Do you want to start a hand sanitizer production business? If YES, here is a sample hand sanitizer manufacturing business plan template & feasibility report.

If there is any product that is in high demand in pharmacies and supermarkets since the advent of the recent highly contagious viral disease, then it must be alcohol-based hand sanitizer. The fact that alcohol-based hand sanitizer is one of the antidotes to any virus, bacteria and germs means that the product is bound to sell well.

Starting a business whose products are used on a daily basis is the sure way to go if indeed you want to be profitable. In essence, starting a hand sanitizer production company is a business you should consider as an aspiring entrepreneur.

A Sample Hand Sanitizer Production Business Plan Template

Industry Overview

Businesses in the Hand Sanitizer Manufacturing industry are involved in the manufacturing hand sanitizers in a variety of forms, including gel, foam, wipes and liquid. Hand sanitizers and hand antiseptics offer alternatives to hand washing with soap and water.

Research conducted by IBIS World shows that in the United States of America, over the five years to 2019, the Hand Sanitizer Manufacturing industry has experienced healthy growth, with total industry revenue expected to rise. This growth can largely be attributed to heightened consumer health consciousness over the past five years leading to a rise in total health expenditure.

Additionally, a renewed focus on product marketing from operators has contributed to revenue growth during the five-year period. However, this heightened interest in hand sanitizers has paved the way for increased competition among industry players.

Operators that leveraged distribution relationships often outperformed their peers during the five-year period, since these players were able to distribute their product across the country with low up-front costs.  Over the five years to 2024, the industry is projected to continue its upward trend, as consumers continue to focus on healthy lifestyles and become more aware and concerned of the outbreak and spreading of infectious diseases.

The Hand Sanitizer Manufacturing industry is a thriving sector of the economy of the United States of America and they generate over $74 million annually from more than 23 registered and licensed hand sanitizer manufacturing companies.

The industry is responsible for the employment of over 906 people. Experts project the industry to grow at a 3.9 percent annual rate. Gojo Industries Inc and Vi-Jon Laboratories are the leaders in the Hand Sanitizer Manufacturing industry.

Interestingly, the industry revenue has experienced healthy growth, rising from an annualized 3.9 percent to $74.4 million over the five years to 2020, including an increase of 16.6 percent in 2020 alone due to heightened demand as a result of the recent COVID-19 (coronavirus) outbreak.

Due to the high cost of manufacturing, marketing and distribution of hand sanitizers, large corporations dominate the industry and despite the fact that there are big corporations who are into the production of hand sanitizers, the fact remains that small – scale hand sanitizer production businesses have minimal barriers to entry, with low startup capital.

Some of the factors that encourage aspiring entrepreneurs to venture into this business is the fact that the market is pretty huge and not seasonal. This makes it easier for entrepreneurs who are interested in the business to come into the industry at any time they desire; the entry barriers are quite affordable and any serious – minded entrepreneur can comfortably raise the startup capital without collecting loans from the bank.

The Hand Sanitizer Manufacturing industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business as long as they are able to obtain the required chemical handling license. You can choose to start on a small or large scale depending on your financial capabilities.

Executive Summary

Ella Henry™ Hand Sanitizer Production Company, LLC is a licensed hand sanitizer production company that will be located in North Platte – Nebraska. 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 terms and conditions that are favorable to us. The facility has government approval for the kind of production business we want to run and the facility is easily accessible.

Ella Henry™ Hand Sanitizer Production Company, LLC is in the industry to produce widely accepted hand sanitizer products in a variety of forms, including foam, gel, wipes and liquid. We are also in the business to make profits and at the same time to give our customers value for their money.

We are aware that there are several hand sanitizer production companies scattered all around the United States, which is why we spent time and resources to conduct our feasibility studies and market survey. We ensured that our facility is easy to locate and we have mapped out plans to develop a far-reaching distribution network for wholesalers in North Platte – Nebraska and throughout the United States of America.

Beyond producing quality hand sanitizers in a variety of forms, 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 purchase our hand sanitizers.

