Start-up Funding | |
Start-up Expenses to Fund | $123,300 |
Start-up Assets to Fund | $126,700 |
Total Funding Required | $250,000 |
Assets | |
Non-cash Assets from Start-up | $50,000 |
Cash Requirements from Start-up | $76,700 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $76,700 |
Total Assets | $126,700 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $0 |
Long-term Liabilities | $0 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $0 |
Capital | |
Planned Investment | |
Devon Nevius | $100,000 |
Kevin Meinert | $75,000 |
Other Investor(s) | $75,000 |
Additional Investment Requirement | $0 |
Total Planned Investment | $250,000 |
Loss at Start-up (Start-up Expenses) | ($123,300) |
Total Capital | $126,700 |
Total Capital and Liabilities | $126,700 |
Total Funding | $250,000 |
The management team of SAFEassure, LLC will initially use a residential apartment in Portland to run operations. In Year 2, we will move to a rented office. Distribution will remain outsourced.
SAFEassure’s product line provides a unique control level to managers, supervisors and parents alike. We have two basic product lines: CHILDassure, intended for day care facilities, and an antimicrobial-based product for hospitals (HEALTHassure) and restaurants (FOODassure) – the antibacterial products are not yet in development. The various product lines, competitors and future product possibilities for SAFEassure, LLC will be outlined in the following section.
In order to sell our product while creating familiarity and a positive brand image, it will be necessary to develop brochures and literature to emphasize the safety and beneficial attributes of fading dye soap, many of which may not be readily apparent to an interested party. These will be delivered both in person during a sales presentation and by direct mail.
The key to our success is the time-sensitive dye. Once the proper ratio of dye to base soap is isolated, the fragmented nature of the soap industry provides many options for outsourcing production. Similar to any commodity, economies of scale require the soap to be produced, packaged and distributed in large batches. Initially, the soap base will be purchased in quantities of at least 38,000 gallons for approximately $50,000. Once the relationship with the manufacturer is established, our subsequent purchases will be approximately for $20,000. These inventory amounts should be sufficient to for SAFEassure, LLC to meet the customer demand. Utilizing his production and distribution knowledge, Rick Brown will use existing established relationships in the industry to help us mix, package and distribute the product line.
The technology of our fading dyes will be pivotal in the success of our company. The interactions between fading dyes and antibacterial or anti-microbial bases suitable for use in restaurants or hospitals are more complicated than the interactions with the glycerin or lotion soaps utilized in the CHILDassure line. As soon as cash flow permits, projected to be in 2008, SAFEassure, LLC will employ a professional chemist with experience developing dye products to further the research into technological innovations that may produce antibacterial and anti-microbial versions of the soap to address additional markets.
Additional soap products, manufactured to comply with regulatory minimums for strength and effectiveness in their respective target markets will be developed to address restaurants and hospitals. These soaps will be trade marked under the names FOODassure and HEALTHassure, respectively.
Perhaps the most promising future market opportunity for fading dye soap is the retail market. This product line will include soaps using the same or similar dye colors as the day care to encourage children to wash their hands more often at home. This will be a top priority when the company develops the financial resources enough to mount a national advertising campaign and distribution system. A complete line of fading dye products could potentially be developed, including floor, counter and body cleaning products that use fading dyes to indicate places on a surface that may not have been cleaned.
There is tremendous potential for a product that provides supervisors and parents with the control to monitor and encourage hand washing. Considering the large scope of our potential markets, we feel it is imperative to focus our limited resources on a particular geographic region where we can establish demand for our product. After successful market penetration, we will begin implementation into the restaurant and hospital markets.
SAFEassure’s first product line addresses the day care market. CHILDassure will first be introduced in the Portland, OR area, before sequential expansion to additional day care markets. There are currently 516 day care facilities in the Portland Metro area. After successful implementation in Portland, we will begin expansion into the greater Northwest. There are 3,414 day care facilities in the greater Northwest.
Successful penetration into the day care market will be followed by implementation into the restaurant and hospital markets. There are currently 19,362 restaurants in the Northwest, followed by health care services, which includes 23,108 organizations in the Northwest.
The Industrial and Institutional soap industry, of which we are a part, is quite fragmented, but contains several well known main competitors: Gojo, Kimberley Clark, Dial, Provon, and SoftSoap, as well as generic brands that provide to distributors like Massco and Sysco. The industry is stable and growing; between 1998 and 2003 it grew by an average of 4% annually. Within the I&I sector there is fierce competition for market share among the existing popular soap offerings, leading to lean profits on soap sales.
Distribution in the soap industry is provided by regional providers. These distribution companies usually serve a large portion of the market based on the respective size of the market, delivering to the organizations monthly or bi-monthly depending on demand and usage patterns. Food services typically receive deliveries of cleaning products once a month. Hospitals typically have a distribution system that operates on monthly deliveries of large quantities. Restaurants typically have a weekly delivery schedule.
Commercial customers select soap based on the necessary minimum safety regulations for the intended user; restaurant and hospital regulations require anti-bacterial/microbial. Customers will typically select a product based on price, distributor availability, and convenience. Distributors will deliver a complete order of cleaning and maintenance products to customers. Major competitors sell to a variety of customers, including distributors like Sysco, who receive generic soap from bulk producers, then repackage and deliver it along with other products it sells, utilizing the same distribution systems.
Traditional soap producers Soap is a common and familiar the commodity of necessity to every company. Traditional soaps employ pleasant scents and dyes to encourage hand washing compliance. However there is no way to verify if hand washing has occurred and traditional soaps do little beyond the pleasant scents to encourage hand washing.
The largest current soap producer, Dial Corp, consistently achieves strong sales, and has enjoyed strong market share in the commercial markets. Producing a wide variety of soap products, Dial has maintained 18% in market share over the last decade. The other largest commercial soap providers include Kimberly Clark, Gojo, SoftSoap, Provon and NXT.
This system has limited value to business managers because they are expensive to install and lease, and do not necessarily increase employee compliance. They provide managers the ability to track usage, but do not help control day-to-day hand washing compliance individually or immediately.
Disposable Gloves Hypo-allergenic gloves are the solution provided by some organizations to combat the threat of hand washing non-compliance. To limit the risk of hand contamination, many restaurants and all hospitals require the use of gloves. Although gloves eliminate the risk of direct hand contamination they are not without downfalls:
The soap industry is highly fragmented. There are more than forty different Institutional soap products that compete in the market.
Our initial day care market will consist of medium to large day care organizations, consisting of twenty or more children. Organizations such as Kindercare and La Petite Academy represent very attractive opportunities for our products. Organizations of this type are attractive because they are well managed, successful, health conscious and nationwide. Within these organizations we will target decision level managers with the power to implement use of our product in those locations.
According to a study published in the medical journal, Infectious Diseases in Children, researchers in hand washing recovered fecal coliforms from the hands of one out of every five staff members, citing that more than 33% of day care facilities “had poor hand washing techniques and no policy for hand washing before eating or after playing outside. In spite of all the studies about the benefits of hand washing, improper or infrequent hand washing continues to be a major factor in the spread of disease in day-cares.” (http://www.ehs.wustl.edu/Topic/top500.htm)
Hand washing in child care facilities is an ideal initial target market for several additional reasons:
In a study cited by Family Practice News in 1996, “Scientists had kids wash their hands when they arrived at school, before lunch then again after lunch time, recess and one more time before heading home every single day.” As a result of these ‘scheduled’ wash times, researchers found that “a month later, these kids had 24 percent fewer days off from colds, sniffles and flus and a whopping 51 percent fewer sick days because of gastrointestinal complaints like stomach cramps or diarrhea.” (http://www.healthcentral.com/drdean/deanfulltexttopics.cfm?id=15538)
With nearly 12 million children in child care facilities across the nation there is a clear need for CHILDassure, our first product, that can both encourage and help monitor child and employee hand washing to ensure a safe, clean environment for children. Additional future target markets also have significant need for fading dye products:
There has been a recent effort by the Food and Drug Association, the Center for Disease Control, the National Restaurant Organization, and others to promote education to increase hand washing compliance in target markets. The focus of these programs is to educate and encourage preventative control measures for children and workers to help reduce diseases and lawsuits. This has led to greater awareness in our target markets about maximizing cleanliness and minimizing preventable illness.
There is an additional trend in both our target markets and industry towards organic based soaps. Organic products have become increasingly associated with safety and health in a variety of different markets. Our completely organic soap is complementary to this growing market trend.
The demand for child day care services will continue to grow. As the labor force participation of women between the ages of 16 and 44 remains high, parents of preschool and school-age children are expected to seek more day care arrangements. As parents continue to work during weekends, evenings, and late nights, the demand will grow significantly for child day care programs that can provide care during nontraditional hours. School-age children, who generally require child day care only before and after school, increasingly are being cared for in child care centers. (U.S. Department of Labor, www.bls.gov/oco/cg/cgs032.htm )
The key element in SAFEassure’s initial strategy is to sell the fading dye soap in Portland’s day care facilities. Our executive team will build loyalty for our products with decision-level managers of the organizations in the target markets, and create awareness and support of the benefits of the innovative fading dye attributes of our soap.
Our ultimate strategy is to build SAFEassure’s products into the standard for home and workplace hand washing safety and cleanliness, first regionally and eventually nationally. Our tactics to increase compliance through the use of our product include continual and progressive expansion into new markets and a strong branding campaign in coordination with promotional contracts with the government and possibly insurance companies.
Marketing strategy.
For our initial target market of day care facilities, the company will implement two parallel marketing efforts, aimed respectively at day care facility decision makers, and the parents of young children who use these facilities. We will create a push factor by effectively convincing the decision-level managers within the organizations that our product provides an ideal solution to the hand washing compliance. A “first to mind” branding campaign will build CHILDassure as the leader in increasing hand washing compliance. Significant parental support will encourage organizations to implement CHILDassure in environments involving their children.
CHILDassure is valuable to day care managers who need effective control solutions to ensure frequent child and child-care worker hand washing to keep the environment clean and to minimize preventable illness. No other product on the market serves the hand washing compliance aspect of workplace safety with such an affordable, direct and complete solution. Unlike traditional soaps, our product provides conclusive evidence every time an employee washes his or her hands for only a marginally higher cost than traditional soaps, and significantly less than gloves or other hand washing compliance systems.
Retail pricing for CHILDassure will generally be around $90/case for four gallons and will command a 25-30% price premium over conventional liquid soaps. The value of our product will not be attractive to extremely price sensitive customers. The market for soap is generally inelastic, but our product offers significant differentiating benefits over current soaps that justify the price difference.
One of the most important aspects of a successful launch is positive publicity for our product. We will develop an awareness campaign to promote our product through several avenues. Our management team will fiercely pursue positive public perception through government endorsements promoting the benefits of our products. We will also attempt to capitalize on the novelty of the solutions provided by our product by actively seeking local news and media coverage to help spread awareness. Buzz will be developed in social hubs by distributing samples to parties with potential interest. Parental support of the product will be garnered through free trials, demonstrations, and direct mailings to the day care parent roster lists, parent groups and PTA’s.
At washing stations in client facilities we will spread awareness with stickers targeted towards children, showing them the process of washing to turn their hands different colors and emphasizing how fun it can be. Pamphlets will be sent to the family homes through the day care roster mailing lists, to calm fears regarding a new product in their child’s environment, explain the benefits and encourage the parents to respond and build feedback for the benefits of the product to further increase implementation.
Some of the government programs of interest are the various compliance and workplace hygiene programs supported and funded by the Center for Disease Control (CDC), the Food and Drug Administration (FDA) and the National Center for Disease Control (NDIC). Programs such as the Health Protection Research Initiative implemented by the CDC demonstrate an invested interest by government programs in increasing the overall health of Americans.
Our initial distribution strategy will involve a combination of distributor and direct sales. Relationships with local Northwest distributors will be established to increase promotional reach and potential users. The first orders will be available immediately through direct delivery by our executive team. Outsourcing distribution entirely in the future will allow SAFEassure, LLC to focus its efforts on marketing and expanding as quickly as possible.
Distributors will pay for the inventory up-front, and although this cuts our profit margins it helps SAFEassure, LLC to maintain a more flexible structure. By the start of 2007, distribution will be entirely outsourced to distribution companies, and direct deliveries from the executive team will cease.
Our most important marketing program is our branding program, aimed initially at regional chain and franchise managers. This program is intended to penetrate the target markets, and establish SAFEassure’s products as the soap of choice. Achievement should be measured against our projected 45% monthly sales growth rate for the first year.
Emphasizing the risks associated with hand washing non-compliance, our marketing program will employ the fear of disease, costs of illness and government regulations extensively. Written materials will convey urgency, connect users to the underlying problem and suggest SAFEassure’s products as the optimal solution to the problem.<
Sales strategy will initially address local and regional managers with ordering authority for the establishments in that area. The prospective clients will be supplied with a professional product information packet and moved into the sales funnel to begin closing prospect, followed up with a direct mail brochure and a phone call.
There will be no initial direct compensation or commission for closed sales. Proceeds from sales will be invested back into developing and expanding the business. As the company begins to increase its initial sales force, commission-based incentive programs will be implemented.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
CHILDassure soap (day care) | $237,168 | $450,620 | $856,177 |
HEALTHassure/FOODassure | $0 | $0 | $0 |
Total Sales | $237,168 | $450,620 | $856,177 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
CHILDassure soap (day care) | $94,867 | $178,351 | $321,031 |
HEALTHassure/FOODassure | $0 | $0 | $0 |
Subtotal Direct Cost of Sales | $94,867 | $178,351 | $321,031 |
SAFEassure, LLC will initially encourage critical strategic alliances in two distinct areas:
Distributors
The relationship between SAFEassure, LLC and the product distributors will be essential. A flexible distribution system will be critical to the success and growth of our product. Good distribution will allow our product to satisfy and flexibly expand to accommodate demand.
The Government
By teaming up with government organizations, SAFEassure, LLC will be able to utilize existing hand washing compliance programs to reach a much larger potential audience than could be directly contacted. Government endorsement of our product, and the mention of its benefits in government brochures and written materials could be a major competitive advantage and sales opportunity for SAFEassure, LLC.
