Do you want to start a latex gloves production company? If YES, here is a sample latex gloves manufacturing business plan template & FREE feasibility report.

Latex gloves are part of the medical supplies that are used in hospitals, labs, medical facilities, chemical production companies, offices and in homes all around the world. Those that are in the business of producing latex gloves are known to generate sales year in year out if the business is well – managed.

As a matter of fact, economic downturn hardly affects the usage of latex gloves because it is a commodity that plays a major role in the health sector. Below is a sample latex gloves manufacturing business plan template that will help you write yours with little effort;

A Sample Latex Gloves Manufacturing Business Plan Template

Industry Overview

Latex gloves are disposable gloves used during medical examinations and procedures to help prevent cross-contamination between caregivers and patients; a sterile glove worn to prevent contamination of the patient during invasive procedures and to protect the hand from exposure to potentially infectious materials.

Surgical gloves are made of different polymers including latex, nitrile rubber, polyvinyl chloride and neoprene. They come un – powdered, or powdered with cornstarch to lubricate the gloves, making them easier to put on the hands.

The first recorded use of latex gloves was in 1883 by William Stewart Halsted at Johns Hopkins hospital in Baltimore, Maryland, United States. To protect his nurse’s hands he asked the Goodyear Tire and Rubber Company if they could make a rubber glove that could cope with being dipped in carbolic acid.

Latex gloves (surgical gloves) are usually sized more precisely since they are worn for a much longer period of time and require exceptional dexterity. The sizing of surgical gloves is based on the measured length across the palm in inches, at a level slightly above the thumb’s sewn.

Some of the leading players in the latex gloves manufacturing industry are from the United States of America, although some of these companies outsource the production of their surgical gloves to other parts of the world; predominantly countries in Asia just in the bid to cut cost.

Some of the factors that encourages entrepreneurs to start their own latex gloves manufacturing company could be that the business is thriving and the products can be sold not just in your country but across the globe.

The latex gloves manufacturing industry is growing and there are opportunities for entrepreneurs to launch their own latex gloves manufacturing business from the scratch and still become a globally recognized brand. The advent of computer and computer software brought leverage in the industry. Designing latex gloves can be conveniently done with the aid of software.

Executive Summary

Cosby Johnson® Latex Gloves Manufacturing, Inc. is a standard and registered latex gloves manufacturing business that will be located in one of the industrial estates in East Rutherford – New Jersey, United States of America. We have been able to lease a facility that is big enough to fit into the kind of standard latex gloves manufacturing company that we intend launching.

Cosby Johnson® Latex Gloves Manufacturing, Inc. will manufacture two main types of medical gloves (examination gloves and surgical gloves). Our surgical gloves have more precise sizing with a better precision and sensitivity and are made to a higher standard. Our examination gloves are available as either sterile or non-sterile, while surgical gloves are generally sterile.

We are aware that there are several latex gloves manufacturing companies, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to favorably compete with all our competitors.

We will ensure that we continuously improve our products so as to suit the ever – changing trends in the healthcare industry. Cosby Johnson® Latex Gloves Manufacturing, Inc. will ensure that all our customers are given first class treatment whenever they purchase any of our products.

We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they may grow to. We will ensure that we get our customers involved in our product conception and also when making some business decisions.

Cosby Johnson® Latex Gloves Manufacturing, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products. Cosby Johnson® Latex Gloves Manufacturing, Inc. is owned by Engr. Cosby Johnson. Engr.

Cosby Johnson has a B.Eng. in Production Engineering, with over 15 years’ experience in the latex gloves manufacturing industry working for some of the leading brands in the United States. Although the business is launching out with just one outlet in East Rutherford – New Jersey, but we will ensure that we market and distribute our products all across the United States of America and other countries of the world.

Our Product Offering

Cosby Johnson® Latex Gloves Manufacturing, Inc. is in the latex gloves manufacturing industry to sell our products to a wide range of clients and of course to make profits, which is why we will design, develop and manufacture various types of latex gloves.

Our product offerings are listed below;

  • Examination latex gloves
  • Surgical latex gloves

Our Mission and Vision Statement

Our vision is to become one of the leading brands in the latex gloves manufacturing industry in the United States of America and Canada.

