Busines Plan 1

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BUSINESS PROPOSAL PLAN

BUSINESS REPORT

Executive Summery

Raj & Co. Recycling,LLCs Bihar area of business will be to collect, recycle, and marketwaste from municipality waste processing plants for use as a consumer good. Thisrecycled product will meet two critical needs:

1. It will give municipalities a feasible and cost effective alternative to land fillingthe waste, and

2. It will help meet the growing demand for organic soil enhancers andfertilizers. The material that will be recycled is human waste sludge.

Our recycled waste will be targeted toward fertilizer manufacturers, nurseries,

landscapers, farmers, government agencies, golf courses, and others. All of thesepotential customers will benefit from the compost's numerous soil enhancingcharacteristics.

Additionally, we will offer a service to waste processing plants owned by municipalities.Currently these plants face several issues regarding the disposal of human wastesludge. Landfills are filling up and costs of disposal are rising. Raj & Co. Recycling willsolve this problem by accepting this waste at a nominal charge and recycling it into auseful product.

Raj & Co. Recycling is entering a niche market in that human waste sludge has not

been recycled on any sizeable scale in Bihar & Up. This is a unique and viable conceptthat addresses the needs of various customers and reaches an untapped market withtremendous growth potential.

One of the most attractive aspects is that the business is projected to attain a strongcash position and achieve profitability in the first year of operation. Due to a large needfor these products and services, and a lack of direct competition, our projection of quickprofitability is attainable.

Our in-depth research pertaining to human waste's positive soil enhancementcharacteristics and its many potential uses is well advanced. The concept has been

tested on a small scale and the results, upon analysis, were found to be a high qualitycompost. Research will be an ongoing process for the company; one particular area ofinterest is the possibility of qualifying the product as a fertilizer. In this case, theprofitability of the product would nearly double.

We already have an advance order for 500 tons, and one fertilizer manufacturer and alarge landscaper have committed to purchasing 600 tons of our product annually.


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Additionally, various municipalities have expressed keen interest in paying us to accepttheir waste.

Company Summary:-The legal name of the company will be Raj & Co Recycling,LLC.

Due to its tax benefits, a Raj & Co. will be advantageous.

Ownership Management:-Raj & Co. Recycling is owned by its founder and president,

Mr Abhishek Raj & Gaurave Raj will be an active participant in management decisions.

This Company is Sole proprietorship.

Objective & Key:-

Overcome perception issues that may exist with using compost made fromhuman waste sludge.

Establish and build relationships and trust with customers to help shield fromfuture competition.

Expand rapidly to control the market.

Offer reasonable prices.

Marketing Opportunity:-

Human waste sludge has long been a waste problem for municipalities whichoperate waste processing plants. In metropolitan areas that handle large amounts ofwaste, human sludge is generally disposed in volume at municipal landfills.Raj & Co. Recycling business model presents an opportunity to recycle a landfill bound

waste, save the landfill space, and give the consumer the opportunity to benefit from themany positive properties of the composted material.Human waste sludge contains a high nutrient value which can be composted to producea quality plant food and soil enhancer at far lower prices than chemical fertilizerscurrently on the market.

Competitive Advantage:- The Raj & Co. Recycling business model adds great valuethrough both our service and our product.

Our service, accepting human waste sludge from municipalities, partially relieves the

burden on rapidly filling landfills, and provides an alternative disposal channel tomunicipalities facing a legislative deadline which threatens to cut off their traditionalmeans of disposing of the waste. Our product, composted human sludge, responds tothis market trend. Compost has many advantages over traditional fertilizer. Traditionalchemical fertilizer sells for approximately 25000 per ton while our compost will be pricedat around 5000-10000 per ton. Our compost is similar to fertilizers; however, it reactsdifferently from most fertilizers. Compost releases nutrients over a long period of time,on average two to three months. The chemical reaction in present fertilizers takes place


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immediately and usually lasts no longer than three to four weeks. After three to fourweeks, the customer may have to buy more fertilizer, costing both time and money. Ongolf courses, when chemical fertilizer is applied, golf must cease for the day; however,when compost is applied, golf can continue uninterrupted. As demonstrated, composthas many advantages over traditional fertilizers.

