Waste Management Strategies & Business Plans

This assignment focuses on understanding and analyzing effective strategies for solid waste management. It delves into the concept of integrated waste management, emphasizing resource recovery and its contribution to climate change mitigation. Additionally, it examines the importance of developing comprehensive business plans for sustainable waste management systems, considering factors like market analysis, funding sources, and operational efficiency.

Running head: WASTE MANAGEMENT BUSINESS PLAN 1
Waste management business plan
Name
Institutional Affiliation

WASTE MANAGEMENT BUSINESS PLAN 2
Executive Summary
A business plan often provides comprehensive information regarding a particular business.
This business plan offers detailed data about a business in the waste management industry
referred to as Sigma Waste Management. The business will be located in Mumbai, India.
Sigma Waste Management region of operation will involve collecting, recycling and
marketing waste products from city waste treating plants for use as a consumer product. The
waste management business will be set up in one of the most iconic landmark building in the
town. The start-up business is setting up its premises in the building with the sole aim of
being the flagship waste management business (Barringer, 2012). The first part of this
business plan provides the description of the business, strategy in which the business will
operate and the purpose of the business. This part also provides the business objectives,
vision and mission statements. The second part of this business plan incorporates marketing
research and analysis that includes SWOT analysis and PESTEL analysis which will be
employed to ascertain the business weaknesses and strengths. The third part incorporates
competitive marketing approach and marketing mix that helps the business in its fabrications
that includes the distribution and pricing policies. This part also included customer analysis
and operation and staffing that is significant to the plan as it demonstrate how the business
will be managed. The last part of this business plan contains the financial plan, analysis and
forecasting results that includes the anticipated financial plan, estimated sales and resources
that are required to start the business (Hamilton, 2011). The sources of funds are illustrated in
this part as this will assists in ascertaining other avenues that can be utilized to get resources
for the business. The part also describes the business ethics, control and sustainability that is
often vital for the business operations.

WASTE MANAGEMENT BUSINESS PLAN 3
Introduction
Waste management
Human waste sludge has long been a waste issue for cities that basically control waste
treating plants. In urban regions that basically deal with large quantities of waste, human
waste is usually disposed in volumes at municipals land-fills. Compelled by federal and state
orders, composting and recycling of municipal compact waste has basically augmented
intensely in the past ten years (Bong, Hashim, Ho, Tan, & Lee, 2017). There are about ten
thousand curb side recycling plans in USA and about 20,000 drop off centres for
decomposable materials. Sigma Waste Management business idea presents a chance to
recycle a land-fill bound wastes, save the land-fill space and provide the customers the
chance to benefit from the various affirmative properties of the composted materials. Human
waste sludge basically comprises of a high nutrients value that can be treated in order to
provide a quality solid enhancer and plant food as far lower than organic manures presently
sold in the market.
Business Description
The name of the business will be Sigma Waste Management. The name originates from the
word solid which means waste. The uniqueness in the name will attract many customers since
it is different and the only one in the region. Since it is the one and only, the name will be
easy to be identified thus making the customers of the product and services being offered by
the business have an easy time in recognizing the name easily without any difficulties
(Economides, & Tåg, 2013). The company reprocessed waste will be directed towards
fertilizers producers, landscapers, farmers, nurseries and government organizations who will
basically profit from the composts plentiful soil improving its characteristics. Sigma Waste
Management has a noble and bright concept which requires a sizeable amount of start-up
capital. The start -up capital requirement is occasioned by the fact that the waste management

WASTE MANAGEMENT BUSINESS PLAN 4
will trade in a wide array of solid waste to meet its one stop waste management status
(Mathur, Patan, & Shobhawat, 2012). Borrowed from well- known waste management
business found in major world cities, such a business for survival and competitiveness will
need funding to cater for business space rent which ideally is offered at a premium because of
the building importance in Mumbai, India. Additionally, Sigma Waste Management will go
an extra mile to rebrand the products to have a taste and appearance of Mumbai, India. The
business address is as follows.
Sigma Waste Management
Address: Mumbai, India Zip Code: 12031004
Mumbai, India
Phone: + 91 569-548-236
Category: waste management
Business location and map
Sigma Waste Management will be located at the City of Mumbai. The company plant will be
at Mumbai which is along the Sigma Beach Rd, opposite the Sigma Supermarket. The
company is located at this region since it the landscape slopes towards the company which
makes it easy to collect the waste products from the residents.
Business Idea
After vibrant feasibility analysis, the reasons below influenced the owners of the business to
select this specific location. No waste management business is situated in this region or in the
neighbouring cities (Guerrero, Maas, & Hogland, 2013). The area population mostly relies on
one waste management that is India waste management which is situated 20 miles away. The
number of rivals was also an influencing aspect.

