Assignment

Entrepreneurship & Leadership

Submitted To:
Sir Sadaqat Ali

Submitted By:

Nouman Ul Waheed 13-ECT-01

Hasan Kafil 13-ECT-09

UNIVERSITY OF ENGINEERING AND

TECHNOLOGY TAXILA
(SUB CAMPUS CHAKWAL)
 Concept Statement
E-Waste Recycling

Product.
E-waste recycling is a global environmental issue in recent technology era. Electronic
products waste dangerously increasing volume of obsolete computers, printers, fax machines,
TVs, mobiles and other electronic devices. The Environmental Protection Agency estimates
that only 15-20% of e-waste is recycled, the rest of these electronics go directly into landfills
and incinerators.
Target Market.
The most technology owners are from the government, public or private industry sectors and
they prefer replacing an old computers printers, fax machines, TVs, mobiles and other
electronic devices with a new one, rather than upgrading it which leads to land up with huge
e-waste. In Pakistan electronics repairing shops require large amount of spare parts.
Social and Industrial Benefits?
By starting an e-waste recycling business one can make money out of helping environment
toxic free. The objective to start an e-waste recycling work is to create an opportunity to
transfer e-waste into socially and industrially beneficial raw materials like valuable metals,
plastics, glass etc. by using simple cost effective technology. The recycling industry is in an
ongoing battle with the decrease in commodities prices and improper disposal, but the
growing sector of e-waste recycling is especially difficult to manage. For example, if e-waste
is improperly disposed of, toxic materials could seep into soil and ground water, as well as

pose a risk for those who are handling the e-waste.

Research and Plan for E-Waste Recycling.
E-waste recycling business is some sort of complex and capital intensive business. Before
start, have a market study on it. Determine what are the specific products that we are going to
deal with? Where from we will purchase the waste material? Who will be the customer?
According to the established set up, equipment and manpower requirement; plan to start up
budget.
 Business Plan
E-Waste Recycling

Cover Page
Table of Contents
I. Executive Summary Facilities and Equipment
II. Industry Analysis IX. Management Team and
Size, Growth Rate, and Sales and Company Structure
Projections Management Team
Industry Structure Board of Directors
Nature of Participants X. Financial Projections
Key Success Factors Sources and Fund
Industry Trends
Long-Term Prospects
III. Company Description
Company History
Mission Statement
Products and Services
Current Status
Legal Status and Ownership
Key Partnerships (if any)
IV. Market Analysis
Market Segmentation and Target Market
Selection
Buyer Behavior
Competitor Analysis
Estimates of Annual Sales and Market
Share
V. The Economics of the Business
Revenue Drivers and Profit Margins
Fixed and Variable Costs
Operating Leverage, and Its Implications
Start-up Costs
Break-Even Chart and Calculation
VI. Marketing Plan
Overall Marketing Strategy
Product, Price, Promotions, and
Distribution
Sales Process (or Cycle)
Sales Tactics
VII. Design and Development Plan
Development Status and Tasks
Challenges and Risks
Projected Development Costs
Proprietary Issues (Patents, Trademarks,
Copyrights, Licenses, Brand Names)
VIII. Operations Plan
General Approach to Operations
 Business Location

I. Executive Summary:

E waste is the term coined to all the discarded and refused electronic devices and peripherals
that are dumped into landfills. Every year, approximately 55 metric tons worth e-waste is
deposited throughout the world and the mercury is only on the rise!

A survey has projected that majority of the consumers and enterprises that discard electronic
devices and shred them to landfills through agencies are not completely aware of the benefits
of recycling and re-assembling the discarded elements. Or in some cases the recycling aids
don’t reach them on time. E-waste recycling is a global environmental issue in recent
phenomena. In Pakistan, electronic product waste dangerously increasing volume of obsolete
computers, printers, fax machines, TVs, mobiles and other electronic devices.  Of the nearly
8 million PCs in India and Pakistan, 2 million are only for software up gradation is accounted
as e-waste. The most technology owners are from the government, public or private industry
sectors and they prefer replacing an old computer with a new one, rather than upgrading it
which leads to land up with huge e-waste. The Environmental Protection Agency estimates
that only 15-20% of e-waste is recycled, the rest of these electronics go directly into landfills
and incinerators.

