Why Start A Soap Making Business Plan?
Why Start A Soap Making Business Plan?
Why Start A Soap Making Business Plan?
Despite the fact that loads of entrepreneurs are delving into soap making business, the
market for liquid soap is still pretty large and will still continue to grow because it is a
necessity for most homes, offices, canteens, laundry shops, amongst others.
That means if you truly want to make it big in this business, you must be willing to work hard
to be able to gain your own fair share of the available market. As such, if you are tinkering
with starting a business that requires low start – up capital and little training and technical
skills, then you may want to tinker with starting your own soap production company.
One good thing about this kind of business is that you can start it on a small scale level from
your home and then grow to a bigger facility when your market grows. Below is a sample
soap production company business plant template that you can use to write yours;
Executive Summary
Cites® Soap Production Company is a licensed and standard soap production company
that will be located in Illinois. We have been able to secure a long term lease for a facility in
a strategic location with an option of a long term renewal on an agreed terms and conditions
that is favorable to us.
The facility has government approval for the kind of business we want to run and it is easily
accessible and we are deliberate about that to facilitate easy movement of raw materials
and finished products (well packaged soaps and detergent).
We are in the soap making line of business to produce block soaps, liquid soaps and
detergents in commercial quantities. We are also in business to make profits at the same to
give our customers value for their money; we want to give people and businesses who
patronize our soaps and detergents the opportunity to be part of the success story of Cites®
Soap Production Company.
We are aware that there are several big scale and small scale soap production companies
scattered all around America whose products can be found in every nooks and crannies of
the country, which is why we spent time and resources to conduct our feasibility studies and
market survey so as to enable us locate the business in an area that will support the growth
of the business and also for us to be able offer much more than our competitors will be
offering.
We ensured that our facility is easy to locate and we have mapped out plans to develop a
wide distribution network for wholesalers all around Illinois and the United States of America
as a whole.
Much more than producing quality soaps and detergent in commercial quantities, our
customer care is going to be second to none. We know that our customers are the reason
why we are in business which is why we will go the extra mile to get them satisfied when
they visit or purchase our product and also to become our loyal customers and
ambassadors.
Cites® Soap Production Company will ensure that all our customers (wholesale distributors)
are given first class treatment whenever they visit our Depot / Plant. We have a CRM
software that will enable us manage a one on one relationship with our customers
(wholesale distributors) no matter how large the numbers of our customer base may grow
to.
We will ensure that we get our customers involved when making some business decisions
that will directly or indirectly affect them.
Cites® Soap Production Company is family business that will be owned by Mrs. Celina
Bassek and her immediate family members. Mrs. Celina Bassek who is the Chief Executive
Officer of the Company is Graduate of Industrial Chemistry (B.Sc.) and she holds a Master’s
Degree in Business Management (MBA).
She has well over 10 years of experience working in the soap production industry as a
senior manager prior to starting Cites® Soap Production Company. She will be working with
a team of professionals to build the business and grow it to become one of the market
leaders in the industry.
Our Product Offering
Cites® Soap Production Company is going to operate a standard and licensed soap
production company whose product will not only be sold in Illinois. We are in the soap
production line of business to make profits and also to give our customers value for their
money and we are going to do all that is permitted by the law of the United States of
America to achieve our corporate goals.
Our products and services offering are listed below;
Our vision is to establish a standard Soap Production Company whose product will
not only be sold in Illinois, but also throughout all the states in America and in other
parts of World.
Our mission is to establish a standard and world class Soap Production Company
that in our own capacity will favorably compete with leaders in the industry.
We want to build a soap production business that will be listed amongst the top 10
soap and detergent brands
We want to build a household brand name.
Plant Manager
Responsible for overseeing the smooth running of the soap production plant
Part of the team that determines the quantity and variance of soaps and detergents
that are to be produced
Maps out strategy that will lead to efficiency amongst workers in the plant
Responsible for training, evaluation and assessment of soap plant workers
Ensures that the steady flow of both raw materials to the plant and easy flow of
finished products through wholesale distributors to the market
Ensures operation of equipment by completing preventive maintenance
requirements; calling for repairs.
Ensures that the plant meets the expected safety and health standard at all times.
Responsible for overseeing the smooth running of HR and administrative tasks for
the organization
Updates job knowledge by participating in educational opportunities; reading
professional publications; maintaining personal networks; participating in
professional organizations.
Enhances department and organization reputation by accepting ownership for
accomplishing new and different requests; exploring opportunities to add value to job
accomplishments.
Defines job positions for recruitment and managing interviewing process
Carries out staff induction for new team members
Responsible for training, evaluation and assessment of employees
Oversees the smooth running of the daily office and plant activities.