WASTE MANAGEMENT BUSINESS PLAN 5
Strategy and purpose of the Business
Sigma Waste Management is a partnership made of four people. The partners have decided to
contribute INR1.5 million as start- up capital which would be translated as share capital. The
partners will share the profits and losses according to each partner capital contribution (Parks,
Olson, & Bokor, 2015). The partners will be mainly involved in strategic decisions and
maintain a passive management. The will be represented in the day to day operations of the
business by the waste management manager.
Business mission statement
 To start a business that will help conserve the environment, reduce waste and recycle
waste products that will satisfy customer’s needs.
Business vision statement
 To provide satisfying products to its customers
Business objectives
 Flush revenues for the first one year of business and increasing each year afterward.
 Launch the recycling plant in Mumbai City to incorporate five composting divisions
in the first year (Edjabou, Jensen, Götze, Pivnenko, Petersen, & Astrup, 2015).
 Open further plans in year 2 and year 3 so as to serve other parts of the country and
the Mumbai City parts of the state.
 Continue to promote Sigma Waste Management by soliciting and contacting business
from further cities and fertilizer using customers.
Legal requirements
Permits and licenses
The business license will be attained from Mumbai municipality as it will cost INR5,000
whereas permit will be attained from India certifying board via the Local Government
Ministry that will cost INR4,000.

WASTE MANAGEMENT BUSINESS PLAN 6
By laws
The business should embrace corporate social responsibility by employing the local residents
and embracing the region structures like roods (Gunda, & Nleya, 2016). The business must
not be health threat but a promoter of health and therefore will recycle and manage the waste
products from the entire municipality because the company will have a well-managed and
constructed pipe system to avoid water or land pollution.
Market research and analysis
Sigma Waste Management is entering a market where human waste sludge’s has not been
reprocessed on any substantial scale in Mumbai or the neighbouring regions. This is a viable
and unique idea that addresses the desires of diverse clients and reaches an unexploited
market with incredible growth prospective (Demirbas, 2011). One of the smartest aspects is
that the company is anticipated to achieve a strong cash situation and realize profitability in
its initial year of operation. Because of a large desire for these services and products, and a
lack of direct rivalry, our prediction of quick success is achievable.
Market analysis
Market analysis is the study on the attractiveness and a dynamic market for a business entity
such as the Sigma Waste Management. The market analysis directs the business profitability
markets as well as the finding the integral market for the business. Market analysis plays a
vital part in the efficiency and the effectiveness of the Sigma Waste Management, the
analysis will define the direction of the business operations based on the customers’
certifications as well as identifying the shortcomings, opportunities and the strengths of the
business (Diamond, & Tolley, 2013). Market analysis in Sigma Waste Management will
focused on well-defined strategies on promoting the business products and services not only
in Mumbai but in the global market. The phenomenon will also consider the business

WASTE MANAGEMENT BUSINESS PLAN 7
predetermine activities such as the decision on the inventory, workforce, promotional
activities as well as the purchase of new business equipment and assets.
Customer Analysis
Potential market
The target clients are couples and families who live in big houses around the town. The
business potential consumers will be individuals living around the area and this will be
people from diverse classes, occupation, religion and geographical setting. The consumers
will benefit with reasonable products from business since the services will be accessible at all
times hence consumers will enjoy the products well without interruptions (DeYoung, & Baas,
2012). Organizations will also be the targeted clients as the business will be situated near
several institutions. Diverse companies are also the company potential customers as people of
different companies who will require my products to be supplied to them. From the 95%
market segment, the business anticipates approximately 40% of the customers to use Sigma
Waste Management products since the company plans to produce high quality products that
will entice several clients (Pires, Chang, & Martinho, 2011).
Market plan
This intends to give insight on how the operations will be piloted. The business anticipates to
exploit the sales as well as creating long-term consumer relations and channel members
assurance marketing strategy for a medium businesses (Guerrero, Maas, & Hogland, 2013).
Medium business management description of rivals comprising of the demand level for the
products or services and strength and weakness of the competitors.
Market Share
The population of Mumbai City is approximately 81 Million people which they cover an area
of 100 Sq km and may be each person will produce at least 500 Kgs of solid and 500 litres of
solid per day.

