recycling business plan doc

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

Related Posts:

• eWaste Recycling Business Plan [Sample Template]
• Tire Recycling Business Plan [Sample Template]
• Scrap Metal Recycling Business Plan [Sample Template]
• Pet Bottle Recycling Business Plan [Sample Template]
• Medical Waste Management Recycling Business Plan [Sample Template]

Upmetrics AI Assistant: Simplifying Business Planning through AI-Powered Insights. Learn How

• AI ASSISTANTS

Upmetrics AI Your go-to AI-powered business assistant

AI Writing Assist Write, translate, and refine your text with AI

AI Financial Assist Automated forecasts and AI recommendations

• TOP FEATURES

AI Business Plan Generator Create business plans faster with AI

Financial Forecasting Make accurate financial forecasts faster

Strategic Planning Develop actionable strategic plans on-the-go

AI Pitch Deck Generator Use AI to generate your investor deck

See how it works  →

AI-powered business planning software

Very useful business plan software connected to AI. Saved a lot of time, money and energy. Their team is highly skilled and always here to help.

- Julien López

• BY USE CASE

Starting & Launching a Business Plan your business for launch and success

Validate Your Business Idea Discover the potential of your business idea

Secure Funding, Loans, Grants Create plans that get you funded

Business Consultant & Advisors Plan with your team members and clients

Business Schools & Educators Simplify business plan education for students

Students & Learners Your e-tutor for business planning

• Sample Plans
• WHY UPMETRICS?

Reviews See why customers love Upmetrics

Customer Success Stories Read our customer success stories

Blogs Latest business planning tips and strategies

Strategic Planning Templates Ready-to-use strategic plan templates

Business Plan Course A step-by-step business planning course

Ebooks & Guides A free resource hub on business planning

Business Tools Free business tools to help you grow

• Sample Business Plans
• Manufacturing & Wholesale

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.

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

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 .

Related Posts

EV Charging Business Plan

Renewable Energy Business Plan

10 Key Components of a Business Plan

Best AI Business Plan Generator Tools

Good Milestones for a Business

Steps to Create a Business Plan Presentation

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

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Popular Templates

Create a great Business Plan with great price.

• 400+ Business plan templates & examples
• AI Assistance & step by step guidance
• 4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

Plastic Recycling Business Plan Template & Guidebook

Plastic recycling is a booming industry globally as sustainability is becoming more and more important. Having an effective business model is essential to be able to make profit while helping the environment at the same time. If you're just starting out in plastic recycling this sample business plan template will help you understand how to write a business plan for your plastic recycling business with tips from experts on how to improve your business plan in the future.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Plastic Recycling Business [11 Steps]
• 10+ Best & Profitable Plastic Recycling Business Ideas [2023]
• 25 Catchy Plastic Recycling Business Names:
• List of the Best Marketing Ideas For Your Plastic Recycling Business:

How to Write a Plastic Recycling Business Plan in 7 Steps:

1. describe the purpose of your plastic recycling business..

The first step to writing your business plan is to describe the purpose of your plastic recycling business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a plastic recycling business:

Our purpose at Plastic Recycling Co. is to provide a sustainable solution for plastic waste, by collecting, recycling, and repurposing plastic materials. Our mission is to become the leading provider of plastic recycling services in the region, offering a range of services to suit every need. We are committed to using only the latest and most effective recycling technology, and to providing exceptional customer service, with knowledgeable and friendly staff who can help customers understand their options and make the best choices for their needs. We aim to provide a safe, clean, and efficient working environment for our employees and contractors, and to deliver exceptional results that exceed our customers' expectations. We believe that everyone has a responsibility to protect the environment, and we strive to help our customers do their part through our plastic recycling services.

2. Products & Services Offered by Your Plastic Recycling Business.

The next step is to outline your products and services for your plastic recycling business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your plastic recycling business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your plastic recycling business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your plastic recycling business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a plastic recycling business?

To run a plastic recycling business, you will need a few key pieces of equipment, supplies, and permits. These include:

• Plastic recycling machines and equipment
• Transportation and storage equipment
• A permit to operate your business (depending on location)
• Business licenses and permits for business activities (if applicable)

You may also need to hire and train staff to manage the plastic recycling process and provide customer service.

5. Management & Organization of Your Plastic Recycling Business.

The second part of your plastic recycling business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your plastic recycling business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Plastic Recycling Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a plastic recycling business varies based on many different variables, but below are a few different types of startup costs for a plastic recycling business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your plastic recycling business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your plastic recycling business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your plastic recycling business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Plastic Recycling Business Plans:

Why do you need a business plan for a plastic recycling business.

A business plan is a document that outlines the goals and objectives of a business, as well as the strategies and tactics that will be used to achieve those goals. It is important to have a business plan for your plastic recycling business because it helps to focus the efforts of the company, communicate the business's goals and objectives to potential investors, and provide a roadmap for the business to follow. Additionally, a business plan can be used to help secure funding from investors or lenders, who will want to see that the business has a solid plan in place before they provide funding.

How to write a business plan for your plastic recycling business?)

To build a business plan for your plastic recycling business, start by researching your industry, competitors, and target market. Use this information to define your business's goals and objectives, as well as the strategies and tactics that you will use to achieve those goals. Next, create a financial plan that outlines your projected income, expenses, and profit. This should include a projected income statement, cash flow statement, and balance sheet. Once you have all of this information, you can use it to create a comprehensive business plan that outlines the goals and objectives of your business, as well as the strategies and tactics that you will use to achieve those goals. A well-written plastic recycling business plan contains the following sections: Purpose, Products & Services, Marketing Plan (including Marketing Strategy), Operations/Management Plan (including Operations/Management Strategy), Financial Plan (including Financial Forecasts), and Appendixes.

Can you write a plastic recycling business plan yourself?

Yes, you can write a plastic recycling business plan yourself. Writing a business plan is a valuable exercise that can help you clarify your business idea, identify potential challenges and opportunities, and develop a roadmap for success. While there are many resources and templates available to help you write a business plan, the process of creating one is ultimately up to you.

Related Business Plans

Home Inventory Business Plan Template & Guidebook

Home Inspection Business Plan Template & Guidebook

Home Decor Business Plan Template & Guidebook

Health And Wellness Business Plan Template & Guidebook

Hauling Business Plan Template & Guidebook

Hardware Business Plan Template & Guidebook

Handyman Business Plan Template & Guidebook

Hair Extension Business Plan Template & Guidebook

Handbag Business Plan Template & Guidebook

I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

Free Download

Plastics Recycling Business Plan Template

Download this free plastics recycling business plan template, with pre-filled examples, to create your own plan..

Or plan with professional support in LivePlan. Save 50% today

Available formats:

What you get with this template

A complete business plan.

Text and financials are already filled out and ready for you to update.

• SBA-lender approved format

Your plan is formatted the way lenders and investors expect.

Edit to your needs

Download as a Word document and edit your business plan right away.

• Detailed instructions

Features clear and simple instructions from expert business plan writers.

All 100% free. We're here to help you succeed in business, no strings attached.

Get the most out of your business plan example

Follow these tips to quickly develop a working business plan from this sample.

1. Don't worry about finding an exact match

We have over 550 sample business plan templates . So, make sure the plan is a close match, but don't get hung up on the details.

