Entrepreneurship Mgt Final

8/8/2019 Entrepreneurship Mgt Final

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PROJECT BUSINESS PLANENTREPRENEURSHIP

RECYCLING PLASTIC PLAN

CLEAN EARTH RECYCLING (CER)KORANGI INDUSTRIAL AREA BLOCK- 10KarachiTEL: 9250006 9FAX: 9250011


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OUR STATEMENT OF CONFIDENTIALITY

The undersigned reader acknowledged that the information provided by theClean Earth Recycling in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of Clean Earth

Recycling.

CLEAN EARTH RECYCLING (CER)Signature


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OUR STATEMENT OF FINANCIAL NEEDS

There are three primary financial statements: The balance sheet, incomestatement and statement of cash flow. Each one of these statements isequally important in communicating the existing or projected financial

health of the recycling business. These statements are prepared at theend of the financial year to assist our business to consistently establish,meet goals and objectives.

INCOME STATEMENT:1. The major category in this statement are revenues and expenses

2. Both revenue and statement are to be recorded in the year theyare earned or expensed, not when the actual cash is paid or received

3. Revenues: sales revenue, service revenue, and interest revenue

4. Expenses: salaries of executives, staff salaries, R&D expenses,bad debt expense, depreciation for the current year expense,interest expense, and income tax expense

CASH FLOW STATEMENT:

1. This financial statement deals with the cash transactions of thebusiness in a financial year.

2. Each period for which the cash flow statement is prepared beginswith a beginning cash balance (which may be zero).

3. Examples: any revenue received in cash is added and expensespaid in cash are subtracted. The only transactions which arerecorded in this statement are those which have been made inCASH.


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TABLE OF CONTENTS

Executive Summary.1.0

Industry Analysis .2.0Future outlook and trends2.1Analysis of competitors2.2Market segmentation ...2.3Industry forecast2.4

Description of Venture3.0Product3.1Services..3.2Size of business3.3Office equipment and personnel.3.4

Background of entrepreneurs..3.5Marketing Plan..4.0

Form of ownership..4.1Identification of partners4.2Authority of principals4.3Management team backgrounds.4.4Roles and responsibilities of members of organization.4.5

Organization Plan 5.0

Form of Ownership ....5.1Identification of Partners.. 5.2Management Team Background .5.3Role and Responsibilities..5.4

Assessment of Risk.6.0Evaluate weakness of business ...6.1New technologies6.2

Financial Plan7.0Sources of funds..7.1

Performa income statement...7.2Performa balance sheet..7.3Cash flow projections..7.4

Appendix8.0


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1.0-EXECUTIVE SUMMARY

The purpose of the proposed clean earth Recycling Plastic Plan is toprovide resources which seeks to meet the day to day need of plasticconsumable,

The growing utilization of plastic in industrial and consumer applications,combined with increased consumer awareness surrounding solid wasterecycling, has lead to increase demand for recycled plastic materials for recycling

Replay Plastics will capitalize on the opportunities in the recycled resinand packaging Markets through two main divisions: a Recycling Divisionand a Packaging Division.

The sophisticated washing treatment plant installed at premises enablesclean earth recycling to produce high quality plastic raw materials andplastic products made from hundred percent post industrial wastes.

The plastic is then dried and extruded into high quality recycled granuleson the Companys double vented Japanese extruders. And in turnproduced a large variety of value added products

Clean earth Recycling is earth friendly and it provides a clean environment to thispart of the world. We firmly believe that it is everyones responsibility to recycleeverything they can because they can make the difference. We are trying so hardto stem the tide of pollution that is overwhelming our beautiful planet. Weencourage you to take a part in it


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2.0-INDUSTRY ANALYSIS

2.1 FUTURE OUTLOOK AND TREND

Sales passing 15 million in first year, 31 million in year 2, growing to $43million due to high demand in the region.

Gross margin of 35% or more in first year, 45% in second year then 50%or more.

Net profit of 13% in year one, then exceeding 20% annually starting inyear two.

The main key to success is that we will buy all kind of industrial/ post consumer plastic materials and scraps in various forms, likebaled/fluff/sheet/powder/rolls/others.

Along with good resources we have enrich management and marketingcapabilities to promote our business to provide efficient resources. Theforecasted benefits we will be going to avail are as follows: to avail are asfollows:

05000000

1000000015000000200000002500000030000000350000004000000045000000

2009 2010 2011 2012

salesgross marginnet profit


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2.2 ANALYSIS OF COMPETITORS

Plastics' competitive edge rests with its proximity to its target markets, as well asthe industry knowledge, reputation and contacts of its senior management. Their many years of direct experience have led them to identify this unique opportunityand put together the technology and sources to take advantage of it. Their reputation in the specific market segment will result in the achievement of long-term commitments for our production

2.2.1 OUR COMPETITORS

We have already surpassed the following characteristics through strategicplanning and forecasting, which will deal the most common competitive issues inour future run. Such issues are

Patents We have already applied for our product under Trade Mark andPatent Law

High start-up costs-In many cases, this barrier is the most daunting onefor small businesses, we have huge investors and we encourage more topromote us.

