Garbage is a promising business and also an eternal one, I came into it out of greed and still don’t regret it. In order for a waste business to generate income, it is necessary, if possible, to be present at all stages of the technological chain: removal, sorting, depositing and recycling. So far we are present at the first three, but our business model assumes that we will definitely engage in processing, increasing sufficient volumes of incoming raw materials. If you control the entire chain, you can collect added value at each stage. We take out the garbage - we get a margin of 10–15%, we sort - another 15%, we recycle - plus the same amount. The highest competition is in the logistics market, and with each new municipal competition it increases, bringing new players to the market, and the country’s real need is in sorting complexes, processing plants and high-quality landfills. There are still no full-cycle factories in Russia.
Today, companies of different levels and with different approaches work in the field of waste management. Someone is exploiting the infrastructure inherited from Soviet times, without investing in modernization and without developing new directions - this is an approach fatal for our ecology. Russia is choking on garbage. And the Moscow region is perhaps one of the most problematic. What is needed is comprehensive solutions to the problem: it is necessary to build new modern infrastructure facilities in accordance with European standards, at the same time it is necessary to update the container park, sites and vehicles.
Influential competitors
The Russian model of managing the utility sector differs from the European one. In Europe, the municipality is independently responsible for the quality of public services, collects money from the population and hires contractors through competition. Our management companies are responsible for this, they are the link between residents and utility sector enterprises - that is, they negotiate with everyone directly, without any participation from the state.
As a result, the heads of municipal administration have virtually no leverage over companies providing waste removal services. In order for the mayor to force a company to work well, he needs to go through a difficult procedure: create a yard inspection, conduct an inspection together with the local district police officer, prove that the service is being provided poorly, fine or sue the company. Now Moscow is trying to change the system towards the European model, abandon the institution of management companies and assume the right to hold contract tenders.
Separate waste collection is not yet very popular in Russia, while in Europe it helps people save significant amounts
For me, as an entrepreneur, this is a risk, because it is one thing when my customers are sixty management companies, and quite another when it is a municipality, which will be both a customer and a regulatory body.
The largest Moscow company in our sector is the State Unitary Enterprise Ecotekhprom. They control 50% of residential waste removal and 80% of recycling and deposits. The second largest waste removal company is MKM-Logistics, owned by the Chigirinsky family. They are followed by “Ecoline” by Gennady Timchenko.
Our priority is the construction of new modern facilities - MSKs and training grounds. Now there are 13 enterprises in 6 regions. We recently acquired the largest operator for the removal and disposal of medical waste in Moscow, so in the very near future Eco-System will create its own infrastructure for managing medical waste in the Moscow region.
Drinking employees
The utility industry traditionally suffers from a shortage of qualified personnel, and without the training of professional personnel, it is difficult to imagine its further successful development. There is also an acute problem of the prestige of the profession. Since Soviet times, people have had the belief that janitors are losers, drunkards, limit workers, and now also migrant workers. When I joined the company, I had to conduct a personnel audit and completely change the personnel policy. We have changed the principle of remuneration so that employees understand exactly what they are rewarded for and what they are punished for. You can evaluate the work of employees in different ways, for example, based on how much they traveled and transported, and not on how well they provided the service. Therefore, we first of all formulated what exactly our service is, and then translated this understanding into a system of employee motivation. We are not an ordinary cargo company and our clients do not pay us for driving our vehicles 100 km with some kind of cargo. We are paid for a high-quality and timely service, that is, for maintaining cleanliness, which has measurable parameters - everything must be done on time, quickly and accurately.
When people go to work, there should be no more garbage. In any civilized city, cleaning occurs in a short period of time, from 5:30 to 6:30 in the morning. It is believed that if you do not remove garbage within three days, it will lead to an environmental disaster. A city can be easily destroyed by paralyzing the waste system. This, for example, happened once in Naples. The owners of the landfill and the logistics company could not agree on a price, as a result of which the garbage collection system was paralyzed for a month, during which time Naples turned into a dump. The city was restored for a whole year.
Separate collection
In Soviet times, no one valued human, much less natural, resources, so during urban planning no special landfills were planned. Throwing garbage into the forest or into a ravine near the city was considered completely normal. There were experiments with collecting scrap metal and waste paper, but this was more a fashion than an indicator of effective waste management. We have not developed the habit of thinking about what and how you throw away.
Europeans perceive garbage as a raw material and understand that waste recycling is a complex and expensive process. For comparison: the average Russian family now pays about 600 rubles per year for waste disposal, and the average Austrian family - 500 euros. And here you need to take into account that for them this is the cost of removing already sorted waste. If the shipping company finds paper or food waste in the glass container, a fine will be issued. Not separating garbage in Europe is expensive and simply indecent. Russia can achieve this through evolution, but several conditions must be met. First, the cost of waste removal should increase. Secondly, there must be competition among companies dealing with waste.