Our human sludge compost also has distinct advantages over other types of compostsas well. To be a viable, lucrative, growing business, we must be a reliable source ofcompost supply to our customers. To serve the market and grow in it availability of ourproduct cannot be intermittent or "hit and miss." We must be able to meet the demandevery time within a reasonable delivery time. By the inherent nature of the business,human waste sludge will always be available for composting in large, dependablequantities, at one or a few locations, at a constant/stable quality and at a stable cost.Other composts cannot compete with this in that similar quantities are not available fromso few locations which increases their labor and transportation costs related tocollection. Additionally, if collection is from farms, they may use horse manure, poultry

manure, cow manure, hog manure, etc. in varying quantities over time. This inherentlywill result in a product that constantly changes in content and quality. In fact customersview other composts as being of unpredictable availability and unpredictable quality.

Market Strategy

The marketing strategy is the core of the main strategy:

1. Emphasize high value, high quality products and services.

2. Build a relationship oriented business.

3. Focus on municipalities, fertilizer manufacturers, landscapers, nurseries, and the

federal government as key initial markets.

Financial Summery

Capital Asset Purchases

Processing Plants 2 x 190,460380,920

Processing Plants built in-house 2 x 40,00080,000

Sheds 48'x72' 4 x 18,500

74,000

Skid Truck 2 x 73,000 (avg price)146,000

Backhoe40,000

Front-end Loader 2 x 50,000100,000


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Tandem Dump Trailer6,000

Total 826,920

s

Start-up RequirementsStart-up Expenses

Legal 500

Phone/utilities deposits 500

Licenses/tax deposit 4,000

Insurance 1,000

Brochures/sales literature 500

Advertising 2,500

Employee salaries 16,680

Skid boxes, 15 @ $3,000 ea. 45,000

Welding and cutting torch 10,000

Furniture and supplies 5,000

Website development 1,500

Miscellaneous 5,000

Total Start-up Expenses 92,180

Start-up Assets

Cash Required 80,900

Start-up Inventory 0

Other Current Assets 0

Long-term Assets 826,920

Total Assets 907,820

Total Requirements 1,000,000

Company summery:-

. The legal name of the company will be Raj & Co Recycling .

Vision:-

ToMake The Earth Evergreen & Pollution Free

Mission:-

Raj & Co. Recycling mission is three.

Our first responsibility is to ensure the financial well being of the business.


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Second, is to provide municipalities with an economical, alternative for thedisposal of human waste sludge.

Third, is to provide a top quality, recycled material to the consumer so that theymay benefit from compost's many good properties and organic elements.

In addition, we hope to build in the consumer a positive feeling about the feasibility ofusing recycled human sludge as a fertilizer.

Objective:-

1. Sales passing 10 million in first year, 20 million in year 2, growing to 30 million.

2. Gross margin of 20% or more in first year, 30% in second year then 40% or more.

3. Net profit of 15% in year one, then exceeding 25% annually starting in year two.

Company Ownership:-

Raj & Co. Recycling is owned by its founder and president, Mr Abhishek raj & Gaurave

Raj will be an active participant in management decisions.

Management Summary:-

Mr. Abhishek Raj & Gaurave Raj are the mind behind Raj & Co.Recycling. He saw theneed for human waste sludge to be recycled and used in several different andenvironmentally beneficial ways. With the development, determination, motivation, andpersistence of everyone involved, Raj & Co.Recycling will be the leading producer ofcomposted human waste sludge in Bihar & U.P and a leader in the North-East region.

