Westside Waste Management Business Plan Help

The Business Summary

Business Name: Westside Waste Management

Business Structure: Company

ABN: 142 626 2430

ACN: 142 900 1001

Business Location: 1-3 Burrows Road, Alexandria 2005, NSW, Australia

Date Established: 01/07/2020

Business CEO: XYZ

Relevant Experience: XYZ has completed the master’s degree in Business Administration with focus on strategic marketing and sales as major. Special focus during studies was on finding ways to create sustainable solutions for companies operating in Australia so that the environmental footprint can be reduced. With 3 years experience in CCA bottling plant, XYZ saw huge opportunity of recycled plastic that could be used during manufacturing and packaging of bottles. During the job, XYZ gained prominence by colleagues due to sharp skills and active contribution in environmental protection strategies. Therefore, XYZ will be responsible in making ties and contracts with CCA, Schweppes and Tru Blu based on the experiences gained during employment. XYZ will also be responsible for leading the team while giving directions to business for further development.

The Market Summary

Highlights:

The beverage manufacturers and packaging industry in Australia have dramatically increased its use of reclaimed plastic in its production processes. The companies are demanding high quality reclaimed and recycled plastic for the consumer products. To date, the beverage industry players like Coca-Cola Amatil and Nestle are already facing supply shortage of high food grade recycled bottles to be used in their products. Other major FMCG companies including Unilever have announced to use 25% PET packaging for Omo laundry detergent by sourcing from within Australia (Mordor Intelligence, 2020).

Target Market:

The current target market of Westside Waste Management Company will be beverage companies and packaging companies. As there are number of beverage companies, currently the company has decided to make contract with three active beverage companies (CCA, Scheweppes and Tru Blu Beverage) and partner up with APCO.

Marketing Strategy

Our advertising and promotional strategy will be two-fold. In first phase, our promotion will be focused on before, during and six months following the processing plant opening. In the second phase, the promotion will be dealing with establishment of long-term contract with the partner clients and improving the waste recycling knowledge amongst the public through various campaigns. The company is operating as a B2B operator that will extend its services to the industrial clients. The B2C services will only be provided to the extent of knowledge provision so that overall behavior of customers towards recycling plastic can be changed and influenced. The focus of second phase will be on improving the sourcing of recyclable plastic waste from domestic and industrial clients.

Vision

“Now companies will be able to scale down the cost of packaging bottles and other products by using recycled plastic”

Mission

The mission is to help, interact and assist the beverage industry and packaging industry leaders on their transition towards becoming a sustainable company in Australia. We provide recycling services, knowledge management, public awareness campaign services and training on recycling at possibly lower pricing for the industrial clients. Our goal is to recycle plastic and manage the waste in NSW through innovative material recovery systems.

Aligning Goals with Circular Economy

The Finances Summary

The startup funding of AUD 5,000,000 is required to buy plants, rented facility and machinery by Westside Waste Management Company. It has been decided to raise AUD 3,000,000 from NAB at 9% rate of interest with 10 year loan terms. AUD 2,000,000 will be raised equally by the partners of Westside Waste Management Company on 50% sharing. Calculating all the budgeting (in later parts), this venture seems to be profitable and will be able to cover its initial investment within payback period of 2 years and 4 months approximately. The first year profits are expected to be AUD 1,023,671, the second year profits will be AUD 2,119,592 and the third year profits will rise to AUD 3,069,442 as projected using assumptions outlined in below sections.

Chapter 1: The Business

1.1       Business Details

Westside Waste Management is a company that has been formulated in partnership with the local government for collecting the untouched recyclable waste and to organize waste treatment plant within NSW in Australia for eliminating the non-recyclable waste that produces the toxic gases such as Methane. The company will be generating revenues by distributing the processed recycled products to the beverage and packaging companies within NSW at first step.