Finding good employees to work in the garbage business is not easy. In order to restore order, Yakimchuk used a special assessment system
Companies could offer residents savings by separating waste at home. We have such experience in Astrakhan and Ryazan. This service has not yet received mass distribution, but is already very popular among educational institutions, which is important, since it is necessary to create a culture of waste management, as they say, “the sooner, the better.” For now we sell secondary raw materials. To start recycling on our own, we need to start serving about 5 million people.
Plastic, metal and pure cardboard are highly competitive raw material fractions: they are actively purchased and are in short supply. Plastic has become actively popular recently, because many new factories have appeared in Russia that process it. One ton of PET costs 380 euros in our country, and 500 euros in Europe. China is actively buying secondary raw materials. The trouble is that the garbage that has passed through the container and the garbage truck is mixed so that it turns out to be very difficult to separate them, and such dirty raw materials are cheap. Therefore, sorting before transport would benefit everyone. In fact, many janitors make extra money by sorting garbage. They stack bundles of cardboard or bags of bottles next to the containers, which are then picked up by representatives of recycling companies.
Landfills in the forest
Moscow produces from 6 to 10 million tons of garbage per year, and this is only household waste, and add medical, biological, construction waste to it - and all this needs to be stored somewhere. As a resident of Moscow, of course, I may not care where the garbage is taken out - the main thing is that it is not in my yard, but as a person who often visits the Moscow region, this is already important to me, because this is where it ends up. Half of the existing landfills in the Moscow region have long expired, and the number of unauthorized dumps continues to grow. As before, as now, garbage dumps appear spontaneously - without a plan or appropriate permits.
Ask any Russian mayor what their main headache is, and they will answer that it is landfills. Often, garbage is simply taken outside the city and dumped wherever necessary. For example, we once undertook to close unauthorized landfills in several regions - it turned out that it was difficult to even count them. There are about sixty operating facilities near Barnaul alone, none of which have a license. And how many we haven’t found yet!
Once, some guys organized a landfill right in a residential neighborhood of Astrakhan, and the residents blamed us because we were removing garbage from this area. Law enforcement agencies did not want to do this - we had to organize surveillance ourselves, find out who was behind it. As a result, after six months they simply upped and left - they probably found a new place. In the garbage business, the shadow sector is very large. Companies enter into an agreement to remove garbage, but no one cares where it is dumped. Most often, either into the forest or to long-closed landfills.
Russian companies are just beginning to explore the waste recycling market. But unauthorized dumps in forests have long become a tradition
The highest mountain of waste I have ever seen reached 25 meters. A ramming machine can still reach such a height. But the worst thing about a landfill is not what’s outside, but what’s inside. During the decomposition of waste, a toxic liquid is formed, which flows down and, if there is no protective geomembrane or clay castle at the base of the landfill, ends up in groundwater. After the landfill is filled, it is reclaimed: the garbage is allowed to settle for a year, compacted as much as possible, then covered with a layer of earth. To prevent methane, which appears as a result of decay, from blowing up the landfill from the inside (and this has happened), pipes are driven into it to different depths to remove the gas.
In Russia, I have not seen a single enterprise that collects landfill gas, so that it is freely released into the atmosphere. For comparison, in Europe, deep processing of waste is actively used, as a result of which a certain set of completely inert fractions, similar to sand, from which everything possible has been squeezed out, ends up being buried at a landfill. Glass, plastic, and wood are selected at the collection stage. They use the remaining food waste for agriculture and electricity generation.
Waste incineration plants
Incinerating waste does not destroy waste, but only reduces its volume to the detriment of safety. One ton of waste produces 300 kilograms of ash, while the waste itself has a fourth or fifth hazard class, and the ash has a second class: it is poisonous and requires special storage. The only thing more dangerous than it is radioactive and chemical waste. 60% of the cost of a modern waste incineration plant comes from cleaning up emissions into the atmosphere. In the center of Vienna there is a factory where a stork lives on the chimney as a sign of safety of emissions.
There is one scandalous anecdotal story regarding emissions from Moscow waste incineration plants. Mayor Luzhkov wanted to prove to journalists and environmentalists that the plant he built was safe, but during the interview, acrid pink phenolic smoke poured out of the plant chimneys. Without being taken aback, the mayor explained: “Don’t be afraid, there is such a wind rose here that all the smoke is carried away outside of Moscow.”
I don’t even want to think about where the ash from Moscow factories is taken, because it is known that we have not built any special storage facilities for this. But she's going somewhere! The capital's factories burn about 12% of all household waste in the city, which results in at least 300 thousand tons of ash.
Photos provided by the Eco-System press service
There are several stages of development, without taking into account which a waste removal business may turn out to be unprofitable or simply not recoup the investment costs.
Naturally, you need to start with completing all the necessary documents, as well as obtaining a license to work with hazardous types of waste materials, if in the future there is an opportunity to make money from their transportation. In the case of a license, it is necessary to purchase the necessary equipment in advance and hire trained personnel.In all other cases, you need to rely on the following points:
Firstly, you need to understand the difference in the price range of services for ordinary residents of houses in microdistricts or settlements and construction sites, organizations, etc. In the first case, the provision of services will cost significantly less, but will require less expenses.
Secondly, the main fact to pay attention to is the availability of transport. After all, the initial profit will directly depend on its tonnage and capacity for large-sized solid waste that can be loaded onto it.
As an example, you can consider the following option with the purchase of a new dump truck, for a fairly large amount. Such a vehicle will be very useful for removing construction waste and large items.
If the scope of activity only partially affects such sites, and the main source will be residential buildings in the private sector, then such a car will be completely unprofitable, since revenues will not cover the costs of fuel and personnel, not to mention profits.
For working with household waste, a Gazelle type machine will be more suitable; it will have such advantages as:
- fuel economy;
- high speed of transportation, and, therefore, more completed orders;
- lower repair costs;
- lower tax;
- and, most importantly, the purchase price is much lower.
- It follows that drawing up a business plan for waste removal begins with choosing a suitable vehicle for a specific area of work.
Like any other business, this type of activity requires an initial investment. Of course, you can have tens of millions, but the example will include minimum amounts for the initial development of the business.
The initial budget should be not less than 400,000 rub..
Since this amount will be allocated for the purchase of a car, as well as for all subsequent expenses, you can count on the following vehicles:
- Used Gazelle - RUB 200,000;
- Used ZIL - RUB 100,000;
- Used Kamaz - from 250,000 rubles.
This type of transport must be either a dump truck or a flatbed, since the booth will complicate the loading and unloading procedure.
Further, there will be waste in the amount of RUB 20,000–40,000. for diagnostic testing and preparation of a garbage truck.
Even if you take part in the work yourself, you will still need to hire one or two employees, although ideally there should be at least three people per car, one driver and two loaders. For everyone’s salary, you need to take away at least another RUB 15,000.
For rapid development, you need to invest money in advertising, with a newspaper, radio and distribution of leaflets, you will still need about RUB 20,000.
Weekly you will need to allocate another RUB 25,000. This amount will include the cost of fuel and other minor expenses.
As a result, the first week of work will cost 250,000–300,000 rubles. which means you need to start actively looking for a client base so as not to go bankrupt and provide the hired employees with salaries in the first month.
Garbage removal price
If we start from construction sites, then removal of the container costs in the area 6,000 – 10,000 rubles/month. This amount may be affected by the weight and hazard level of the waste.
The price for garbage removal from 8 m 3 is 6,000 rub. up to 40 m 3 14500 rub.
Residential complexes are not as profitable, but they do not require large expenses, the price fluctuates around 3000 rub./month. All detailed nuances, for example, the time when the team will arrive, are agreed upon in advance.
Perhaps the most profitable type of waste is hazardous waste; naturally, if working with it does not require special permission and a license, then the cost will be 15,000–30,000 rubles. the difference is influenced by the complexity of the task.
Eventually, if you collect up to 50 orders and, on average, pick up containers or tanks from each of them 3 times a month, at a minimum cost of 3,000 rubles, then it comes out to 150,000 rubles. From which the salary and car maintenance costs are deducted, leaving RUB 50,000 net. from one garbage truck. And over time, you can purchase a whole fleet of vehicles.
Additional income from recyclable materials
A business idea for waste removal is not uploaded, such material contains 100%:
- PET containers 40%;
- waste paper – 20%;
- glass containers – 10%;
- scrap metal – 5%
- textiles – 5%;
Everything else will have to be taken to landfills for burial. But, nevertheless, such an amount of recycled material will provide a start-up organization with quite good additional income.
You need to start by finding a suitable warehouse and site where you can sort secondary materials.
Assembled dimensional products, like plastic bottles or cardboard boxes, are themselves very light, but bulky, so you need to buy a press for them so that in the future they can take up a minimum of space and load as much as possible for delivery to collection points.
This also requires expenses about 100,000 rub.. on a standard press and from 50,000 rub.. for rent for the premises. In addition, three to four people will also be needed to perform direct sorting and loading the press with recyclables. Salary is negotiated individually, but this is at least 15,000 –20,000 rub./month.
Further, you can even open your own recycling plant, the raw materials for its work will be provided by previously purchased garbage trucks; in the future, such a business can make not only its owner quite wealthy, but will also make a huge contribution to cleaning up the ecological system of the natural environment. Company carried out according to the above described scheme.
Watch the video: Business Idea Garbage Removal
Arseniy Sheromanov has owned a waste disposal company for five years. What is needed to create a business? How to earn your first money? Where can I get the initial capital? What qualities are the most important for a businessman? How to get to the first position in the market? A businessman with extensive experience will answer this and much more.
