wood recycling business plan

How to Create Recycling Business Plan Efficiently in 2024

• Last Updated: February 21, 2024

• A well-crafted recycling business plan is crucial for financing, attracting investors, and driving the company’s growth and success.
• Analyzing the market is essential to identifying key opportunities, differentiating from competitors, and establishing a sustainable customer base.
• Developing a clear sales and marketing strategy with defined target markets help you build building brand awareness.

Starting a recycling business without a sound plan is like a sitting duck waiting to be shot. But thankfully, you are here so that you can get a guiding light for your new venture.

There is no doubt that the recycling services industry is on an upswing as it was valued at $57.69 billion in 2021 and is expected to touch the $90 billion mark by 2028 .

So first, let us show you what a recycling business plan is and how it will help you before moving on to its components.

Table of Content

• What is Recycling Business Plan?

How to Develop a Recycling Business Plan?

What is recycling business plan .

Recycling business plan is a comprehensive document that outlines the goals, objectives, strategies, and financial projections of your business. In simple words, think of it as your pole star that will show you a way out of the dark.

Having such a well-developed plan can serve as a roadmap to guide your company’s operations and ensure better efficiency.

Why is it important to construct for your recycling business?

Whether you are starting a new business or already associated with the recycling industry, developing a robust business plan is essential for achieving organizational goals. Below is why you must construct one for your business. 

1. Identifying your target market

Firstly, it enables you to identify and analyze your target market to help you understand the needs of your potential customers so that you can precisely serve what they want.

This precision will give you a competitive edge over your competitors who are scattering their efforts all over the place.

2. Managing your operations and resources

A business plan provides you with clarity about your operations, like how the daily waste collection process should take place and what tasks will be carried out by your team in a timely manner.

This will ensure that everything is properly aligned along with the right set of instructions for doing them. As a result, your recycling business can run smoothly.

3. Making your financial projections

A recycling business plan includes financial projections for at least the first year of operation. This projection gives you an idea about the funding you need for your business to take off. In short, it assists you to develop your financial plan as well. 

Once you have projections ready, it also provides you with a roadmap for achieving your revenue and profitability goals. In other words, you can say, it gets your numbers right.

4. Ensuring compliance with regulations

As a business owner, you cannot provide your services legally without complying with the rules set by the jurisdiction in your area. 

This is where it is crucial to develop a business plan that gives you an overview of the regulations and requirements for operating a recycling business in your service area. 

Doing it right before starting your recycling business ensures that you have complied with all applicable regulations. This means you can avoid hefty fines as well as mitigate potential risks.

5. Monitoring your performance

A recycling business plan gives you detailed insights by serving as a baseline for monitoring your performance and progress. This allows you to come up with your strategies and operations accordingly and make informed decisions to optimize your recycling process.

Creating a plan is one of the initial steps when it comes to starting a new recycling business. But, how will you develop it efficiently? For that, let’s discuss its components in the next section..

Business owners should include 10 main components while developing a business plan. Let us talk about them one by one. 

1. Industry overview

This section gives you a gist of the recycling industry and the market trends that are driving its growth. It typically includes information such as:

Size and growth of the industry

This section should provide an overview of the recycling industry’s size and growth trends. You can include statistics on the amount of waste generated, the percentage of waste that is currently being recycled, and projections for future growth.

Key market segments

Target market segments mean the sections of the whole industry which you are eying to target. For example – commercial or residential waste. Identify your target market segments and provide information on the size of each segment and its growth potential.

Competitive landscape

Analyze the major players (aka competitors) in your region, including their market share, strengths, and weaknesses. Also, identify any new entrants or potential competitors that may affect your business.

The legal and regulatory environment

Provide an overview of the legal and regulatory environment in which your business will operate. This gives you an idea of any permits or licenses required to operate a recycling business.

2. Executive summary

An executive summary is like a quick overview of your overall business plan. Here are some key elements to include:

• Services: Give an overview of the services that your recycling business will offer and the types of waste you will recycle.
• Target market: Describe the target market for your recycling business, including demographics, geography, and the size of the market.
• Financial projections: Summarize your financial projections for the first few years of operation, including revenue, expenses, and profit margins.

3. Mission statement

The mission statement is all about your company’s primary focus and what it aims to achieve. A well-crafted mission statement can serve as a guiding principle for all the decisions made at your business.

Thus, it should communicate the essence of the company’s business, values, and culture, including recycling problems and solutions . However, when creating a mission statement, it is important that you keep it clear and concise.

4. Services and pricing

Following a statement, you can describe the recycling services that  you want to provide and how much you will charge for each of them. Hence, it should include a breakdown of the costs associated with any of your services as well as any pricing plans you offer. 

For example , you could charge a flat fee for a specific service such as curbside recycling pickup. Or, wherever possible, you can charge variably based on the volume of materials being recycled. 

5. Operational plan

It outlines the day-to-day activities that are essential to run your business. It gives details on: 

• How your business will function?
• How it will meet its goals and objectives?
• What processes and precautions will everyone need to follow?

This will ensure that your daily efforts produce the maximum output toward your desired goals. As an additional benefit, it also saves recycling companies from inconsistencies that happen when a reliable plan is not set.

When deciding your operational plan, it is wise to add software to your process that will relieve you of much of your daily burden.  One such recycling waste collection route planning software is Upper,  which helps you plan routes for your waste collection team so that they can reach their destinations in a minimum time.

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6. Job roles and responsibilities

This outlines the key positions within your business and the responsibilities associated with each of them. One of its purposes is to provide a clear understanding of the organizational structure of your company.

Here are some examples of job roles and responsibilities that can be included in a recycling business plan:

• Chief Executive Officer (CEO): The CEO is responsible for providing direction for the company while overseeing all aspects of its operations and ensuring that it achieves its objectives.
• Operations Manager: The Operations Manager is responsible for overseeing the day-to-day operations, managing staff, coordinating with customers, and ensuring that all equipment and facilities are properly maintained.
• Sales and Marketing Manager: A person who can develop marketing strategies to promote the services, identify new business opportunities, and build relationships with key customers.
• Customer Service Representative: The person should be responsible for providing customers with information about the company’s services, answering questions, and resolving any issues or concerns that arise.
• Recycling Technician: The Recycling Technician is responsible for sorting, processing, and preparing recyclable materials using recycling technologies for reuse.

7. Target market research

The process gives an in-depth analysis of the industry, competition, and potential customers. Thus, it is important to conduct thorough research using reliable sources and data. Let’s have a look at each of its components:

• Industry analysis: It provides an overview of the recycling industry, including its size, growth, and recycling trends as well.
• Competitor analysis: Here you identify your competition and their strengths or weaknesses. You can figure out information on their products, pricing strategies, marketing approaches, and market share.
• Customer analysis: Its purpose is to show you the buying behavior, pain points, and preferences of your target audience.

Pro tip: The better you know your audience, the more effective will be your market research. So, find out the demographics, psychographics, and needs and preference of your target audience in detail.

8. Sales and marketing strategy

A strategy outlines the specific tactics and approaches that you will use to promote your services, generate leads, and convert those leads into paid customers. Here are some of its key elements:

• Promotion channels: Here you identify specific channels for promoting your services and how you will use them. It includes digital marketing, social media, print media, events, and word-of-mouth marketing.
• Lead generation : This section describes the methods you will use to generate leads such as  cold calling, email marketing, SEO, and PPC advertising.
• Sales/Conversion approach: It tells you how you will close more sales and generate more revenue. If you have any unique selling proposition (USP) that makes you stand apart, you can describe it in this part.

9. Financial projections

It is crucial step as it provides an overview of the expected financial performance of the company in the short term and long term. This also serves as a goal to achieve for your entire team so that you keep on growing financially every year. 

Here is an example to give you a better idea of a financial projection: 

• Revenue: $500,000
• Cost of services provided: $250,000
• Gross profit: $250,000
• Operating expenses: $100,000
• Net income: $150,000

10. SWOT analysis

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It is a strategic planning tool that helps you identify and analyze internal and external factors that can affect the operations and profitability of your business. 

Here’s a breakdown of each component of the SWOT analysis:

• Strengths: These are internal factors that give you an advantage over other recycling businesses. It includes your business’s core competencies, unique selling points, financial stability, and other resources.
• Weaknesses: These are internal factors that put your business at a disadvantage compared to its competitors. It can be a lack of resources, inexperienced staff, poor infrastructure, etc.
• Opportunities: These are external factors such as emerging trends, changes in regulations, new markets, or partnerships that your business can capitalize on to improve its operations and profitability.
• Threats: These are external factors that can negatively impact your business’s operations and profitability. It can be market competition, economic downturns, changing regulations, natural disasters, etc.

By conducting a SWOT analysis, you will have a better understanding of what to capitalize on (strengths and opportunities) as well as figure out weaknesses and potential threats.

To identify your target market, you need to consider factors such as location, demographic, and behavior. Determine the type of recyclables products that are in demand and the consumers who are likely to use recycling services.

The startup costs for a recycling business can range from $10,000 to $20,000, depending on the size and type of operation.

One should establish a strong marketing strategy that promotes your services and highlights the benefits of recycling in order to attract more clients. Additionally, you can use social media platforms, local advertising, and community outreach to raise awareness of your business.

The success of a recycling business can be measured through various metrics such as revenue growth, customer retention rate, and the volume of recyclables collected and processed.

All in all, a recycling business plan is a crucial roadmap that outlines your company’s mission, services, target market, sales and marketing strategy, financial projections, and operational plan. 

A well-crafted plan can help you secure financing, attract clients and guide your business toward sustainable growth and profitability. So, go through these all components before you start your recycling business because it is worth all the effort. In case you want to streamline your waste collection process, it is recommended to use software like Upper. You can explore its features by taking a 7 days FREE TRIAL . 

Rakesh Patel, author of two defining books on reverse geotagging, is a trusted authority in routing and logistics. His innovative solutions at Upper Route Planner have simplified logistics for businesses across the board. A thought leader in the field, Rakesh's insights are shaping the future of modern-day logistics, making him your go-to expert for all things route optimization. Read more.

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Start A Wood Recycling Business - Business Ideas

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

Starting a wood recycling business requires a great deal of effort, dedication, and most importantly passion .

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How to Start a Recycling Business

Importantly, a critical step in starting a recycling business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start a Recycling Business :

• Choose the Name for Your Recycling Business
• Develop Your Recycling Business Plan
• Choose the Legal Structure for Your Recycling Business
• Secure Startup Funding for Your Recycling Business (If Needed)
• Secure a Location for Your Business
• Register Your Recycling Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Recycling Business
• Buy or Lease the Right Recycling Business Equipment
• Develop Your Recycling Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Recycling Business
• Open for Business

1. Choose the Name for Your Recycling Business

The first step to starting a recycling business is to choose your business’ name. This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your recycling business:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your recycling business.

2. Develop Your Recycling Business Plan

One of the most important steps in starting a recycling business is to develop your business plan. The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business. Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your recycling business.
• Company Overview – this section tells the reader about the history of your recycling business and what type of recycling business you operate. For example, are you a recycling collection center, plastic, metal, glass, or a paper recycling business?
• Industry Analysis – here you will document key information about the recycling industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing products or services like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your recycling business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your recycling business make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

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3. choose the legal structure for your recycling business.

Next you need to choose a legal business structure for your recycling business and register it and your business name with the Secretary of State in each state where you operate your business. Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the business owner and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a recycling business together. The partners share in the profits and losses of the business. The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a recycling business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a recycling business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others. Once you register your recycling business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

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4. Secure Startup Funding for Your Recycling Business (If Needed)

In developing your recycling business plan, you might have determined that you need to raise funding to launch your business. If so, the main sources of funding for a recycling business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a recycling company that they believe has high potential for growth.  

5. Secure a Location for Your Business

There are a few things to consider when looking for a location for your recycling business. First, think about the type of recycling company you want to start. Do you want to recycle paper, plastic, metal, or glass? You may have different facility requirements depending on the type of material you’ll be recycling.

Next, you’ll need to consider the size of your operation. How much space do you need for your recycling equipment and materials? Will you be able to expand your business in the future? Finally, you’ll need to think about where your customers are located. You’ll want to choose a location that is convenient and easy for them to access.

When you’ve considered all of these factors, you’ll be able to narrow down your search for a location for your recycling business. Once you’ve found a few potential locations, you can contact the property owners and ask about leasing or purchasing options.  

6. Register Your Recycling Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.  

7. Open a Business Bank Account

It is important to establish a bank account in your recycling business’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your recycling business to help you separate personal and business expenses. You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.  

9. Get the Required Business Licenses and Permits

To start a recycling business, you will need a business license and a permit to operate a recycling center. You may also need a permit to collect recycling materials from businesses and residences. Check with your local business licensing office to determine the specific requirements for your area.  

10. Get Business Insurance for Your Recycling Business

There are various types of insurance necessary to operate a recycling business. Some business insurance policies you should consider for your recycling business include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Auto insurance : If a vehicle is used in your business, this type of insurance will cover if a vehicle is damaged or stolen.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
• Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
• Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.  

11. Buy or Lease the Right Recycling Business Equipment

Depending on the type of recycling business you operate, you may need a variety of equipment. For instance, you will need a recycling truck, a compactor, and a baler. You may also need a shear, shredder, and a conveyor belt. You can purchase these items new or used. Used equipment is usually cheaper but you may have to do more maintenance, which leads to greater ongoing costs. You can find all of these items at your local recycling center or online.  

12. Develop Your Recycling Business Marketing Materials

Marketing materials will be required to attract and retain customers to your recycling business. The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your recycling business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website : Likewise, a professional recycling business website provides potential customers with information about the products and/or services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your recycling business.

13. Purchase and Setup the Software Needed to Run Your Recycling Business

A computer is necessary to manage your business operations. You will need word processing software to create letters and invoices, accounting software to track expenses and income, and a contact management system to keep track of customers and suppliers. There are many different options for each type of software, so be sure to research the best options for your business needs.  

14. Open for Business

You are now ready to open your recycling business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.  

Additional Resources

Recycling Mavericks  

How to Finish Your Ultimate Business Plan in 1 Day!

How to start a recycling business faqs, is it hard to start a recycling business.

There is no one-size-fits-all answer to this question, as the difficulty of starting a recycling business will vary depending on factors such as the location of the business, the amount of competition in the area, and the type of recycling services offered. However, with a solid business plan and good marketing strategy, it is definitely possible to start a successful recycling business.

How can I start a recycling business with no experience?

There are a few ways to start a recycling business with no experience. You can start by becoming familiar with the recycling process and learning about the different types of recycling. You may also want to network with other business owners and get advice from them. Finally, you can attend trade shows and events related to recycling to learn more about the industry.

What type of recycling business is most profitable?