Westside Waste Management Company will be collecting, recycling/composting and distributing the recycled material to be used by the beverage and packaging industries as raw material. These activities will meet following critical needs of the industry;

• It will reduce the raw material cost for packaging and beverage companies.
• It will reduce the environmental footprint caused by greenhouse gas emissions due to landfilling.
• It will reduce the methane emission from non-recyclable material into environment due to pre-treatment of waste prior to going to landfill.

There are long-term problems with the recycling of plastic specifically in Australia such as;

• Lack of mature infrastructure for collecting the plastic bottles and other material(CSIRO, 2020).
• Lack of economical methods for dismantling of non-recyclable waste consumer items including food storage containers, toys, fiber glass, kitchenware, automotive parts and dishware (CSIRO, 2020).
• Lack of economical technologies for sorting of plastics (CSIRO, 2020).
• Volatility of the commodity markets (CSIRO, 2020).

On one hand, many forms of the plastics can be widely recycled, while the other types are rarely recycled (Chemistry Australia, 2020). The Westside Waste Management Company will be focusing on collection of recyclable and non-recyclable material disposed-off by domestic and industrial consumers. The purpose is to establish a facility in Alexandria, NSW that would process the plastic waste in five stages i.e.

• Sorting

After collecting the plastic material from the pickup points, every plastic item will be separated according to its make and type so that it can be processed accordingly using the shredding machines

• Washing

After sorting, the plastic waste will be thoroughly washed for removing all impurities including adhesives and labels.

• Shredding

After washing off the impurities, the plastic waste would be loaded into conveyer belts that would run the whole waste through shredders. These shredders will tear up the plastics into pellets and prepare them for recycling into other products.

• Identification & Classification of Plastic

In order to ascertain the quality and class of the plastic pellets, the proper tests will be conducted.

• Extruding

The shredded plastic will be extruded into pellets and packaged in containers to be delivered to partnered beverage and packaging companies in NSW.

For the waste material that is non-recyclable, one Mechanical Biological Treatment Plant (MBT) will be constructed (Rigamonti, et al., 2014). The biological treatment will carry on after mechanically sorting out the plastic waste. The aim of this plant will be to treat the non-recyclable material in order to produce a stabilized output for disposing it into landfill. The anaerobic digestion (AD) process will be used by the plant. AD is a technology that captures the methane gas from the decomposition of the wasted materials (Lombardi, et al., 2012). This captured biogas can be used as an energy source for both heating and power. Biogas is produced through digestion process and is easily collected in the gas chamber which can be readily used as a gas engine for creating heat and power (Lombardi, et al., 2012). The heat can be used for powering up the plant for both recyclable material treatment and non-recyclable material treatment. A big project like this can also provide power to National Grid system so that the energy can be sustainably provided to people’s home (Rigamonti, et al., 2014).

The methane gas captured through AD process will be used by Westside Waste Management Company for providing energy source to its other plant established for sorting, washing, shredding, classification and extruding of the recyclable plastic material to be distributed and sold to partner beverage and packaging companies in NSW.

The major advantage of this system will be that over 90% of the recyclable plastic waste in NSW will be recycled to be reused by beverage and packaging industries in NSW. Moreover, targeted 90% of non-recyclable waste will be pre-treated before disposing off in the landfills so that the biogas can be used as an energy source instead of directly emitting it in the environment during natural digestion. This will be an extremely attractive feature for beverage companies, packaging industry, environmental groups and the regulating agencies.

1.2       Organization Chart

1.3       Business Premises

The plant will be conveniently located at Burrows Rd with 15 minutes’ drive away from Sydney’s CBD i.e. approximately 7km. The plant will be working 6 days a week from 6:00am till 6:00pm. The plant will accept all voluntary recycling and non-recycling material to be deposited by the volunteers as well with minimal waiting time. All sorts of plastic will be accepted from the volunteers and suppliers of the plastic waste. Unit 2 and Unit 3 will be rented from Burrows Industrial Estate at price of AUD287,720 pa for each unit (Deans Property , 2020).