- Start date of activity- year 2012;
- Main activity- recycling;
- Initial Investment- 4 million rubles;
- What did you do before starting business?- restaurant director;
- First serious earnings as a businessman- 130,000 rub.;
- Company development plans- become a leader in this industry;
- What qualities are the most important for a businessman?- openness, modesty, sense of humor.
How did the waste disposal business begin and how did it develop?
I was born into a family of scientists. My father was a physicist, and my mother worked in medicine. As you understand, I had two options for what to do with my life. After school I went to study at the medical academy, but in my second year I was expelled for poor academic performance.
At that time I was twenty years old, I was drafted into the army. After two years of service, I went to work as a waiter. Over eight years of working in the restaurant business, I grew in my position from waiter to director. But there wasn’t enough money, so I decided to dramatically change my life.
At that time, most of my friends went into business. I felt envious and uncomfortable. I thought: why am I worse? The matter remained “small”. It was necessary to choose a niche. There were several options:
I discarded the first option because I was very tired of this area. “Salesmen” always irritated me, so I couldn’t go against myself. The field of waste disposal and recycling seemed tempting and interesting, so I settled on it.
To carry out activities, it was necessary to register a legal entity and obtain numerous permits. It took a lot of effort and time to receive the papers - six months.
The waste disposal industry requires large initial capital. The initial investment amounted to four million rubles. I borrowed part of the amount from the bank, which I did not regret. It seems to me that a loan is the best option for finding money.
Material on topic: Loan as a way to raise initial capital.
For the above amount, I purchased two lines of equipment, which allowed me to start working in two directions:
- Recycling.
- Garbage sorting.
If we talk about the premises, there were no problems with it. From his late father he inherited an area in an industrial zone, which was used as a warehouse. The area was so large that I only used half of it and rented out the rest. This allowed me not to think about repaying the loan.
The waste management business is not automated. At first, forty workers worked at my enterprise. I saved a lot on their labor, since all the workers were from Central Asia.
As for special vehicles, at first I rented garbage trucks, and also had several drivers on staff. Now everything has changed, we are cooperating with a company specializing in waste transportation. We're losing a lot of money, but we've saved ourselves a lot of problems.
Photo 1. Unrecycled waste
Photo 2. Transportation of bulky waste
Do you remember your first serious income not as an employee, but as an entrepreneur?
Of course, this is impossible to forget. The company started making money from the first month, I didn’t see any money for the first six months. They went to pay workers, buy equipment, and pay off debt to the bank.
After six or seven months, I saw the first money - 130,000 rubles, for which I flew to Dubai with my wife.
What helped during periods of crisis, when everything collapsed and businesses closed?
My business is not subject to crisis, since the enterprise is supported by the state. We were not affected by the crisis of 2008 and 2012. This does not mean that there were no difficult periods.
This is interesting: State support for small businesses: how to get it and get away with it.
Two years after the start of activity, an inspection came in from the migration service of the Russian Federation. As I said earlier, I saved a lot on workers’ labor, which I later regretted. Forty people were immigrants from Tajikistan; of course, they did not have any documents.
Photo 3. Workers sorting garbage
I lost a huge amount of money.
Garbage removal - as a business, how much you can earn
After this incident, only citizens of the Russian Federation work at my enterprise.
During this period, the support of loved ones, my ingenuity and professional competence helped.
Why don’t you go to the capital, any Russian metropolis, or abroad? What's going on in the provinces?
Samara is a metropolis, more than a million people live here. I have repeatedly thought about moving to the capital. You have to understand, my business is not typical. We have not captured the entire market of the Samara region; we have many competitors here.
As you understand, there are even more competitors in Moscow. To cover the metropolis, colossal funds are needed, which are not available now. I think you should first capture the market in one city, and then look at the second, third.
If we talk about abroad, this is impossible. It is unrealistic to organize such a business abroad. Abroad, of course, attracts me. But if I go abroad to build a business, then the field of activity should not concern my profile. But this is my personal opinion, I could be wrong.
From what sources did you form the start-up capital? How much money did you need at the initial stage? What did you have to spend money on?
I have already stated that the waste disposal and recycling business requires enormous investments. The amount was four million rubles. Money was spent:
- for the rental of specialized vehicles;
- for the salary of an accountant, workers;
- for registration of a legal entity and payment of other state fees;
- for the purchase of equipment for sorting and processing waste.
Photo 4. Garbage sorting line
It’s good that I had free space at my disposal. Because long-term rent at that time was an expensive luxury for me.
He took out three million rubles on credit, an entrepreneur I knew invested five hundred thousand, and the last part was invested from his personal budget.
How did you scale up your activities? Did you use government support?
The business started with a loan. For the first six months, the company worked at zero, since I invested the money I earned back into the business. A businessman friend invested in my company and now has a small stake.
If we talk about state support from a material point of view, I did not resort to such help. However, you must understand that in my business there is nowhere without government support. The support of the state is that it helps in obtaining permits.
How was the activity legalized?