WASTE MANAGEMENT BUSINESS PLAN 8
60%
25%
10% 5%
market share
Sigma waste
Al Naser
Mumbai waste
Indian waste
SWOT Analysis
The measurement is the investigation approach used for Sigma Waste Management to review
the likelihood of options tending to ecological and industry patterns, the anticipated interested
groups, and the opponent (Club, & Chen, 2015). The SWOT analysis table is demonstrating
all the threats, weaknesses and strengths, and opportunities are launched to be deliberated by
the investors.
Strength Weakness Opportunities Threats
Full time working
by employees
Skilled Personnel
Strongly
reputable
Well positioned
Still new in the market Steady market in the
state
It’s the only waste
management in the
area
New policies for
new businesses
unidentified in the
market place
Qualified workers
Firmly reputable
High safety
Concentrate in diverse
types of waste
management products
High quality
fertilizer and
services
External Analysis
PEST Analysis
Political
 The political status is stable
 Existence of strict labour law
 Several regulations should be
followed to start up the business like
the business license
Economic
 Mumbai Expo 2020 is a great chance
to market our products.
 The economy is favourable
 Strong currency in relation to other
currencies
Social
 Increasing in population and it is also
expected to increase in future.
Technology
 The country spent a large amount of
money into improving the waste

WASTE MANAGEMENT BUSINESS PLAN 9
 Increased number of travellers in the
country
 Young population like using toilet
 Low tax in India thus increasing the
purchasing power of residence
technology
 The use of social network such as
Twitter and Facebook has increased
by 45%
 Availability of diverse Webpages
Environment
 Favourable weather condition
 India attitude towards waste
management
 The issues of global warming
Legal factors
 Availability of strict labour laws
 Availability of customers’ protections
units
 Existence of employment laws like
age and wages
Competitive marketing strategies
Competitor analysis
Stiff rivalry in waste management business is the key obstacle that inhibits diverse companies
from entering into the market. Presence of firm competition in the business has barred new
rivalry from entering into the market (Connole, Shannon, Watson, Wrisberg, Etzel, &
Schimmel, 2014). Sigma Waste Management basing on efficiency and quality, the company
will lay down its plans which will facilitate it to overcome its competitors for example,
ensuring extreme best public relations by introduction of consumer care service, ensuring
well qualified and sufficient personnel and through the use of different media channels to
advertise its products to ensure maximum number of customers.
Distribution strategy
The proposed business will have the distribution channels. This will involve wholesalers,
retailer and also directly to the customers. Whole sellers and retailers will sell further the
products to the consumers or end users, hence making profit. The enterprise will on other
hand sell its products directly to customers. Below is the representation of the distribution
channels of the products (Hollensen, 2015). The options for developing the technology are
subcontracting because of the simplicity that is usually involved when outsourcing some of
the products. The options for producing the product will involve subcontracting and licensing

WASTE MANAGEMENT BUSINESS PLAN 10
other firms to deliver goods that are of high quality to the business. The options for sales and
distribution will comprise of whole sale and use of distributors or the sale representatives so
as to enhance speed.
Producer wholesale customer
And
Producer manufacturer distributor customer
Marketing plan
The business marketing plan is a provision to meet management of waste in India to enhance
clean environment as well as constant business growth (McKenzie, 2015). The business plan
should allocated INR10,000 for marketing products both online as well using the perspective
passive strategy which employs social media or personal selling, print media and electronic.
They enhance numerous aspects of gift brand awareness thus instigating the differential
reaction that improves market (Pires, Chang, & Martinho, 2011).
The website will be registered with the directories gift product sites and search engines
substantiating the marketing of the waste management business product and stores location.
The website will comprise of testimonials and FAQs page. Other links which may be useful
to us include product prices and discounts.
Operation and staffing
Human Resource Management
Sigma Waste Management will recruit its workers through advertisements where it will
publish its opportunities on the internet at whatever point it will need employees (Gunda, &
Nleya, 2016). This aspect will be a rational trail for me to convene diverse persons and
communication will less challenging because it will pull in varied potential candidates and
workers by relocation the production and the organization itself. The business will select the
best employee for my trade by ensuring he or she is fit for the trade and must to be ready to
work for the achievement of the business.