The management team of Raj & Co. Recycling will be comprised of the following

executive positions:

President: Abhishek Raj has a degree in Agriculture from IRMA College and hasspent 30 years in the farming and agriculture industry. He has extensivelyresearched and tested this composting process to ensure that it works with humanwaste sludge, and is thoroughly familiar with the process from start to finish. Mr.Rajhas experience in the operation, fabrication and maintenance of heavy equipment.This ability will be critical to the success of the business.

Operations Manager: Mr Gaurave Raj has operated a landscaping firm for 7 yearsand is intimately familiar with the uses of compost materials as well as the markets.

Controller: Mukesh Kumar & Gautam Kumar has a background in business and

management and will handle administrative details such as taxes, check writing andbookkeeping.

At Raj & Co. Recycling, the management team believes that this unique way ofrecycling will change the way consumers look at fertilize and compost products. As withany company, the responsibilities and duties of the management team are veryimportant and cannot be taken lightly. Raj & Co. Recyclings management will worktogether as a team to create a successful company.


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Management Group:-

The responsibilities involved in the company Raj & Co Recycling are great andabundant. Raj & Co. Recycling's main purpose is to appeal to municipalities by offeringa human waste disposal alternative, and to environmentally conscious minded

consumers by developing products that include recycled human waste. Each executivemember will have several responsibilities that are imperative to fulfill the duties inproducing such unique products.

As founder and president of Raj & Co. Recycling, Mr. Abhishek Raj & Gaurave Raj willbe responsible for the entire operation. Some of his duties will include overseeing theareas held by the other company executives, as well as the output produced by otheremployees. He will be in charge of the company's public relations. He will also have the

job of hiring dedicated people and ensuring employees put their best efforts into theproduction of Raj & Co.Recycling's products. He will have the lead role in makingdecisions that concern the well being of Raj & Co.Recycling.

Mr. Gaurave Raj has an important job as operations manager. His job will be crucial inthe growth of Raj & Co.Recycling. He will ensure that day-to-day operations areconducted such that materials are received, methods and processes are standardized,and production is maximized to ensure uniform production of compost materials. Thisduty will entail establishing a good working relationship with production line employeesbecause without them Raj & Co.Recycling's products will not be produced.

Mr. Kumare Brother will be responsible for Raj & Co.Recycling's financial managementoperations including accounts payable, accounts receivables, and bookkeeping.

Location & Facility:-

Raj & Co. Recycling will operate in Patna Bihar & Noida in UP. The recyclingfacilities will be located on a 58+ acre property owned by company president, 5acres will be set aside for the recycling facility set up and operation. This site is idealas it provides access to local municipalities and to Interstates 77 and 81. Also thereis room for expansion as the business grows.

sAs the business expands to additional counties in subsequent years, we willneed to lease property on which to site our facilities.

Government Policy:-

Because raj &n Co.Recycling recycles a waste product and incorporates it into anenvironmental product, the company is under the potential jurisdiction of theEnvironmental Protection Agency. The recycling and sale of human waste may be


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regulated by federal or state authorities. Raj & Co.Recycling will obtain all requiredfederal and state permits and licenses to operate its facilities.

PRODUCT & SERVICE

Our products and services offer needed solutions to municipalities and the market fororganic soil enhancement products. Raj & Co.Recycling will be the market leader as thefirst company in the region to collect, compost, and recycle human waste sludge for useas a fertilizer and a soil enhancer. Raj & Co.Recycling realizes that consumers todayare more conscious of recycling and of their environment. Because of this trend, there isa growing trend among consumers to move away from traditional chemical basedfertilizers more natural organic materials.

We will offer one major service and major product. Our major service will be to offermunicipalities an alternative means for disposing of human waste sludges generated inwaste treatment plants. Our major product will be recycled (composted) human wastesludge for use as a fertilizer.

Description:-

Nationwide, many landfills are closing or exhausting their remaining capacity. However,due to environmental restrictions, zoning laws, and other regulatory and bureaucraticdelays, very few new landfills are opening to offset the looming space crisis. Meanwhilemunicipal waste, including human waste sludge, continues to flow in greater volume.Handling their waste streams has become a major problem for most municipalities. Withmore waste created daily, landfills nationwide are rapidly facing a capacity crisis.

