 5 to 7 times earnings.
3.0 Products and Services
Once the business receives its capital infusion, the Company will actively begin sorting, packaging, and reselling recyclable materials to the open market. There is a large host of manufacturers, wholesalers, and recyclable product dealers that are seeking to acquire large inventories (typically on a per ton basis). Their primary intent is to either reuse the materials in their business processes or sell them to other third parties. Once the private recycling facility is operational, the business will have the ability to generate substantial income from the ongoing sale of packaged recyclable materials that will primarily consist of bulk paper, plastic, and metals. The business will be able to recycle all of these materials from its facilities. Please note that the expected per ton pricing for the Company’s recyclable material inventories can be found in the fifth section of the business plan.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the recycling industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2009, at which point the economy will begin a prolonged recovery period. However, as people will continue to recycle their used materials (metal, paper, and plastic); the business will be able to continually smelt and repackage these materials for sale on the open market. This will ensure that that the Recycling Center can remain profitable and cash flow positive at all times.
4.2 Industry Analysis
Within the United States, there are approximately 8,000 businesses that provide waste management, private recycling, and removal for non-hazardous recyclable waste from construction sites. These companies aggregately generate more than $26 billion dollars per year and provide jobs for more than 160,000 people. The industry is a mature, and the expected future growth rate is anticipated to equal that of the general growth of the US economy. These businesses’ revenues are directly tied to the housing market, which has been strong in recent years. However, severe increases in the general interest rate my slow the growth of new constructions, additions, and other work that allows the Company to generate revenue. In this event, Recycling Center, Inc. may experience a slight decline in revenues.
4.3 Customer Profile
The Company anticipates that its average client will be a general construction or specialty subcontractor that operates within the target market. Since this demographic is extremely large, the exact demographics of each client will vary greatly, but they will all have the common need to have recycling management services that are managed well and done at a reasonable price.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Recycling Center intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Company.
5.1 Marketing Objectives
• Establish relationships companies that purchase wholesale and bulk inventories of recycled paper, plastic, and metal.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising to promote recyclable material drop offs among local residents.
• Develop ongoing relationships with general and subcontractors that need a venue to discard recyclable waste materials.
5.2 Marketing Strategies
The business will use a multitude of marketing strategies to promote and expand the visibility of the Recycling Center so that individuals and businesses use the site to drop off their recyclable waste materials. The Company will maintain its listing in the Yellow pages, create marketing campaigns within local newspapers, and promote the business through word of mouth advertising. Additionally, Management intends to continue to develop a number of referral and contractual relationships with area general and subcontractors. This will allow the Company to continually expand its inventories of recyclable materials. Finally, the business will develop ongoing purchase order relationships with bulk purchasers of recycled materials including third party distribution companies and manufacturing businesses that will use recycled materials in their production processes.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• The Recycling Center will have an annual revenue growth rate of 10% per year.
• The Owner will acquire $500,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
The Company’s revenues are sensitive to a number of external environmental factors including changes in the bulk price of paper, plastic, and metal as well changes in the price of oil. However, the Company will develop strict selling protocols that ensure that the pricing inputs for the Company’s recycled material distribution operations well known for each transaction. As such, the business is only modestly sensitive to pricing shocks or unexpected pricing changes.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis