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Feel free to copy this Generic RVM Business Plan. The information will have to be split up to coincide to the proper page number.

 

Table of Contents

 

Company Direction................................................................................ 3

 

Company Overview ..............................................................................    3

Legal Business Description

Objectives

Capital Requirements

Management (p.4)

 

Customer Service.................................................................................   4

 

Product Strategy..................................................................................   4

Current Product

Operation Strategy (p.5)

Research and Development (p.5)

 

Market Analysis...................................................................................   6

Market definition and growth

Customer (Supplier) Profile

Competition

Risks

Product Liability

Legal and Government

 

Marketing Plan....................................................................................   7

Coverage

Pricing

Sales Strategy

Advertising and Promotion (p.8)

 

Financial Plan.......................................................................................  8

Assumptions

Financial Statements

Payback Strategy

 

  Conclusion…………………………………………………………….   8

 

Your name and address with date goes here.

 


 

Name of Banker

Bank name

Bank address

 

 

Dear Banker:

 

I am currently seeking financing to acquire a major role in the local aluminum recycling market for $amount. My company name is __________. I believe that the future business plan for My company name will be of interest to you.

 

 

 

Introduce your business talents here.

 

 

 

Introduce the business opportunity which will put your company in the forefront of the reverse vending market for your area

 

 

 

Thank you for your consideration in this business opportunity. Please feel free to contact me if you have any questions.

 

Sincerely,

 

Your name

Owner of your company

Website address

 

Attachments:

Pictures / Sheets of:

·        Pictures and additional information of RVM units

·        Aluminum Association statistical data of the Aluminum market

·        Information from Automated Recycling about their performance and conclusive data. (Found on the web www.can-machines.com)


 

 

Company Direction

 

In 20__, My Company Name is to become the premiere recycler of aluminum cans in the Local Area. Utilizing the most advanced automated recycling centers known as Reverse Vending Machines (RVMs) will make this an attainable goal..

 

Company Overview

 

Overall, our company can be characterized as a Reverse Vending Machine (RVM) or Buy-Back-Center operation. Reverse Vending is the purchasing of aluminum cans from the public and reselling them for a considerable markup.

 

The legal form of My Company is a ________________. We chose the ________________ form because of the uniqueness of the company.

 

My company's business office is located at __________________.

 

 

Objectives

 

Based on our projected revenues for the current fiscal year and our projected annual growth, we feel that within ____ years My Company will be in a suitable position for further expansion abroad. Our objective, at this time, is to propel the company into a prominent local market position. 

 

Capital Requirements

 

According to the opportunities and requirements for My Company described in this business plan, and based on what we feel are sound business assumptions, our total capital requirements are for $__________.


 

Management

 

Ψ      Your name and names of others in this venture along with management experience:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer Service

 

In this business, the sellers are the primary "customer". The sellers are the Public. Excellent customer service is the number one priority. The RVMs will be regularly visited and customers will have their issues resolved within 24 hours. A telephone number along with an address will be available for customers to call or mail for concerns or comments.


 

Product Strategy

 

Current Product

 

My Company will sell UBC (Used Beverage Containers / soda cans) to salvage dealers. Please refer to the section Market Definition and growth for further information concerning the aluminum market and trends.

 

Operation Strategy

 

The RVMs would all be placed in _____ area shopping centers or other businesses. The machines would be checked and cleaned regularly. Based on current data, I estimate a machine should get full at least once to 5 times a month. What drives the volume is the price paid to the public for their cans. Due to the volume of cans, I would also be able to demand a premium price for the cans on resale.

 

Research and Development

 

The RVMs supplied from Automated Recycling are state of the art in control technology and in design. The RVMs are designed to require the least amount of preventative maintenance and be the extremely user friendly. You may want to add additional information found on the web site

 

 

 

 

 

 

 

 

 

 

 

 


 

Market Analysis

 

Market Definition and growth

 

The aluminum market itself is well described by the Aluminum Association.

 

Attached to this letter are pages from the Aluminum Association web site to help one to better understand the current and nature of the market.

 

Supplier (Public) Profile

 

My Company's target market includes individuals who desire to recycle conveniently while on the go.  The most typical customer for our product is someone who is going shopping and desires to conveniently recycle their aluminum cans.

 

Competition

 

There is no known competition in the ______ area. (Population ________ +) The closest competition is in ____________. There are four older RVMs in that town. The next closest is ____________ where there are 12 older style RVMs.

 

Risk

 

The top business / economic risk(s) that My Company could face would be a "fall out" of the aluminum market which is very improbable even in a slow economy. Please refer to the pages supplied from the Aluminum Association to see how the market has changed up to today.

 

Product Liability

 

My Company will have ____________ dollars in liability insurance and will continue such coverage. This is necessary to operate in front of stores.

 

Legal and Government

 

The State and Local ordinances or zoning laws that may impact our product (if any) are minimal due to the nature of the business. My Company will stay abreast of legal issues facing our industry through industry publications and legal government risk reduction strategy.


 

Marketing Plan

 

Coverage

 

My Company's marketing strategy is to :

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pricing

 

The prices for our products are determined first and foremost by the market value. The price paid to the public will fluctuate with the market so as to protect the profit margin as much as possible. If in case the market dipped too uncomfortably low, labor would be reduced to compensate. I highly doubt that this would happen with the price of aluminum based on the facts presented in the Aluminum Association web site. Some pages are included with this letter.

 

Compared to the competition of local recycling centers, our payout to the public will be lower due to the cost of convenience. (Open 7days / 24 hours a day)

 

Sales Strategy

 

The RVMs will need to be put in place as fast as possible to minimize any start up growth delay. (See Marketing Plan) By keeping the machines and their immediate area clean and running smoothly, the customer base will become firmly established in a relatively short period of time.

Due to the volume of cans taken in, My Company should be the largest recycling company in the area to buy from the public thus we would be able to demand a premium price from buyers such as _________.

The price difference between what is paid for and received for the aluminum is planed to remain constant.


 

Advertising and Promotion

 

An advantage to this style of RVMs is that they advertise themselves in the public. Please see attached pictures. However, I plan on continuously running a small add in local newspapers advertising the locations. This will cost about $50 a month. On the machines themselves, there will be the addresses of the other machines. An additional possibility is to have a reciprocating agreement with an advertiser that we will advertise each others' product.

 

Financial Plan

 

Assumptions

 

Our financial projections are based on the following assumptions:

·        The rent for the machine spots (location) will be____________________. There may be additional revenue from advertising on the machine.

·        The electrical costs (approximately $9 a month) will be paid by _______.

·        The machines will be placed in time and ready for the spring rush on recycling.

·        The price of Gas to be at $x.xx a gallon.

 

Financial Statements

 

They are included with this letter

 

Payback Strategy

 

The financial projections indicate that the loan pay off could be achieved comfortably within ________. I currently plan on paying the loan off at the set time frame until solid results are tabulated to project an early payoff date.

 

Conclusion

 

With my experience in ______________and based on the attached financial projections, I am very confident that this is a sound business venture.