There is no definitive answer to this question as it largely depends on the specifics of the recycling business. However, certain types of recycling companies may be more profitable than others. For example, a recycling business that specializes in collecting and recycling metals may be more profitable than a business that specializes in collecting and recycling plastic. Additionally, a recycling business that processes and recycles materials on-site may be more profitable than a business that requires materials to be shipped off-site for processing. Ultimately, the most profitable recycling businesses are those that are able to generate the most revenue while incurring the least amount of expenses.

How much does it cost to start a recycling business?

It typically costs around $10,000 to start a recycling business. There are a few things you'll need to get started, such as a vehicle to transport the materials, recycling bins, and advertising. You'll also need to pay for a business license and zoning permit from your local government.

What are the ongoing expenses for a recycling business?

A recycling business usually incurs ongoing expenses for transportation, labor, and supplies. The cost of transportation may vary depending on the distance involved. Labor costs will also depend on how many workers are needed and how long they work. The cost of supplies will include things like bags, gloves, and sorting equipment.

How does a recycling business make money?

A recycling business can make money in a few ways. One way is by charging customers for the service of recycling their materials. Another way is by selling the recycled materials to companies that need them. Recycling businesses can also make money by getting grants from local or state governments.

Is owning a recycling business profitable?

There are a number of reasons recycling can be a profitable business . 

First, there is a rising demand for recycled materials. Companies are increasingly environmentally conscious and look for new ways to reduce their carbon footprint. 

Second, recyclers can charge to collect materials and then sell recycled materials for a profit. Recyclable materials are often preferred by commercial customers because they can be more sustainable and require less energy and money to process than raw materials. 

Finally, the recycling industry is becoming increasingly automated. There is less labor required to operate a recycling business. As a result, recycling businesses are becoming more cost-effective.

All of these factors together make owning a recycling business a lucrative venture. If you are looking to start a business that is both profitable and environmentally friendly, then a recycling business may be the perfect option for you.

Why do recycling businesses fail?

There can be a few reasons why most recycling businesses fail. Recycling businesses can fail if they are not able to effectively collect and process materials, or if they are unable to find buyers for their recycled products. Additionally, recycling businesses can be unsuccessful if they are not financially well-managed and operated. While there are many reasons recycling businesses can fail, there are also many ways to overcome these challenges and create a successful recycling operation.

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Recycling Business Plan

Environmental benefits, high demand, and a recurring profit model make starting a recycling business a lucrative and rewarding profession.

Anyone can start a new business, but you need a detailed business plan when it comes to raising funding, applying for loans, and scaling it like a pro.

Need help writing a business plan for your recycling business? You’re at the right place. Our recycling business plan template will help you get started.

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write a Recycling Business Plan?

Writing a recycling business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

• This section may include the name of your recycling business, its location, when it was founded, the type of recycling business (E.g., paper recycling, metal recycling, glass recycling, tire recycling), etc.

Market opportunity:

Products and services:.

• For instance, you may include collection & sorting, material processing, manufactured products from recycled materials, sustainable waste management solutions, etc.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

• Paper recycling business
• Plastic recycling business
• Metal recycling business
• E-waste recycling business
• Glass recycling business
• Tire recycling business
• Construction & demolition recycling business
• Explain where your business is located and why you selected the place.

Mission statement:

Business history:.

• Additionally, If you have received any awards or recognition for excellent work, describe them.

Future goals:

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

• For instance, government agencies, commercial & industrial businesses, residential customers, manufacturing & industrial facilities, or educational institutions would be an ideal target audience for a commercial recycling business.

Market size and growth potential:

Competitive analysis:, market trends:.

• For instance, sustainable fleets have a booming market; explain how you plan on dealing with this potential growth opportunity.

Regulatory environment:

Here are a few tips for writing the market analysis section of your recycling business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Product and Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your products & services:

Mention the recycling products& services your business will offer. This list may include

• Collection & sorting services
• Material processing
• Manufactured products from recycled materials
• Composting services
• Waste audits & consulting
• Education & awareness programs

Quality measures:

• This may include material sorting & contamination control, compliance with environmental regulations, product quality standards, continuous improvement & innovation, etc.

Additional Services:

In short, this section of your recycling plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

• For example, comprehensive recycling solutions, advanced recycling technologies, or collaborative partnerships could be some of the great USPs for a professional recycling company.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your recycling business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your recycling business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & machinery:.

• Explain how these technologies help you maintain quality standards and improve the efficiency of your business operations.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your recycling business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

• It should include, key executives(e.g. COO, CMO.), senior management, and other department managers (e.g. general manager, operations manager, sales & marketing manager.) involved in the recycling business operations, including their education, professional background, and any relevant experience in the industry.

Organizational structure:

Compensation plan:, advisors/consultants:.

• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your recycling services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.

Financing needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your recycling business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample recycling business plan will provide an idea for writing a successful recycling plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our recycling business plan pdf .

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Frequently asked questions, why do you need a recycling business plan.

A business plan is an essential tool for anyone looking to start or run a successful recycling business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your recycling company.

How to get funding for your recycling business?

There are several ways to get funding for your recycling business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your recycling business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your recycling business plan and outline your vision as you have in your mind.

What is the easiest way to write your recycling business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any recycling business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

How do I write a good market analysis in a recycling business plan?

Market analysis is one of the key components of your business plan that requires deep research and a thorough understanding of your industry.

We can categorize the process of writing a good market analysis section into the following steps:

• Stating the objective of your market analysis—e.g., investor funding.
• Industry study—market size, growth potential, market trends, etc.
• Identifying target market—based on user behavior and demographics.
• Analyzing direct and indirect competitors.
• Calculating market share—understanding TAM, SAM, and SOM.
• Knowing regulations and restrictions
• Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

How detailed should the financial projections be in my recycling business plan?

The level of detail of the financial projections of your recycling business may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a complete view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

What key components should a recycling business plan include?

The following are the key components your recycling business plan must include:

• Executive summary
• Business Overview
• Market Analysis
• Products and services
• Sales and marketing strategies
• Operations plan
• Management team
• Financial plan

Can a good recycling business plan help me secure funding?

Indeed. A well-crafted recycling business will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.

So, if you have a profitable and investable business, a comprehensive business plan can certainly help you secure your business funding.

What's the importance of a marketing strategy in a recycling business plan?

Marketing strategy is a key component of your recycling business plan. Whether it is about achieving certain business goals or helping your investors understand your plan to maximize their return on investment—an impactful marketing strategy is the way to do it!

Here are a few pointers to help you understand the importance of having an impactful marketing strategy:

• It provides your business an edge over your competitors.
• It helps investors better understand your business and growth potential.
• It helps you develop products with the best profit potential.
• It helps you set accurate pricing for your products or services.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Recycling Company Business Plan Sample

AUG.26, 2013

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.

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:

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.

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

Excellent work.

excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!

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:

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.

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

6.4 Sales Yearly

6.5 Sales Forecast

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

7.2 Average Salary of Employees

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

8.2 break-even analysis.

8.3 Projected Profit and Loss

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.

8.5 Projected Balance Sheet

8.6 business ratios.

• 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

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.

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How to start a waste recycling business

Table of Contents

Different kinds of waste recycling

Waste paper and cardboard, plastic recycling, metal recycling, electronic devices, wood recycling, glass recycling, clothing and textiles, bricks and inert waste recycling, regulations, how to register your waste recycling business, making a business plan, start-up costs, finding partners, useful contacts, environment agency, department for environment, food and rural affairs, chartered institute of waste management, the environmental services association, manage your finances with a simple app.

As the world continues to put a greater emphasis on environmental issues, there are more opportunities for businesses to cater to those needs. 

It’s not just government agencies that must commit to environmental standards, nowadays there are many more upsides for businesses that choose to go green, whether it’s for regulatory purposes or just part of building a socially conscious public image. 

All this means that waste recycling looks to be a promising career prospect going forward. In this guide, we’ll cover everything you’ll need to know about how to start a waste recycling business, including:

• Different kinds of waste recycling 
• Managing your finances

First of all, let’s talk about what we actually mean by “waste recycling” because it can cover a lot of different areas that you can cover as a business. 

Most paper and cardboard is completely recyclable. In the UK alone, several million tonnes of it are discarded every year, so recycling it is big business and great news for the environment. 

Plastic waste is a huge environmental problem at the moment. Because it doesn’t break down naturally, any plastic that ends up in landfills or oceans is going to be there for a long time.

Metal is by far one of the most robust when it comes to recycling. Because it doesn’t lose any of its quality during the process, all kinds of metal can be recycled over and over again for different purposes.  

Waste of electrical and electronic equipment (WEEE) recycling became mandatory in 2014 with the introduction of WEEE regulations. 

The regulations prevent electronic devices from ending up in landfills where the materials and batteries become more dangerous as they degrade. It covers pretty much all electronic devices, but you’ll mainly be dealing with things like computers, monitors, mobile phones, radios, TVs and electrical tools. 

Wood is an incredibly versatile material for recycling. It can be easily reshaped and reused or turned into mulch for building materials

Glass is another material that is perfect for recycling. It’s all completely reusable and never loses its quality, so it can be recycled pretty much endlessly into products that are as good as brand new. 

Clothing has become a much larger issue in recent years. As the general public has started to catch on to the real environmental cost of “fast fashion”, there has been a real push to prevent the mountains of old clothing from filling up landfills. 

Luckily, around half of textiles that go into making clothes can be recycled. 

Finally, a lot of waste from construction sites can be recycled into usable materials for other construction products. 

Rubble can be ground down into building materials, while old bricks can be reused for different projects or turned into brick chips for landscaping. 

Starting a waste recycling business involves adhering to regulations set out by the Waste Framework Directive and Environmental Protection Act. 

Under their regulations, both you and every business you work with:

• Have a ‘Duty of Care’ requiring them to ensure their waste is disposed of safely and properly even after it has been passed on to another party.
• Must ensure waste is transferred only to another authorised person.
• Must transfer a written description of the waste so that the new carriers can properly perform their own Duty of Care.
• Planning consent from their local authority or council. This can be difficult because local residents often protest waste projects in their area. 

For a full picture of the regulations you need to follow, and how to get them, get in touch with these government agencies:

• Department for Environment, Food and Rural Affairs. 
• The Environment Agency.
• Driver and Vehicle Licensing Agency – for vehicle licenses.
• The Chartered Institute of Wastes Management and the Environmental Services Association – for training courses about Duty of Care and permits. 

As a recycling business, you’ll need to register with HMRC for the proper license. The license applies to any business that plans to:

• Transport waste (a carrier).
• Buy, sell, or dispose of waste (a dealer).
• arrange for someone else to buy, sell, or dispose of waste (a broker).

Registration costs £154, but operating without registration could lead to a fine of up to $5,000

When you register, you’ll need all of the following:

• Names and dates of birth of the organisation’s executives, owners, directors or partners.
• Details of any environmental offences they’ve committed.
• A way to pay (for example, a debit or credit card).

When you register, HMRC will tell you whether your registration is upper or lower tier. Upper-tier registrations need to be renewed every 3 years for £105. You don’t need to renew if it’s a lower-tier registration. 

If any of your registration details change, you’ll need to contact the Environmental Agency to update your registration. You need to update them within 28 if any of the following things happen:

• Your organisation’s contact details change
• Your organisation’s management changes
• Someone in management is convicted of an environmental offence
• Your organisation changes what it does, for example, you’re registered as a waste carrier but start acting as a waste broker as well. This change will cost an additional £40. 

Your details need to be updated within 28 days.

You’ll need to apply for entirely new registration if:

• your business structure has legally changed, like changing from a sole trader to a limited company
• you’re changing from a lower tier to an upper-tier registration

A new registration will cost another £154. 

The guidance we’ve mentioned is specific to England, there are slightly different processes depending on where you live in the UK:

• Northern Ireland

Any business that plans to use, recycle, treat, store, or dispose of waste also needs a specific permit from the Environmental agency . 

Once again, there are different issuing bodies for each region of the UK:

Both the registration process and permit application can be a little confusing, and the penalties for not getting it perfect are severe, so it’s probably a good idea to contact the Environmental Agency directly to make sure you’re doing everything right. 

Every business should begin with a detailed business plan. It’ll clearly outline all your main goals while giving you step by step guidance on how to achieve those goals. 

Not only that, your business plan will be useful if you’re trying to secure investors. Whether you’re applying for a bank loan or working with a private individual, a business with a well-made plan is going to be a much safer bet for them.

At the very basic level, every business should be made up of:

• Market research
• A SWOT analysis

There’s a lot to unpack in those three steps, so check out our article, How to write a business plan , for a more detailed explanation. 

Starting a waste recycling business will require a fair amount of investment. Most of your money will go into buying or renting a space big enough for your needs. You’ll need to bear in mind that each type of recycling will need different amounts of storage and machinery. 

Your other main start-up costs will include:

• Employee wages
• Insurance and registration costs

Remember, a lot of these costs can be lower if you choose to subcontract or hire out labour and equipment, instead of buying everything yourself. 

When it comes to waste trucks, prices can vary a lot. A good one could cost anywhere between £10,000 to £35,000. The sort of trucks you should be looking at are:

• Front-loaders –  They have an automated fork placed on the front operated by a driver. The waste is lifted into a large container then compacted by a packing blade.
• Rear loaders – They’re generally used in residential areas. They have a large opening at the back where workers can throw in waste. 
• Automated Side Loaders (ASL) – These are what most people think of when they picture a garbage truck. This loader picks up bins and empties them out with large mechanical arms. They normally work in residential areas on behalf of the local council. 
• Pneumatic Collection WCVs – These trucks have a large crane with a mouthpiece that attaches to openings in the ground. It’s used for sucking up underground waste from any construction or installations stuck underground. 
• Grapple trucks – Used to collect and transport bulky waste, anything too large or difficult to remove by hand. 

Most insurance brokers will offer tailored insurance policies depending on your industry, but generally, these are the most common insurance policies you’ll need:

• Public liability insurance – if your business comes into contact with members of the public.
• Employers’ liability insurance – if your business employs staff.
• Business buildings insurance 
• Business contents insurance – protects the contents of your business premises, your business equipment, and tools.
• Stock insurance – if you hold any stock, whether on your premises or in storage.
• Product liability insurance – protects you should a customer of yours suffer damage as a result of a faulty product you provide.
• Personal accident insurance 
• Business interruption insurance – if your business is disrupted by material damage caused by an event such as a flood or fire.
• Business legal protection insurance – covers your commercial legal expenses and protects against the potential costs of legal action brought by or against your business.

You can’t start a waste recycling business without waste. To make your business worthwhile, you’re going to need large volumes of it too, so finding partners is essential. 

As part of your market research, you should contact local businesses and organisations to see if they’d be interested in a partnership. Some good places to start would be:

• Local councils
• Construction companies
• Bars and restaurants
• Government buildings – schools, prisons, libraries, museums.

For everything we’ve mentioned so far, here’s the contact information for all the departments you’ll need to get in touch with. 