Considering this environment, we will offer municipalities an extremely valuable service-- an alternative means for disposal of their human waste sludge. Municipalitiescurrently pay landfills a "tipping" fee to dispose of their waste. The tipping fee is typically1500 to 5000 per ton; the average tipping fee in North-East is 3200 per ton. As notedabove, in the near future many landfills will stop receiving human waste sludge andprices are expected to increase dramatically due to simple supply and demand. Not onlywill tipping fees increase, but as municipalities have to go farther and farther afield tofind accommodating landfills, transportation costs for the waste will also increase. Wewill help them solve this problem, and ultimately save them, and their tax payers,money. We will place skid boxes at their waste treatment plants and remove the sludge

for them. The tipping fee, a fee for skid box rental, and a fee for picking up and returningthe skid boxes will be paid to Raj & Co.Recycling by the municipalities. This will be doneat a price competitive with or lower than what they are now paying.

Technology:-

Composting is biological decomposition of organic materials. Bacteria, fungi,protozoans, insects, worms and other organisms typically play a part in the


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decomposition process. Composting is natures means of recycling. I t will turn grassclipping, leaves, vegetables, fruit and other organic materials into a very beneficial soilamendment. Composting is also an effective means of reducing the amount of solidwastes going into our nations landfills. Raj & Co.Recycling's process will greatly speedup the natural composting process.

As briefly described above, the human waste sludge used in Raj & Co.Recycling'sprocess will be picked up from municipalities in skid boxes provided by Raj &Co.Recycling. Accepting the waste, rental of the boxes, and transportation will all besold as a service to the municipalities.

Advantages of this recycling/composting method are as follows:

Recycling is completed rapidly in three days. Other methods take 90 plus days. Waste materials in the unit are isolated from the environment. The manager has precise control of moisture, temperature, and aeration during

the process to ensure the most efficient composting possible. In-vessel composting can maintain a rapid decomposition process year-round

regardless of external ambient conditions. The material can be used forimprovement of organic matter content and fertility of soil.

Future Product & Service:-

In the future, Raj & Co.Recycling plans to expand by opening additional recyclingfacilities throughout North-East and beyond. We ultimately intend to become the methodof choice for disposal of human sludges.

Market Analysis:-

There are customers at both ends of our supply chain that will benefit from our servicesand products. Municipalities will benefit from our service by having an alternative meansof waste disposal. Other potential customers who will benefit from our compost productinclude turf farms, fertilizer manufacturers, nurseries, landscapers, golf courses,homeowners, and even the federal government for use in highway constructionreseeding. Therefore, we have two basic market segments; those waste treatmentfacilities which will benefit from our services and consumers who will benefit from ourproduct.

Five major market segments for compost have been identified:

Agriculture (for food and nonfood crops and sod farms).

Landscapers (for industrial and commercial properties; golf courses, cemeteries,and athletic fields; landfill covers; and damaged soils).

Nurseries (for plant and forest seedling crops and reforestation projects).

Public agencies (for highway median strips, parks, recreational areas, and otherpublic property).


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Residents (for home landscaping and gardening)

Market Segmentation:-

The following table shows information regarding the number of potential customers in

our target markets. This data is based on information taken from superpages.com.

As reflected in the table, there are approximately 34 waste treatment plants in WestVirginia. These are all potential customers for our collection service and sources ofmaterial for compost processing. Additionally, there are a total of 1,779 potentialcustomers in the initial target market for our compost product. This includes 11 fertilizermanufacturers, approximately 30 sod/turf farms, 324 nurseries, 483 golf courses, and931 landscapers.

.

Market Growth:-

The possibility of growth in this market is realistically huge. Consider the followingsimple facts:

Municipalities must have an alternative means for disposing of human waste; weoffer a great alternative to meet that need.

