Soap Production Business Plan
In Nigeria and the world over, soaps have always been an actively and regularly used domestic product. Local soaps are seen in their hundreds at open markets, stores, local shops and supermarkets.
There are a dozen of people who prefer Industrial soaps and packaged soaps, a vast majority of soap users have a strong liking for locally manufactured soaps just like the popular known “Lagos soap”.
Indisputably we all wash our clothes every weekend or twice a week and dishes every day with soaps. The relevance of soaps to hygiene, cleanliness and health maintenance in Nigeria can never be overemphasized. Soaps are made from basic fats & oils and chemical bases through a process called Saponification and hydrogenation. Industrially this is more scientifically explained practically and transparency is seen in its application while locally, the same process is applied but more in an unconscious manner.
Table of content
Executive Summary 4
Business Description 7
Products and Services 12
Market Analysis 13
Competitor Analysis 15
Sales and Marketing Plan 19
Operational Plan 25
Management Plan 27
Financial Plan and Projections 30
PATILAD SOAP is the name of the overall company where ODUSEG soap is a subsidiary of. We are into preparation, production and packaging of liquid formula soap, tablet soap, bar soap. Our customers are people from all works of life and ages. PATILAD SOAP is a sole proprietorship owned by Mr Dayo Adetiloye. The Company is planned to start in May 2017 and will extract palm kernel oil to sell some for companies who need them as raw materials, e.g., soap factories. We will also commence production of laundry soaps in tablets and in liquid forms same month and will introduce more formulas and styles in three years time.
The target market is first the district population of Ipaja which makes up of over a million persons which include households, restaurants, hotel visitors, car owners in Nigeria and the sub-region.
Our Major strengths which will deliver our markets include the Company’s investments in a backward investigation for the purpose of providing for its basic raw material inputs that can hardly be matched by our Competitors and the introduction of a network of distribution which will encompass outlet dealers in various cities. We will also use other channels like GSM bulk SMS.
The Directors of the Company are well experienced in their chosen field; all their experiences will be brought to bear in the new Company, and to kick-start at a minimal rate with a high-quality product to penetrate the existing market and customers easily.
PATILAD SOAP is established as a sole proprietary company owned solely by Dayo Adetiloye. The company is managed and directed by Dayo Adetiloye, a vast quintessential expert in the telecommunication industry with over 10 years’ experience in soap making industry.
Products and Services
Extraction of palm kernel oil
Laundry Bar Soap
Toilet Soap production
Organic milk soap
Our factory is located in Ipaja in the heart of Lagos, in a population-dense area with about over a 1000 store and supermarkets, 100s of hotels, 5 major markets, and over 300,000 residential homes with over a million residents. Our market reaches these loads of available market, however, we also take advantage of the huge online opportunity to sell our product to a wider audience.
Competitors for PATILAD SOAP include:
Envoy industry Ltd
Cross soap Nig. Ltd
Promotex soap and chemical
EUROPEAN Tablet/Bar and detergent soap.
PATILAD SOAP competitive edge includes affordable pricing, the sale of high quality products, good technical know-how, efficient and fast service provision, excellent customer service, the expertise of its founders, etc.
PATILAD SOAP seeks N10 million in long-term financing to cover start-up costs, equipment, building expenses, and working capital.
Funding for the launch of the business is provided primarily by equity from the partners and investors.
The business will reach positive cash flow in its 9th month of operation, allowing for expedited repayment of its loan obligations, as well as for dividends to be paid to the owners. Revenue will top N35 300 000 and profit will reach about N12,589,640 in the 1st year of operation.