Ella Henry™ Hand Sanitizer Production Company, LLC is family business that will be owned by Mrs. Ella Henry and her immediate family members. Mrs. Ella Henry who is the Chief Executive Officer of the Company is Graduate of Chemical Engineering and she holds a Master’s Degree in Business Management (MBA).

She has a Chemical Handler’s Certificate and is a Certified Disinfectant Manufacturer. She has over 10 years experience working in related industry as a senior manager prior to starting Ella Henry™ Hand Sanitizer Production Company, LLC.

Our Products Offerings

Ella Henry™ Hand Sanitizer Production Company, LLC is going to run a standard hand sanitizer production company whose products will not only be sold in North Platte – Nebraska but also throughout the United States of America and Canada.

We are in the industry to make profits and also to give our customers value for their money. These are some of the products that we will be offering;

  • Manufacturing and packaging hand sanitizers for wholesale distribution
  • Manufacturing and packaging related hand sanitizer products in a variety of forms, including foam, gel, wipes and liquid, along with dispensers for industry products.

Our Mission and Vision Statement

  • Our vision is to establish a standard hand sanitizer production company whose products will be not only be sold in North Platte – Nebraska, but also throughout the United States of America and Canada.
  • Our mission is to establish a world class hand sanitizer production Company that in our own capacity will favorably compete with leaders in the industry.
  • We want to build a business that will be listed amongst the top 3 hand sanitizer production brands in the United States of America

Our Business Structure

Ella Henry™ Hand Sanitizer Production Company, LLC is established with the aim of competing favorably with other leading brands in the industry. This is why we will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more depending how fast we meet our set target. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

  • Chief Executive Officer (Owner)
  • Plant Manager
  • Human Resources and Admin Manager
  • Merchandize Manager
  • Sales and Marketing Manager
  • Machine Operators
  • Accountants/Cashiers
  • Distribution Truck Drivers

Job Roles and Responsibilities

Chief Executive Officer – CEO (Owner):

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization.

Plant Manager

  • Responsible for overseeing the smooth running of the production plant
  • Part of the team that determines the quantity and quality of hand sanitizers and related products to be produced.
  • Maps out strategies that will lead to efficiency amongst workers in the plant
  • Responsible for training, evaluation and assessment of plant workers
  • Ensures that the steady flow of both raw materials and other packaging 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.

Human Resources and Admin Manager

  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Defines job positions for recruitment and managing interviewing process
  • Carries out induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Oversees the smooth running of the daily office and factory activities.

Merchandize Manager

  • Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
  • Responsible for the purchase of raw materials and packaging materials
  • Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors

Sales and Marketing Manager

  • Manages external research and coordinates 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
  • Documents all customer contact and information
  • Represents the company in strategic meetings
  • Helps to 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
  • 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
  • Ensuring compliance with taxation legislation
  • Handles all financial transactions for the organization
  • Serves as internal auditor for the organization

Client Service Executive

  • Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the manager in an effective and timely manner
  • Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
  • Receives parcels/documents for the company
  • Distributes mails in the organization
  • Handles any other duties as assigned by the line manager

Production Workers/Machine Operators:

  • Operates machines
  • Assists in packaging and loading hand sanitizers and related products into distribution trucks

Distribution Truck Drivers

  • Assists in loading and unloading hand sanitizers and related products
  • Maintains 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.
  • 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
  • Comply 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 hand sanitizer manufacturing companies both large and small in the United States of America 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 equipped to confront our threats.

Ella Henry™ Hand Sanitizer Production Company, LLC employed the services of an expert HR and Business Analyst with bias in startup businesses 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 Ella Henry™ Hand Sanitizer Production Company, LLC;

  • Strength:

Part of what is going to count as positives for Ella Henry™ Hand Sanitizer Production Company is the vast experience of our management team. So also, our closeness to leading collaboratory production companies, 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 hand sanitizer production company and we don’t have the financial capacity to engage in the kind of publicity that we intend giving the business especially when big names like Gojo Industries Inc and Vi-Jon Laboratories et al are already determining the direction of the market.