Email: [email protected]

Telephone: 03708 506 506

Telephone: 03459 33 55 77

Email: [email protected]

Telephone: 01604 620426

Email: [email protected]

Phone: 0207 824 8882

Financial management can be stressful and time-consuming when you’re self-employed. That’s why thousands of business owners use the Countingup app to make their financial admin easier. 

Countingup is the business current account with built-in accounting software that allows you to manage all your financial data in one place. With features like automatic expense categorisation, invoicing on the go, receipt capture tools, tax estimates, and cash flow insights, you can confidently keep on top of your business finances wherever you are. 

You can also share your bookkeeping with your accountant instantly without worrying about duplication errors, data lags or inaccuracies. Seamless, simple, and straightforward! 

Find out more here .

• Counting Up on Facebook
• Counting Up on Twitter
• Counting Up on LinkedIn

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Waste Recycling Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Green & Eco-friendly » Waste Recycling

The recycling business is an eco-friendly business that can earn you a living and make you a business owner and an employer of labor. Many misconceptions are out there and scaring people away from the recycling business, most people think a recycling business is all about collecting soda cans, bottles, and old paper.

But in fact, most profitable recycling businesses concentrate on other items and materials, such as the gold found in computers and cell phones, used tires, or re-selling household goods.

All you need to start a recycling business requires a good knowledge of where to collect your goods and where to sell them, as well as strong entrepreneurial skills and perseverance.

A Sample Waste Recycling Business Plan Template

1. industry overview.

The recycling industry has become an integral part of modern society not only due to its social and economic impact but also because it plays a vital role for the future of our planet. In the world today, it is estimated that over 1 trillion tons of waste at the household level and in industries is generated.

Common materials for recycling include bottles, paper towels and aluminum cans et al and the niches available in the recycling industry are metals recycling, plastics recycling, electronic recycling, water recycling, oil recycling, glass recycling, furniture recycling , garbage recycling, tire recycling, construction waste recycling, paper recycling, battery recycling, cartridge recycling and industrial waste recycling.

According to experts, all sorts of used scrap metal may be profitable. The waste and recycling sector is a broad one though, and there are lots of areas that remain unexploited often because big recycling companies and Waste Management outfits believe the market value is too small.

Some environmental experts further say that the world market for waste, from collection to recycling, is worth around 300 billion Euros ( US $410 billion ). The recycling business is therefore a growing business that has futuristic benefits; there are markets in the developing world that can be tapped into especially in Africa, Asia and Latin America.

For instance, with the scientific knowledge available to us in this dispensation, it is obvious that it might just   no longer be safe for the earth to accommodate plastic bottles and other waste materials that are buried in it. For this reason, it is very important for government of most countries to encourage plastic bottles and other recycling business.

If you are conversant with companies that use plastic bottles for packaging their products, you would realize that they are promoters of plastic bottle recycling and they ensure that they include the recycling instructions or signs on their entire plastic bottle product.

That is that, companies that are engaged in plastic bottles recycling business or other form of recycling business can be considered as part of those working to save our world from degradation. This is so because plastic bottles that are buried in the earth are shielded from sunlight hence it becomes impossible for them to decompose.

It is a known fact that at least 66% of energy is saved when producing new plastic bottles from recycled plastic bottles, as against producing plastic bottles from the very scratch. That is why most companies engage in the use of recycling plastic bottles for their packaging, clothing, toys, fiberfill for sleeping, plastic bags, plastic ruler, amongst many others.

Statistics has it that the Recycling industry in the united states of America is worth bn, with an estimated growth rate of -5.5 percent. There are about 1,155 registered and licensed recycling facilities in the United States and they are responsible for employing about 23,308 people.

The recycling industry has come to stay and the good part of it is that it enjoys the support of environmentalist and the government of various nations since it is a means to preserve the earth from degradation, greenhouse gas emissions and environmental pollution.

Although establishing your own recycling company requires huge startup capital and rigorous processes to build your own plant, but it is a fact that it is indeed a profitable venture.

The market for recycled aluminum cans, pet bottles, used papers and cardboards et al is large and can accommodate loads of investors. For example, recycled aluminum cans are used for canning foods, drinks, chemicals, lubricants, oil, industrial gum and much more.

2. Executive Summary

Friends of The Earth Recycling®, LLC is a U.S based licensed and standard recycling company. We have been able to secure a standard and well – positioned facility in the outskirt of town in San Bismarck, North Dakota; a facility that is well positioned and highly suitable for the kind of recycling plant that we want to build.

We are in the recycling industry to contribute our quota in saving the earth and also to compete in the highly competitive recycling industry not only in Bismarck – North Dakota, but also throughout the United States market.

Friends of The Earth Recycling®, LLC will initially be involved in the recycling of materials such as aluminum cans, scrap metals, pet bottles, used papers and cardboards et al. We intend providing raw materials for companies that are into the manufacturing / production of books / papers, drinks, lubricants, oils, spare parts, chemicals, water, plastic and paper bags et al.

Our business goal is to become one of the leading recycling company in the United States and we will make sure that we do all we can to compete favorably with leaders in the industry.

We are going to operate on a topnotch level and that is why our workers are going to be selected from a pool of certified and highly experienced recycling engineers and technicians in and around Bismarck – North Dakota and also from any part of the United States of America as the business grows.

We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading recycling plants in the United States and throughout the globe.

At Friends of The Earth Recycling®, LLC our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for all our partners, employees and for our clients.

Friends of The Earth Recycling®, LLC is founded by Engr. Shannon Carson a recycling engineer per excellence who graduated with from Illinois Institute of Technology (B.Engr.) and his friend and business partner for many years Moses Carpenter (B.Sc. Business Management).

They have a combine experience that can help them build Friends of The Earth Recycling®, LLC to favorably compete with other leading recycling plants in the United States of America.

3. Our Products and Services

Friends of The Earth Recycling®, LLC was established with the aim of maximizing profits in the recycling industry. We want to compete favorably with the leading recycling plant in the United States which is why we have but in place a competent quality assurance team that will ensure that every recycled material or products that leaves our recycling plant meet and even surpass our customers’ expectations.

We will work hard to ensure that Friends of The Earth Recycling®, LLC is not just accepted in Bismarck – North Dakota but also in other cities in the United States of America. Our products and services are listed below;

• Sale of recycled pet bottles and plastic bags
• Sale of recycled papers and cardboards
• Sale of recycled aluminum cans and materials
• Sale of recycled metals and other related recycled materials

4. Our Mission and Vision Statement

• Our vision is to establish a standard and world class recycle plant whose products and brand will not only be accepted in Bismarck – North Dakota but also in other cities in the United States of America.
• Our mission is to provide standard recycled materials that will assist the relevant industries in saving cost and energy and also to contribute our quota in helping save our world from unnecessary degradation.
• We want to build a recycling plant that can favorably compete with other leading brands in the recycling industry.

Our Business Structure

Friends of The Earth Recycling®, LLC is a recycling company that intend starting small in Bismarck – North Dakota, serving smaller industries within our locations, but hope to grow big in order to compete favorably with leading recycling plants in the industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operations.

At Friends of The Earth Recycling®, LLC, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders ( the owners, workforce, and customers ).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer
• Head, Technical Services
• Human Resources and Admin Manager
• Sales and Marketing Executive
• Plant Engineers / Technicians and Operators

Client Service Executive

Truck Drivers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Head, Technical Services:

• Serves as project manager of the organization; works directly with employees
• Develops strategic plan by studying technological and financial opportunities; presenting assumptions; recommending objectives.
• Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
• Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
• Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
• Maintains quality service by establishing and enforcing organization standards.
• Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
• Makes certain that the technical department perform efficiently, coordinate employee efforts, and facilitate communications between management and recycling plant engineers, technicians and machine operators
• Ensures that the organization work in line with international best practices.

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Designs job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carrying out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Oversees the smooth running of the daily office activities.

Sales and Marketing Manager

• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Creates new markets cum businesses for the organization
• Empowers and motivates the sales team to meet and surpass agreed targets

Accountant / Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for Friends of The Earth Recycling®, LLC
• Serves as internal auditor for Friends of The Earth Recycling®, LLC

Recycling Plant Engineers (2) and Technicians / Machine Operators (8)

• Responsible for installing, maintaining and repairing of all the recycling machines in the plant
• Responsible for operating recycling machines in the plant
• Operates facilities for separating and sorting recyclable materials from nonhazardous waste streams
• Operates facilities where commingled recyclable materials are sorted into distinct categories
• Handles any other job functions as it relates to recycling materials.
• Assists in loading and unloading waste materials and recycled materials.
• Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
• Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment, such as hazardous material placards.
• Assists the transport and logistics manager in planning their route according to a pick – up and delivery schedule.
• Inspect vehicles for mechanical items and safety issues and perform preventative maintenance
• Complies with hazardous waste truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
• Collects and verify delivery instructions
• Reports defects, accidents or violations
• Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

6. SWOT Analysis

Friends of The Earth Recycling®, LLC engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured recycling business that can favorably compete in the highly competitive recycling industry in the United States and the world at large.

Part of what the team of business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for Friends of The Earth Recycling®, LLC. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Friends of The Earth Recycling®, LLC;

Our core strength lies in the power of our team; our workforce. We have a team of certified and highly trained and experience recycling engineers and technicians / machine operators, a team with excellent qualifications and experience in various niche areas in the recycling industry.

Aside from the synergy that exists in our carefully selected workforce, our product will be guided by best practices in the industry and our recycling plant is built to fit into the design of a 21 st century recycling plant.

As a new recycling plant in Bismarck – North Dakota, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients ( big time manufacturing / production companies that make use of recycled materials ) in the already saturated and highly competitive recycling industry; that is perhaps our major weakness.

Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.

• Opportunities:

No doubt, the opportunities in the recycling industry is massive considering the number of individuals and manufacturing companies who are now switching over to alternative source of raw materials basically to save cost and energy. As a recycling company, we are ready to take advantage of any opportunity that is available in the industry.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new recycling plant in same location where our target market exists and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

• Market Trends

One obvious trend in the recycling industry is that players in this industry leverage on saving the earth and balancing the ecosystem to promote their business.

As a matter of fact, governments all over the world and even international Non – Government Organizations are in the forefront when it comes to campaigning in favor of recycling materials to generate raw materials for industries as against tapping virgin raw materials. This is so because it will help save cost and energy and the earth that we live in will be the better for it.

Another trend is that is common in the recycling industry is that, with the advancement of technology, it is now easier the recycle and process almost any materials and liquid waste that exist in our world. This trend and the immerse support from government and NGOs is sure responsible for encouraging investors to venture into the recycling industry

Lastly, more and more manufacturing industries are beginning to see the benefits of going for recycling materials as against going for virgin raw materials in the production of their products. This is the reason why the industry is expanding and becoming more profitable and viable.

8. Our Target Market

Before starting our recycling business in Bismarck – North Dakota, we conducted a market survey and feasibility studies and we are certain that there is a wide range of manufacturing / production factories that cannot successfully run their businesses without sourcing for recycled raw materials from us.

In view of that, we have created strategies that will enable us reach out to various manufacturing / production companies who we know can’t afford to do without our products / recycled raw materials. Below is a list of the people and organizations that we have specifically market our products and services to;

• Food and drinks processing and packaging companies
• Roofing and construction companies
• Chemical manufacturing companies
• Manufacturers and Distributors
• Printing Press (Publishing Houses)
• Branding and Advertising agencies
• Entrepreneurs and Start – Ups who would need recycled raw materials from us.

Our Competitive Advantage

The recycling industry is an emerging one that is yet to be fully accepted globally, therefore there is little or no competition in the industry at the moment. Although, there is a relationship between the emerging players as they cannot do without the other.

Since the industry is a multi-stage one, there is need for collaboration among the players in order to have a win-win situation for all the players. Without a shadow of doubt, there are loads of big time investors that have a stake in the recycling industry; but one thing is certain, there is room big enough to accommodate all players.

So, if you enter the industry today, you should brace up yourself for collaboration and prepare for serious competition in the nearest future as soon as the recycling industry enter it boom period, this period will definitely arrive especially in the developing world in little time when recycled product is seen in the same light as the new and “virgin” materials.

Our competitive advantage lies in the power of our team; our workforce. We have a team of certified and highly trained and experience recycling engineers and technicians / machine operators, a team with excellent qualifications and experience in various niche areas in the recycling industry.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category ( startups recycling companies in the United States ) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Friends of The Earth Recycling®, LLC is established with the aim of maximizing profits in the recycling industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients. Friends of The Earth Recycling®, LLC will generate income by selling and supplying the following products;

10. Sales Forecast

One thing is certain, there would always be manufacturing / production companies who cannot but source their raw materials from recycling plants.

We are well positioned to take on the recycling industry and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our recycling company to enviable heights.

We have been able to critically examine the recycling market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Bismarck – North Dakota.

Below is the sales projection for Friends of The Earth Recycling®, LLC, it is based on the location of our business and of course the wide range of our services and target market;

• First Fiscal Year-: $150,000
• Second Fiscal Year-: $250,000
• Third Year-: $600,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there is stiffer competition in the recycling industry; hence we have been able to hire some of the best marketing experts to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the recycling industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Friends of The Earth Recycling®, LLC.

Our corporate goal is to grow Friends of The Earth Recycling®, LLC to become one of the top 10 recycling brands in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in Bismarck – North Dakota but also in other cities in the United States of America.

Friends of The Earth Recycling®, LLC is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our recycling company by sending introductory letters alongside our brochure to manufacturing / production companies and other key stake holders in the manufacturing industry.
• Advertise our business in relevant business magazines, newspapers, TV stations, and radio station.
• List our business on yellow pages ads (local directories)
• Attend relevant international and local expos, seminars, and business fairs et al
• Create different packages for different category of clients in order to work with their budgets and still deliver good recycled raw materials
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We will not undermine the fact that for a lot of people to know what we do, we have to continuously advertise. We have been able to work with our in house brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to become the number one choice for manufacturing / production companies in the whole of Bismarck – North Dakota and beyond which is why we have made provisions for effective publicity and advertisement of our recycling company.

Below are the platforms we intend to leverage on to promote and advertise Friends of the Earth Recycling®, LLC;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our services
• Install our Bill Boards on strategic industrial locations all around Bismarck – North Dakota
• Engage in road show from time to time in targeted industrial estates
• Distribute our fliers and handbills in target areas
• Contact manufacturing / production companies by calling them up and informing them of Friends of The Earth Recycling®, LLC and the services we offer
• List our solar panel installation, maintenance and repair company in local directories / yellow pages
• Advertise our recycling company in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles / trucks are well branded with our company logo et al.

12. Our Pricing Strategy

At Friends of The Earth Recycling®, LLC we will keep the prices of our recycled raw materials below the average market rate for all of our customers by keeping our overhead low and by collecting payment in advance from corporate organizations who would hire our services. In addition, we will also offer special discounted rates to all our customers at regular intervals.

