Soap Making Business Plan in Nigeria
One of the items we can hardly survive without is soap. One thing about making huge profits in business is that investing in essentials like soap can hardly fail. As an SME in Nigeria, it is possible to make up to five hundred thousand Naira monthly from soap making.
Also Read: Candle Production Business Plan in Nigeria
One of the major advantages of this business is that you don’t need huge sums of capital to begin. With as little as one hundred thousand naira, you can start your soap making business. Want to know how?
In this post, we will show you how to start your soap making business in Nigeria. We will also show you a sample business plan for soap making in Nigeria as well as the profitability of this business.
Sample Business Plan on Soap Making in Nigeria
Before we go into the crux of how to start this business, let us first show you a sample business plan. We put together this plan after lots of research. This means that you can use this plan as a template for grant and loan applications as well as running your business.
However, you should note at this point that this is a sample plan so it will be abridged. If you want the complete plan you can contact us and we will provide one in record time.
Business Name: ABS Soaps
Business Location: Ilorin, Kwara State
ABS Soaps is not only into the business of making liquid and bar soaps, it is also in the business of offering training services. Our products are targeted at both the Nigeria and International markets. Our company focuses on the production of mild and medicated skin soaps and liquid washes for kitchen use. We look forward to branching into the production of detergents in the nearest future.
Currently, soaps are in high demand in Nigeria considering that the population is increasing very fast. However, there is a single challenge, more than half of the Nigerian populace does not have a high purchasing power. This means there is a need for quality soaps at affordable prices.
We see this as an opportunity to take over the market. ABS Soaps has developed a method of production that will see us cut down on production costs while maintaining quality. Doing this gives us a chance to usurp existing competition and take a huge chunk of the market.
We also have a well-structured training arm that offers training services to young entrepreneurs including students and recent graduates. The cost of training has been fixed to be very affordable to accommodate these individuals. Training sessions are intensive and practical and spread over six weeks.
To become one of the biggest producers of soap products in Nigeria within the next five years.
To become the one-stop company for anything soap within Nigeria and to be recognized on the continent as a quality producer of soaps.
After much research, we believe that business objectives are key ingredients that we must work towards. Achieving these is tantamount to achieving the company’s vision and mission statements. Hence, these are our business objectives:
- Constant improvement in sales volume which will result from steady production.
- Attaining customer satisfaction so that we can ensure that more than 60% of customers become loyal to our brand.
- Continually work on the production process to ensure that we can provide cheaper quality products to the public.
Already several companies are invested in the production of different kinds of soaps in the country. These companies have been into the business for several years and already have a large chunk of the market. It means that we must be on our toes in terms of creativity if we are going to grow as a company.
After much research, here are the reasons why we are sure that we can grow our customer base:
- Efficient distributor network.
- Unique packaging for our qualitative products.
- Excellent and efficient customer care.
- Home delivery services.
- Taking advantage of the internet to market our products.
- Prompt delivery of products.
Every company needs to attain a competitive advantage to grow above the competition. Based on our research, we have come up with the following as our competitive advantages.
- Quality products at very affordable prices.
- Creative unique packaging.
- Prompt product delivery.
- Flexible training methods.
Like we stated earlier, this business plan is abridged since it is only a sample. We will share the full business plan at a subsidized cost once you show interest by contacting us. Also, we can develop a customized business plan for soap making or any other business in Nigeria.
Soap Production Process
Before going ahead, we need to define what soaps are. Soaps are cleaning agents or products that are manufactured from natural substances. Examples of such substances include palm kernel oil, coconut oil, castor oil, and olive oil to mention a few. Basically, these oils are mixed with soda ash and caustic soda.
Generally, there are two classes of soap based on their form. Soaps are either liquid or bar and they can be used for a variety of purposes. Uses of soaps include washing clothes, bathing, washing kitchen utensils, etc.
The production process of your soap is a function of the kind of soap you want to focus on. Many SMEs that venture into soap production in Nigeria prefer to focus more on the production of liquid soaps. This is because it is cheaper and easier to achieve than bar soaps.
Since bar soaps are less common, we decided to focus more on this product. Less common in business means more opportunity.
Methods of Producing Bar Soaps
Listed below are a couple of methods that can be employed in producing bar soaps.
- Melt and Pour. This process is one of the simplest used in the production of soaps. It is based on recycling already prepared soaps. The pre-made soap is used as the base of the new soap such that it is melted and new ingredients are added. After this, you should pour the mixture into a mold and let it form.
- Cold process. Of all the processes, this has proven to be the most difficult. The first step is making sure that all the materials to make the soap formula are available. After mixing them, leave the mixture to cure for between four and six weeks. It is left for this period because no heat is incorporated into the process. This waiting period is known as saponification.
- Hot process. This process is very similar to the cold process. As you can guess, the only difference is the incorporation of heat to make the saponification process faster. As you add the ingredients to the mixture, keep stirring. Heat the resulting mixture to help remove the excess water.
- Soap rebatching. This is also known as the milled soap method. It is close to the first method described, the melt and pour method. The only difference, in this case, is that you make use of your mixture for the base instead of a premade soap. It is mostly used when you have unsuccessful soap batches as well as in preserving the scents and healing properties from the oil.
Starting your Soap Making Business in Nigeria
Regardless of the type of soap, you plan to make, you must understand the rudiments of the business. The best way to do this is to meet up with an existing soap producer or attend physical training sessions. However, we have put together a list of things to do to help you on your quest.
- Get a location. The location for your business is very important in soap making. This is because you need a place to produce and a place to market. Make sure that your location is close to the market and where you find raw materials.
- Acquire equipment. There are several pieces of equipment you need for the production process. Some of them include mold, trimming machines, measuring cups, plastic spoons, mixing containers, stick blenders, etc.
- Decide on your recipe. This is what will set you apart from other products so you need to research properly.
- Register with the CAC.
- Develop an efficient marketing plan.
Profitability of the Soap Making Business in Nigeria
Soap making business is one of the most profitable businesses in Nigeria. In case you are surprised, we will explain why it is.
Firstly, you need between sixty and one hundred thousand naira to start this business. This depends on the level of production at which you plan to operate.
If you invest N100,000 in this business, with efficient marketing, you can make up to twice this amount in a month. Let’s say you produce 1,000 bottles of liquid soap with N100,000, the average price of liquid soap is N200 per bottle. Selling at this rate means that you will make N200,000 within a month.
There you have it, all you need to know about the soap making business in Nigeria. If you will like to have the full business plan, you can reach out to us. We will provide it at a subsidized fee in record time.
Get your Soap Making Business Plan in Nigeria and feasibility study. pay N20,000 to:
Bank Name: Guaranty Trust Bank (GTB)
Account Name: Chibuzor Tochi Onyemenam
Account Number: 0044056891
After payment, send your name, email address and “soap production business plan” to 07033378184
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