By starting an e-waste recycling business one can make money out of helping environment
toxic free. The objective to start an e-waste recycling company is to create an opportunity to
transfer e-waste into socially and industrially beneficial raw materials like valuable metals,
plastics, glass etc. by using simple cost effective technology. E-waste recycling business
includes the responsibilities of collection and procurement of waste form the various
organizations, get the useable part apart, resell and refurbish the usable material, extraction of
valuable metals plastics etc. and turn them into raw materials for further industry use.

The first step taken to start the recycling of e-waste would include the analyzing factor of the
business run at large. Planning comes into picture here. Complete market research is
important before starting any business and hence, here also the same procedure has to be
applied. Doing a survey on the e-waste management so that a plan is formulated in this
regard. The details such as the acquiring of the e-waste, machinery used for recycling and the
employees being appointed and most importantly, the budget required for the business are
required to be pooled in accordingly.
It is required to obtain license from the authority in the city and apply for registration at the
Small Scale Industries Unit. Both are equally important to run the business on legal basis.
Also the list includes that of pollution control board, whose acceptance is also necessary in
this regard.

By starting an e-waste recycling business one can make money out of helping environment
toxic free. The objective to start an e-waste recycling work is to create an opportunity to
transfer e-waste into socially and industrially beneficial raw materials like valuable metals,
plastics, glass etc. by using simple cost effective technology. With enough managing ability
and source information, the e-waste business will hit the heights of success eventually. Just
going with the rules and there we are giving the competition as another growing company.
The CEOs of e-waste companies have earned a lot with their skill by managing the e-waste
and implementing the techniques to make the project a big success! So it’s our turn now to
choose and grab the opportunity.

II. Industry Analysis.

Target appliances for the facility include

i) Small household appliances (EU WEEE cat. 2): in general

ii) IT and telecommunications equipment (EU WEEE cat. 3): focus on desktop PCs,
IT accessories, CRT and LCD monitors, laptops, printers, scanners, copiers
iii) Consumer equipment (cat. 4). The focus is set on CRT and LCD TVs.

It was decided to base the business plan calculations on these types of appliances due to the
following reasons:

i) The selected types of appliances are most relevant concerning quantities, content
of resource efficient substances and potential negative environmental impact due
to hazardous components.
ii) The calculations had to focus on typical appliances concerning the mentioned
aspects to allow modeling procedures concerning output composition and
financial performance.

It is expected that other types of appliances will be found in the input as well, like irons or
other small household appliances. However, such devices can be treated in the facility as well
without relevant influence on technical and financial aspects. An exception are end-of-life
cooling and freezing appliances, which are a of public concern due to their content of climate
relevant gases and hazardous substances. Contrary to other equipment they are also relevant
concerning quantities. Hence the depollution and recycling of cooling and freezing appliances
is not considered in this business plan. Including those appliances would require a separate
business plan.

i. Industry Threats & Opportunities:

 Laws governing the disposal of e-waste strongly influence the industry and are
expected to grow
 Electronic waste legislation has grown during the past five years
 Electronics manufacturers will demand industry services at greater rates over the next
five years.

ii. Industry Analysis & Industry Trends:

Despite recessionary challenges, the industry has performed well over the past five years in
the wake of a consumer preference shift toward green products and growth in environmental
regulations that encourage recycling of electronic waste. The industry is anticipated to
experience healthy growth over the next five years as purchases of electronics drive demand
for the recycling of obsolete products and regulation for the industry increases. The recycling
industry is in an ongoing battle with the decrease in commodities prices and improper
disposal, but the growing sector of e-waste recycling is especially difficult to manage. For
example, if e-waste is improperly disposed of, toxic materials could seep into soil and ground
water, as well as pose a risk for those who are handling the e-waste.

iii. Industry Report:

The distribution of electronic goods recycling establishments largely reflects the size and
distribution of the population and levels of economic activity. These establishments include
the electronic goods collection, sorting, processing and recovery facilities directly owned by
industry operators, but do not include electronics collection points in third-party locations,
such as in electronics retail stores. Local and regional operators dominate the Electronic
Goods Recycling industry, which explains the general correlation between regional
population size and number of industry establishments. 

iv. Additional Insights for the Electronic Goods Recycling Industry:

Key Success Factors for a business. The most important for the Electronic Goods Recycling
Industry are:

i) Ability to attract local support/patronage.

 ii) Having an extensive distribution/collection network.

iii) Must comply with government regulations.