Market trends are skewing more and more toward organic soil enhancements andaway from chemical fertilizers; we meet this need as well.

We have no direct competition in North-East Country.

All of this means that Raj & Co. Recycling is poised to see tremendous growth.

Business Service Analysis:-

Our service offers a feasible, even desirable, alternative to traditional means ofdisposing of human waste. Our product is a value added, soil enhancer that appeals to

Market anlysis

Municipalities

Compost Users

other


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the growing environmental conscientiousness among consumers. Direct competition isalmost nonexistent. We intend to position ourselves as the logical, economical choicefor human waste disposal and compost production in North-East Of Country.

Competitors:-

As noted earlier, direct competitors are essentially non-existent in the North-EastRegion. Our major indirect competitors are chemical fertilizer manufacturers. However,their products are more costly and do not address the market's trend toward organic,natural soil enhancers.

Some municipalities have begun composting operations in an attempt to deal withwaste disposal issues. They typically use a method in which sludge is placed on theground in windrows which are turned periodically for aeration. This is an inefficientmethod of composting primarily because it is slow, taking 90 or more days, whichmeans that availability is uncertain for consumers. Also, in this composting method highenough temperatures are not achieved to kill harmful bacteria and seeds that maysprout into weeds. Additionally, municipalities are not businesses, which mean theirmarketing capabilities are limited. Their market primarily consists of local homeownersand businesses, which ignores the greater market. Also, this composting methodrequires a lot of ground space which restricts the operation. Finally, odor can be aproblem for municipalities due to nearness of local residents or businesses. For thesereasons, municipality composting efforts are not considered a competitive threat.

Strategy and Implementation Summary:-

We have clearly defined our target markets and have differentiated ourselves byoffering a unique solution to our customers' needs. The primary focus of our marketingstrategy must be to increase sales and profitability business quickly. This can beachieved by face-to-face contact, and an effective publicity and promotion campaign.

Value Proposition:-

Our value proposition is two-fold.

Value proposition for municipalities: We offer a service that is a cost effective,budget saving means to addressing a growing waste disposal problem.

Value proposition for end users of compost material: Compost is a valuable soilamendment that improves many soil properties, such as porosity, structural andthermal stability, water retention, resistance to wind and water erosion, and


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tillage. Compost also decreases soil crusting, regulates storage and release ofnutrients, enhances the development of beneficial microorganisms, builds upplant resistance to parasites and disease, and promotes faster root development.Plants and crops treated properly with compost may produce higher yields andhave less weed growth. Chemical fertilizers do not offer this value.

Competitive Edge:-

The competitive edges we have are summarized as follows.

Cost: The price of our compost product is much less than chemical fertilizers. Organic product: We offer an organic product which is responsive to current

market trends. This includes all of the advantages organics offer over chemicals. Recycled: Recycled products characterize a "caring company" and are more

appealing to the customer's changing attitude toward organic fertilizer asopposed to chemical fertilizer.

Elimination of disposal issues: Municipalities now have a waste that takes uplandfill space. Our service recycles the waste which saves valuable landfill

space. More effective between application times: Normal times between applications

can range from two to four weeks. Our product lasts for many months, therebysaving the customer time and money (no additional expenditure for moreproduct).

Marketing Strategy

The marketing strategy is the core of the main strategy:

Emphasize high value, high quality products and services. Build a relationship oriented business. Focus on municipalities, fertilizer manufacturers, landscapers, nurseries, and

the federal government as key initial markets.

Promotion Strategy

Our promotional strategy will be two-fold: first phase promotion will focus on before,during, and six months following our opening; the second phase of promotion will dealwith the long term. The purpose of the first phase is to assist with rapid market entry toensure early and sustained profitability. The purpose of the second phase is to ensurelong-term growth and help propel us toward achieving our goal of expanding state wideand across the Raj & Co. region.

