Are you about starting a waste paper collection company? If YES, here is a complete sample waste paper collection business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a waste paper collection business. We also took it further by analyzing and drafting a sample waste paper collection business marketing plan template backed up by actionable guerrilla marketing ideas for waste paper collection businesses. So let’s proceed to the business planning section.
Table of Content
- Why Start a Waste Paper Collection Business?
- Waste Paper Collection Business Plan – Executive Summary
- Waste Paper Collection Business Plan – SWOT Analysis
- Waste Paper Collection Business Plan – MARKET ANALYSIS
- Waste Paper Collection Business Plan – SALES AND MARKETING STRATEGY
- Waste Paper Collection Business Plan – Publicity and Advertising Strategy
- Waste Paper Collection Business Plan – Financial Projections and Costing
- WASTE PAPER COLLECTION BUSINESS GROWTH: Sustainability and Expansion Strategy
Why Start a Waste Paper Collection Business?
As an aspiring entrepreneur who is looking towards starting a business in the united states, it is good to know that there is hardly any industry that you will pitch your business tent in that you won’t reap good returns from your investment.
For example, if you decide to start a business in the waste collection industry, you are sure of making huge returns from your investment. This is so because reliable statistics shows that the waste collection industry in the United States of America rakes in about $47 billion dollars annually.
The truth is that this market is pretty much open for new investors to come in. 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 available market in the industry.
It is a fact that waste paper can be recycled to generate other paper based products and going by the trend as it concerns going green, the United States’ government is seriously giving support to players in the recycling industry and as a waste paper collection business, you stand the chance of benefiting from this legislature.
So, if you have decided to start a waste paper collection company, then you should make sure that you carry out thorough feasibility studies and also market survey. Business plan is yet another very important business document that you should not take for granted when launching your own business.
Below is a sample waste paper collection company business plan template that will help you successfully write yours without much stress.
A Sample Waste Paper Collection Business Plan Template
- Industry Overview
Waste paper collection business falls under the waste collection services industry and companies that operate in this industry consist of Residential waste collection, recyclable material collection, transfer and storage facilities, nonresidential waste collection, hazardous waste collection and c&d site waste collection. 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 it has benefited from the recovery of the industrial, construction and paper production 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 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 Waste Collection industry will continue to experience growth in all parts of the world especially in developed countries. The companies holding the largest market share in the industry in the US 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 paper collection companies scattered all across 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 Services industry 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.
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 and level of recycling. Some industries, particularly in the service sector, generate relatively little waste.
No doubt starting and operating a waste paper 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 and small time investors.
Waste Paper Collection Business Plan – Executive Summary
Green Angle® Waste Paper Collection Company is a registered and licensed waste collection company that will be based in Salt Lake City – Utah. We have been able to secure all the relevant licenses and permits to operate as a standard waste paper collection company in the United States.
We will ensure that we abide by the rules and regulations guiding the industry and we will only hire experienced drivers with valid commercial driver’s license to handle our collection trucks. We will go around the city collecting waster paper from printing press and other paper based production companies. We will provide daily services all around Salt Lake City – Utah and neighboring cities.
Green Angle® Waste Paper Collection Company will ensure that all our waste pickups 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 take proper care of our collectors and drivers as well as our trucks and equipment. We are quite optimistic that our values and quality of service offering will help us drive our waste paper 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. Our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics.
Green Angle® Waste Paper Collection Company is a family business that is owned by Gordon Green and his immediate family members. Gordon Green is an astute investor who has interest in the Waste Collection industry. He has a diploma in Waste Management and a Degree in Industrial Engineering from Auburn University and MBA from Duke University with over 17 years’ experience in The Waste Collection industry.
- Our Services Offering
Green Angle® Waste Paper Collection Company is established with the aim of maximizing profits in the waste collection industry. We want to compete favorably with leading waste paper collection companies in the United States which is why we have put in place a competent quality assurance team.
Our service offerings include;
- Waste paper and refuse collection and hauling
- Recyclable paper material collection and hauling
- Waste paper transfer station operation
Our Vision Statement
Our Vision is to become the preferred choice for individuals and organizations when it comes to paper waste collection and disposal services in the whole of Salt Lake City – Utah and neighboring cities.
- Our Mission Statement
Our mission is to ensure that we build a successful waste paper collection company that will operate in the whole of the United States of America; a company that will grow to become one of the top 10 waste paper collection companies 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 Green Angle® Waste Paper Collection 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. 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.
