Business Proposal

Organic Shredder Machine

Manufacturing Company

This proposal is prepared for:

Sir Mat A. Lopez

This proposal is prepared by:

Princess C. Noble
Republic of the Philippines
CAMARINES SUR POLYTECHNIC COLLEGES
Nabua,Camarines Sur

BUSINESS PLAN OUTLINE

Business Plan
I. Introduction

II. Description of the Business

III. Products and Services

IV. Cost and Labor

V. Capital and Investment

VI. Sales and Marketing Strategy

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Republic of the Philippines
CAMARINES SUR POLYTECHNIC COLLEGES
Nabua,Camarines Sur

I. Introduction
Organic waste, or green waste, is organic material such as food, garden,
agriculture and lawn clippings. It can also include animal and plant based
material and degradable carbon such as paper, cardboard and timber. Burying
organic waste in landfill is a big problem. Hence first we have to know the
necessity/reasons for solid waste management. In all the cities and places,
organic waste is dumped or disposed in landfill or discarded, which causes the
public health hazards and diseases like malaria, cholera, typhoid. Inadequate
management of wastes like uncontrolled dumping bears several adverse
consequences. It is not only polluting ground water and surface through leachate
but also promotes the breeding of flies, mosquitoes, rats and other disease
bearing vectors. Also, it produces unpleasant odor and methane which is a major
greenhouse gas contributing to global warming. 

Agriculture is the major occupation in many parts of the world and producing
a range of waste waters requiring a variety of treatment technologies and
management practices.  A variety of crops are cultivated in Philippines. But after
harvesting them the crops wastages are either burnt out or thrown as waste
without taking into consideration of their nutritive value. With the increase in the
population our aim is not only to stabilize agriculture production but also to
increase it further in sustainable manner. Excessive use of agro-chemicals like
pesticides and fertilizers over years may affect the soil health and lead to
declining of crop yields and quality of the products.  Agriculture waste, which
includes both natural and non-natural wastes. The conventional agro-waste
disposal is a traditional and oldest method of waste disposal in which agriculture
wastes are dumped as it is to degrade in a particular place for decomposing. As
the waste are dumped, it takes more time to degrade and it causes
environmental pollution. Hence the shredder machine is used for shredding i.e.,
converting of macro agriculture waste and food waste into small easily
decomposable form, which can used as organic manure. The small size waste

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Republic of the Philippines
CAMARINES SUR POLYTECHNIC COLLEGES
Nabua,Camarines Sur

will decompose faster than the large or macro size waste. This decomposed
waste can be used for the crops and this leads to improving in the growth and
quality of the crops.

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Republic of the Philippines
CAMARINES SUR POLYTECHNIC COLLEGES
Nabua,Camarines Sur

II. Description of the Business

 Shredding machine is used for shredding waste like agriculture waste, kitchen
debris, cooked foods etc. are fed into the machine vertically through hopper
on to the cutters. Cutters are mounted on shaft supported by bearings which
is mounted on the machine frame. This shredder can be operated with a
motor. One shaft driven by motor and another shaft driven by spur gear both
shaft rotated in opposite direction. The motor is rotated at certain speed 1440
rpm and with it coupled with gear box to reduce the speed and to increase the
torque.
 When the crop or waste come in contact with the rotating cutters or blades
then the shearing action takes place. Due this shearing action, the large size
waste converted into small micro size. This small size wastage will
decompose faster than the macro size. The clearance between the rotating
blades depends upon the size of the organic waste used for chopping. The
chopped organic waste comes out of the machine and undergoes
decomposition.

Organic Shredder Machine

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 Republic of the Philippines
CAMARINES SUR POLYTECHNIC COLLEGES
Nabua,Camarines Sur

III. Product and Services

 Product
Eco-Blocks Machine Manufacturing Company is a proposed new company
which converts of macro agriculture waste and food waste into small easily
decomposable form, and can used as organic manure and focusing on providing
a good quality machine and services for shredding organic wastes.

Organic Shredder Machine Manufacturing Company plans to provide a

solution to these issues 1) dumping or burying organic waste in landfill which
causes the public health hazards and environmental pollution and 2) excessive
waste as well as use of agro-chemicals like pesticides and fertilizer.

 Services
Organic Shredder Machine Manufacturing Company will offer a

manufacturing equipment that can provide a good quality machine that can give

cheapest price for the customers. Organic Shredder Machine Manufacturing

Company will also provide a fast transaction for those who want to avail our very

own eco-friendly. Also, a will provide a good service for those who us transaction

throughout the vicinity.