III. Organizational Plans:

The organization will include all the major departments like sales, customer, audit, finance,
HR, Administrative, store.
The responsibilities involved in the company recycling are great and abundant. Recycling's
main purpose is to appeal to municipalities by offering a human waste disposal alternative,
and to environmentally conscious minded consumers by developing products that include
recycled human waste. Each executive member will have several responsibilities that are
imperative to fulfill the duties in producing such unique product.
As founder and president of Green Clean Recycling, Mr. Nouman will be responsible for the
entire operation. Some of his duties will include overseeing the areas held by the other
company executives, as well as the output produced by other employees. He will be in charge
of the company's public relations. He will also have the job of hiring dedicated people and
ensuring employees put their best efforts into the production of Green Clean Recycling
Recycling's products. He will have the lead role in making decisions that concern the well-
being of Green Clean Recycling.

Mr. Hasan has an important job as operations manager. His job will be crucial in the
growth of Green Clean Recycling. He will ensure that day-to-day operations are
conducted such that materials are received, methods and processes are standardized,
and production is maximized to ensure uniform production of compost materials. This
duty will entail establishing a good working relationship with production line
employees because without them Green Clean Recycling's products will not be
produced. Mr. Azan will be responsible for Green Clean Recycling's financial

Management operations including accounts payable, accounts receivables, and

bookkeeping.

IV Market Analysis:

a. Global E-Waste Management Market:

It is one of the fastest growing waste streams in emerging as well as developed regions. The
reduced life spans of electrical, electronic and consumer electronic devices are generating
large E-Waste, which is growing rapidly every year. The growth of E-Waste market is
supplemented by the growing need for upgrading to the latest technologies. A desire towards
the adoption of new technologically advanced devices leads to generation of millions of tons
of E-Waste across various regions. According to the United Nations initiative to estimate E-
Waste production, the world produced approximately 50 million tons of E-Waste in 2012, on
an average 15 of lbs per person across the globe.
To reduce the E-Waste generated across the world, E-Waste management initiatives are being
taken by the government agencies of various regions. Market players are taking measures to
recycle the E-Waste in order to reduce the pollution and environmental hazards caused by it.
In June 2014, Dell, a leading computer manufacturer, launched its first computer made of
plastics obtained from recycled electronics. The company has started selling its first computer
“the OptiPlex 3030” which is made up of old electronics using closed loop recycling process.
Recently, Dell has also started using recycled plastics in its other desktops and monitors.
Millions of refrigerators, TV sets and cell phones are replaced with newer versions due to
user’s growing inclination towards technologically advanced gadgets. In 2010, US discarded
about 258 million units of computers, cell phones, TV sets and monitors. This exported E-
Waste is then recycled in developing regions which generates revenue for the market.

b. Segment Overview:
The world E-Waste market is segmented by E-waste source and type. Developing countries
lead in recycling the E-Waste, as majority of E-Waste is exported to emerging countries by
developed countries.  Amongst all sources of E-Waste such as IT and telecommunications
and consumer electronics, refrigerator sets from household appliances are discarded in
highest number as compared to other appliances. The decrease in the life cycle of electronic
products viz. computers, laptops, cell phones is generating large amount of electronic waste.
c. TOP WINNING STRATEGIES:
The different strategies sought by the leading players in the e-waste management industry are
tracked from their recent developments in e-waste management business. The key strategies
adopted are expansion, partnership, and innovation. Expansion is the major strategy utilized
followed by partnership.
For instance, Stena Metall AB, Enviro-Hub Holdings Ltd., Boliden AB have established new
facilities at different location to expand their presence.

d. TOP FACTORS IMPACTING WORLD E-WASTE MANAGEMENT

MARKET:

e.

Decreasing life span of electronic devices would drive the e-waste management market:
The rapid technology advancement and frequent innovations in the product has been leading
to rapid surge in the sale of electronics products. Especially mobile devices, televisions and
computer devices are experiencing fast growth across the world. With increasing purchasing
power and rising trend of disposable income, the sale of these electronics devices is
increasing continuously. In addition, the new product launches with updated features and
additional services are attracting the customers to upgrade their old products with new
products. This has reduced the life span of these devices to about 3-4 years. Thus, this is
adding more and more e-waste at a tremendous rate. The ongoing sale of electronics products
especially in emerging countries would provide lucrative environment for e-waste
management in the coming years.

f. High rate of obsolescence would add the e-waste in tremendous volume:

