Organic Waste Systems

Organic Waste Systems is a business model that collects organic waste and turns it into products people already buy. The waste must be processed locally, and there are very few sites allowed to do it, which limits competition.

The model works in three simple steps.

First, customers pay a fee to dispose of organic waste such as yard debris, trees, and food waste. This creates steady income and supplies the raw material.

Second, that material is processed into mulch, compost, and soil products and sold to landscapers, farms, and developers. These products have strong demand and high margins.

Third, during storms or large cleanup projects, the same facilities can process large volumes under contract, adding periodic upside.

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The key drivers of value are permit control, available capacity, and product mix. Most facilities operate below their allowed volume, so growth comes from filling existing capacity rather than building new sites. Margins improve by shifting sales toward higher-value soil blends and repeat customers.

This model is well suited for a search fund because it is straightforward to operate, difficult to replicate, and repeatable across markets. Once established, each facility functions as required local infrastructure with predictable demand and clear paths to scale.

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This model matters because unmanaged organic waste contributes to emissions and must be processed locally to reduce environmental harm.