The company is legally registered. At the beginning of my activity, I opened a limited liability company. We work according to a simplified taxation system.
At the beginning of the activity, several business permits were obtained.
What is your relationship with inspection authorities?
Checks are routine. Once a year the equipment is checked for functionality. The last time the tax service checked it was three years ago, everything went well. Once the company was checked by the migration service.
Is there seasonality in your business?
Seasonality? Of course not. There is always waste, so the process of recycling, sorting and processing waste is always active. This is one of the main advantages of this niche.
What services do you offer?
Initially, the company specialized only in waste sorting. However, three years later he saved up money and started recycling waste.
I thought for a long time whether it was worth getting into the waste disposal niche. Since this is an expensive process and not always profitable, it is rarely possible to carry out proper combustion according to all standards. But I took a risk, and now we are specializing in this process. It brings in twenty percent of all profits.
Material on topic: How much can you earn from recycling waste?
Do you interact with the Internet?
We don't have a website. I do not get the point of it. The company does not need to interact with customers. We are looking for all personnel via the Internet. I think this is the most convenient way.
Is your business automated? What is your role?
If by the term “automation” you mean the operation of the enterprise without my participation, then no. The company does not make decisions without my knowledge. I think that the company could not have operated successfully for six years without my participation. I am at work from morning until late evening, which I do not regret. I enjoy doing this activity. Younger entrepreneurs have long been advised to outsource half of their processes, but I don’t want to take risks. And I can’t imagine what I would do in my free time from work.
Are you planning to develop in a different direction?
I like the construction niche. You can earn big money there. To begin with, you need start-up capital, which you don’t have. Now I am looking for an experienced entrepreneur in this field who can become a partner.
Are you familiar with the concept of “franchise”? How do you feel about such a business?
Familiar. I’ll say more, I purchased a coffee shop franchise, but things didn’t go well. This is my mistake, because I did not fully study and calculate the niche.
Franchising is an interesting type of business. You need to remember when buying a franchise, you still have to work hard to make money.
What should a successful entrepreneur be like?
Most importantly, a businessman must calculate the situation ten steps ahead. I think an entrepreneur should be humble. You shouldn't show how much money you earn.
What advice can you give to people who dream of starting their own business?
A person who believes in himself and his business can achieve success in business. A person must believe that his product is the best.
A young entrepreneur must understand that he will hear many refusals. They should not influence a person's intentions.
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Garbage removal
Many owners of plots in non-commercial garden plots are wondering how to remove garbage from the territory of the village. Let's look at the general scheme of organizing the process of garbage removal from the village.
Based on current legislation, the board of a gardening non-profit partnership (SNT) is obliged to organize on a regular basis centralized waste removal with preliminary cleaning of the territory of SNT. Companies that have a standard license to carry out this type of activity are allowed to operate in such a territory.
The SNT board is developing a waste removal scheme
The SNT garbage collection scheme may look like this:
The gardening areas are toured by specialized vehicles once a week, or a garbage container is installed on a specially organized site.
Scheme for collection and removal of household waste without special organization. Garbage business: who needs our waste?
waste bin sites and installations:
1. at the expense of the gardener;
2. The container is installed by the gardener near the site.
3. Garbage is loaded into the container in plastic bags.
4. Once a week, garbage is collected from containers by driving around the gardening area using specialized transport.
Scheme for collection and removal of solid waste waste with the installation of a garbage bin:
1. Order a container for waste removal at the expense of the gardener;
2. The container is installed on a specialized platform
3. Garbage is loaded into the trash container in plastic bags.
4. Once a week (approximate time for filling the container), containers with garbage are removed by specialized transport.
Garbage removal SNT is an important process, since every owner of his own home wants to feel at one with nature, and not among waste, which, in addition to cluttering the territory, creates a sharp and extremely unpleasant odor.
The MosMusorovoz company quickly and professionally removes waste from any territory, has all the necessary permits and licenses to carry out waste removal in Moscow and the Moscow region.
Garbage removal: Price
Rent of a garbage container 27 m3 From RUB 13,000.
Rent of a garbage container 20 m3 From 12,000 rub.
Rent of a garbage container 8 m3 From 5000 rub.
Order garbage removal
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When can you take out trash?
The Mosmusorovoz company operates around the clock and seven days a week. You can carry out garbage collection at any time.
To order a container for garbage, you just need to make a call, or leave a request on the website, and our specialists will contact you as soon as possible.
Business plan for waste removal
Creation of a waste removal company
We bring to your attention a ready-made business plan for the project “Creation of a waste removal enterprise.” This business plan was developed by highly qualified specialists for a “living” business project, complies with all international and Russian standards (UNIDO, TACIS, EBRD, MEDT of the Russian Federation, Ministry of Finance, Ministry of Agriculture, etc.) and will successfully pass inspection not only in Russian and international banks, but also in government agencies at all levels.
