Document Shredding Service Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Document Shredding Service Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Document Shredding Service business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
Your Business Planning Package will be immediately emailed to you after you make your purchase.
Product Specifications (please see images below):
- Bank/Investor Ready
- Complete Industry Research for the Industry
- 3 Year Excel Financial Model
- Business Plan (26 to 30 pages)
- Marketing Plan (24 to 28 pages)
- 425+ Page Funding Directory
- PowerPoint Presentation
- Loan Amortization and ROI Tools
- Three SWOT Analysis Templates
- How to Start a Business Guide
- Easy to Use Instructions
- All Documents Delivered in Word, Excel, and PowerPoint Format
- Meets SBA Requirements
Businesses are handling more and more sensitive materials these days from their clients. Major businesses such as law firms, accounting firms, and medically related businesses often have huge number of documents that contain sensitive information not only about the business but also their patients and clients. Although more and more materials are moving into an electronic format, there still a substantial amount of sensitive material that is printed on paper. From time to time, these businesses frequently need to destroy these documents given the fact that they become outdated yet still retain a substantial amount of highly sensitive information. As such, document shredding services are able to take huge bulk amounts of sensitive materials in lockboxes and securely destroy them in a secure facility.
The demand for these types of services is continued or remain strong despite the fact that most things are now distributed electronically. These businesses will always find a market for their services given the fact that by law certain documents need to be printed on paper and directly signed by an individual or group of individuals. A document shredding service typically has a startup cost of around $100,000 to $150,000 depending on how the acquisition of these materials is going to be done. The furniture, fixtures, and equipment associated with a document shredding service typically runs around $50,000 but the biggest expense comes from working capital as well as the acquisition of vehicles. As a value-added benefit, many document shredding services will directly pick up and transport sensitive materials on behalf of their clients. The gross margins are extremely high and are usually are in round the 95% range.
Given the very strong demand and very large tangible asset base, almost all lenders are willing to provide the necessary capital in order to launch these types of operations. An entrepreneur that is looking to develop this type of company can be expected to put up about 20% of the total startup cost in order to get the business off the ground. A document shredding service business plan is going to be required. This document should feature a three year profit and loss statement, cash analysis, breakeven analysis, balance sheet, and business ratios page.
A document shredding service SWOT analysis is frequently developed as well. As it relates to strengths, the industries that are targeted by most document shredding services are immune from negative changes in the economy. Most frequently, clients consist of law firms, medical practices, accounting firms, and specialized technology companies that have very sensitive information on paper. These firms require the services regardless of whether or not the economy is in recession. The barriers to entry are considered moderately low, and the gross margins are very high.
For weaknesses, these businesses do have very high operating expenses as they must not only maintain a standalone facility that can securely destroy documents but they also have a number of employees on staff to pick up and drop off sensitive documents on an ongoing basis. The insurance cost for these companies is also somewhat high.
For opportunities, the quickest way for a document shredding service to expand their operations is simply to establish additional locations outside of the initial target market. These businesses can scale very quickly once they reach profitability. One of the nonorganic ways of expanding operations is to acquire similar companies that are already in operation.
There are no threats that would impact the way that these companies conduct operations outside of a security breach that would occur in house.
A document shredding service marketing plan should also be developed in order to ensure that the company can quickly obtain customers from the onset of operations. Foremost, many of these businesses will regally distribute mailers to accountants, hospitals, medical centers, and related entities that handle a tremendous amount of sensitive information. These businesses will frequently work with third-party entities that outsource the service to the document shredding company. A presence online is also very important as many people will frequently use search engine results to find a service provider of this nature.
The company’s website should feature functionality that allows an individual to request a pickup for sensitive document shredding. From time to time, individuals that maintain expansive small businesses that have sensitive information will require the services from time to time as well. However, the biggest source of revenue is typically from ongoing clients such as the affirmation entities discussed above. A presence on social media can help create a stronger degree of visibility for the company especially on LinkedIn, although this is not really an imperative aspect of marketing operations for a document shredding service.
Document shredding services are relatively straightforward businesses to operate and they can be highly profitable for an entrepreneur that knows how to cultivate relationships with professional firms that handle sensitive documents and information. These businesses are always going to be in demand by virtue of law given the fact that certain documents must be printed on actual paper and not sent electronically. Additionally, although more and more communications are moving online demand to have certain sensitive information in print only continues to remain strong. These businesses are relatively immune from negative changes in the economy, and they can be a lucrative small to medium-size business for an entrepreneur that has extensive experience in logistics.