The Economics

Eighty eight percent of the funds are for the physical facility... land, building, and components of the building.  We've broken it down some in the pie chart.  There is an additional approximately $1.5 million for equipment which we figure can be lease / purchased, and 20% down payments and the 25% buy out at the end of the 3 year leases is within the 'working capital' shown above, and cash flow plan.

The business plan calls for 15% of the net profits to go for profit sharing for the operating team.  The base salaries are a little bit low.   We're looking for people who are committed to excellence and making the business profitable in the process.  Past experience has demonstrated that profit sharing stimulates team members to work smart, and to be innovative, and efficient.

The Primary Projections are based on 42 days of turn around (composting process) time.  At that rate we expect to be able to handle at least 600 tons per day of incoming material, with projected front end income of $6.5 million a year.  We may be able to handle much more than that, but for now, we'd rather be conservative in our projections.  The growth in sales is based on our improving turn around time and capacity, through our R&D. 

Contact John Crockett at (845) 225-7763, jac@magicsoil.com, for more information.

This page was last updated on: Tuesday, March 15, 2011 at 10:06 PM