Your business is unique and will differ from any example or template you come across. So, use this example as a starting point and customize it to your needs.

2. Remember it's just an example

Our sample business plans are examples of what one business owner did. That doesn't make them perfect or require you to cram your business idea to fit the plan structure.

Use the information, financials, and formatting for inspiration. It will speed up and guide the plan writing process.

3. Know why you're writing a business plan

To create a plan that fits your needs , you need to know what you intend to do with it.

Are you planning to use your plan to apply for a loan or pitch to investors? Then it's worth following the format from your chosen sample plan to ensure you cover all necessary information.

But, if you don't plan to share your plan with anyone outside of your business—you likely don't need everything.

More business planning resources

How to Write a Business Plan

How to Write a Business Plan for Investors

How to Create a Business Plan Presentation

How to Start a Business With No Money

Simple Business Plan Outline

Industry Business Planning Guides

10 Qualities of a Good Business Plan

Business Plan Template

Download your template now

Need to validate your idea, secure funding, or grow your business this template is for you..

• Fill-in-the-blank simplicity
• Expert tips & tricks

We care about your privacy. See our privacy policy .

Not ready to download right now? We'll email you the link so you can download it whenever you're ready.

Download as Docx

Download as PDF

Finish your business plan with confidence

Step-by-step guidance and world-class support from the #1 business planning software

From template to plan in 30 minutes

• Step-by-step guidance
• Crystal clear financials
• Expert advice at your fingertips
• Funding & lender ready formats
• PLUS all the tools to manage & grow

The quickest way to turn a business idea into a business plan

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

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

How to Create Recycling Business Plan Efficiently in 2024

• Last Updated: May 2, 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.

Get Optimized Routes for Waste Collection

Now, finding an optimized routes for waste pickups is a matter of seconds. That’s right, you can easily get them using the Upper Route Planner in less than a minute.

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.

Sign Up Now!

Get weekly updates from Upper Route Planner.

Tired of Manual Routing?

Related Posts

Recycling Reality Check: Addressing the Recycling Problems & How to Fix Them

750+ Catchy Recycling Business Names: Know the Best Practices in Naming Your New Business

How to Start a Recycling Business? – 11 Steps to Get the Desired Start

11 Advanced Recycling Technologies to Efficiently Recycle Global Waste

Maximize Your Recycling Business Profit Margin with 7 Recyclable Materials

Latest Recycling Trends in 2024 That You Must Be Aware of

Sign Up with Upper Route Planner and automate your daily business process route planning, scheduling, and optimizing!

Life's Complicated Enough. Your Routing doesn't have to be.

Plan routes, manage drivers and stops, send timely customer notifications, collect proof of delivery and much more with just a few clicks.

https://www.bing.com/

https://www.upperinc.com/blog/recycling-business-plan/

www.bing.com

Grab a FREE Trial of Upper

• Plan routes with hundreds of stops in a minute
• Schedule routes months in advance
• Collect reliable proof of delivery
• Track drivers live for real-time updates
• Experience unparalleled customer support

Grab a FREE Trial of Upper TODAY!

• Schedule routes in advance for weeks
• Collect proof of delivery to maintain accountability
• Experience 24/7 customer support
• Smart reporting to get real-time insights

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?

Finish Your Business Plan Today!

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.

Incorporate Your Business at the Guaranteed Lowest Price

We are proud to have partnered with Business Rocket to help you incorporate your business at the lowest price, guaranteed.

Not only does BusinessRocket have a 4.9 out of 5 rating on TrustPilot (with over 1,000 reviews) because of their amazing quality…but they also guarantee the most affordable incorporation packages and the fastest processing time in the industry.

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.

Other Helpful Business Plan Articles & Templates

• Write for Us
• Paid Content Solutions

• Company Posts
• ExpertHub Today

Global Capability Centres Boom As They Move Up The Value Chain

Global Tech Companies Are Turning To South Africa For Media And Marketing Expertise

Innovation Summit 2021 Showcases SA’s Top Tech Entrepreneurs

Three customer experience strategies you’re missing, embracing a digital-first world, smbs can have the confidence to thrive, applications for sab foundation are now open, trending tags.

• Paid Content Services

Plastics Recycling Sample Business Plan

Related Topics

Security guard business plan sample, gift baskets sample business plan, energy conservation sample business plan.

Click here to view this full business plan

Plastics Recycling Business Plan

Executive summary.

The growing utilization of plastics in industrial and consumer applications, combined with increased consumer awareness surrounding solid waste recycling, has led to an increased demand for recycled plastic resins and products. One of the fastest growing types of collected plastic materials for recycling is polyethylene terephthalate (“PET”) from post-consumer beverage and water bottles. Replay Plastics will capitalize on the opportunities in the recycled resin and packaging markets through two main divisions: a Recycling Division and a Packaging Division.

The Company will create a PET cleaning and refining plant located in the western United States (all 16 major North American PET recycling plants are currently located in the eastern United States or Canada). Its initial capacity will be 46 million pounds, and it will utilize post-consumer bottle feed stock presently collected in California, Oregon and Washington States, which collect over 200 million pounds per year. The Company will be vertically integrated, and use almost all of its recycled material in its Packaging Division. Any surplus materials (clean flake) produced will be sold to outside companies. The extruded sheet may then be sold to manufacturers, who will thermoform it into high-visibility packaging or use it in other high value added manufacturing operations. The strapping will be sold to companies who ship large packages or pallets, such as the lumber milling industry. The Company currently has commitments available from customers to purchase all of the product produced. MANAGEMENT Ben Braddock, President, has a 30-year history of experience encompassing all aspects of Polymer Raw Material, Plastic Conversion Methods, and Venture Development. He has founded successful ventures in the plastic converting industry, and assisted in the launch of five plastic converting manufacturing plants. Sam McGuire, Executive VP and COO, is a graduate Engineer with over 20 years experience in the post-consumer plastics recycling industry and is the inventor of the primary cleaning & refining technology used in the process for this project. He has received a patent for his technology and has been directly involved in over twenty-five major post consumer plastics recycling projects. Carl R. Smith, CFO, has over 30 years investment and merchant banking and management experience. He has assisted in raising over $500 million and served as board member and/or officer in over 40 public and private companies.

1.1 Objectives

• Sales passing $15 million in first year, $31 million in year 2, growing to $43 million.
• Gross margin of 35% or more in first year, 45% in second year then 50% or more.
• Net profit of 13% in year one, then exceeding 20% annually starting in year two.

1.2 Mission

Replay Plastics is a manufacturing company dedicated to converting waste plastic materials into commercially viable products, utilizing environmentally friendly recycling and manufacturing methods. We intend to make enough profit to generate a significant return for our investors and to finance continued growth and continued development in quality products. We will also maintain a friendly, fair, and creative work environment, which respects diversity, new ideas and hard work.

1.3 Keys to Success

The main keys to the success of the Company are:

• Secure Supply- Contract for supply of post-consumer bottles and post-industrial manufacturing waste for PET raw material feed stock.
• Marketing – Contractual arrangements for the sale of virtually all initial production.
• Management – Strong senior management with extensive, broad-based, industry-specific experience.