We are aware that there are some one – off jobs or government contracts that are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.

• Payment Options

At Friends of The Earth Recycling®, LLC our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft
• Payment via mobile money
• Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a standard recycling plant; it might differ in other countries due to the value of their money. However, this is what it would cost us to set up Friends of The Earth Recycling®, LLC in the United of America;

• Business incorporating fees in the United States of America will cost – $750.
• The budget for Liability insurance, permits and license will cost – $3,500
• Acquiring facility that will accommodate the design of recycling plant we want to build will cost – $150,000.
• The amount required to purchase the needed recycling equipment and machines – $120,000
• Equipping the office (computers, printers, projectors, markers, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $30,000
• Amount required to purchase the needed software applications to run our business – $3,500
• Launching an official Website will cost – $500
• Amount need to pay bills and staff members for at least 2 to 3 months – $70,000
• Amount needed to acquire trucks – $50,000
• Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000

Going by the report from the market research and feasibility studies conducted, we will need about four hundred and fifty thousand ( $450,000 ) U.S. dollars to successfully set – up a medium scale but standard recycling plant in the United States of America.

Generating Funding / Startup Capital for Friends of the Earth Recycling®, LLC

Friends of The Earth Recycling®, LLC is a business that will be owned and managed by Engr. Shannon Carson and his friend and business partner for many years Moses Carpenter. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 ( Personal savings $70,000 and soft loan from family members $30,000 ) and we are at the final stages of obtaining a loan facility of $350,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Friends of The Earth Recycling®, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to sell our recycled raw materials a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Friends of The Earth Recycling®, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of ten years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Securing a standard facility to build a standard and modern recycling plant: CompLeted
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the start – up capital from the founders: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of Logo for the business: Completed
• Purchase of repair and installation tools and equipment: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the needed recycling machines, equipment and trucks: In Progress
• Purchase of the Needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
• Creating Official Website for the business: In Progress
• Creating Awareness for the business: In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in various industries: In Progress

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Pallet Manufacturer Business Plan

Start your own pallet manufacturer business plan

Advanced Technology Pallets

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

The scrap tire recycling industry has been around for many years, but uses for recycled scrap tire rubber are in the initial stage, as less than 20% of scrap tires are processed. Approximately 10% are incinerated, generally for power generation, although air quality issues are always a concern as scrap tires, like coal, are dirty fuel. Approximately 4% of our scrap tires are exported to other countries where the casings are used in retread plants or the used tires are sold as is. Currently about 2% are processed into crumb rubber and used in molded products and for modified rubberized asphalt applications, which provides a longer lasting and more durable asphalt surface.

Stockpiles of scrap tires create health problems as they become breeding grounds for rodents, snakes, and mosquitoes, and also are serious fire hazards. With approximately 250 million scrap tires being generated annually in the United States and the existing piles estimated at between 2-3 billion, this represents a serious problem.

ATP-Advanced Technology Pallets a Nevada Corporation (ATP), is proud to present its unique and patented product the RST-PAL Pallet, a new pallet made from recycled scrap tire rubber. The “RST-PAL Pallet” is strong, durable and reusable, providing an alternative to wooden pallets and the expense associated with replacing, repairing and discarding wooden pallets. RST-PAL Pallets might be serial numbered and bar-coded to insure tracking and retrieval so that they can be used over and over again for many years.

The inventor, Dan Radke, has assigned to ATP all patent rights (to the approved and issued patent USPTO # 08/680,476) to manufacture and market the RST-PAL pallets worldwide, in perpetuity.

OUR MISSION

To provide cost effective and durable pallets to all industries and manufacturing.

THE EXISTING PROBLEM

• Wood and plastic pallet life cycle is short and the cost is very high.
• Wood pallets break and need repair or replacement every one or two trips.
• Wood absorbs liquids, gains weight, breaks and splinters, and is difficult to clean.
• Industries demand more durable and long lasting pallets.
• Scrap tire stockpiles are an environmental hazard.
• Current pallets made of wood, are consuming over 3.5 million trees annually.

THE SOLUTION

• RST-PAL pallets are less costly to buy and maintain.
• RST-PAL pallets are more durable and indestructible.
• RST-PAL pallets can support 15 times the load of a similar wooden pallet.
• RST-PAL pallets are rackable, stackable, more durable and longer lasting.
• RST-PAL pallets are unique, made from recycled scrap tire rubber using a newly patented process that includes rubber, recycled plastics and a binder system.
• RST-PAL pallets are guaranteed for years.
• RST-PAL pallets have no competition worldwide.

TECHNOLOGY AND PROCESS

• The materials process and the manufacturing of pallets are based on an approved and issued patent (USPTO # 08/680,476).
• International (PCT) patent protection filed.
• Production line machinery is available and has been sourced.
• Raw materials are readily available and have been sourced.
• Flexible production line allows for building various pallet sizes, with high yield and quality.
• Product is production “ready”. All R&D and qualification complete.
• Process based on modular capacity that allows for quick manufacturing expansion.
• Factory is environmentally “clean” with no waste stream.
• Prototypes have been built, tested, and qualified.
• U.S. consumption of pallets is 800 million a year (National Wooden Pallet and Container Association, NWPCA).
• RST-PAL pallets have the lowest life cycle cost compared to wood, aluminum, and plastic.
• Global Pallets-leasing options available.
• Marketing to focus on both closed and open loop distribution systems.
• Worldwide markets and licensing opportunities (Internationally protected patents).
• U.S. Government Agencies and Contractors markets.
• U.S. government has mandated product replacement with recycled products first.

MARKET QUOTATIONS

• “Quality, reusable multi-trip pallets instead of poorly constructed single user pallets” is needed ASAP. (Reference: NWPCA)
• Contractors doing business with the government are required to purchase “environmentally friendly” and “recycled products” products first. (Reference: President Clinton Executive order)
• Prototypes were evaluated by different industries, including military and government agencies with positive feedback.
• Potential sales pending investment and production ramp up.
• Environmental incentives to certain markets (Government sub-contractors).
• All licenses, permits, governmental agencies acquired and in support of project.

PALLET COST COMPARISON – OVER FIVE YEARS

• Use of RST-PAL pallets demonstrates substantial savings, $22 for RST-PAL pallet vs. $133 for total cost for wooden pallet, over 5 years. (See Topic 4.2 and 4.3.1).

INVESTMENT REQUIRED AND USE OF FUNDS

• $6M investment for 35% ownership estimated to reach profitability within 12-18 months.
• From the second year forward, 50% of the net profit after tax will be distributed as dividends to the shareholders (as long as it will not affect the planned expansion). The other 50% will be dedicated to growth.
• Funds raised will be used for plant setup, operations, equipment, marketing and sales.

First year operation with two production lines is expected to produce 1,137,000 units, with a projected net profit of over $8 million.

INVESTOR DISCUSSION

• Projections reflect the return of the original investment in less than two years.
• Approximately six times valuation, based on discounting of five years of net earnings to present value.
• Present Value of five years of projected net earnings at a 25% discount (incl. risk factor) is $98 million.
• Reaching less than 1% of the market share with five plants within five years.
• Projected revenue of approximately $402 million.
• Projected net profit (before taxes) of approximately $178 million.
• Management Team – Strong and professional with highly specialized consultants.
• Exit Strategy alternatives:  (a) IPO after two years;  (b) Acquisition;  (c) Private ownership with a long horizon of profits.

RST-PAL Pallets  —  MANUFACTURED FROM RECYCLED SCRAP TIRE RUBBER

HELPING TO CLEAN UP AMERICA’S SCRAP TIRES

1.1 Mission

ATP is a manufacturing and marketing company dedicated to providing to all industries cost effective and durable pallets made from recycled scrap tires. The manufacturing process and the product are patent protected worldwide with no existing competition.

Pallet users, both manufacturers of commodities and industries that use pallets for their main distribution, demand a more durable and longer lasting pallet to replace wooden pallets that require constant repairing, replacing and discarding. The National Wooden Pallet and Container Association states that a wooden pallet gives service for only one to two trips before having to be repaired or replaced. Because of the short life cycle of wood (and plastic) pallets, pallet users are forced to purchase pallets more often.

Scrap tire stockpiles throughout the United States represent dangerous environmental hazards as they are breeding grounds for mosquitoes, rodents, and snakes, and create potential hazards for fires, which are extremely dangerous and expensive to extinguish.

ATP will reduce scrap tire stockpiles hazards and will help to conserve some of the 3.5 million trees harvested each year to manufacture wooden pallets. ATP will locate its manufacturing plants in rural towns, near large metropolitan areas, where employment is needed the most.

ATP will earn profits and provide excellent return to its investors while at the same time financing an aggressive growth of the company to increase production each year. ATP will also maintain a friendly, fair, and creative work environment, which respects diversity, product improvement, and hard work.

1.2 Objectives

• To establish two production lines at the first plant in Stamford, Texas in order to produce 1.2 million pallets annually, with projected net income (before taxes) in excess of $8 million.
• To expand production annually by opening a plant with two additional lines of production each year for years two through five.
• Achieve targeted market share of 0.15% in the first production year to 0.75% by the end of year five. (800 million pallets are manufactured and sold annually in the U.S.)
• First year projected market share of 0.15% is expected to bring net profits of $8 million (before taxes), and 0.75% of the market share in year five is projected to bring net profits of $66 million. Accumulated profits (before taxes) are projected to be $173 million for the first five years of production.
• ATP will take advantage of the acute need for solutions to America’s scrap tire problems, and establish plants in different locations where scrap tires are abundantly available, while taking advantage of benefits and subsidies offered by different State Government programs for the remediation of scrap tires.
• Develop foreign markets, through licensing agreements, especially in Europe and the Far East, where similar acute problems of scrap tires exist.

1.3 Keys to Success

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• An existing pallet market in the U.S. of over 800 million pallets sold annually. It is estimated that approximately 60% are hardwood pallets; these users are ATP’s targeted customers.
• RST-PAL pallets have the lowest life cycle costs compared to wooden or plastic pallets.
• RST-PAL pallets are patent protected, are durable and virtually indestructible, and can carry in excess of 15 times the load of wooden pallets.
• Pallets are a well-known, necessary and established product; therefore there is no need to penetrate the market with a totally new product. In fact, RST-PAL pallets are not a new product at all, but are far superior, durable and longer lasting than anything comparable in the market place. The advertising and marketing costs will remain low as the RST-PAL pallets are introduced to pallet users through trade shows and conventions, with ATP’s sales representatives located in targeted marketing regions. The first targeted marketing region is Dallas/Fort Worth, Texas, near the first plant in Stamford, Texas.
• The U.S. government has mandated, through an executive order, a “buy recycled first” for all government agencies and contractors, including the Department of Defense and Department of Transportation. ATP will target federal and state agencies to market RST-PAL pallets.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

A.T.P.-Advanced Technology Pallets (ATP) a Nevada Corporation was formed to create a joint venture with the participation of the new investors and the current owners: RST Manufacturing LLC and Elie Banensohn, ATP’s Vice President.

ATP will manufacture and market worldwide the RST-PAL Pallet, made from a patent protected new material that includes the use of recycled scrap tire rubber. The pallet will be an affordable alternative to the high cost of purchasing, repairing, replacing, and discarding wooden pallets. Pallet users purchasing RST-PAL pallets will realize substantial savings in their pallet costs.

ATP is a new entity with RST Manufacturing LLC, becoming a shareholder. RST Manufacturing has invested in excess of $1 million to date, to complete research and development, prototypes, and pre-production marketing of the pallets. Plant property in Stamford, Texas, initial machinery, materials and supplies were purchased to bring the project to where it is today so that we can move into production and marketing of the RST-PAL Pallets through ATP. RST will transfer all assets to ATP. These efforts include the issuance of USPTO #08/680,476 in July 2002, a Utility Patent that will protect the unique material, and the product, RST-PAL Pallets.

All patent rights to manufacture and market the RST-PAL Pallets worldwide, are assigned in perpetuity to ATP by the inventor and ATP’s president, Dan Radke.

The Company’s was formed as a Standard C Corporation under the laws of the State of Nevada. The principal offices are presently located in Las Vegas, NV.

2.1 Company Ownership

Upon completion of the offering ATP a Nevada Corporation, will be owned by:

• The new investors (up to) – 35%

ATP is offering 35% of its shares to raise $6 million as additional capital needed for starting the first plant (with two production lines), in Stamford, Texas. ATP National Headquarters is in Las Vegas, Nevada and sales representatives will be positioned in targeted marketing areas.

The majority owner of RST Manufacturing LLC, is the inventor of the new material and the RST-PAL pallet, Mr. Dan R. Radke,  the President of ATP.

The inventor, Dan Radke, has assigned all patent rights to ATP to manufacture and market the RST-PAL pallets worldwide in perpetuity.

2.2 Start-up Summary

The following summary table shows the projected start-up costs during the seven months needed to get into production. It includes the supply of specific machinery and equipment needed for the production lines. The start-up costs are to be financed by the money raised through this Private Placement Memorandum Offer.

The funds sought for opening the plant with two production lines is $6 million with projected net profits, in the first year of over $7 million. Alternatively, as a minimum plan, we could open with one line of production with funds of $4 million. In this case, the projected net profit, in the first year is over $3 million. In either case, about $750,000 will be available as working capital for the first six months of operations (after the plant is in production).

Management expects to begin production in approximately 180-200 days from funding as detailed in the Start-Up table.

ATP’s product – the RST-PAL pallet is a unique and revolutionary pallet made from a new, patent protected, material of recycled scrap tires, a small amount of recycled plastic and a bonding process. The function specifications of our pallets are identical to the existing wooden pallets (e.g. sizes, four ways entry, upper deck coverage etc.) except that RST-PAL pallets are much more durable and longer lasting which makes penetration into the existing markets less difficult. The patented process and product gives our RST-PAL pallets the following advantages over the existing pallets:

• RST-PAL pallets carry 15 times the load of a similar wood pallet.
• RST-PAL pallets are rackable, stackable, and longer lasting than wooden pallets.
• RST-PAL pallets do not absorb liquids and are easy to clean.
• RST-PAL pallets have NO competition.
• RST-PAL pallets are environmentally friendly and are, themselves, a recyclable product.
• RST-PAL pallets are made of recycled scrap tire rubber material using a newly patented process which includes rubber, recycled plastics, and a binder system.

It is a rare occasion when a company can make a significant contribution to our environment as well as create an important long awaited product that will provide substantial cost savings for its users and allow them the opportunity to use and promote environmentally friendly, recycled products.

According to the National Wooden Pallet Container Association (NWPCA), its Strategic Planning Committee suggests that its members educate pallet users toward using higher quality, reusable multi-trip pallets instead of cheaper single use pallets. From a list of 62 potential threats to the wooden pallet industry, the committee chose lumber supply/raw material availability as the top threat. Other top threats identified by the committee include frozen thinking on the part of the industry, demonstrated by an unwillingness to recognize or adapt to the new realities of the marketplace, and environmentalists, a threat recently demonstrated by the draft Executive Order which would have banned wood pallets from use by the Federal Government.