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Develop Approximate Prototype | 7/1/2004 | 9/1/2004 | $0 | Founders | Product Dev. |
Attain Funding | 7/1/2004 | 11/1/2004 | $0 | Founders | Product Dev. |
Develop Final Prototype | 9/1/2004 | 2/1/2005 | $80,000 | Founders | Product Dev. |
Safety Testing | 12/1/2004 | 3/1/2005 | $20,000 | Founders | Product Dev. |
Begin Patent Process | 12/1/2004 | 1/1/2007 | $10,000 | Founders | Legal |
Design Promotional Material | 11/1/2004 | 3/1/2005 | $25,000 | Founders | Marketing |
Begin “Phase One” Marketing | 4/1/2005 | 12/31/2006 | $18,000 | Founders | Marketing |
Begin R & D of New Products | 6/1/2008 | 6/1/2009 | $75,000 | Founders | R & D |
Totals | $228,000 |
Our website will be available as a resource to customers and interested parties. It will include statistics, surveys and articles to build awareness about the need for and benefits of our product. The website will provide interested parties with a way to contact our company for answers to any questions they may have, and will include information on ordering and locating the product. Our product will not be directly available online, but we will build positive perception and awareness about our product there through statistics and user testimonials demonstrating our value.
We will include the URL in all printed materials, and encourage distributors to link to our site. Because the audience for SAFEassure’s products is fairly specialized, the most efficient means for marketing the site will be working specifically with the intended customers and pointing them to the site. The site will be registered with search engines.
After the initial implementation of CHILDassure, the site will also be used as a resource to promote our other fading dye products as they are developed. The website will then be converted into a multiple product site, perhaps expanding its offering to include direct ordering. The initial website, being fairly simple, will be built by the executive team and supported by one website professional. Initial development is estimated to cost less than $500.
Two of our strengths are the low cost structure and flexible personnel needs. Sales people with experience relevant to each new respective target market can be attained as need dictates, but the initial management team consists of the founders themselves, with little operational support. The Board of Advisors will be a critical foundation for the successful growth and development of SAFEassure, LLC.
Initially, both founders will share in the operational and financial responsibilities of the company. They will be responsible for finding, attaining and managing new accounts. Both founders will be responsible for making direct sales, marketing, and all other operational tasks involved with making this company successful. The CEO will oversee all company decisions.
Principals:
Devon Nevius: President/Founder/CEO
Devon Nevius will oversee operations in all aspects of the business. In addition to managing client relationships, marketing and product expansion, Mr. Nevius will be responsible for hiring new personnel members to enhance the management team. Mr. Nevius will be receiving his bachelor of Science Degree in Business Administration from the University of Oregon with a concentration in Entrepreneurship.
In addition to this, Mr. Nevius founded and managed Green Leaf Collegiate Landscaping in Eugene, Oregon while a full-time student. Gross sales for the company reached $75,000 in 2004, and the company employed two foremen in addition to Mr. Nevius and his partner. Green Leaf Collegiate was sold early in 2004.
Kevin Meinert: Founder/COO
Kevin will contribute in both sales and financial management for SAFEassure, LLC He has worked as a manager at a restaurant and as a computer technician with several years of experience. In the spring of 2004, he will be receiving his bachelor of Science degree in Business Administration from the University of Oregon with a concentration in Entrepreneurship.
Board of Advisors:
Jack Soap: With over ten years in the soap industry, Mr. Soap has developed significant relationships and experience with other industry leaders. Currently running Birth to Three, a Eugene company that develops child hearing aids and programs for young parents, Mr. Soap is a dedicated, experienced and successful entrepreneur. He will be a valuable asset to the creation, set up and implementation of our product. Mr. Soap will consult and provide market information to the executive team and use his established contacts and relationships to accelerate the development and implementation of the product. Specifically, he will be critical in the establishment of a complete system to get the soap base from its original manufacturing plant to our customers.
John Patent: Dr. Patent is the Director of the Technology Transfer department of the University of Oregon. Dr. Patent is in charge of protecting and patenting concepts and technologies developed as a result of the myriad of research and development projects continually happening within the University.
Wilson Science: Mr. Science has been a Professor of Chemistry at the University of Oregon for over eighteen years. Mr. Science specializes in chemical interactions that break down over time. He has worked on projects dealing with plastics and containers that will quickly bio degrade after discarded, and other products with short half-lives.
Franklin Money: Mr. Money is the Senior Vice President of the Lake Oswego Branch of Bank of America. Mr. Money specializes in business and investment consultation for his clients, helping entrepreneurs develop businesses efficiently and effectively.
It will be necessary to hire new sales associates as we expand into each new market segment. An individual with experience in networking with the government, perhaps having specific contacts with the FDA and CDC, will be a necessary addition to successfully create a complementary relationship with government organizations. A child-care industry professional with relevant experience and networks in the industry will be acquired to accelerate sales growth. After sufficient cash flow has been established and revenues have plateaued, we will hire a chemist on salary to expand our existing product line. A chemical expert working as a consultant will initially be useful for three reasons:
In order to free up enough capital to continue operations and possible expansion, our executive team will not receive more than a living wage salary until the product is well into the black. We understand that as a new product we will need technical support and legal advice; this will be currently outsourced to various consultants.
All sales for the first year of operation will be closed by the executive management team. Starting from the second year, we will employ a Sales Associate who will handle sales transactions. His/her compensation will be a combination of fixed salary and commission on sales. For the purposes of financial planning, we combined the Sales Associate’s compensation into an aggregate forecast.
To be flexible in meeting the customer demand, we plan to stock a minimum amount of product in a rented warehouse. At the beginning, all incoming product stock will be accepted and later dispatched to customers by the company’s executive team. Starting in the second year, we plan to hire a full-time Inventory Manager to handle these tasks.
As stated earlier, development of new products will not start until the second half of 2008. As such, related R & D costs are beyond the planning horizon of this document. However, we plan to earmark $20,000 and $40,000 for the second and third years of operation, respectively, under “R & D” for additional expenses related to the patent protection of our products. Should these expenses be minimized, our bottom line profitability (especially in the second year of operation) will be positively affected.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Devon Nevius | $28,800 | $32,000 | $50,000 |
Kevin Meinert | $28,800 | $32,000 | $50,000 |
Inventory Manager | $0 | $30,000 | $40,000 |
Sales Associate | $0 | $30,000 | $36,000 |
Research and Development | $0 | $20,000 | $40,000 |
Total People | 2 | 5 | 6 |
Total Payroll | $57,600 | $144,000 | $216,000 |
Based on market research, we expect the business to begin growing at 45% per month for the first 12 months, then at a yearly rate of 90% for the next two years. Due to our low initial investment costs, we can maintain the operations of the business with the cash buffer we will have from start up. In addition, we will almost immediately have a positive cash flow, allowing us the flexibility to cover any unforseen expenses.
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
Tax Rate | 30.00% | 30.00% | 30.00% |
Other | 0 | 0 | 0 |
Sales – Our sales are projected to grow at a consistent rate of 90% yearly, and we believe this accurately reflects the realistic growth our product would be capable of attaining if we can properly utilize existing channels of distribution and gain social acceptance.
Gross Margin – As we grow, become more efficient, and gain economies of scale we begin to see a slight growth in our margins.
Operating Expenses – In 2007 and 2008 we see an increase in the number of operating expenses that we will incur. We begin incurring larger costs involving advertising, promotion, marketing, and payroll expenses.
Inventory Turnover – We will begin operations with a preliminary purchase of $50,000/ 38,000 gallons of soap. Our preliminary forecast suggests that for us to be flexible in meeting customer demand we will need to maintain a minimal inventory stock at a rented warehouse. We estimate that, on average, we will keep two weeks worth of inventory on hand.
Collection days – We will collect our accounts receivable on an average of 45 days. In 2007 and 2008 we will have the cash to cover unexpected costs or expenses so that we may decide to allow a longer collection period.
The following fixed costs reflect the relative costs for selling and distributing our product within the greater Portland metro area, and do not reflect the fixed costs necessary to expand further.
Break-even Analysis | |
Monthly Revenue Break-even | $11,250 |
Assumptions: | |
Average Percent Variable Cost | 40% |
Estimated Monthly Fixed Cost | $6,750 |
Overall, our business is expected to generate sufficient cashflows. Our cash balance will, among other things, depend on the level of inventory we’ll decided to keep at a rented warehouse. At the moment, our projections in this respect are preliminary and we expect to fine-tune them as the demand for our products grows.
We expect to secure a $50,000 line of credit in year 3 to finance our receivables, listed as “New Current Borrowing” in the table below.
In year 5 of operations, we will begin looking at our ability to begin paying back our initial investors the $250,000. Although the terms of the additionally sought investment are yet to be agreed upon, we belief that our investors will provide us with a buffer of some years before expecting a return on their investment, allowing us the capital and time to expand and grow at an appropriate or desired rate. Nevertheless, for planning purposes, we have made provisions to start paying out a modest dividend from the third year of our operations. Currently, we set dividend payments to be equal to 5% of net profits.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $0 | $0 | $0 |
Cash from Receivables | $138,736 | $362,031 | $687,858 |
Subtotal Cash from Operations | $138,736 | $362,031 | $687,858 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $50,000 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $138,736 | $362,031 | $737,858 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $57,600 | $144,000 | $216,000 |
Bill Payments | $128,381 | $215,710 | $438,395 |
Subtotal Spent on Operations | $185,981 | $359,710 | $654,395 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $185,981 | $359,710 | $654,395 |
Net Cash Flow | ($47,245) | $2,320 | $83,463 |
Cash Balance | $29,455 | $31,775 | $115,239 |
Our profit and loss projections reflect our expectation that monthly fixed costs will remain constant over the course of the first year.
Cost of goods sold increases at a decreasing rate, as economies of scale make soap production cheaper per unit as production volume increases. Based on these projections the company will become profitable in October, 2005.
Advertising expenses will remain steady during our first year of operations. However, Advertising and Promotion will grow in years 2007 and 2008 to reflect the purchase of print ads, PR brochures, and additional promotional content.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $237,168 | $450,620 | $856,177 |
Direct Cost of Sales | $94,867 | $178,351 | $321,031 |
Other | $0 | $0 | $0 |
Total Cost of Sales | $94,867 | $178,351 | $321,031 |
Gross Margin | $142,301 | $272,269 | $535,146 |
Gross Margin % | 60.00% | 60.42% | 62.50% |
Expenses | |||
Payroll | $57,600 | $144,000 | $216,000 |
Payroll Taxes | $0 | $0 | $0 |
Depreciation | $0 | $0 | $0 |
Rent | $8,400 | $8,400 | $8,400 |
Utilities | $1,200 | $1,200 | $1,500 |
Insurance | $6,000 | $6,000 | $6,000 |
Telecommunications | $1,200 | $2,500 | $3,500 |
Travel | $1,800 | $2,500 | $4,000 |
Warehousing | $3,600 | $4,000 | $4,500 |
Other General and Administrative Expenses | $1,200 | $1,200 | $1,200 |
Total Operating Expenses | $81,000 | $169,800 | $245,100 |
Profit Before Interest and Taxes | $61,301 | $102,469 | $290,046 |
EBITDA | $61,301 | $102,469 | $290,046 |
Interest Expense | $0 | $0 | $2,500 |
Taxes Incurred | $18,390 | $30,741 | $86,264 |
Net Profit | $42,911 | $71,728 | $201,282 |
Net Profit/Sales | 18.09% | 15.92% | 23.51% |
Once we have established a relationship with the manufacturer, we will purchase inventory in minimum quantities of approximately 15,000 gallons for approximately $20,000 per shipment (following the initial start-up inventory purchase, at $50,000). As sales increase we expect that inventory turnover rate to increase.
