In many markets, it’s all about the business model a company decides to follow. Choose the correct type, and a steady and predictable outcome can be expected. Choose another type, and a more dynamic and potentially very rewarding outcome can occur. Imagination is the key to success with the latter while the mundane is the limiting reward of the former.
Budget Waste Inc., a waste solutions company based in Western Canada, has been experiencing tremendous growth since its founding as a local waste services company. While many companies of this type have chosen to adopt the static model, Budget Waste has chosen instead to pursue a more aggressive growth model directed toward traditional market penetration with affiliated market acquisition and vertical integration.
This particular growth model has proven to be financially rewarding for the company, which is now seeing its services and products expanding within traditional markets. Currently, opening new territories in Canada, the U.S. and even beyond are very likely through acquisition and new product/service offerings. What is particularly interesting about the company’s model is the way it uses current service offerings to drive a wedge into new, vertical markets. For example, from its base in the waste services sector, it projects additional uses (and consequent additional revenue) in other sectors.
Most people think waste removal is limited to a certain set of services. Budget Waste doesn’t. The company enters the construction market through its waste contracts, then goes on to provide additional services like security fencing. It has found unique transportation opportunities through construction companies using unconventional and relatively new techniques designed to build underground infrastructure. Generally, the company gets its foot into a market with its waste business and spreads from there in whichever direction it feels fits the company’s model.
Revenue reporting appears to support the company’s adoption of its current model. At the end of the company’s third quarter (December 31, 2007), an increase of $4.8 million in income (or 67% over the same period a year earlier) was seen. Year-end results match that rapid growth, with the company posting a projected 55% gain in revenues. With its waste infrastructure in place, the company has many different markets to choose from for further expansion. At this point, it just needs to maintain its exceptional service reputation and pick a new market to tap or buy into.
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