Business Plan: Mid-Oceanic Recycling Company (Entrepreneurship)

This business plan outlines the strategy for Mid-Oceanic Recycling Company (MORC), a company focused on recycling human waste and other waste materials to produce high-quality by-products, particularly organic fertilizers. The plan details the company's nature of business, which involves utilizing new and advanced technologies to create products that meet consumer preferences. The executive summary highlights the problem of increasing waste volumes, the proposed solution of collecting and recycling waste from municipalities, and the target market, including fertilizer producers and agricultural firms. The plan includes financial highlights, a PESTEL analysis of the business environment, and a Porter's Five Forces analysis to assess the competitive landscape. It also covers market segmentation, target market strategies, and projected market growth, emphasizing the increasing demand for organic compost manure and the limited direct competition. The business plan also includes the entrepreneur's background, innovation development process, and future plans for growth and expansion.

Business Plan for Mid-Oceanic Recycling Company 1
BUSINESS PLAN FOR MID-OCEANIC RECYCLING COMPANY
Students by (Name)
Professor’s (Name)
Course
Date

Business Plan for Mid-Oceanic Recycling Company 2
BUSINESS PLAN FOR MID-OCEANIC RECYCLING COMPANY
Table: List of abbreviations
The following letters represents the abbreviations related to the business plan discussed in the
steps below.
Rs/RS Rupees
E Expected
R&D Research and Development
L Lakh
JIT Just In Time
(Source: Author’s work, 2018)
A. Introductory page
Name and address of business
Ph no:
E-mail:
Name and address of the entrepreneur
E-mail:

Business Plan for Mid-Oceanic Recycling Company 3
Nature of business
The nature of the business is the idea of recycling the human waste and other waste
materials to come up of the quality by products which are used in day to day operations
(Salminen 2016). The plan employs the use of new technology and other advanced technologies
in coming up with quality products which satisfies the human test and preferences.
Statement of financing needed
Criteria(in Rs) Year-1 Year-2 Year-3 Year-4 Year-5
Start-up cost
and cash
requirement
30,000,000/- 25,00,000/- 21,00,000/- 17,00,000/- 12,00,000/-
Net working
capital
requirements
12,00,000/- 13,00,000/- 14,00,000/- 16,00,000/- 18,00,000/-
Total 42,00,000/- 38,00,000/- 35,00,000/- 33,000,000/- 30,000,000/-
1.0 Executive Summary
1.1 Problem
Human activities generate large volumes of waste, especially due to industrialization.
Further, the amount of waste is highly connected to consumption and manufacturing sequences
of people. Similarly, the high number of goods penetrating different markets poses another
potential challenge. Additionally, changing demographics, such as rapid increase in population
influence the amount of disposed of leftovers (Laurent et al. 580). Poor waste management has a
detrimental effect on the environment and human health.

Business Plan for Mid-Oceanic Recycling Company 4
1.2 Solution
Based in India , Mid-Oceanic Recycling Company (MORC) will primarily collect,
recycle, and market municipality waste processing organization and utilize is as an ultimate
consumer product. At the same time, it will cater for the increasing demand for organic soil
nourishments and fertilizers (Xue et al. 185). Most importantly, MORC will be the best approach
to minimize the harmful effects of waste on the environment and human. The primary materials
that will be recycled by this company are human sewage and other wastes collected by
municipality process firms.
1.3 Market
The target market for the recycled waste will include fertilizer producers, gold course
clubs, plat sales outlets, landscaping agencies, agriculturalists, and other related firms. All these
latent customers will highly gain the manure’s multiple soil nourishing features.
1.4 Competition
In India , the waste management industry is highly competitive. The primary competitors
include market leaders such as Camellia Resource Recovery Pte Ltd, Sembcorp Industries Ltd,
and Industrial Wastes Auction among others.
1.5 Financial highlights
Year 1
(S$,000)
Year 2
(S$,000)
Year 3
(S$,000)
Sales 1,200 2,500 3,500
Gross margin 1,000 1,300 2,000
Net profit 200 350 800

Business Plan for Mid-Oceanic Recycling Company 5
2.0 Overview of Idea Generation
2.1 The problem worth solving
In the modern world, various human activities develop waste. The way which these
wastes are managed, stowed, collected, and disposed of have a hazardous impact on the
environment and human health. Similarly, there is an increasing demand for organic manure for
soil nourishment. MORC will help manage this problem by meeting the high consumer demands
while conserving the ecosystem and public health.
2.2 Our solution
To collect, recycle, and market waste materials from municipality processing companies
for ultimate use as a consumer product.
2.3 Validation of problem and solution
MORC’s recycled products will provide municipalities with feasible and cost-effective
solution to increasing volume of human waste (Sadef et.al 2016). At the same time, it will cater
for the high demand of organic soil manures and fertilizers. In the process, the company will
make profits while conserving the environment and sustaining a healthy society.
2.4 Roadmap/Future plans
 MORC targets even sales within the first year of functioning and expanding annually.
 Develop a recycling plant in Pulau Ujong, to incorporate five composting units in the first
year.
 Open extra facilities in the first and second year to serve various municipalities of Pulau
Ujong and other cities across India .