Manages external research and coordinate all the internal sources of information to
retain the organizations’ best customers and attract new ones
Models demographic information and analyze the volumes of transactional data
generated by customer purchases
Identifies, prioritizes, and reaches out to new partners, and business opportunities et
al
Responsible for supervising implementation, advocate for the customer’s needs, and
communicate with clients
Develops, executes and evaluates new plans for expanding increase sales
Documents all customer contact and information
Represent the company in strategic meetings
Help increase sales and growth for the company
Accountant / Cashier
Responsible for preparing financial reports, budgets, and financial statements for the
organization
Provides managements with financial analyses, development budgets, and
accounting reports; analyzes financial feasibility for the most complex proposed
projects; conducts market research to forecast trends and business conditions.
Responsible for financial forecasting and risks analysis.
Performs cash management, general ledger accounting, and financial reporting
Responsible for developing and managing financial systems and policies
Responsible for administering payrolls
Ensures compliance with taxation legislation
Handles all financial transactions for the organization
Serves as internal auditor for the organization
Ensures that all contacts with customer (e-mail, walk-In center, SMS or phone)
provides the client with a personalized customer service experience of the highest
level
Through interaction with customers on the phone, uses every opportunity to build
client’s interest in the company’s products and services
Manages administrative duties assigned by the store manager in an effective and
timely manner
Consistently stays abreast of any new information on Cites® Soap Production
Company products, promotional campaigns etc. to ensure accurate and helpful
information is supplied to clients when they make enquiries
Receives parcels / documents for the company
Distributes mails in the organization
Handles any other duties as assigned by the human resources and admin manager
Assists in loading and unloading soaps and detergents meant for distribution.
Maintain a logbook of their driving activities to ensure compliance with federal
regulations governing the rest and work periods for operators.
Keeps a record of vehicle inspections and make sure the truck is equipped with
safety equipment
Assists the transport and logistics manager in planning their route according to a
delivery schedule.
Local-delivery drivers may be required to sell products or services to stores and
businesses on their route, obtain signatures from recipients and collect cash.
Transports finished goods and raw materials over land to and from manufacturing
plants or retail and distribution centers
Inspects vehicles for mechanical items and safety issues and perform preventative
maintenance
Complies with truck driving rules and regulations (size, weight, route designations,
parking, break periods etc.) as well as with company policies and procedures
Collects and verifies delivery instructions
Reports defects, accidents or violations
SWOT Analysis
We are quite aware that there are several soap production companies both large and small
in America, whose products can be found in every nooks and crannies of the country, which
is why we are following the due process of establishing a business so as to compete
favorable with them.
We know that if a proper SWOT analysis is conducted for our business, we will be able to
position our business to maximize our strength, leverage on the opportunities that will be
available to us, mitigate our risks and be welled equipped to confront our threats.
Cites® Soap Production Company employed the services of an expert HR and Business
Analyst with bias in start – up business to help us conduct a thorough SWOT analysis and
to help us create a business model that will help us achieve our business goals and
objectives. This is the summary of the SWOT analysis that was conducted for Cites® Soap
Production Company;
Strength:
Aside from quality and variety of soaps and detergents that we make, part of what is going
to count as positives for Cites® Soap Production Company is the vast experience of our
management team, we have people on board who are highly experienced and understands
how to grow business from the scratch to becoming a national phenomenon.
So also our large national distribution network and of course our excellent customer service
culture will definitely count as a strong strength for the business.
Weakness:
A major weakness that may count against us is the fact that we are a new soap production
company and we don’t have the financial capacity to engage in the kind of publicity that we
intend giving the business.
Opportunities:
The opportunities for soap production companies are enormous. This is due to the fact that
soap is a universal product that can be found in all homes, canteen, laundries, hotels and
toilets et al.
As a result of that, we were able to conduct a thorough market survey and feasibility studies
so as to position our business to take advantage of the existing market for soaps and
detergents and also to create our own new market. We know that it is going to requires hard
work, and we are ready to give all it will take to achieve it.
Threat:
We are quite aware that just like any other business, one of the major threats that we are
likely going to face is economic downturn and unfavorable government policies. It is a fact
that economic downturn affects purchasing power. Another threat that may likely confront
us is the arrival of a new soap production company in same location where ours is located.
MARKET ANALYSIS
Market Trends
The trend in the soap and detergent production industry is such that, any product that has
been proven to be reliable and healthy tends to sell more and determine the direction of the
market for such industry. You would quite agree that there are loads of soap and detergent
brands out there in the market that you may have to compete with.
One of the things that you need to do to get your own fair market share is to come out with
a creative packaging for your soap and detergent and also come up with different fragrance
and sizes. You might just have to consult a brand expert if you truly want to make it big with
your soap making company.
Lastly, another trend in the soap production industry is that leading soap and detergent
production companies ensure that they get well – known celebrity to become their brand
ambassador. With that, it is easier for them to be able to sell their products and have an
active presence in the industry.
Our Target Market
When it comes to selling soaps and detergents, there is indeed a wide range of available
customers. In essence, our target market can’t be restricted to just a group of people or
organization, but all those who resides in our target market locations.