The volume of investment in the project is 6,802,172 rubles, the payback period is 24 months. The number of pages in a business plan is 62 pcs., the number of tables is 22 pcs., the number of graphs is 20 pcs.
For a small additional fee, our specialists are ready to make changes and adjust any financial parameters and descriptive part of the business plan so that it fully matches your project. But you can do this yourself, because by purchasing a ready-made business plan from us, you will receive all the source materials and a working financial model! Below you can find a brief summary, content and list of figures and tables.
1.1 Project goals and objectives
The goal of the project: to create a waste removal enterprise in the city of XXXXX.
The average volume of waste removal in the city of XXXXX in the year XXXXX was 120 thousand cubic meters. m.
In order to implement the project, it is planned to purchase 4 garbage trucks produced by JSC "XXXX". The number of employees at the enterprise will be 19 people.
To achieve these goals, the following tasks must be solved:
- purchase of harvesting machines;
- equipment for the management company office;
- obtaining the necessary approvals and permits, concluding contracts;
- start of the enterprise.
1.2 Project financing
Requirement for financial resources and financing structure
The need for financial resources for the project is 6,802.2 thousand rubles.
It is planned that funding for this project will be provided by:
- at your own expense;
- at the expense of raised funds.
The amount of own funds will be 1,360.4 thousand rubles (20%).
The need for additional funds is 5,441.7 thousand rubles.
Conditions for raising borrowed funds
To draw up this business plan, the following conditions for raising funds were accepted: the loan is provided for 36 months (3 years), for the period: January XXXX - December XXXX, the interest rate on the loan will be 15% per annum.
The loan is raised in stages, over 4 months (0.34 years: January XXXX - April XXXX), in accordance with the investment financing schedule.
Conditions for repayment of borrowed funds
It is planned to use 52% of free cash flow to repay the loan after paying current expenses, taxes and interest on the loan; the repayment period for the loan body will be about 32 months (2.67 years: May XXXX - December XXXX).
The loan is planned to be repaid from the 5th month of the project, in tranches of an average of 170.1 thousand rubles.
Loan interest repayment
During the entire period of the project, interest is accrued and paid on the funds used.
Interest accrued for the past period is paid at the beginning of the next period.
The amount of accrued interest for the period of using the loan will reach 1,151.9 thousand rubles.
1.3 Project indicators
The economic viability of the project was confirmed by calculating traditional financial indicators used in project analysis.
The project calculation horizon is 36 months (3 years).
| № | Indicator name | Indicator value |
|---|---|---|
| 1 | Project calculation horizon, years | 3 |
| 2 | Project calculation horizon, months. | 36 |
| 3 | Amount of capital invested in the project (LDC), rubles | 6 802 172 |
| 4 | Revenue volume for the project period (SP), rubles | 55 387 500 |
| 5 | Net average op. income per quarter (NAOR), rubles | 328 449 |
| 6 | Average cash balance funds per quarter (ADB), rubles | 2 431 049 |
| 7 | Net profit for the project period, rubles | 3 945 394 |
| 8 | Net income (cash balance (NV)), rubles | 3 945 394 |
| 9 | Average profitability over the project period | 7,1% |
| 10 | Discount rate (DR), % | 9,5% |
| 11 | Net present value (NPV), rubles | 2 340 408 |
| 12 | Average Rate of Return (ARR) | 19,3% |
| 13 | Return on Capital Employed (ROI) | 58,0% |
| 14 | Profitability Index (PI) | 1,35 |
| 15 | Internal rate of return (IRR) | 59,6% |
| 16 | Modified ext. rate of return (MIRR) | 39,8% |
| 17 | Payback period (PBP), months. | 24 |
| 18 | Payback period (PBP), years | 2,0 |
| 19 | Discounted payback period (DPBP), months. | 26 |
| 20 | Discounted payback period (DPBP), years | 2,2 |
1 LIST OF FIGURES AND TABLES
1.1 List of tables
Table 1. Financial and investment indicators of the project
Table 2. Volumes of solid waste generation (results of assessment of volumes of solid waste in XXXX year in the territory of one municipal formation of XXXX region)
Table 3. Waste accumulation standards
Table 4. Technical and operational indicators of waste incineration plants operating in the Russian Federation
Table 5. Technical and operational indicators of waste processing plants operating in the Russian Federation
Table 6. Typification of areas of the district territory according to the intensity of solid waste generation
Table 7. Morphological and physico-chemical composition of solid waste for different climatic zones, % by weight
Table 8. Current and predicted composition of solid waste in the city of XXXXX and Russia
Table 9. Comparative characteristics of waste incinerators and gasifiers
Table 10. Investment budget
Table 11. Schedule and financial plan
Table 12. Staffing table with salaries
Table 13. Structure of income by area of activity during the project period
Table 14.
Idea #315: How to start your own trash removal business?
