Are you about starting a liquid soap and detergent production company? If YES, here’s a complete sample liquid soap and detergent production business plan template & feasibility report you can use for FREE to get started.
If you are convinced that you have a winning formula for liquid soaps and detergents, then you should consider launching your own production company. This business is still open for investors to come in and compete for the available market in the industry.
A Sample Liquid Soap & Detergent Production Business Plan Template
1. Industry Overview
Businesses in the Soap, Washing Powder and Synthetic Detergent manufacturing industry are involved in the manufacturing of laundry soap, transparent soap, translucent soap, toilet soap, medicated soap, industrial soap, soap flakes, soap powder and synthetic products. Synthetic products include household and industrial detergents used for clothes washing, dish washing etc.
Research conducted by IBIS World shows that in the past five years, the Soap, Washing Powder and Synthetic Detergent manufacturing industry contended with steep competition from foreign-based soap manufacturers. The report also shows that foreign-based manufacturers have inundated the market with low-cost soap products, pressuring demand for domestically manufactured products.
IBISWorld also projected that in the coming years, as per capita disposable income rises, many consumers will slowly shift to relatively high-cost, brand-name soaps and cleaning products. Additionally, downstream markets such as restaurants, will require more cleaning products to comply with regulations and maintain cleanliness in line with the rise in consumer foot traffic.
The Soap, Washing Powder and Synthetic Detergent Manufacturing industry is a thriving sector of the economy of the united states of America and they generate over billion annually from more than 4,251 registered and licensed companies scattered all around the United States of America.
The industry is responsible for the employment of over 41,870 people. Experts project the industry to grow at a – 4.0 percent annual rate. Procter & Gamble and S.C. Johnson & Son Inc. are the leaders in the industry in the United States of America.
Due to the high cost of manufacturing, marketing and distribution of soap, washing powder and synthetic detergent, large corporations dominate the industry and despite the fact that there are big corporations who are into the business, the fact remains that starting a small – scale soap, washing powder and synthetic detergent production business has minimal barriers to entry, with low startup capital.
Most players in the industry are small to medium – size establishments that cater to the local community. Some of the factors that encourage aspiring entrepreneurs to venture into starting a laundry detergent production company is the fact that the is pretty huge and not seasonal.
That 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.
Over and above, the Soap, Washing Powder and Synthetic Detergent 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 you are able to obtain the required chemical handling license.
You can choose to start on a small scale producing limited quantities of laundry detergents or you can choose to start on a large scale producing laundry detergents, soap, washing powder and synthetic detergent with distribution network and several outlets in key cities all around the United States of America.
2. Executive Summary
Clean Deal™ Soap & Detergent Production Company, LLC is a licensed company that will be located in Fort Smith – Arkansas. 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.
The facility has government approval for the kind of production business we want to run and the facility is easily accessible. Clean Deal™ Soap & Detergent Production Company, LLC is in the industry to produce liquid soaps and detergents. We are also in business to make profit and at the same to give our customers value for their money.
We are aware that there are several soap and detergent 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 have mapped out plans to develop a far reaching distribution network for wholesalers of liquid soap and detergent products all around Fort Smith – Arkansas and throughout the United States of America.
Beyond producing quality liquid soaps and detergents, 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 products.
Clean Deal™ Soap & Detergent Production Company, LLC will ensure that all our customers (wholesale distributors) are given first class treatment whenever they visit our factory. We have a CRM software that will enable us manage a one on one relationship with them also.
Clean Deal™ Soap & Detergent Production Company, LLC will be owned by a group of investors led by Terry Jefferson. Mr. Terry Jefferson who is the Chief Executive Officer of the Company is Graduate of Chemical Engineering and he holds a Master’s Degree in Business Management (MBA).
He has a Chemical Handler’s Certificate and over 10 years’ experience working in related industry as a senior manager prior to starting Clean Deal™ Soap & Detergent Production Company, LLC. He will be working with a team of professionals to build the business.
3. Our Products and Services
Clean Deal™ Soap & Detergent Production Company, LLC is going to run a standard soap and detergent production company whose products will not only be sold in Fort Smith – Arkansas but also throughout the United States of America.
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;
- Producing liquid soap and detergents
4. Our Mission and Vision Statement
- Our vision is to establish a standard liquid soap and detergent production Company whose products will be not only be sold in Fort Smith – Arkansas, but also throughout the United States of America.
- Our mission is to establish a world class liquid soap and detergent production brand that will favorably compete with leaders in the industry.
- We want to build a business that will be listed amongst the top 20 brands in the United States of America.
Our Business Structure
Clean Deal™ Soap & Detergent Production Company is established to compete with other leading liquid soap and detergent product brands in the industry. This is why we will put the right structure in place that will support the kind of growth that we have in mind for 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 stakeholders.
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 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
5. 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 and developing incentives
- 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.
- Responsible for overseeing the smooth running of the production plant
- Maps out strategy that will lead to efficiency amongst workers in the plant
- Responsible for training, evaluation and assessment of plant workers
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Ensures the steady flow of raw chemicals to the plant and easy flow of finished products through wholesale distributors to the market
- Ensures that the plant meets the expected safety and health standards 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.
- Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Responsible for the purchase of chemicals and packaging materials
- Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
Sales and Marketing Manager
- 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
- Develops, executes and evaluates new plans for expanding sales
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
- 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
Production Workers/Machine Operators:
- Operates the chemical mixer, vessels, crystalizing machines, burner and conveyor belt system et al.
- Assists in packaging and loading liquid soap and detergent products into distribution trucks
Distribution Truck Drivers
- Assists in loading and unloading liquid soap and detergent 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.