Our only significant Accounts Payable will be Inventory, which are a direct reflection of the level of inventory on hand. We will be paying off our Accounts Payable in accordance with sale of inventory. Therefore, as we begin to sell more soap, we will be increasingly capable of meeting our obligations in a more timely manner, ensuring that we have enough cash on hand to cover our short term liabilities.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $29,455 | $31,775 | $115,239 |
Accounts Receivable | $98,432 | $187,021 | $355,340 |
Inventory | $119,146 | $34,927 | $60,193 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $247,032 | $253,723 | $530,772 |
Long-term Assets | |||
Long-term Assets | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 |
Total Assets | $247,032 | $253,723 | $530,772 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $77,422 | $12,384 | $38,150 |
Current Borrowing | $0 | $0 | $50,000 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $77,422 | $12,384 | $88,150 |
Long-term Liabilities | $0 | $0 | $0 |
Total Liabilities | $77,422 | $12,384 | $88,150 |
Paid-in Capital | $250,000 | $250,000 | $250,000 |
Retained Earnings | ($123,300) | ($80,389) | ($8,661) |
Earnings | $42,911 | $71,728 | $201,282 |
Total Capital | $169,611 | $241,339 | $442,621 |
Total Liabilities and Capital | $247,032 | $253,723 | $530,772 |
Net Worth | $169,611 | $241,339 | $442,621 |
The following table compares our ratios with standard ones from the soap and detergents industry (SIC Code 2841). Our current and quick ratios are much higher than industry averages. This is due in part to the substantial difference between our assets compared to our liabilities. Considering that we will be able to avoid any large loans and fund the company almost entirely independent of commercial creditors, there will necessarily be a discrepancy between our fairly large assets compared to our considerably smaller liabilities. Our business model and truly unique product allows us to outsource the manufacturing of the product, since our added value comes in the soon to be patented dye/soap formula. So, unlike other commercial-use soap makers in our industry, we do not need to purchase major capital assets, funded by loans.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | n.a. | 90.00% | 90.00% | -2.19% |
Percent of Total Assets | ||||
Accounts Receivable | 39.85% | 73.71% | 66.95% | 29.49% |
Inventory | 48.23% | 13.77% | 11.34% | 23.24% |
Other Current Assets | 0.00% | 0.00% | 0.00% | 21.00% |
Total Current Assets | 100.00% | 100.00% | 100.00% | 73.73% |
Long-term Assets | 0.00% | 0.00% | 0.00% | 26.27% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 31.34% | 4.88% | 16.61% | 34.96% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 8.33% |
Total Liabilities | 31.34% | 4.88% | 16.61% | 43.29% |
Net Worth | 68.66% | 95.12% | 83.39% | 56.71% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 60.00% | 60.42% | 62.50% | 33.85% |
Selling, General & Administrative Expenses | 24.35% | 26.33% | 26.71% | 27.20% |
Advertising Expenses | 7.08% | 5.33% | 4.09% | 0.73% |
Profit Before Interest and Taxes | 25.85% | 22.74% | 33.88% | 0.81% |
Main Ratios | ||||
Current | 3.19 | 20.49 | 6.02 | 1.78 |
Quick | 1.65 | 17.67 | 5.34 | 1.06 |
Total Debt to Total Assets | 31.34% | 4.88% | 16.61% | 46.64% |
Pre-tax Return on Net Worth | 36.14% | 42.46% | 64.96% | 1.89% |
Pre-tax Return on Assets | 24.81% | 40.39% | 54.18% | 3.54% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 18.09% | 15.92% | 23.51% | n.a |
Return on Equity | 25.30% | 29.72% | 45.48% | n.a |
Activity Ratios | ||||
Accounts Receivable Turnover | 2.41 | 2.41 | 2.41 | n.a |
Collection Days | 40 | 116 | 116 | n.a |
Inventory Turnover | 1.78 | 2.32 | 6.75 | n.a |
Accounts Payable Turnover | 2.66 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 109 | 20 | n.a |
Total Asset Turnover | 0.96 | 1.78 | 1.61 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.46 | 0.05 | 0.20 | n.a |
Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $169,611 | $241,339 | $442,621 | n.a |
Interest Coverage | 0.00 | 0.00 | 116.02 | n.a |
Additional Ratios | ||||
Assets to Sales | 1.04 | 0.56 | 0.62 | n.a |
Current Debt/Total Assets | 31% | 5% | 17% | n.a |
Acid Test | 0.38 | 2.57 | 1.31 | n.a |
Sales/Net Worth | 1.40 | 1.87 | 1.93 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
CHILDassure soap (day care) | 45% | $1,250 | $1,813 | $2,628 | $3,811 | $5,526 | $8,012 | $11,618 | $16,846 | $24,426 | $35,418 | $51,356 | $74,466 |
HEALTHassure/FOODassure | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Sales | $1,250 | $1,813 | $2,628 | $3,811 | $5,526 | $8,012 | $11,618 | $16,846 | $24,426 | $35,418 | $51,356 | $74,466 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
CHILDassure soap (day care) | 40% | $500 | $725 | $1,051 | $1,524 | $2,210 | $3,205 | $4,647 | $6,738 | $9,770 | $14,167 | $20,542 | $29,786 |
HEALTHassure/FOODassure | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $500 | $725 | $1,051 | $1,524 | $2,210 | $3,205 | $4,647 | $6,738 | $9,770 | $14,167 | $20,542 | $29,786 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Devon Nevius | 0% | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 |
Kevin Meinert | 0% | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 | $2,400 |
Inventory Manager | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Sales Associate | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Research and Development | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total People | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | |
Total Payroll | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $1,250 | $1,813 | $2,628 | $3,811 | $5,526 | $8,012 | $11,618 | $16,846 | $24,426 | $35,418 | $51,356 | $74,466 | |
Direct Cost of Sales | $500 | $725 | $1,051 | $1,524 | $2,210 | $3,205 | $4,647 | $6,738 | $9,770 | $14,167 | $20,542 | $29,786 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $500 | $725 | $1,051 | $1,524 | $2,210 | $3,205 | $4,647 | $6,738 | $9,770 | $14,167 | $20,542 | $29,786 | |
Gross Margin | $750 | $1,088 | $1,577 | $2,286 | $3,315 | $4,807 | $6,971 | $10,107 | $14,656 | $21,251 | $30,814 | $44,680 | |
Gross Margin % | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | 60.00% | |
Expenses | |||||||||||||
Payroll | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | |
Payroll Taxes | 15% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Rent | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | $700 | |
Utilities | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
Insurance | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
Telecommunications | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
Travel | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | $150 | |
Warehousing | 15% | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 |
Other General and Administrative Expenses | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
Total Operating Expenses | $6,750 | $6,750 | $6,750 | $6,750 | $6,750 | $6,750 | $6,750 | $6,750 | $6,750 | $6,750 | $6,750 | $6,750 | |
Profit Before Interest and Taxes | ($6,000) | ($5,663) | ($5,173) | ($4,464) | ($3,435) | ($1,943) | $221 | $3,357 | $7,906 | $14,501 | $24,064 | $37,930 | |
EBITDA | ($6,000) | ($5,663) | ($5,173) | ($4,464) | ($3,435) | ($1,943) | $221 | $3,357 | $7,906 | $14,501 | $24,064 | $37,930 | |
Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Taxes Incurred | ($1,800) | ($1,699) | ($1,552) | ($1,339) | ($1,030) | ($583) | $66 | $1,007 | $2,372 | $4,350 | $7,219 | $11,379 | |
Net Profit | ($4,200) | ($3,964) | ($3,621) | ($3,124) | ($2,404) | ($1,360) | $154 | $2,350 | $5,534 | $10,150 | $16,844 | $26,551 | |
Net Profit/Sales | -336.00% | -218.69% | -137.79% | -81.99% | -43.51% | -16.97% | 1.33% | 13.95% | 22.66% | 28.66% | 32.80% | 35.65% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Cash from Receivables | $0 | $667 | $1,550 | $2,248 | $3,259 | $4,725 | $6,852 | $9,935 | $14,406 | $20,889 | $30,288 | $43,918 | |
Subtotal Cash from Operations | $0 | $667 | $1,550 | $2,248 | $3,259 | $4,725 | $6,852 | $9,935 | $14,406 | $20,889 | $30,288 | $43,918 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $0 | $667 | $1,550 | $2,248 | $3,259 | $4,725 | $6,852 | $9,935 | $14,406 | $20,889 | $30,288 | $43,918 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | $4,800 | |
Bill Payments | $5 | $153 | $256 | $405 | $621 | $935 | $1,389 | $2,048 | $3,651 | $24,251 | $38,626 | $56,042 | |
Subtotal Spent on Operations | $4,805 | $4,953 | $5,056 | $5,205 | $5,421 | $5,735 | $6,189 | $6,848 | $8,451 | $29,051 | $43,426 | $60,842 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $4,805 | $4,953 | $5,056 | $5,205 | $5,421 | $5,735 | $6,189 | $6,848 | $8,451 | $29,051 | $43,426 | $60,842 | |
Net Cash Flow | ($4,805) | ($4,287) | ($3,506) | ($2,958) | ($2,162) | ($1,009) | $663 | $3,088 | $5,955 | ($8,162) | ($13,138) | ($16,923) | |
Cash Balance | $71,895 | $67,608 | $64,102 | $61,144 | $58,982 | $57,973 | $58,636 | $61,723 | $67,678 | $59,516 | $46,378 | $29,455 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $76,700 | $71,895 | $67,608 | $64,102 | $61,144 | $58,982 | $57,973 | $58,636 | $61,723 | $67,678 | $59,516 | $46,378 | $29,455 |
Accounts Receivable | $0 | $1,250 | $2,396 | $3,474 | $5,037 | $7,304 | $10,591 | $15,357 | $22,267 | $32,287 | $46,817 | $67,884 | $98,432 |
Inventory | $50,000 | $49,500 | $48,775 | $47,724 | $46,199 | $43,989 | $40,784 | $36,137 | $29,399 | $39,082 | $56,669 | $82,169 | $119,146 |
Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Current Assets | $126,700 | $122,645 | $118,779 | $115,300 | $112,381 | $110,275 | $109,348 | $110,130 | $113,390 | $139,047 | $163,001 | $196,432 | $247,032 |
Long-term Assets | |||||||||||||
Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Assets | $126,700 | $122,645 | $118,779 | $115,300 | $112,381 | $110,275 | $109,348 | $110,130 | $113,390 | $139,047 | $163,001 | $196,432 | $247,032 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $145 | $243 | $385 | $591 | $889 | $1,322 | $1,949 | $2,859 | $22,982 | $36,786 | $53,372 | $77,422 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $145 | $243 | $385 | $591 | $889 | $1,322 | $1,949 | $2,859 | $22,982 | $36,786 | $53,372 | $77,422 |
Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Liabilities | $0 | $145 | $243 | $385 | $591 | $889 | $1,322 | $1,949 | $2,859 | $22,982 | $36,786 | $53,372 | $77,422 |
Paid-in Capital | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 | $250,000 |
Retained Earnings | ($123,300) | ($123,300) | ($123,300) | ($123,300) | ($123,300) | ($123,300) | ($123,300) | ($123,300) | ($123,300) | ($123,300) | ($123,300) | ($123,300) | ($123,300) |
Earnings | $0 | ($4,200) | ($8,164) | ($11,785) | ($14,909) | ($17,314) | ($18,674) | ($18,519) | ($16,169) | ($10,635) | ($485) | $16,360 | $42,911 |
Total Capital | $126,700 | $122,500 | $118,536 | $114,915 | $111,791 | $109,386 | $108,026 | $108,181 | $110,531 | $116,065 | $126,215 | $143,060 | $169,611 |
Total Liabilities and Capital | $126,700 | $122,645 | $118,779 | $115,300 | $112,381 | $110,275 | $109,348 | $110,130 | $113,390 | $139,047 | $163,001 | $196,432 | $247,032 |
Net Worth | $126,700 | $122,500 | $118,536 | $114,915 | $111,791 | $109,386 | $108,026 | $108,181 | $110,531 | $116,065 | $126,215 | $143,060 | $169,611 |
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If you love being creative and enjoy making things with your own two hands, then starting a soap making business could be the perfect entrepreneurship venture for you. Soap making is a centuries-old craft that is enjoying renewed popularity in recent years. And there’s good reason for it!
Making your own soap allows you to create unique products using natural ingredients, while also earnings a handsome profit. Best of all, starting a soap making business is relatively easy and doesn’t require a lot of upfront investment.
In this guide, we’ll show you everything you need to know to get started on your very own soap making business! We’ll cover topics like choosing the right products and supplies, marketing your soaps, and even giving helpful tips on how to troubleshoot any problems you might encounter along the way. By the end of this guide, you’ll be armed with all the knowledge and resources you need to launch a successful soap making business of your very own! So let’s get started!
What is a soap making business, how do i find customers for my soap making business.
Soap making is the process of combining oils and fats with an alkali substance to create a bar of soap. Many soap makers start their businesses by creating handmade, artisanal products using natural ingredients, often scented with essential oils. These soaps are often sold in local markets or online, through a website or social media platforms. In addition to bars of soap, many soap makers also offer a variety of other personal care items such as shampoo bars, body scrubs, and lotion bars.
Running a soap making business requires knowledge of the soap making process, as well as understanding the regulations and labeling requirements for selling personal care items. It also involves marketing efforts to attract customers and sell products. Overall, owning a soap making business can be both creative and challenging.
Making soap may seem like a simple task, but there is an art and science to it. Soap making has been around for centuries and there is still a market for handmade soap. If you’re thinking about starting a business, why not consider soap making? Here are three reasons to do it.
One of the best things about starting a soap making business is that the startup costs are relatively low. You’ll need some basic equipment, like a double boiler, mixing bowl, and mold, and some raw materials, like glycerin, coconut oil, and jojoba oil. These can all be sourced cheaply online or at your local craft store. The only other costs you’ll need to consider are packaging and marketing. With a small investment, you can get your business up and running in no time.
Soap making is not difficult. There are numerous tutorials and recipes available online that can walk you through the process step-by-step. Once you’ve mastered the basics, you can start experimenting with different fragrances, colors, and textures to create unique soaps that will appeal to your target market.
Handmade soap is always in demand because people love luxury items that are good for their skin. If you make high-quality soaps and market them correctly, you can charge premium prices and enjoy healthy profit margins. For example, a bar of handmade soap might sell for $5-$7, while a mass-produced bar of soap from the grocery store might only cost $1-$2. This means that you could potentially make 500% or more in profits on each sale!
Soap making is a great business to get into because it’s easy to make, has low startup costs, and offers high profit margins. If you’re looking for a creative way to become your own boss, look no further than soap making!
Soap making is a fun and rewarding hobby that can be turned into a successful business. If you’re thinking about starting your own soap making business, there are a few things you need to do to get started. In this blog post, we’ll walk you through everything you need to know to start your very own soap making business.
The first step in starting any business is finding your niche. When it comes to soap making, there are endless possibilities for what you can create. You can make all-natural soaps, luxury soaps, vegan soaps, or even pet-friendly soaps. The sky’s the limit when it comes to choosing your specialty. Once you’ve decided on a niche, you can start to narrow down your target market.
After you’ve decided on your niche, it’s time to start creating your business plan . A business plan is an essential roadmap for any new business, and it will help you stay on track as you grow your soap making operation. Be sure to include things like your business name, target market, marketing strategy, and financial projections in your business plan. This will be a valuable reference tool as you get your business up and running.
One of the most important decisions you’ll make for your soap making business is choosing the right location. You’ll need to find a space that has enough room for all of your equipment and supplies, as well as ample counter space for production. If you don’t have room at home, consider renting a space in a local commercial kitchen or leasing a storefront in a busy shopping district.
Once you have a location for your soap making business, it’s time to start investing in equipment and supplies. You’ll need basic supplies like soap molds, colorants, fragrances, and packaging materials. You may also need larger pieces of equipment like mixers and ovens if you’re planning on mass production. Be sure to shop around for the best prices on supplies and equipment before making any big purchases.
Your brand is what makes your soap making business unique. It encompasses everything from your logo and website design to the way you package and market your products. Take some time to brainstorm what kind of image you want your soap making business to project before moving forward with any branding decisions.
Soap making is a fun hobby that can be turned into a successful business venture with the right planning and execution. If you’re thinking about starting a soap making business, use this blog post as a guide to get started on the right foot. Choose your niche, create a comprehensive business plan, invest in quality supplies and equipment, find the perfect location for production, and develop a strong brand identity to set yourself apart from other soap makers in the industry!