For now, we will contract the maintenance of our trucks to a service provider, we don’t intend to maintain a very large overhead from the onset. But as soon as the business grows and stabilize, we will assemble our own in-house maintenance team.
Below is the business structure and the roles that will be available at Green Angle® Waste Paper Collection Company;
- Chief Operating Officer (Owner)
- Admin and HR Manager
- Transport and Logistics Manager
- Marketing and Sales Executive (Business Developer)
- Waste Paper Collectors
- 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
- Accountable 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
- Responsible for coordinating drivers, vehicles, loads and journeys
- In charge of developing and confirming schedules
- Responsible for implementing health and safety standards
- In charge of planning routes and load scheduling for multi-drop deliveries.
- Responsible for allocating and recording resources and movements on the transport planning system.
- Directs all transportation activities.
- Develops transportation relationships.
- Responsible for monitoring transport costs.
- Confronting climate change issues by implementing transport strategies and monitoring an organization’s carbon footprint.
Admin and HR Manager
- 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
- Carries 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
- Documents all customer contact and information
- Represents Green Angle® Waste Paper Collection Company in strategic meetings
- Helps to increase sales and growth for Green Angle® Waste Paper Collection 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 waste paper and related waste 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 pickup and delivery schedule.
- Inspects vehicles for mechanical 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
- Reports defects, accidents or violations
Waste Paper Collectors
- Responsible for the collection of waste papers and related waste materials from pick up locations
- Serve as assistant to the waste truck driver
- Handles any other duty as assigned by the transport and logistics manager
Customer Service Officer
- 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
- Distributes mails in the organization
- Handles any other duties as assigned by the human resources and admin manager.
Waste Paper Collection Business Plan – SWOT Analysis
Going by 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 a business consultant to help us conduct SWOT analysis for our business.
Green Angle® Waste Paper Collection Company hired 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 Green Angle® Waste Paper Collection Company.
Our strength is centered around strong management, strong fleet operations, our waste paper collection network serves some of the largest printing press in Salt Lake City – Utah, size advantages, cost advantages, customer loyalty and strong reputation amongst domestic and industry players.
Our business is centrally located in a densely populated industrial estate in Salt Lake City – Utah. Another strength that counts for us is the power of our team; our workforce and management. We have a team that is considered experts in the waste collection services industry, a team of hardworking and dedicated individuals.
Our weakness could be lack of finance, high debt burden, cost structure, lack of scale compared to our peers who have already gained ground in the industry. As a new waste paper collection company, which is own by an individual, and we may not have the financial muscle to sustain the kind of publicity we want to give our business. As a new business, we are also quite aware that it will take time for us to build trust with our clients.
The opportunities that are available to us as a waste paper collection company in the United States are new services, new technology, and of course the opening of new markets. We are centrally located in one of the busiest industrial areas in Salt Lake City – Utah and we are open to all the available opportunities that the city has to offer.
The truth is that there are no standard waste paper collection company within the area where ours is going to be located; the closest waste paper collection company to our proposed location is about 15 miles away. In a nutshell, we do not have any direct competition within our target market area.
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 Green Angle® Waste Paper Collection Company is unfavorable government policies, seasonal fluctuations, demographic / social factors, and of course emergence of new competitors within the same location where ours is located.
Waste Paper Collection Business Plan – MARKET ANALYSIS
- Market Trends
The market trends as it involves the waste collection services industry especially in the United States is indeed dynamic and at the same challenging. But one thing is certain, once a waste collection and disposal company can gain credibility, it will be much easier for the company to secure permanent deals/contracts with big time printing press and other paper waste generators who are compelled by the law in the United States to dispose their waste as at when due.
Latest trends show that the Waste Collection Services industry has benefited from the recovery of the printing sector. As this sector 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 paper 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.
Lastly, some of the major factors that count positively in this line of business are competence, trust, honesty, good relationship management and of course timely and safe pick – ups.
Before starting our waste paper collection company, we are certain that there is a wide range of both corporate and individual clients who cannot successfully dispose their wastes without hiring the services of a waste paper collection company like ours. We will ensure that we develop strategic pacts with printing press, corporate organizations, and households et al. This will give us several options to generate revenue for our company.