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 Consistently market MORC by communicating with and lobbying for business for extra
cities and manure using customers.
2.5 Products and services
 Primary service- Provide municipalities across Pulau Ujong with an alternative way to
dispose of increasing volume of human waste.
 Primary product- Recycled waste for use as fertilizer
The company also offers a comprehensive solutions which are also alternatives for
refining and also retail for the re-use of plastics
2.6 Size of the business
MORC will be a 30-employee organization that primarily targets fertilizer producers, gold
course clubs, plat sales outlets, landscaping agencies, agriculturalists, and other related firms
across Pulau Ujong.
2.7 Background of entrepreneurs
Personally, my passion for conserving the environment started at a concrete stage when I noticed
that several people due that preventable diseases that emerge from poor solid waste disposals,
such as diarrhea and cholera. Therefore, MORC is the best approach to fulfill my passion
Name of the entrepreneur
Age/Sex
Educational qualification
Work experience The entrepreneur is associated with the family
experience on environmental skills and also the
broader knowledge on the research of the
environmental issues. The entrepreneur is also

Business Plan for Mid-Oceanic Recycling Company 7
motivated by the interest in the environmental
issues and the frequent visit to the
environmental companies.
Attributes of the entrepreneur The entrepreneur has a wider skills on
planning, innovation, self-confidence,
assertiveness, credibility and the persuasion
knowledge among others which enables him to
design a well system for the waste
management.
Factors influencing entrepreneur The profession and background are among the
motivational factors behind the proposed plan;
the desire to have a clean environment is also a
key factor to the proposed plan. The experience
on the environmental issues is also a playing
factor for coming up with the plan.
Culture The entrepreneur is associated with good
values and morals both from the family and on
the environmental issues .He also possess good
ethical and moral and also passionate about the
plan he is planning to undertake
Attitudes and behavior The entrepreneur has a fighting spirit which is
characterized with the perseverance and
creativity. His respect for the family and other
people is also good for the success of the plan.

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The entrepreneur possess good behavior to the
family as well as other people around him.
Risk taker The plan seem to be expensive but the
entrepreneur is perceived as someone is able to
take the risk so long as the dream of the plan is
fully achieved
2.8 Idea generation process
When I identified the waste management problem in Pulau Ujong, I was vigorously
engaged in intense discussions and brainstorming with my potential team about the significance
of the selected company, MORC.
2.9 Innovation and creativity development process
To achieve a full implementation of the environmental project like the recycling of the
human waste and other products, the innovative framework shown below is used.

Business Plan for Mid-Oceanic Recycling Company 9
The following represents all the processes associated with the innovative framework for
the full implementation of project. These include the following:
 Define the opportunity and the project
 Gather the data on the proposal plan
Questions and assumption and reframing them
 Incubate them
 Ideate or redefine
 Evaluation of the project
 Have a prototypes to the project
 Assess the outcomes of the prototype

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 Full implementation of the project
 Iterate the full project now
If the correct procedure is followed, then the final result will be a quality project where
all the objectives are met.
3.0 Market Analysis Summary
3.1 Business Environmental Analysis
3.1.1 PESTEL Analysis
External environment factors Description
Political Landfill tax, carbon targets, landfill targets, India legislation
and agreements, incentives such as recycling credits, public
sector procurement policies, and innovative techniques, such
as nudge strategies
Economic Site costs, access to funds, competition, landfill gate charges,
virgin material costs, market pull or demand, transport costs,
international labor charges, local labor costs, technology
costs, and recycle prices.
Social India consumption patterns, global consumer behavior, public
awareness, attitude towards recycling, NGO campaigns,
media campaigns such as alternative weekly collection, pro-
or anti-green sentiments
Technological Assembly, collection, sorting, recycling, material and final

Business Plan for Mid-Oceanic Recycling Company 11
use technologies
Environmental Oil reserves, virgin resource accessibility, carbon balance,
global warming control, landfill availability, and exploitation
effect, such as mining damage to ecosystems
Legal
Globalization
Digitalization
Deregulation
Waste procedures, planning system, landfill regulations,
facility registration, and contract issues.
The modern market. This will ensure the globalization of the
world market.
For the efficient performance of the company in the world
market there should be no any threat on world leading
markets. ;this will boost the economy at the same time
compete favorably in the world market
3.1.2 Porter’s 5 + 3 Forces Analysis
Porter’s Force Rating Description
Threat of new entrants Low High investment costs, strict regulations, high exit

Business Plan for Mid-Oceanic Recycling Company 12
barriers, limited cross-border labor
Bargaining power of
suppliers
High Unionized labor, large and strong suppliers, pay
premium for license and rights
Threat of product
substitutes
Low There are few or zero substitutes for waste
management products
Bargaining power of
buyers
Moderate Slow waste management industry growth in India ,
high strategic stakes, intense competition
Competitive rivalry Moderate Companies within the waste management industry
encounter moderate rivalry due to high mergers and
acquisitions (M&A)
3.2 Market Segmentation

Business Plan for Mid-Oceanic Recycling Company 13
3.3 Target Market Segment Strategy
3.3.1 Market Needs
Presently, many organizations participate in the fertilizer market. Mainly, their selling
points are performance and price. Nevertheless, health-focused customers have developed an
increasing competition between chemical and organic products. MORC’s competition can be
segmented into two types, including direct and indirect (Bueno, Latasa and Lozano 2015). To
begin, direct rivals involve other waste recyclers able to manufacture adequate product to cater
for the increasing manure demand (Yay 285). The indirect competition includes fertilizer
companies.
3.3.2 Market Trends

Business Plan for Mid-Oceanic Recycling Company 14
Current trends in the market favor new entrants in the recycling business due to
increasing volume of waste products. At the same time, there is a high demand for organic
compost manure.
The graph above shows the growth trend of the recycling products within the interested
countries and India being one of them and the projected market growth (Zhang, Tan and
Gersberg 2010).
3.3.3 Market Growth
The potential for growth and expansion in the waste management market is convincingly
high with regard to the following facts
 The municipalities are highly seeking for alternative means to manage the
increasing volume of human waste that is attributed to high population growth
 Market trends are moving towards products that promote organic soil
improvements and away from chemical products. MORC will meet this needs
 Limited direct competition in India , especially in Pulau Ujong
Primarily, this implies that MORC is in a position to witness tremendous market growth.

Business Plan for Mid-Oceanic Recycling Company 15
The figure below shows the bind in technological growth interns of the recycling
products (Xue and Cao 2016). and China being one of the beneficiaries of this kid of technology
it has a good projected growth within the market
3.3.4 Differentiation
Cost leadership- MORC aims to offer the lowest cost of operation in the waste
management industry.
3.3.5 Positioning
MORC will use the global positioning system (GPS) to replace the traditional approaches
that have been expensive, collect small amount of data, and low reliability (Tozlu, Özahi and
Abuşoğlu 2016). The GPS approach is accurate, reliable, and appropriate for a wide range of
solid waste planning reasons.
Strategist canvas
The strategist canvas position the company as one of the best in terms of the quality,
affordability, features, and the stylish outlook this makes it very important above other
companies.

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3.3.6 Tagline – clear, strong, authentic
“Enjoy nature. Recycle”
3.3.7 Proprietary intellectual property and IP strategy
MORC will be registered as a legal company that offers waste management services in
India . The product and related components, such as LOGO, taglines, and other brand identities
will be safeguarded by Copyright Registration Service in India
3.4 Competitor Analysis
3.4.1 Value Chain Analysis and BCG Matrix analysis
A. Value chain analysis
The value chain analysis (VCA) is an approach utilized to assess the internal company
practices. The figure below represents the VCA for MORC.
B. BCG Matrix Analysis

Business Plan for Mid-Oceanic Recycling Company 17
B1. MORC BCG Matrix Analysis
3.4.2 Industry Analysis and Competitors Analysis
Industry Analysis
In India waste management market is flowing into an era of active market wave and total
trash management system (Li, Fong and Chan 2015). Effective waste management applies smart

Business Plan for Mid-Oceanic Recycling Company 18
technologies, including Radio Frequency Identification (RFID), sensor vessels, and vacuum
ampules, which offer actual time assessment of solid waste (Moh and Manaf 2014). Effective
and well-organized control of human waste, which MORC guarantees, can manage several issues
associated with ecological pollution, climate shifts, and human health.
3.4.3 What are our Competitive Advantages?
Cost leadership
3.4.3. Competitive advantages
 Lowest price –Cost leadership this ensures good customer service
 Product uniqueness, exclusivity and innovative approach.
 Great quality of the by products
3.4.4 Competitors and Alternatives
Just-in-Time (JIT) delivery and efficient technology are the best alternative as it will help
MORC to increase efficiency and reduce waste by delivering recycled waste to customers only
as required in the manufacturing process which most competitors cannot offer (Yay 2015).
3.5 USP
Creativity- Doing business while safeguarding the environment and human health.
Additional features like durability makes the product very useful band mostly preferred by the
customers.

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3.6 Marketing Mix – 7Ps
3.6.1 Product
3.6.2 Place
3.6.3 Price
Pricing for Market entrance and penetration
3.6.4 Promotion
3.6.5 People

Business Plan for Mid-Oceanic Recycling Company 20
3.6.6 Processes
Value chain analysis
3.6.7 Physical Evidence
3.7 Marketing Plan
3.7.1 Marketing Plans for Year 0, Year 1 and Year 2

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3.7.2 Marketing Budgets for Year 0, Year 1
2. Marketing Budgets for Year 0 and Year 1

Business Plan for Mid-Oceanic Recycling Company 22
3.8 Sales Forecast for Year 1 and 2
Sales Forecast for 2017, 2018, 2019.
3.9 Marketing Strategy and Contingency Plans
Marketing plan- social media platforms, especially Facebook, Twitter, and Instagram
Contingency plans- strategic planning

Business Plan for Mid-Oceanic Recycling Company 23
3.10 Future Market Development Plans
To recruit competent workforce that will facilitate total waste management in India . At
the same time, MORC will ensure it delivers JIT services to its target markets.
4.0 Company and Management Summary
4.1 Company Profile
The legal and authentic name for the company will be Mid-Oceanic Recycling Company
(MORC). The organization will be created as a limited liability in India . Due to the country’s
tax benefits, this company will be beneficial not only to the nation’s economy but to the well-
being of its citizens.
4.2 Legal Formation
MORC will be a privately owned company that manages the increasing waste problem in
India .
4.3 Vision statement, Mission statement, and Core Values
 Vision statement – To be the market leaders in waste management industry across
India
 Mission statement MORC will recruit competent and high skilled employees who
will ensure effective waste management in India , especially in Pulau Ujong.

Business Plan for Mid-Oceanic Recycling Company 24
 Core values –integrity, quality, customer focus, environmental conservation, and
human health.
4.4Organizational Structure
The diagram below shows the organizational structure of the expected project starting
from the highest level of management unto to the lowest level.
4.5 Capital Investment
Private investment
Company is seeking financial support from the bank or will consider any funding from
venture as a source of capital (Bai and Sutanto 2012).The capital investing will include the
following: working capital together with overhead costs which are considered as investments on

Business Plan for Mid-Oceanic Recycling Company 25
fixed assets which include production unit costs, machinery and among others. The amount of
estimated capital investment is Rs 40, 000,000/-.
4.6 Start-up cost
The figure below shows the estimated start up cost of the prohect
4.7 Business Management
Personnel with responsibilities
Key Personal Responsibilities

Business Plan for Mid-Oceanic Recycling Company 26
Managing director Formulating and implementing of company's policy and also
responsible for the overall performance of the company.
Director Does all the day-to-day business activities of the company and
reports to the managing director.
Finance manager The improvement of profitability in the business is one of the
core responsibility he does; accounting, financial forecasting
and market analysis for business opportunities and expansion,
and report directly to the director.
Production Manager Responsible for assessing production activities like resource
requirements, production schedule planning, estimating
production budget, timescale management, ensuring health and
safety regulations, determining quality standards and so on,
will report directly to director.
Marketing and sales
Manager
Does all the work of accomplishing of the business
development activities such as market research, health and
safety management, growth and expansion ;responsible for
implementing the sales plans and managing staff to realize a
maximum result ,he will also report directly to director.
HR and operations manger Does all the work of training and development of employees,
recruitments for interviews and also the overall employee
related responsibilities such as overseeing inventory,
distribution of goods and overall operation related activities ,
will report directly to director.
Employees, assistants,
engineers
Responsible for working in various departments as mentioned
above and will be involved in assisting managers to achieve
respective goals and as per assigned responsibilities and will
report to the respective department managers. (Engineers will

Business Plan for Mid-Oceanic Recycling Company 27
be responsible for design, testing and R&D purposes)
4.7.1 Key personnel with responsibilities
The main employees within the MORC will be individuals who can recycle human waste
into a competent product that meets the high demand for manure.
4.7.2 Health and Safety Policy inside an organization
Employee and customer safety is a primary priority for successful entrepreneurs and
MORCis no exemption. MORC will ensure that it delivers a secure environment for its
employees and consumers at all times, thanks to the safety surveillance system at the company.
4.7.3 Working Policy
Dress code- Often, employees will put on clothes that reflect the companies goal and the
ultimate achievement, which is to minimize the detrimental effects of waste
4.7.4 Working Hours
Monday to Friday- 8.00 am to 4.30 pm
Saturday 8.30 a, to 12.00 noon
4.7.5 Management Team
The management team of the business shall include all the department within the
business who shall report to the respective directors;the director will then report to the Managing
Director (MD) of the company. The main work of the management team is to become
responsible in the formulation of the strategies and the policies of the business.
4.7.6 Management Team Gaps

Business Plan for Mid-Oceanic Recycling Company 28
To meet gaps related top payroll, inventory control, and cost accounting, MORC will
focus om point of sale (POS) system that enables effective flow of information between the
management and subordinates.
4.7.7 Confidentiality statement
The information, data, clues, and directions incorporated in this report are highly
confidential and are distributed on a comprehension that they will be held confidential and not
revealed to third parties without the consent of MORC management team.
4.8 Company Policy
4.8.1 Code of Ethics
With regard to the target market and business growth, MORC will conduct its business
ethically and honestly in its operations across the UAE. To attain this, the company will
constantly enhance the quality of services, products, and will constantly create a positive
reputation by recruiting competent workforce
4.8.2 Investor Relationship Policy
MORC, as a new and potential new entrant into UAE”s waste management team, will
focus its efforts into a category of corporate responsibilities in order to manage its operations
with honesty and transparency and establish a positive effect on social and ecological well-being
of people across India .
4.8.3 Corporate Social Responsibility
MORC will focus on ecological conservation, sustainable human health, and ethical
practices. At all times, the company will work towards empowering the society.
4.8.4 Corporate Governance

Business Plan for Mid-Oceanic Recycling Company 29
The company will utilize knowledge management (KM) model to promote information
sharing among its employees. KM framework is an essential approach that will help MORC gain
a competitive advantage through innovative practices in the UAE, especially in its primary
operations.
4.8.5 Donation and Charity Policy
MORC will set aside 5 percent of profits to donate to national and local charitable
services
4.8.6 Government rules and regulations
MORC will strictly follow all the government laws and regulations as per India legal
system and these protocols will effectively balance legislative and regulatory reforms for general
growth of the enterprise.
4.8.7 Intellectual Property Right
I will acquire a patent right from the government of India
4.9 Business Model

Business Plan for Mid-Oceanic Recycling Company 30
4.9.1 Main core Business Model
MORC will be a cost driver
4.9.2 Customer Retention Model
The customer retention is a very important issue for the company’s success and its
achievement may be through the following framework:

Business Plan for Mid-Oceanic Recycling Company 31
Table: Factors contributing to Customer retention
4.9.3 Business Strategy
 Product Differentiation Strategy

Business Plan for Mid-Oceanic Recycling Company 32
 Price-Skimming Strategy
 Acquisition Strategy
5.0. Financial Plan Summary
5.1. Cash required
5.1.1. Start-up cost and cash requirement
The company requires a total of Rs 4200,000/- in order to start of all its operations. The
owner of the business requires a total of Rs 16,00,000/-and he seeks a bank loan to help him
facilitate the running of the business.
5.1.2. Assets (buying position: lease or buy)
The table below shows the requirements of the company concerning the lease or buy and the total
fund allocation.
Assets Amount (in Rs)
Leasing Rs 5,00,000/-
Equipment, Machinery Rs 5,00,000/-
Inventory Rs 10,00,000/-
R&D+Training and development 4+1=Rs 5,00,000/-
Cash Rs 5,00,000/-
Total Rs 25,00,000/-
(Source: Author’s work, 2018)
5.1.3. Working Capital requirement (Current assets – Current Liabilities)
Table: Working Capita break-up
Working Capital requirements Amount (in Rs)
Current Assets (CA)

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Inventory 11,00,000/-
Cash 5,00,000/-
Total 10,00,000/-
Current Liabilties (CL)
Current Loan(for 1st year) 5,00,000/-
Working capital 10,00,000/-
(Source: Author’s work, 2018)
5.1.4 Timing and finance
The company will require the bank loan to help it facilitate its functions in time; this loan
should within time for quality delivery.
5.2 Source of Finance
The sources of the finance shall include the loan from bank, the owner’s investment and
contribution from close relatives
5.3 Company's overhead cost
The company's overhead cost add up to approximate cost of Rs 4200000
5.3.1. Product Cost
The table below shows the complete break up. The cost includes all the aspects associated
with the creation of the final product.
Table: Product Cost sheet for the period two years
Quantity manufactured 600
Cost per unit Rs 800/-
Cost (5000 units) Rs 42,00,000/-
Direct cost

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Raw materials consumed (opening stock,
purchase)
Rs 6,00,000/-
Direct wages Rs 2,35,000/-
Direct expenses (R&D) Rs 6,00,000/-
Total direct costs Rs 12,35,000/-
Indirect Cost
Lease Rs 5,00,000/-
Other (Power, Machinery and so on) Rs 10,00,000/-
Total Indirect cost Rs 15,00,000/-
Office and admin costs Rs 10,00,000/-
Selling and distribution costs (including
marketing)
Rs 1,65,000/-+Rs 1,00,000/-=Rs
2,65,000/-
Total cost Rs 40,00,000/-
Total cost per unit Rs 800/-
(Source: Author’s work, 2018)
5.3.2. Sales and Distribution Cost
This cost is covered is in the budget allocated to the Inventory. However this aspect does not
require much finance as the company will get into strategic alliances with the retail stores and
online platforms to make their own arrangements to collect the products to sell in the after-
market.
5.4. Financial Highlights

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The business plan has all the financial highlights as shown in all the financial statements from
the chapter four to the financial summary. All the startup capitals and other running expenses is
shown in the financial tables
5.5. Interest
The company will pay an interest of 15% p.a for the amount of Rs 30,00,000/- borrowed from
the bank.
5.6. Project Appraisal
5.6.1. Technical and Technological Viability
Application of the new technology is very important in the design of the new product. Since the
project is majorly based on the use of waste products and the human waste, advanced technology
is highly needed for the quality and efficient products.
5.6.2. Financial Viability
The production of the materials is targeted to produce materials of low costs but are liked by
many customers. The financial viability is also assured by the expected profit that will be
received from the company.
5.7. Financial Planning- Income and Cost perspective
5.7.1. Sales planning (Revenue/ Sales Forecast)
Table: Sales planning forecast
Sales Forecast Year 0 Year 1
Units 6000 11,000
Selling price per
Unit
Rs 2500/- Rs 2500/-
Revenue Rs 1,25,00,000/- Rs 2,50,00,000/-
(Source: Author’s work, 2018)

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The nature of sales forecast is not estimated in terms of number of units the company plans to
sell in the first and second of operations which gradually increases the number at a constant rate
by 6000 units every year. These assumptions will help the company make a company realize a
higher profit and make better estimates of future sales.
5.7.2. Cost Planning (Expenses)
Expenses Amount (in Rs)
Inventory +Machinery 5,00,000/-+5,00,000/-=10,00,000/-
Wages, Insurance and so on. 2,35,000/-
R&D 5,00,000/-
Marketing 1,65,000/-
Legal 1,00,000/-
Interest 5,00,000/-
Total 25,00,000/-
(Source: Author’s work, 2018)
5.7.3. Profitability
Start-up cost: Rs 42, 000,000/-.
Sales Forecast Year 0 Year 1
Units 5000 10,000
Cost Price Rs 40,00,000/- Rs 80,00,000/-
Selling Price Rs 1,25,00,000/- Rs 2,50,00,000/-
Total Profit Rs 85,00,000/- Rs 1,70,00,000/-
(Source: Author’s work, 2018)

Business Plan for Mid-Oceanic Recycling Company 37
5.8. Financial Planning- Financing perspective
5.8.1. Initial Investment
The company will require an initial investment of Rs 42,00,000/- to start full fledge operations.
Please refer to section 4.5 and 4.6 for break-up of capital investment required and start-up cost.
5.8.2. Returns and benefits for Venture Capitalists
The invested amount in the start-up is Rs 42, 00,000/- and as per the 1st year sales forecast and
profitability predictions the company intends to have.
5.8.3. Working Capital (Year 0, Year 1)
The working capital requirements for the first year is RS 11, 00,000/- which the com
5.8.4. Timing of finance
The company will require Rs 42, 00,000/- to start all its overall operations.
5.8.5 projected profit and loss
For effective operation of a company, the projected profit of the company should be higher than
the loss. This is achieved by customer relation and production of quality products.
5.8.6. Projected Cash Flow (Year 0, Year 1)
Projected Cash
Flow
2017 2018
Cash Inflows 60,50,000/- 1,42,80,000/-
Investment 15,00,000/- -
Bank Loan 25,00,000/- -
Total cash inflow 1,00,00,000/- 1,42,80,000/-
Cash outflow
Operating
expenses
24,50,000/- 27,20,000/-
Total cash 24,50,000/- 27,20,000/-