Soap making is a creative and fun endeavor that can also be profitable. If you are thinking about starting your own soap making business, you may be wondering how much it all costs. The startup costs of a soap making business can range from a few hundred dollars to a few thousand, depending on the size and scope of your operation. Here is a breakdown of some of the most important factors to consider when budgeting for your new business.
One of the biggest expenses associated with starting a soap making business is the cost of equipment. A basic setup for a small operation can cost around $1,000, while a more extensive setup for a larger business can cost upwards of $10,000. The type of equipment you need will depend on the type of soap you plan to make (cold process, hot process, melt and pour, etc.), as well as the volume you plan to produce.
In addition to the costs of equipment, you will also need to purchase supplies like fragrance oils, colorants, packaging, labels, and so on. The cost of supplies can vary widely depending on the quality and quantity you purchase. A good rule of thumb is to budget at least $500 for supplies when first starting out. This number will increase as your business grows and you begin to purchase larger quantities of raw materials at wholesale prices.
If you plan to hire employees or contract with other soap makers to help with production, then you will need to factor labor costs into your budget as well. Employees will need to be paid a fair wage for their time, and contractors will need to be compensated for the materials they use as well as their time. Depending on the size and scope of your operation, labor costs can range from a few hundred dollars per month to several thousand dollars per month.
The cost to start a soap making business can vary widely depending on the size and scope of your operation. However, there are some general guidelines you can follow when budgeting for your new business. You should expect to spend at least $1,000 on equipment and $500 on supplies when first starting out. Additionally, labor costs can range from a few hundred dollars per month to several thousand dollars per month depending on how many employees or contractors you need to hire. By taking all of these factors into consideration, you can develop a realistic budget for your new soap making business.
If you’re thinking about starting a Soap Making business, congratulations! You’re on your way to becoming a successful entrepreneur. But one of the most important questions you’ll need to answer is how to find customers for your new business.
Don’t worry, we’ve got you covered. In this section, we’ll share some practical tips and advice for finding customers for your Soap Making business. Whether you’re just getting started or you’ve been in business for a while, these tips will help you get more soap into the hands of happy customers. So let’s get started!
When it comes to advertising for your soap making business, word-of-mouth is king. Friends, family, and past customers can provide a personal endorsement for your products, creating more trust and credibility for potential new customers. In addition, word-of-mouth marketing has the added benefit of being free, saving you money on advertising expenses.
One way to encourage word-of-mouth marketing is by offering referral discounts or bonuses for customers who recommend your products to their friends and family. You can also ask satisfied customers to leave online reviews or post about your soaps on social media.
The bottom line is that while other forms of advertising may bring in some new business, nothing beats the power of personal recommendations from people you trust. So don’t underestimate the value of word-of-mouth in growing your soap making business.
As a soap maker, it can be difficult to reach new customers and spread the word about your products. One effective way to do this is to cultivate a strong presence on social media.
First, determine which platforms your target audience is most active on, whether it’s Instagram, Twitter, or Facebook. Then, regularly post high-quality photos and descriptions of your soaps and set up options for direct messages or online purchasing.
It’s also important to engage with others in the industry by following them and commenting on their posts, as well as actively interacting with your own followers by responding to comments and messages promptly.
By putting in the effort to establish a strong social media presence, you can expand your customer base and bring attention to your soap making business.
Giving out free samples to potential customers is a great way to attract new business for your soap making company. Studies have shown that customer satisfaction is higher when they are able to try out a product before committing to a purchase. Plus, if a customer loves your sample, they may decide to buy more or even spread the word about your product to their family and friends.
It’s important to remember to give samples of a variety of your soaps so potential customers can experience the full range of scents and textures your business has to offer. Not only will this strategy likely bring in new customers, it will also increase the chance of repeat purchases.
So don’t be afraid to hand out those samples and watch your customer base grow!
As a Soap Maker, it’s important to find avenues to showcase your products and connect with potential customers. One highly effective way to do this is by participating in local events and trade shows. These events give you the opportunity to network with individuals in your community and share your passion for homemade soap.
Attendees are often looking for unique, handcrafted items, so being present at these events can lead to sales and even repeat customers. Along with selling your soaps, consider offering free samples or demos to further pique people’s interest.
Local events and trade shows can also be a great way to learn about other businesses and collaborate on future projects. So don’t pass up the chance to showcase your soap making skills and make connections at these gatherings.
As a soap maker, finding customers can be a challenge. But you don’t have to go it alone. Networking with other local business owners can bring unexpected opportunities for collaborations and referrals.
For example, maybe one of your fellow business owners runs a yoga studio and could use homemade soap as gifts for their members. Or perhaps another owns a spa and may want to stock your soap in their shop.
By networking with others, you never know what exciting partnerships you may discover. And even if direct collaborations don’t pan out, simply getting to know the other business owners in your community can open the door for them to recommend your products to their customers.
Don’t underestimate the power of building connections with those around you – it could be the key to finding new customers for your soap making business.
You don’t need thousands of dollars or a fancy marketing team to start finding customers for your soap making business—all you need is a little bit of creativity and elbow grease. By utilizing some or all of the strategies above, you’ll be well on your way to building a successful soap making business in no time!
Jeremy Reis is a serial entrepreneur from the Franklin, Tennessee area. Jeremy is the founder of multiple businesses and is the VP of Marketing for CRISTA Ministries. Jeremy has his MBA with a focus in Entrepreneurship from The Ohio State University.
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How to start a soap making business.
The majority of people who start a soap-making business begin their venture with a hobby. They enjoyed making homemade soap for family and friends. If you’re ready to get serious and you want to know how to start a soap-making business, you’ll have to up your game.
Here’s some business advice – you’ll have to focus on the business end when you start selling. Soap makers wish they could spend all their time making soaps but should spend the majority of their time working on ways to sell soap.
There are many reasons why you might consider starting a soap business. Here are a few of the most compelling:
Of course, there are also some challenges to starting a soap business. These include:
Expenses | Details |
---|---|
Soap-Making Ingredients and Supplies | Depending on the types of soaps you're making, your ingredients might include a variety of oils, lye, additives (like colors, scents, and exfoliants), and water or other liquids. These costs can range anywhere from $50 to $500 or more to start, again depending on the volume of soap you plan to produce. |
Equipment | Basic equipment for soap making includes a soap mold, a pot, a scale, a stick blender, safety equipment (like gloves and safety goggles), a thermometer, and utensils. This could cost between $100 to $300. |
Packaging and Labeling | Costs can vary greatly depending on the type of packaging and labeling you choose. This could be as low as $50 for simple packaging or up to the hundreds for more elaborate or custom options. |
Marketing and Advertising | Building a website, advertising, business cards, and other promotional material can range from a small investment if you do it yourself, to several hundreds of dollars if you hire professionals. |
Licenses and Permits | Depending on your location, there may be costs associated with obtaining a business license, insurance, and potentially other permits or inspections. These costs can vary greatly but may range from $100 to $500 or more. |
Workspace | If you're not working from home, you'll need to factor in the cost of renting a workspace. |
Miscellaneous Costs | You may also have other costs such as shipping, professional services (like accounting or legal), and ongoing supplies. |
Many soap makers start small from home, with a minimal product line at a cost of about $1,000. You most likely have some basic equipment needed for a small operation, such as a microwave, blender and mixing kettle. You can save money using equipment you already have.
The cost of starting a soap business depends on many things, including the size and scale of the business, the type of soaps you plan to make, the ingredients you plan to use, the equipment needed, the cost of packaging, and marketing expenses. Here’s a rough breakdown of the potential costs:
Starting a small-scale soap business could cost you anywhere from a few hundred to a few thousand dollars. This is a general estimation and the actual costs may vary significantly based on the scale of your operations, the location of your business, and the types of products you plan to produce. Start with a detailed business plan that outlines all potential costs for the most accurate estimate.
1. research the competition.
There are many other soap makers already in the business. Before you start your own soap making business, you need to learn who they are, what they make and where they sell.
Also consider the competition you’ll get from the manufacturers making commercial soaps for the big box stores. Acknowledge that people can buy soap very cheaply. How is yours going to be so special that they’ll spend more to get it?
Choosing your niche and knowing your target market are closely related. It’s important to realize that just because you absolutely love a certain soap you make, doesn’t mean there’s a market ready for you.
Today, small businesses specializing in homemade soap making are focusing on using natural ingredients, which is just what the consumers want. To your natural soaps you can add tweaks in the manufacturing process that make your handcrafted soap unique – such as embossing it, adding specific herbs, mixing in essential oils or coconut oil.
Are you going to sell to local store owners, or conduct much of your business in online stores?
Most businesses, not just soap making, carefully consider the demographics for their buyers. To be a successful soap maker, you’ll need to do a mix of both – sell local and via an online store on the web.
Make sure the name you take isn’t already taken, or very similar to another business that makes homemade soaps.
Also, be careful not to limit yourself as your business grows, because of the name you’ve chosen. For example, “Linda’s Lavender Luxury Bars” doesn’t allow Linda to expand to other scents.
Your logo you design is extremely important. It will most likely be stamped or printed on your shipping materials and packaging. It should be easily recognizable, as a consistent brand with a distinct style and color.
Every profitable business has a plan with all the features needed:
There are several sources for possible grants:
United States Chamber of Commerce
Small Business Administration
Amazon – Amazon recently launched a program called the Black Business Accelerator for their sellers. There are other programs for those who are marketing handmade crafts.
Forming a legal entity is a critical step in starting a soap business. It separates your personal assets from your business liabilities, providing financial and legal protection. Consider options like an LLC for flexibility and limited liability, a partnership if you’re working with others, or a sole proprietorship for a simple structure.
Registering your business requires choosing a unique name and adhering to state-specific requirements. This step ensures your business is legally recognized, allowing you to operate smoothly and focus on crafting quality soaps.
Opening a business bank account is an essential step in professionalizing your soap business. It helps in managing finances, tracking expenses, and simplifying tax filings. You’ll need your business registration documents, EIN, and personal identification.
Separate your personal and business finances to avoid legal complications and maintain clear financial records. This step also enhances credibility with customers and suppliers, showcasing your commitment as a serious business entity in the soap-making industry.
You’ll need the standard stuff, such as an Employer Identification Number ( EIN ) in order to file sales tax. You’ll also need a Business Operators Permit . Before you start making soap in your home, you need to check to see if you meet local zoning requirements.
Because you’re selling something people will use on their bodies, you’ll need to pay attention to cosmetics regulations in your state, which will spell out what you need to do in order to meet the standards of the consumer product safety commission.
On the federal level, you’ll need to meet FDA regulations . For example, all the ingredients must be listed on the label.
Before you spend money on small equipment, consider being bolder. You’re in this, right? Save your blender for smoothies, and buy commercial grade equipment:
Many soap makers say this is one of the most critical and difficult steps. But let’s face it – if you don’t have the supplies, you can’t make the soap.
You’ll need an easy way to track income and expenses. Some suggestions are Quick books, Intuit, or Zoho products.
On your website and social media accounts, you’ll need really great descriptions and ever better photos. Unless you’re a good photographer, you may want to hire this service.
Social media marketing may be your best source for developing a loyal customer base, which is directly related to how much profit you make. You don’t want to scrimp on attractive packaging and photos of your finished product line.
One of these types of policies may be necessary for your soap business:
Many get their start by selling at farmers markets or craft fairs. From there, judicious use of a business card will lead those customers to your social media platforms.
You can also try online marketplaces such as Etsy shop and Amazon Handmade. Read the fine print so that you understand the terms of those agreements. Overall though, selling through Etsy or Amazon opens the door to you contacting thousands of buyers.
You can reach out to brick-and-mortar locations such as stores, Spas, hotels, Inns and more.
Your website should be extremely professional with beautiful design, informative product descriptions and brilliant photography.
Helpful tips for creation of an interactive website:
Understanding and managing your tax obligations is crucial in running a successful soap business. Register for an EIN to handle sales tax and federal tax obligations. Familiarize yourself with the tax requirements specific to your business structure and location.
Consider quarterly tax filings to manage financial responsibilities effectively. Keep detailed records of all transactions to simplify the tax filing process. Staying compliant with tax regulations ensures your business operates legally and avoids penalties.
As your soap business grows, hiring staff can help you manage increased production and expand your market reach. When hiring, focus on roles that directly contribute to your business goals, like production assistants or marketing specialists.
Ensure you comply with employment laws and provide a safe, welcoming work environment. Training staff in soap-making techniques and customer service can maintain the quality and reputation of your brand. Remember, a skilled and motivated team can be the key to taking your soap business to new heights
This is the part where you get to have fun. You can use existing soap recipes or tweak them using scents or colors that you prefer.
Remember that handmade soap has a perceived value of being better than other soaps. Make sure that your soap lives up to this ideal.
Here are four awesome ideas for marketing and expansion:
The basic steps include researching the soap making process, obtaining necessary licenses and permits, developing a business plan, sourcing quality ingredients, creating unique soap recipes, and setting up sales channels.
While prior soap making experience can be beneficial, it’s not a strict requirement. You can learn the techniques through online tutorials, workshops, or courses, and practice until you master the art of soap making.
The costs can vary based on factors such as the scale of your operation, equipment, raw materials, packaging, and marketing. Generally, expect to invest in equipment, ingredients, packaging, and marketing efforts.
Utilize social media platforms and create an online presence. Use high-quality images and engaging content to showcase your soaps. Attend craft fairs, farmers’ markets, or local events to reach potential customers in person.
Yes, it’s crucial to comply with labeling requirements, product safety regulations, and health standards. Research the specific regulations in your region and ensure your products meet all necessary legal requirements.
Yes, selling online is a great way to reach a wider audience. You can set up an e-commerce website, use online marketplaces, or even create a presence on social media platforms to sell your products.
Focus on creating unique soap recipes, experiment with various natural ingredients, emphasize your commitment to quality and sustainability, and offer excellent customer service to set your brand apart.
