Are you about starting a garbage collection company? If YES, here is a complete sample garbage collection business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a garbage collection business. We also took it further by analyzing and drafting a sample garbage collection business marketing plan template backed up by actionable guerrilla marketing ideas for garbage collection businesses. So let’s proceed to the business planning section.
Table of Content
- Why Start a Garbage Collection Business?
- Garbage Collection Business Plan – Executive Summary
- Garbage Collection Business Plan – SWOT Analysis
- Garbage Collection Business Plan – MARKET ANALYSIS
- Garbage Collection Business Plan – SALES AND MARKETING STRATEGY
- Garbage Collection Business Plan – Publicity and Advertising Strategy
- Garbage Collection Business Plan – Financial Projections and Costing
- GARBAGE COLLECTION BUSINESS GROWTH: Sustainability and Expansion Strategy
Why Start a Garbage Collection Business?
One of the business opportunities available in the waste management sector that an aspiring entrepreneur can start in the united states of America is garbage collection. The truth is that if you settle for this business, you are sure of making huge returns from your investment because garbage is generated on a daily basis and of course reliable statistics shows that the waste collection industry in the United States of America rakes in a whooping sum of $45 billion dollars annually.
If you want to partake in this thriving industry, then you need to obtain the necessary licenses and permits. Although there are competitions at various levels in the industry, but if you are able to come up with a good business strategy, then you are sure of getting your own fair share of the market in the industry.
If you know that this type of business is what you want to do after you must have conducted your market research and feasibility studies, then you should proceed to write a business plan; a detailed blue print of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your service.
The truth is that it is one thing to have a fantastic idea cum business plan, and another thing for the business plan to translate to profits, which is why it is important to assemble a team of experts to work with if you want to be successful with your garbage collection business.
Below is a sample garbage collection company business plan template that will help you successfully write yours without much stress.
A Sample Garbage Collection Business Plan Template
- Industry Overview
Garbage collection business is grouped under the waste collection industry and companies that operates in the industry collect hazardous and nonhazardous waste and recyclable materials. Nonhazardous waste includes municipal solid waste (household waste) and industrial and commercial waste.
Transfer stations where waste is transferred from local vehicles to long-distance automobiles for transport to disposal facilities are also included in the Waste Management industry. It is important to state that this industry does not account for government-provided services of a similar nature.
A close study of the industry shows that the Waste Collection industry has benefited from the recovery of the industrial, construction and commercial business sectors. As these sectors expands, it is natural for them to produce more waste.
So also, steady demand from the residential market has helped stabilize the overall revenue generated by the waste collection industry. Going forward, the demand for waste collection services will continue to be driven by population growth, privatization and business creation.
Additionally, the industry will benefit from the public’s growing interest in the recycling industry. The companies holding the largest market share in the Waste Collection Service in the US industry include Waste Management Inc., Republic Services Inc. and Waste Connections Inc.
Statistics has it that in the United States of America alone, there are about 11,824 licensed and registered waste collection companies scattered all across the length and breadth of the country and they are responsible for employing about 217,713 employees. The industry rakes in a whooping sum of $45 billion annually (benched mark in 2018) with an annual growth rate projected at 1.7 percent within 2013 and 2018.
A recent report published by IBISWORLD shows that the distribution of establishments in the Waste Collection industry across the United States largely reflects the size and distribution of the US population and economic activity.
Densely populated areas that are particularly economically active tend to generate large quantities of waste, necessitating the presence of greater numbers of industry establishments. The report further stated that other factors that contribute to the relative concentration of industry establishments in a geographic location include the structure of the local economy and the commitment to recycling.
Please note that we are not ruling out the fact that starting and operating a garbage collection company can be challenging, but the truth is that it can be rewarding at the same time. One good thing about the industry is that it is open for both big time investors who have the capacity to start the business with fleet of garbage collection trucks and aspiring entrepreneurs who may want to start with just one garbage collection truck.
