Start Your. Business Business Plan
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1 Start Your Waste Recycling Business A TECHNICAL STEP-BY-STEP-GUIDE OF HOW TO START A COMMUNITY-BASED WASTE RECYCLING BUSINESS Start Your Waste Recycling Business Business Plan INTERNATIONAL LABOUR OFFICE 1
2 Start Your Waste Recycling Business Business Plan October 2007 This Training Material is based on a training package that was originally produced in 2001 for the Sustainable Lusaka Programme by a task force of the International Labour Organization: Adapted by Royal Business Consult Trust, Harare Zimbabwe International Labour Office Norfolk Rd, Mt Pleasant Arundel Office Park PO Box 210 Harare, Zimbabwe Telephone: Fax: Copyright is vested in the International Labour Organisation. Nevertheless, short excerpts may be reproduced without authorization, on condition that the source is indicated. For permission to use or reproduce the contents of this training material, contact ILO on the address above i
3 EXECUTIVE SUMMARY Name of Business Type of Business Manufacturer Service Provider Retailer Products or Services Customers Owners Number of staff Required start-up capital Sources of start-up capital Amount ii
4 BUSINESS IDEA Name of Business The business is going to (write on the applicable line) provide the following product or products provide the following service or services run the following type of shop The customers will be The business will sell in the following way The business will satisfy the following needs of the customers 1
5 MARKET RESEARCH Needs and preferences Product or service Customers of customers Competitors 2
6 MARKETING PLAN PRODUCT/SERVICE Product or Service Quality Colour Size Packaging 3
7 MARKETING PLAN PRICE Product/Service Cost How much customers are willing to pay Competitors price Price Reason for setting this price Discounts will be given to the following customers Reason for giving discounts Credit will be given to the following customers Reason for giving credit 4
8 MARKETING PLAN PLACE Location The location is chosen for the following reason 5
9 MARKETING PLAN PROMOTION ADVERTISING Type of advertising Details Cost Sales Promotion Type of Sales Promotion Details Cost 6
10 FORM OF BUSINESS The Community Based Enterprise will operate as a The reason for choosing this form of business is The members of the Community Based Enterprise will be: Name Educational Background Relevant Experience 7
11 STAFF (Tasks of group members) Task Required skills and experience Performed by Monthly pay Total number of staff 8
12 SALES FORM PROJECTED SALES PER MONTH (Number of products/ services sold) Product type/service Quantity sold per month 9
13 MATERIAL COST FORM For service operators Direct material costs per item Item Cost per unit Quantity per item Total costs per item X = 10
14 LABOUR COST FORM for manufacturers and service operators DIRECT LABOUR COSTS INDIRECT LABOUR COSTS EMPLOYEE/ GROUP MEMBER PAY FOR TIME NOT IN PRODUCTION TOTAL Days worked in a month Hours worked per day Total direct labour costs Hours in production per month Total indirect labour costs; brought forward to the indirect cost form Number of employees in production x = x = Total number of hours in production Total cost of Direct labour per month Total number of hours in Total cost of labour per hour production = 11
15 LABOUR COST FORM (continued) for manufacturers and service operators Product/Service Estimated time for producing one item Labour cost per hour Labour cost per Item x = 12
16 Depreciation per month DEPRECIATION FORM Item Retail Price Product Life-span Depreciation per month TOTAL 13
17 INDIRECT COST FORM INDIRECT COSTS PER MONTH TOTAL INDIRECT COSTS PER MONTH Total indirect costs per month Total hours in production per month Indirect costs per hour Total time per item = X = Indirect cost per item 14
18 TOTAL COST PER PRODUCT/SERVICE SUPPLIED ITEM TOTAL DIRECT MATERIAL COSTS PER ITEM DIRECT LABOUR COSTS PER ITEM INDIRECT COSTS PER ITEM = TOTAL COST PER ITEM Total direct material costs per item from the material cost form Total direct labour costs from the labour cost form Indirect costs per item from the indirect cost form 15
19 REQUIRED START-UP CAPITAL Investments Business premises Construction or purchase of building Conversion/ reconstruction of premises Equipment Working capital Stock of materials Promotion Wages and salaries Rent Other Costs Total start-up capital 16
20 SALES AND COSTS PLAN 200 DETAILS JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL SALES DIRECT MATERIAL COST DIRECT LABOUR COST = GROSS PROFIT INDIRECT COSTS = NET PROFIT/LOSS 17
21 CASH FLOW PLAN PERIOD 1. Cash at the start of the month CASH IN 2. Cash in from sales 3. Any other cash in 4. TOTAL CASH IN 5. Cash out for direct material costs 6. Cash out for direct labour costs CASH OUT 7. Cash out for indirect costs 8. Cash out for planned investment in equipment 9.Loan repayment 10. Any other cash out 11. TOTAL CASH OUT 18
22 12. CASH AT THE END OF THE MONTH 19
23 ACTION PLAN Product Action Contact When Price Place Promotion Define the Form of business 20
24 Action Contact When Assign Business Tasks Costing Required Start-up Capital Sources of Start-up Capital Plan Your Finance Managing Your Finances 21
Start Your. Business Plan
STEP-GUIDE OF HOW Start Your Waste Collection Service A STEP-BY-STEP-GUIDE OF HOW TO START A COMMUNITY-BASED WASTE COLLECTION SERVICE Start Your Waste Collection Service Business Plan INTERNATIONAL LABOUR
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