  • Opportunities:

The opportunities available to hand sanitizer manufacturing companies are enormous. This is due to the fact that people all over the world make use of hand sanitizers and related products especially in this period when is a global pandemic.

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 to create our own new market. We know that it is going to require hard work, and we are determined to achieve it.

  • Threat:

We are quite aware that just like any seasonal business, once the corona virus pandemic is over, sales might drop sharply. Revenue for the Hand Sanitizer Manufacturing industry is anticipated to decline slightly, since revenue started out at an artificially inflated level due to the ongoing pandemic.

Operators will likely spend more on marketing efforts due increased market saturation and that is part of the threats we are likely going to face. Another threat that may likely confront us is the arrival of a new hand sanitizer production company in same location as ours.

MARKET ANALYSIS

  • Market Trends

According to the latest trends as released by IBISWorld, their analysts constantly monitor the industry impacts of current events in real-time – here is an update of how this industry is likely to be impacted as a result of the global pandemic: Revenue growth for the Hand Sanitizer Manufacturing industry has been adjusted from 1.9 percent to 16.6 percent in 2020 due to rapidly surging demand.

Since many upstream chemical products are manufactured in China, the industry’s purchase costs are expected to fluctuate, leading to unsteady profit margins. Additionally, a sharp downturn in the world price of crude oil is expected to further reduce purchase costs.

Large manufacturers in this industry, such as Gojo Industries, have announced plans to increase production in response to rapidly increasing demand. Manufacturers are likely to prioritize supplies for institutional customers, particularly healthcare providers, over retail locations.

Our Target Market

When it comes to selling hand sanitizers, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just the health care industry, but all those who reside in our target market locations. We are in business to engage in the manufacturing and retail of hand sanitizers and related products to the following groups of people;

  • Pharmacies and Supermarkets
  • Hotels
  • Hospitals and Medical Facilities
  • Laboratories
  • Corporate Organizations
  • Government Offices
  • Business Premises
  • Laundries and Laundromats
  • Schools
  • Public Facility Operators
  • Everybody in our target market location

Our Competitive Advantage

A quick preview of the Hand Sanitizer Manufacturing industry reveals that the market has become much more intensely competitive in recent time. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry especially after this corona virus pandemic in the world.

We are aware of the stiff competition and we are prepared to compete favorably with other hand sanitizer production companies in North Platte – Nebraska and throughout the United States.

Ella Henry™ Hand Sanitizer Production Company, LLC is launching a standard hand sanitizer brand that will indeed become the preferred choice for residents of North Platte – Nebraska and every city where our hand sanitizers will be retailed.

Part of what is going to count as competitive advantage for Ella Henry™ Hand Sanitizer Production Company, LLC is the vast experience of our management team, we have people on board who are highly experienced and understand how to grow business from the scratch to becoming a national phenomenon.

So also, closeness to some of the largest raw materials producers, our large and far reaching national distribution network and of course our excellent customer service culture will definitely count as a strong strength for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

SALES AND MARKETING STRATEGY

  • Sources of Income

Ella Henry™ Hand Sanitizer Production Company, LLC is established with the aim of maximizing profits in the Hand Sanitizer Manufacturing industry in both the United States of America and Canada and we are going to go ensure that we do all it takes to generate income from;

  • Manufacturing and packaging hand sanitizers for wholesale distribution
  • Manufacturing and packaging related hand sanitizer products in a variety of forms, including foam, gel, wipes and liquid, along with dispensers for industry products.

Sales Forecast

One thing is certain when it comes to hand sanitizer production company, if your products 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 North Platte – Nebraska and every city where our hand sanitizers and related products will be sold and we are quite optimistic that we will meet our set target of generating enough profits from the first six months of operation.

We have been able to examine the hand sanitizers production industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.

Below are the sales projections for Ella Henry™ Hand Sanitizer Production Company, LLC, it is based on the location of our business and other factors as it relates to small and medium scale hand sanitizer production startups in the United States;

  • First Fiscal Year (FY1): $320,000
  • Second Fiscal Year (FY2): $570,000
  • Third Fiscal Year (FY3): $980,000

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 products as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

Before choosing a location to start Ella Henry™ Hand Sanitizer Production Company, LLC and also the kind of hand sanitizers to produce, we conducted a thorough market survey and feasibility studies. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time and also for our products to favorable compete with other leading brands in the United States of America.