Garbage Collection Business Plan – Executive Summary
Inland Garbage Collection and Management Company is a registered and licensed waste collection company that will be based in Cheyenne – Wyoming. We have been able to secure all the relevant licenses and permits to operate in the United States. We will ensure that we abide by the rules and regulations guiding the industry and we will only hire experienced and qualified drivers with valid commercial driver’s license (CDL) to handle our garbage collection trucks.
We are in business to provide services such as ash and brush collection and hauling, waste and refuse collection and hauling, recyclable material collection and hauling, removal and hauling of rubble, construction and demolition debris, waste transfer station operation, amongst other related services. We will provide daily services all around Cheyenne – Wyoming and neighboring cities.
Inland Garbage Collection and Management Company will ensure that all our garbage pick – ups are on time and we supersede the expectation of our customers. We will only put trucks that are in top shape on the road, and all our cleaners and drivers will be trained to be extra careful, pay attention to details, courteous, friendly and to abide by the rules and regulations of the industry. We will maintain and take proper care of our cleaners and drivers as well as our trucks.
We are quite optimistic that our values and quality of service offering will help us drive our garbage collection business to enviable heights and also help us attract the number of clients that will make the business highly profitable.
We are quite aware that in order to become the number one choice in our city, we must continue to deliver quality services and that is exactly what we will do. We are open to the use of latest technology in industry. No doubt our excellent customer service and the quality of services we offer will position us to always welcome repeated customers and handle massive deals from large estates, shopping malls, hotels and business complexes.
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.
Inland Garbage Collection and Management Company is a family business that is owned by Perry Wilberforce and his immediate family members. Perry Wilberforce a native of Cheyenne is a graduate of in Business Administration from the University of Arkansas and MBA in Finance from the University of Tulsa. He has over 12 years’ experience in the waste management industry.
- Our Services Offering
Inland Garbage Collection and Management Company is established with the aim of maximizing profits in the waste collection industry. We want to compete favorably with the leading garbage collection companies in the United States which is why we have put in place a competent quality assurance team that will ensure that every service carried out meets and even surpass our customers’ expectations.
Our service offerings are listed below;
- Ash and brush collection and hauling
- Waste and refuse collection and hauling
- Recyclable material collection and hauling
- Removal and hauling of rubble, construction and demolition debris
- Waste transfer station operation
Our Vision Statement
Our Vision is to build a business that will take care of garbage collection for major residential estates and shopping malls in the whole of Cheyenne – Wyoming.
- Our Mission Statement
Our mission is to deploy professional and environmental friendly ways of garbage collections in inner cities; we want to become a standard of how garbage collection companies should operate in the whole of the United States of America.
- Our Business Structure
We intend starting the business with a handful of full time employees and some of the available driving roles will be handled by qualified contract drivers. Adequate provision and competitive packages has been prepared for all our employees.
At Inland Garbage Collection and Management Company, 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.
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.
For now, we will contract the maintenance of our trucks to service provider, we don’t intend to maintain a very large overhead from the onset. But as soon as the business stabilizes, we will assemble our own in – house maintenance team.
Below is the business structure and the roles that will be available at Inland Garbage Collection and Management Company;
- Chief Operating Officer (Owner)
- Admin and HR Manager
- Transport and Logistics Manager
- Marketing and Sales Executive (Business Developer)
- Garbage Collectors
- Waste Truck Drivers
- Customer Services Executive/Front Desk Officer
Roles and Responsibilities
Chief Operating Officer (Owner):
- 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
- Responsible for fixing prices and signing business deals
- 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
Transport and Logistics Manager
- Accountable for coordinating drivers, vehicles, loads and journeys
- Answerable for developing and confirming schedules
- In charge of planning routes and load scheduling for multi-drop deliveries.
- Responsible for booking in deliveries and liaising with customers.