Our mission is to establish a world – class latex gloves manufacturing company that will manufacture world acceptable latex gloves and build a brand that will become household name not just in the United States of America, but also other parts of the world.

  • Our Business Structure

Cosby Johnson® Latex Gloves Manufacturing, Inc. knows the standards expected from companies that are into the manufacturing of latex gloves, hence the need for us to conform to industrial best practices. We will ensure that we hire people that are qualified, honest, 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. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

  • Chief Executive Officer (Owner)
  • Production Manager
  • Human Resources and Admin Manager
  • Engineers (Production Engineers)
  • Sales and Marketing Manager
  • Accountants/Cashiers
  • Customer Services Executive

Job Roles and Responsibilities

Chief Executive Officer – CEO:

  • 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
  • Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Reports to the board

Admin and HR Manager

  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Defining job positions for recruitment and managing interviewing process
  • Carrying out staff induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Oversee the smooth running of the daily office activities.

Production Manager:

  • In charge of approving designs for the organizations
  • Responsible for managing the daily activities in the production facility
  • Ensure that the production facility is in tip top shape and goods are properly arranged and easy to locate
  • Interfaces with third – party suppliers (vendors)
  • Control latex gloves manufacturing, distribution and supply chain inventory
  • Supervise the workforce in the production facility.

Sales and Marketing Manager

  • Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
  • Model demographic information and analyze the volumes of transactional data generated by customer purchases
  • Identify, prioritize, and reach out to new partners, and business opportunities et al
  • Identifies development opportunities; follows up on development leads and contacts
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Document 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
  • 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

Latex Gloves Production Engineers

  • Responsible for designing, fabricating, developing and manufacturing a variety of latex gloves
  • Responsible for maintenance of equipment and instruments in the production plant.

Client Service Executive

  • 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 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 human resources and admin manager in an effective and timely manner
  • Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries

SWOT Analysis

Cosby Johnson® Latex Gloves Manufacturing, Inc. is in business to become one of the leading latex gloves manufacturing companies in the United States of America and we are fully aware that it will take the right business concept, management and organizational structure to achieve our goal.

We are quite aware that there are several latex gloves manufacturing companies all over the United States of America and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

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.

Cosby Johnson® Latex Gloves Manufacturing, Inc. employed the services of an expert HR and Business Analyst with bias in manufacturing 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 Cosby Johnson® Latex Gloves Manufacturing, Inc.;

  • Strength:

Our core strength lies in the high quality of our finished latex gloves, the power of our team and the state of the art production plant that we own. We have a team of highly trained and experienced engineers that can produce top notch latex gloves. We are well positioned in the heart of East Rutherford – New Jersey and we know we will attract loads of clients from the first day we open for business.

  • Weakness:

A major weakness that may count against us is the fact that we are a new latex gloves manufacturing company and we don’t have the financial capacity to compete with multi – million dollar companies when it comes to manufacturing and selling latex gloves at rock bottom prices. So also, we may not have enough cash reserve to promote our brand the way we would want to do.

  • Opportunities:

The fact that we are going to be operating our latex gloves manufacturing company in East Rutherford – New Jersey provides us with unlimited opportunities to sell our products to a large number of hospitals, pharmaceutical stores and health facilities.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our show room and production plant; we are well positioned to take on the opportunities that will come our way.

  • Threat:

Bad publicity about the use of latex gloves is a major threat to our business. Public Citizen wants the FDA and hospitals to ban use of latex gloves in healthcare settings. According to the advocacy group Public Citizen, medical gloves that are made of natural rubber latex or have cornstarch powder are harmful for hospital workers and patients and should be banned from healthcare settings. This is indeed the major threat that will confront our business.

MARKET ANALYSIS

  • Market Trends

A latest trend shows that due to the increasing rate of latex allergy among health professionals, and in the general population, gloves made of non-latex materials such as polyvinyl chloride, nitrile rubber, or neoprene have become widely used.

Chemical processes may be employed to reduce the amount of antigenic protein in Hevea latex, resulting in alternative natural-rubber-based materials such Vytex Natural Rubber Latex. However, non-latex gloves have not yet replaced latex gloves in surgical procedures, as gloves made of alternative materials generally do not fully match the fine control or greater sensitivity to touch available with latex surgical gloves.