Knowledge-Lack of technical, manufacturing, marketing, or engineeringexpertise apart from other competitors, we will resolve it as top level

management of our company is high skill and experiences. Market saturation-It is a basic reality that it is more difficult to carve out a

niche in a crowded market than it is to establish a presence in a marketmarked by relatively light competition. We are not going to sell in openmarket. But our plan is to provide distributors the chance to earnthemselves and earn us revenue as target planning.

2.3 MARKET SEGMENTATION

We have already selected certain product to out market segmented audience.Such services are Consulting,

Size Reduction/Griddling, Subcontracting Jobs,

Fine Separation,


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Dry Blending.

2.4 INDUSTRY FOCUSOur facility is equipped with the latest state-of-the-art single and twin screwcompounding equipment. Each of these instruments incorporates computer controlled operations and data acquisition to ensure the optimum product qualityand lot-to-lot consistency.

Now under the Clean Earth Recycling umbrella all the companies are dedicatedto providing a superior level of service and quality. If you would like to try this for yourself visit the online catalogue or contact us


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3.0 DESCRIPTION OF VENTURE

3.1 PRODUCTS

We have wide verities of product to offer which are carefully designed as per therules and regulations of IS0 9001-2000 to provide better quality plastic products /raw materials.

3.1.1 REPROCESS GRANNULESThe Reprocessed Grannules we offer has an excellent balance of impactstrength and flexure modulus as well as offering high melt flow and goodprocessability.

3.1.2 GARBAGE BAGSWhen it comes to Garbage bags, Refuse sacks, Refuse Garden sacks,Bin Liners and standard can liners, Modern offers quality, reliability andcustomer service at competitive prices.

3.1.3 PLASTIC PIPESExcellent mechanical strength and impact resistance. Highly controlled production processes leading to high quality pipeproducts. No requirements for protective coatings. 3.1.4 PET BOTTLESA technology leap that breaks the mold. With a Bottle that provides all themultiple advantages of PET. Its lightweight, its shatterproof, and itsrecloseable

3.1.5 PLASTIC MOLDED PRODUCTSOne of Clean Earth Recycling main aims is the drive for new andinnovative techniques to provide cost effective solutions. Our house holds

products such as Hangers / Buckets / Cups and other

3.2 SERVICES Consulting, Size Reduction/Grinding,

Subcontracting Jobs,


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Fine Separation,

Dry Blending.

3.3 SIZE OF BUSINESS Strategist , Directors, Investors

Top Level Management 3 Managers, Planning, Distribution & Finances

Researchers , 5- 6 according to plant resources and new conducting

operations Office Staff, 10-15 Accountants, Administration, Sales Rep, Outdoor

Clerks Non Contractual Employee. 5 Peon and Sweepers to keep it clean

Plant Workers , 10 Shift operators and technician

3.4 OFFICE EQUIPMENT & PERSONNEL

Heavy Duty Machineries at Plant

Office Furniture, Chairs, Tables, Filing Closet,

Electronics, Computers, Servers, Routers, Radio Link Tower etc

Accessories, Papers, Pen, Files etc

3.5 BACKGROUND OF ENTREPRENEUR Entrepreneur is currently studying in Bahria University 6 th Semester, and

having family history of running different entrepreneur businesses.


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4.0 MARKETING PLAN

4.1 PRICING

CLEAN EARTH RECYCLING has chosen to focus on the production of plasticpackaging materials from recycled post-consumer beverage bottles. Because of the industry experience and expertise of the management, we have identified asignificant available market in the Pakistan

UNIT PRICES 2009 2010 2011 2012Recycled Bags 0.30 0.35 0.36 0.40Recycled Mold Products 4.75 5.75 6.75 7.75Recycled Bottle 0.50 0.55 0.60 0.65

Recycled Pipes 14.99 16.99 18.99 20.99

Direct Unit Costs 2006 2007 2008 2009Recycled Bags 0.10 0.15 0.20 0.25Recycled Mold Products 2.25 3.50 4.75 6.00Recycled Bottle 0.32 0.35 0.38 0.43Recycled Pipes 9.50 11.75 12.80 13.17