The nature of electronics devices is such that they get obsolete or need repair from time to
time is a major cause for the generation of e-waste. The cost of replacing a electronic device
is lesser than those getting repaired. Therefore, it has been observed that there is a growing
tendency to purchase a new product rather than repairing those. This increased obsolescence
rate is leading to huge generation of e-waste currently.

g. Low awareness in developed regions would slow the e-waste management activities:
Presently, people in most part of the world, are not aware of the problems caused by e-waste.
They still do not know about the effects of such kind of waste on the environment, resulting
in a low number of recycling activities almost all over the world. This is further augmented
by the absence of strict regulatory frameworks in many countries. But the situation is
changing slowly across the globe, primarily due to the increasing number of initiatives by
various organizations coupled with formation of strict regulatory frameworks. This is
ultimately leading to increased activities for managing e-waste, which would create
conducive environment for e-waste management in the coming years.

KEY BENEFITS Of E-WASTE MANAGEMENT MARKET:

 The study provides an in-depth analysis of the World E-Waste Management Market to
elucidate the prominent investment pockets in the market.
 Current and future trends are outlined to determine the overall attractiveness and to
single out profitable trends to gain a stronger foothold in the market.
 The report provides information regarding key drivers, restraints, and opportunities
with impact analysis.
  Geographically, the market is analyzed based on various regions.
 SWOT analysis highlights the internal and external environment of the leading
companies for current strategy formulation.

V. The Economics of the Business:

a. Pricing Strategy.
The going rate per ton for raw depends on material and still vary from 50 to 3000. This price
is low enough to ensure rapid growth in the market yet still provide a very healthy profit. This
is possible because we are on the front end of the industry growth in this region.
Additionally, we will be priced at market rates for the waste service.

b. Sales Strategy.
Our present management team will become the main sales force when operations begin. Sales
force will increase as business demand permits. In the first six to twelve months of
operations, our sales team will focus its efforts. The team will promote the products based on
their environmental strengths and extended duration. Recycling will use other channels of
selling after the first year. Face-to-face contact and direct mail selling are part of the selling
plan.
VI. Marketing Plan.

The primary focus of our marketing strategy must be to increase sales and
profitability business quickly. This can be achieved by face-to-face contact, and an effective
publicity and promotion campaign.

a. Value Proposition:

Our value proposition is two-fold.

Value proposition for municipalities : We offer a service that is a cost effective, budget
saving means to addressing a growing waste disposal problem.

Value proposition for end users of compost material: This will help in improving
environment.

b. Competitive Edge:
Cost: The price of the renew product is much less than new one. 
Recycled: Recycled products characterize a "caring company" and are more appealing to the
customer's.

Elimination of disposal issues: Municipalities now have a waste that takes up landfill space.
Our service recycles the waste which saves valuable landfill space.

More effective between application times: Normal times between applications can range
from two to four weeks. Our product lasts for many months, thereby saving the customer
time and money (no additional expenditure for more product).

The marketing strategy is the core of the main strategy:

1. Emphasize high value, high quality products and services.

2. Build a relationship oriented business.

3. Focus on environment.

c. Promotion Strategy:

Our promotional strategy will be two-fold: first phase promotion will focus on before,
during, and six months following our opening; the second phase of promotion will deal with
the long term. The purpose of the first phase is to assist with rapid market entry to ensure
early and sustained profitability. The purpose of the second phase is to ensure long-term
growth and help propel us toward achieving our goal.

d. First Phase Promotions:

Publicity: We will send news releases to all of the major newspapers. Publication of news
articles about Recycling will lend great credibility and be an excellent way to let all target
markets know about this new, innovative business and the solutions it provides.

Advertising: We will utilize direct mail and face-to-face promotional strategies to raise
awareness about our products and services in the target markets. Newspaper advertising may
also be used.

Internet: We will have a content heavy website geared toward educating potential customers
about the benefits of our products and services. All literature, business cards, etc. will include
our website and e-mail address information.

Second Phase Promotions.

Publicity: As the business grows and expands we will continue to seek publicity through
news media to tout our successes. 
Advertising: We will continue to make face-to-face contact with customers and potential
customers. Mail-outs will be done again within a few months of start up. The second round of
mail outs will be updated to reflect the benefits provided to customers thus far. Such mail-
outs will be sent periodically. 

Internet: We will continue to have a comprehensive website. The website will be updated to
provide responses to frequently asked questions. After the first six months, and certainly after
the first year, we will evaluate the viability of having target clients advertise on our site, and
conversely, we will evaluate viability of advertising on our target clients websites (if
applicable).