A Clinton Administration Executive Order entitled “Federal Recycling, Acquisition and Use of Environmentally Preferable Products and Services” requires government agencies and those doing business under government contract to begin using “environmentally preferable” products made from recycled materials.

Paul Evanko, principal and vice president, St. Orge Company, York, PA, stated, “Pallets must adhere to a high quality standard”. “Poor quality pallets carry a hidden cost beyond the price paid and customers should be encouraged to purchase the best quality they can”. “Alternative materials including plastic, recycled and composite materials will emerge and pallet users will seek these pallets because of limited storage space, efficient handling weight and full four-way entry,” Evanko contends. “Wood will still be predominant,” Evanko said, “but there is a niche for alternative materials in the distribution flows”.

The Earth Works Group, Berkeley, CA states; “U.S. companies could be spending up to $1.75 billion dollars a year just to throw wooden pallets into landfills”. The Pallet Container Research Laboratory at Virginia Polytechnic Institute and State University, Blacksburg, VA states “calculations show the annual wooden pallet production in the U.S. is using in excess of 3.5 million trees”.

3.1 Innovative Technology

Background  (*) A major technological obstacle, which the recycled rubber market must overcome, is the nature of the rubber itself. Rubber used in the manufacturing of tires is vulcanized (rubber + sulfur) combined in the presence of heat and thermo set (formed into shape by steam and pressure – also referred to as a “cured” product). To date, no technology has been able to devulcanize rubber (break the carbon-sulfur bonds).

As such, thermo set rubber cannot chemically bond with any other polymer (rubber or plastic) to a degree anywhere approaching the uncured rubber. If, however current research is able to remove this obstacle, a very significant market will be opened.

 (*) Scrap Tire Management Council, 1400 K Street, Washington, D.C.

Current usage Today’s usage of scrap tire rubber reaches about 7% of the annually accumulated scrap tires. Each year, about 250 million scrap tires accumulate throughout the U.S. This quantity of tires represents 3.75 billion pounds of crumb rubber from which only 262 million pounds (7%) are recycled and another 187 million pounds (5%) are used as tire derived fuel (TDF), which is a dirty fuel like coal, and requires strict EPA controls, is only being burned in a few states.

According to the Scrap Tire Management Council there were seven markets listed for recycled scrap tire rubber. These markets without exception utilize crumb rubber with all of the steel, wire, and textile removed, as an additive to rubber-modified asphalt (25%); pneumatic tires (25%); athletic fields (20%); bound rubber products (15%); friction material (5%); molded rubber products (5%); and molded rubber/plastic products (5%).

The new technology and the patent Mr. Dan Radke has overcome the obstacle mentioned in the article, (para.1) above. Mr. Radke’s invention of this “unique new material” through formulation and different particle sized recycled scrap tire rubber has created a tough, durable, hard and rigid material from which RST-PAL pallets are manufactured. The process is absolutely unique as proven by the issue of the utility patent protecting the pallet and process of making thereof. This unique and strong material and the usage of it for making pallets will save pallet users throughout the world millions of dollars annually in costs associated with purchasing, repairing, replacing and discarding broken wooden pallets.

Market Analysis Summary how to do a market analysis for your business plan.">

U.S. yearly consumption of pallets is 800 million a year, costing over $10 billion (according to National Wooden Pallet and Container Association). Our first market will be a 200 miles radius area around Dallas/Fort Worth in which the yearly consumption is 60 million pallets. Our markets for the RST-PAL pallets are all industries and users of pallets. About 300 interested users for our RST-PAL pallets (each of them buying over 100,000 pallets/yr) were contacted.

• RST-PAL pallets have the lowest life cycle cost compared to hard wood and plastic.
• Global Pallets leasing.
• Closed and open loop systems.
• Worldwide markets and licensing opportunities (Internationally patent protection filed).
• U.S. Defense and Transportation Departments market. U.S. government has mandated product replacement with recycled products.

ATP’s target in the first year is to produce 1.14 million pallets with two lines of production (constitutes 0.15% of the market), reach sales of $22 million, and ATP projects to earn profits of over $8 million (before tax).

The growth projection for the next five years is to add a new plant with two lines each year, reaching production in excess of six million pallets by the fifth year, (0.75% of the market), with sales projected at $143 million and profits before taxes of over $66 million.

4.1 Market Segmentation

Due to the fact that ATP’s projected plan is to open a new plant each year over the next five years, and to capture 0.15% to 0.75% of the U.S. pallet market, our main growth problem will be the limited abilities to supply the potential demand. Although we segmented the market into six groups we cannot indicate the percentage of growth for each segment, as the growth is not linear. The percentage represents our relative emphasis of this segment.

Yearly Pallet Users – Potential Customers

Total: Five year production =18,410,112. % of the pallet market =0.46

4.2 Target Market Segment Strategy

The following table demonstrates the cost savings that will be realized when a company converts its wooden pallet inventory to RST-PAL pallets.

Currently new hardwood pallets, (example: 40″x48″, four-way entry, 80% top deck coverage) are sold from $12 to $24 per pallet depending on the geographical area where you are purchasing your pallets, and the always fluctuating cost of hardwood. For the purpose of this chart we show the lowest price for large quantities of hardwood pallets at $10.

CHEP Pallet, Inc., the largest pallet leasing company in the world currently pays $23.50 to construct its pallets. 

A pallet user of 100,000 new pallets per year will be saving over $3 million within 5 years using our RST-PAL pallets.

The table demonstrates that big users will realize huge savings. For example, one poultry processing plant that purchases one million pallets per year (about the production of one ATP plant) will realize savings of over $31 million within five years which will encourage them to convert their wooden pallet inventory to RST-PAL pallets.

4.2.1 Sample of Advertisment Content

RST-PAL PALLETS

COMING SOON

THE NEW SOLUTION TO COSTLY

REPAIRS AND REPLACEMENT OF

WOODEN PALLETS

RST-PAL pallets are not affected by heat or cold. Won’t rot, split or mildew STRONG & IMPACT RESISTANT, No more rusty nails, splinters, broken boards and runners RST-PAL PALLETS are 100% Recyclable, made from post consumer waste. No disposal costs

RST-PAL pallets, offering a new solution to an old problem

• RST-PAL pallets made from new tough materials = virtually indestructible.
• RST-PAL pallets are tougher, longer lasting pallets.
• Many years of repeated usage make RST-PAL pallets the best buy.
• Close your pallet repair facilities, our pallets don’t break.
• Stronger and more durable than wood or plastic.
• Easily trackable with bar coding or electronic chip.

RECYCLE / RE-USE of RST-PAL pallets represents a great innovation to the pallet industry with a major cost savings.

RST-PAL pallets address important environmental issues; help clean up America’s growing scrap tire problem and conserve valuable timber resources by using old tires to transport America’s commodities to consumers.

4.3 Industry Analysis

The pallet industry’s computation of the cost of a pallet includes the costs of production, maintenance and repairs, and discarding of the broken pallet. In the last decade, materials other than wood were introduced to the pallet industry like plastic, metal and corrugated cardboard, but still over 90% remain wood.

More than eight hundred million wooden pallets are constructed each year in the U.S., according to the National Wooden Pallet and Container Association (NWPCA). Most wooden pallets must be replaced or repaired after only one to two trips. It is estimated that over 3.5 million trees are used each year for pallet production, and most of these pallets end up in landfills, burned, or composted.

For years pallet users have been asking NWPCA members to build stronger and more durable pallets that would last longer, but nothing has changed. Pallet manufacturers favor the ongoing replacement prevalent in the industry.  

The Recycled Scrap Tire industry generates more than two hundred fifty million scrap tires annually in the United States, one scrap tire for every American. These scrap tires are piling up, adding to the existing stockpile of an estimated two to three billion scrap tires located across the nation causing dangerous environmental hazards. Most states have adopted emergency scrap tire programs to help solve the growing problem of accumulations of scrap tires. The state of Texas has a scrap tire program; collecting and processing more than two hundred thousand tons of scrap tire rubber annually. Currently Texas has more than three million tons of shredded scrap tire rubber on the ground, available to end-users.

ATP with its RST-PAL pallet product will utilize Texas’ scrap tires to manufacture pallets at its first plant in Stamford, TX. The RST-PAL pallets will provide tough and durable pallets to pallet users while helping clean up the scrap tire problem.

ATP’s patented material and the manufacturing process to make pallets from scrap tires is the ultimate solution to the problems presented above:  a) stronger and more durable pallets;  b) reducing scrap tire stockpiles;  c) saving trees. The use of  RST-PAL pallets provides an excellent cost effective price, competitive to hardwood pallet prices.

The table in Topic 4.2 demonstrates the savings for a pallet user that purchases 100,000 pallets annually, when converting from wood to RST-PAL pallets. It shows savings over a five year period of more than $3 million. This saving comes on top of other benefits of using the RST-PAL pallets including: more durable and indestructible, carries 15 times the load of wooden pallets, rackable and stackable, will not absorb liquids (can be stored outside), and guaranteed for years. ATP’s first plant is located in Stamford, Texas, a rural community that is badly in need of economic development and new jobs. Stamford is approximately 150 miles from our first targeted marketing area the Dallas/Ft.Worth Metroplex.

4.3.1 Competition and Buying Patterns

There is NO direct competition to RST-PAL pallets and no similar pallets exist today. The inventor, Dan Radke, has granted, in perpetuity, to ATP Corp the sole rights of utilizing the patent worldwide. This patent (USPTO # 08/680,476) gives very wide protection to the revolutionary invention of special material and to the process of making pallets.

The “competition” comes from pallets made of other materials like wood and plastic. Pallet users that use hardwood pallets do not use pallets made of corrugated cardboard. The table below demonstrates the cost comparison among the different pallets:

PALLET COST COMPARISONS – OVER 5 YEARS (in USD)

(*) Six repairs per year costing $4 each x 5 years.

The table clearly shows that costs over five years of the hardwood pallet is almost ten times that of RST-PAL pallets. In addition to the savings, there are other advantages such as the guarantee, no need to repair, can be stored outside (no liquids are absorbed), washable (important in the food industry), rackable and stackable, strong and indestructible. Bar-coding and electronic chips can be molded into the pallet to allow for specific inventory information regarding what is loaded on the pallet and for tracking.

There is no competition to RST-PAL pallets. There is no competitor making pallets from recycled rubber. ATP anticipates that our limited production will cause our five years expansion plan to be revised in order to meet the demand. Our first plant is expected to produce approximately 1.14 million pallets in the first year and 1.23 million from the second year forward. While the market for pallets is in excess of 800 million annually, ATP expects to capture about 0.15% of the market in the first year, and 0.75% after five years to meet our projections. This takes a great part of the risk out of the project.

ATP has already explored opening a subsidiary company that will lease or lease to own pallets to companies. This will enable ATP to compete with CHEP Pallet Corporation, which leases wooden pallets. CHEP has about 300 branches in the U.S. and also operates in foreign countries. Leasing RST-PAL pallets would be very profitable, as our pallets do not require repairs.

Strategy and Implementation Summary

Due to the increased lifecycle and interchangeability of the RST-PAL pallets with existing wooden pallets, ATP’s customers derive value from utilizing these innovative products in a number of ways. First and foremost, using and replacing the user’s wooden pallet inventory with RST-PAL pallets eliminates ongoing maintenance and replacement costs.

Another value is the longevity RST-PAL pallets offer. RST-PAL pallets have the longest life-cycle regardless of hot, cold, or wet climates or in environments where maintenance is difficult. RST-PAL Pallets will not rot, which is a common problem for wooden pallets.

RST-PAL pallets are manufactured from recycled materials mainly scrap automotive tires. Each 1,000 pallets use 25 tons of scrap tires from landfills, (31,000 tons or 62,000 pounds per plant per year).

RST-PAL pallets will help save hardwood forests currently used to manufacture wooden pallets, reduce greenhouse gases, use significant amounts of waste plastics and scrap tires from landfills and storage facilities, and reduce pallet users costs while increasing profits.

5.1 Competitive Edge

ATP’s most important competitive edge is based on the unique and patented material used to manufacture the RST-PAL pallets. The process, the unique material, and the use of the material to manufacture pallets are protected by the issued utility patent that will prevent duplication or “copycat” competition.

RST-PAL pallets are manufactured from recycled scrap tires. Federal law and most State Governments require agencies and contractors to purchase recycled products first, as mandated by “buy recycled products first”. ATP has already presented RST-PAL pallets to the Army, Air Force Exchange System, (AAFES) located in Texas and throughout the Pacific Rim, and AAFES is interested in purchasing pallets, which will increase their pallet lifecycle, which in the long run is less costly than wooden pallets. We will focus on different government agencies including the Department of Defense and Department of Transportation to introduce and market RST-PAL pallets.

RST-PAL pallets can be power washed or steam cleaned which is a critical factor in the food industry, such as in poultry and meat processing plants, which must maintain sanitized production areas. RST-PAL pallets do not absorb liquids as wooden pallets and they can be stored outside without occupying expensive indoor space.

The RST-PAL pallets are a “triple green” product. They are manufactured from recycled materials, and can be recycled in the event they ever wear out, and they will help conserve our nation’s forests while helping clean up America’s scrap tire problems.

The RST-PAL pallets will be the best cost/performance pallets in the market. The summary of advantages that our pallets have in comparison to existing material pallets such as hardwood, plastic, corrugated cardboard, and aluminum, are:

• An electronic chip for pallet identification and load identification will be available with RST-PAL pallets, and this can be done because of the strength and rigidity of the pallet, which is practically indestructible.

5.2 Marketing Strategy

The RST-PAL pallet is positioned uniquely as all industries and manufacturers use pallets to transport everything from commodities to equipment and parts. The main segmentation among the users is found in how they use pallets. The Power industry uses in excess of twenty million pallets annually, government owned poultry processing plants use more than ten million pallets annually, 3M Corporation purchased seven million pallets in one year alone, and the beverage industry uses in excess of fifty million pallets annually. There are also thousands of companies using anywhere from hundreds of thousands to millions of pallets annually including, chemical companies, bag cement, building materials, grocery, paint companies, and many others.

Our first targeted customers are those that use a “closed loop” distribution system, where they manufacture and/or distribute products using their own fleet, where loaded pallets can be dropped and returned when unloaded, to be utilized over and over again. We also will target government entities, agencies, and contractors both Federal and State.

Our marketing strategy is based on informing and introducing the RST-PAL pallet to pallet buyers across the country and in different industries. We can accomplish this at a rapid pace by showcasing the pallets at selected trade shows and conventions. Samples will be available as well as brochures and videotapes explaining the benefits of the RST-PAL pallet. Our first targeted marketing territory will be the Dallas/Ft.Worth Metroplex, concentrating on those companies using a “closed loop” system for distribution.