- Ensuring all partners in the supply chain are working effectively and efficiently to ensure smooth operations.
- Directs all transportation activities.
- Develops transportation relationships.
- Responsible for monitoring transport costs.
- Deals with the effects of congestion.
- Confronts climate change issues by implementing transport strategies and monitoring an organization’s carbon footprint.
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- 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
- Carrie out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily office activities.
Marketing and Sales Executives (Business Developers)
- Identifies, prioritizes, and reaches out to new clients, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- 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
- Documents all customer contact and information
- Represents Inland Garbage Collection and Management Company in strategic meetings
- Helps to increase sales and growth for Inland Garbage Collection and Management Company.
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managers with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Accountable for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the company
- Serves as internal auditor for the company
Waste Truck Drivers
- Assists in loading and unloading garbage.
- 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
- Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
- Complies with waste truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
- Collects and verifies delivery instructions
- Reports defects, accidents or violations
Garbage Collectors and Cleaners
- Responsible for handling core services such as, ash and brush collection and hauling, waste and refuse collection and hauling, recyclable material collection and hauling, removal and hauling of rubble, construction and demolition debris, waste transfer station operation, and hauling amongst other related services
- Handles any other duty as assigned by the transport and logistics manager
Customer Service Officer
- Welcome clients and visitors 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
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to potential clients when they make enquiries
- Receives parcels / documents for the company
- Distributes mails in the organization
- Handles any other duties as assigned by the human resources and admin manager.
Garbage Collection Business Plan – SWOT Analysis
As a result of our vision, our mission and the kind of business we want to set up, we don’t have any other option than to follow due process. Following due process involves hiring business consultant to help us conduct SWOT analysis for our business.
Inland Garbage Collection and Management Company hired the services of a seasoned business consultant with bias in startups in the U.S. to help us conduct a thorough SWOT analysis and to guide us in formulating other business strategies that will help us grow our business.
Here is a summary from the result of the SWOT analysis that was conducted on behalf of Inland Garbage Collection and Management Company.
Strong management, strong fleet operations, our garbage collection network serves some of the largest population centers in Cheyenne – Wyoming, size advantages, cost advantages, customer loyalty and strong reputation amongst domestic and industry players is what we can boast of.
Our business is centrally located in a densely populated residential estate in Cheyenne – Wyoming; our location is in fact one of our major strength. We are also not neglecting the power of our workforce and management.
Looking through our Business model, one of the business weaknesses that may pose a challenge to us is insufficient flow of finance to handle key issues such as purchase of brand new waste collection trucks and promotion of the business.
Come to think of it, there is no household, business complex or shopping mall that does not generate garbage which means that a garbage collection company will always be in business as long as people live in the location that they operate in.
Some of the threats that we are likely going to face are mature markets, bad economy (economy downturn), stiff competition, volatile costs, and rising fuel prices. Other threats that are likely going to confront Inland Garbage Collection and Management Company is unfavorable government policies, seasonal fluctuations and of course emergence of new competitors within the same location where ours is located.
Garbage Collection Business Plan – MARKET ANALYSIS
- Market Trends
The market trends in the industry especially in the United States is indeed dynamic and at the same time challenging. But one thing is certain, once a garbage collection and management company can gain credibility, it will be much easier for the company to secure permanent deals/contracts with waste generators who are compelled by the law in the United States.
Latest trends show that the Waste Collection industry has benefited from the recovery of the industrial, construction and commercial business sectors. As these sectors expand, it is natural for them to produce more waste. So also, steady demand from the residential market has helped stabilize the overall revenue generated by the waste collection services industry.
Going forward, the demand for garbage collection services will continue to be driven by population growth, privatization and business creation. Additionally, the industry will benefit from the public’s growing interest in the recycling industry.
In conclusion, fuel is one of the primary input costs for this industry, as it is used to power the trucks. Therefore, higher fuel prices increase industry costs. The price of diesel and other fossil fuels used to power waste collection vehicles is expected to increase in 2018, which presents a potential threat for the industry.
