Do you want to start a paper shredding company and need to write a plan? If YES, here is a sample paper shredding business plan template & feasibility report. If you are looking towards starting a green and Eco – friendly related business, then one of the many business opportunities in this line that you can launch with little stress is a paper shredding business.
It has been proven that job recruitment hubs, academic environments and corporate office environments are thriving locations for a paper shredding business. Any entrepreneur who is interested in starting a paper shredding business should be willing to pay much to locate the business in any of the locations stated above.
If you are sure this type of business is what you want to do after you must have conducted your feasibility studies and market research, then the next step to follow is to write a good 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 services.
Below is a sample paper shredding business plan template that will help you successfully write yours without much stress.
A Sample Paper Shredding Business Plan Template
1. Industry Overview
Paper shredding business is subset of the document management services industry and operators in the industry include companies that store information and records for business and government clients. Industry services involve records management, secure document destruction and data protection and recovery services.
A close study of the industry shows that the industry has been struggling over the last half decade due to the fact that digital products and services have increasingly displaced traditional printed materials. Over the past 20 years, rapid technological change has toppled both markets and sent the industry into structural decline.
It was predicted that going forward, paper shredding services will continue to struggle as digital media replaces traditional paper products. In the interim, profit margins are expected to slightly increase due to a drop in labor expenses as a result of industry consolidation.
Statistics has it that in the united states of America alone the industry rakes in a whooping sum of billion annually. There are about 1,670 registered and licensed document management services businesses scattered all across the length and breadth of the United States and they are responsible for employing about 55,875 people.
The industry is projected to enjoy 3.8 percent annual growth within 2014 and 2019. It is important to state that the establishments with the dominant market share in the document management industry in the United States are Iron Mountain Inc. and Stericycle Inc.
Research carried out by IBISWORLD shows that the over the five years to 2019, revenue for the Document Management Services industry grew at an annualized rate of 3.8 percent to $6.5 billion. The industry includes companies that provide commercial and government clients with outsourced records storage, document destruction services and digital conversion of paper-based records.
Due to regulations mandating the retention of company records, operators in the industry benefit from sustained demand for document storage and increased information security regulation. In 2019, revenue is expected to grow 2.5 percent, fueled by expected growth in the number of businesses and corporate profit that is anticipated to increase downstream demand.
If you are looking towards starting your own paper shredding business, then you should endeavor to learn the trade. The truth is that the technology and processes involved in this business will require a period of time (months) to learn but beyond that, you must be a person that corporate organization can easily trust to discard their documents.
Some companies outsource their shredding to shredding services. These companies either shred on-site with mobile shredder trucks or have off-site shredding facilities. Documents that need to be destroyed are often placed in locked bins that are emptied periodically.
2. Executive Summary
Daniel Jose® Paper Shredding Services, Inc. is a registered paper shredding company. We have been able to secure a standard and well – positioned office facility in – between a busy business district and educational hub in New York City – New York.
We are a world class paper shredding service that is set to compete in the document management industry not only in the United States market, but also in the global market. Daniel Jose® Paper Shredding Services, Inc. will be involved in paper shredding, cutting of other types of papers and cardboard and other related document management and discarding services.
We will either shred on-site with mobile shredder trucks or take them to our off-site shredding facilities. Our business goal is to become one of the leading paper shredding services in the United States and we will make sure that every job that we carry out will be done in trust.
Our workers are going to be selected from a pool of talented professionals in and around New York City. 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.
At Daniel Jose® Paper Shredding Services, Inc. our client’s best interest comes 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 delivering excellent and neat jobs and also meeting our client’s needs precisely and completely.
Daniel Jose® Paper Shredding Services, Inc. is a private business that is owned and managed by Mr. Daniel Jose. Daniel Jose studied Printing Technology from Illinois Institute of Technology and he has over 10 years’ hands on experience working with one of the leading paper shredding companies in the United States of America.
3. Our Products and Services
Daniel Jose® Paper Shredding Services, Inc. was established with the aim of maximizing profits in the Document management services industry.
