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1.0 Executive Summary
The purpose of this business plan is to raise $150,000 for the development and expansion of a roll off container service based in Texas. Roll Off Container Service, LLC (“the Company”) was founded by Peter Jones. The business will specialize in providing roll off containers to job sites. The Company will foster ongoing relationships with demolition contractors, roofing companies, and other entities that frequently need this type of waste management service. The Company will also establish relationships with municipalities.
1.1 Services
As stated above, Roll Off Container Service will be actively involved with providing construction site waste management services. At the onset of operations, the Company intends to have fifty 40 yard containers within its inventories. The business will also acquire smaller roll off containers that can be used by homeowners when they are cleaning out residences. The business will generate $250 to $400 per rental. These fees may be higher depending on the type of refuse that is going into the truck.
At this time, Management intends to source two trucks that will be used to drop off and pick up roll off containers from job sites.
The third section of the business plan will further describe the services offered by Roll Off Container Service, Inc.
1.2 Financing
Mr. Doe is seeking to raise $150,000 from a financial institution. This document assumes that the business will receive a 10 year that carries a 9% interest rate that normally amortizes. The financing will be used for the following:
• Office location in Texas
• 50 roll off containers
• Working capital
• Capital to finance deposits for leasing of two waste hauling trucks.
Moving forward, the Company could easily secure additional capital in order to finance the expansion of the business via an additional business loan, working capital line of credit, or private investment. However, this business plan assumes that the Roll Off Container service will finance its growth exclusively with retained earnings.
1.3 Mission Statement
Management’ mission is to develop the Roll Off Container Service into a preeminent construction focused waste management company in Texas.
1.4 Management Team
Peter Jones is a highly experienced waste management professional that will be able to guide this business to profitability within its first year of operation. he will be able to expand profitability on a yearly basis.
1.5 Sales Forecasts
1.6 Expansion Plan
Management will make substantial reinvestments into the acquisition of additional roll off containers. This will allow the Company to boost its revenues on a year-on-year basis. The Company will also acquire additional trucks in order to service a greater geographical area.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Roll Off Container Service, LLC.
2.2 Required Funds
Management is seeking a loan of $150,000 in order to launch full scale operations. The Founder will contribute $50 towards the venture.
2.3 Investor Equity
The Roll Off Container Service is not seeking a private investment. However, the Company would be a strong candidate for this type of financing in the future.
2.4 Management Equity
Peter Jones currently retains a 100% ownership interest in the business.
2.5 Exit Strategy
In the event that the Founder wishes to divest the business, he will hire a qualified business broker to manage the sale to a third-party. Generally, Roll Off Container Services generally have a price to earnings multiple of three to four years the prior year’s earnings. However, Management has no plans on divesting the business for a substantial period of time (at least five years).
3.0 Operations
As discussed in the executive summary, the Company will be actively engaged in providing roll off containers to construction sites within the target market radius. Initially, the Company will operate with fifty containers within its inventory. The Company will be able to properly dispose of all refuse and waste that is disposed of within the containers. The Company’s two trucks will be able to transport filled containers to municipal waste locations.
Beyond working with construction firms, the Company will also acquire contracts with government agencies that are completing public works projects. This will allow the business to generate highly predictable streams of revenue, which will further contribute to the economic stability of the business.
The Company will also have smaller containers available for homeowners that are completing large scale cleanings of their homes. The business anticipates that people that are moving will use this containers for this purpose.
4.0 Industry and Market Analysis
4.1 Economic Outlook
This section of the business plan will document the roll off container industry, the Company’s anticipate customers, and competitive matters.
Currently, the economic climate in the United States is moderately strong. Unemployment rates have remained near historic lows, and inflation rates have declined. Although interest rates remain somewhat high, they are expected to decrease as the economy continues to undergo this transaction.
It should be noted that any issues with the economy will not impact the Company’s ability to generate revenue. The demand for roll off container rentals tends to remain strong in any economic climate. This is especially true as municipalities complete public works projects. Once the business solidifies ongoing relationships with numerous construction companies, the risks related to this business will drastically decline.
4.2 Industry Analysis
Within the United States, there are 2,500 companies that provide roll off container rentals and waste management services. Each year, these entities collectively generate in excess of $1 billion.
This industry’s growth will remain similar to that of the construction and real estate industry as a whole.
4.3 Customer Profile
Among construction firms that will use the Company’s services, the following profile is noted:
• Annual revenues in excess of $500,000
• Operates as a contractor or construction firm in the target market
• Will spend $500 to $2,000 per month with the Company for roll off container services.
The business will also provide its services to homeowners within the target market as well. In this section, you should analyze the number of businesses in your market that require roll off container services on an ongoing basis. You should also examine municipalities that have public works departments that outsource their waste management needs to third parties.
4.4 Competition
In this section of the analysis, you should focus on the number of companies that provide roll off container and dumpster rental services to the general public. Additionally, it is important to discuss how you will be pricing competitive against your competition. This section should also discuss the barriers to entry, and how potential future competitors could enter the market.
5.0 Marketing Plan
The Company will use a number of marketing strategies that will ensure that the business becomes the vendor of choice when roll off containers and dumpsters are needed.
5.1 Marketing Objectives
• Develop ongoing relationships with construction firms (including demolition and roofing contractors).
• Maintain an expansive online presence that includes a content rich website and a presence among all social media platforms.
• Maintain relationships with municipalities that will use the Company’s services when they complete public works projects.
5.2 Marketing Strategies
Foremost, the Company intends to develop ongoing relationships with contractors, construction firms, and other entities that frequently need roll off container services as part of their operations. As stated earlier, once the business establishes a significant client base – the ongoing marketing needs of the business will decline.
The Roll Off Container Service will maintain an expansive website that showcases the dumpsters/containers and general information about the business. This website will feature reservation functionality so that contractors and homeowners can make arrangements to have roll off containers placed at their job sites and homes when needed. In order to have the website appear frequently when relevant searches are conducted – the business will work with a search engine optimization firm that specializes in local SEO matters. It will take three to six months for the Company’s SEO campaign to become effective.
The Company will bid on available contracts among municipalities and state agencies. This will allow the business to generate highly predictable streams of revenue from servicing these contracts. The Company will respond to requests for proposals specific for when public works projects are needed.
The business will also develop ongoing relationships with real estate brokerages that can provide referrals when homeowners need these services. It is expected that homeowners will use these services when moving and are discarding large amounts of items. These individuals will also use the dumpsters when do-it-yourself home improvement projects are undertaken.
5.3 Pricing
The business will charge $250 to $400 per roll off container rental. The business will charge additional fees when handling dumpsters that contain hazardous materials.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Payroll
6.3 Management Biographies
Here, you can indicate your experience in the roll off container service and waste management industry. This includes your educational background and your experience as an entrepreneur.
7.0 Financial Plan
7.1 Underlying Assumptions
The Company has based its proforma financial statements on the following:
• Roll Off Container Service, LLC will achieve a compounded annual growth rate of 17% per annum.
• The Owner will receive a $150,000 SBA loan.
• The business will have an equity capitalization of $50,000.
7.2 Sensitivity Analysis
The Company’s revenues are only modestly sensitive to negative changes in the economic climate. This is due to the fact that the business will have an extensive roster of construction firms (especially roofers and demolition contractors) that will use the services at all times. The demand for these types of contracting services remains strong in any economic climate. Additionally, the business will work with municipalities in order to receive guaranteed contracts.
7.3 Source of Funds
7.4 Profit and Loss Statement
7.5 Cash Flow Analysis
7.6 Balance Sheet
7.7 Breakeven Analysis
7.8 Business Ratios
