Need a business plan for anaerobic digestion? Used by waste treatment plants as a way to release energy, anaerobic digestion requires an advanced biological treatment plant. Whether the objective is generating renewable power or managing waste produced by humans and animals, the capital needs for such a plant are intensive and the management and operations of the facility require experience and training. A business plan for an anaerobic digestion facility needs to accomplish several interrelated goals – (1) showing what the market is for this service, (2) itemizing the one-time and ongoing costs, and (3) proving that the plant can function profitably given the funding it seeks at inception. Your plan should answer these questions:
• Will you target mainly effluent for sewage treatment? If not, what is the feeder source?
• Have you picked out a parcel of land and if so, what is there currently?
• If you will take over or retrofit an existing building, provide specs and costs.
• Can you list the key positions you will need to fill?
• Who are your management team members and what gaps do you have?
• When will the anaerobic digestion facility make a profit?
The profitability question is typically answered by looking at the break-even analysis in a complete pro forma model. The full pro forma should include a start-up summary and use of funds; a revenue forecast; the personnel plan; the cash flow statement; a profit and loss overview; the balance sheet; and a sensitivity analysis showing what affect variations in your sales percentages will have. The pro forma should also include a year one breakdown into months (typically in the appendix), a proposition for your investors, and a list of the assumptions you've used in the projections. Need assistance here? MasterPlans has been in business since 2002 and has written for a wide range of alternative energy companies. Call us today to learn more: (877) 453-2011.
