Venture Plan

Table of Contents

Page

Executive Summary.............................................................................2

Business Strategy................................................................................5

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

Products and Services..........................................................................7

Business Operations.............................................................................8

Management and Ownership................................................................9

Organizational Design...........................................................................10

Financial Projections.............................................................................11

Detailed Financial Assumptions............................................................12

Conclusion............................................................................................13

Bibliography..........................................................................................14

I. Executive Summary

Recycling tires is another major environmental problems, and make them disappear, once used, is a major problem. The mass production of tires and the difficulties to make them disappear, once used, is one of the most serious environmental problems in recent years throughout the world. A tire needs large amounts of energy to be produced (half a barrel of crude oil to manufacture a truck tire) and leads (if not properly conducted recycling tire) air pollution by taking part, usually of uncontrolled landfills.

Opportunities Our Company P.R. Recycling will be unique on the island has an extensive range of opportunities. It has potential for rapid growth. We will have excellent customer service. We as a company will also have machines with the highest quality and last technology.

Strengths One of the great strengths our company will have is the advantage that we will be pay by collecting the rubber, the material recycle and sell to other companies who need it. This means a double entry, and collected by selling the material. Strength is the great commitment to the environment is our business. This company will have little or no competition.

Weaknesses Much of our company's weaknesses lie in the lack of experience. Since it is an entirely new industry for us as owners and relatively new to the government. Another weakness is the limited capital and the high cost of maintenance of our machinery required to operate.

Threats Being a market that no company has established the company one of the possible threats is the overload of material to be recycled. That is not intended to cover first the entire market for discarded tires. Another threat is the possibility of companies with more years of experience interested in settling in the island once they see the high demand that will work with our recycling plant. Mission

Get methods for a consistent tire recycling collection and to encourage the establishment of industries engaged in the task of recovering or remove cleanly, the hazardous components of the tires of vehicles and machinery. As also solve one of the most serious social problems that our island has. Because "With a clean country, we have a brighter future."

Vision Eliminate tire mountains that form reefs where the proliferation of rodents, insects and other pests bigger the problem. And our commitment is to to rid our communities and the rubbers landfills by recycling used.

Competition

At this moment, there are minimal risks of the second rate because although there is no direct competition, there are three companies in Puerto Rico that offer tire recycling solution.

II. Business Description

P.R. Tires Recycling

This is a tire recycling system, which is subject to the waste materials to heating in an environment in which there is no oxygen. High temperatures and lack of oxygen has the effect of destroying the chemical bonds. Hydrocarbon chains appear then. It's how you get, again, the original composition of the tire, making it the method that achieves full recovery of the components of the tire. Metals are obtained, coal and gaseous hydrocarbons, which can return to the industrial chains, either tire production or to other activities. It is a process for recycling tires purely mechanical and thus the resulting products are of high quality clean all kinds of impurities, which facilitate the use of these materials into new processes and applications. Triturating with mechanical systems is almost always the first step in the different methods of recovery and profitability of waste tires.

III. Market Analysis

|Data Analysis |
|Statement |
| |Year |
| |2011 |2012 |2013 |
|Inicial Balance | |$170,000 |$175,000 |
|Partner Contribution | | | |
|Partner, A |$75,000 |0 |0 |
|Partner, B |$75,000 |0 |0 |
|Loan |$250.000 |0 |0 |
|Total Capital |$400,000 |$170,000 |$175,000 |
|Equipment |($150,000) |($5,000) |($6,000) |
|Trucks |($30,000) |($5,000) |($10,000) |
|Remodeling |($30,000) |0 |0 |
|Permits and Licenses |($20,000) |0 |($1,000) |
|Operating Expenses |($100,000) |($110,000) |($115,000) |
| Total Expediture |($330,000) |($120,000) |($132,000) |
|After Capital Expenditures |$70,000 |$50,000 |$43,000 |
|Years Income |$100,000 |$125,000 |$162,500 |
|Balance End of the year |$170,000 |$175,000 |$205,500 |

IV. Products and Services

Currently there are several forms of recycling that we could use to provide service tire recycling. We offer free pick up of tires at home. Recycle tires and then you get sales of these materials.