4.2 DISTRIBUTION All of our initial marketing strategy will be to secure contracts in that

segment, and after reaching full planned capacity, look to grow in concert

with that segment and related markets. We see little need at present for further market research and

development, and will focus on continually updating our production

technology in an effort to remain in the forefront of our chosen

marketplace

4.3 PROMOTION PRODUCT FORECASTMilestone Start Date End Date BudgetAdvertising 01/06/2009 31/06/2011 Rs.5, 096,256Banners 01/01/2010 31/12/2012 Rs.1, 553,896

News paper Adds 01/01/2010 01/01/2012 RS.1, 099,153Brochures 01/01/2010 31/12/2010 Rs.226, 153Rewards & Incentives 01/01/2011 31/12/2011 Rs.300, 000


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Awards 01/01/2012 31/12/2012 Rs.824, 542Scholarships 01/01/2012 31/12/2012 Rs.1, 000,000Totals Rs.10,100,0004.4 CONTROLS

Because the Company is a start-up, our milestones will surround theestablishment of continuing facilities, confirmation of sourcing and salescontracts, equipment acquisition and installation, staffing and training, andinitiating production

Order Equipment Secure Location

Hire & Trained Skilled Labor

Hire Plant Manager


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5.0 ORGANIZATION PLAN

5.1 FORM OF OWNERSHIP

Clean earth recycling is owned by the initial founders, students of Bahria

and other investors who are the proposed three executives of the

operating entity. The plan was conceived and developed by these individuals, with the

intent to apply their extensive experience and contacts in the industry to

building a successful profitable corporation

5.1.1 START UP SUMMARY

Our largest Start-up Requirement is the building of the recycling andextrusion facility. Its final value at completion is listed below as a long-termasset of 7,620,000. Aside from the building itself, we need 2,500,000 inmachinery and fixtures, 5,000,000 of inventory (plastic raw materials) andcash to cover us through the initial year.

5.2 IDENTIFICATION OF PARTNERS

Bahrains, are the active partners, the student studying in BahriaUniversity 6 th Semester. Along with Investors from different part of thePakistan enjoying their return for the initial investment they have made topurchase Bonds of Clean Earth Recycling

5.3 AUTHORITY OF PRINCIPALS

Chief Executive Office along with the Top, Lower and Middle Managers playingtheir parts. Also to focus on stakeholder whereas the future Investors.

5.4 MANAGEMENT TEAM BACKGROUND

CLEAN EARTH RECYCLING currently has commitments from customers topurchase all of the initial production capacity. Excess flake will be sold to outsidecustomers. All contractual planned and skilled labor from top managers up tolower plant workers will be higher based on expertise and qualification.


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GENERAL AND ADMINISTRATIVE PERSONNEL RESPONSIBILITIES

President To make decisions

Vice Pres COO To assist in making decisions

CFO To control of all financialoperations and

forecasting

Plant Manager To achieve by producing as per given target

Accountant Day to day balancing of

books

Clerk To assist in miscellaneousactivities

Shipper Receiver To keep track of inventories


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6.0 ASSESSMENT OF RISK

6.1 EVALUATE WEAKNESS OF BUSINESS

6.1.1 LIMITED SUPPLY OF RAW MATERIAL

Recycled Plastics are in high demand, and demand is currently under-

supplied. Many manufacturers are delaying expansion because of uncertainty of

supply. Entrants would have to consider sourcing post-consumer or post-

industrial waste and clean and refine it rather than attempting to

purchase flake on the open market.

6.1.2 Equipment costs are high and industry specific, resulting ina high exit cost.

Because of the scarcity of RPET flake, entrants may be forced to

establish cleaning and refining facilities for post-consumer bottles. The equipment required is costly and very industry specific. It would not

easily be re-sold as a system. There is a market for used extrusion equipment, which normally sees 60-

70% of new value being realized.

6.1.3 Vertical integration is an important consideration anddifficult to accomplish successfully.

Because of the scarcity of RPET resin, and to maximize profit potential,entrants must consider a two-stage production facility.

Cleaning and refining post-consumer bottles and extruding the resulting

flake into commercial products requires a management team such as


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Replay has, with a broad range of expertise, experience, industry

contacts and knowledge in both areas.

6.1.4 Firm contracts for supply and sales . Replay Management's industry contacts will allow us to secure contracts

for both supply of feed stock and sale of finished goods.

6.1.5 Freight is a major cost of operations; proximity to source of supply and markets is crucial .

Hauling plastic materials are expensive so entrants will have to consider

establishing facilities close to materials and markets.

Entrants with existing operations would have to consider new separate

facilities in many cases, reducing economies of scale and making

management more difficult.

6.2 NEW TECHNOLOGIES

6.2.1 RPET FLAKE

The current pricing for virgin resin is 0.65-0.73 per lb. and 0.42-.53 for RPET flake. The new spread between the two has traditionally beenmaintained at approximately $0.20 per lb. Technological changing hasascertained great return.