The marketing will convey the advantages, benefits and the quality of our product in every picture, every promotion, and every publication. Pallet users have been screaming for years for the wooden pallet industry to make a longer lasting more durable pallet, but their request has fallen on deaf ears, as the pallet builders would rather build a less sturdy pallet so that it will fail after only a few trips, requiring the customer to purchase more pallets. The RST-PAL pallet is a solution to the high cost of purchasing, maintaining and discarding wooden pallets. Our marketing efforts will not only focus on educating purchasing agents of companies, but also in making presentations to company board of directors, demonstrating the cost savings and benefits of using RST-PAL pallets. As was shown in a previous example, a company purchasing 100,000 pallets per year when converting to RST-PAL pallets will save in excess of $3 million over five years. With such convincing statistics, we anticipate universal acceptance of RST-PAL pallets.

5.3 Sales Strategy

As stated, ATP will sell pallets as they are manufactured. Pre-production marketing efforts have been on going for the last year. We have established a sales plan, however our production will dictate how quickly our sales team will expand. One company we have contacted expects to purchase 22 million pallets during the next two years. If we were to capture a large contract, our production schedule would be sold out for a number of years. Another sales company that markets products exclusively to the power industry, would like to have an exclusive to sell our pallets to power companies, and they estimate they can sell a minimum of 1.2 million pallets annually. We have approached many companies on the benefits of using RST-PAL pallets, including; 3-M Corporation, Coca-Cola, Pepsi, Snapple, Anhauser Busch, Hunts Wesson, Kraft Foods, S.E. Rycoff, Albertsons, Kroger Foods, Associated Foods, H.E.B. Foods, Purina Pet Foods, manufacturers of charcoal briquettes, flour and cereal mills, salt processors, building materials, including bagged sand and cement, plaster and even chemical companies.

Our concept is to introduce the RST-PAL pallets to many industries, and ATP will do that from our National Marketing Headquarters in Las Vegas, Nevada. The Las Vegas Visitors and Convention Authority will provide a great arena in which to showcase and demonstrate the RST-PAL pallets, as virtually every important convention and trade show now meets in Las Vegas.

This business plan calls for the company to grow itself. The Texas plant will be the first, and we expect new plants to be opened in years two, three, four and five. Some future plant site work has been completed, however we will locate the plants in States with positive scrap tire programs, some of which may provide subsidies for using scrap tire rubber to manufacture new products. In addition, our company policy will be to establish plants near massive scrap tire piles, and in rural communities where a good labor force exists but jobs are not plentiful and economic development will benefit the community.

ATP Corp. is the worldwide licensee to manufacture and market pallets. We have already had several foreign entities show interest in either becoming distributors or manufacturers through a foreign license arrangement. We have held discussions with a group from China, Japan, Taiwan and South Africa and are in contact with a group in Spain that is interested in our technology.

It is our intent to move our Stamford, TX plant into full production, and utilize the same team of key employees and consultants to open new plants over the next five years. Whereas our Business Plan provides for future plants being financed internally from company profits, additional capital can be raised through the licensing of foreign companies wishing to manufacture and market pallets in those countries.

5.3.1 Sales Forecast

Our sales forecast is based on the following assumptions. We expect our production will be sold as soon as it is ready, as the forecasted production is much less than the anticipated demand. Our product is not seasonal and will be continually manufactured throughout the year. We will operate in three shifts (except during training in first two months).

Our sales force will start taking orders sixty days prior to production. The initial selling price is low in order to introduce the pallets to many different manufacturers and industries. However we expect to raise prices at the rate of 5% per year (which is less than the rate of increase of the wooden pallets).

Regarding the “direct cost of sales” (COG), we assume the costs of materials will remain the same for us, due to discounts we will receive for the quantities of materials that we consume which should offset rising costs. We can also reduce our costs by doing some manufacturing processes ourselves, such as mixing and batching the binders at our plant, and by cutting the scrap tire rubber from chips to our required specifications.

We’ve calculated production labor costs, including salaries, taxes, and benefits to be $1.31 per pallet. The break down of production personnel is presented in the Personnel table, Production Personnel category, and the resultant figures appear in the Profit and Loss table under Sales, Production Payroll.

The Sales Forecast table for the first 12 months appears in the appendix.

5.3.2 Pallet Users

PALLET USERS, Dallas / FT. Worth Area ANNUAL PALLET USAGE.   The following list of pallet users was contacted and the new  RST-PAL Pallet was introduced to each user, receiving excellent interest. Another 22 users were also visited. The Total yearly estimated usage of pallets in the DFW area is 60 million.

PALLET USERS, HOUSTON Area

5.4 Milestones

The following table lists important project milestones during the pre-production start-up period, with dates and managers in charge, and budgets for each milestone. The milestone schedule indicates our emphasis on planning for implementation.

The production schedule is based on three shifts. During the first month only one shift will be in operation, in the second month, two shifts, and from the third month, a full three shifts of production. During the start-up period, the employees will be located and trained.

The municipality of Stamford, Texas will assist us in recruiting about seventy employees. There is an adequate work force within the surrounding communities, which will enable us to choose quality people.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

THE MANAGEMENT TEAM ATP’s management team and its consultants are qualified professionals with vast experience with plant installation and operations, purchasing and marketing. ATP’s consultants will be employed during the start-up period (see Start-up table). ATP welcomes any additional person from our investor’s group that can contribute to the success of the company.

Dan R. Radke, President:    SUMMARY OF QUALIFICATIONS

• Dan Radke, the inventor of the unique material for making the RST-PAL Pallets, has been involved in scrap tire recycling issues for ten years by offering his expertise to government agencies, municipalities, individuals and companies wishing to enter the emerging scrap tire recycling industry, Radke has earned a reputation for his knowledge of the scrap tire industry. Assisted States, Counties and Municipalities to remediate scrap tire problems. Contributed to California Integrated Waste Management Board to develop rules, regulations and guidelines for the States scrap tire program.
• Process, technology inventor, business owner and manager, sales, marketing, production line machinery and equipment, business operations, training and management
• More than 30 years owning and operating start-up companies.
• Three years, international business transactions, as a consultant bringing American Companies to Eastern Europe, primarily Hungary to form U.S./Hungarian Joint Ventures.
• Authored the Hungarian Small Business Foundation to establish loan guarantees for privatization and start up Hungarian Small Businesses, working directly with the Hungarian Banks and Government.

Eliezer Banensohn, Vice President:     SUMMARY OF QUALIFICATIONS

• Aeronautical Engineer – B.Sc. degree. Experience in R & D for new products.
• 12 years extensive experience as an expert in marketing of new and revolutionary products in new markets.
• Eight years experience as a specialist in putting up new franchise organizations and licensing operations.
• Won prizes for best business in South-Africa and Argentina (as VP Marketing & Engineering).
• Participated, in engineering capacity, in the development and marketing of revolutionary advanced building system – “Domecrete” in many countries worldwide.
• Participated, in engineering capacity, in the development of Hi-Tech product (Baby-Sense S.I.D.S. detector, medical industry).
• Plant design and Manufacturing experience in plastic, rubber, and metal products, injection molds and machinery. Inventor and patent owner for the product “non-electrical hand operated washing machine”.
• 25 years experience as computer software and hardware analyst.
• 15 years experience in marketing software and hardware computer systems.
• Owned several computer service bureaus using IBM mainframe

Shayne Del Cohen, (Consultant) Public Relations, Government Affairs

• Business and economic development, government relations, grant writing, bid preparation, business trade representations, lobbying, employee relations, training and staff planning.

Gene Pitzer, (Consultant) Machinery & Equipment Acquisitions

• Contract acquisition for machinery and equipment for Stamford, Texas plant, 25 years experience, retired No.1 tool and die manager for General Motors, Owner; Tool Consulting Corporation, developed tire recycling machinery.

Steven Garbukas, (Consultant) Chemical, Epoxy Binder Systems Acquisitions

• Contract acquisition for all special binder systems developed by Dan Radke and Steven Garbukas, source and supply plants with materials at best possible price, provide all injection and delivery systems to material during batching.

Richard Turner, (Consultant) Machinery and Equipment Line Standup, Plant Engineer

• Supervise and install all production line machinery and equipment at the first plant, in Stamford, Texas and all subsequent plants. Initial plant manager, over production and safety, will train employees, including plant manager.

Layne T. Rushforth, (Attorney)

Richard Dickinson, (CPA)

* (Resumes of any of the above people are available on request.)

6.1 Personnel Plan

Our first plant will be located in Stamford, Texas, a rural area close to a large metropolitan city, where large scrap tire stockpiles are located within less than one mile of our plant. The area has a large workforce in desperate need of jobs, which will help ATP recruit qualified and devoted workers, that will be paid more than the average wages for this area, which are less than in more populated areas. The direct labor cost shows that each plant will require approximately 70 workers in three shifts.

The team for the first manufacturing plant is currently being interviewed with the help of Stamford’s Mayor and City Manager. The Personnel table shows the position and salary of the 68 employees that will work in three shifts of eight hours each. Production is based on seven working hours with one hour budgeted for maintenance and crew change. To facilitate training, during the first month one shift will be in operation, in the second month, two shifts and from the third month forward the plant will operate at full production capacity with three shifts.

The Profit & Loss table shows the payroll burden as 23% of the salary, which covers the taxes and benefits for the employees. No increase in wages and salaries have been forecasted, however, it is assumed that as the company grows, employees will receive increases in their wages, salaries and benefits.

The Personnel table shows the direct and active involvement of the company President (the inventor) and the V.P. in all stages of the start up, purchasing of the machinery and running the business. The team includes highly qualified professionals as consultants in different areas that will enable a smooth and efficient entry to production. As the projected expansion takes place, ATP will begin a search for highly qualified management candidates that will manage the company in the future.

ATP will also investigate foreign licensing that will bring additional revenue streams to the company. ATP’s V.P. has already made contacts with foreign entities and has found great interest from foreign companies. Elie (VP) spearheads negotiations for foreign licensing and manufacturing.

The Personnel table for the first 12 months appears in the appendix.

Financial Plan investor-ready personnel plan .">

The projected financial plan is very sound. The one-time investment gives ATP the ability to take 50% of the profits (after tax) as dividends at the end of year two and to self fund expansion by one additional plant per year. The projected cash flow is outstanding and will enable ATP to be even more aggressive in our expansion plans.

As mentioned throughout this Business Plan, each plant will produce a maximum of 100,000 pallets per month, which is very low in comparison to the demand for pallets. (800 million pallets divide by 12 gives approximately an average of 67 million pallets per month sold in the U.S.)

In addition to the expansion within the U.S., overseas licensing projects will be developed, from which we will create additional revenue streams through licensing fees, royalties, and other contractual payments.

ATP may also enter into other joint ventures or partnerships to license other entities to manufacture and market RST-PAL pallets not only in the U.S. but also worldwide.

The last two sources of income are not included in the financial forecast and do not appear in the tables.

7.1 Important Assumptions

The financial plan based on important assumptions, detailed in the following statements:

• Due to the initial limited production in comparison to the market size, ATP assumes that even a slow-growth economy, will not affect our plan for the next five years.
• ATP forecasts that there would be no unforeseen changes in technology to make our products obsolete. Pallet buyers are looking for cost effective solutions for replacing the high cost of purchasing, repairing, and discarding wooden pallets and RST-PAL pallets offer the solution by providing a longer lasting more durable pallet.
• Cash flow is not expected to be a problem, with most pallets being paid for on delivery. There will be exceptions for specific customers, as an example, the U.S. Government, based on the quantity of pallets that are ordered, but generally, payments for pallets will be paid in full upon delivery.
• ATP’s growth is based on internal financial resources. ATP will budget 50% for growth and 50% from the profits as dividends after taxes (from year two forward and as long as it does not affect the planned growth of the company).
• The source of raw material (scrap tires) is virtually endless as long as cars continue to roll on tires. Presently, 250 million tires are added each year to  scrap tire stockpiles all over the country.
• ATP assumes a short holding of inventory beyond the curing time of the pallets and transportation arrangements.
• ATP assumes a 5% annual raise in our selling price, which is comparable to the wooden pallet industry and fluctuating lumber costs. 
• ATP assumes no raise in our material costs, because the quantities we purchase will increase, and ATP anticipates discounts to offset any increased costs.
• ATP assumes an average sales price per pallet in the first year of production to be $18.50, which is significantly less costly than hardwood pallets whose entire cost includes purchase, repair, maintenance, and discard/disposal.

7.2 Break-even Analysis

This break-even analysis shows that ATP has budgeted fixed costs and projects sufficient sales to maintain good cash flow balances. This projection is based on two production lines.

The essential insight here is that ATP’s projected sales levels will be running comfortably above the break-even point.

7.3 Projected Profit and Loss

NOTES TO PROJECTED FINANCIAL STATEMENTS

NOTE 1 – MATERIALS COST The raw materials, recycled scrap tire rubber, will be provided on an as needed basis. No large stockpiles of material or inventories of recycled rubber shall be stored at the manufacturing site.

The main ingredient of an RST-PAL pallet is recycled scrap tire rubber that has been processed to specific dimensions. There is three million tons of scrap tire shredded rubber on the ground in Texas with ten permitted processors or tire shredders, which want to provide material to ATP.

ATP will purchase scrap tire rubber from a Stamford, Texas processor, and has estimated the cost of material at $1.25/pallet ($50 per ton). It should be noted that ATP is working closely with the Texas Natural Resource and Conservation Commission and ATP may even have an opportunity to acquire surplus scrap tire rubber for less costs. Texas now produces approximately 200,000 tons of scrap tire rubber annually. In addition, the current Texas Legislature is considering paying manufacturers of products using recycled scrap tire rubber, $0.75 per pallet ($30 per ton) as an incentive to increase production of products using scrap tire rubber.

A small amount of recycled plastic is utilized in the formula and its cost is estimated at $0.90 per pallet. In addition a secret formulated binder, developed by the inventor Dan Radke, is used in the manufacture of the pallets, estimated to cost $6.50 per pallet.

NOTE 2 – DIRECT LABOR (Production Payroll) and PAYROLL BURDEN Projected Direct Labor includes the salary and wages for those employees directly involved in the pallet production process in the plant and is reflected in Topic 6.1. Payroll burden is estimated at 23% (FICA 6.20%; Medicare 1.45%; FUTA .80%; State Unemployment 3.00%; Workers Compensation and Employee Health Benefits 11.55%).

The total Direct Labor cost includes payroll burden and other direct costs such as utilities, building repairs and maintenance, plus plant supplies estimated at 5%. The total for direct labor cost and payroll burden per pallet is estimated at $1.31.

