Busines Plan 1

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  • 7/29/2019 Busines Plan 1




    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


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


    Front-end Loader 2 x 50,000100,000

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    Tandem Dump Trailer6,000

    Total 826,920


    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 .


    ToMake The Earth Evergreen & Pollution Free


    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.


    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