Image: Depositphotos, Envato Elements
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Published May.10, 2018
Updated Apr.24, 2024
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Table of Content
Are you planning to start a homemade soap business plan ? Soap is considered to be a staple commodity that has been on the market for thousands of years. For this reason, the soap production industry is increasingly witnessing a growing trend and the sector is thriving. Millions of US dollars are generated annually from the small, medium and large scale soap production enterprises. According to statistics, global bath soap market revenue totaled $18 Billion in 2016. Numerous factors such as population growth, increased hygiene awareness, value addition and increasing demand for emerging markets have positively contributed to the growth of the soap making industry. There is no doubt, this is an excellent soap making business idea to venture into.
2.1 the business.
The homemade soap business plan will be registered with the name Soapex Manufacturing and will be situated in Chicago, Illinois. The business will be owned and managed by Victor Smith who’s an experienced Soap Making Specialist.
Victor Smith who is the owner and manager of Soapex Manufacturing is an expert soap making specialist with vast experience the soap making industry that spans over 30 years. During Victor’s career, he worked for renowned international brands such as Henkel, Church and Dwight and Procter & Gamble among others. Given his extensive experience, he has all the skills on how to start a soap-making business plan .
Having an in-depth understanding of customer needs and local soap making trends is the key to targeting the appropriate customer segment. After examining and identifying local emerging opportunities, Soapex intends to reach out to customers who’re looking for revolutionary and unique products.
Soapex Manufacturing plans to offer 100% proven, efficient, safe and reliable products to a wide range of customers. The soap-making business plan intends to target both domestic and commercial customers to boost its market revenue share.
3.1 company owner.
Victor Smith is an experienced soap making specialist whose successful career has enabled him ascend the corporate ladder and be put in charge of key positions across various blue chip companies in the United States. Having worked on various related projects, he has in-depth knowledge of how to start small soap making business .
Even though the soap making industry has many industry players, the demand continues to grow steadily. Increasing population and the fact that the society is embracing new approaches to better hygiene has contributed to creating new opportunities for soap making entrepreneurs. For this reason, Victor was keen to start his own small soap making industry to meet these changing needs.
With 3 decades of experience in the soap making industry, Victor Smith is an expert in methodologies of setting up a homemade soap business plan . To better understand financial issues and projections, he has teamed up with financial gurus to come up with a comprehensive financial analysis.
Soapex Manufacturing has the intention of offering its clients a wide range of soap products. Unlike large manufacturers who produce their products using conventional methods, Soapex plans to adopt an organic and natural approach to ensure its range of products contains natural ingredients. This is amongst the best and most creative soap-making business ideas as it sets the business apart from many competitors. In order to be successful with how to start a soap business , you must study the market thoroughly and offer products that customers really need on a daily basis. In this regard, the soap making business plan intends to offer customers the following products:
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The soap making industry is highly lucrative and competitive at the same time. With the industry stable and growing, growth rates of over 4% have been witnessed since 1998. The soap making industry is quite fragmented and in the past, big brands commanded a huge market share. However, this has changed a lot with the entry of small soap-making businesses. Given the fact soap is practically used everywhere, the demand keeps increasing. In this soap making business plan , the business has identified the opportunities it can tap into to generate revenue.
In order to effectively meet the market needs, Soapex plans to sell different types of soap products after a careful market analysis of what is needed most in the market. The rise in demand for natural soap products has put the homemade soap business plan in an advantaged position since Soapex Manufacturing is all about making natural soap products that are safe, proven effective, and gentle on users.
5.1.1 households.
Households constitute a large percentage of customers the homemade soap business plan s to reach out to. Chicago is the 2nd largest city in the U.S. and with approximately 2 million households and Soapex stands a chance to gain handsomely marketing its products to domestic consumers. Homes are increasingly looking for natural home cleaning products which are free of chemicals. This is the reason why this business plan for soap-making company strictly emphasizes on the provision of domestic natural soap products.
Households provide a ready market for the business given the fact they require an all-inclusive product range from bathing soap, household cleaning, washing detergents and car liquid soap. The secret to success depends on a well-executed marketing strategy to target Chicago households as the competition for this market segment is extremely tight.
Because of their nature of business, restaurants, caterers and any other food-related industry business must have a constant supply of soap products for use in day-to-day activities. The food industry in Chicago is vibrant and for this reason, Soapex has a good opportunity to reach out to numerous restaurants and hotels to market its products. Players in the hotel industry are highly regulated to boost safety of food production and ensure clients come to a clean environment to enjoy business strategy services . Adequate emphasis is therefore put on using the right kind of soaps and detergents.
In the recent times, a lot of emphasis has been placed on boosting school hygiene standards with various initiatives started to ensure children wash their hands with good quality products to prevent spreading of dirt and germs. This is a good market the homemade soap business plan can reach out to increase revenue.
Offices have unique cleaning needs which demand quality cleaning products. Soapex produces various products aimed at serving the needs of corporate customers. This Chicago soap manufacturer business plan sample aims to find ways of adverting products to offices which are expected to generate a good source of revenue.
Laundry shops cannot run their businesses without having adequate stock of different types of soap products. This is potentially a great customer target area for Soapex to advertise its products. The soap making business plan is guaranteed to receive a constant supply of orders from local laundry shops.
Given the high demand for soap products around the city, Soapex Manufacturing deals exclusively with natural soap products. There are numerous health and value added benefits associated with natural soaps and detergents. The soap-making business plan has also chosen a strategic location within the city to allow for faster distribution of products. With a diverse and unique product range, the soap making business plan template expects to realize an annual sales growth of 15-20%.
In order for Soapex to penetrate the market, the soap making business plan has carried out a pricing survey and plans to have competitive product prices based on the market averages. This soap-making business plan outline also recommends offering discounted prices on products especially when the business has just begun operating.
There are numerous opportunities to explore in the soap making industry. We have been using conventional soap products for several years but market trends have begun to shift. More consumers are beginning to appreciate the benefits of using soaps made using natural ingredients. With the best strategies in place, Soapex stands a good chance to compete favorably on the market.
When starting a soap making business plan , there is need to analyze the market in order to come up with an idea model that will sustain business operations. There are numerous soap making businesses in Chicago. However, Soapex is a natural oriented soap maker and has identified the best strategies to help the business stay ahead of its competitors.
For Soapex to effectively advertise its natural soap business idea to the target market, the following strategies will be used to market the business.
To achieve its targets, Soapex has come up with a sales forecast to determine how the soap making business will perform when it starts operations.
Soapex plans to employ a team of staff to run the soap making business. How to start soap making business entails coming up with a personnel plan with the roles of each staff member well-defined. A staff budget should also be determined to enable a business know how much it will spend on salaries.
Soapex is owned by Victor Smith who will also be the manager of the homemade soap business plan . While preparations are being made for the business to open its doors to public, the following staff will be hired in the soap making business plan.
Owner/Manager Plant Manager 3 Soap Making Machine Operators 2 Marketing Associates 2 Distribution Truck Drivers 1 Security Guard
Successful applicants will undergo extensive training in order to know soap making business plan activities and how to manage the facility on a day-to-day basis.
Soapex has formulated a comprehensive financial plan that will determine how the business will run and what shall be invested when starting a soap business . It is important to clearly define all the financial parameters in order to adequately plan business finances. In this soap making business plan , Victor Smith will finance the business and will be assisted by two investors. How to start your own soap business comes with numerous expenses and therefore, a bank loan for business plan will be secure to finance budget deficiencies.
Financial forecast for Soapex will be based on the assumptions below.
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 20.00% | 25.00% | 30.00% |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
Tax Rate | 30.00% | 35.00% | 40.00% |
Other | 0 | 0 | 0 |
The Brake-even Analysis for Soapex is shown in the graph below.
8.3.1 monthly profit.
Profit and Loss Analysis for Soapex is shown below.
Below is a summary of pro forma cash flow, subtotal cash spent, subtotal cash received, subtotal cash spent on operations and subtotal cash from operations.
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This is great article and well written Sample of Business Plan.
Hello VICTOR this is very encouraging Am so much impressed and have learnt so much THANKS
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Soap Making Business
Back to All Business Ideas
Written by: Esther Strauss
Esther is a business strategist with over 20 years of experience as an entrepreneur, executive, educator, and management advisor.
Edited by: David Lepeska
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Published on October 7, 2021
Investment range
$2,000 - $6,000
Revenue potential
$90,000 - $456,000 p.a.
Time to build
Profit potential
$73,000 - $182,000 p.a.
Industry trend
When establishing your soap-making business, consider these significant factors:
Interactive Checklist at your fingertips—begin your soap making business today!
You May Also Wonder:
Is soap-making a profitable business?
Soap-making is indeed a profitable business. The cost of production generally accounts for only 20% of the retail price. Plus, if you run your business from home, you won’t have any large overheads, aside from promoting and marketing your business. A solopreneur can expect to make up to 70% in net profit, while a large company could make up to 30% in net profit (although total profits are much higher.)
Is making soap easy?
Soap-making is easy since you can learn everything you need to know online. There are four methods to make soaps, and two of them, namely Melt-and-Pour and Rebatch, only require you to add color and fragrance after buying the pre-made base. While the process of making soap is easy, creating unique and popular recipes is more complicated.
How much does homemade soap sell for?
The price largely depends upon the ingredients and reputation of your brand. On average, you can sell homemade soap for $5 per bar. However, if you are in a luxury soap segment with premium and high-quality ingredients, the price could be well over $10 per bar.
Is making soap expensive?
Soap making is not expensive unless you intend to use premium ingredients. The main ingredients include fat/oil and lye. Both of these are affordable, leading to a typical cost per bar of $1.
Is soap a good business?
Soap is an excellent business. It offers you the flexibility to produce soaps from home without needing special or expensive equipment, so you start it as a side hustle until it gains traction. The soap business also has a ton of upside with the potential to develop a national or international brand.
Whether you’re trying to find your golden idea or you’ve already decided on soap making, it’s essential to analyze the industry before jumping in. By taking time to evaluate the opportunity, you’ll be able to determine if the opportunity is worth the investment.
Let’s start with analyzing the pros and cons of soap making.
Bath and body soaps have the largest share in the soap industry at 76%, followed by kitchen and laundry soaps. Top US manufacturers, such as Colgate-Palmolive, Procter & Gamble, and Johnson & Johnson, dominate the market, but there’s increasing interest in more transparent and all-natural independent soap makers.
Soap market growth is steady, but consumers have begun to favor liquid soaps over traditional bars. This is due to the belief that liquid soaps are more hygienic when shared and tend to last longer.
Trends shaping the soap making industry include:
Challenges in the soap making industry include:
Startup costs in the soap making business are low thanks to operating from home, inexpensive equipment, and the long shelf life of soap. It costs roughly $4,000 to start a soap business, with the major costs being materials and marketing.
Start-up Costs | Ballpark Range | Average |
---|---|---|
Licenses and permits | $200 - $500 | $350 |
Insurance | $250 - $375 | $312 |
Marketing and advertising | $750 - $3,000 | $1,875 |
Website | $200 - $1,000 | $600 |
Software | $150 - $300 | $225 |
Equipment | $300 - $500 | $400 |
Raw material | $100 - $200 | $150 |
Miscellaneous | $50 - $125 | $88 |
Total | $2,000 - $6,000 | $4,000 |
When it comes to profitability, once your business is established you could earn close to $200,000 per year. This article uses a production cost estimate of $1 per bar and a $5 resale price, for an 80% margin.
In your first year or two, you could sell 50 bars of soap per day and make more than $90,000 in annual revenue. This would give you a profit of $73,000, assuming that 80% margin. After you build a reputation you might be able to sell 250 bars per day, but this would require you to add workers and rent a production facility, cutting your margin to 40%. Still, with $456,000 in annual revenue you’d make more than $182,000 in profit.
While the investment needed to start a soap business is minimal, there are some complex barriers to overcome in the industry.
You’ll have to comply with the Food and Drug Administration (FDA) or Consumer Product Safety Commission (CPSC) regulations. If your soap falls under a cosmetic or drug category, you’ll be dealing with the FDA, while the CPSC regulates the rest.
You can check out the FDA’s frequently asked soap questions for more information. To be safe, you can either use ingredients that are free from regulation or contact a representative from the relevant authority to evaluate your ingredients.
Since soap has been around for hundreds of years, customers may be loyal to specific brands simply because that’s what their family has used for generations. To gain customers, ensure your product is different from the run-of-the-mill brands and caters to a specific need, for example, all-natural or premium ingredients not found elsewhere.
Big brands dominate the shelf placements in many local supermarkets. Often, it’s difficult for small brands to get noticed as they can only afford less optimal shelf locations.
What you can do is to avoid the usual distribution channels, like supermarkets, where you’re competing against large companies. Instead, you can sell direct-to-customer and place your ads on social media.
With every established industry, large companies will always have an advantage when it comes to price. Since they operate at scale, their production costs are lower, which means they can offer their products at lower prices than new businesses entering the market.
Instead of bringing down your price, create a story for your brand and develop a unique value proposition that is worth more than saving a few dollars.
On the other end of low production costs is a considerable research and development budget. Large companies are always trying to develop new products to get one up on their competition, which can put smaller businesses out of the game.
Don’t compete for the same customers. Small businesses have a significant advantage that large corporations don’t, and that is the ability to generate profits from smaller market segments. Find a small niche that corporations avoid and begin developing products for them.
Step 2: hone your idea.
Now that you know what’s involved in starting a soap making business, it’s a good idea to hone your concept in preparation to enter a competitive market.
Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.
Research other soap makers to examine their products, price points, and customer reviews, as well as what sells best. You’re looking for a market gap to fill. For instance, maybe the local market is missing a great soap for dogs.
You might consider targeting a niche market by specializing in a certain aspect of your industry, such as all-natural ingredients.
This could jumpstart your word-of-mouth marketing and attract clients right away.
Consumers are becoming more aware of the ingredients in the soaps they put on their skin, and for that reason, there is a push toward label transparency. Certain large companies still use chemicals in their products and may obscure product contents with their labeling. These chemicals may be cheaper than natural alternatives, increase the shelf life of their product or have another benefit for their bottom line, hence the reluctance to remove them.
As an alternative, all-natural soap manufacturers have grown in popularity, in particular, home-based operations. This growth may be because small businesses that operate from home are less concerned with their bottom line and want to provide the best products to consumers.