Fixed costs
Table 15. Variable costs
Table 16. Taxes
Table 17. Analysis of cost structure (in relation to revenue)
Table 18. Distribution of tax payments by budget level
Table 19. Loan receipt and repayment schedule
Table 20. Financial and investment indicators of the project
Table 21. Impact of changing individual parameters on project performance indicators
Table 22. Project sensitivity analysis
1.2 List of drawings
Figure 1. Structure of investment costs
Figure 2. Schedule for financing investment costs, rubles
Figure 3. Schedule for financing investment costs, rubles
Figure 4. Exit to planned waste removal
Figure 5. Growth in solid waste removal
Figure 6. Revenue dynamics, rubles
Figure 7. Revenue structure
Figure 8. Structure of fixed costs (total fixed costs)
Figure 9. Structure of variable costs (total variable costs)
Figure 10. Structure of tax payments (for the project period)
Figure 11. Ratio of fixed and variable costs
Figure 12. Structure of distribution of sales revenue into costs and profit
Figure 13. Break-even point excluding the tax component, rubles
Figure 14. Break-even point taking into account the tax component, rubles
Figure 15. Break-even point of the project as a whole, rubles
Figure 16. Structure of tax revenues of budgets of all levels (for the project period)
Figure 17. Cash flows for attracting and repaying credit funds, rubles
Figure 18. Payment of interest accrued this month, rubles
Figure 19. Cash flows for the project, rubles
Figure 20. Project payback, rubles
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At first glance, what is so difficult about garbage removal? – I bought a garbage truck or a bunker truck, put the driver in the driver’s seat or got behind the wheel myself and off I went. The waste business is divided into 3 sectors:
- Directly ;
- Garbage sorting and;
- Disposal of waste at a landfill.
Each of the sectors requires a lot of effort and money to develop, so it is better not to try to cover everything. It is best to start by organizing a waste removal company, although this is not the most profitable segment of the waste disposal service chain.
Let's take a closer look at how to implement a business idea for organizing a waste removal company.
The waste collection scheme in Moscow looks like this:
1. — Client’s call to the dispatcher (order for removal);
2. — departure of a garbage truck with an empty bin to the specified address;
3. - at the customer’s premises (either for “loading”, when the driver waits for the container to be promptly loaded, or the bunker is left at the customer’s place for an agreed time);
4. – Loading with garbage onto the machine;
5. – The nearest garbage dump or landfill.
It seems to be nothing complicated, although there are many different “Buts” hidden here.
Problems encountered during waste removal:
— Moscow traffic jams. It often happens that a client refuses an order for garbage removal only because the car is delayed. And he doesn’t care that there are traffic jams on the route and the driver physically cannot be on time.
— Garbage truck breakdown. Starting from punctured wheels at landfills and dumps, ending with serious breakdowns on the road that require evacuation of the car. In this case, you need to transfer the order to a “friendly” company via .
- Accident. Pah-pah-pah – it’s better that this doesn’t happen. Even if you have insurance and your driver is not to blame for the accident, it takes a whole day to debrief, and along with it comes lost profits.
— The garbage dump refuses to take your garbage. There may be several reasons. For example, a garbage truck brought hazardous garbage (car tires or roofing felt) or cannot cope with the volume of garbage it brings.
In this case, you will have to urgently make a decision - where to take the garbage? Either leave the solid waste in the bins and wait for the sorting to open, or go to another transfer site. Whatever you choose, the result is the same - loss of time and additional costs for diesel fuel.
- Driver. Often, this is the biggest problem. Drivers of garbage trucks, especially Slavs, often drink and go on trips not sober or with a hangover. What does this mean for you – confiscation of the driver’s license and a simple car when searching for a new “steering wheel”.
Drivers are finding ways to make money on the side. Let’s say a client orders one bin, but in the end it turns out that the garbage doesn’t fit and they need another one. Here the driver negotiates “cheaper” on the spot. Accordingly, the profit remains in the pocket of your subordinate.
In the next part (how to organize a waste removal company - 2), we will describe the most interesting thing - the economic side of the organization.
Garbage removal is a very popular way to make money and a great idea for starting a business. Citizens regularly eat and do repairs, regardless of their region of residence, so it is impossible to avoid the generation of garbage. If you manage to conclude an agreement with construction sites, offices or residential complexes, then the business can go up very quickly.
Business registration and taxation
Any businessman, when opening a business, must go through the procedure of state registration of a company. It is best to create an LLC, since citizens trust a legal entity more. In addition, after receiving the status of a legal entity, you have the right to become a license holder.
Another undeniable advantage of an LLC is protection from unforeseen circumstances. If the founder is in debt to creditors, he will repay the debts only within the authorized capital of the company.
The type of taxation is chosen personally by the founder. A popular option lately is a simplified system. Because it frees the parties from painful reports. The founder must also select OKVED codes.
For a company that will be engaged in waste removal, the following is suitable:
- 90.00. 2 - removal and treatment of solid waste;
- 90.00. 3 - cleaning the area and similar activities.