1.4 Potential Risks

Unavailable or scarce raw material feed stock for production

• Replay is confident that it has secured good availability of low cost post-consumer PET bottles (feed stock) derived from post-consumer beverage bottles from California based recycling collectors, and has back up sources identified.

Technology employed may be unreliable or unprovenReplay will use a proven, patented technology that was developed by one of its principals for the cleaning and recycling phase. The extrusion division will employ commercially proven technology – the industry is employing unique recycled PET technology which is used by prominent eastern U.S. manufacturers of PET extrusions.

• There may not be a market for the Company’s products

The Industry-wide experience of the Management Team has allowed them to identify markets for the Company’s products. Their expertise and reputations have allowed them to obtain commitments for virtually all of the planned initial production.

• The location may not be near enough to markets

The markets that have been identified are primarily in the western U.S., which will provide a distinct advantage to the Company because of freight costs and delivery timing.

• The Company may not be able to attract top management

The Company has assembled a world class management team with proven ability and direct experience in the Company’s market segments.

• Company may not meet environmental standards

This environmentally-favorable venture provides for the development of technically feasible and economically viable solutions to PET plastic beverage bottle recycling, as well as environmentally aware in-house re-use practices which filter and return nearly all of the process water to the production lines.

• The Company may not be able to sell all of its production capability

Through the Senior Management’s industry-wide contacts, the Company has identified potential customers and received commitments for all of the production potential of the initial facility.

Company Summary

The Company will capitalize on the opportunities in the recycled resin and packaging markets through two main divisions: a Recycling Division and a Packaging Division.

Recycling Division

Using a patented process, the Company will create a PET cleaning and refining plant located in the western United States; we have chosen this region because all 16 major North American PET recycling plants are currently located in the eastern United States or Canada, despite western states’ favorable recycling attitudes among consumers. Its initial annual capacity will be 46 million pounds and it will utilize bottle feed stock from California, Oregon and Washington States, which collect over 200,000,000 pounds per year. The Company will become totally vertically integrated, and use all or almost all of its recycled material in its Packaging Division. Any surplus material produced will be sold to outside companies.

Packaging Division

We will create a plant (actual facilities to be shared with the Recycling Division) to manufacture extruded plastic roll stock sheet or high-strength strapping, employing state-of-the-art technology developed to utilize recycled PET resin. The extruded sheet will be primarily sold to thermoformers who will convert it into high visibility packaging, as well as laminators and fabricators. The strapping will be sold to commercial users for use as package or pallet strapping. The Company currently has commitments from customers to purchase all of the initial production capacity. Excess flake will be sold to outside customers.

2.1 Company Ownership

Replay Plastics is owned by the initial founders, B. Braddock, S. McGuire and C. Smith, who are the proposed three executives of the operating entity. The plan was conceived and developed by these individuals, with the intent to apply their extensive experience and contacts in the industry to building a successful profitable corporation.

2.1.1 Potential Conflict

Our COO, Mr. Sam McGuire, the inventor and patent holder of the recycling process to be used by the Company, is a principal in Company A of Chicago, IL. For many years, Company has designed, manufactured and assembled plastic recycling equipment, and has given us quotes on meeting our needs in this area.

After a thorough investigation, Replay has found that Company A is able to source or supply the required equipment at considerably lower cost than any other company from which a quote was available. Mr. McGuire has disclosed that Company A has included a smaller than normal margin in their quote on goods they will manufacture, to cover overhead, contingency and profit which might result in a small benefit to him. They have agreed to source all of the equipment possible with no added margin.

Replay has concluded that the savings available outweigh any other consideration and that we will purchase the cleaning and refining equipment from Company A.

2.2 Start-up Summary

Our start-up expenses are budgeted at $210,000, which is mostly for on-site contractor services during facility preparation. $50,000 has been set aside for legal and accounting, $25,000 for special consulting that may be required during start up and $50,000 each for local engineering and lab equipment and supplies. $30,000 has been set aside as a contingency for the start up period.

Our largest Start-up Requirement is the building of the recycling and extrusion facility. Its final value at completion is listed below as a long-term asset of $3,620,000 (excluding expensed items like consultants and engineering listed above). Aside from the building itself, we need $25,000 in machinery and fixtures, $500,000 of inventory (plastic bottle feed stock) and cash to cover us through the initial year.

Replay Plastics will utilize two processes in the same facility to produce:

• Cleaned and recycled plastic PET flake (RPET), recovered from post-consumer beverage bottles and manufacturing waste produced by its sheet customers
• Extruded roll stock sheet PET.
• Extruded PET high-strength strapping for securing large packages or pallet loads; each using 100% RPET produced in-house

3.1 Product Description

Roll stock sheet will be sold to custom thermoformers primarily to be used to produce high-visibility packaging. It will also be sold to manufacturers of laminates and fabricated plastic products.

High strength PET packaging strapping is used to secure packages or pallets in such industries as lumber milling and corrugated and other paper production.

Both products will be extruded from post-consumer polyethylene terephthalate (PET) bottles. The recycling programs in California, Washington and Oregon collect in excess of 200,000,000 pounds of PET bottles per annum. Replay’ initial capacity will be 46,000,000 pounds.

Using a patented process, Replay will clean and refine the PET material from the post-consumer bottle stock and post-industrial manufacturing waste. The PET flake resin produced will be extruded into roll stock sheet or high-strength strapping.

Although the Company expects to convert all of its bottle feed stock into extruded products, any surplus flake will be sold to outside manufacturers.

3.2 Competitive Comparison

While quality and delivery are important factors to our potential clients, price is most often the determining factor in a buying decision. Good-quality packaging products manufactured from recycled (less expensive) resins, as close as practical to the end customer’s operations, will be most competitive and achieve a significant market share. These factors have helped to determine the business parameters of Replay Plastics.

3.3 Sourcing

In excess of 200,000,000 pounds of post-consumer PET beverage bottles are collected and available as feed stock for manufacturers who can re-process this material into commercial products. The Company has excellent relations with the firms and associations that collect and distribute these materials and has been assured that its requirements will be available for the foreseeable future.

The Company has entered negotiations with a California based source of post-consumer bottles and is confident that sufficient volumes are available on a contract basis from this source to satisfy its requirements. In addition, the Company intends to purchase production waste from its sheet customers and blend it into its feed stock.

Currently, the majority of the post-consumer PET bottles collected in California, Oregon and Washington are exported to China. The Chinese have absorbed the amounts surplus to the use in North America. Their interest has kept the industry in the position of being able to maintain a steady price range for this bottle stock. A significant percentage of all sales of such bottle stock are managed by Plastics Recycling Corporation of California (PRCC), an industry funded marketing agency which operates similarly to a co-operative. They accept bids from potential buyers on behalf of the firms which act as “consolidators,” which accumulate stocks from the smaller, individual bottle-recycling depots. Some amount of the available stocks are regularly bought by recyclers in eastern North America who focus on the carpet manufacturers who use RPET resin in their process, but the high cost of transport from the western U.S. makes eastern sources more desirable.

Replay has a good relationship with Company B, one of the larger consolidators in California. Company B has indicated a desire to contract to supply Replay with all of its raw material needs. They prefer to deal with a local consumer such as Replay, rather than the uncertainty and extra preparation requirements of the export market.

There are other sources of post-consumer feed stock known to Replay, and we are confident that we will have sufficient materials available for our production needs.