WASTE MANAGEMENT BUSINESS PLAN 11
The business will be a partnership kind of business this is for easy management of the
business. The business will employ skilled and qualified persons (Blank, 2013). The real
owners of the business comprises of the Engineers, Entrepreneur, Technical Expert who will
combine all their diverse efforts and combine all the factors of production to ensure that the
business objective is uphold to a greater heights (Queiruga, Benito, & Lannelongue, 2012).
The owners of the waste management is the Engineers himself, his role is that of risk taking,
taking part in managerial competencies that concerns the growth of the waste management
like planning leadership and accounting, the manager whose responsibility is that of
marketing, planning, administration and coordinating Sigma Waste Management services
such as cleaning and colection facilities. The technical and management experience that is
needed for the business include; managers who oversee the whole operations, the finance
director who will be in charge of finances and the waste management directors.
Personality Qualifications Duties Responsibilities
Chief Engineer -
Manager
Should be aged between
30-40 years with
resilient personality and
dynamism
Masters in Engineering
Chief engineer will
provide decisions by
selecting a best course
of action that the
business will follow in
pursuit of its goals.
Design in advance what
to do.
Resolving any
problem which
may arise
between the
business and
also between
the employees
Senior supervisor -
Engineer
Should be minimum 27
years.
Graduate from a
recognized institution or
youth polytechnics.
Has experience of 2
years.
Hardworking individual
and cooperative.
Should be able to keep
accounts of the daily
business operation.
Should be able to
ensure that all workers
are working on their
respective areas.
Should be able
to advise the
manager and
also report on
any occurrence
in the business
Accountant. Should be a minimum
of 25 years old.
Should graduate from a
recognized accounting
college.
In charge of business
accounts.
Should be able to keep
the financial analysis
documents for the
Preparing the
budget and
receiving
business
documents

WASTE MANAGEMENT BUSINESS PLAN 12
Should have reached
minimum degree in
Accounting
Should posse’s good
public relation skills.
Should have a working
experience minimum 3
years.
business and be able to
record the business
financial status.
Employees -Should be minimum 18
years old
- Should have graduated
from a recognized
college or known
polytechnics.
-The employees are
supposed to do check
diverse services in the
company premises.
-Should be able to
handle emergencies and
must have at least one
year experience.
-Should be
hardworking and
willing to cooperate.
-They should
report any
malfunction of
the machines to
the manager
through the
senior
supervisor
machines and
the business
equipment.
Organization structure
Management team
The business will reward my employees by their level of education and also through
their hard work. The business will motivate my employees by taking them foe a trip at the
end of the year or giving them little amount of money to celebrate for Christmas (Queiruga,
Benito, & Lannelongue, 2012). The business will compensate my employees as it will pay
General Manager
Production
Director
Finance
director
Engineering
Director
Planning
Director
Employees and
security

WASTE MANAGEMENT BUSINESS PLAN 13
them on time to reduce complications. The best approach in compensating the employees is
compensating them for production, time and knowledge this will motivate them and make
them work extra hard because they will feel appreciated by the management.
Post Salaries Medical allowances only Total
Manager
Account
Head Engineer
Receptionist
Chief Engineer
Engineers
Cleaners
18,000
15,000
12,000
11,000
10,000
8,000
7,000
1,000
850
850
850
850
850
850
19,000
15,850
18,850
11,850
10,850
8,850
7,850
88,100
Breakdown salaries and wages for service staffs
Post Basic salaries Medical allowance Commuter Total salary
Receptionist 8,000 850 4,000 12,850
Engineers 7,000 850 4,000 11,850
Service men 6,000 850 4,000 10,850
Cleaners 5,000 850 4,000 8,850
Motivation of employees
Set little weekly goals
As a manager he is responsible for setting up smaller targets for every employee this
is one way of making them work and work responsibly, find ways of motivating them having
achieved their targets, by doing so it will make them understand why working is important.
Radiate positivity
As a Director or manager I will create a tradition where you become so much
enthusiastic and make your employees to have that same positive energy, include them in
making fun, joke around, playing games and even playing music (Karmperis, Aravossis, &
Sotirchos, 2011).