If you pursue this opportunity within the market, ensure that you don’t cut corners and use only the safest ingredients for your customers. Doing so will improve their satisfaction and build loyalty to your brand—the first steps to growing your business.
A crucial question for any business is, what products will you offer? You’ll need to determine which soaps you’ll offer, how you’re going to make them, which ingredients you’ll use, and the price at which you’ll sell your soaps.
The products should be competitive and reflect the needs of your target market. Your soap can meet your customers’ needs in three main ways: scent, ingredients, and manufacturing method. It’s your job to figure out which combination of these three factors will give your customers the highest level of satisfaction.
Your choice of soap making method may be influenced by the availability of supplies and equipment, personal preferences, and consumer needs. Nevertheless, the following techniques are popular and used by common brands to produce quality soaps.
Cold pressing is a popular method that involves blending fat or oil with sodium hydroxide (lye). When mixed, it forms a chemical reaction called saponification, and it takes around 4-6 weeks for the soap to cure with this method. The main advantage of this method is that you can customize every ingredient as desired.
The melt and pour method is best suited for beginners. First, a pre-made base is bought, melted, modified with your favorite color and scent, and then poured into a mold. Since you’re using a pre-made base, you won’t need to handle any chemicals or undergo saponification—unlike the cold press method.
In the hot press method, you cook the soap to form a gel, which you then pour into a mold. This method also allows you to customize all the soap ingredients, similar to the cold press method.
The main difference between the hot and cold press methods is that the former uses external heat to form a quick chemical reaction, whereas the latter may take 4-6 weeks to cure the soap.
Rebatching is another method well-suited for beginners as it allows you to skip saponification. In this method, a pre-made soap is reprocessed to form a new soap that looks and smells different.
For example, you buy a bar of soap from the market, melt it, customize it with your favorite color and scent, and then pour it into a new mold. It will give a new life to the soap with your color, fragrance, and branding.
If you’re a beginner, you likely won’t know the best ways to begin making your soap, so you’ll need to invest in some education. You’ll need to know the best methods for making soap, how to buy supplies and protective gear, and what it takes to become a successful soap maker.
To learn these, you could start researching through Google or YouTube to find some free resources. But if you want to get started as quickly as possible, it’s a good idea to invest in a course from a reputable provider. Here are a few that you can check out:
The average price of a soap bar is around $5, while it costs about $1 to produce that bar, resulting in an 80% margin. However, this is just a starting point. You should base your prices on your own cost to produce your soap.
For example, if your soap costs $1.50 to make, you could either maintain an 80% margin and charge $7.50 or reduce your margin to 70% and charge a more competitive price of $5.
Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price point. Remember, the prices you use at launch should be subject to change if warranted by the market.
Generally speaking, females are the primary target market for soap as they tend to be more conscious of their skin and well-being, but males are also becoming more aware of their health. In either case, your customers will likely be more established, so you could find them on Facebook, LinkedIn, and Instagram.
There is also potential to make B2B sales to hotels and spas, but that may require customized soaps.
Operating your business from home in the early stages will help keep costs low, but as your business grows, you’ll likely need a production facility so that you can optimize your soap making. Find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .
When choosing a commercial space, you may want to follow these rules of thumb:
Here are some ideas for brainstorming your business name:
Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.
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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.
Here are the key components of a business plan:
If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.
Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.
Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!
Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to soap making.
If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.
Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your soap making business will shape your taxes, personal liability, and business registration requirements, so choose wisely.
Here are the main options:
We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.
Choose Your State
We recommend ZenBusiness as the Best LLC Service for 2024
The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.
Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.
The IRS website also offers a tax-payers checklist , and taxes can be filed online.
It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.
Securing financing is your next step and there are plenty of ways to raise capital:
Bank and SBA loans are probably the best options, other than friends and family, for funding a soap making business. You might also try crowdfunding if you have an innovative concept.
Starting a soap making business requires obtaining a number of licenses and permits from local, state, and federal governments. And you may need additional permits or licenses depending on the ingredients in your soap.
Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.
You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.
You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.
This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.
If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.
Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .
Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your soap making business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.
Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.
Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.
Here are some types of insurance to consider:
As opening day nears, prepare for launch by reviewing and improving some key elements of your business.
Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.
You may also want to consider industry-specific software such as SoapMaker to manage inventory and issue invoices. You can also use manufacturing tools like Odoo and MRPeasy to manage production processes and distribution.
Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.
You can create your own website using different website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.
Customers are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google.
Here are some powerful marketing strategies for your future business:
Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your soap meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.
Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your soap making business could be:
You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a soap business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been making soap for years and can offer invaluable insight and industry connections.
The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in soap making. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.
If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential employees for a soap making business include:
At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.
Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.
If you’ve made it this far, you’ve learned nearly all there is to know about starting a soap making business. It should be easy to sell soap since you don’t have to convince consumers that they need it. But for you to penetrate this saturated market, you’ll have to come up with unique products and be creative about marketing these.
You might want to consider making soap from all-natural and organic ingredients to answer the demand for sustainable products. You can also develop products targeted at a certain demographic. Whatever you decide, it’s time to get out there and chase your soap dreams!
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Have you always thought about launching that dream soap-making business, but clueless as to how to go about it?
Relax! This article will give you insight into what you need to get in place to fully launch your soap-making business.
First things first, you want to make sure you are very sure this business is perfect for you. You do not want to jump right in without getting acquainted with what will be required to make this business successful.
Here is how to start a soap manufacturing business.
This is why this article has highlighted below several things you must consider before starting up right away.
Before starting up your own soap-making business, you must learn how to make soap. If you really want to succeed in this business, you must learn the skills needed for making soap. Learn the process of making soap, including every detail about the business. Preferably, learn from a reputable soap-making business, watch online tutorials, read books, attend seminars, and get yourself prepared to fully launching your own business.
To make a basic soap, you do not require much. You only need a few ingredients for the recipe. However, you could make many different soaps just by tweaking the formula. For you to create your own unique soap, you may have to make experiments with many different soap ingredients such as color, scents, moisturizers, etc just to get that desired unique formula.
But first, you will have to determine your niche in this line of business. There are several niches out there in the soap-making business. A good way to find out your niche is to conduct a market survey to determine what your target market is interested in.
You will need to get the necessary equipment and ingredients for making your soap formula. There are several basic tools and ingredients you must possess to run your business. They include:
Part of developing your brand has been discussed above, which includes carrying out a thorough market survey to know what your target market really wants. Put yourself in the shoes of your prospective customers who are part of your target market, and develop your brand to suit their needs.
For example, if your market is targeted at people whose concern is on healthy living and natural products, your soaps will have to be created with all-natural ingredients free of anything artificial.
Also, you will have to create a very unique and catchy soap brand name . Make sure to be creative with this aspect as regards the brand name, the logo design, the packaging, and every other detail that will help make your brand unique and desirable.
Once you have fully developed your soap making the business into your desired brand, the next thing to worry about is how to sell your product, and who to sell it to. There are several channels through which you could sell your soap such as wholesalers (if you will be producing very large quantities) and retailers.
You could start by selling your product to friends and relatives at good prices. Your goal at this initial stage should not be centered on profit-making, rather on the quality of your soap. This is the time to offer your product to your friends and relatives for free sample tests to get genuine feedback.
Now is the time to set up your business. Setting up your business involves getting a good space large enough for your soap-making operation. You may start by leasing a space before you have enough cash to get your own space.
You will require enough capital to fully startup your soap-making business. The startup capital for starting up differs from one location to the other, and it also depends on other factors such as the scale, cost of equipment, leasing, etc.
To get close to an accurate figure regarding how much you will need to fully start up your business, you will have to carry out a feasibility study on the soap-making business.
Also, you must make sure of fulfilling all the legal requirements for starting up your soap-making business in your desired location.
Pricing is essential to your soap-making business.
As soon as you make your products available in the market, you want to do well to make sure you are selling at the right prices. You do not want to start by underselling your brand or selling at prices far higher than what is reasonable.
Make sure to have a realistic and reasonable price for your products. A good way to determine product price is by taking note of the cost of making one product and then setting the profit margin reasonably.
Promote, promote, promote!!! You may have a great product, but your target market may not get to know how great it is if you fail to promote your brand. Take your products to your customers. Create a website; create social media accounts for your brand just to reach your target market.
HOW TO MAKE LIQUID SOAP LIKE MORNING FRESH
Do you know how to make liquid detergent for home and commercial use? Liquid soap as the name implies is soap in liquid form. It is a cleansing agent and it is a multi-purpose cleanser. Liquid soap is also known as a liquid detergent.
It has the ability to emulsify oils and hold dirt in suspension.
What is the chemical formula for liquid soap?
1. PRODUCTION OF LAUNDRY SOAP.
As the name implies, laundry soap is the type of soap that is mostly used for cleaning our laundry. It should have a good foaming ability to clean the clothes properly. It is important to note that there are so many soaps on the market, but with the formulation given below and with good packaging, you can be sure to beat the competition.
Here is the equipment needed for the production, Do you know the function of sodium sulfate in soap making?
LIST: LUCRATIVE CHEMICAL BUSINESS IDEAS
Note that this equipment is only required when you want to go into large-scale production. For beginners, you can start producing with basic household tools and a few other cheap stuff. You will find these in the video tutorial.
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SOAP FORMULATION
Chemicals and their Quantity Caustic Soda 1KG Palm kernel oil 6 LITRES Soda ash 0.5KG Silicate 160 LITRES Sodium sulfate 160 LITRES Colorant TO TASTE Water 4.5 LITRES Fragrance TO TASTE Forming agent TO TASTE
SOAP MAKING PROCEDURE
2. PRODUCTION OF TOILET SOAP
Toilet soaps are soaps that are mainly used for bathing and as such must be foamy and have a very nice fragrance with attractive coloring. It must also feel good on the skin. Here are the basic toilet soap making ingredients:
EQUIPMENT REQUIRED
Same as in the production of laundry soap
FORMULATION TABLE
Chemicals required and their quantity Palm kernel oil 3 LITRES Caustic soda 1 KG Coconut oil 2 LITRES Bleached palm oil 1 LITRE Silicate 1 LITRE Colorant TO TASTE Perfume TO TASTE Titanium dioxide Glycerine PROCEDURE
Prepare the caustic soda solution as done in the laundry soap Pour all the oil into the mixer and start heating When it is warm, add colorant and mix properly till uniformly blend Add the caustic soda solution and continue boiling and stirring When all have blended, add sodium silicate and turn off the heater When the temperature drops, add the fragrance Stir slowly and pour into molds Allow hardening for 6-8 hours Shape, stamp, and package for the market
With these two tutorials, you can be in serious business. For the production of laundry soap, you need approximately ₦3000 to start up on a small scale and you are sure to make good returns in less than a week, depending on your market.
3. PRODUCTION OF MEDICATED SOAP
Medicated soap are soaps used for bathing, but also contain additives that help kill germs and other microorganisms. They can also have other functions like skin toning and age-defying agents.
Same as in the production of laundry soap FORMULATION TABLE
Chemicals required and their quantities Palm kernel oil 3LITRES Caustic soda solution 3 LITRES Coconut oil 2 LITRES Bleached palm oil 1 LITRE Sodium silicate 1LITRE Colorant TO TASTE Perfume TO TASTE Glycerine ¼ LITRES Tricolans (TCC) 1 TABLESPOON Borax Magnesium sulfate
4. PRODUCTION OF POWDERY DETERGENT
Powdery soap is mostly used in the washing of cloth, mopping floors, and many other applications that the user might deem fit. You are advised to ensure that you keep strictly to the formulation.
GUIDE: HOW TO START A DETERGENT BUSINESS
Same as in the production of laundry soap plus drier and pulverizer (mesh net)
Chemicals and the required quantity Palm kernel oil or fatty acid 4 LITRES Caustic soda 1 KG Soda ash 2 KG Hydrogen peroxide (H2O2) ½ LITRES Ammonium 30 MILI LITRES (MLS) Industrial salt (Na2CO3) 150 MLS Colorant TO TASTE Perfume TO TASTE Foaming agent 250 MLS Sulphuric acid 30 MLS
Prepare the caustic soda solution as described in the production of laundry soap and ensure that the density is at the stated value. Allow standing for three days (72 hrs) minimum. You can allow it to stand for more than three days if you want but should not use it when it is not up to 3 days. The reason why some powdery detergent is corrosive is that the caustic soda did not blend long enough in water before starting the production process. Add the soda ash to the caustic soda solution and stir very well until uniformly blended Pour the palm kernel oil into the mixture and add the colorant while stirring vigorously (only in a clockwise direction) till it blends well. Add the hydrogen peroxide, ammonium, industrial salt, fuming agent, and perfume into the mixture above. Pour into a dryer for drying or spread under the sun to dry After drying pulverize or grate and then sieve. Package into sachets for the market
5. PRODUCTION OF LIQUID DETERGENT
These are very powerful cleaning agents. They are more powerful than ordinary soap. It can be used for a variety of things ranging from laundry to dishwashing. You can start the production with a very small amount of money.
Mixer, weighing scale, graduated cylinder, stirrer
Chemical required and their quantity CDEA 500 GRAMS STPP 300 GRAMS (Do you know the function of stpp in soap making?) Table salt (Nacl2) 75 GRAMS SLES 1 KG Fragrance TO TASTE Colorant TO TASTE Water 8.5 LITRES
Measure out the required quantity of all the chemicals Put the SLES into the mixer and add little water to it Stir to smoothness To the solution above add 500 grams of CDEA and continue stirring to smooth. Add water occasionally as the need arises. Put the STPP in separate water and stir well Add the STPP solution into the mixer and continue stirring Dissolve the salt in a little amount of water and add to the mixer while continuing stirring Add the perfume and continue stirring Package the detergent in the right containers and start smiling at the bank. These materials and chemicals can be easily gotten in every state. To get it easily, just go to a secondary school and ask any of the science teachers or the principal where they buy their laboratory equipment and chemicals (acid, base, and salt) from. It is most likely those people will sell these chemicals or know those who sell around. I know some folks might be saying “well, I don’t have money to start up these businesses”.
Actually, you may be right and at the same time wrong. You need money to start up a business sure! But you can start up a business using other people’s money as well (OPM). A friend has organized a seminar in a polytechnic that fetched him close to 400k without spending a dime.
