Do you want to start a lubricant company from scratch? Or you need a sample lubricant business plan template? If YES, then i advice you read on.
In the time past especially in the roman era, one of the most commonly used form of lubrication was the water. Water was used to minimize the wear and tear, heat as well as friction between mechanical parts. However, fast forward today and you would have realized that times indeed have changed. There has been the innovation of the lube oil or the lubrication oil.
There are various reasons that are applicable to using the lubrication oil and it must be worthy to note that there are two basic categories of the lubrication oil. There are the mineral and synthetic types. Just what is the difference you might wonder?
Simply put, the mineral oils are refined and gotten from the natural petroleum, whilst the synthetic are produced from polyalphaolefins, and these are hydrocarbon based pologlycols or ester oils.
There has also been an increase in the lubrication oil production sector as it is one business you can readily go into with the hope of making great profit. The various needs of lube oils in homes, organizations, factories and industries just cannot be overemphasized because the populations of people who have a mechanical need for this oil have continued to increase over the years.
This article sure would serve as an eye opener, if peradventure you have got plans to dabble into the production of lubrication oils. So, follow these steps below and you might be on your way to starting your own factory where lubrication oils are manufactured.
Starting a Lubricant Oil Production Company – Sample Business Plan Template
1. Read and Learn
This is the very first step that you must take as a newbie in this industry. This simply put; means that you must be ready and all out to undertake an exhaustive market survey. What does this entail you may think? This means that you would need to browse the internet to read up all that needs to be read about the production of lube oils.
Doing this would only mean that you are able to garner full information on what the production of lubrication oils entail, how you may go about it, the various companies already in the business, as well as other very expedient information that you must not leave behind. You may also consider getting books on this trade.
2. Get Trained
Your next port of call after garnering the theoretical knowledge on how to possibly go about the setting up of your lubrication oil production company would be getting trained. This next vital step for you to take entails that you garner the practical and first hand training on how the production process is done.
You may want to consider enrolling in a technical school where you can get trained on the processes. Also, one other way to readily pull this off would be by getting a degree in any of the science courses like the chemical engineering, chemistry and what have you.
However, if time might not be on your side, one other thing that could be done is by you sitting under the tutelage of an expert who would put you through the process of production. However, you must know that this might have to come with a fee.
3. Decide Which Area to Carve a Niche In
After you have struck of the second step as earlier discussed. Your next bet would be to determine if you would want to deal in the mineral or synthetic type of lubrication oil. Although there may be an avalanche of lube oils to settle for, nonetheless it is worthy to note that Mineral oil is the most commonly applied ones. This is because they are inexpensive and they can be produced in a wide range of viscosities. Therefore, after you might have determined and mastered the type to launch out with then other things may follow.
Now that things are looking up, it would only be a wise decision for you to create a business plan. The need to fly and launch out with a business plan cannot be over flogged as you are able to avoid some major business pitfalls that might set your hands back if you do not follow a set down guideline.
So, in your business plan, be sure to have your goals, your vision, your short term and long term projections spelt out, as well as the financial calculations you may be projecting. As a newbie this might first sound foreign to you, but you may consider outsourcing this to an expert who would be able to help you do a thorough job. The fee you would need to settle the consultant with may vary from location to location.
5. Get Your Business Documented
Now that your plans are looking up, the next step to take would be to get a suitable Business Name for your production company. This means that you would have to come up with about five possible names to start with and thereafter narrow down to two best. If this might be a little difficult for you to come up with, you may consider asking friends or family members to suggest possible names.
Once you have eliminated and arrived at the last two, then you may head to the appropriate authority’s office as it applies in your country for the necessary documentation. There you may be given some forms to complete so as to really describe the nature of your business, as well as how many partners and directors you would be asked to provide.
6. Get a Space
Next up, you would be to ask your realtor to get you an apt site and location for your factory. Note that it would be very important for you to get a location that isn’t in a residential part of the city. The reason is that you would be dealing with harmful chemicals, and it would only be wise for you not to cause environmental pollutions that may endanger the lives of people around. Therefore, you may want to consider locating your manufacturing company in an industrial estate or a location that is meant for industries. Be sure to check well with your realtor so as to arrive at the very best.
7. Procure Your Raw Materials
This step indicates that you must acquire the raw materials needed to get your business started, they include; the cylinder oil, the dibastic esters such as dioctyl sebacate, different types of silicon oil, and polyalkylene glycols, vegetable and marine oils and fats, hydrogenated oils and castor oils.
8. Hire Experts
The production of lubrication oil isn’t a child’s play business. Therefore, you must be ready to spend quite a bit on hiring the best hands to help you start out your business. You would need experienced machine operators, as well as other administrative workers who are capable of driving the vision of the company to the latter. You may consider getting an expert to help in the recruiting process of these employees.
9. Quality Control
It would pay a great deal for you and your team to drive quality control with maximum effort. This is so that what would be produced wouldn’t be substandard. When this is ensured, then you would be sure to attract lots of clients who would be willing to distribute your products. Wholesalers look for places to buy quality stuff and you must make your brand a one stop place.
There you have it! Very solid steps you can take to get your own lubrication oil production company started.