Business Plan for Mid-Oceanic Recycling Company 38
outflow
Increase/Decrease
in cash
76,50,000/- 39,10,000/-
Cash at the
beginning of the
year
0 76,50,000/-
Cash at the end
of the year
76,50,000/- 1,15,60,000/-
(Source: Author’s work, 2018)
5.8.7. Projected Balance sheet (Year 0 and Year 1)
Assets Amount (Rs)
Year 0
Amount (Rs)-
Year 1
Current Assets
Others 5,00,000/- 5,00,000/-
Inventory 5,00,000/- 10,00,000/-
Cash 76,50,000/- 1,15,60,000/-
R&D 5,00,000/- 5,00,000/-
Total current Assets 91,50,000/- 1,35,60,000/-
Non-current assets
Equipment,
Machinery
5,00,000/- 5,00,000/-
Fixed and Intangible
assets
-
Total assets 96,50,000/- 1,40,60,000/-
Equity 50,00,000/- 50,00,000/-
Liabilities
Current Liabilities
Payables 21,50,000/- 55,60,000/-
Borrowings 25,00,000/- 20,00,000/-

Business Plan for Mid-Oceanic Recycling Company 39
Total current
liabilities
46,50,000/- 75,60,000/-
Reserve - 15,00,000/-
Total liabilities 96,50,000/- 1,40,60,000/-
(Source: Author’s work, 2018)
5.8.8. Business Ratios
1. Current ratio= Current asset/ Current Liability-liquidity ratio
Current ratio Year 0 Year 1
Proposed
company
1.96 1.79
(Source: Author’s work, 2018)
5.9 Future Expansions- Financial perspective
5.9.1. Year 0 and Year 1
The company will improve its finances through the analysis done from the expenses and the
income.
5.9.2. 2020 Expansion
2020 expansion- Company perspective
The company will increase its sales targets further to improve financial flow in the company.
The company will use the profits into expand into global markets.
The company shall develop products to improve the cash inflow in the company.
The company will reduce its debts and liabilities and focus on the profit.
(Source: Author’s work, 2018)
5.10. Business Financial Risk and mitigation controls

Business Plan for Mid-Oceanic Recycling Company 40
5.10.1. Financial risk and mitigation controls
The financial risk and mitigation controls will be applied in the business through improvement
on products quality and also provision of backups where necessary.
5.10.2 Constituency planning
This involves four stages namely: addressing the business operations, identifying the risk,
creation of the plan and finally applying the plan to the problem.
5.11 Major financial risks/Constraints
Cash flow
Unforeseen expenses
Catastrophic change
Occurrence cycle
These are the examples of major challenges in the business.
Production Planning summary
6.1. Manufacturing process

Business Plan for Mid-Oceanic Recycling Company 41
(Source: Author’s work, 2018)
6.2. Physical plant
This will include the raw materials and other equipment for work such as machinery
6.3. Machinery and equipment
The physical plant will include 4 machines made based on the requirement of the process.
6.4. Names of suppliers of raw materials.
This will include all the municipalities and other organizations that deals with the waste.
6.5. Technology utilization
The latest technology will be applied in all the processes of product formation
6.6. Inventory Management
The inventory management will be done by the owner by ensuring good stock and quality of
the products maintained.
6.7. Sustainability planning
The planning for sustainable development shall be done by the directors and heads of every
department. Customer development shall also be maintained.
7.0. Operational planning summary
The section covers daily operation of the business: its location, equipment, people, processes,
and surrounding environment of the business
7.1. Overview of operation
7.1.1. Organization Planning
The organization planning involves the production, labor requirements, the inventory,
personnel and all the stake holders within the organization.

Business Plan for Mid-Oceanic Recycling Company 42
7.1.2. Legal identity
The company is to be registered as a private limited company .The company is maintain its
patent after the registration.
7.1.4. Registration
The company is to issue with certificate of cooperation after the registration.
7.1.5. Requirements for limited company
All the rudiments of a company to be registered must be fulfilled before the registration is
done.
7.1.6. External advisor
No external advisor needed in the company
7.1.7. Solicitors
The company will seek the help of an external legal advisor to furnish the legal proceedings
of the company and will be contacted when necessary.
Legal advisor:
The company is to hire any legal firm depending in the need.
7.1.8. Tax accountant
All the tax related issues shall be handle by team of financial officers
Work of operation
7.2.1. Business hours
The operating time of the company shall be from 8am to 6pm
7.2.2. Staff members

Business Plan for Mid-Oceanic Recycling Company 43
Total organization consists of 20 individuals inclusive of Managing director (1), director
(1), managers (4), assistants (2), engineers(2) and employees (10).
7.2.3. Work organization chart
7.3. Operative Planning
7.3.1. Working hours for employees
Each department is to be given a schedule for all the duties for proper functionality.
7.3.2. Work requirement

