Soap Making Business Plan

Soap is an essential product in our everyday life and can be found in all homes, laundries, hotels, eateries, etc. The uses of soap range from bathing, washing clothes, hands, plates, and other items. The use of soap is hardly affected by economic meltdown due to its importance in our everyday life, especially during the Covid era where cleanliness has become a very important aspect of fighting the Corona Virus.

Soaps are manufactured based on their uses and soap production companies are involved in making bar soaps, liquid soaps, and detergent with different scents and packaging. Companies in the soap industry are classified based on the use and application of their uses (Beauty, cleaning, laundry, etc.)

The use of soap in Nigeria has become a tradition to every Nigerian, it can be estimated that every home in Nigeria use up to 2 bar soaps for bathing alone, while up to 2 bar soaps and a packet of detergent can be used within two weeks for washing of clothes and kitchen utensils, despite the introduction of different types of soaps including liquid soaps and detergents, bar soaps and bathing soaps still sales high in the market even with their price increase, the reason for this is because most people prefers bar soap than other types of soaps irrespective of the purpose they were meant to serve.

The soap making industry has attracted a lot of investors and entrepreneurs as it requires a low start-up capital and little training with high ROI. The market is a very large one and there is room for more investors and entrepreneurs to come in as the market continues to grow because it is a necessity for most homes, laundry shops, offices, restaurants and car wash garages. This has brought about a high level of competition in the market and to gain a fair share of the market requires a lot of work and dedication.

Table of Contents

I.      Introduction. 4

1.0   Executive Summary. 4

1.1   Company Benefits. 5

1.2   Business Objectives. 6

1.3   Vision. 6

1.4   Mission. 6

1.5   Keys to Success. 6

2.0   Company Summary. 7

2.1   Company Ownership. 7

2.2   Location and facilities. 7

2.3   Start-Up Summary. 8

Table: Start-up Funding. 9

3.0   Company Product Description. 9

3.1   Product Description. 10

3.2   Product Uniqueness. 10

3.3   Future Products. 10

4.0   Market Analysis. 10

4.0.1 Market Summary. 10

4.0.2 Marketing Plan. 11

4.1    Target Market12

4.2   Industry Analysis. 12

4.3   Challenges of Soap Making in Nigeria. 12

4.4   SWOT Analysis. 13

4.4.1 Strengths. 14

4.4.2 Weakness. 14

4.4.3 Opportunities. 14

4.4.4 Threats. 14

4.5 External Environmental Analysis. 14

4.6 Marketing Strategy. 14

4.7 Publicity and Advertising Strategy. 15

4.8 Sales Forecast16

4.9 Sustainability and Expansion Strategy. 18

5.0 Strategy and Implementation Summary. 18

5.1 Competitive Edge. 19

6.0 Management Summary. 20

6.1 Management Team.. 20

6.2 Personnel Plan. 20

Table: Payroll Year 1. 21

Table: Payroll Year 1-3. 21

7.0 Financial Plan. 21

7.1 Breakeven Analysis. 21

7.2 Projected Profit and Loss. 22

7.3 Projected Cash Flow.. 23

7.4 Projected Balance Sheet25