SUSTAINABLE WEALTH IN NIGERIA THROUGH SOAP PRODUCTION
As Promised In The Last Edition, Here We Present A Manufacturing Business You Can Start With Small Capital That Does Not Require Electricity.
Sustainable wealth creation hinges on a platform or facility that enhances continuous flow of not just fund but profits.
As a business start up
advisor, a cottage industry owner I shall here x -ray the sustainable profitability
of soap making business.
Soap production is a
very good window for wealth creation and employment generation. The prospect of
setting up a viable business depends much on its techno-economic survey. As one
currently in the business of soap making, a continuous research in the
techno-economic viability of soap business have proved that the demand for
household cleanliness and personal hygiene is very high and the supply is still
in short fall. Thus the advice to anyone to invest in soap production is
because of high rate of recovery of the invested fund, low start up capital and
low or no eley cost.
The market demand for
tablet/laundry soap is very high, being demanded all year round , thus the
business of laundry soap production will never loose its market nor get
saturated as long as human beings exist and expect to live clean and healthy.
Marketing is a critical
factor for success in any business. The major key areas to be by a soap
producer for successful marketing are through understanding of process of
prompt delivery, target market and competition, prizing and quality, customer
approach
The business strategies
to boast sales which entails the success of any business depends on the ability
to sell the end product to the ultimate customer. To achieve high sales volume,
the following strategy will make the product a market leader: push market
system, good manufacturing practice, motivation of staff and sales force, good
public relations.
Having come this far,
let me bring in soap production program. The installed capacity of the plant,
size of tablets and production cycle per annum, allowing for holidays must be
taken into account.
The requirements for
operations includes production room or shop floor, water and power supply, raw
materials (chemicals, oils, fragrance, colors), packaging materials ( packets,
wrappers, cartons).
A production
projections of 4000 tablets of 0.15kg weight on a 300 day year is estimated at
1,200,000 tablets per annum. Start up batch materials for this out put is
estimated at N207916.8, giving a unit tablet cost of N51.979. Annual turnover
equals N60,575,040.
Selling at N60 per
tablet gives a production batch sells of
N240,000 with a gross balance of N32,083.2
Thus working on a 300
day year, annual gross profit is N 32,083.2 x 300= N9,624,960.
The profit estimate
records a steady rise in subsequent years is a sign of a good return on investment.
For Technology of
production, equipment recommendation and a more detailed business plan, contact
us on greenviewsuites@gmail.com, call/WhatsApp 09057650161
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