3.4 Technology

Sam McGuire, a key member of our Management team, is one of the original innovators of cleaning and refining technology for post-consumer PET, and we will be utilizing his patented process in our recycling facility. Sam has worked in the establishment and operation of facilities employing similar technologies over the last several years.

On the manufacturing side, Management has been an integral part of the advancement of industry practices over the last twenty years or so, and includes in their knowledge base most, if not all, of the state-of-the-art available equipment and manufacturing techniques.

Market Analysis Summary

Strong demand for recycled plastics is working in the industry’s favor. Major users of plastic packaging, apparently responding to consumer desires, have begun incorporating at least some recycled plastic content in their products as part of the growing interest in recycling. Recycled resin demand is on the rise as prices for the two major recycled resins, PET and HDPE, continue to hold value or appreciate against their virgin counterparts.

In volume, PET is currently the number one recycled resin. Supply of recycled PET is in excess of 800 million pounds per year. This figure is expected to grow, reaching over 1 billion pounds during the next few years. The plastics industry has developed new markets and applications for recycled resins from both post-consumer and post-industrial sources.

PET leads the recycled recovered resins as the most visible and valuable, and its use is increasing. Of the total 3.7 billion pounds of PET consumed in 1997, just 16% was from recycled sources. Of the more than 90 billion pounds of plastics produced annually in the United States, less than 5% is from recycled sources. Plastics, after aluminium, represent the second highest value material in the waste stream and have the highest projected growth rate.

Markets and uses for recycled plastics are rapidly expanding. Plastic containers are being collected at the curb for recycling in nearly 500 communities, representing more than 4 million households. U.S. demand for recycled plastic will continue to expand and new markets will develop as technologies permit the efficient segregation and reprocessing of high-purity resins. Improved quality of resins, environmental issues and higher prices for virgin resin will contribute to growth.

Packaging is expected to be the largest market segment for recycled plastics, with sheet and lumber following. Surveys indicate that Americans are increasingly willing to collect and separate discarded packages, foregoing a degree of convenience to make products more disposable, and even paying a premium for a recycled item.

Increasingly, communities are refusing to consider incineration until every effort is made first to recycle; public sentiment is strongly in favor of products that can be recycled or are made of recycled materials. In recent years, the household recycling rate of PET bottles has more than doubled to 30% of all PET soft drink bottles sold. In fact, PET’s recycling rate is the fastest growing among all beverage containers. The future of PET recycling is even brighter than it has been in the past. PET intrinsic scrap value is second only to aluminium among container materials. The plastics industry has launched a research and development program aimed at increasing PET recycling. According to the U.S. Environmental Protection Agency (EPA), plastic soft drink bottles account for approximately 2% of the solid waste discarded in America. The EPA has set a national goal to recycle 25% of the municipal solid waste stream and the industry is committed to achieving its share of that important goal.

The recycling industry intends to accelerate the rate of plastic recycling as part of its commitment to develop solutions to the solid waste problem. Industry analysts have projected that 50% of all PET containers will be recycled by the year 2007. More plastics will be recycled annually than any other recyclable material. Replay believes a significant answer to America’s waste problem lies in creating high value, recycled thermoformable sheet and other extruded products for the packaging market.

Although more than 200 million pounds of PET post-consumer materials are collected in the western United States each year, there is presently no local cleaning and refining facility converting the bottles into resins suitable for re-manufacturing. Originally, recycled PET (RPET) was used primarily in the carpet fiber industry, which is located along the eastern seaboard. The early development of the RPET industry was therefore focused in the eastern USA, with eastern states adopting the first bottle deposit laws that resulted in collection of post-consumer bottles that can be recycled. Recently, California, Oregon and Washington have adopted bottle deposit programs, and accumulation of recyclable materials in those states has begun. With all of the cleaning and recycling plants and the majority of consumers traditionally located in the eastern part of the country, development of consumers of recycled flake and down-line products, such as film and sheet, has been slow to develop in the West. A strong demand for post-consumer bottles from Asia has prevented the buildup of inventories and reduced the pressure for the collection industry to find or develop western markets.

There is currently no independent extrusion plant of recycled polyterephthalate (PET) sheet in the western United States or Canada that services the roll stock requirements of major custom and proprietary formers. With the development of the recycling industry for PET starting in the eastern part of the country, and the preponderance of consumers of sheet there as well, development of independent extrusion facilities using RPET has been slow to develop. It appears that in order to attract such companies, local sources of RPET would have to available. While there are customers in the West for the products, contracting a supply and shipping it from the East makes the venture unattractive.

Our founders recognize that an opportunity exists and propose a vertically integrated conversion facility that will employ state-of-the-art technologies to produce extruded sheet and high strength strapping from 100% recycled PET post-consumer bottle stock, cleaned and refined in our own facility.

4.1 Target Market Segment Strategy

The Company has chosen its target markets because recycled PET (RPET) is in high demand as flake resin by converters, as roll stock sheet used to produce high visibility packaging and as high strength strapping for the lumber industry. Sales are price-sensitive, so that proximity to markets and feed stock source provide a competitive edge. Replay Plastics identified an opportunity to take advantage of both circumstances in the western United States.

Total market demand is reported as 1.2 billion pounds per year. Since only 800 million pounds are processed in the USA, consumers are forced to look at wide spec virgin PET (virgin resin that is outside of spec but still usable) which is normally sold at a discount to virgin prices, but still higher than recycled (RPET) pricing. Some manufacturers are also forced to import materials from Mexico, India and South America. Some converters are being forced to use more expensive virgin resin.

The current pricing for virgin resin is $0.65-0.73 per lb. and $0.42-.53 for RPET flake. The spread between the two has traditionally been maintained at approximately $0.20 per lb.

PET Film & Sheet

The total reported market of extruded film and sheet is 872 million pounds, of which identified industry usage of RPET is 160 million pounds.

The reported market demand (to replace virgin PS, PVC and PET) if RPET was available is estimated at 1 billion pounds.

Current pricing for RPET sheet is $0.70-0.79 per lb.

RPET Strapping

The total reported domestic plastic strapping market is 240 million pounds. Of this market, industry usage of virgin polypropylene is 132 million pounds and of PET is 108 million pounds.

It is generally accepted in the industry that less expensive strapping made from RPET could not only take over the polypropylene strapping market, but convert as much of the much larger and more expensive steel strapping market as RPET strapping was available.

Current pricing for RPET strapping is $0.90 -1.08 per lb.

4.2 Market Segmentation

The primary market can be broken down as follows.

Consumers of PET in:

California: 62 Oregon: 8 Washington: 9

Consumers of HDPE in: California: 73 Oregon: 10 Washington: 12

4.3 Industry Analysis

Currently there is no direct competition in the western United States for either of the two divisions of the Company. Any production in the trading area remains captive and not available to our target market.

The ability of the Company to obtain a source of post-consumer bottle stock is an integral component of the strategy to vertically integrate operations and manufacture products in demand by western consuming industries. Without the cleaning and refining division, it would be difficult to source sufficient RPET flake resin at costs that would allow the Company to be competitive.