To complete the registration process, you will need to pay a state fee and form an authorized capital, the minimum amount of which must be 10 thousand rubles. In total, it turns out that you will have to pay 20 thousand rubles for the registration process.
Business organization
After registering a company, it’s time to think about renting premises. It is best to remove it as close to the center as possible. You don't need a large amount of space. You just need a couple of offices for the manager and his employees.
In addition, you need to decide on the main nuance, namely the purchase or rental of vehicles. It's best to try the first option first.
As a result, you will save a large amount of money. And after that, if everything goes smoothly, you can think about buying special equipment.
It is better to purchase new transport, since the old one will break down under heavy load, and this will lead to additional waste and loss of profitable orders.
It is important to properly search for qualified personnel, including:
- Driver. They must have certain qualifications and not drink alcohol. Good knowledge of the city is also welcome.
- Accountant.
- Mechanic. If things go uphill and you expand your fleet, it will be more profitable to have your own mechanic than to contact a car service every time.
Transport
When choosing a car, you should take into account the scale of waste being removed. For example, a dump truck is perfect for transporting large products and construction waste. But you need to take into account its high cost.
If your company is mainly engaged in garbage collection from residential buildings, then this car will be unprofitable, since the income will not cover the costs of fuel and staff salaries.
The optimal choice of transport when removing household waste is a gazelle. Since it has the following positive qualities:
- low fuel consumption;
- high mobility, this facilitates the fulfillment of a large number of requests;
- low tax;
- inexpensive service;
- reasonable cost.
Search for clients
You may have to spend additional money on advertising, but thanks to it, your business will be launched faster. Moreover, it should be there even after the company is promoted, otherwise you may get lost among a large number of competitors.
- kilometers to landfill;
- amount of working time;
- cargo volume;
- transport downtime.
Construction garbage
This garbage is larger in size compared to household waste. It is important for a businessman in this area to know that construction waste is divided into hazard classes that they pose to the environment.
There are 5 classes in total, 1 of which is the most dangerous. Construction waste belongs to classes 4 and 5, respectively.
If you plan to engage in waste removal that falls into class 1-4, then you will definitely need to obtain a license. When removing class 5 waste, no additional paperwork is required.
Do you need an office?
Some businessmen prefer to give up the office at first to reduce costs. This is explained by the fact that to start work, a driver, loaders, an accountant and a dispatcher are required, whose role is initially performed by the owner himself.
Drivers and loaders are constantly in the car, and the accountant can carry out activities from home. But in the future, as the business develops, the premises will still need to be purchased or rented.
You will need the following private rooms:
- For the manager. It must be representative, since agreements will be discussed and concluded there.
- For the staff. In this case, it is necessary that each specific specialty have a separate office.
- Bathroom.
- Place for transport. A spacious parking lot is sufficient for this purpose, but if possible, it would be best to build a garage.
- Premises for storage if you are going to provide waste paper collection and processing services.
Financial component of business
The main thing is to find ways to attract investment in order to start a business. Start-up capital can be obtained as a result of the following actions:
- launching the initial stages of recycling. The company can collect and sort waste and create semi-finished products. It is necessary at the initial stage to decide what types of secondary raw materials you will work with;
- waste sorting, so you can set a certain price for waste paper or bottles.
A universal complex will bring the greatest profit, but to open it you need to spend a lot of money.
Cost of opening and maintaining
To open any business you will need to invest certain financial resources. Here the choice is entirely up to you. You can immediately spend 15 million on the purchase of transport and premises for the location of employees, and cars. This will allow you to cover a large amount of work.
You can purchase everything at a minimum, and then, after receiving a profit, begin expanding. In any case, you need to spend 2.5 million rubles to open a garbage call company. This money will go towards the following:
- About 2.2 million for the purchase of cars.
- Approximately 20 thousand will need to be spent on registering a business.
- From 70 to 200 thousand rubles will be required to obtain a license.
- Approximately 30-50 thousand will be required to rent the premises.
- Submitting an advertisement will take from 20 to 30 thousand rubles.
In general, these are all wastes that will occur at the beginning of work. As you can see, they are not small. Therefore, to achieve payback, you should be more active in looking for clients. Advertising will help you with this. Its effectiveness has long been proven.
In addition to the costs of starting a business, you need to consider that it needs to be maintained. Every month you will have to allocate money for the following:
Amount of future income
If you were able to immediately find a good volume of clients, then in the first months the company will be able to bring you an income of about 500 thousand rubles. If the business is well organized, profitability can reach up to 20 percent.
Payback period
Every businessman must look at things realistically. It is unlikely that in the first year of operation you will be able to fully recoup all the money spent on opening. As a rule, under favorable circumstances, the payback of the business occurs 2-4 years after opening.
The main thing is to constantly develop and offer clients an adequate price for your services. Because in this industry you will have many competitors who will dream of your ruin.