VII Design and Development Plan.

The purpose of the design and development plan section is to provide investors with a
description of the product's design, chart its development within the context of production,
marketing, and the company itself, and create a development budget that will enable the
company to reach its goals.
There are generally three areas we will cover in the development plan section:

. Product development

. Market development

. Organizational development

Each of these elements needs to be examined from the funding of the plan to the point where
the business begins to experience a continuous income. Although these elements will differ in
nature concerning their content, each will be based on structure and goals.

The first step in the development process is setting goals for the overall development plan.
From our analysis of the market and competition, most of the product, market and
organizational development goals will be readily apparent. Each goal we define should have
certain characteristics. Our goals should be quantifiable in order to set up time lines, directed
so they relate to the success of the business, consequential so they have impact upon the
company, and feasible so that they aren't beyond the bounds of actual completion.
Goals for Product Development
Goals for product development should center on the technical as well as the marketing
aspects of the product so that there is a focused outline from which the development team can
work. For example product development of e-waste recycling is that yield the product from
the waste parts. In terms of market development, a goal might be, "Develop collateral
marketing material." Organizational goals would center on the acquisition of expertise in
order to attain your product and market-development goals. This expertise usually needs to be
present in areas of key assets that provide a competitive advantage. Without the necessary
expertise, the chances of bringing a product successfully to market diminish.
Procedures
With our goals set and expertise in place, we need to form a set of procedural tasks or work
assignments for each area of the development plan. Procedures will have to be developed for
product development, market development, and organization development. In some cases,
product and organization can be combined if the list of procedures is short enough.

Procedures should include how resources will be allocated, who is in charge of

accomplishing each goal, and how everything will interact. For example to produce a formula
for generating a product from usable parts.
The development of procedures provides a list of work assignments that need to be
accomplished, but one thing it doesn't provide are the stages of development that coordinate
the work assignments within the overall development plan. To do this, we first need to amend
the work assignments created in the procedures section so that all the individual work
elements are accounted for in the development plan. The next stage involves setting
deliverable dates for components as well as the finished product for testing purposes. In
Terence P. McGarty's book, Business Plans That Win Venture Capital there are primarily
three steps you need to go through before the product is ready for final delivery:
1. Preliminary product review
All the product's features and specifications are checked.

2. Critical product review

All the key elements of the product are checked and gauged against the development
schedule to make sure everything is going according to plan.

3. Final product review

All elements of the product are checked against goals to assure the integrity of the prototype.
Scheduling
This is one of the most important elements in the development plan. Scheduling includes all
of the key work elements as well as the stages the product must pass through before customer
delivery. It should also be tied to the development budget so that expenses can be tracked.
But its main purpose is to establish time frames for completion of all work assignments and
juxtapose them within the stages through which the product must pass. When producing the
schedule, provide a column for each procedural task, how long it takes, start date and stop
date. If we want to provide a number for each task, include a column in the schedule for the
task number.
Costs

That leads us into a discussion of the development budget. When forming our development
budget, we need to take into account all the expenses required to design the product and to
take it from prototype to production.

Costs that should be included in the development budget include:

Material
All raw materials used in the development of the product.

Direct Labor
All labor costs associated with the development of the product.

Overhead
All overhead expenses required to operate the business during the development phase such as
taxes, rent, phone, utilities, office supplies, etc.

G&A Costs
The salaries of executive and administrative personnel along with any other office support
functions.

Marketing & Sales

The salaries of marketing personnel required to develop pre-promotional materials and plan
the marketing campaign that should begin prior to delivery of the product.
Professional Services
Those costs associated with the consultation of outside experts such as accountants, lawyers,
and business consultants.

Miscellaneous Costs
Cost that are related to product development.