4.3.1 Barriers to Entry

Limited Supply of raw material Recycled PET (RPET) resins are in high demand, and demand is currently under-supplied. Many manufacturers are delaying expansion because of uncertainty of supply. Entrants would have to consider sourcing post-consumer or post-industrial waste and clean and refine it rather than attempting to purchase flake on the open market. Even at that, there is not an over-abundance of post-consumer or post industrial material in the marketplace.

Equipment costs are high and industry specific, resulting in a high exit cost. Because of the scarcity of RPET flake, entrants may be forced to establish cleaning and refining facilities for post-consumer bottles. The equipment required is costly and very industry specific. It would not easily be re-sold as a system. There is a market for used extrusion equipment, which normally sees 60-70% of new value being realized.

Vertical integration is an important consideration and difficult to accomplish successfully. Because of the scarcity of RPET resin, and to maximize profit potential, entrants must consider a two-stage production facility. Cleaning and refining post-consumer bottles and extruding the resulting flake into commercial products requires a management team such as Replay has, with a broad range of expertise, experience, industry contacts and knowledge in both areas.

Firm contracts for supply and sales. Replay Management’s industry contacts will allow us to secure contracts for both supply of feed stock and sale of finished goods.

Freight is a major cost of operations; proximity to source of supply and markets is crucial. Hauling plastic materials is expensive so entrants will have to consider establishing facilities close to materials and markets. Entrants with existing operations would have to consider new separate facilities in many cases, reducing economies of scale and making management more difficult.

4.3.2 Competition and Buying Patterns

There has been a strong demand (sellers’ market) for our products for several years. Traditional buying patterns in this industry are based on quality, price, reputation of manufacturer, freight costs, delivery times and proximity to markets. During such a sellers’ market, buying patterns are often more influenced by availability.

4.3.3 Main Competitors

Currently in the western United States, there is no direct competition for cleaning and refining post-consumer or post-industrial PET. Nor is there any non-captive extrusion of roll stock sheet.

The extruded sheet required by thermoformers is currently supplied by:

• Advance Extrusion, Becker, MN
• Kama, Pittsburgh, PA
• Plasti-Shell Packaging, Gonzales, LA
• Petco, Montreal, Canada
• Klockner, VA

In a news release dated September 10, 2004, Itec Environmental Group, Inc. announced their intention to open a PET and High Density Polyethelene (HDPE) recycling operation in Riverbank, CA (east of San Francisco). The news release states that the Company’s new and yet unproven technology lets it work with bottle streams that others have to reject as too dirty. This Company is familiar to our Management, and is not considered a significant factor in any of our markets.

ExpertHub Staff

ExpertHub’s team of Staff Writers deliver unique, insightful and curated content from successful business leaders, authors and subject matter experts. This highly-experienced team understands the information that business readers are looking for, what’s unique and impactful, and how to distil key ideas into actionable insights.

Boost Your Income: Five Proven Strategies for Mid-Career Professionals

You’re 40 something, mid-career, and you feel stuck. You need to make more money, but you don’t know how.

How to Make Money by Writing on Fiverr

Are you ready to unlock your writing potential and turn your creativity into cash? Learn how to make money by...

Step-by-Step Guide: How to Start Your Own Hair Salon Business

Are you ready to turn your passion for hair into a thriving business? Follow our step-by-step guide to start your...

Unlock Your Freedom by Joining Laptop Lifestyle

Are you ready to unlock your freedom and join the laptop lifestyle? It's time to find work that ignites your...

• Terms & Conditions
• Data Privacy Policy
• Privacy Policy

Copyright © 2022 ExpertHub.info Revenue Growth Experts

Welcome Back!

Login to your account below

Remember Me

Retrieve your password

Please enter your username or email address to reset your password.

• Business Ideas
• Registered Agents

How to Start a Recycling Business in 14 Steps (In-Depth Guide)

Updated:   January 31, 2024

BusinessGuru.co is reader-supported. When you buy through links on my site, we may earn an affiliate commission. Learn more

The global recycling industry makes more money than some people realize. The future is bright with an estimated compound annual growth rate (CAGR) of 4.8% from 2022 to 2030 .

In this guide, we’ll explain how to start a recycling business from the ground up. Topics include market research, competitive analysis, sourcing recycling materials, developing a business plan for a successful recycling business, and registering an EIN. Follow along to learn all you need to know to start a smoothly operating recycling business.

1. Conduct Recycling Market Research

Market research is important to any new recycling program. Whether you sell recyclable materials or run a processing facility, market research offers insight into your target market, prime locations, local market saturation, local government license requirements, and more.

Some details you’ll learn through market research in the recycling sector include:

• The major drivers stimulating this growth are expanding environmental awareness, corporate sustainability goals, and local and state regulations mandating recycling.
• With landfill space dwindling, more states are likely to pass similar laws, creating opportunities for recycling companies.
• Scrap metals like aluminum, copper, and steel are highly profitable to collect and resell.
• Setup costs are low and it’s easy to scale gradually.
• With new gadgets flooding the market daily, e-waste is the fastest-growing waste stream.
• Startup costs are higher due to required certifications, but this segment offers great impact potential.
• Entrepreneurs can focus on recyclable plastics like PET and HDPE or find niche markets like plastic film or Styrofoam recycling.
• Entrepreneurs can provide collection services for offices and households, operate drop-off locations, or focus on document destruction and shredding services.
• With the construction industry booming, disposing of huge volumes of debris is a major challenge.

The keys to success for any new recycling business are 1) identifying the right local niche and target materials 2) ensuring access to profitable end markets and 3) building strategic partnerships with waste management companies, municipalities, general contractors , and generators.

2. Analyze the Competition

Thoroughly analyzing the competitive landscape is crucial when starting any new business, and recycling is no exception. Here are some tips on assessing your competition as a new recycling entrepreneur:

Identify direct and indirect competitors in your local area. Direct competitors offer the same services and target the same customers as you plan to. Search online directories and drive around your region to create a comprehensive list.

Evaluate their offerings, capabilities, and weaknesses. Visit their sites or call anonymously to inquire about services and pricing. Search their websites and social media pages to gauge their marketing abilities. Look for gaps or shortfalls you can improve on.

For example, a scrap metal recycler may find competitors have small, cluttered facilities and poor logistics. An electronics recycler may see weak community outreach from rivals. Identifying deficiencies can reveal opportunities to gain an edge.

Research indirect competitors too – businesses that may lure away potential customers. For a plastic recycler, these could include waste-to-energy plants or landfills. Understanding all options for waste generators’ materials provides useful intel.

Estimate the market share of major players, using available data like revenue, volumes handled, and regional coverage. This gives perspective on who leads the market and how much share is feasibly up for grabs.

Evaluate competitive online presence as well. Search engines, review sites, and social media all help customers form opinions, so review what customers see during online research. If competitors’ web presences are outdated, lacking in engagement, or absent, you can seize the advantage.

Lastly, learn from inspirational companies outside your region. Look for recyclers with and gold-standard gold-standard customer service, s and gold-sta,ndard, or innovative practices that set them apart. Adapt elements that could give you a competitive edge in your local market.

Analyzing the competition from all angles provides tremendous insight into positioning your new recycling business for success amidst rivals. Use these findings to hone your niche, offerings, and marketing for maximum impact when you launch.

