Hair Recycling Technologies

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Garden Products Recycling Business Plan

Development Status

Acquisition of Supplies:

Hair Recycling Technologies will start its pilot program by establishing business partner relationships with owners of hair establishments in the Midwest. These relationships will involve placing hair collection bins in the salons to be picked up on a two-week basis. HRT will use a leased van to receive the supply of hair. Potting soil, along with peat moss, will be acquired to make the prototype. After two weeks, HRT will retrieve the hair collection bins; subsequently, the company will begin the next phase of processing.

Prototype of Product:

Hair Recycling Technologies will process the human hair by using a conventional microwave oven which will sanitize the human hair and then using a rotary cutter which will chop the hair into smaller strands. HRT will then process the components of human hair, potting soil, and peat moss. Substantial portions of each component will be combined and packaged. Thus, SMART SOIL, the company's premier product, will be completed with a cost of less than 50 cents a bag.

Geographical Location:

Presently, the company facility is a 18' x 30' room located in the basement of one of the founders in the South Bend area. The maximum capacity of this facility is 250,000 units of the SMART SOIL product. Here are the capacity projects for the next three years:

  • 2001: ~125,000 units/yr.
  • 2002: [Two people processing] ~250,000 units/yr.
  • 2003: [Three people processing] ~375,000 units/yr.

Facilities and Improvements:

As the projections indicate, the company essentially plans to stay in its current South Bend location through the first quarter of 2003. HRT projects to be fully established in a new South Bend facility by the beginning of the second quarter of 2003.

In this facility, the company will implement new processing equipment and procedures. Whereas HRT has sanitized the hair inside of a large commercial microwave oven, the company will lease the following equipment to improve production:

  1. The Gemco V-shape Tumble Blending Microwave Dryer
    • To sanitize and toss the hair to prevent matting.
  2. The Munson M-1 Mini Rotary Cutter to chop the hair
    • Cuts hair into finer strands for better packaging and consumer appeal.


Supplies for Products:

Item Price\Pound
Potting Soil$ 0.03
Peat Moss $0.07
Cottonseed Meal$0.01
Bags (each)$0.03
Labels (each)$0.03

General Administrative Expenses:

  • PBX system with voice mail service:
    • Three phone lines ($60/mo.) $180
    • One 800 line ($20/mo.) $20
  • Used office furniture & equipment: $3,600
  • Rent: $600.00/mo.

Advertising: Continued advertising costs will be approximately 15% of gross sales. Additional in-depth cost structure will be covered in the Financial Analysis.