If you keep tabs with happening in the latex gloves manufacturers industry, you will agree that technological advances, the legislative expansion of healthcare access and the improving economy have stimulated demand for latex gloves over the last five years, and the aging US population has further contributed to revenue growth, due to the high incidence of health issues.

So also, technological advances, expansion of healthcare and the improving economy have stimulated demand. Industry operators often have the weak hand in price negotiations and recent healthcare legislation has created a degree of uncertainty for latex gloves manufacturing companies.

Because of the bad publicity when it comes to the use of latex gloves, people have started looking for alternatives. However, fully artificial polyisoprene—rather than “hypoallergenic” cleaned natural latex rubber—is also the most expensive natural latex substitute available.

Other high-grade non-latex gloves, such as nitrile gloves, can cost over twice the price of their latex counterparts, a fact that has often prevented switching to these alternative materials in cost-sensitive environments, such as many hospitals. Nitrile is a synthetic rubber. It has no latex protein content and is more resistant to tearing.

Also, it is very resistant to many chemicals and is very safe for people who are allergic to latex protein. Nitrile gloves are the most durable type of disposable gloves. Although nitrile gloves are known for their durability, extra care should be taken while handling silver and other highly reactive metals because those substances can react with sulfur, an accelerant in nitrile gloves.

Our Target Market

We have positioned our latex gloves manufacturing company to service businesses in the healthcare industry in and around East Rutherford – New Jersey and every other location where our distribution teams will be located. We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us.

We are in business to design, develop and manufacture a wide range of latex gloves for the following customers;

  • Pharmaceutical stores
  • Hospitals
  • Medical laboratories
  • Medical colleges
  • Dental clinics
  • Optical centers
  • Chemical labs
  • Nursing homes
  • Creches

Our Competitive Advantage

Cosby Johnson® Latex Gloves Manufacturing, Inc. is launching a standard latex gloves manufacturing company that will indeed become the preferred choice for hospitals and other healthcare facilities in the United States of America.

We will ensure that we work with some of our high – profile clients in designing, developing and manufacturing of customized latex gloves that suit their businesses.

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

Cosby Johnson® Latex Gloves Manufacturing, Inc. is in business to design, develop and manufacture a wide range of latex gloves. We are in the industry to maximize profits and we are going to go all the way out to ensure that we achieve our business goals and objectives.

Cosby Johnson® Latex Gloves Manufacturing, Inc. will generate income by selling the following products;

  • Examination latex gloves
  • Surgical latex gloves

Sales Forecast

We are set to go into the designing, developing and manufacturing of various types of latex gloves and we have put plans in in place that will help us always attract customers cum sales.

We are well positioned to take on the available market in the United States of America and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six month of operation and grow the business and our clientele base.

We have been able to examine the latex gloves manufacturing industry, 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 Cosby Johnson® Latex Gloves Manufacturing, Inc. it is based on the location of our business and other factors as it relates to latex gloves manufacturing companies startups in the United States;

  • First Fiscal Year (FY1): $350,000
  • Second Fiscal Year (FY2): $550,000
  • Third Fiscal Year (FY3): $1.2 Million

N.B: This projection was 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 manufacturing same latex gloves as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

Before choosing a location for Cosby Johnson® Latex Gloves Manufacturing, Inc. we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market and become the preferred choice for hospitals, pharmaceutical stores and healthcare facilities in and around East Rutherford – New Jersey.

We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time and the number of products to be sold monthly.

We hired experts who have good understanding of the latex gloves manufacturing 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 the United States of America.

In summary, Cosby Johnson® Latex Gloves Manufacturing, Inc. will adopt the following sales and marketing approach to win customers over;

  • Introduce our business by sending introductory letters alongside our brochure to hospitals, pharmaceutical stores, dental clinics, optical centers, medical laboratories and key stake holders in the United States of America
  • Ensure that we design, develop and manufacture a wide range of latex gloves needed in the healthcare sector.
  • Make use of attractive hand bills to create awareness and also to give direction to our show rooms
  • Position our signage / flexi banners at strategic places around East Rutherford – New Jersey
  • Create a loyalty plan that will enable us reward our regular customers
  • List our business and products on yellow pages ad (local directories)
  • Leverage on the internet to promote our business
  • Engage in direct marketing and sales
  • Encourage the use of Word of mouth marketing (referrals)
  • Join local chambers of commerce and industries to network and market our products

Publicity and Advertising Strategy

Despite the fact that our latex gloves manufacturing plant is well located, we will still go ahead to intensify publicity for the business.