Business Plan for Mid-Oceanic Recycling Company 44
Proper attire should be maintained during the working hours.
3. Recruitment and training
The training and recruitment will be done based on experience and shall be done
by the directors.
7.3.4. Materials and equipment
The raw materials shall be brought to the company at a specified time. Servicing
of equipment shall be maintained annually.
7.3.5. Flow of orders for goods/services
The company shall place the orders of the raw materials annually. The already
made products shall then be taken to the market for sale.
7.3.6. Health and safety regulation
All the employees and members associated with the operations will be insured
suitably and strict health and safety regulations.
7.4. Layout information
7.4.1. Location
The location is strategically chosen and is in India. The address and details of the
location is strategically near the large municipalities.
7.4.2. Layout premises
Both the offices and premises will be under one roof within the company.
7.4.3. Working policies
The company follows strict rules with regard to the working conditions; these
include the attendance, harassment and leave for the workers.
7.4.4. Backup plan

Business Plan for Mid-Oceanic Recycling Company 45
The company will adopt the leasing programs to strengthen its financial status.
This will be done appropriately.
7.5. Operational strategy
All the operational strategies shall be done by the directors with the help of the
head of departments.
8.0. Development planning strategy
8.1. Future development
The business will venture into research and other technical ideas to improve on
the quality of products and customer satisfaction.
8.1.1. Service development
The company will invest mostly on online market and other means to reach a
number of customers.
8.1.2. Product development
Further research will be done to improve on the quality of the products.
8.1.3. Product diversification
Different products will be manufactured depending on the taste and preference of the
customers.
8.1.4. Market development
Due to the in-depth analysis of the technology in the sector the company will
develop market based on improving crucial segments such as size, growth, benefits and
internal fit to meet the customers demand.
8.1.5. Business Model

Business Plan for Mid-Oceanic Recycling Company 46
The business model in the chapters above should focus mostly on the strategies
and leadership for the quality output
2. Back-up plan
The company has come up with a back-up plan in case of some unforeseen situation
which requires the winding up of the overall business process.
8.2.1. Long-term Plan
The company is planning to grow from a private-limited company to a public limited
company .This will help it to meet the economies of scale.
8.2.2. Important assumptions
Examples of the assumptions made are the positive response of the customers towards
the products, sales and the targeted income statement and other financial expectations of the
company.
8.2.3 Risks
The potential risks associated with the overall business include:
Choosing the right team, Legal risks and Market adoption.
8.3 Business development strategy
8.3.1 Market strategy
The intended market strategy is to manufacture the best products that are considered
as the customers taste and preference.
8.3.2. Price strategy
By offering the best quality of products in the market, this will automatically
strengthen the price of the products.

Business Plan for Mid-Oceanic Recycling Company 47
8.3.3. Operational strategy
The company is develop its own operational strategy from the top to the bottom
leadership of the company.
8.3.4. Financial strategy
It is the utilization of funds efficiently by reduction in cost and good spending
activities of the company by investing in the areas which will provide maximum profit to the
company.
8.3.5. HRM strategy
This will be strengthen through proper communication among the stakeholders.
8.3.6. Projected cash-flow
This will be determined by the number of sales of the products against the
expenditure.
8.4. Fund Management
8.4.1. Plan for fund development activities
The company needs around Rs 42,00,000/- to start the operations. The part of the
money should come from the owner and other part from the other sources.
8.4.2. Organize fund development activities
This will be done by the Managing Director under the laid down rules and policies
8.4.3. Staff fund development activities
This will be guided by the formulated financial laws of the company.
8.4.4. Managing fund development within budget
Thorough market research will be funded to improve on this.

Business Plan for Mid-Oceanic Recycling Company 48
8.4.5. Promote the organization
The organization shall be promoted through market research and production of
quality products to the market.
9.0 Findings
From the business plan, it is identified that waste products when utilized well can be
able to be used to make good products. The products can be sold hence improving the living
standard of people. Again it is observed that the project requires a lot of funds to start and
maintain it thus the owner should be able to source for more funds for the nobble course.
10. Recommendations
I therefore recommend for further research to improve on the quality of the products
made from the waste products. Continues market research on customer’s preference should
also be encouraged for the quality to be achieved.
11 Conclusion
The business plan if fully implemented can impart positive change to individuals in
terms of self-employment among the stakeholders. The general waste and human waste are
important raw materials for the quality products if properly recycled. Use of advance
technology may result into a better and a quality product to be taken to the market.

Business Plan for Mid-Oceanic Recycling Company 49
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