BUSINESS PLANNING

BUSINESS PLANNING – FEASIBILITY STUDY

IS IT FEASIBLE IN YOUR AREA?

• what happens to waste on site?

• how much do skips cost?

BUSINESS PLANNING – FEASIBILITY STUDY

ROUTES FOR DISPOSAL – GRADE 3

• wood recycling companies

• waste transfer stations

BUSINESS PLANNING – FEASIBILITY STUDY

ROUTES FOR DISPOSAL – RESIDUE

• waste transfer stations

• skip companies

• C.A sites

BUSINESS PLANNING – FEASIBILITY STUDY

FREQUENTLY ASKED QUESTIONS

• how much does it cost?

• can you supply a container?

• will you take all the wood waste?

BUSINESS PLAN

BUSINESS PLANNING – BUSINESS PLAN

MOST IMPORTANT POINTS

• FOLOWING A SUCCESSFUL MODEL

• Wood recycling in context

• Stats’ from the F/S

• Marketing thought

• Personnel

BUSINESS PLANNING – BUDGET

SAMPLE BUDGET: YEAR 1 Assumes grant to cover all working capitalINCOME 1 2 3 4 5 6 7 8 9 10 11 12

Collection fees 500 800 1200 1500 1800 2000 2000 2500 2500 3000 3000Pallet sales 50 50 80 80 100 100 100 100 150Retail Income 200 300 500 500 800 1000 1500 2000 3000 3500Products 150 200 300 500Firewood 300 500 600 600ILM fees 320 320 320 320 320 320 320 320 320 320 320TOTAL 0 820 1320 1870 2370 2700 3200 3420 4870 5620 7320 8070

EXPENDITURE 1 2 3 4 5 6 7 8 9 10 11 12

Truck 6000Tools/equip' 1000IT/office 800Insurance 2200Other 500TOTAL 10500 0 0 0 0 0 0 0 0 0 0 0

Rent/rates 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Wages 3800 3800 3800 3800 3800 3800 4200 4200 4200 4200 4200 4200Motor-fuel 50 150 250 250 300 300 300 300 350 350 350 350Motor-maintain 20 20 20 20 50 50 50 50 50 50 50 50Residue 50 80 120 150 180 200 200 250 250 300 300Marketing 300 100 100 100 100 100 100 100 100 100 100 100Office/utilities 100 100 100 100 100 100 100 100 100 100 100 100Other 200 200 200 200 200 200 300 300 300 300 300 300

TOTAL 15970 5420 5550 5590 5700 5730 6250 6250 6350 6350 6400 6400

Profit/loss -15970 -4600 -4230 -3720 -3330 -3030 -3050 -2830 -1480 -730 920 1670Cumulative p/l -15970 -20570 -24800 -28520 -31850 -34880 -37930 -40760 -42240 -42970 -42050 -40380

BUSINESS PLANNING - BUDGET

INCOME 13 14 15 16 17 18 19 20 21 22 23 24

Collection fees 3000 3000 3000 3000 3500 3500 3500 3500 4000 4000 4000 4000Pallet sales 150 150 150 150 200 200 200 200 250 250 250 250Retail Income 3500 3500 3500 4000 4000 4000 4000 4000 4000 4000 4000 4000Products 500 500 500 500 500 500 500 500 500 500 500 500Firewood 800 800 800 800ILM fees 320 320 400 400 400 400 400 400 400 400 400 400TOTAL 7470 7470 7550 8050 8600 8600 8600 8600 9950 9950 9950 9950

EXPENDITURE 13 14 15 16 17 18 19 20 21 22 23 24

Truck 8000Tools/equip' 400IT/officeInsurance 1700 250TOTAL 2100 0 0 0 0 8250 0 0 0 0 0 0

Rent/rates 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Wages 4600 4600 4600 4600 4600 5600 5600 5600 5600 5600 5600 5600Motor-fuel 350 350 350 350 350 380 380 380 400 400 400 400Motor-maintain 60 60 60 60 60 100 100 100 100 100 100 100Residue 300 300 300 300 350 350 350 350 400 400 400 400Marketing 100 100 100 100 100 100 100 100 100 100 100 100Office/utilities 100 120 120 120 120 120 120 120 120 120 120 120Other 300 300 300 300 350 350 350 350 350 350 350 350TOTAL 8910 6830 6830 6830 6930 16250 8000 8000 8070 8070 8070 8070

Profit/loss -840 640 720 1220 1670 -7650 600 600 1880 1880 1880 1880Cumulative p/l -42520 -41880 -41160 -39940 -38270 -45920 -45320 -44720 -42840 -40960 -39080 -37200

BUSINESS PLANNING - BUDGET

INCOME 25 26 27 28 29 30 31 32 33 34 35 36

Collection fees 4000 4000 4000 4000 4500 5000 5000 5500 6000 6000 6000 6500Pallet sales 250 250 250 250 350 350 350 350 400 400 400 400Retail Income 4000 4000 4000 4000 4000 4500 4500 4500 4500 4500 4500 5000Products 500 500 500 500 500 1000 1000 1000 1000 1000 1000 1000Firewood 800 800 1000 1000ILM fees 400 400 400 400 800 800 800 800 800 800 800 800TOTAL 9150 9150 9150 9150 10150 11650 11650 12150 13500 13500 13700 14700

EXPENDITURE 25 26 27 28 29 30 31 32 33 34 35 36

Truck Tools/equip' 2000IT/officeInsurance 2000TOTAL 2000 0 0 0 2000 0 0 0 0 0 0 0

Rent/rates 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000Wages 5600 5600 5600 5600 6400 6400 6400 6400 6400 6400 6400 6400Motor-fuel 400 400 400 400 400 450 450 450 450 450 450 500Motor-maintain 100 100 100 100 100 100 100 120 120 120 120 120Residue 400 400 400 400 450 500 500 550 600 600 600 650Marketing 100 100 100 100 100 100 150 150 150 150 150 150Office/utilities 120 120 120 120 150 150 150 150 150 150 150 150Other 350 350 350 350 350 350 350 350 350 350 350 350TOTAL 10070 8070 8070 8070 10950 9050 9100 9170 9220 9220 9220 9320

Profit/loss -920 1080 1080 1080 -800 2600 2550 2980 4280 4280 4480 5380Cumulative p/l -37320 -36240 -35160 -34080 -34880 -32280 -29730 -26750 -22470 -18190 -13710 -8330

BUSINESS PLANNING – BEING LEGAL

BUSINESS PLANNING - SUMMARY

• understand the model

• do feasibility study

• do business plan

• crunch the numbers