WASTE MANAGEMENT BUSINESS PLAN 14
Financial plan, analysis and forecasting results
The picture of financial projections is establishment based on accounting professional who is
expert financial engineer (Queiruga, Benito, & Lannelongue, 2012). At initial stage, the
business will invest most on own asset as well as taking long-term loans from various
financial institutions with lower interest rates to facilitate the enough funds to meet the
business projections.
Assumptions in preparation of business financial plan
Most vital assumption in the financial planning is cash flow statement because the statement
should consists of cash flow for 1 year and cash flow of three years and breakeven point
(Mariotti, & Caroline, 2011). It includes best projections based on the possibility analysis and
braced by the new inclinations in the waste management markets. The financial plan will
totally rely on some assumptions such as,
 There will be a high growth of Indian economy in the city since there is little rivalry
in Mumbai region (Pires, Chang, & Martinho, 2011).
 There is insignificant influence on technological trend that may render the company
and its services and products outdated.
 The accessible equity capital will enable support and finance of the company
activities.
Simplified financial analysis and projections
Finance
Sigma Waste Management will require INR5.0 Million of business financing as a
start-up capital for leasing the business space, workforce, business permit, sustainability,
supplies, legal expenses, advertisement, promotion and credits repayments. The funds related
plan depends on upon necessary uncertainties, the bigger part of which will appear in the
projected income statements and financial records (Mathur, Patan, & Shobhawat, 2012). The

WASTE MANAGEMENT BUSINESS PLAN 15
capitals sources are INR3.0 Million provided by the owners' worth. Another INR0.5 Million
provided by the trade partners. A credit advance for INR1.5 Million will be borrowed from
bank. INR5.0 Million is the total amount projected for the business to operate.
Table 1: Source of funds
Amount % Loan Rate Terms Monthly payments
Owners’ equity INR3.0 M 60%
Trade partners INR0.5 M 22%
Bank Loan INR1.5 M 18% 1.81% 36 Months INR30,000
Total amount INR5.0 M 100%
Table 2: Start-up costs assumptions
Amount
Lease or Rent INR210,000
Setup costs and equipment INR2.0 M
Fixtures and Furniture INR500,000
Build-out INR640,000
Total INR3,350,000
Costs of operation Total sum
Pre-opening Wages and Salaries INR50,000
Prepaid Premiums for Insurance INR2,500
Accounting and Legal Fees INR3,500
Deposits for rent INR37,000
Utility and Telephone Deposits INR20,000
Administrative Expenses INR70,000
Promotions and Advertising INR30,000
Permits and Licenses INR20,000
Total Operating Capital INR2,583,000
Total Required Funds INR5,000,000
Projected Income Statements

WASTE MANAGEMENT BUSINESS PLAN 16
Table 3: Projected Profit and Loss Account
2018 -
2019 % 2019 - 2020 % 2020 - 2021 %
Sales INR900,000 0% INR2.1 M 75% INR4.1 M 200%
Direct expenses INR50,000 0% INR150,000 70% INR300,000 90%
Gross Profit
INR950,00
0 0% INR2.2 M 75% INR4.4 M 200%
Operating Expenses
Salaries INR80,000 0% INR90,000 12.5% INR120,000 31%
Promotion INR10,000 0% INR20,000 12.5% INR50,000 24%
Licenses & Taxes INR20,000 0% INR30,000 2% INR60,000 51%
Bank Fees & Charges INR30,000 0% INR40,000 20% INR60,000 5%
Merchant Charges INR5,000 0% INR6,000 12% INR9,000 12%
Dues & Subscriptions INR3,000 0% INR4,000 10% INR8,000 10%
Office Expenses INR10,000 0% INR20,000 13% INR60,000 13%
Professional Charges INR100,000 0% INR150,000 1.9% INR200,000 10%
Website Charges INR4,000 0% INR4,000 0% INR4,000 0%
Maintenance &
Repairs INR320,000 0% INR350,000 1.4% INR420,000 4.2%
Rent Charges INR80,000 0% INR80,000 0% INR80,000 0%
Telephone Charges INR2,000 0% INR2,000 0% INR2,000 0%
Utilities Charges INR15,000 0% INR15,000 0% INR15,000 0%
Insurance Charges INR1,500 0% INR2,500 3.6% INR4,500 45%
Total Expenses INR0.4 M 0% INR0.9 M
33.5
% INR2.1 M 52%

