SCRAP METAL RECYCLING BUSINESS PLAN SAMPLE
Are you interested in starting a scrap metal recycling business in your locality?
This article will serve as a template for writing a good business plan for your recycling business.
I believe you must have acquainted yourself with the requirements you need before starting up a scrap metal recycling company. You have to put several things in place before you can plan any salvage business.
The most important of which is ensuring you have suitable machines and equipment and know how to handle them; ensuring you have adequate knowledge of where to source for used and condemned ferrous and nonferrous metals; and knowing where to sell your products after recycling.
Here is a sample business plan for starting a scrap metal recycling plant.
BUSINESS NAME: Total Finishing Metal Recycling Company.
- Executive Summary
- Vision Statement
- Mission Statement
- Business Structure
- Products and Services
- Market Analysis
- Sales and Marketing Strategy
- Financial Plan
- Sales Forecast
- Conclusion
EXECUTIVE SUMMARY
Total Finishing Metal Recycling Company is a fully registered and licensed scrap metal recycling business.
Total Finishing Metal Recycling Company will be located in an industrial area in Oklahoma, United States.
We will be fixated on recycling used and condemned ferrous and nonferrous metals and supplying to clients who need our services within Oklahoma and the United States.
Total Finishing Metal Recycling Company will be owned by Jerry Smith, an engineer with loads of experience working in the industry for over 20 years, and his long-time friend and business partner, Michael Scoffs.
We are focused on establishing this scrap metal recycling business to be among the leading scrap metal recycling companies in the United States.
The startup investment sum needed is $500,000. $100,000 each will be contributed by the owners to make up $200,000 of the total startup investment capital.
$100,000 will be borrowed from close friends and extended families, while the remaining $200,000 will be obtained as a loan from our banks.
VISION STATEMENT
Our vision at Total Finishing Metal Recycling Company is crystal clear: we want to be recognized as the standard and top quality scrap metal recycling company whose scrap metal recycling plant will produce top quality products that will be acceptable anywhere in the United States and even all around the globe.
We will achieve this vision by doing all well within our capability and permissible under the laws of the state and the United States.
MISSION STATEMENT
Total Finishing Metal Recycling Company is a company that will readily compete with the top Metal Recycling Companies out there in Oklahoma and even the leading ones in the whole United States.
Our mission is to become renowned as a scrap metal recycling business focused on providing clean and standard recycled ferrous and nonferrous metals to the relevant industries that need our services to help them minimize cost and energy.
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Also, we want to contribute our own share in ensuring our world is clean and protected from degradation and deterioration resulting from metallic material wastes buried beneath the earth.
BUSINESS STRUCTURE
Total Finishing Metal Recycling Company is a company we hope to start small in Oklahoma. Over time, we will build it into a formidable company capable of competing with the best in the United States.
We know the importance of establishing a solid business structure that can guarantee our business vision of becoming among the best in the United States.
For this reason, we will ensure we do everything within our means to hire only the right employees.
We will establish an interview-based platform to select only candidates who are hardworking, competent, driven, and have some experience in the industry.
We will disregard prejudice and subjectivity and be objective in selecting our employees. In no particular order, the following are some of the positions to be filled:
- Head, Technical Services.
- Sales and Marketing Executive.
- Client Service Executive.
- Plant Engineers / Technicians and Operators.
- Human Resources and Administrative Manager.
- Truck Drivers.
PRODUCTS AND SERVICES
Under United States laws, we are in the scrap metal recycling industry to maximize profits as best as possible. We do not just want to offer any products and services nationwide.
Still, we want to ensure we deliver the very best products and services to our customers all around the confines of the United States, whenever and wherever.
This is why we will offer the following products and services within the United States:
- Recycling of steel and iron scrap.
- Recycling of aluminum scrap.
- Recycling of copper scrap.
- Recycling of lead scrap.
- Recycling of other ferrous and nonferrous scrap metals.
MARKET ANALYSIS
Market Trends
A keen observer would realize the industry has so many market trends.
The most notable are these players, the Government, and the government campaign in favor of recycling metal scraps for raw materials instead of fetching virgin raw materials.
This is because cost and energy will be saved in the long run.
Another notable trend in the industry is that players locate their recycling plants in areas that are very close to their clients to minimize transportation costs.
Target Market
Our target market includes, but is not limited to, the following:
- Metal production industries.
- Roofing and construction companies.
- Manufacturers and distributors.
- Automobile manufacturing companies.
- Ship manufacturing companies.
SALES AND MARKETING STRATEGY
We will do everything possible to ensure we employ the right sales and marketing strategy for our business to guarantee us our spot among the leading scrap metal recycling companies in the United States.
We will start by introducing our scrap metal recycling business. We will send introductory letters and business brochures to manufacturing and production companies.
We will list our business in Yellow Pages ads and advertising in relevant business magazines, newspapers, radio, and TV stations.
We will also use the internet and social media platforms to advertise our business. Most importantly, we will create a functional website for our company.
FINANCIAL PLAN
Startup costs
The total startup investment sum required is an estimated $500,000.
Sources of Funds
The owners, Engr, will contribute part of the startup investment sum. Jerry Smith and Michael Scoffs. The other parts will be obtained as loans from our friends, extended families, and banks.
$200,000 will be contributed by the owners from their investments, savings, and sale of stocks; $100,000 will be sourced from friends and family, while the final $200,000 will be obtained as a loan from our banks.
SALES FORECAST
The following is a sales projection for Total Finishing Metal Recycling Company for the next three years.
Year One $250,000
Year Two $600,000
Year Three $1,000,000
This sales projection is based on several factors, such as the location of our scrap metal recycling business and other obtainable statistics in the industry.
However, this projection does not consider the presence of a key competitor within the exact local, no rider, or the occurrence of any significant economic meltdown.
CONCLUSION
The business plan sample above is a detailed scrap metal recycling business plan sample. This business plan sample presents all the business areas that need attention.
It presents the executive summary of the complaints, the vision, and misprints of the products and services of their clients. It’s the sales and marketing strategy to achieve the set vision.
I hope this business plan sample will serve as a helpful template guiding you to write a good business plan for your scrap metal recycling business.