In view of that, we have conducted our market research and we have ideas of what our
target market would be expecting from us. We are in business to engage in the production
and wholesale distribution of soaps and detergents to the following groups of organizations;
Hotels
Restaurants and Canteens
Event Planners, Parties and Corporate Functions
Corporate Executives
Government Officials
Business People
Celebrities
Pregnant women / Expectant mothers (for their babies)
Military Men and Women
Sports Men and Women
Students
Laundry Owners
Sources of Income
Cites® Soap Production Company is established with the aim of maximizing profits in the
soap and detergent production industry in both Illinois and we are going to go all the way to
ensure that we do all it takes to sell our products to a wide range of customers all across
America.
Cites® Soap Production Company will generate income by selling the following products;
Sales Forecast
One thing is certain when it comes to soap and detergent production business, if your soap
and detergent are well – packaged and branded and if your production plant is centrally
positioned and easily accessible, you will always attract customers cum sales and that will
sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in every city where our soap and
detergent will be sold all across America and we are quite optimistic that we will meet our
set target of generating enough income / profits from the first six month of operations and
grow the business and our clientele base.
We have been able to critically examine the soap and detergent production industry and we
have analyzed our chances in the industry and we have been able to come up with the
following sales forecast. The sales projections are based on information gathered on the
field and some assumptions that are peculiar to startups in Illinois.
Below are the sales projections for Cites® Soap Production Company, it is based on the
location of our business and other factors as it relates to small scale and medium scale
soap and detergent production company start – ups in America;
N.B: This projection is done based on what is obtainable in the industry and with the
assumption that there won’t be any major economic meltdown and there won’t be any major
competitor offering same product and customer care services as we do within same
location. Please note that the above projection might be lower and at the same time it might
be higher.
Place adverts on both print (community based newspapers and magazines) and
electronic media platforms
Sponsor relevant community programs
Leverage on the internet and social media platforms like; Instagram, Facebook ,
twitter, et al to promote our brand
Install our Bill Boards on strategic locations all around Lagos State and major cities
in Nigeria
Engage in road show from time to time in targeted communities
Distribute our fliers and handbills in target areas
Position our Flexi Banners at strategic positions in the location where we intend
getting customers to start patronizing our products.
Ensure that our soaps and detergents are well branded and that all our staff
members wear our customized clothes, and all our official cars and distribution vans
are customized and well branded
Payment Options
The payment policy adopted by Cites® Soap Production Company is all inclusive because
we are quite aware that different customers prefer different payment options as it suits them
but at the same time, we will ensure that we abide by the financial rules and regulation of
the United States of America.
Here are the payment options that Cites® Soap Production Company will make available to
her clients;
In view of the above, we have chosen banking platforms that will enable our client make
payment for farm produces purchase without any stress on their part. Our bank account
numbers will be made available on our website and promotional materials to clients who
may want to deposit cash or make online transfer for the purchase of soaps and detergents.
The cost for the purchase of furniture and equipment (Computers, Printers,
Telephone, Fax Machines, tables and chairs et al) – $800
The cost of launching a website – $750
The cost for our opening party – $500
Miscellaneous – $1,000
We would need an estimate of $450, 000 to successfully set up a medium scale but
standard soap and detergent production business. Please note that this amount includes
the salaries of all the staff for the first 3 month of operation.
Generating Fund / Startup Capital for Cites® Soap Production Company
No matter how fantastic your business idea might be, if you don’t have the required money
to finance the business, the business might not become a reality. Finance is a very
important factor when it comes to starting a business such as soap and detergent
production company.
No doubt raising start – up capital for a business might not come cheap, but it is a task that
an entrepreneur must go through. Cites® Soap Production Company is a family business
that is owned and financed by Mrs. Celine Bassek and her immediate family members.
They do not intend to welcome any external business partner which is why he has decided
to restrict the sourcing of the start – up capital to 3 major sources. These are the areas we
intend generating our start – up capital;
Generate part of the start – up capital from personal savings and sell of stocks
Source for soft loans from family members and friends
Apply for loan from my Bank
N.B: We have been able to generate about $250,000 (Personal savings $200,000 and soft
loan from family members $50,000) and we are at the final stages of obtaining a loan facility
of $500,000 from our bank. All the papers and document have been signed and submitted,
the loan has been approved and any moment from now our account will be credited with the
amount.
Sustainability and Expansion Strategy
The future of a business lies in the numbers of loyal customers that they have the capacity
and competence of the employees, their investment strategy and the business structure. If
all of these factors are missing from a business (company), then it won’t be too long before
the business close shop.
One of our major goals of starting Cites® Soap Production Company is to build a business
that will survive off its own cash flow without the need for injecting finance from external
sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to retail
our various fragrances of soaps and detergents a little bit cheaper than what is obtainable in
the market and we are well prepared to survive on lower profit margin for a while.
Cites® Soap Production Company will make sure that the right foundation, structures and
processes are put in place to ensure that our staff welfare are well taken of. Our company’s
corporate culture is designed to drive our business to greater heights and training and re –
training of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our
management staff and it will be based on their performance for a period of three years or
more. We know that if that is put in place, we will be able to successfully hire and retain the
best hands we can get in the industry; they will be more committed to help us build the
business of our dreams.
Check List / Milestone