WASTE MANAGEMENT BUSINESS PLAN 17
PBIT
INR600,00
0 0% INR1.9 M 150% INR3.0M 95%
Projected cash flow
Cash flow statements usually offers comprehensive entries of cash inflows and
outflows and also indicates the data in a concise manner. Sigma Waste Management is
seeking for capital amounting to INR5.0 Million (Queiruga, Benito, & Lannelongue, 2012).
However, no requirement for any other extra resources would be required. The
table shows below shows Sigma Waste Management cash flow for one year.
Table 4: Projected Cash Flow for one year - 2018
Table 5: Projected Cash Flow for three years 2018 - 2020
2018 -2019 2019-2020 2020-2010
Cash inflow
Amount of cash derived from sales INR900,000 INR2.1 Million INR3.9 Million

WASTE MANAGEMENT BUSINESS PLAN 18
Total Inflows INR4,900,000 INR7.1 Million INR11.9 Million
Cash Outflow
Direct cost INR150,000 INR400,000 INR700,000
Costs of operations INR2,300,000 INR3,600,000 INR3,900,000
Payment for loans INR20,000 INR40,000 INR51,000
Total Outflow INR1,700,000 INR1.81 Million INR3.651 Million
Cash position at the end of year INR 3.2 Million INR5.29 Million INR8.249 Million
Projected statement of financial position
A statement of financial position is considered to be a financial report that often
exhibits company assets, liabilities, and shareholders’ equity at a particular period of time.
The below projected balance sheet express Sigma Waste Management liabilities, assets and
capital invested by shareholders (Pires, Chang, & Martinho, 2011).
Table 6: Projected Balance Sheet for three years 2018 - 2020
2018 -2019 2019-2020 2020-2010
Assets
Current Assets
Cash INR1.0 Million INR1.5 Million INR2.0 Million
Inventories INR500,000 INR1.0 Million INR1.5 Million
Receivables INR150,000 INR150,000 INR150,000
Other current assets INR350,000 INR450,000 INR550,000
Fixed assets
Plant, property and Equipment INR1.0 Million INR2.0 Million INR3.0 Million
Motor vehicles INR350,000 INR450,000 INR550,000
Land INR1.0 Million INR2.0 Million INR3.0 Million
Total Assets INR4.235 M INR7.5 M INR12.0 M

WASTE MANAGEMENT BUSINESS PLAN 19
Equity and Liabilities
Current Liabilities
Accounts Payable INR220,000 INR400,000 INR800,000
Long-Term Liabilities
Long Term Loans INR530,000 INR530,000 INR530,000
Total Liabilities INR750,000 INR930,000 INR1.43 M
Shareholders capital INR3.0 Million INR3.0 Million INR3.0 Million
Retained Income INR300,000 INR800,000 INR1.4 Million
Total shareholders capital INR3.3 Million INR3.8 Million INR4.4 Million
Total capital and liabilities INR4.05 Million INR4.9 Million INR5.8 Million
Break Even Analysis
A Break Even analysis sums the amount that revenues exceeds the point at which the
business starts to generate profit (Schutz, Rezg, & Léger, 2013). For Break-Even analysis,
Sigma Waste Management uses the following information, Total fixed expenses and PBIT.
Breakeven point in units = Fixed Cost/ (Sales Price - Variable Cost)
Breakeven point in units = 1,200,000
(600 – 200)
Breakeven point in units = 3,000 units
Breakeven point in value = INR1, 200,000
Table 7: Break Even Analysis
Revenue Margin (Sales %)
Sales price per unit INR600
Gross profit margins INR600,000
Variable costs INR200
Net profit margin INR400,000

WASTE MANAGEMENT BUSINESS PLAN 20
Fixed Costs
Salaries INR200,000
Operational expenses INR400,000
Operating and salaries INR600,000
Total fixed Costs INR1,200,000
Break Even sales in INR (annual)
PBIT INR800,000
Total fixed expenses INR400,000
Amount to Break Even (yearly) INR400,000
Graph showing break even units and value
Break-Even Point
(units) = (3,000)
Break-Even
Point ($'s) = ($400,000)
Total Fixed Costs TFC = $1,200,000 Formulas:
Variable Cost per
Unit VCU = $800.00 BEP (units) = TFC/(SPU-VCU)
Sales Price per
Unit SPU = $200.00 BEP ($'s) = BEP (units) * SPU
0 400 800 1200 1600 2000 2400 2800 3200 3600 4000
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
TFC
TVC
TC
Sales

