YSE 2014 Business Plan Sample

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1.0 Executive Summary

The purpose of this business plan is to raise $150,000 for the development of a waste managementcompany while showcasing the expected financials and operations over the next three years. WasteManagement, Inc. (the Company) is a New York based corporation that will provide waste removalservices to customers in its targeted market. The Company was founded by John Doe.

1.1 Products and Services

The Waste Management business been developed to provide an extremely comprehensive refuseremoval and management service. The business will generate highly recurring streams of revenue fromboth businesses and residences that use the Waste Management business for their refuse removalneeds. At this time, Management is sourcing the two trucks that it will lease in order to provide services toits customer base. The third section of the business plan will further describe the services offered byWaste Management, Inc.

1.2 The Financing

Mr. Doe is seeking to raise $150,000 from as a bank loan. The interest rate and loan agreement are to befurther discussed during negotiation. This business plan assumes that the business will receive a 10 yearloan with a 9% fixed interest rate. The financing will be used for the following: Development of theCompanys office location. Financing for the first six months of operation. Capital to finance depositsfor leasing of two waste hauling trucks. Mr. Doe will contribute $25,000 to the venture.

1.3 Mission Statement

The Waste Managements mission is tobecome the recognized leader in its targeted market for refuseremoval services.

1.4 Mangement Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the wastemanagement industry. Through his expertise, he will be able to bring the operations of the business toprofitability within its first year of operations.

1.5 Sales Forecasts

Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials overthe next three years.


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1.6 Expansion Plan

The Founder expects that the business will aggressively expand during the first three years of operation.Mr. Doe intends to implement marketing campaigns that will effectively target individuals and businesseswithin the target market.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Waste Management, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, Waste Management, Inc. requires $150,000 of debt funds. Below is a breakdown of howthese funds will be used:


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2.3 Investor Equity

Mr. Doe is not seeking an investment from a third party at this time.

2.4 Management Equity

John Doe owns 100% of Waste Management, Inc.

2.5 Exit Strategy

If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significantearnings multiple. Most likely, the Company will hire a qualified business broker to sell the business onbehalf of Waste Management, Inc. Based on historical numbers, the business could fetch a salespremium of up to 6 times earnings. However, with recent fuel costs rising, the premiums for waste

management businesses have declined due to the volatility of the oil markets. It should be noted that Mr.Doe intends to operate this business for a significant period of time, and a potential exit strategy wouldnot be executed for at least five to seven years.


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3.0 Products and Services

Below is a description of the services offered by Waste Management, Inc.

3.1 Waste Management Services

The primary revenue center for the business will come from ongoing hauling of dumpsters, providingwaste management services, and hazardous materials disposal. The business will generate substantialfees from housing communities and home owners associations that contract Waste Management, Inc. fortheir ongoing waste management needs. The business will also generate significant secondary revenuesfrom the ongoing hauling of large items such as couches, refrigerators, and other large items that requirespecial handing and disposal needs.

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the waste management industry, thecustomer profile, and the competition that the business will face as it progresses through its businessoperations. Currently, the economic market condition in the United States is in recession. This slowdownin the economy has also greatly impacted real estate sales, which has halted to historical lows. Manyeconomists expect that this recession will continue until mid-2010, at which point the economy will begina prolonged recovery period. A primary concern for the Company is its ability to price its servicesaffordably during times of economic recession or spikes of oil prices. The price of oil and its associatedrefined energy products have reached multiyear highs. This increase in oil prices has caused the wastemanagement industrys costs to rise significantly. While this is a concern for the business, it is a risk andan issue faced by all other businesses as well. Mr. Doe will continue to increase prices (at a standardized

rate of markup) to ensure the profitability of the business.

4.2 Industry Analysis

Within the United States, there are approximately 8,000 businesses that provide waste management,private recycling, and removal for non-hazardous recyclable waste from construction sites. Thesecompanies aggregately generate more than $26 billion dollars per year and provide jobs for more than160,000 people. The industry is a mature, and the expected future growth rate is anticipated to equal thatof the general growth of the US economy.

4.3 Customer Profile

Management anticipates that the following individuals and entities will be customers of WasteManagement, Inc.: Individual Residences Home Owners Associations Housing Communities Municipal Agencies Commercial Enterprises

4.4 Competitive Analysis

This is one of the sections of the business plan that you must write completely on your own. The key towriting a strong competitive analysis is that you do your research on the local competition. Find out whoyour competitors are by searching online directories and searching in your local Yellow Pages. If there


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are a number of competitors in the same industry (meaning that it is not feasible to describe each one)then showcase the number of businesses that compete with you, and why your business will providecustomers with service/products that are of better quality or less expensive than your competition.

5.0 Marketing Plan

Waste Management, Inc. intends to maintain an extensive marketing campaign that will ensure maximumvisibility for the business in its targeted market. Below is an overview of the marketing strategies andobjectives of Waste Management, Inc.

5.1 Marketing Objectives

Implement a localized marketing campaign that targets individuals and homeownersassociations.

Establish relationships with municipal agencies within the targeted market. Develop an online presence by developing a website and placing the Companys name and

contact information with online directories.

5.2 Marketing Strategies

The Company intends to use a multitude of marketing strategies to promote and expand the wastemanagement businesses operations. The Company will maintain its listing in the Yellow pages, createmarketing campaigns within local newspapers, and promote the business through word of mouthadvertising. The business actively advertises its affordable contracting services. Mr. Doe intends tomaintain a website that allows customers to contact Management directly over email for more informationregarding the Companys waste management services and pricing quotes. As the Company expands, thebusiness will upgrade the website to include higher levels of functionality and support. Additionally,Management intends to continually develop a number of referral and contractual relationships withinamong municipal agencies, commercial enterprises, and housing communities. Since these businessesregularly require waste management services, Management sees a significant opportunity to partner withthese firms.

5.3 Pricing

In this section, describe the pricing of your services and products. You should provide as muchinformation as possible about your pricing as possible in this section. However, if you have hundreds ofitems, condense your product list categorically. This section of the business plan should not span morethan 1 page.

6.0 Organizational Plan and Personnel Summary

6.1 Corporate Organization


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6.2 Organizational Budget


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6.3 Management Biographies

In this section of the business plan, you should write a two to four paragraph biography about

your work experience, your education, and your skill set. For each owner or key employee, youshould provide a brief biography in this section.

7.0 Financial Plan

7.1 Underlying Assumptions


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Waste Management, Inc. will have an annual revenue growth rate of 16% per year. The Owner will acquire $150,000 of debt funds to develop the business. The loan will have a 10 year term with a 9% interest rate.

7.2 Sensitivity Analysis

The Companys revenues are sensitive to many external factors. Should the cost of oil increasesignificantly, Management fully expects that its bottom line income will decrease. However, the Companyhas priced its services so that increases in the price of oil will not severely impact the Companys ability tooperate both profitably and cash flow positive. In the event of a dramatic increase in price, Managementwill seek to increase the price of its waste management services to reflect the higher transportation costs.

7.3 Source of Funds

7.4 General Assumptions

7.5 Profit and Loss Statements


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7.6 Cash Flow Analysis


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7.7 Balance Sheet


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7.8 General Assumptions


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7.9 Business Ratios


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Expanded Profit and Loss Statements


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Documents

YSE 2014 Business Plan Sample