First Phase Promotions:-


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Publicity: We will send news releases to all of the major newspapers in North-

East RegionPublication of news articles about Raj & Co.Recycling will lend great credibilityand be an excellent way to let all target markets know about this new, innovative

business and the solutions it provides for municipalities and users of compost orfertilizers. We will similarly seek publicity in the form of news stories from localradio and television stations.

Advertising: We will utilize direct mail and face-to-face promotional strategies toraise awareness about our products and services in the target markets.Newspaper advertising may also be used. Radio and television ads are notcertain; we will evaluate their effectiveness before further implementation.

Internet: We will have a content heavy website geared toward educating

potential customers about the benefits of our products and services. All literature,business cards, etc. will include our website and e-mail address information.

Alliances: We intend to form alliances with fertilizer manufacturers to use ourproduct in their fertilizer and/or distribute our product for us.

Second Phase Promotions:-

Publicity: As the business grows and expands we will continue to seekpublicity through news media to tout our successes.

Advertising: We will continue to make face-to-face contact with customersand potential customers. Mail-outs will be done again within a few months ofstart up. The second round of mail outs will be updated to reflect the benefitsprovided to customers thus far. Such mail-outs will be sent periodically.

Internet: We will continue to have a comprehensive website. The websitewill be updated to provide responses to frequently asked questions. After thefirst six months, and certainly after the first year, we will evaluate the viabilityof having target clients advertise on our site, and conversely, we will

evaluate viability of advertising on our target clients websites (if applicable).

Alliances: We will continue to seek mutually beneficial and complementaryalliances with manufacturers where applicable.


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Positioning Statement

For municipalities seeking an answer to their waste disposal problems, Raj &Co.Recycling is the service of choice and trusted strategic ally who gives them a costeffective solution.

For users of fertilizer and soil amendment products, Raj & Co.Recycling is adependable provider of low cost and consistent high quality compost products.

Pricing Strategy

The going rate per ton for compost is 3000 and up. This price is low enough to ensurerapid growth in the market yet still provide a very healthy profit, given that we have nodirect competition and chemical fertilizer is much more expensive. This is possiblebecause we are on the front end of the industry growth in this region.

Sales Strategy

Raj & Co.Recycling's sales strategy is relatively straightforward. Get the word out aboutour products and services to potential customers, educate them as to the value addedby our products and services, and the product/service will sell itself.

Our present management team will become the main sales force when operationsbegin. Raj & Co. Recycling's sales force will increase as business demand permits. Inthe first six to twelve months of operations, our sales team will focus its efforts onmunicipalities, fertilizer manufacturers, farmers, small nurseries and other relatedcompanies. The team will promote the products based on their environmental strengthsand extended duration. Raj & Co.Recycling will use other channels of selling after thefirst year. Face-to-face contact and direct mail selling are part of the selling plan.

Financial Plan:-

Our financial plan is based on receiving several loans to purchase/fabricate theproduction equipment, provide initial operating capital, and establish the customer base.

We will achieve profitability early in the first year and due to the expected high growthrate, we will realize strong profits on sales by year three.

Start-up Funding

Start-up Expenses to Fund 92,180

Start-up Assets to Fund 907,820

Total Funding Required 1,000,000

Assets

Non-cash Assets from Start-up 826,920

Cash Requirements from Start-up 80,900


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Additional Cash Raised 0

Cash Balance on Starting Date 80,900

Total Assets 907,820

Liabilities and Capital

LiabilitiesCurrent Borrowing 0

Long-term Liabilities 850,000

Accounts Payable (Outstanding Bills) 0

Other Current Liabilities (interest-free) 0

Total Liabilities 850,000

Capital

Planned Investment

Owner 150,000

Other 0

Additional Investment Requirement 0

Total Planned Investment 150,000

Loss at Start-up (Start-up Expenses) (92,180)

Total Capital 57,820

Total Capital and Liabilities 907,820

Total Funding 1,000,000

Documents

Busines Plan 1