The soap production business involves the mixture of materials needed to produce different kinds of soap, ranging from bathing soap to washing soap to detergents. Soap is used for cleaning and washing. It is a very essential commodity in our everyday lives. We have to wash our bodies, wash our clothes, wash our floors and toilets, wash the dishes, and do many other washing activities. Everyone would need to use soap one way or the other at least once a day. That's a good business opportunity for anyone to tap into. In this article, I will do a cost analysis of starting a small soap production business at home in Nigeria. -
We are going to look at the amount needed to start a bar soap production business, the quantity obtainable from that capital, and the profit you can get. Let's move straight into the equipment you are going to need to start a soap production business. They are
1) Manual Cutter: NGN20,000 (approx. $50)
2) Drying trees NGN30,000.(approx. $60)
3) Mould. NGN20,000 (approx. $50)
4) Pots of NGN20,000 (approx. $50)
5) Stick Blender NGN 12,000 (approx. $25)
6) Thermometer. NGN 20,000 (approx. $50)
7) Scale NGN10,000 (approx. $12)
8) Containers NGN 10,000 (approx. $12)
9) Spatula NGN10,000 (approx. $12)
10). Gloves or goggles, NGN7,000 (approx. $9).
Apart from this equipment, there are chemicals, which are the raw materials in soap production. So let's budget NGN 100,000 (approximately $250) for the chemicals.
So the total cost of production would sum up to NGN 269,000 (approximately $570). That's the amount needed to start a soap production business.
With the above costs, you can produce 2500 pieces of bar soap. assuming that you intend to sell at a profit of just NGN20. You would make a profit of NGN50,000 (approx. $110). The key to success in this business is the production of quality soap that lathers and foams easily. Also, your soap must have a good scent. If you finish buying that equipment, you can set up your mini factory right at home. It is not a business that has bulky equipment that you would need to secure shop space for. It is also not affected by location because the bulk of your customers have to be outside your point of production.
The business requires excellent marketing abilities to be able to distribute to shops, supermarkets, and stores. You can start your marketing drive in your close social circles. If a person is consistent with production quality and their distribution network, the business is bound to expand and grow into a megabusiness in just a year.
We are going to look at the amount needed to start a bar soap production business, the quantity obtainable from that capital, and the profit you can get. Let's move straight into the equipment you are going to need to start a soap production business. They are
1) Manual Cutter: NGN20,000 (approx. $50)
2) Drying trees NGN30,000.(approx. $60)
3) Mould. NGN20,000 (approx. $50)
4) Pots of NGN20,000 (approx. $50)
5) Stick Blender NGN 12,000 (approx. $25)
6) Thermometer. NGN 20,000 (approx. $50)
7) Scale NGN10,000 (approx. $12)
8) Containers NGN 10,000 (approx. $12)
9) Spatula NGN10,000 (approx. $12)
10). Gloves or goggles, NGN7,000 (approx. $9).
Apart from this equipment, there are chemicals, which are the raw materials in soap production. So let's budget NGN 100,000 (approximately $250) for the chemicals.
So the total cost of production would sum up to NGN 269,000 (approximately $570). That's the amount needed to start a soap production business.
With the above costs, you can produce 2500 pieces of bar soap. assuming that you intend to sell at a profit of just NGN20. You would make a profit of NGN50,000 (approx. $110). The key to success in this business is the production of quality soap that lathers and foams easily. Also, your soap must have a good scent. If you finish buying that equipment, you can set up your mini factory right at home. It is not a business that has bulky equipment that you would need to secure shop space for. It is also not affected by location because the bulk of your customers have to be outside your point of production.
The business requires excellent marketing abilities to be able to distribute to shops, supermarkets, and stores. You can start your marketing drive in your close social circles. If a person is consistent with production quality and their distribution network, the business is bound to expand and grow into a megabusiness in just a year.