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 Republic of the Philippines
CAMARINES SUR POLYTECHNIC COLLEGES
Nabua,Camarines Sur

IV. Labor and Cost

 Financial Highlights
The company is seeking Php 5,000,000.00 for:
Detailed Breakdown of Construction Company Expenses
- Building Construction --- 2,000,000
(labor & construction materials)
- Raw Materials --- 35,000 - 50,000 (size varies)
(Per Machine)
- Labor --- 500 per day, 15, 000 monthly
- Permits and Licenses --- 15, 000
- Miscellaneous costs --- 35, 000 (monthly)
- Business Insurance --- 25, 000 (yearly)
 Facility Design
 Organic Shredder Machine Manufacturing Company will develop a 300
square meter office space whose key elements will include the following:
Fabrication area, raw materials store, receiving room, storage room,
packing room, office room, and rest room.
 Organic Shredder Machine Manufacturing Company plans to have the
office open 6 days a week, from 8 AM to 5 PM. Service hours will be
available 9hrs per day, 6 days a week.

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Republic of the Philippines
CAMARINES SUR POLYTECHNIC COLLEGES
Nabua,Camarines Sur

Organic Shredder Machine Factory

V. Capital and Investment

Revenue and Cost Drivers

 Organic Shredder Machine Manufacturing Company’s revenues will come

from major projects primarily and secondarily from sales and design
services.

 The major costs for the company will be material costs and salaries of the
staff. In the initial years, the company’s marketing spend will be high, as it
establishes itself in the market.

Functional Roles

 The Organic Shredder Machine Manufacturing Company is an

organization with multiple members therefore the funding of the business
will be catered by the executive members. A fund of 5,000,000 pesos is
allocated in the starting up of business. In this year of 2021-2022, the
organization is determined to start the building of our business. In the time
being, the organization will be offering jobs, and will be looking for
excellent workers suitable for the jobs offered. In the midyear of 2022, the
company is expected to start the business operation.
 In order to execute on Organic Shredder Machine Manufacturing
Company’s business model, the Company needs to perform many
functions including Administrative, Engineering and other Functions.

Capital Requirements and Use of Funds

 Organic Shredder Machine Manufacturing Company is seeking a total

funding of 5 million to launch its Engineering business. The owners will

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Republic of the Philippines
CAMARINES SUR POLYTECHNIC COLLEGES
Nabua,Camarines Sur

contribute 1 million each. The capital will be used for funding capital
expenditures, manpower costs, marketing expenses and working capital.

 Specifically, these funds will be used as follows:

• Location design/build: The total area of the building is 300m 2 with an

allocated fund of Php 2,000,000.00 for the building construction.

• Working capital: Php 3,000,000.00 is the approximate amount of capital

needed to pay for marketing, salaries, and lease costs until Eco-Blocks
Machine Manufacturing Company reaches break-even

Key Assumptions & Forecasts

 Below please find the key assumptions that went into the financial forecast
and a summary of the financial projections over the next five years.

EXPENSES AMOUNT DATE

Location design/build Php 2,000,000.00 August 2021
Working capital Php 3,000,000.00 August 2022
TOTAL Php 5,000,000.00

INCOME AMOUNT DATE

Service and products Php 4,500,000.00 August 2022

Service and products Php 5,500,000.00 August 2023

Service and products Php 6,500,00.00 August 2024

Service and products Php 7,000,000.00 August 2025

Service and products Php 7,500,000.00 August 2026

TOTAL ₱ 36,000,000.00

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 Republic of the Philippines
CAMARINES SUR POLYTECHNIC COLLEGES
Nabua,Camarines Sur

VI. Sales and Marketing Strategy

 Success Factors

Organic Shredder Machine Manufacturing Company is uniquely qualified to

succeed due to the following reasons:

- Organic Shredder Machine Manufacturing Company offers affordable and

high-quality machine
- Organic Shredder Machine Manufacturing Company will be not just our
success but also the environment that surrounds our company.
 Promotional Strategy

Organic Shredder Machine Manufacturing Company is committed to an

extensive promotional campaign. This will be done aggressively and on a broad
scale.

To accomplish initial sales goals, the company will require an effective

promotional campaign to accomplish two primary objectives:
1. Attract customers who will constantly look to Organic Shredder
Machine Manufacturing Company for their business purposes.
2. Attract quality sales personnel who have a desire to be successful.

In addition to standard advertisement practices, Organic Shredder Machine

Manufacturing will gain considerable recognition through these additional
promotional mediums:

1. Press releases sent to major radio stations, newspapers, and

magazines.
2. Radio advertising on secondary stations.

Pricing Strategy

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Republic of the Philippines
CAMARINES SUR POLYTECHNIC COLLEGES
Nabua,Camarines Sur

The price will vary depending on the examined cost to produce the product or
service and adding a fair price for the benefits that the customer will enjoy. We
will increase the revenue to our customer when the product’s demand starts to
increase.

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