Make clean cash through toilet, laundry soap
The need to maintain a hygienic look and environment makes it
necessary to always bath our bodies and wash our clothes and kitchen
utensils. Soap for laundry and toilet is one business that is always
lucrative as long as people wash something. Production of soap for
toilet and laundry is one business that can be done and profitably too,
in Nigeria. The country also boasts of all the raw materials and
equipment and technology used for the production of soap but
incidentally, the country still imports a huge quantity of the soap
used by its citizens from other parts of the world.
Although it is well known that Nigeria as well as Malaysia, Singapore
and some other Asian countries have potentials for producing high
quality toilet and laundry soaps, only Nigeria still depends on import
for their toilet and laundry soaps and even import a large quality of
the soap used by its citizens from Malaysia and Singapore. At the
moment, the Federal Government has placed a ban on importation of some
commodities including toilet and laundry soaps which should,
ordinarily, make soap manufacturing a more lucrative venture for
investors into the business. However, the situation has only resulted in
a hike in the price of the foreign toilet and laundry soaps available
in the market while local production has not been able to match up with
local demands.
Soap manufacture is one of the cheapest, yet highly lucrative
investment items with the availability of raw materials and technology.
With the clamour for job creation and under-dependence on foreign aids,
soap manufacturing could be one business that will easily absorb a
chunk of the teeming population of unemployed youths as well as rake in
the deed revenue to finance other sectors of the economy. As was said
earlier, the business is highly elastic in the sense that no matter
the strength of one’s purse, there is always an opportunity to operate a
toilet and laundry soap manufacturing outfit. The business allows
small, medium or large scale investors to engage in the business. Also,
the business can be located in any part of the country since the raw
materials are readily available. Like every other business, what is
most important in any business is to the attitude to the business.
Toilet or laundry soap manufacture involves use of some technology which
are available in the country. These technology get imporved from time
to time which requires that the investor must be abreast of the
development to make him more competitive. Like was said earlier, Nigeria
has the potentials to make soaps that will meet international standard
but the investors must be prepared to apply international standard in
the manufacture.
Although profit-making is the basic reason for going into any business,
it is always advised that the investor must not put money as the first
and only consideration. He must be aware of the fact that there is
always competition in every business and so the most important
consideration would be how to establish an edge or advantage over the
other competitors. The investor must first concentrate on manufacturing
toilet and laundry soaps that will become brands in the market. It is
only after that that the quality of soap will attract the quality of
patronage that will position the business for profits. How the business
is positioned will determine the sustainability of the business. It is
always advised to start every business project with a plan, or what is
known as feasibility study. The study will show how to go about the
business, whether it’s a small, medium or large scale that the investor
wants to embark on.
Having concluded on the type and size of the business the next
consideration will be sourcing of raw materials for the manufacturing.
The investor must identify the right places to procure the raw
materials and at affordable prices. It must be understood that the
quality of raw materials could determine the quality of the final
product so efforts must be
made by the investor to ensure that he sources high quality raw
materials for the business. All the raw materials needed for the
business can be sourced locally eliminating the problem of sourcing
foreign exchange for importation. Some of the raw materials needed in
soap making include animal fats or vegetable oil, chemicals, including
fragrances, wrapping materials and cartons. The large stock of the raw
materials guarantees sustainability of the business.
As is well known, soaps for laundry and toilet have wide acceptance and
so can be found in every home and business environment. Apart from
this, it also has a by-product called Glycerin which is derived from
soap production. This by-product used in the pharmaceutical, cosmetics
industries and laboratories also has a high market value. The investor
can still make profit from selling the by-product after the soap
production.
From the feasibility study, the investor will have clear details of
how much it will cost to install the soap-making machines. This, as said
earlier, will depend largely on the size of the investor’s pocket.
There are locally fabricated machines which can be used for the
manufacture. They also have their imported equivalent which equally
manufactures soaps but are more expensive to procure. Being one of the
products on the import-banned list, it is also one of the projects
financial institutions are willing to fund and so the investor can
approach the banks for the initial startup capital. Given the viability
of the business, the bank as well as the investor are sure to make
profits on their investment.
Some of the machines required to set up the toilet and laundry soap
business are steam generators, filter press, soap reactors, recovery
vessels, oil storage tanks and vessels, drying machines, cooling
frames, plodder, cutting tables, stamping machine and wrapper.
According to experts, the soap-making plants can produce between 1,500
to 2,000 metric tons of soap per annum and can be increased depending
on the investor’s choice. Studies have found that the cost of
establishing the soap making plant is determined by the scale and type
of machines to be used. The imported machines cost much more than the
locally fabricated ones.
The production process for the toilet and laundry soap production
involves pre-treatment, saponification, grinding, drying and packaging.
Although, all the process are very important and must be observed with
caution, the packaging has been identified as one of the stages that
could determine the profitability or otherwise of the business. A lot
of times, consumers as well as traders place premium on the quality of
the packaging of the product. Sometimes some extra expenses are
incurred in order to get the right packaging for the product. For soap
manufacturing, a good product may make poor sales simply because the
good product was packaged wrongly and so the investor must ensure that
he gives keen attention to the packaging. Before embarking on the
packaging the investor is advised to carry out a market survey of the
trend in packaging the quality and type of packaging that is in vogue,
the colour suitable for the products to ensure that he does not make
losses as a result of poor packaging.
The manpower need in the business is equally essential. Nigeria does
not have a short supply of skilled manpower in soap-making, as a result,
the investor must carefully select his team of workers. He must
ensure that they are disciplined and dedicated and he must also ensure
that he is practically interested in their welfare. One of the
setbacks of a business is when good hands leave an employer simply
because he does not care about their welfare. The number of workers
required to carry out the production could depend on the capacity of the
business and the type of toilet and laundry soap to manufacture.
There is a huge market for toilet and laundry soap manufacture. There
is a rising demand for soap as the consciousness for clean and healthy
living increases. More households are spending more for their toilet and
laundry soaps and their purchase is determined by the quality of the
soap and the packaging. Also, with the rising population, the demand for
soap is far outstripping the supply thereby putting the investor in a
position to make quick profits. Of course, like was said earlier, the
potential to produce internationally competitive soaps are there for
Nigerian investors. The investor has to explore the possibility of
exporting his product outside the country thereby making more profits
Nigeria has a great potential in soap-making that can gain
international acceptance, using local raw materials and technology.
This, however, will depend on how the investor manages the business. The
country is in dire need of investors who will help her break the jinx
of over-dependence on imported products. A determined investor can
achieve this feat and create wealth and will in turn benefit the larger
society.
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