From
an idea at his home in Frisco, Texas to being a Nasdaq-listed company,
Brian Dick, CEO of Quest Resource Management Group (QRHC), achieved
entrepreneurial success by innovating a $55 billion U.S. industry and
capturing the interests of the world’s largest retailer
With a background in environmental engineering and
experience managing an environmental services company, Dick identified a
gap in the recycling and waste disposal system. Companies expressed a
desire to be more sustainable, and therefore, could benefit from
customer service to monitor waste and roadmap changes to be made.
Quest Recycling Services, a branch of what is now under the
publicly traded QRHC, operates as a “one-stop shop” for clients looking
to better manage and reduce their entire waste stream. Since everyone
produces waste, the company recruits a broad clientele base from grocery
stores to multi family apartments. Previously working as an
environmental health and safety executive, Dick launched the project in
2007 out of his home in Frisco. With a small team, he sought to and
succeeded in selling the world’s largest retailer, Walmart, on the
concept.
“We really hit the market at the right time. The CEO of
Walmart expressed aggressive sustainability goals, and we said we can
get you there,” Dick said.
And they delivered, first by finding a better way to
recycle scrap tires in Mississippi. After the one-item, one-state test,
Quest rolled out the scrap tire program across the country for Walmart
and has since expanded its clientele and product sectors. Quest now
manages over 15,000 client locations and 1.76 billion pounds of
materials and plans further expansion in the coming years with an
eco-friendly e-commerce venture and by recruiting more clients.
Adding to the pile
Instead of looking for localized problems with small solutions, Dick
uncovered a niche problem that identified with large-scale producers.
“I knew I wanted it to be a big company, so why not look bigger?” Dick said.
Since its inception, Quest has added new locations and
products to manage, starting with scrap tires and expanding to motor oil
and cooking oil. In 2009, the company added a focus in composting.
Quest employees studied how best to collect food waste, including an
optimal kind of collection bin and style of collection vehicle. They
determined new outlets for the composted material, such as animal feed.
Quest Recycling grew dramatically until 2012, driven
primarily by its continuous expansion with Walmart. In July 2013, the
company merged completely with Infinity Resource Group, composed largely
of Earth 911— a consumer-based website centered on educating visitors
on low waste living and proper disposal methods. While Infinity had not
made profits, Quest welcomed continued growth and profits, recording a
$4 million income in 2011 and $4.4 million in 2012.
The profits for the corporation as a whole will now take
longer to surface. L.A. Davis & Associates, an equity research firm
out of Tacoma, Washington, forecasts net losses until 2016 when the
analysts expect a profit of $3.7 million for QRHC, excluding
acquisitions.
Room for growth
The U.S. waste management industry is reported to be $55
billion, according to the Waste Business Journal. At $150 million
expected revenue that represents less than 0.3 percent of the market,
leaving Quest positioned for growth. Dick said that he seeks the company
to be $500 million in revenue within the next several years by adding
more customers, expanding its sales team, and providing more services.
L.A. Davis & Associates predicts over $220 million in
revenue for Quest in 2016. L. Alan Davis of the firm said that the $500
million target is not out of reach through double-digit organic growth
along with “highly profitable acquisitions” as Quest Recycling has done
through multi-million dollar mergers and acquisitions.
“It will take a few years, but I think the prospects for
reaching this revenue levels are good,” Davis said. “Quest operates in a
huge addressable market with a strong first-to-market position.”
As part of its acquired division, Earth911, the company
plans to test an additional enterprising venture. Within the next year,
Earth911 will launch a ‘Green Marketplace’ that offers solely
environmentally-cautious products, such as furniture made from recycled
materials and household cleaners composed of biodegradable products.
Dick said that he hopes the site will attract the current
7.9 million visitors of Earth911.com to purchase the environmentally
sustainable products.
“Currently we have our media and social media and ways to
engage, but we also think the value of the wallet is the most important
piece toward sustainability,” Dick said.
While Dick cited that project as one of the company’s main
focuses of the next year, it is not expected to be its largest revenue
maker, Davis said. The Quest model requires little capital investment
and infrastructure, so that major revenues can be drawn from
business acquisitions and new clients.
A home in Texas
Dick started the company with a few colleagues out of his
home in Frisco and chose to stay in that city due to what he cites as
key incentives. The location places him and his over 80 employees in the
middle of the country so that traveling to either side can be
accessible. Texas also does not have a state income tax.
“I don’t see us ever leaving,” Dick said.
The city of Frisco and its Chamber of Commerce has embraced
and awarded Quest, naming Brian Dick as Entrepreneur of the Year in
2014 and awarding the company Business of the Year in 2012.
In years prior, Dick expressed an interest in a
headquarters for Quest that could serve as a LEED building model. For
now, the company has expanded to two floors of their original office
building, leaving more room for growth.