Recycling Waste Materials Business Plan Leave a comment

Opportunity

Solution

Mid-Atlantic Recycling, LLC’s primary business will be to collect, process, recycle/compost, market, and dispose of municipal waste. This product will fulfill two crucial needs:

1. It will offer municipalities a cost-effective alternative to the landfilling of waste.
2. It will also help to meet the growing demand organic soil enrichers and fertilizers. Human waste sludge, which is the material to be recycled, will be used.

Market

Our products and services will be of benefit to both end customers in our supply chain. Municipalities will benefit from our service by having an alternative means of waste disposal. Other potential customers who will benefit from our compost product include turf farms, fertilizer manufacturers, nurseries, landscapers, golf courses, homeowners, and even the federal government for use in highway construction reseeding. There are two primary market segments for our compost product: the waste treatment facilities that will benefit and the consumers who will be benefited by our products.

The Worldwatch Institute reports that landfills are overflowing and the costs of disposing of sewage and garbage is rising. Mayors can reduce municipal budgets, stop contamination of drinking waters, and help farmers to build healthier soils by recycling human waste and garbage back into their farms. A minimum of 13 U.S. States have six years before their landfills become full. (Paper 135 Recycling Organic Waste: from Urban Pollutants to Farm Resource. We offer a service where municipalities can dispose off their waste without it needing to be disposed of anywhere. This is of great value to this customer.

Our compost is used by people who are also part of the process. According to Cornell University (www.cals.cornell.edu/dept/compost.feas.study.html) composting is experiencing a resurgence of activity which is driven by increased understanding of the agronomic benefits of compost utilization, and rising disposal costs for municipal wastes. Also, according to Purdue University (www.ctic.purdue.edu/Core4/Nutrient/ManureMgt/Paper35.html) consumption of compost in the commercial market is growing due to people looking for a more organic or natural substitute for traditional chemical fertilizers. The Mid-Atlantic USA is seeing a rise in recycling. We will initially sell compost to nursery operators, landscapers, and fertilizer manufacturers. Already, a fertilizer company and a landscaper have committed to buying 600 tons of our compost material per year.

These are the five largest market segments that compost is available in:

• Agriculture (for food or non-food crops and for sod farms).
• Landscapers for industrial and commercial properties, golf courses, cemeteries and athletic fields, landfill covers, and damaged soils
• Nurseries for planting and seedling plants and reforestation.
• Public agencies (for highway median strips and parks, recreation areas, or other public property).
• Residents (for home landscaping and gardening).

Competition

Our service is an affordable, and even desirable, alternative for traditional ways to dispose of human waste. Our product is a soil enhancer with value that appeals to consumers’ growing environmental consciousness. The direct competition is almost nonexistent. We plan to position ourselves as an economical and rational choice for human refuse disposal and compost production throughout West Virginia and Mid-Atlantic.

Expectations

Forecast

The following will provide the start-up financing: Owner equity investment in the form of a loan through the Regional Council of Governments Revolving Loan Fund. This loan is secured by real estate assets. The Regional Revolving Loan Fund (or Regional Revolving Loan Fund) is an economic development program sponsored by three West Virginia county: Mercer Greenbrier, Monroe, and Monroe.

Financial Highlights per Year

Financing Required

Two sources will loan us nearly $1,000,000. The $850,000 loan is based on our assets, and the $150,000 loan from the owners.