NOTE 3 – ROYALTIES The Licensing Agreement requires payment of 5% of gross sales to Mr. Radke, the inventor, as royalties. This may be paid quarterly or monthly (5% has been used throughout these projections). There will be no royalties for the first six months of production to help the cash flow of the company.

NOTE 4 -GENERAL & ADMINISTRATIVE WAGES AND PAYROLL BURDEN The company will employ Management and clerical staff as appears in the Personnel table, Topic 6.1. Additional management members and marketing representatives will be added as needed throughout the growth of the company. Payroll burden estimated at 23% including taxes, W/C, health and employee benefits. During the six-month start-up phase and thereafter, the company will employ experts in the industry as consultants.

NOTE 5 – DEPRECIATION Machinery and equipment is being depreciated over 10 years, property over 30 years.

NOTE 6 – OFFICE EXPENSES Provision has been made for estimated general office expenses. Computers and office equipment costing $15,000 is included in the initial start-up budget and Expensed Equipment. The amount budgeted for Year One is $12,000, which will increase at the rate of $12,000 per year with each additional plant.

NOTE 7 – MARKETING and SALES Management anticipates strong demand for the RST-PAL pallets creating a real challenge for production to keep up with the demand. Back orders are expected and sales on advanced production should drive expansion. With many potential pallet users identified, who currently use from 100,000 to 7 million pallets annually, we will approach the expansion of our national sales force, carefully. ATP does not want a large sales force with production sold out for months in advance. A budget in this category will be used for sales representatives or commissions on sales and is budgeted at $73,000 during year one. Based on attendance at conventions and trade shows it is anticipated that our targeted Dallas – Fort Worth Metropolis, Houston, San Antonio and the rest of Texas will absorb all our production for many years.

A Marketing Director shall develop goals and strategies with the board of directors. ATP plans to hire a qualified director in year one. Sales representatives will be hired and it is anticipated they will receive a base salary with commissions of ten cents per pallet sold. The budget takes these assumptions into consideration.

NOTE 8 – MACHINERY MAINTENANCE The initial production line machinery will be in good working order, nevertheless, ATP will plan for parts maintenance and replacement. This budget grows as more machinery and plants are established.

NOTE 9 – TAXES The “taxes incurred” appearing in the P&L represents State of Texas Franchise taxes and Federal Income Taxes for a total of 34%.

The Profit and Loss table for the first 12 months appears in the appendix.

7.4 Projected Cash Flow

The table presents our projected cash flow balances. The critical first year reflects positive cash flow. Monthly cash flow is positive and more important the balances are positive, which indicates adequate financial reserves and correct planning of the required working capital. The estimated results permit a margin of error and still appear strong, even though the numbers remain conservative.

ATP intends to distribute dividends to its shareholders in a way that will enable the continuation of the expansion of the company according to this Business Plan. ATP estimates that from year two forward 50% of the profit (after tax) will be distributed to the shareholders. The Board of Directors will determine any other distributions to be made on an annual basis.

The following chart shows the cash availability for the next 12 months. The bar labeled “Cash Balance” shows our projected cash balance for the first 12 months of the project and it is adequate (above zero). The second set of bars, labeled “Net Cash Flow”, indicates the change in the Cash Balance for each month.

7.5 Projected Balance Sheet

The Projected annual financial balances are shown in the following table. The balances for the first 12 months are presented in the appendix.

7.6 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 2448, Wood Pallets and Skids, are the closest available and are shown for comparison. ATP’s patented technologies are so new, that there is no SIC code that directly applies.

7.7 Long-term Plan

In addition to the enclosed financial information contained in this Business Plan, ATP would like to make the following observations that were not emphasized in this Business Plan:

The Business Plan covers five years of activities. We consider the financial projections in the Business Plan as conservative. As an example; since July 2002, (the date the patent was issued), ATP’s Vice President, Elie Banensohn has traveled to several European countries and has met with representatives of companies from the Far East. These companies recognize the value of RST-PAL pallets and have shown an interest in licensing the technology in order to manufacture and market the pallets in their countries (in some cases with our participation). The Business Plan does not include any income from licensing fees or royalties from foreign entities. Scrap tire problems exists everywhere and is even more acute in Europe and the Far East as they have less space for storage and less scrap tire processing technology than the U.S.

Revenues include some benefits from State or Federal level subsidies or grants for helping to clean up scrap tire problems, which are available. There are States that are offering participation in funding new companies using scrap tire rubber. ATP and its Board of Directors believe that demand for RST-PAL pallets may cause expansion plans to be reviewed and changed, assuming demand will be high. After initial exposure of RST-PAL pallets to the market, additional plants may need to be installed sooner than the company growth plan calls for.

As previously mentioned, a division or subsidiary of ATP will be proposed to manage the pallet leasing aspect of sales, which will afford pallet users the option to change over their entire inventories of wooden pallets to RST pallets on a “lease to purchase” plan. ATP anticipates substantial revenues and success in the pallet leasing market.

1. Why did you choose Stamford, Texas as your first location?

• One of the largest piles of shredded scrap tires in Texas is located in Stamford. The quantities of raw material in this pile are enough for ten years of full production.
• The state of Texas pays for making final products from the scrapped tires about $30 per ton (approximately $0.75 per pallet).
• In the area of DFW (about a radius of 150 miles around) the yearly consumption of new pallets is about sixty million.
• The local municipality is very helpful. Rural America has unemployment problems. Therefore the local authorities have offered to subsidize the plant for our production lines, by enabling us to use a new existing building of 60,000 sq.ft. with all the facilities including: offices, rest rooms, electricity, air conditioning, boiler system etc. and the property is located on seven acres with the building which can be used for storing and loading pallets and employee parking, all offered with great terms and conditions.
• The location of this plant is less than one mile from the scrap tire pile.

2. If your plant is in Texas why is your headquarters is in Las Vegas? As can be seen from our Business Plan, ATP expects to open four plants in the next five years. These plants will be in different states. Las Vegas was chosen as our corporate headquarters because of the following reasons:

• Las Vegas is also a popular tourist destination for business people throughout the world. Vegas has excellent airline connections, which offers a real opportunity to bring executives to visit and learn more about RST-PAL pallets and how it will positively affect their company profits.

3. Is there any financial help from the State administration in putting up the plant in their State? There are several States, among them Louisiana and New Jersey that are giving up to 80% of the capital cost of putting up a plant that will utilize scrap tires. The problem of scrap tires is enormous and exists in most states. Most states have scrap tire programs to deal with the remediation of scrap tires.

4. Are there any federal laws regarding the use of recycled products? Yes, all Federal Agencies, including the Department of Defense and Department of Transportation are mandated to use “recycled products first”. Our product is made from recycled materials and is very strong and durable and is acceptable for Government use due to its life cycle being much longer than a traditional wooden pallet, and the price of a RST-PAL pallets is very competitive.

5. How does the production of pallets made from scrap tires helps the ecology? The RST-PAL pallet is an environmentally correct product made from recycled materials that can be recycled itself, making it a “triple green product”. First, according to statistics published by NWPCA (National Wooden Pallet and Container Association) the U.S. consumption of pallets is 800 million per year. To make this huge quantity of pallets, 3.5 million trees are cut every year. Every RST-PAL pallet sold will help to save our forests, allowing hardwoods to be used for more important and valuable uses other than pallets.

Second, getting rid of the scrap tire piles is a worldwide problem. This problem is even more acute in Europe and the Far East. Each year in the U.S. 250-280 million tires are added to the existing stockpiles of scrap tires. These piles are environmental hazards as they can become disastrous tire fires and are breeding grounds for mosquitoes (which bring diseases such as the West Nile Virus), rodents, snakes, and other vermin.

6. Are the projections in ATP’s Business Plan “Too good to be true”? ATP believes that the projections, although they are very positive, are conservative. We also believe our biggest challenge will be keeping up with the production needed to meet the demand for our pallets. When a company evaluates the annual cost of their wooden pallets, including; purchase, repair, replacement, and discarding costs versus the one time purchase price of RST-PAL pallets, they will see tremendous savings in buying and using RST-PAL pallets.

Regarding the financial forecasts, ATP has purposely left out several positive issues. For example, the cost of recycled rubber (cut and prepared for our use) is $1.25/pallet. This cost can be reduced drastically by purchasing a special machine (Grizli) and cutting the tire shreds to our specific dimensions. The price of the machine can be recovered within one year of production. Additionally, the most expensive cost in making our pallets is the binder system, $6.50/pallet. Our projections do not take into consideration the savings of using even less binder per pallet which will be achieved by utilizing the new production line machinery, with a different delivery system. We estimate a minimum saving of 25% on our projected costs when we will buy the raw material and batch it ourselves.

Additional savings will be achieved by getting larger discounts as the volume of materials purchased increases.

Other potential revenue streams that are not projected include licensing ATP technology to foreign countries to manufacture and market RST-PAL pallets. In addition ATP anticipates opening a subsidiary company to provide pallet leasing or a lease to purchase program for our customers to enable them the opportunity to convert their wooden pallet inventory to RST-PAL pallets at an accelerated pace.

7. How are the scrap tires used today? Only a small portion of scrap tires are recycled or used today. The main use (about 30%) is adding crumb rubber to asphalt for making roads. Other products that are made of scrap tires are: car floor mats, playground filler, floor tiles and some other soft products which do not need strength or rigidity of the final material. Scrap tire piles continue to accumulate all over the country and constitute dangerous environmental hazards.

8.What is the real market potential and what is the risk if the users do not accept the pallets? As previously stated, of the 800 million pallets manufactured each year, about 60% are made from hardwood. Our product replaces the hardwood pallets, and if you look at our 5-year projection, we will produce approximately 19 million pallets while in the same 5 years the pallets industry will produce 2.4 billion hardwood pallets, which means we will capture, within 5 years, about 0.8% (less than 1%) of the total pallet market.

ATP surveyed the acceptance of RST-PAL pallets through pre-production marketing efforts and it was excellent. We visited 62 pallet users in the DFW area. All of the companies were impressed with the RST-PAL pallets made from this unique and patented “new material” from recycled scrap tires. Many stated that they would use the pallets once we had a production facility. They were especially impressed that our pallets were stronger and more durable than wooden pallets and would perform much longer than wooden pallets. NWPCA states, “wooden pallets last from 1.5 to 2 trips before having to be repaired or replaced.” We also visited with the buyer of pallets for 3M company in Minneapolis, and the buyer was very eager to use RST-PAL pallets. 3M purchases more than 7 million pallets in just one year. ATP also contacted, through the Department of Defense, the Army, Air Force PX and Exchange, AAFAS. They actually wanted us to deliver 50,000 pallets as an initial order but unfortunately we were not in production.

9.Can you show us orders from companies that were interested in using your pallet? No. As we have not begun production, we cannot guarantee that ATP will be able to deliver pallets on a specific date, and so we have not accepted any orders. As the projected calculation shows tremendous savings to the user, and as RST-PAL pallets have so many advantages in comparison to wooden pallets and at a competitive price, ATP believes that when production commences, pallets will be immediately accepted. Some of the users we visited were surprised that the price was so low in relation to the performances of RST-PAL pallets.

10. What are the technical properties of the pallets and which tests have already done? The technical data and the tests results are as follows:

• RST-PAL pallets are both rackable and stackable, and pass ISO standards.    
• The RST-PAL pallets have the same parameters as hardwood pallets, including two or four way entry, and meet GMA pallet standards.
• Weight: 40″x48″, four way GMA pallet, hardwood=65 lbs; RST-PAL=71 lbs. The difference in weight disappears after the wood starts absorbing water/liquids.
• The deflection of a pallet with our material, according to ISO when R=1500KG, is about zero (actually equal to the deflection of metal under the same load). 
• A test was conducted with 3 concrete beams weighing 25 tons (51,000 lbs), which were loaded and lifted onto an RST-PAL pallet. In comparison, wooden pallets have a static weight load of 2,500 pounds.

In conclusion, this is not a high precision, high tech product — it is a strong and durable pallet with excellent material qualities and is offered to pallet users at a very competitive price, which will save pallet buyers bottom line profits.

11. Usually, as production increases, the price normally decreases (mainly because of competition). In your B.P. the price is increased. Please explain? Actually, part of the answer is in the question. There is no competition. Hardwood is a commodity and its price changes constantly with lumber prices (which continue to increase annually). Our increase in price takes this fact into account. The raise in prices, as appears in our projections, of 25% during the next five years is probably less than the increase in the cost of hardwood. Another reason is that our initial price is very low, designed so that ATP can penetrate different markets rapidly.

Most key pallet purchasers that we talk with, think we are vastly under priced for a pallet that is so durable and lasts so long. Some believe RST-PAL pallets should be in the $39.00-$59.00 price range (similar to plastic pallets), and not just a few dollars more than hardwood pallets. ATP assumes that for many years (due to patent protection) RST-PAL pallets will not have competitors, which can often drive the price down. The assumption is that the advantages of RST-PAL pallets over hardwood pallets will cause pallet users to purchase RST-PAL pallets to lower their pallet costs. Following RST-PAL pallets becoming established in the market place, the advantages and the savings will be widely recognized and there will be justification for further price increases.

The opening price of $18.50 is an average price and not applicable to all sizes nor to all customers. Certainly, a customer purchasing 500,000 pallets per year will be given a discount different from a customer purchasing 1,000 pallets.

The Board of Directors will re-visit the $18.50 price as sales develop. Our projected low price is intended to introduce the pallet to many different manufacturers and industries that use pallets, targeting those companies with a closed loop system that can use, retrieve and use over and over again the same durable pallets.

12. Everything seems so good, what is the down side to this project? ATP believes that according to the projections, the only downside is our start-up production capacity. ATP knows that it will capture the small percentage of less than 1% of the total market demand. The projection shows that this 1% of the market will enable both growth from profits to fund expansion and a good return in the form of dividends for its investors.

RST-PAL pallets are heavier, by about 8 lbs, than the equivalent size pallet made of hardwood. This is true only at the beginning of the lifecycle of a wooden pallet as wood absorbs water and other liquids and can become even heavier than RST-PAL pallets. An average 40′ truck trailer carries about 22 loaded pallets, and by using RST-PAL pallets the total added weight is less than 200 lbs, which is not significant.

13. Is your patent defendable and what does it actually protect? The patent was approved and issued in July 2002. It took about five years to perfect and to reach the utmost protection possible. It protects any product made from recycled scrap tire rubber using a plurality of sizes with or without other materials like plastic, adhesives etc.

14. Who has the exclusivity to utilize this patent? The total and irrevocable exclusivity was granted to ATP Corporation, which consists of the new investors and the existing partners. This exclusivity includes licensing to other parties worldwide for the manufacturing and marketing of RST-PAL pallets.

15. It appears that you are looking for investment of $4M to $6M. Elaborate. These two numbers express the difference between starting with one line of production vs. two lines. The basic set of machines needed for production can be extended to two lines with addition of some machines. By starting with two lines, the production capacity is doubled to 1.2M pallets per year with net profit projected of over $8M versus $3.2M if ATP opens with a single line.