We want to compete favorably with leading Paper shredding companies in the United States of America which is why we have put in place a competent quality assurance team that will ensure that all our paper shredding jobs meet and even surpass our customers’ expectations and match – up with international best practices.
Our services are;
- Paper shredding services
- Cutting of other types of papers and cardboard
- Other related document management and discarding services
4. Our Mission and Vision Statement
- Our vision is to establish a standard Paper shredding company whose services and brand will not only be accepted in New York City but also throughout the United States of America.
- Our mission is to build a world class Paper shredding services company that will either shred on-site, with mobile shredder trucks or have off-site shredding facilities and be known to execute top notch paper shredding projects and to become the number one choice for players in the corporate industry.
- We want to build a paper shredding company that can favorably compete with other leading brands in the industry.
Our Business Structure
Daniel Jose® Paper Shredding Services, Inc. intends starting small in New York City – New York, but hopes to grow big in order to compete favorably with leading paper shredding companies in the industry. We are aware of the importance of building a solid business structure that can support the kind of world class business we want to own.
At Daniel Jose® Paper Shredding Services, Inc., 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. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer
- Human Resources and Admin Manager
- Sales and Marketing Executive
- Paper Machine Operators
- Client Service Executive
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
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization.
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Design 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.
- Defining 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
- Oversee the smooth running of the daily office activities.
Sales and Marketing Manager
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyze the volumes of transactional data generated by customer
- Identifies development opportunities; follows up on development leads and contacts
- Writing 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
- Create new markets cum businesses for the organization
- Empower and motivates the sales team to meet and surpass agreed targets
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements 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.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for Daniel Jose® Paper Shredding Services, Inc.
- Serves as internal auditor for Daniel Jose® Paper Shredding Services, Inc.
Paper Shredding Machine Operators
- In charge of handling paper shredding machines and other paper cutting and discarding machines in the office and in clients location.
- Working to a brief, which details what the shredded paper excesses will be used for, and finding out the client’s personal ideas and requirements
- Responsible for cleaning and maintaining paper shredding machines and other equipment that are kept under their control
Client Service Executive
- Welcomes 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 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
- Distribute mails in the organization
- Handles any other duties as assigned by the human resources and admin manager.
6. SWOT Analysis
We are quite aware that there are several paper shredding companies in the United States of America which is why we are following the due process of establishing a business so as to compete favorable with them.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Daniel Jose® Paper Shredding Services, Inc. employed the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured paper shredding services business that can favorably compete in the document management services industry in the United States.
Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for us. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Daniel Jose® Paper Shredding Services, Inc.;
Our core strength lies in the power of our team; our workforce. We have a team of trusted and highly proficient professional paper shredders.
Aside from the synergy that exists in our carefully selected professional staff members, we have some of the latest and efficient paper shredding machines and equipment, we can either shred on-site with mobile shredder trucks or off-site, and of course our work output and services will be guided by international best practices in the industry.
As a new paper shredding services company in New York City, it might take some time for our organization to break into the market and gain acceptance especially from the government and other high – profile clients in the already saturated and highly competitive document management services industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to promote our business the way we would want to.
Anti-burning laws resulted in increased demand for paper shredding. More recently, concerns about identity theft have driven increased personal use, with the US Federal Trade Commission recommending that individuals shred financial documents before disposal.
Information privacy laws such as FACTA, HIPAA, and the Gramm–Leach–Bliley Act are driving shredder usage, as businesses and individuals take steps to securely dispose of confidential information. As a standard Paper shredding services 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 the campaign against the use of papers and the promotion of digital documents. Another threat that may likely confront us is the arrival of a new paper shredding business in same location where our target market exists and who may want to adopt same Business model like us. We are not ruling out the fact that unfavorable government policy can also affect our business.
7. MARKET ANALYSIS
- Market Trends
Paper shredders became more popular among U.S. citizens with privacy concerns after the 1988 Supreme Court decision in New York v. Greenwood; in which the Supreme Court of the United States held that the Fourth Amendment does not prohibit the warrantless search and seizure of garbage left for collection outside of a home.