- Our Target Market
Prior to launching our garbage collection company, we are certain that there is a wide range of households and businesses who cannot successfully dispose their garbage without a garbage collection company like ours. We will ensure that we develop strategic pacts with corporate organizations, and estate managers et al. This will give us several options to generate revenue for our company.
We have conducted our market research and survey and we will ensure that all our garbage collection services are accepted in the market place. Below is a list of the people and organizations that we will specifically market our services to;
- Residential buildings (households)
- Business complexes
- Shopping malls
- Public facilities
- Construction sites
- Printing Companies
- Photo processing centers / Photo Labs
Inland Garbage Collection and Management Company no doubt is a new garbage collection company, which is why we took our time to do a thorough homework before launching the business. We were able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are trust, honesty, good garbage collection network and excellent relationship management, strong management, strong fleet operations, etc.
Our garbage collection and transportation network serves some of the largest population centers in the Cheyenne – Wyoming and we have strong reputation amongst domestic industry players.
All our employees will be well taken care of, and their welfare package will be among the best within our category 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.
Garbage Collection Business Plan – SALES AND MARKETING STRATEGY
- Marketing Strategy and Sales Strategy
The marketing strategy adopted by Inland Garbage Collection and Management Company is going to be driven basically by professionalism, excellent customer service, honesty and quality service delivery. We will ensure that we build a loyal customer base.
We want to drive sales via the output of our jobs and via referral from our satisfied customers. We are quite aware of how satisfied customers drive business growth especially businesses like garbage collection and management services.
Inland Garbage Collection and Management Company is strategically located and we are going to maximize the opportunities that is available which is why we spent more to locate the business in a location that will be visible and enable us to access our target market.
Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be equipped to meet their targets and the overall goal of Inland Garbage Collection and Management Company.
Our goal is to grow Inland Garbage Collection and Management Company to become the leading garbage collection company in Cheyenne – Wyoming which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with in the waste collection services industry.
Inland Garbage Collection and Management Company is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our garbage collection and management business by sending introductory letters alongside our brochure to shopping malls, hotels, residential estates and other key stake holders in Cheyenne – Wyoming
- Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
- Use friends and family to spread word about our business
- Post information about our company and the services we offer on bulletin boards in places like schools, libraries, and local coffee shops et al
- Place a small or classified advertisement in the newspaper, or local publication about our company and the services we offer
- Leverage on referral networks such as agencies that will attract clients who would need our customized services
- Advertise our garbage collection and management company in relevant magazines, newspapers, TV and radio stations
- Attend relevant expos, seminars, and business fairs et al to market our services
- Engage in direct marketing approach
- Encourage the use of Word of mouth marketing from loyal and satisfied students
- Join local chambers of commerce and industry to market our services.
Sources of Income
Inland Garbage Collection and Management Company will make sure that we leverage on our strength and the opportunities available to us in the U.S. market to generate enough income that will help us drive the business to stability.
Below are the sources we intend exploring to generate income for Inland Garbage Collection and Management Company;
- Ash and brush collection and hauling
- Waste and refuse collection and hauling
- Recyclable material collection and hauling
- Removal and hauling of rubble, construction and demolition debris
- Waste transfer station operation
We are positioned to take on the available market in Cheyenne – Wyoming and we are quite optimistic that we will meet our set target of generating enough income/profits from the first month of operation and grow the business and clientele beyond Cheyenne to other cities in the state of Wyoming.
We have been able to examine the waste collection services industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projection for Inland Garbage Collection and Management Company, it is based on the location of our business and our competitive advantage;
- First Fiscal Year: $230,000
- Second Fiscal Year: $470,000
- Third Fiscal Year: $725,000
N.B: This projection was 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 offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Our Pricing Strategy
Inland Garbage Collection and Management Company has a lease arrangement with various companies and the company’s pricing is based on miles per thousands of tons of garbage collected and transported. We have perfected our plans to charge competitive rates since we have minimal overhead compared to our competition in the industry.
