Sector: manufacturing, plastics
Keywords: materials, plastic materials, recycled plastic, polymer, etc
The ProjectThe project is to start a factory of plastic products for the building sector. The plant will be located in Acton Vale. The product’s value (excellent quality at a reasonable price) will make it stand out from the competition.
The ContextThe business plan has been completed and almost all of the parties involved— politically, economically, or financially— have approved it. The equipment, the production site, and the building have been identified. More than 25% of the expected revenues have already been acquired, and another significant portion is at hand. The challenge today is to locate an additional $200,000 (more or less) to complete the funding.
The PromotersThree promoters with complementary skills and experiences developed the project:
- The first is an engineer who has worked in the manufacturing industry for 17 years. He will be responsible for operations.
- The second has worked for 30 years in sales and business management. He has had his own company, which distributes plastic products, since 1996. He will be responsible for sales.
- The third is an engineer with proven expertise in the design and manufacture of plastics processing equipment. He has held several positions in the manufacturing industry over the past 12 years. He will be responsible for engineering.
Target MarketsThe versatility and flexibility of the products to be manufactured make them ideal for marketing to all kinds of construction projects— agricultural, residential, municipal, industrial, commercial, etc.
MarketingIn addition to the 25% turnover already achieved, the company also plans to hire two representatives, one for the construction materials market in Quebec, the other for the industrial sector. The sales manager already has solid distribution contacts elsewhere in Canada, and he will be responsible for concluding agreements with them. The development of a sales network in the Northeast U.S. will come next.
The Competition The competition comes mainly from manufacturers of traditional wooden materials. Some of them also offer products made from recycled plastic.
Competitive AdvantagesThe company stands out because it offers an affordable all-purpose product that requires no maintenance and does not delaminate. Also, it will manufacture its products from recycled plastics no one else wants. The manufacturing process and equipment make it possible to use raw materials of a lower grade, which the company will thus be able to purchase at very low prices.
Project Costs
| Project Costs |
|
Project Funding Sources |
| Machinery |
2,180,000 |
|
Capital Outlay |
375,000 |
| Leasehold Improvements |
100,000 |
|
Venture Capital Equity |
200,000 |
| Working Capital |
920,000 |
|
Venture Capital Debentures |
550,000 |
|
|
|
Development Agency Debentures |
375,000 |
|
|
|
Development Agency Loans |
100,000 |
|
|
|
Other Loans |
500,000 |
|
|
|
Financial Institutions |
1,100,000 |
| Total |
3,200,000 |
|
Total |
3,200,000 |
Summary of Financial Results
|
First Year |
Second Year |
| Revenues |
2,244,550 |
6,377,910 |
| Product Cost |
1,367,718 |
3,723,736 |
| Gross Profit |
876,832 |
2,654,174 |
| Operating Expenses |
955,184 |
1,343,494 |
| Earnings before interest, taxes, depreciation, and amortization (EBITDA) |
40,198 |
1,534,660 |
| Earnings Before Interest and Taxes (EBIT) |
40,198 |
1,236,628 |
| Net Profit |
(78,352) |
1,012,647 |
For more information about this business opportunity, contact Mathieu Vigneault by email or by phone at 1 450 546-3203.
|