6.2.2PET FILM & SHEETThe reported market demand (to replace virgin PS, PVC and PET) if RPET was available is estimated at 1 billion Current pricing for RPETsheet is 0.70-0.79 per lb. This technology for Bottle reshaping anddesigning have been adopted by different international company

6.2.3RPET STRAPPINGThe total reported domestic plastic strapping market is 240 million. Of this market, industry usage of virgin polypropylene is 132 million and of PET is 108 million. Strapping technology have been advanced


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7.0 FINANCIAL PLANS

7.1 SOURCES OF FUNDS Stakeholder

Shareholders

Investors

Money Market

Financial Institutions

7.2 PERFORMA INCOME STATEMENT

INCOME STATEMENT

Revenue:Gross Sales 0.00

Less: Sales Returns and Allowances 0.00Net Sales 0.00

Cost of Goods Sold:Beginning Inventory 0.00Add: Purchases 0.00

Freight-in 0.00Direct Labor 0.00Indirect Expenses 0.00

0.00Less: Ending Inventory 0.00

Cost of Goods Sold 0.00

Gross Profit (Loss) 0.00 Expenses:


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Advertising 0.00Amortization 0.00Bad Debts 0.00Bank Charges 0.00

Charitable Contributions 0.00Commissions 0.00Contract Labor 0.00Credit Card Fees 0.00Delivery Expenses 0.00Depreciation 0.00Dues and Subscriptions 0.00Insurance 0.00Interest 0.00Maintenance 0.00Miscellaneous 0.00Office Expenses 0.00Operating Supplies 0.00Payroll Taxes 0.00Permits and Licenses 0.00Postage 0.00Professional Fees 0.00Property Taxes 0.00Rent 0.00

Repairs 0.00Telephone 0.00Travel 0.00Utilities 0.00Vehicle Expenses 0.00Wages 0.00Total Expenses 0.00

Net Operating Income 0.00

Other Income:

Gain (Loss) on Sale of Assets 0.00Interest Income 0.00Total Other Income 0.00


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Net Income (Loss) 0.00

7.3 PERFORMA BALANCE SHEET

BALANCE SHEET

Current Assets:Cash 0.00Accounts Receivable 0.00Less: Reserve for Bad Debts 0.00 0.00Merchandise Inventory 0.00Prepaid Expenses 0.00

Notes Receivable 0 Total Current Assets 0.00

Fixed Assets:Vehicles 0.00Less: Accumulated Depreciation 0.00 0.00Furniture and Fixtures 0.00

Less: Accumulated Depreciation 0.00 0.00Equipment 0.00Less: Accumulated Depreciation 0.00 0.00Buildings 0.00Less: Accumulated Depreciation 0.00 0.00Land 0.00

Total Fixed Assets 0.00

Other Assets:Goodwill 0.00

Total Other Assets 0.00Total Assets 0.00

Liabilities and CapitalCurrent Liabilities:Accounts Payable 0.00


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Sales Taxes Payable 0.00Payroll Taxes Payable 0.00Accrued Wages Payable 0.00Unearned Revenues 0.00

Short-Term Notes Payable 0.00Short-Term Bank Loan Payable 0.00

Total Current Liabilities 0.00

Long-Term Liabilities:Long-Term Notes Payable 0.00Mortgage Payable 0.00

Total Long-Term Liabilities 0.00

Total Liabilities 0.00

Capital:Owner's Equity 0.00

Net Profit Total Capital 0.00

Total Liabilities and Capital 0.00


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7.4 CASH FLOW PROJECTIONS

Cash Flow Budget Worksheet

[Month] TotalBeginning Cash BalanceCash Inflows (Income):

Accts. Rec. Collections 0.00Loan Proceeds 0.00Sales & Receipts 0.00Other:

0.000.00

Total Cash Inflows 0.00 0.00Available Cash Balance 0.00Cash Outflows (Expenses):

Advertising 0.00Bank Service Charges 0.00

Credit Card Fees 0.00Delivery 0.00Health Insurance 0Insurance 0Interest 0Inventory Purchases 0Miscellaneous 0Office 0Payroll 0Payroll Taxes 0Professional Fees 0Rent or Lease 0Subscriptions & Dues 0Supplies 0Taxes & Licenses 0Utilities & Telephone 0


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Other:Subtotal 0.00 0.00

Other cash out flows:

Capital Purchases 0.00Loan Principal 0.00Owner's Draw 0.00Other:

0.00Subtotal 0.00 0.00Total Cash Outflows 0.00 0.00

Ending Cash Balance 0.00


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8.0 APPENDIX

Documents

Entrepreneurship Mgt Final