3. Costs to Start a Recycling Business

Starting a recycling company requires careful financial planning and cost analysis. The expenses involved can vary widely based on factors like location, scale, target materials, and more. Here is an overview of typical start-up and ongoing costs to expect:

Start-up Costs

• Incorporation Fees – $500-$2,000 to form an LLC or corporation
• Business Licensing – $50-$500 for state and local business licenses
• Permits – $3,000-$10,000 for special recycling permits and approvals
• Equipment – $50,000-$500,000+ for trucks, balers, crushers, shredders, forklifts, etc. Scale and materials affect costs greatly. Leasing can lower initial outlay.
• Real Estate – $5,000-$750,000 to buy or rent facility space. Minimum 2 acres recommended for most recycling operations.
• Site Improvements – $50,000-$250,000 for paving, fencing, truck scales, office space, stormwater management, etc.
• Consultants – $2,000-$20,000 for legal, accounting, engineering, and compliance support.
• Inventory – $10,000-$100,000 for spare parts, fuel, and other operational materials.
• Working Capital – $25,000-$250,000 cushion for first 3-6 months of operating expenses.
• Contingency – An additional 10-20% of total costs for unexpected overages.

Total startup costs can easily exceed $500,000 for a full-scale recycling business. Starting small and scaling gradually can reduce and initial capital needed.

Ongoing Costs

• Labor – $200,000-$2 million annually for employees like equipment operators, drivers, sorters, and administrators. Major cost factor.
• Insurance – $10,000-$100,000 annually for property, liability, commercial auto, workers comp. Varies by risk exposure.
• Rent/Mortgage – $24,000-$500,000+ per year depending on facility size and location.
• Equipment Maintenance – $50,000-$250,000 annually for repairs, fuel, and replacements to keep equipment operating efficiently.
• Utilities – $10,000-$100,000+ per year including electricity, gas, water, telephone, internet.
• Disposal Fees – Depending on the model, $50-$500+ per ton in landfill tipping fees for residual wastes.
• Transportation – For collections models, $50,000-$500,000 annually for driver payroll, fuel, and truck maintenance.
• Marketing – $15,000-$150,000 per year for advertising, online marketing, business development.
• Other Overheads – ~$50,000 for office supplies, professional services, compliance costs, and unforeseen expenses.

While daunting, the sizable revenue potential in recycling makes the startup and operating costs involved surmountable for many entrepreneurs. Careful planning and advantage-seeking can help optimize costs and profitability.

4. Form a Legal Business Entity

When starting a recycling company, one of the first key legal decisions is choosing the right business structure. The four main options each have advantages and disadvantages to weigh.

Sole Proprietorship

This simplest structure has no formal registration requirements. The owner operates under their own name and personal liability.

• Pros: Easy to form, few paperwork requirements, the owner retains full control, no corporate taxes.
• Cons: Unlimited personal liability, limited access to financing, no perpetual business life.

Best for small recycling operations with minimal risk. Offers little protection if sued.

General Partnership

Two or more co-owners share management, profits/losses. Personally liable for each other’s business actions.

• Pros: Easy to establish, share startup costs, pooled management skills.
• Cons: Equal responsibility for debts/lawsuits, divisions between partners, no perpetual life.

Limited Liability Company (LLC)

Members enjoy liability protection while retaining passthrough taxes like a partnership. Managed informally or with a corporate structure.

• Pros: Limited liability for owners, separate legal entity, operational flexibility, passthrough taxation.
• Cons: More paperwork than sole proprietorship, limited business life.

The liability shield makes an LLC ideal for recycling companies of most sizes.

Corporation

A separate legal entity offers complete limited liability for shareholders. Considerable legal formalities.

• Pros: Strongest liability protection, unlimited business life, easier to raise investment capital.
• Cons: Double taxation on corporate income and dividends, extensive recordkeeping, closely regulated.

The liability shield benefits larger recycling firms but increased regulations can deter small businesses.

5. Register Your Business For Taxes

One important task when starting a recycling company is obtaining an Employer Identification Number, or EIN, from the IRS. This unique identifier is essential for federal tax purposes.

An EIN acts like a social security number for your business. It identifies your company to the IRS and allows you to open business bank accounts, apply for licenses and permits, file taxes, and hire employees. An EIN is required if you have any employees, operate your recycling business as an LLC or corporation, or file any partnership tax returns.

Applying for an EIN is free and can be done online via the IRS website . The online application takes less than 30 minutes to complete. You’ll need to provide basic information about your recycling business structure and ownership.

Once submitted, you’ll receive your EIN immediately. This number should be included on all your recycling business’ tax filings and other documents requiring IRS identification.

You’ll also need to register with your state’s taxation department for sales tax collection purposes. This involves filing additional paperwork and remitting sales tax revenue regularly. State business registration can be completed on [your state’s taxation website] after receiving your EIN.

Taking these essential steps early on ensures your new recycling venture complies with federal and state tax laws right from the start. The EIN also legitimizes your business and lays the groundwork for growth.

6. Setup Your Accounting

As a recycling entrepreneur, implementing solid accounting principles from day one is critical. Proper bookkeeping and financial management will help your business thrive and avoid costly IRS issues.

Accounting Software

Getting set up with small business accounting software like QuickBooks provides the foundation. The software seamlessly integrates with your business bank accounts and credit cards, automatically importing and categorizing transactions to streamline recordkeeping.

Hire an Accountant

Partnering with an accountant takes your financial management to the next level. A qualified accountant provides bookkeeping and records reconciliation monthly or quarterly to identify any discrepancies. This prevents small mistakes from becoming major problems.

Come tax season, your accountant will be familiar with your finances and can ensure accurate filing and maximal deductions for your recycling business. Expect to invest around $200-$500 monthly for these ongoing services.

Open a Business Bank Account

Maintaining completely separate finances for your recycling company is also key. Do not comele personal and business transactions, as this complicates taxes and makes an audit more likely. Open dedicated business checking/savings accounts to keep funds separate.

Apply for a Business Credit Card

Applying for a business credit card also builds your recycling company’s financial identity. Issuers evaluate business creditworthiness based on time in business, income, and the owner’s credit. Startup companies can get approved for $1,000-$10,000 in initial business credit.

7. Obtain Licenses and Permits

Before collecting or processing any recyclable materials, it is essential for recycling entrepreneurs to acquire all required federal, state, and local licenses and permits. Find federal requirements through the U.S. Small Business Administration . The SBA also has a local search tool for state requirements.

The specific permits needed vary based on your location and the scale and types of materials handled, but some examples include:

• Solid Waste Facility Permit – State environmental agencies regulate waste management. You’ll need a solid waste permit to operate any recycling facility including sorting, processing, baling, storage, or collections.
• Hazardous Materials Permit – If handling any batteries, e-waste, or other materials classified as hazardous, additional EPA and state permits are required covering transport, storage, security protocols, and disposal of these items.
• Air Quality Permit – Recycling operations produce dust, odors, and other air pollutants requiring air permits, especially for shredder, crusher, or melting activities. State environmental agencies review emissions controls and can impose restrictions or limitations through the permitting process.
• Wastewater Discharge Permit – Water used in recycling processes becomes contaminated and must be properly treated before discharge. Permits set allowable discharge limits and monitoring requirements based on the types of pollutants.
• Stormwater Permit – Outdoor recycling facilities of a certain size have to implement stormwater management plans and obtain NPDES discharge permits for rain-contacting operations. This helps prevent runoff pollution.
• Occupational Health & Safety Permits – For activities like spray painting, abrasive blasting, or hazardous material handling, OSHA permits are required to demonstrate proper procedures and safety precautions for workers.
• Transportation Licenses – For collection services, commercial driver’s licenses, vehicle registrations, and state waste transporter permits must be secured for all drivers and trucks. DOT numbers may also be required.
• Local Business Licenses – Cities and counties require business licenses for all recycling operations in their jurisdiction covering zoning approvals, taxes, and other regulations. Some may require special recycling facility licenses.