We will ensure that we leverage on price to win over customers; our prices will be affordable and negotiable. The fact that our business door is open to both households and businesses means that we will have different price range for different category of clients. As the business grows, we will continue to review our pricing system to accommodate a wide range of clientele.
- Payment Options
The payment policy adopted by Inland Garbage Collection and Management Company LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Inland Garbage Collection and Management Company will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via online bank transfer
- Payment via mobile money
- Payment via Point of Sales Machines (POS Machines)
- Payment via check
In view of the above, we have chosen banking platforms that will enable our clients make payment for our garbage collection services without any stress on their part.
Garbage Collection Business Plan – Publicity and Advertising Strategy
We have plans to grow our business beyond Cheyenne – Wyoming which is why we have perfected plans to build our brand via every available means. We have been able to work with our 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 both corporate clients and households in the whole of Cheyenne – Wyoming and beyond which is why we have made provisions for effective publicity and advertisement of our garbage collection company.
Below are the platforms Inland Garbage Collection and Management Company intend leveraging on to promote and advertise the business;
- Place adverts on both print (newspapers and magazines) and electronic media platforms
- Sponsor relevant community based events
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our services
- Install our billboards in strategic locations all around Cheyenne – Wyoming
- Distribute our fliers and handbills in target areas
- List our company in local directories/yellow pages
- Advertise our company in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff wear our branded shirts and our waste collection trucks are branded with our company logo.
Garbage Collection Business Plan – Financial Projections and Costing
When it comes to starting a standard garbage collection business, one is expected to spend the bulk of the startup capital on the purchase of garbage collection trucks. Aside from that, you are not expected to spend much except for paying the required fee in dump sites, paying of your employees and utility bills.
However, this is what it would cost us to start Inland Garbage Collection and Management Company in the United of America;
- The total fee for incorporating the business in the United States of America – $750.
- The budget for liability insurance, permits and license – $5,500
- The amount needed to acquire a suitable office facility with enough parking space for our waste collection trucks in Cheyenne – Wyoming for 6 months (Re – Construction of the facility inclusive) – $150,000.
- The amount required to finance the purchase of the first set of garbage collection trucks – $100,000
- The cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al): $5,000
- The cost for accounting software, CRM software and Payroll Software – $3,000
- Other start-up expenses including stationery – $1000
- Phone and Utilities (gas, sewer, water and electric) deposits – ($3,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $120,000
- The cost for launching our official website – $600
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
Going by the report from the market research and feasibility studies conducted, we will need about three hundred thousand (350,000) U.S. dollars to successfully set up a medium scale but standard garbage collection company in the United States of America.
Generating Funds/Startup Capital for Inland Garbage Collection and Management Company
Inland Garbage Collection and Management Company is set to start as a private business that will be owned by Mr. Perry Wilberforce and his immediate family members. He will be the sole financier of the company but may likely welcome other business partners when need for expansion arises.
These are the areas we intend generating our startup capital for our business;
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $100,000 (Personal savings – $80,000 and soft loan from family members – $80,000) and we are at the final stages of obtaining a loan facility of $250,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
GARBAGE COLLECTION BUSINESS GROWTH: Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Inland Garbage Collection and Management Company is to build a business that will survive off its own cash flow without 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 offer our garbage collection and management services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Inland Garbage Collection and Management Company 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 retraining of our workforce is at the top burner of our business strategy.
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.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Acquiring of trucks and relevant garbage disposal equipment: In progress
- Renting of Office Facility (Parking Yard for our garbage collection trucks) in Cheyenne – Wyoming: Completed
- Conducting Feasibility Studies: Completed
- Startup Capital Generation: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees and drivers: In Progress
- Purchase of furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with key players in the industry: Completed