If I mention the name of the school, some people might know. All he did was present seminar materials and what he had to offer to the school SUG body.
They took over from there seeing he had something to offer and did the publicity on his behalf, got a hall for him, provided the sound system, and other logistics.
He simply went with my crew and did the talking and demonstration. At the end of the day, students paid for the seminar materials, the SUG got their commission, and he went smiling to the bank.
You too can start from there.
Production of Izal Germicide: How To Produce Izal Antiseptic
Let’s take a quick look at what a germicide is together. A germicide is any type of product that is designed to kill germs and bacteria on different types of surfaces. Many household cleaning products are formulated to function as a germicide. Over the years, many uses of germicide products have come into common use. HOW TO MAKE IZAL Some involve the utilization of basic germicidal and antibacterial products as a way of minimizing the chances of spreading colds or other forms of illness. Wherever there are people, there are bacteria. Since bacteria are invisible to the Unclad eye, their presence is usually unsuspected. Germicide, therefore, helps to rid the area of bacteria and germs that have the potential to cause harm to humans and other living things.
Germicide can be used to clean surfaces such as:
-Toilet -Sinks -Floors -Drains -Door Knobs -Counters and -Garbage cans, etc.
Summarily, germicides as disinfectants aid in maintaining a clean environment to help prevent the spread of harmful bacteria that may cause infections.
PLACES GERMICIDES CAN BE USED
Izal Booster Germicide as a disinfectant can be used in the:
¤Hospitals ¤Homes ¤Eateries, etc
PRODUCTION OF IZAL DISINFECTANT
The composition of the izal formulation (Ingredients Used in Making of Izal at Home – 10 Litres) Texapon…..2 tin milk cups Pine oil……4 tin milk cups Phenol……4 tin milk cups Lysol……..4 tin milk cups Izal booster.. .4 tin milk cups Carbolic Acid…4 tin milk cups Izal concentrate…..4 tin milk cup Whitener………2 tin milk cup Water…………5 liters
These are the basic chemical materials for izal production but what is izal concentrate?
I promised to explain our izal production process in units. Looking at the formula above, you notice that the texapon used is 2 cups, Whitner 2 cups, and our water is 5 liters while other ones are 4 cups each. Now, explaining this in units, I would say:
Texapon————2 units Pine oil————-4 units Phenol————-4 units Lysol—————4 units Carbolic acid——4 units Izal concentrate—4 units Izal booster——–4 units Whitener———–2 units Water—————5 units
From the above, let’s use texapon as our determinant factor. As in, the quantity of texapon to determine the quantity of other active ingredients of izal production and the total volume of the final product.
Here, you can use anything as your measurement (measuring tool). For instance, if you choose to use a spoon as your measurement, it means texapon is 2 spoons, whitener 2 spoons, then the rest 4 spoons.
If you now choose to use a bucket, it means two of those buckets of texapon, 2 buckets of whitener, and 4 buckets of the rest.
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PREPARATION OF IZAL GERMICIDE
-Pour the Texapon into a bowl -Add the pine oil and stir very well -Add the phenol and stir -Add the Lysol and stir -Add the booster and stir -Add 3 liters of water and stir -Use some quantity of water to dilute the carbolic acid before you add it to the mixture -Add the izal concentrate and stir -Also, use some water to dilute the whitener before you add it to the mixture and stir it together -Pour the remaining water and stir properly
Finally, package the product for use or sale.
You can get all the materials(chemical) for making izal in Nigeria at the Ojota chemical market. With just 5k you can start something, at least, on a small scale. For the plastic to use, the packaging is very important, you may just get any attractive plastic and have your own well-designed stickers on it. If you are buoyant enough, you may approach any plastic company for a customized one.
The function of all the chemicals used in the production of germicide.
On a good day, almost all the materials for izal production are disinfectants, except for a few like an izal booster, izal soap, and izal whitener. The izal booster is just to increase the quantity of your product while the whitener is to give it that white color look. So, the combination of all of the chemicals (antiseptics or disinfectant) is what gives you a powerful germicide.
Quickly, I will like to define An antiseptic as any chemical combination or solution that helps or has the ability to prevent infection by preventing the growth of micro-organisms. I have explained earlier in our germicide lesson that some bacteria are harmful while some are helpful.
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These bacteria are everywhere, I mean. Wherever you find human beings, you find them. They are said to be ‘micro’ because they are so small that they can’t be seen with the unclad (Unclad) eyes. So, our effort here is to get rid of the harmful ones.
Hence, our focus in this Dettol production process will be on how to mix or combine our chemicals in the right proportion to help us learn how to make Dettol liquid handwash.
The composition of Dettol (Antiseptic Ingredients)
Chemical Materials Needed in the Preparation of Dettol (Concentrate)
1. Texapon 2. Pine oil 3. Phenol 4. Chloroxylenol 5. IPA (Isopropanol) 6. Dettol colorant 7. Water
You notice some of the active chemicals used in the production of Dettol disinfectant (and germicide) are also mentioned here.
Materials And Quantity Needed For Production Of 1 Litre Of Antiseptic (Dettol Formula)
(Using tin milk cup as our measuring ingredients for making Dettol)
1. Texapon……..1/2 tin milk cup of texapon 2.Pine oil……..1 tin milk cup 3. Phenol………1 tin milk cup 4. Chloroxylenol…..1/2 tin milk cup 5. IPA (Isopropanol)…2 tin milk cups 6. Dettol colorant…As desired or quantity that will give you the exact color of Dettol (brown yellow). 7. Water………3 tin milk cups
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The chemical composition of Dettol ingredients in percentage as follows:
Texapon……. 5 0/0 percent Pine oil………9 o/0 Phenol……….9 o/0 Chloroxylenol….4.5 0/o IPA (Isopropanol)…12 o/0
To produce Dettol disinfectant: method of preparation of Dettol
Step 1. Turn the texapon into an empty bowl Step 2. Add the pine oil and stir properly Step 3. Add the phenol and stir also Step 4. Add the chloroxylenol and stir properly Step 5. Add the IPA (isopropanol) and stir thoroughly Step 6. Finally, add water to the content and stir properly.
The color should be the last thing to add. Just dissolve the color in water and add slowly till you obtain your desired color.
Now, you have just produced your own Dettol antiseptic. Go and buy Dettol no more!
Almost every average household has one form of antiseptic or the other to satisfy a diverse collection of sanitary needs. From disinfecting toilet seats to ridding bathing water of bad germs and purifying various items, Dettol and other antiseptics are just ideal.
Probably you intend to go into the production of antiseptics and you are like, ‘the required capital is usually on the high side’, ‘top-level education is required since it involves the use of chemicals, or ‘the return on investment is petty’.
Well, what if I told you that you are capitally wrong! First, it does not cost much to start the production of antiseptic, you do not need any specialized knowledge to go into the business, and the profit you stand to make can be overwhelming or perhaps you should take statistics of how many people regularly buy antiseptics, then you would realize.
And if you doubt me, go find out how much companies like Unilever make from sales of antiseptics like Dettol.
I must, however, emphasize that while you have great prospects of making it big in the industry, you must as well take precautions to avoid wastage and shortages that would increase your cost of production.
To be on the safe end of starting this business, some step by step approach on how to produce antiseptic.
We break the article into two parts. First of all, an introduction of all the items that are required in the process, and the production procedures.
Note that suppose you intend to produce 20 liters of Dettol, all you need do is double the quantities of the ingredients you used; and this applies when you intend to produce less.
Precautions When Handling Antiseptics
This article would be incomplete if a cautionary note is not included to guide prospective entrepreneurs that are looking into going into the production of antiseptics.
You must use the product for external purposes only, avoid its contact with sensitive organs such as the eyes, the tongue, and ensure not to inhale it. The reagents in the antiseptic have the capacity to cause injuries to animals if not handled carefully.
Finally, it is important to recognize the place of effective advertisement in the success of any startup. Your marketing power depends on how well you promote your business either through social media or traditional mouth-to-mouth advertisements.
FOR MARKETING, YOU CAN START WITH YOUR NEIGHBOURHOOD, CHURCH, WORKPLACE, MOTOR PARK, OR HOUSE-TO-HOUSE MARKETING. ALSO, NOTE THAT YOU WILL NEED GOVERNMENT APPROVAL TO ADD CREDENCE TO YOUR PRODUCTS.
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Last Updated: July 5, 2024 Approved
This article was co-authored by Shelley Williams . Shelley Williams is an Arts & Crafts Expert based in Long Beach, California. After a 20-year career as an educator, Shelley brought her love of education to the world of crafting and creating things. Shelley opened CRAFT + LIGHT, a creative arts studio, in 2019. Since then, Shelley has taught over 1000 people to make soap, wood signs, alcohol inks, candlemaking, bath bombs, and more. In addition to being a craft store, CRAFT + LIGHT hosts private parties, family birthday events, open studio events, and other types of craft demonstrations. Shelley partners with city governments to curate creative care packages for at-risk residents and is a partner of the Long Beach Black Health Collaborative funded out of the City of Long Beach. There are 17 references cited in this article, which can be found at the bottom of the page. wikiHow marks an article as reader-approved once it receives enough positive feedback. This article received 15 testimonials and 100% of readers who voted found it helpful, earning it our reader-approved status. This article has been viewed 309,525 times.
Making soap is a fun hobby that can turn into a full-time business or at least a way to make a little extra money. Homemade soaps, especially those that use organic ingredients or beautiful designs, are a hit with many customers since they are an inexpensive luxury and a popular gift-giving idea. To succeed at the soap making business, you will need to develop quality soaps, control your inventory and pricing, and market your products.
Thanks for reading our article! If you’d like to learn more about soap making, check out our in-depth interview with Shelley Williams .
If you want to start a soap making business, you will need a blender, a microwave, a mixing kettle, labelers, and wrappers. Plus, you’ll have to find long-term suppliers for your oils, molds, colors, and scents. Then, you should speak with an attorney and a tax advisor to make sure the business starts smoothly before you start building up stocks of soaps to sell. To learn how to determine pricing and advertise effectively, scroll down! Did this summary help you? Yes No
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Why A Thoughtful Business Plan Is Essential For Success
Starting a business is an exciting journey, full of opportunities and challenges. For women entrepreneurs, particularly those transitioning from corporate life to entrepreneurship, the path can feel daunting. But with the right roadmap (a well-thought-out business plan), you can navigate the uncertainties and set your business up for success.
A business plan is more than just a document; it's your blueprint for building and growing your business. It outlines your goals, strategies, and the steps you need to take to achieve them. A strong business plan not only guides your decisions but also communicates your vision to potential investors, partners, and employees.
Here’s why a business plan is crucial and how you can create one that will steer your business toward success.
1. clarifies your vision and objectives.
As you build out your business plan it forces you to think deeply about your business idea and if it’s a viable idea. What exactly are you trying to achieve? What are your short-term and long-term goals? By putting these thoughts on paper, you create a clear vision that will guide every decision you make.
Researching and writing a business plan requires you to analyze your market. Who are your competitors? Who is your target audience? What are the market trends? This understanding helps you position your business strategically and identify opportunities for growth.
Today’s nyt mini crossword clues and answers for tuesday, september 3, hoka labor day sale: 14 deals you don’t want to miss, 3. defines your strategy.
A business plan includes your marketing strategy, sales approach, and operational plan and outlines how you will achieve objectives. This strategic framework ensures that your efforts are aligned and focused on achieving your goals.
If you need financial support to start or grow your business, a well-prepared business plan is essential. Investors and lenders want to see a clear plan for how you will generate revenue and repay any loans. A business plan that demonstrates a thorough understanding of your industry and a solid strategy is more likely to attract funding.
A business plan serves as a reference point, helping you make informed decisions that align with your long-term goals. By consistently referring to your business plan, you ensure that every decision contributes to the overarching vision and objectives of your business, ultimately driving growth and success.
A business plan includes milestones and key performance indicators (KPIs) that allow you to track your progress. Regularly reviewing your business plan helps you stay on course, adjust your strategies as needed, and celebrate your successes.
The bottom line is that creating a business plan is a crucial step in turning your entrepreneurial dreams into reality. It’s your roadmap, guiding you through the complexities of starting and growing a business. For women entrepreneurs, especially those transitioning from a corporate career, a well-thought-out business plan can provide the clarity, confidence, and direction needed to succeed. Take the time to craft a business plan that reflects your vision and sets the foundation for a thriving, profitable business.
Melissa Houston, CPA is the author of Cash Confident: An Entrepreneur’s Guide to Creating a Profitable Business and the founder of She Means Profit . As a Business Strategist for small business owners, Melissa helps women making mid-career shifts, to launch their dream businesses, and also guides established business owners to grow their businesses to more profitably.
The opinions expressed in this article are not intended to replace any professional or expert accounting and/or tax advice whatsoever.
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September 3, 2024.
A great business proposal is like having an ace salesperson who never sleeps. It works around the clock, convincing clients why they should choose you over the competition.
A business proposal outlines your plan to solve a client’s problem or meet their needs. It explains what you can do, how you’ll do it, and why you’re the best choice.
Here’s how to write a business proposal that works. Learn everything from understanding your client’s needs to presenting your solution clearly—and creating proposals that turn potential clients into paying customers.
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A business proposal is a written proposal that explains how you can solve a problem or meet a need for another company or person. It’s a powerful tool companies use to win new clients and projects. Think of it as a mix between a sales pitch and a project plan.
Because it focuses on a specific business opportunity, learning how to write a solid business proposal is very different from learning how to write a grant proposal for a small business. It’s also different from learning how to write a business proposal for funding—more commonly referred to as a business plan—which is a broader document aimed at securing investment in your company.
In a business proposal, you lay out all the details of what you’re offering. This includes what you’ll do, how you’ll do it, when you’ll get it done, and how much it’ll cost. But it’s more than just a list of facts and figures. A good proposal tells a story about why your solution is the best one out there.
RELATED ARTICLE — How To Write a Business Plan: A Step-By-Step Guide
Business proposals come in different shapes and sizes. Some are short and sweet, while others are long and detailed. The length and style often depend on what you’re proposing and who it’s for. But no matter the size, the goal is always the same: to convince the reader that your company is the right choice for the job.