While daunting, covering all licensing and permitting bases ensures your recycling business complies fully with the myriad regulations on waste management and environmental practices.

8. Get Business Insurance

Given the hazards inherent in handling large volumes of scrap materials and operating heavy machinery, insurance is especially critical for recycling businesses. The right policies can prevent severe financial losses.

Without adequate coverage, a few hypothetical scenarios could cripple or destroy your recycling company:

• A machine malfunction sparked a fire that caused $250,000 in equipment damage. Without property insurance, you would bear the full replacement cost.
• An employee was injured by faulty baling equipment. Without liability insurance, their $500,000 lawsuit award could bankrupt your business.
• A delivery truck crashed resulting in $100,000 in property damage to the other vehicle. Lacking commercial auto insurance means you must cover the payment yourself.

To mitigate risk, work with an insurance broker to secure policies tailored to your recycling operation before opening. Key coverages likely needed include:

• General liability – Protects against third-party, bodily injury, property damage, and lawsuits
• Commercial property – Covers damage to business property like equipment in case of events like fires or storms
• Commercial auto – For company vehicles, covers collision, damage, and liability
• Workers’ compensation – Pays for employee injuries suffered on the job per state laws
• Business interruption – Replaces income lost if operations are halted by covered incidents

The application process will require details on your location, facility, volumes handled, transportation practices, and materials recycled to assess risk levels. Quotes for annual premiums will reflect the underwriter’s appraisal of the hazards involved. Higher deductibles can reduce premium costs.

9. Create an Office Space

Having a dedicated office space provides legitimacy and functionality for a recycling startup. An office allows you to meet with clients, store documents securely, manage payroll, and house your business address. Depending on needs and budget, various options exist:

Home Office

A home office works well initially, with minimal setup – simply designate a bedroom or basement area. This allows easy access to administrative work, storage, and meetings. However, having clients visit a residence may appear unprofessional. Lack of separation may also lead to distraction. Expect minimal investment, but limited capabilities.

Coworking Office

For recycling businesses wanting a professional presence without the cost of commercial space, a coworking space like WeWork offers a nice middle ground. Coworking spaces provide amenities like conference rooms, front desk staff, high-speed internet, break areas, and office equipment for monthly membership fees starting around $300.

Retail Office

Some recyclers operate a small retail office/drop-off center allowing local clients to conveniently submit materials for recycling while providing a space for staff to work. If you have a storefront location, utilize part of it for your office needs. However, retail spaces have higher rent and may lack adequate parking or amenities for employees.

Commercial Office

Leasing traditional commercial office space provides the most professional environment but requires considerable investment. Expect monthly rents of $1,000 plus utility costs and a multi-year lease. However, the space can be customized to your needs and convey stability to clients. This option works best for established recycling firms.

10. Source Your Equipment

A key step in launching any recycling operation is acquiring the necessary equipment for collecting, sorting, and processing materials. Savvy entrepreneurs have options when sourcing these assets:

Buying brand-new equipment from manufacturers ensures full warranties and no worn components. However, prices are highest for shiny new machinery. Options include contacting manufacturers directly or working with an equipment dealer who can bundle offerings. Expect to pay premium prices but benefit from customization.

Purchasing used recycling equipment helps save money, with high-quality machines potentially available at half-off retail prices. Search industry classifieds, online auctions like Ritchie Bros. , and local equipment dealers to find deals. Joining industry trade groups also provides access to members selling off assets.

An alternative to buying is renting equipment as needed. This prevents major upfront capital outlays. Rental rates vary widely – expect to pay 10% of the purchase price per month. Search equipment rental marketplaces like Rent It Today when the need arises.

Leasing provides the benefits of new equipment without a huge lump purchase. After a down payment, fixed monthly installments cover the equipment over a set term. Ownership transfers after the final payment. Expect to pay a few thousand per month depending on the assets leased.

11. Establish Your Brand Assets

Developing a strong brand identity helps recycling businesses make a memorable and professional impression on customers. Your brand conveys what your company stands for.

Getting a Business Phone Number

A dedicated business phone number lends legitimacy versus using a personal cell. Options like RingCentral provide toll-free and local numbers with professional call-handling features like greetings, extensions, and voicemails. Expect costs starting around $30/month.

Creating a Logo and Brand Assets

A logo uniquely ties your recycling brand’s visual identity together. Consider an abstract mark, a letter mark, or one incorporating recycling symbols. Services like Looka help create logos tailored to your company for affordable rates.

Business Cards and Signage

Business cards enable quick sharing of contact details in person and at trade events. Yard signs, building signage, and vehicle decals boost visibility. Order economical, quality cards and signage from Vistaprint .

Purchasing a Domain Name

Your domain name is the URL website visitors type to find your recycling business online. Choose a name matching your brand and register it through Namecheap or similar providers. Aim for a .com address with keywords like “yourcityrecycling”.

Building a Website

An online presence is a must through an informational website. Options include DIY builders like Wix or hiring a freelancer from Fiverr . Weigh time vs. cost.

Regardless, ensure your site presents capabilities, contact options, and useful content to engage visitors. This drives new business.

12. Join Associations and Groups

Joining local groups and associations provides invaluable connections when starting a recycling venture. Surrounding yourself with fellow industry experts leads to trade secrets and partnerships.

Local Associations

Most regions have recycling-focused trade organizations you can join, like the California Resource Recovery Association . These provide access to events, advocacy efforts, peer support, and insider knowledge that gives you a competitive edge.

Local Meetups

Attending local meetups and tradeshows puts you face-to-face with potential mentors and partners. Sites like Meetup list environmental and waste management events near you. Bring business cards and be ready to connect.

Facebook Groups

For real-time sharing and advice, Facebook groups like Business Owners, Entrepreneurs, and Start-Ups Networking and (RCO) Recycling business opportunities provide an engaged community of thousands of recycling pros.

13. How to Market a Recycling Business

Implementing ongoing marketing is essential for recycling businesses to continually attract new customers. A multifaceted approach combining digital and traditional strategies is ideal for growth.

Personal Networking

First and foremost, tap your network and existing customer base. Satisfied clients who spread word-of-mouth referrals and reviews are invaluable assets. Consider thanking loyal customers with a special offer if they refer new business.