- Local-delivery drivers may be required to sell products or services to stores and businesses on their route
- Inspects vehicles for mechanical 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
6. SWOT Analysis
There are several liquid soap and detergent manufacturing companies 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 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.
Clean Deal™ Soap & Detergent 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 Clean Deal™ Soap & Detergent Production Company, LLC;
Part of what is going to count as positives for Clean Deal™ Soap & Detergent Production Company is the vast experience of our management team, we have people on board who are highly experienced on how to grow a business.
So also our closeness to leading cleaning chemical production companies, large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.
A major weakness that may count against us is the fact that we are a new liquid soap and detergent 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 Procter & Gamble and S.C. Johnson & Son Inc.et al are already determining the direction of the market.
The opportunities available to liquid soap and detergent products manufacturing companies are enormous because almost all Americans make use of liquid soap and detergent when washing. As a result of that, we to position our business to take advantage of the existing market to create our own new market. We know that it is going to requires hard work, and we are determined to achieve it.
One of the major threats that we are likely going to face is economic downturn and unfavorable government policies. Another threat that may likely confront us is the arrival of a new production company in same location where ours is located.
7. MARKET ANALYSIS
- Market Trends
If you are conversant with trends in the industry, you will quite agree that despite the fact that there are competitions in different stages of the industry, most liquid soaps and detergents production company are leveraging on creativity in terms of packaging and marketing to continue to stay afloat.
Lastly, our liquid soap and detergent company will adopt eco – friendly approach towards the production and packaging of its products. As a matter of fact, the adoption of eco-friendly practices will likely persuade environmentally conscious consumers to buy its products.
8. Our Target Market
When it comes to selling liquid soap and detergent, there is indeed a wide range of available customers. We are in business to engage in wholesale distribution and to retail our liquid soap and detergent to the following groups of people;
- Commercial cleaning companies
- Laundries and Laundromats
- Everybody in our target market location
Our competitive advantage
A quick of the industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the competition and we are prepared to compete favorably with other liquid soap and detergent production companies in Fort Smith – Arkansas.
Part of what is going to count as competitive advantage for us is the vast experience of our management team. So also closeness to some of the largest cleaning chemical manufacturing plants, our large and far reaching national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.
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.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Clean Deal™ Soap & Detergent Production Company, LLC is established with the aim of maximizing profits in the industry and we are going to ensure that we do all it takes to sell our liquid soap and detergent to a wide range of customers.
10. Sales Forecast
When it comes to liquid soap and detergent 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 Fort Smith – Arkansas and every city where our liquid soap and detergent 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 soap, washing powder and synthetic detergents production 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 Clean Deal™ Soap & Detergent Production Company, LLC. It is based on the location of our business and other factors that relate to medium scale startups in the United States;
- First Fiscal Year: $320,000
- Second Fiscal Year: $570,000
- Third Fiscal Year: $980,000
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 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.
- Marketing Strategy and Sales Strategy
Before choosing a location to start Clean Deal™ Soap & Detergent Production Company, LLC and also the kind of liquid soap and detergent products to produce, we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market in our target market location.
We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want 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 soap, washing powder and synthetic detergents production industry to help us develop marketing strategies that will help us win a larger percentage of the available market in Fort Smith – Arkansas and other cities in the United States of America.
In summary, Clean Deal™ Soap & Detergent Production Company, LLC will adopt the following sales and marketing approach to sell our liquid soap and detergent;
- Introduce our liquid soap and detergent brand by sending introductory letters to residents, merchants, retailers and other stakeholders in Fort Smith – Arkansas and other cities both in the United States of America
- 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 liquid soap and detergent brand
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
11. Publicity and Advertising Strategy
Clean Deal™ Soap & Detergent Production Company has a long term plan of distributing our liquid soap and detergent in various locations all around the United States of America which is why we will deliberately build our brand to be well accepted first in Fort Smith – Arkansas before venturing out.
Here are the platforms we intend leveraging on to promote and advertise Clean Deal™ Soap & Detergent 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 liquid soap and detergent brand
- Install our billboards in strategic locations all around major cities in the United States of America
- Engage in roadshows 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.
12. Our Pricing Strategy
We are aware of the pricing trend in the liquid soap and detergent production industry which is why we have decided to produce various sizes of liquid soap and detergent.
Our prices will conform to what is obtainable in the industry but we will ensure that within the first 6 to 12 months our products are sold a little bit below the average price. 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 Clean Deal™ Soap & Detergent 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 Clean Deal™ Soap & Detergent Production Company, LLC will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards / Point of Sale Machines (POS Machines)
- 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 clients make payment without any stress on their part.
13. Startup Expenditure (Budget)
Starting a standard liquid soap and detergent production company is indeed capital intensive because the amount required here is quite huge.
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 Clean Deal™ Soap & Detergent 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 liquid soap and detergent 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
- Miscellaneous – $10,000
We would need an estimate of $500,000 to successfully set up our liquid soap and detergent production plant in Fort Smith – Arkansas.
Generating Startup Capital for Clean Deal™ Soap & Detergent Production Company, LLC
Clean Deal™ Soap & Detergent Production Company, LLC is a family business that is owned and financed by Terry Jefferson and other business partners. They do not intend to welcome any other business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.
These are the areas we intend generating our startup capital;
- 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 $300,000 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.
14. Sustainability and Expansion Strategy
The future of any business lies in the number of loyal customers they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business closes shop.
One of our major goals of starting Clean Deal™ Soap & Detergent Production Company, LLC is to build a business that will survive off its own cash flow without the need for 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 liquid soaps and detergents a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Clean Deal™ Soap & Detergent 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 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.
- 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 construction of standard liquid soap and detergent production plant: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members and friends: 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 Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed 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
- Establishing business relationship with vendors – wholesalers, chemicals production companies, suppliers and merchants: In Progress