Cosby Johnson® Latex Gloves Manufacturing, Inc. has a long-term plan of exporting our latex gloves to other countries of the world, which is why we will deliberately build our brand to be well accepted in East Rutherford – New Jersey before venturing out.

Here are the platforms we intend leveraging on to promote and advertise Cosby Johnson® Latex Gloves Manufacturing, Inc.;

  • Place adverts on community based newspapers, radio  and TV stations.
  • Encourage the use of word of mouth publicity from our loyal customers
  • Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
  • Ensure that our we position our banners and billboards in strategic positions all around East Rutherford – New Jersey
  • Distribute our fliers and handbills in target areas in and around our neighborhood
  • Advertise our latex gloves in our official website and employ strategies that will help us pull traffic to the site
  • Brand all our official cars and vans and ensure that all our staff members and management staff wear our branded shirt or cap at regular intervals.

Our Pricing Strategy

We are aware of the pricing trend in the latex gloves manufacturing industry which is why we have decided to produce various sizes (packs) of latex gloves (examination gloves and surgical gloves).

In view of that, our prices will conform to what is obtainable in the latex gloves manufacturing 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 latex gloves brand.

  • Payment Options

The payment policy adopted by Cosby Johnson® Latex Gloves Manufacturing, Inc. 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 Cosby Johnson® Latex Gloves Manufacturing, Inc. will make available to her clients;

  • Payment via bank transfer
  • Payment with cash
  • Payment via credit cards
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for all purchases without any stress on their part.

Startup Expenditure (Budget)

Starting a standard latex gloves manufacturing company is indeed a capital-intensive business because the amount required to set up a plant is relatively on the high side when compared to similar business. The bulk of the startup capital will be sent on leasing or acquiring a facility and also in purchasing of equipment and machines and raw materials.

Aside from that, you are also expected to purchase and service your distribution trucks, pay your employees and utility bills. 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) – $3,300.
  • Marketing promotion expenses for the grand opening of Cosby Johnson® Latex Gloves Manufacturing, Inc. 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 total cost for hiring Business Consultant – $2,500.
  • The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400.
  • The total cost for long – term leasing of a standard warehouse and showroom – $250,000
  • The total cost for remodeling the production facility and showroom – $20,000.
  • 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) – $60,000
  • The total cost for Start-up inventory (purchase of production machines and equipment and the purchase of raw materials inclusive) – $250,000
  • The total cost for counter area equipment – $9,500
  • The total cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • The total cost for the purchase and installation of CCTVs – $10,000
  • The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
  • The total cost of launching a Website – $600
  • Miscellaneous – $10,000

We would need an estimate of five hundred and fifty thousand dollars ($550,000) to successfully set up our latex gloves manufacturing company in East Rutherford – New Jersey.

Generating Funds/Startup Capital for Cosby Johnson® Latex Gloves Manufacturing, Inc.

Cosby Johnson® Latex Gloves Manufacturing, Inc. is a private registered business that is solely owned and financed by Engr. Cosby Johnson and his 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 startup capital to 3 major sources.

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

N.B: We have been able to generate about $150,000 (Personal savings $100,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $400,000 from our bank. All the papers and documents 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

Part of the plans we have in place to sustain Cosby Johnson® Latex Gloves Manufacturing, Inc. is to ensure that we continue to make available different sizes of high – quality latex gloves, deliver quality services, improvise on how to do things faster and cheaper. We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times.

We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better and the products they want to see in our store.

We will not waste time in adopting new technology, best practices and diversifying our services. Cosby Johnson® Latex Gloves Manufacturing, Inc. 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 retraining of our workforce is at the top burner. 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

  • Business Name Availability Check: Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Point of Sales (POS) Machines: Completed
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Leasing of facility and remodeling the production plant: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from family members: Completed
  • Applications for Loan from the bank: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Printing of Packaging and Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Purchase of the needed production equipment and machines, tools, furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business both online and around the community: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Compilation of our list of products that will be producing: Completed
  • Establishing business relationship with vendors – suppliers of latex gloves (examination gloves and surgical gloves): In Progress
Joy Nwokoro