16. How will the investor’s capital be used? A detailed start-up expenses and funding table can be found in Topic 2.2. The main expense item is for machinery and in both cases about $750,000 remains as working capital.

17. What equity percentage are you offering for the investment? The calculation of the present value of the company based on the projections appears in the business plan. The present value of five years of net earnings at 25% discount is over $100 million. We deliberately took an unreasonably high discount rate to avoid any disputes.

We value our company at “present value” of just over $17M. Hence, for the $6 million investment; we offer 35% of the company with all its rights.

18. Is there any other way of financing the project? Yes. We would accept a loan, secured by the assets and rights of ATP, which will carry interest of 5% for a period of ten years starting (the repayment) at the beginning of the second year. The return can be accelerated.

In addition to the secured note, the lender will be offered 17.5% equity interest for a loan of $6 million.

19. Who is ATP’s management team? See Chapter 6.0 of the Business Plan. Each member of the team along with our consultants, are highly qualified professionals with vast and proven experience in their fields (e.g. plant installation and operations, purchasing and marketing). ATP is also open to investor participation both in the company and on the Board of Directors.

The financial projections that appear in this Business Plan are estimated revenues, expenses, and cash flow, which are based on research and the assumptions discussed throughout this Business Plan. They represent the best of management’s knowledge and belief and also are based on actual operations in the pilot plant in Stamford, Texas. The Company’s expected revenues, expenses, and cash flow for the projected periods are subject to the Company’s ability to develop sales and production levels at the price and costs estimated by management. Accordingly, these projections reflect management’s estimates as of January-June  2003, and its expected course of action if such sales and production levels are attained at the price and costs anticipated.

These projected financial statements are for the purpose of providing updated information to existing and new investors. These projected financial statements should not be considered to be a presentation to forecast future results. Accordingly, these projections may not be useful for other purposes.

The assumptions disclosed herein are those that management believes are significant to the projections. Furthermore, even if the sales and production levels as well as the projected price and costs are attained, there will usually be differences between projected and actual results because events and circumstances frequently do not occur as expected, and those differences may be material.

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Pallet Manufacturing Business

Back to All Business Ideas

How to Start a Pallet Manufacturing Business

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on April 21, 2022 Updated on March 13, 2024

Investment range

$27,550 - $1,309,100

Revenue potential

$312,000 - $1.25 million p.a.

Time to build

3 – 6 months

Profit potential

$63,000 - $250,000 p.a.

Industry trend

Many industries use pallets for assembling, storing, handling, and transporting products. The pallet, usually made of wood, provides a base and helps protect products, which is why the US pallet industry has expanded nearly 50% in the past decade. There are two ways to get in on this trend with your own pallet manufacturing business. You can either purchase a factory and expensive production equipment, which will cost upwards of $1 million, or you can collect discarded pallets, then repair and sell them as eco-friendly recycled pallets. 

Whichever route you choose, you’ll need to first learn how to start a business. Luckily, this step-by-step guide details the entrepreneurial process required to get a successful pallet manufacturing business off the ground. 

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a pallet manufacturing business has pros and cons to consider before deciding if it’s right for you.

• Good Money – Pallets sell for $40 each and usually in large quantities
• Large Market – Pallets are used across multiple industries
• Repeat Business – Pallets wear out and need to be replaced
• High Startup Costs – Building a factory costs big money
• Crowded Market – Compete with many pallet manufacturers

Pallet manufacturing industry trends

Industry size and growth.

• Industry size and past growth – The US wood pallets and skids production industry is worth $11.9 billion in 2022 after expanding by nearly 50% since 2012.(( https://www.ibisworld.com/industry-statistics/market-size/wood-pallets-skids-production-united-states/ )) 
• Growth forecast – The US wood pallets and skids production industry is projected to grow less than 1% in 2022. 
• Number of businesses –  In 2021, 2813 wood pallets and skids production businesses were operating in the US.(( https://www.ibisworld.com/united-states/market-research-reports/wood-pallets-skids-production-industry/ )) 
• Number of people employed –   In 2021, the US wood pallets and skids production industry employed 62,441 people. 

Trends and challenges

Trends in the pallet manufacturing industry include:

• Plastic pallets are a growing segment of the industry because they are more durable and resistant to contamination. They are more expensive, but they can be used for a much longer period of time. This is an opportunity for an entrepreneur to get in on an emerging market by choosing to manufacture plastic pallets, although it would require an investment in more sophisticated equipment.
• Many retailers are moving to smaller format stores which require moving smaller product loads, leading to increased demand for smaller, narrower pallets. 

Challenges in the pallet manufacturing industry include:

• Growing demand plus labor shortages and supply-chain issues have slowed pallet production, leading to a shortage and sharply increased pallet prices. 
• Wood prices have risen drastically, cutting into the profit margins of pallet manufacturers. 

How much does it cost to start a pallet manufacturing business?

If you start a recycled pallet manufacturing business, you’ll spend around $28,000. Costs include the deposit and rent on a manufacturing space, tools to repair pallets, a down payment on a truck, and an initial operating budget. You should be able to gather a steady supply of old and unwanted pallets for free from businesses that want them hauled away. 

To start a new pallet manufacturing business, you’ll spend $1.3 million or more. The largest expense will be the assembly line machinery necessary to manufacture new pallets. 

You can take online courses about how to build pallets on the National Wood Pallets and Containers website by signing up for an account. There is no cost and you can complete all the courses within a few days. 

You’ll need a handful of items to successfully launch your pallet manufacturing business, including: 

• Air compressor
• Nailing equipment
• Pallet repair workstations
• Heat treating equipment

How much can you earn from a pallet manufacturing business?

These calculations will assume that you’re starting a recycled pallet manufacturing business. You should be able to sell recycled pallets for about $30 each. Your profit margin after rent, overhead, and labor should be about 20%. 

In your first year or two, you could sell 200 pallets a week bringing in $312,000 in annual revenue. This would mean nearly $63,000 in profit, assuming that 20% margin. As your business gains traction, you could scale up and sales could climb to 800 pallets per week. With annual revenue of $1,250,000, you’d make a cool quarter-million dollars.

What barriers to entry are there?

There are a few barriers to entry for a pallet manufacturing business. Your biggest challenges will be:

• The startup costs and obtaining funding
• The competition from big pallet manufacturers
• Finding and renting an adequate space and hiring employees

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Step 2: hone your idea.

Now that you know what’s involved in starting a pallet manufacturing business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research pallet manufacturing businesses in your area to examine their products, price points, and what sells best. You’re looking for a market gap to fill. For instance, maybe the local market is missing a wood pallet recycling business or a plastic pallet business.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as custom pallets made from old wooden pallets.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products or services

You’ll want to offer various sizes of pallets for different purposes. You could also make custom pallets to a customer’s size specifications. 

How much should you charge for pallets?

You should be able to sell recycled pallets for about $30 each. Your expenses will be for rent, overhead, and labor. You should aim for a profit margin of about 20%. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be any business that uses pallets. This includes production and manufacturing facilities and big box stores like Home Depot. You can find business owners and managers on LinkedIn, or search for relevant businesses on Google and Yelp and give them a call. 

Where? Choose your business premises

You’ll need to rent a space for a manufacturing facility. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Pallet Business Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “plastic pallets” or “recycled pallets”, boosts SEO
• Name should allow for expansion, for ex: “PalletNation” over “BoxBoard Pallets”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Pallet Manufacturing Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: A brief summary of the pallet manufacturing business plan, highlighting its key points and objectives.
• Business Overview: An overview of the pallet manufacturing business, including its history, mission, and vision.
• Product and Services: A description of the pallets and related services offered by the business, including their features and benefits.
• Market Analysis: An analysis of the target market, including size, demographics, and trends in the pallet industry.
• Competitive Analysis: Examination of competitors in the pallet manufacturing industry, identifying strengths and weaknesses.
• Sales and Marketing: Strategies for selling and promoting pallets, detailing sales channels, pricing, and marketing plans.
• Management Team: Profiles of key team members and their roles in the business.
• Operations Plan: An outline of the day-to-day operations and processes for manufacturing and delivering pallets.
• Financial Plan: Financial projections, including revenue, expenses, and funding requirements.
• Appendix: Supplementary materials, such as charts, graphs, and additional documentation supporting the business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to pallet manufacturing businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your pallet manufacturing business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Venture capital: Venture capital investors take an ownership stake in exchange for funds, so keep in mind that you’d be sacrificing some control over your business. This is generally only available for businesses with high growth potential.
• Angel investors: Reach out to your entire network in search of people interested in investing in early-stage startups in exchange for a stake. Established angel investors are always looking for good opportunities. 
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a pallet manufacturing business. You might also try crowdfunding if you have an innovative concept. As your business gets larger, and you’re poised for high growth, you may be able to attract angel investors or venture capital. 

Step 8: Apply for Business Licenses and Permits

Starting a pallet manufacturing business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your pallet manufacturing business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as Fishbowl , Katana , or MRPeasy , to manage your processes, inventory, invoicing, and payments. 

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Starting a pallet manufacturing business requires a solid marketing approach to attract customers and establish a strong presence in the industry. Here are some effective strategies to help you get started:

• Target Local Industries: Identify and approach local businesses in industries such as logistics, manufacturing, and agriculture, where pallets are a critical component. Establish partnerships and offer tailored solutions to meet their specific pallet needs.
• Quality Assurance and Certifications: Emphasize the quality of your pallets and obtain industry-standard certifications. Assurance of durable and compliant pallets will not only attract customers but also build a reputation for reliability.
• Customization for Niche Markets: Explore niche markets by offering specialized pallets tailored to unique industry requirements. Highlighting your ability to provide customized solutions can set you apart from competitors.
• Green Initiatives: Promote eco-friendly practices by using sustainable materials and efficient production processes. Many businesses are increasingly prioritizing environmentally conscious suppliers, providing a competitive edge.
• Educational Content: Create informative content about the importance of pallets in supply chain management, emphasizing cost-efficiency and logistics optimization. This can position your business as an industry expert and attract potential clients.
• Participate in Trade Shows: Attend industry trade shows and exhibitions to showcase your products. This provides an opportunity to connect with potential clients, network with other businesses, and stay updated on industry trends.
• Customer Referral Programs: Implement a customer referral program to encourage existing clients to recommend your services to others. Word-of-mouth referrals can be a powerful and cost-effective way to expand your customer base.
• Strategic Alliances: Form partnerships with complementary businesses in the supply chain, such as packaging companies or transportation services. Collaborative efforts can result in mutual benefits and increased exposure.
• Online Presence Beyond a Website: Utilize social media platforms and online marketplaces to showcase your products. Engage with the community through regular posts, sharing industry insights, and participating in relevant discussions.
• Efficient Logistics and Delivery: Streamline your logistics and delivery processes to ensure timely and reliable service. Offering efficient distribution of your pallets can enhance customer satisfaction and build long-term relationships.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your pallet manufacturing business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your pallet manufacturing business could be: 

• Save the planet by using our heat-treated recycled pallets
• Custom pallets built to your specifications
• Durable plastic pallets that last a lifetime

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a pallet manufacturing business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in pallets for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in pallets. You’ll probably generate new customers or find companies with which you could establish a partnership.

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a pallet manufacturing business include:

• Manufacturing Workers – build or repair pallets for resale
• Salespeople – make sales to local businesses
• General Manager – staff management, inventory management, accounting
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Pallet Manufacturing Business – Start Making Money!

Pallets are widely used by all types of businesses, which is why the US pallet market is growing fast. Starting a pallet production business is extremely expensive, but you can focus on recycling pallets for far less. You can expand your facilities in the future and grow into a major company. Even with a small business, you can make good money. 

Now that you understand the entrepreneurial processes, you’re ready to get your successful pallet manufacturing company off the ground!

• Pallet Manufacturing Business FAQs

Yes, pallet manufacturing can be very profitable. The key is to develop relationships with companies that use pallets to get a steady stream of repeat business. 

The average price for a recycled pallet is about $30. Prices will depend on the size. You should also check local market prices to make sure that you’re competitive.

The pallets that pay the most vary depending on factors such as the type of industry, the condition of the pallets, and market demand. Generally, pallets made of higher-quality materials like hardwood tend to have a higher value than those made of softwood or plastic.

The largest users of pallets are typically industries involved in logistics, warehousing, manufacturing, and retail. This includes sectors such as food and beverage, consumer goods, automotive, pharmaceuticals, and e-commerce.

The standard pallet size in the US is typically 48 inches by 40 inches. This size is widely used in various industries for efficient handling, transportation, and storage purposes. However, there are other pallet sizes used for specific applications or industries.

The best type of pallet depends on specific needs and requirements. Different industries and supply chains have different demands. Common types of pallets include wood pallets (hardwood or softwood), plastic pallets, and metal pallets.

CHEP (Commonwealth Handling Equipment Pool) is one of the largest pallet companies in the US. They are a global leader in pallet and container pooling services, providing reusable pallets and containers to various industries worldwide.

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Pallet Business Name
• Create a Pallet Manufacturing Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Pallet Manufacturing Business - Start Making Money!

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Creating a business plan is essential for any business, but it can be especially helpful for waste management and recycling businesses who want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every waste management and recycling business owner should include in their business plan.

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What is a Waste Management and Recycling Business Plan?

A waste management and recycling business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Waste Management and Recycling Business Plan?

A waste management and recycling business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Waste Management and Recycling Business Plan

The following are the key components of a successful waste management and recycling business plan:

Executive Summary

The executive summary of a waste management and recycling business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your waste management and recycling company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your waste management and recycling business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your waste management and recycling firm, mention this.

You will also include information about your chosen waste management and recycling business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a waste management and recycling business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the waste management and recycling industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a waste management and recycling business’ customers may include:

• Businesses that need to dispose of or recycle waste
• Individuals who need to dispose of or recycle waste
• Government agencies that regulate waste management and recycling businesses

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or waste management and recycling services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your waste management and recycling business may have:

• Specialized experience in the waste management and recycling industry
• Strong relationships with customers and suppliers
• Cutting-edge technology and equipment
• Well-trained employees
• Proven business model

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, or launch a direct mail campaign. Or you may promote your waste management and recycling business via word-of-mouth.

Operations Plan

This part of your waste management and recycling business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a waste management and recycling business include reaching $X in sales, adding new products or services, building a new facility, or hiring additional staff.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific waste management and recycling industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Waste Management and Recycling Business

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Waste Management and Recycling Business

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup waste management and recycling business.

Sample Cash Flow Statement for a Startup Waste Management and Recycling Business

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your waste management and recycling company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

A well-crafted business plan is an essential tool for any waste management and recycling company. Now that you understand the importance of a business plan for your waste management and recycling company, as well as the key components to include, you are ready to get started.  

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