Digital Marketing

For wider outreach, smart digital marketing should be a priority:

• Run Google Ads campaigns with keywords like “recycling near me” to get found locally in searches
• Create Facebook ads targeted by location and demographics likely needing recycling services
• Start a YouTube channel with tutorials on topics like scrap metal preparation for educational marketing
• Maintain a blog on your website with helpful recycling content driving organic search traffic
• Claim Google Business Profile and Yelp pages to manage listings and customer reviews
• Send email newsletters with company updates and special offers to engender loyalty

Traditional Marketing

More traditional tactics can supplement your digital activities:

• Print full-color flyers and mailers to distribute in neighborhoods
• Take out ads in local newspapers and community circulars
• Sponsor community events related to sustainability to get brand exposure
• Advertise on billboards along highly trafficked roads near your facility
• Run ads on local radio stations aligned with your target customer demographics
• Provide tours of your facility to local schools or civic groups to create connections

The most effective marketing incorporates digital avenues for expanded reach with targeted local advertising to attract customers in your area. All efforts should convey your capabilities, commitment to service, and the convenience you provide.

14. Focus on the Customer

Providing excellent customer service is crucial for recycling companies to retain clients and gain referrals. In this highly competitive industry, experience matters. Some ways to improve customer focus include:

• Small touches that show you value customers have a huge impact.
• Respond promptly to inquiries, provide reminders before pickup days, or send holiday cards to regular clients.
• Offer flexible scheduling if a customer needs to reschedule a pickup. Go the extra mile to build goodwill.
• Following up is also key. Call clients after a big project to ensure satisfaction. Seek feedback so you can continuously improve offerings.
• Address any concerns immediately.
• With great service, you become partners in your clients’ recycling efforts rather than just a vendor.
• Make it easy for satisfied customers to leave online reviews. Positive experiences shared publicly or privately with peers are your best marketing.

By providing supportive, responsive customer service – answering questions, solving problems, listening to needs – you demonstrate genuine commitment. Clients will stick with you for the long haul and promote you to others. This helps recycling businesses grow exponentially through referrals.

You Might Also Like

January 15, 2024

0  comments

How to Start a General Contractor Business in 14 Steps (In-Depth Guide)

The construction industry is booming, with the overall market expected to reach $12.7 trillion ...

January 11, 2024

How to Start a Parking Lot Business in 14 Steps (In-Depth Guide)

The parking lot industry is a major market in the United States. As urban ...

November 13, 2023

How to Start a Distribution Business in 14 Steps (In-Depth Guide)

Global distribution is on the rise, with more than $7 trillion earned in 2022. ...

October 19, 2023

The global recycling industry makes more money than some people realize. The future is ...

Check Out Our Latest Articles

How to start a dog clothing business in 14 steps (in-depth guide), how to start a vintage clothing business in 14 steps (in-depth guide), how to start a bamboo clothing business in 14 steps (in-depth guide), how to start a garage cleaning business in 14 steps (in-depth guide).

Need a business plan? Call now:

Talk to our experts:

• Business Plan for Investors
• Bank/SBA Business Plan
• Operational/Strategic Planning
• L1 Visa Business Plan
• E1 Treaty Trader Visa Business Plan
• E2 Treaty Investor Visa Business Plan
• EB1 Business Plan
• EB2 Visa Business Plan
• EB5 Business Plan
• Innovator Founder Visa Business Plan
• UK Start-Up Visa Business Plan
• UK Expansion Worker Visa Business Plan
• Manitoba MPNP Visa Business Plan
• Start-Up Visa Business Plan
• Nova Scotia NSNP Visa Business Plan
• British Columbia BC PNP Visa Business Plan
• Self-Employed Visa Business Plan
• OINP Entrepreneur Stream Business Plan
• LMIA Owner Operator Business Plan
• ICT Work Permit Business Plan
• LMIA Mobility Program – C11 Entrepreneur Business Plan
• USMCA (ex-NAFTA) Business Plan
• Franchise Business Planning 
• Landlord Business Plan 
• Nonprofit Start-Up Business Plan 
• USDA Business Plan
• Cannabis business plan 
• eCommerce business plan
• Online Boutique Business Plan
• Mobile Application Business Plan
• Daycare business plan
• Restaurant business plan
• Food Delivery Business Plan
• Real Estate Business Plan
• Business Continuity Plan
• Buy Side Due Diligence Services
• ICO whitepaper
• ICO consulting services
• Confidential Information Memorandum
• Private Placement Memorandum
• Feasibility study
• Fractional CFO
• How it works
• Business Plan Examples

Recycling Company Business Plan Sample

Published Aug.26, 2013

Updated Apr.23, 2024

By: Jakub Babkins

Average rating 5 / 5. Vote count: 5

No votes so far! Be the first to rate this post.

Table of Content

Recycling company business plan for starting your own business?

If you are considering starting up your own recycling company, you should know that the business opportunities available are as wide-ranging and varied as the tons of stuff that we dispose of every day. Starting a recycling company business does not require you to hold technical knowledge, you can start it with a small team and 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:

Business plan for investors

5.2.1 commercial businesses.

Our commercial customers will range from smaller retail businesses to urban skyscrapers with high-volume waste streams. We will provide permanent, temporary, and need-based trash removal and recycling services.

5.2.2 Residential Community

Residential customers have a variety of materials to be recycled. Some households generate enough trash making it economically feasible for the resident to utilize a larger commercial-sized trash container for weekly trash service. 

5.2.3 Industrial and manufacturing

Industrial customers frequently require roll-off dumpsters, compactors, trash containers, and waste plastic recycling equipment. Industrial customers are expected to contact us for scrap metal hauling and redemption, cardboard and waste paper recycling, construction and demolition debris collection, and trash disposal.

5.2.4 Government

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

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.

How to Start a Plumbing Business in 2024: A Detailed Guide

Vegetable Farming Business Plan

Trading Business Plan

How To Write A Textile Manufacturing Business Plan

Start a Vending Machine Business in 2024: A Detailed Guide

Oil and Gas Business Plan

Any questions? Get in Touch!

We have been mentioned in the press:

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Search the site:

How To Write a Textile Recycling Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for textile 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 textile recycling business owner should include in their business plan.

Download the Ultimate Business Plan Template

What is a Textile Recycling Business Plan?

A textile 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 Textile Recycling Business Plan?

A textile 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 Textile Recycling Business Plan

The following are the key components of a successful textile recycling business plan:

Executive Summary

The executive summary of a textile 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 textile 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 textile 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 textile recycling firm, mention this.

You will also include information about your chosen textile 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 textile 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 textile 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 textile recycling business’ customers may include:

• Retailers who sell used clothing
• Wholesalers who purchase used clothing in bulk
• Clothing manufacturers who use recycled textile products
• Trash collectors or waste management firms that collect used clothing
• Charity organizations that accept donated clothes

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 textile 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 textile recycling business may have:

• Experienced management team
• Proven business model
• Use of cutting-edge technology
• Strong customer relationships
• Community-minded

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, launch a direct mail campaign. Or you may promote your textile recycling business via a public relations campaign.

Operations Plan

This part of your textile 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 textile recycling business include reaching $X in sales. Other examples include adding new equipment, hiring additional staff, or expanding to a new location.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific textile 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 Textile 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 Textile 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 textile recycling business.

Sample Cash Flow Statement for a Startup Textile 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 textile 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 textile recycling company. Now that you understand the importance of a business plan for your textile recycling company and the key components to include, you are ready to get started.  

Finish Your Business Plan in 1 Day!

Wish there was a faster, easier way to finish your business plan?

With our Ultimate Business Plan Template you can finish your plan in just 8 hours or less!