However, the Document management services industry over time has experienced rapid growth due to rapid technological advancements, falling costs and new uses for printing technology. Going forward, the demand for paper shredding service and of course the revenue generated is projected to increase rapidly.
As a Paper shredding company with the aspiration to favorably compete in the industry, you are expected to keep tabs with new trends and products that are always coming up in the industry. For a paper shredding services company to continue to stay in business and grow, they must continue to prove that they can be trusted with important documents.
8. Our Target Market
Before starting our paper shredding company, we are certain that there is a wide range of both corporate, schools, small businesses and individual clients who cannot successfully discard their hardcopy documents and that is where the services of a standard paper shredding company like ours comes in.
We will ensure that we develop strategic pacts with corporate organizations, educational institutions and recruitment agencies et al. This will give us several options to generate revenue for our company. Below is a list of the people and organizations that we will market our products and services to;
- Banks, Insurance Companies and other related Financial Institutions
- Blue Chips Companies
- Corporate Organizations
- Job recruitment agencies
- The Government (Public Sector)
- Schools (High Schools, Colleges and Universities)
- Printing Press (Publishing Houses) and Authors
- Branding and Advertising agencies
- Entrepreneurs and Startups
Our Competitive Advantage
It is a fact that the competition in the document management services industry is getting stiffer by the day, you have to be seen to be trusted and exhibit professionalism in order to survive in the industry.
We are quite aware that to be highly competitive in the document management services industry means that you are not only expected to be able to deliver consistent and reliable paper shredding services but you must be able to meet set targets.
No one would want to continue to hire your services if don’t always meet up with the target date of completion of projects and if you are not trusted. Our competitive advantage lies in the power of our team; our workforce. We have a team of creative and highly proficient professional paper shredders.
Aside from the synergy that exists in our carefully selected staff members, we have some of the latest and efficient paper shredding machines and equipment and of course our work output and services will be guided by international best practices in the industry. Interestingly, we have the capacity to shred on-site with mobile shredder trucks or off-site.
Lastly, 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 objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Daniel Jose® Paper Shredding Services, Inc. is established with the aim of maximizing profits in the document management industry and we are going to ensure that we do all it takes to meet and surpass the expectations of all our clients.
Daniel Jose® Paper Shredding Services, Inc. will generate income by offering the following services;
- Paper shredding services
- Cutting of other types of papers and cardboard
- Other related document management and discarding services
10. Sales Forecast
One thing is certain, there would always be corporate organization and schools who would need the services of paper shredding companies whenever they have to discard their documents.
We are well positioned to take on the available market in the industry and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our paper shredding company to enviable heights.
We have been able to examine the paper shredding market, 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 projections for Daniel Jose® Paper Shredding Services, Inc., it is based on the location of our business and the wide range of our services;
- First Fiscal Year (FY1): $250,000
- Second Fiscal Year (FY2): $350,000
- Third Fiscal Year (FY3): $450,000
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 paper shredding 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.
- Marketing Strategy and Sales Strategy
We are not ignorant of the fact that there are stiff competitions in the document management services industry; there are loads of paper cutting and shredding businesses jostling for contracts which is why 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 general document management services industry and they will be trained on a regular basis so as to be well equipped to meet their set targets.
Our goal is to grow Daniel Jose® Paper Shredding Services, Inc. to become one of the leading paper shredding companies in the United States of America 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 not only in New York City but also in other cities in the United States of America.
Daniel Jose® Paper Shredding Services, Inc. is set to make use of the following marketing and sales strategies to attract clients and win paper shredding contracts;
- Introduce our paper shredding services company by sending introductory letters alongside our brochure to corporate organizations, schools, recruitment agencies and key stake holders in and around New York City, New York.