Capital equipment
To determine the capital requirements for the development budget, we first have to establish
what type of equipment we will need, whether we will acquire the equipment or use outside
contractors, and finally, if we decide to acquire the equipment, whether we will lease or
purchase it.
Assessing Risks
Finally, the risks involved in developing the product should be assessed and a plan developed
to address each one. The risks during the development stage will usually center on technical
development of the product, marketing, personnel requirements, and financial problems. By
identifying and addressing each of the perceived risks during the development period, we will
allay some of our major fears concerning the project, and those of investors as well.
VIII. Operations Plan.
It will include all the administrative and outdoor work. All the company needs to have the
good suppliers and major buyers and as mentioned we have marked our industry which have
large space and profit.
The organization has planned year by year and target have been set and each department is
assigned a specific task to do and report will be taken from each department from weekly
basis. Goals for product development should center on the technical as well as the marketing
aspects of the product so that there is a focused outline from which the development team can
work. For example product development of e-waste recycling is that yield the product from
the waste parts. In terms of market development, a goal might be, "Develop collateral
marketing material." Organizational goals would center on the acquisition of expertise in
order to attain your product and market-development goals. This expertise usually needs to be
present in areas of key assets that provide a competitive advantage. Without the necessary
expertise, the chances of bringing a product successfully to market diminish.
Our present management team will become the main sales force when operations begin. Sales
force will increase as business demand permits. In the first six to twelve months of
operations, our sales team will focus its efforts. The team will promote the products based on
their environmental strengths and extended duration. Recycling will use other channels of
selling after the first year. Face-to-face contact and direct mail selling are part of the selling
plan.

IX. Management Team.

The responsibilities involved in the company recycling are great and abundant. Recycling's
main purpose is to appeal to municipalities by offering a human waste disposal alternative,
and to environmentally conscious minded consumers by developing products that include
recycled human waste. Each executive member will have several responsibilities that are
imperative to fulfill the duties in producing such unique product.
As founder and president of Green Clean Recycling, Mr. Nouman will be responsible for the
entire operation. Some of his duties will include overseeing the areas held by the other
company executives, as well as the output produced by other employees. He will be in charge
of the company's public relations. He will also have the job of hiring dedicated people and
ensuring employees put their best efforts into the production of Green Clean Recycling
Recycling's products. He will have the lead role in making decisions that concern the well-
being of Green Clean Recycling.

Mr. Hasan has an important job as operations manager. His job will be crucial in the
growth of Green Clean Recycling. He will ensure that day-to-day operations are
conducted such that materials are received, methods and processes are standardized,
and production is maximized to ensure uniform production of compost materials. This
duty will entail establishing a good working relationship with production line
employees because without them Green Clean Recycling's products will not be
produced. Mr. Azan will be responsible for Green Clean Recycling's financial

Management operations including accounts payable, accounts receivables, and

bookkeeping.

a. Management Team Gaps:

To assist in sales and marketing, Green Clean Recycling plans to utilize the services
of Consulting, LLC, a management consultant firm .Blevins Consulting specializes in
business planning, marketing planning, training, website design and marketing, and
marketing to the federal government. Marketing and sales will play an important role
in convincing consumers to switch from their old products to Green Clean Recycling's
products. Blevins will help create the need for our products and services while at the
same time capturing the attention of the consumers' targeted. Some of Blevins duties
will include writing press releases, coordinating print and radio press, monitoring the
competition, making presentations to potential clients, and studying the markets to
identify customers' needs and determine how to best appeal to those needs.

Personnel

As we mentioned already, the company has to have the proper expertise in key areas
to succeed; however, not every company will start a business with the expertise
required in every key area. Therefore, the proper personnel have to be recruited,
integrated into the development process, and managed so that everyone forms a team
focused on the achievement of the development goals.

Before we begin recruiting, however, we should determine which areas within the
development process will require the addition of personnel. This can be done by
reviewing the goals of our development plan to establish key areas that need attention.
After we have an idea of the positions that need to be filled, we should produce a job
description and job specification.

Once we have hired the proper personnel, we need to integrate them into the
development process by assigning tasks from the work assignments we have
developed. Finally, the whole team needs to know what their role is within the
company and how each interrelates with every position within the development team.
In order to do this, we should develop an organizational chart for our development
team.

X. Financial Plan:

Our financial plan is based on receiving several loans to purchase/fabricate the production

equipment, provide initial operating capital, and establish the customer base.
We will achieve profitability early in the first year and due to the expected high growth rate,
we will realize strong profits on sales by year three.

a. Start-up Funding:
The start-up funding will be provided as follows: Owner equity investment of in the form of a
loan from the Regional Council of Governments Revolving Loan Fund; this loan is secured
by the owner's real estate assets. The Regional Revolving Loan Fund is an economic
development fund.
The balance of funding will be provided through an SBA guaranteed loan. Details of funding
are shown in the table below.

START-UP FUNDING

Start-up Expenses to Fund 200,000

Start-up Assets to Fund 100,000

TOTAL FUNDING REQUIRED 500,000

TOTAL PLANNED INVESTMENT 300,000

TOTAL FUNDING 200,000

b. Important Assumptions:
The table below presents some assumptions used in the financial calculations of this business
plan.