We hired experts who have good understanding of the hand sanitizer production industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in North Platte – Nebraska and other cities in the United States of America.

In summary, Ella Henry™ Hand Sanitizer Production Company, LLC will adopt the following sales and marketing approach to sell our hand sanitizers and related products;

  • Introduce our hand sanitizer brand by sending introductory letters to residents, merchants, retailers and other stakeholders in North Platte – Nebraska and other cities both in the United States of America and Canada
  • Open our hand sanitizer production company with a party so as to capture the attention of residents who are our first targets
  • Engage in roadshows in targeted communities from time to time to sell our products
  • Advertise our products in community – based newspapers, local TV and radio stations
  • List our business and products on yellow pages’ ads (local directories)
  • Leverage on the internet to promote our hand sanitizer brands
  • Engage in direct marketing and sales
  • Encourage the use of word of mouth marketing (referrals)

Publicity and Advertising Strategy

Ella Henry™ Hand Sanitizer Production Company, LLC has a long – term plan of distributing our hand sanitizers and related products in various locations all around the United States of America and Canada which is why we will deliberately build our brand to be well accepted first in North Platte – Nebraska before venturing out.

Here are the platforms we intend leveraging on to promote Ella Henry™ Hand Sanitizer Production Company, LLC;

  • 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 hand sanitizer brand
  • Install our Billboards on strategic locations all around major cities in the United States of America
  • Engage in roadshow 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 products 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.

Our Pricing Strategy

We are aware of the pricing trend in the hand sanitizer production industry which is why we have decided to produce various sizes of hand sanitizers.

In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months our products are sold a little bit below the average price in the United States of America. We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our brand.

  • Payment Options

The payment policy adopted by Ella Henry™ Hand Sanitizer Production Company, LLC 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 Ella Henry™ Hand Sanitizer Production Company, LLC will make available to her clients;

In view of the above, we have chosen banking platforms that will enable our clients make payment for their purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

Startup Expenditure (Budget)

Starting a standard hand sanitizer production company is indeed capital – intensive. The bulk of the startup capital will be spent on leasing or acquiring a facility and also in purchasing chemical mixer, vessels, crystalizing machines, burner and conveyor belt system, protective gears, a mini lab and good drainage system. These are the key areas where we will spend our startup capital;

  • The Total Fee for Registering the Business in the United States of America – $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
  • Marketing promotion expenses for the grand opening of Ella Henry™ Hand Sanitizer Production Company, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
  • The cost for hiring Business Consultant – $2,500.
  • The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $135,000.
  • The cost for construction of a standard hand sanitizer production plant – $100,000.
  • Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
  • The cost for Start-up inventory – $80,000
  • The cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • The cost of purchase of distribution vans – $60,000
  • The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, Fax Machines, tables and chairs et al) – $4,000.
  • The cost of launching a website – $600
  • The cost for our opening party – $10,000
  • Miscellaneous – $10,000

We would need an estimate of four hundred and fifty thousand dollars ($450,000) to successfully set up our hand sanitizer production plant in North Platte – Nebraska.

Generating Funds/Startup Capital for Ella Henry™ Hand Sanitizer Production Company, LLC

Ella Henry™ Hand Sanitizer Production Company, LLC is owned and financed by Ella Henry and her immediate family members. They do not intend to welcome any other business partner which is why she has decided to restrict the sourcing of the startup capital to 3 major sources.

  • Generate part of the startup capital from personal savings and sell of stocks
  • Source for soft loans from family members and friends
  • Apply for loan from the Bank

N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $250,000 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 any business lies in the number 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, then it won’t be too long before the business close shop.

One of our major goals of starting Ella Henry™ Hand Sanitizer Production Company, LLC is to build a business that will survive off its own cash flow without 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 hand sanitizers and related products a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

Ella Henry™ Hand Sanitizer Production Company, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken care of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

We know that if this 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