In view of that, we have created strategies that will enable us reach out to various businesses who we know can’t afford to do without our services. We have conducted our market research and survey and we will ensure that our service is well accepted in the market place. Below is a list of the people and organizations that we will market our services to;
- Printing Companies
- Manufacturers of paper based products
- Household who generate papers waste
- Corporate organizations who generate paper waste
- Small business owners who generate paper waste
- Paper recycling companies
Our major competitive advantage is the vast industry experience and solid reputation of our owner, Gordon Green.
We were able to highlight some factors that will give us competitive advantage in the marketplace such as trust, honesty, good waste paper collection network, excellent relationship management, strong management, strong fleet operations, our waste collection and transportation network, our size advantages, cost advantages, customer loyalty and strong reputation amongst domestic industry players.
Another competitive advantage that we are bringing to the industry is the fact that we have designed our business in such a way that we can comfortably work with both individuals and also big conglomerates who are involved in massive generation of paper waste.
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 business aims and objectives.
Waste Paper Collection Business Plan – SALES AND MARKETING STRATEGY
- Marketing Strategy and Sales Strategy
The marketing strategy for Green Angle® Waste Paper Collection 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 and we will drive sales via the output of our jobs and via referral from our satisfied customers.
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 Green Angle® Waste Paper Collection Company.
Our goal is to grow Green Angle® Waste Paper Collection Company to become the leading waste paper collection company in Salt Lake City – Utah which is why we have mapped out strategies that will help us take advantage of the available market. Green Angle® Waste Paper Collection Company is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our waste paper collection and disposal business by sending introductory letters alongside our brochure to organizations who are into manufacturing of paper waste, printing companies, paper recycling companies, households and other key stake holders in Salt Lake City – Utah
- 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 waste collection and disposal 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
Green Angle® Waste Paper Collection Company will ensure 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 Green Angle® Waste Paper Collection Company;
- Recyclable paper material collection and hauling
- Waste paper transfer station operation
We are positioned to take on the available market in Salt Lake City – Utah 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 Salt Lake City.
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 Green Angle® Waste Paper Collection Company, it is based on the location of our business and our competitive advantage;
- First Fiscal Year: $200,000
- Second Fiscal Year: $300,000
- Third Fiscal Year: $550,000
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 waste collection and disposal services as we do within same location.
- Our Pricing Strategy
Green Angle® Waste Paper Collection Company has an arrangement with various companies and the company’s pricing is based on miles per thousands of tons of waste paper 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 individuals and corporations 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 Green Angle® Waste Paper Collection 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 Green Angle® Waste Paper Collection Company 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
- Payment via check
In view of the above, we have chosen banking platforms that will enable our client make payment for waste paper collection and disposal services without any stress on their part.
Waste Paper Collection Business Plan – Publicity and Advertising Strategy
Any business that wants to grow beyond the corner of the street must be ready to utilize every available means to advertise and promote the business. We intend growing our business beyond Salt Lake City – Utah 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 paper recycling companies and paper waste generators in the whole of Salt Lake City – Utah and beyond which is why we have made provisions for effective publicity and advertisement of our company.
Below are the platforms Green Angle® Waste Paper Collection Company intend leveraging on to promote and advertise the business;
- Place adverts on both print (newspapers and magazines) and electronic media platforms
- 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 Salt Lake City – Utah
- 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 members wear our branded shirts and all our waste collection trucks are branded with our company logo et al.
Waste Paper Collection Business Plan – Financial Projections and Costing
Starting a waste paper collection business is indeed capital intensive hence an entrepreneur would have to pool cash together or welcome investors to partner with you. Although the capital needed to set up an office structure for such business might not be expensive, but the running capital of the business is always the real deal.
You would need huge capital base to be able finance the purchase of acceptable waste trucks and also to fuel and maintain your trucks. However, this is what it would cost us to start Green Angle® Waste Paper Collection 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 for 6 months (Re – Construction of the facility inclusive) – $100,000.
- The amount required to finance the purchase of the first set of waste 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 waste paper collection company in the United States of America.
Generating Funds/Startup Capital for Green Angle® Waste Paper Collection Company
Green Angle® Waste Paper Collection Company is a private business that will be solely owned by Mr. Gordon Green. He will be the sole financier of the company but may likely welcome other business partners when the 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.
WASTE PAPER 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 the 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 Green Angle® Waste Paper Collection 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 waste paper collection and disposal 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.
Green Angle® Waste Paper Collection 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 waste paper disposal equipment: In progress
- Renting of Office Facility (Parking Yard for our waste collection trucks) in Salt Lake City – Utah: 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 the needed 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 (networking and membership of relevant companies that are into the generation of paper waste): Completed