GENERAL ASSUMPTIONS

YEAR 1 YEAR 2 YEAR 3

Plan Month 1 2 3

Current Interest Rate 7.00% 7.00% 7.00%

Long-term Interest Rate 7.00% 7.00% 7.00%

 Tax Rate 25.00% 25.00% 25.00%

Other 0 0 0

Purchase scenarios
The prices that have to be paid to the suppliers of e-waste (i.e. informal collectors,
households, companies, authorities) are summarized. Numbers are based on a special survey
to gather base data and should reflect a competitive and realistic market price.
Since those prices depend on several factors, such as the international raw material market
prices, they are in constant change. Hence once a treatment facility has been set-up and is
running they need to be re-evaluated on a regular base.
Since the treatment of CRT monitors and TVs will be one of the main cost drivers of the
facility, special assumptions have to be made. On the contrary individual collectors and
consumers will expect remuneration; otherwise they would scavenge the CRT for the copper
coil, sell it separate and dump the rest.
Therefore the facility will have to pay a price, which is set as such as CRTs will be collected
and brought to the facility as an untouched device.
As outlined in the general objectives, in general purchase prices will be paid only for
delivered entire devices and not for components. This is to ensure that all hazardous
components will enter the recycling process and an environmental sustainable business can
be set up. Exemptions might have to be made concerning e-waste from junk and repair shop,
when it is clear that the collected components origin from repair processes, where broken
pieces had to be replaced.

Revenues & Costs

Conclusion

The supply of raw materials should always be part of a company's strategic planning.
Increased demand will lead to higher prices, and industry react accordingly to ensure supply.
Industry also needs to challenge designers to reduce and substitute materials for products.
Although the risk of medium- and long—term physical scarcity of the materials used in the
electronics industry is small, short—term bottlenecks may be encountered owing to the long
investment cycle in raw material production. Speculation 'nay pose the greatest risk to the
stability of supply, causing mines and recycling operations to close after the burst of a
speculation bubble. Separate from hedging transactions against fluctuating prices, companies
should have an active resource management strategy. This includes the creation Of a Wide
supplier base, development of exclusive purchase agreements, participation in raw material
processes, and/or the establishment of partnerships with alternative producing countries or
mining regions. Companies should also direct their efforts towards the research and
development of materials minimization and the use of alternative materials, as well as
product designs that are easy to recycle.

In summary, there is no single universal recipe for solving resource issue. A company's raw
materials strategy will contain many tactical elements. It is important that producers and their
manufacturing partners begin to this challenge without panicking. There exist enough (high—
tech) raw materials on the planet, and in contrast With Oil, they can be used multiple times.
The solution, therefore, is establishing appropriate return, collection and recycling processes
supported by all participants including producers, recyclers and international institutions.

Future Scenarios
How might the previous trends and challenges combine to influence the future of electronic scrap?
Clearly there are many possibilities and much uncertainty in what will emerge. In this section the
following four scenarios (which are not intended to be predictive) are developed to facilitate thinking
about the future:
 Business as usual;
 Criticality;
 Free trade with managed impacts and
 Device convergence.
As tide implies, in the business as scenario, trends continue without reorganization. Take-
back/recycling mandates continue to proliferate around the globe. With the primary goal of recovering
raw materials from electronics. The emphasis on materials recovery interacts synergistically with the
increasing diversity of electronics products to result in increased automation (i.e. more shredding and
mechanized separation processes). Some areas restrict the exports and imports of used electronics
with the goal of mitigating informal. There is considerable growth in domestic recycling activities in
the developed world but informal recycling remains common due to enforcement challenges and the
geographic proliferation of areas generating electronic scrap.

The device convergence scenario explores how a paradigm shift in hardware could restructure the
Scrap system. The starting Observation is that there is substantial duplication in computational and
storage capacity among devices in an ICT portfolio. With continued advances in wireless networking,
processing, and storage, functions could be centralized in a main hub device that communicates with
different input-output ' 'terminals," (i.e. screens, keyboards, etc.). The centralized hub/ server could be
designed for upgrade more easily than a panoply of smaller devices with miniaturized computing
power. Whether or not this particular technology paradigm will emerge is unknown, the point is that
thinking about the future of electronic scrap should also include the future of the hardware.