- Promptness in bidding for paper shredding contracts from the government and other cooperate organizations
- Advertise our business in relevant business magazines, newspapers, TV and radio stations
- 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 excellent paper shredding services
- Leverage on the internet to promote our business
- Engage direct marketing approach
- Join local chambers of commerce and industries to network and market our services
- Encourage word of mouth marketing from loyal and satisfied clients
11. Publicity and Advertising Strategy
We have been able to work with 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 and individual clients in the whole of the New York City and beyond which is why we have made provisions for effective publicity and advertisement of our paper shredding company.
Below are the platforms we intend to leverage on to promote and advertise Daniel Jose® Paper Shredding Services, Inc.;
- 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 locations all around New York City – New York
- Distribute our fliers and handbills in target areas
- List our paper shredding services company in local directories / yellow pages
- Advertise our paper shredding services 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 and trucks are well branded with our company logo et al.
12. Our Pricing Strategy
If you are conversant with the paper shredding business, you will realize that the pricing structure ranges from fixed price rate to the quantity of materials to be shredded and discarded. Almost all companies adopt all the available pricing system as it applies to the quantity of the job or project they are expected to execute.
At Daniel Jose® Paper Shredding Services, Inc. we will adopt all the pricing system as is obtainable in the industry but we will ensure that we keep the prices of our services a little below the average market rate by keeping our overhead low and by collecting payment in advance from corporate organizations and government agencies who would hire our services.
In addition, we will also offer special discounted rates to our customers at regular intervals. We are aware that there are some one-off contracts which 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
The payment policy adopted by Daniel Jose® Paper Shredding Services, Inc. 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 Daniel Jose® Paper Shredding Services, Inc. will make available to her clients;
- Payment via bank transfer
- Payment via online bank transfer
- Payment via mobile money
- Payment via Point of Sales Machines (POS Machines)
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our clients make payment for our services without any stress on their part.
13. Startup Expenditure (Budget)
When it comes to setting up a standard paper shredding business, the machines and equipment that will be used are nearly the same cost everywhere, and any difference in price would be minimal and can be overlooked. This is what it would cost us to setup Daniel Jose® Paper Shredding Services, Inc. in New York City – New York, U.S;
- 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 an office space or warehouse that will accommodate the number of employees for at least 6 months (Re – Construction of the facility inclusive) will cost – $150,000.
- The cost for equipping the office (computers, standard industrial-capacity paper shredder/paper shredding machines, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $10,000
- The amount required to purchase the needed software applications – $ 3,500
- The cost of launching an official website will cost – $500
- The amount needed to pay bills and staff members for at least 2 to 3 months – $70,000
- The amount needed to purchase a mobile shredding truck – $15,000
- Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000
- Miscellaneous – $2,000
Going by the report from the market research and feasibility studies conducted, we will need about two hundred thousand (250,000) U.S. dollars to successfully set up a medium scale but standard paper shredding services company in the United States of America.
Generating Funds/Startup Capital for Daniel Jose® Paper Shredding Services, Inc.
Daniel Jose® Paper Shredding Services, Inc. is a privately registered business that will be owned by Mr. Daniel Jose. He decided to restrict the sourcing of the startup capital for the business to just three major sources.
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup 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 $85,000 and soft loan from family members $15,000) and we are at the final stages of obtaining a loan facility of $150,000 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.
14. Sustainability and Expansion Strategy
Part of the plans we have in place to sustain Daniel Jose® Paper Shredding Services, Inc. is to ensure that we continue to deliver quality and trusted services, and improvise on how to do things faster and cheaper. We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times.
From our findings, another factor that kills new businesses is financial leakages. In order to plug financial leakages, the management of Daniel Jose® Paper Shredding Services, Inc. adopted the use of payment machine and accounting software to run the business.
We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better. We will not waste time in adopting new technology, best practices and diversifying our services.
Daniel Jose® Paper Shredding Services, Inc. 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.
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
- Securing a standard office facility plus renovation of the facility: Completed
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the startup 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
- Secure trademark for our products: In Progress
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed mobile shredding truck, paper shredding machines and equipment and other related working tools: Completed
- 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