Our sales force will reside in the sale of services of collection and sale of raw materials, once you get through recycling. It will also be aimed at establishing relationships between companies that use our recycled materials to manufacture its products and our company. We provide home-based collected from tire. Recycle tires and then you get sales of these materials. Our target segment is divided geographically. We structure our services and sales forecasts by geographic areas. Divide such as collection routes through villages and fields. If needed, it will happen twice in the areas where so required. We position ourselves in the market as a green company dedicated to the collection and recycling of tires. As well we are positioned as suppliers of raw materials like rubber and metal companies that use these materials for the production of their products.

V. Business Operations

Distribution: We have selected as the perfect point for our recycling plant in the town of Guaynabo, PR. The exact location is at the Heights Sector Shrimp. We chose this location because it is an area in the metro area very easy to get but at the same time private, it is not a place where many people pass as they would on a main road. We also chose this lot because the building will have a very low environmental impact since it is not fertile ground for harvesting or a place where there is high biological activity.

Marketing: Information to use advertising that is most appropriate when introducing a new category of product or service like ours. Inform you about our services. Companies suggest the use of our recycled materials. Describe the two methods of recycling that we use in our recycling plant. Correct the false impressions. Reduce fears of consumers and create a positive image of our company.

Promotion: The way of attacking to market with promotion will be by means o a systematic system , aggressive promotion and constants, running the commercial radial, distribution of flyers in the business related with tires, to place posters in strategic places, construction of a page in internet, distribution of catalogues to our clients and to realize surveys.

VI. Management and Ownership

Our management combines the experiences with extensive backgrounds in managing and developing businesses with dealers, tires companies, auto parts, and every company that are related with tires.

The recycling plant will have a supervisor, two drivers and two employees of the floor. We as owners will be full participation in work activities at the recycling plant. One will be the supervisor and one driver will be collected. In this way we present and owners in all activities.

Our recycling plant will conduct a monthly review of the amount collected and recycled rubber and also review sales of recycled materials. There will also be quarterly trainings for employees of the plant where it will train and provide information on new methods of recycling and take the company to create and maintain a recycling method for efficient and clean environment.

VII. Organizational Design

|Organizational Design |
|Operating Costs |
| |Year |
| |2011 |2012 |2013 |
|Payroll |$40,000 |$41,250 |$41,875 |
|Materials |$10,750 |$12,000 |$12,625 |
|Insurance |$4,750 |$6,000 |$6,625 |
|Gasoline |$8,500 |$9,750 |$10,375 |
|Loan Payments |$15,000 |$16,250 |$16,875 |
|Advertising |$5,000 |$6,250 |$6,875 |
|Rent |$10,000 |$11,250 |$11,875 |
|Light/Water |6,000 |7,250 |7,875 |
|Total Operating Expenses |$100,000 |$110,000 |$115,000 |

VIII. Financial Projections

|Financial Projections |
|Sales Proyections |
| |Year |
| |2011 |2012 |2013 |
|Sales and Service | | | |
|Tires Collected |$40,000 |$50,000 |$60,000 |
|Rubber Termolysis |$25,000 |$35,000 |$47,500 |
|Crushed Rubber |$35,000 |$40,000 |$55,000 |
|Total Income |$100,000 |$125,000 |$162,500 |
| | |25% |30% |

IX. Detailed Financial Assumptions

A complete set o financials is found in this Business Plan but key metrics include:

Years 2012-2013

Annual Unique Visitors: 2,000-11,000

Active Customer Accounts: 30,000- 40,000

Transactions per Year: 3,000- 6,000

Retail Clients: 3,500- 6,500

Average Revenue/ Account: $2.00- $3.25

Revenues: $60,000- $145,000

Expenses: $100,000- $115,000

Operating Profit/loss: ($60,000- $145,000)/ $0

Conclusion

In conclusion, this Venture Plan will make reality my major goal of developing a new company that could contribute to the success of the economy. We will emphasize in supporting the local economy of our island, just giving a good service of the tire recycling but most of all helping the environment for a better world. Our company will devote ourselves in emphasizing a service of excellence in attention of the client, offering a big support to our employees in order that both could develop loyalty to our business P.R. Tire Recycling”, more than a service, because we are the best of the best in the tire recycling.

Bibliography

Kotler, Philip y Armstrong, Gary. (2003) Fundamentos de Marketing (sexta edición) México. Pearson Education http://www.reciclamos.org/reciclamos/?p=257 http://www.quiminet.com.mx/pr3/Reciclaje%2Bde%2Bneum%E1ticos.htm http://www.primerahora.com/diario/noticia/informe_especial/noticias/a_manufacturar_con_lo_reciclado/372483 http://www.noticiasonline.com/video/Det.asp?id=12079