WASTE MANAGEMENT BUSINESS PLAN 21
Sigma Waste Management financial ratios
Financial ratio analysis is usually calculated using the financial data, and this analysis
is affected by the changes that arises in the financial statements from various items like
financial inflation (Yay, 2015). Financial ratio analysis is important as the first step of the
financial analysis in order to attain rapid pointer of the business economic health in its
economic life.
Table 8: Projected financial ratios
Ratio type Working formula Year 1
Gross profit Sales-direct total cost (INR) 600,000
Gross profit margin Gross profit x 100
Sales
600,000 x 100
900,000
1,900,000 x 100
2,100,000
3,100,000 x 100
4,400,000
66.6%
0.9%
70.4%
Return on equity Net profit after tax x 100
Owners’ equity
600,000 x 100
3,300,000
1,900,000 x 100
3,800,000
3,100,000 x 100
4,400,000
18.1%
50%
70.4%
Return on investment Net profit after tax interest
600,000
1,900,000
3,300,000
Contribution margin Sales – total variable cost
900,000 – 600,000
2,100,000 – 1,400,000
4,400,000 – 2,100,000
300,000
500,000
1,300,000
Contribution margin
percentage
Contribution margin x 100%
Sales
300,000 x 100
900,000
66.6%

WASTE MANAGEMENT BUSINESS PLAN 22
500,000 x 100
2,100,000
1,300,000 x 1000
4,400,000
23.8%
29.5%
Business ethics
Compliance with Sigma Waste Management code of conducts
Sigma Waste Management employees are required to comply with all the rules specified by
the business as part of the employees communications on the day to day basis.
Employee’s personal duties
The company employees should sustain their personal roles as further code of conducts. This
particular business ethic usually comprises of diverse data that considers the moral and legal
results to any individual employee who goes against the stipulated policies.
Personal values
The employee’s qualities will be conversed concerning how the experts execute everyday
communication with different employees, clients and suppliers and how they perform their
daily duties (Oguntoyinbo, 2012). The aspect of teamwork must to be kept at the most
notable possible state as this will provide the company with a better capability to reduce
unessential issues in the business.
Sigma Waste Management business control
The company is basically controlled by a team of managers who basically ensures that
efficient procedures and processes have been initiated well. Controls are the intelligent
procedures, processes and safeguards that basically protects the business from inappropriate
or uninformed decisions by any of the team manager (Guerrero, Maas, & Hogland, 2013).
Sigma Waste Management will ensure that it has more than one person basically being
involved in any one cycle of money since this is considered to be an essential check and
balance. Having more people being involved sign off on all funds cycles thus reducing any
potential temptation and also makes theft or fraud less likely. The company will also

WASTE MANAGEMENT BUSINESS PLAN 23
thoroughly check independent contractors and employees before it hires them so as to ensure
that the company deals with a trustworthy individuals. The company will also attempt to
reduce liquid cash because this is always an aspect that provide diverse temptations to the
employees.
Sigma Waste Management business sustainability
Sigma Waste Management will have a role of improving the environment and also dealing
with climate changes is basically certain. India’s corporate social responsibility rules purpose
as a self-regulatory structure that the business observes and ensure its active compliance with
the India law, moral practices, and global standards. Business sustainability is an appositive
aspect that assists develop the welfare of the society entirely (Barringer, 2012). The aspect of
business sustainability seeks to heighten responsibility for numerous corporate actions and
also to sustain a positive force on the environment and stakeholders that incorporates
communities, employees and investors. Sigma Waste Management will express business
sustainability through;
 Waste and pollution decrease procedures as levied by Indian law
 Contributing diverse educational and social plans as essential to the Indian people
 Attaining sufficient revenues on the exploited resources in India.
Conclusions
This business plan offer substantial information and actual figures to be utilized in starting-up
with the waste management company that recycle both solid and liquid wastes to both the
existing and the new customers in the entire nation (Oteng, Arguello, & Gabbay, 2012). The
SMART goal should also be utilized as this aspect is considered to be an apparent
determination of the whole business performance and this will ultimately rise the firm’s
revenue and share in the market. Sigma Waste Management will also add the Gross Domestic
Product of India since the company will offer diverse jobs openings to the Indian people. The

WASTE MANAGEMENT BUSINESS PLAN 24
nation will thus expend few resources in the overall services provision to the general public
as a result of the concentrated work chances available to the public. The business will also
increase the countries national income because of the aspects that the business will provide
employment opportunities to the citizens. Several people will work in the company and it will
reduce the countries dependency ratio.

WASTE MANAGEMENT BUSINESS PLAN 25
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