Let’s look at the main types of business proposals you may write:
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A great business proposal is like a well-organized toolbox. Each part has its place and purpose, working together to get the job done. Let’s look at the key sections you should include in your proposal to make it clear, convincing, and complete:
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Crafting a winning business proposal requires following some key steps to build a solid foundation. Here’s a guide to help you write a proposal that stands out and gets results:
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The best way to learn is by seeing real examples. Here’s one for a small landscaping company. It’ll show you how to put all the pieces together in a way that works. You can also use it as a business proposal template for your own proposals.
“Green Thumb Landscaping: Transforming Your Backyard into a Personal Oasis”
Prepared for: The Johnson Family
Date: July 1, 2024
By: Green Thumb Landscaping
Executive summary, your landscaping needs, our proposed solution, project timeline, cost breakdown, about green thumb, terms and conditions, next steps and closing remarks.
Green Thumb Landscaping will turn your ordinary backyard into a stunning outdoor living space. Our plan includes a custom patio, flower gardens, and a water feature, all designed to fit your family’s lifestyle and budget. With our expertise and your vision, we’ll create a backyard oasis for you to enjoy for years to come.
The Johnson family has a large but unused backyard. They want a beautiful outdoor space for relaxing and entertaining, but they’re not sure how to make the most of the area. The current space lacks visual appeal, functional areas for gathering, and proper landscaping to provide privacy and shade.
Week 1–2 : Design finalization and material ordering
Week 3–4 : Site preparation and patio installation
Week 5–6 : Landscaping and planting
Week 7 : Water feature installation
Week 8 : Irrigation system setup and final touches
Patio Installation : $8,000
Landscaping and Planting : $5,000
Water Feature : $3,000
Irrigation System : $2,000
_______________________
Total Project Cost : $18,000
Green Thumb has 15 years of experience creating award-winning landscapes. Our team includes certified horticulturists and eco-friendly design experts. We’ve completed over 500 projects, with a 98% customer satisfaction rate.
To transform your backyard, simply sign the attached agreement. We’ll schedule a final design meeting within a week and can start work within 14 days.
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Now that you know the basics of writing a business proposal, let’s look at some tips to make yours stand out from the crowd. Remember, a good proposal isn’t just about what you say, but how you say it.
Custom branding adds polish to any client-facing document. And that includes your invoices.
Invoice Simple ’s estimate and invoice templates are fully brandable to your business. We never add a watermark, so your invoices always look professional and match your brand. Start with a clean, modern template design, then simply add your logo.
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The headquarters of the U.S. Census Bureau is seen in Suitland, Md., Thursday, Aug. 29, 2024. (AP Photo/Brian Witte)
Former Maryland Gov. Larry Hogan speaks during an interview with the Associated Press, Tuesday, Aug. 27, 2024, in Annapolis, Md. (AP Photo/Stephanie Scarbrough)
Prince George’s County Executive Angela Alsobrooks, the Democratic nominee for U.S. Senate in Maryland, greets supporters on Friday, Aug. 23, 2024 in Riverdale Park, Md., after returning from the Democratic National Convention. (AP Photo/Brian Witte)
Former Maryland Gov. Larry Hogan poses for a portrait, Tuesday, Aug. 27, 2024, in Annapolis, Md. (AP Photo/Stephanie Scarbrough)
FILE - President Donald Trump, accompanied by Agriculture Secretary Sonny Perdue, signs an executive order during farmers’ roundtable in the Roosevelt Room of the White House in Washington, April 25, 2017. (AP Photo/Andrew Harnik, File)
WASHINGTON (AP) — Worries of being uprooted from their jobs have returned for Laura Dodson and other federal workers, who have long been the economic backbone of the nation’s capital and its suburbs.
During former President Donald Trump ‘s administration, her office under the U.S. Department of Agriculture was told it would be moving. About 75 people were going to be relocated to Kansas City, Missouri, Dodson said, but less than 40 actually moved. A rushed process that failed to consider the need to find homes, jobs for spouses and schools for children prompted some retirements, she said, and some took other federal jobs, hurting the agency in the end.
Now, with Trump proposing the relocation of up to 100,000 federal jobs from Virginia, Maryland and the District of Columbia under his Agenda 47 plan, concerns about being abruptly moved are again troubling federal workers. The Republican’s proposals stir anxiety in the midst of an unusually competitive U.S. Senate race in heavily Democratic Maryland that could determine control of the Senate, with even the Republican candidate calling the plans “crazy.” The proposals also could hinder Trump’s chances to win Virginia, a state he lost in 2016 and 2020, where a U.S. Senate seat widely seen as safely Democratic is also on the ballot.
“It’s causing a lot of anxiety, a lot of discomfort within the workforce, as you are faced with these strong, negative, anti-federal worker stances and this uncertainty of what might happen to your job, your home and your livelihood,” said Dodson, who is acting vice president of American Federation of Government Employees local 3403, which represents the USDA’s Economic Research Service.
President Donald Trump, accompanied by Agriculture Secretary Sonny Perdue, signs an executive order during farmers’ roundtable in the Roosevelt Room of the White House in Washington, April 25, 2017. (AP Photo/Andrew Harnik, File)
And concerns don’t end there. Federal workers also are worried about “Project 2025,” a proposed overhaul of the federal government crafted by longtime Trump allies that would eliminate thousands of jobs and remove civil service protections for some federal workers. The former president has repeatedly distanced himself from the proposal this summer.
But the plan still worries Michael Knowles. He said it calls for making the U.S. Citizenship and Immigration Services’ D.C. presence “skeletal, and agency employees with operational or security roles should be rotated out to offices throughout the United States.”
Knowles, who is president of AFGE local 1924, said most of his members took an oath to uphold the Constitution and faithfully administer the laws of the United States. He said the members, who all work in the National Capital Region, are committed to the mission of government service.
“And they would do what they need to do to carry out that mission,” Knowles said. “But I think the employees would look dimly on arbitrary or capricious decisions that didn’t seem to make any business or operational sense.”
Trump’s campaign did not return requests for comment.
The District of Columbia has the largest number of federal civilian employees, with about 160,700 jobs, according to the Congressional Research Service. Maryland and Virginia are in the top four jurisdictions, with about 138,940 in Maryland and 140,400 in Virginia. California has about 142,040.
The proposals to move a large number of federal workers infuriate local leaders in the suburbs of Washington in both Maryland and Virginia. In Maryland, a heavily blue state where Trump is deeply unpopular, it’s viewed by many as retaliation by the former president, who received only 32% of the vote there in 2020.
What to know about the 2024 Election
Trump made headlines while he was in office when he denigrated Baltimore, Maryland’s largest city, as a “disgusting, rat and rodent infested mess.”
Angela Alsobrooks , the chief executive of Prince George’s County who is the Democratic nominee in the Maryland U.S. Senate race, described Trump’s positions on the federal workforce “as yet another reason that we absolutely must put Donald Trump in the rearview mirror.”
“Former President Trump is a ruthless leader, retaliatory in all his ways, and what he talks about in terms of really harming federal workers is evil,” Alsobrooks said after returning from the Democratic National Convention last month.
Former Gov. Larry Hogan , her Republican opponent, condemned the relocation proposals as “crazy.” He said they “would be devastating to the region, the state of Maryland and bad for the federal government.”
“It’s like, you know, Trump trying to turn the federal government into one of his failed casinos, where he thinks he can do whatever he wants,” Hogan, who has long been one of the GOP’s fiercest Trump critics, said in an interview. “I think it would undermine our entire democracy.”
Businesses that provide services to the thousands of federal workers fear the ripple-effect threat of the proposed changes. At Census Auto Repair & Sales, for example, across the street from the U.S. Census Bureau’s headquarters in Suitland, Maryland, service manager Tay Gibson says his shop would feel the impact directly.
“I would hate to see the federal workers leave,” Gibson said. “That would be business leaving as well, and that would affect small businesses like myself.”
Libby Garvey, chair of the Arlington County Board in the Virginia suburbs of Washington, emphasized the potential hit on the local economy.
“If a large proportion of (tax payers) suddenly lose their jobs (or have to) move away, that takes a terrible, major hit to our local budget, which impacts our ability to pave the roads, make sure the water is clean, provide public safety, fire, police, emergency personnel and provide good schools,” Garvey said.
Karen Hult, a political science professor at Virginia Tech, said the move could harm Trump’s chances in Virginia.
“Federal workers around Northern Virginia, and in the D.C. metro area generally, are, in fact, a bit of a voting bloc,” Hult said “The other thing, of course, are all the contractors — the beltway bandits. They make a big difference, too.”
But Hult also said the idea of relocating federal workers could resonate with Virginians outside of the northern part of the state, who may feel a distrust of the D.C. bureaucracy.
Filipe Campante, a Bloomberg Distinguished professor at Johns Hopkins University who focuses on political economy and urban and regional issues, noted that there’s a reason why capital cities exist, with the presence of federal employees nearby. Physical presence, he said, is necessary for face-to-face interactions that are important to maintaining accountability.
While Trump and his supporters see the relocation as a positive in terms of moving the “deep state” away from the seat of government, Campante said it also has a downside.
“I think it is a positive factor for accountability that you have civil servants also operating as a check on political appointees, and this would be weakened by moving these people away from where the center of the government is, so I think from that perspective it would reduce accountability,” Campante said. “Obviously, then, it depends on whether you think this accountability is good or not.”
Witte reported from Annapolis and Suitland, Maryland.
Vice President Kamala Harris wants you to start a small business.
Harris is set to roll out another economic policy, focused on a new goal: boosting small business creation. Harris's goal — which she'll announce on Wednesday — is 25 million new business applications in her first term if elected.
That would outpace the over 18 million new business applications filed so far during the Biden-Harris administration, which comes amid a post-2020 business application boom . Harris aims to hack away at some of the red tape and startup costs new businesses face when they're setting up shop.
According to a Harris campaign official, Harris wants to bolster the tax deduction that small businesses can claim for initial startup costs. Some small business owners have to turn to creative funding measures to get their businesses off the ground, which can come with their own risks.
Harris's proposal would increase that startup deduction tenfold, upping it from $5,000 to $50,000; businesses would also be able to defer claiming it until they turn a profit — which is when they'd also likely encounter a larger tax burden.
The other aspect of Harris's plan hinges on easing the logistical burden on new entrepreneurs. It's no secret that many small businesses must wade through administrative red tape to finally get to their opening days .
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Harris's proposals include incentives for local governments to reduce their own red tape, creating a standard deduction for small businesses to ease the time spent on taxes, and chipping away at barriers in obtaining occupational licenses that can inhibit businesses or workers from crossing state lines.
Harris also wants to pour cash into small businesses: She wants to guarantee that a third of federal contract dollars will go to smaller businesses and set up a fund to help community banks cover the cost of interest for small businesses.
Harris previously called for a restoration of the expanded child tax credit — bringing it back up to $3,600 — and giving middle and lower-income parents a $6,000 credit in their child's first year of life.
How far a hypothetical future President Harris could get with major economic proposals will depend on the makeup of Congress. Attempts by President Biden to restore the child tax credit were stymied in the Senate; a gridlocked legislature might mean even more roadblocks for potential President Harris.
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Marketing Plan. Traditionally, a marketing plan includes the four P's: Product, Price, Place, and Promotion. For a soap making business plan, your plan should include the following: Product: In the product section, you should reiterate the type of soap-making company that you documented in your Company Analysis.
Writing a soap making business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan: 1. Executive Summary. An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and ...
Rose City Soap Company is seeking $350,000 in funding to launch its soap-making business. The capital will be used for funding capital expenditures, staffing, marketing expenses, and working capital. The breakdown of the funding may be seen below: Store design/renovation: $100,000. Equipment, ingredients, and supplies: $50,000.
It's not as fun as making soap, but these steps will give you a solid foundation for your business: 1. Create a business plan. A successful soap-making business starts with a solid business plan. Take the time to write down your business ideas, come up with a name you love, and get the necessary insurance.
In Conclusion. Starting a soap making business is a great way to turn your passion into profit. Remember to create a business plan, build your brand, carefully choose your ingredients, invest in quality equipment, and find your sales channels. With these tips, you'll be on your way to starting a successful soap making business.
Soap is an essential cleanliness and skin care product, making soap production a significant player in consumer goods. The daily operations of managing a soap production business involve: 1. Raw Material Procurement: Securing top-quality raw materials, including oils, fats, fragrances, and additives, is vital.
A soap making business plan is not just a professional document; it's a roadmap for planning, managing, and growing a soap making company. Here are a few key reasons why you need a soap making business plan: Defines your business goals, target market, ownership structure, marketing plans, and strategies to achieve long-term success.
Acquire necessary licenses and permits for soap making. 6. Open a business bank account and secure funding as needed. 7. Set pricing for soap making services. 8. Acquire soap making equipment and supplies. 9. Obtain business insurance for soap making, if required.
How to Write a Soap Making Business Plan in 7 Steps: 1. Describe the Purpose of Your Soap Making Business. The first step to writing your business plan is to describe the purpose of your soap making business. This includes describing why you are starting this type of business, and what problems it will solve for customers.
1. Conduct Soap Market Research. Market research is essential to growing a successful soap making business. It offers business ideas and insight into your target market, market saturation, optimal products and services, competitor soap makers, how to develop a soap making process, and more. Source.
A Sample Soap Making Business Plan Template 1. Industry Overview. Soap is a universal product that can be found in all homes, canteen, laundries, hotels and toilets et al. Soaps are used for washing and bathing hence the demand for soap is hardly affected by economic meltdown due to the important role the product plays in our daily lives.
Start a soap making business by following these 10 steps: Plan your Soap Making Business. Form your Soap Making Business into a Legal Entity. Register your Soap Making Business for Taxes. Open a Business Bank Account & Credit Card. Set up Accounting for your Soap Making Business.
1. Develop Your Soap Making Skills. Before venturing into business, hone your soap-making skills. Consider taking workshops, online courses, or experimenting with different recipes at home ...
A soap making business plan is essential for any entrepreneur looking to start or grow a soap making business. The plan should provide a detailed overview of the business, including the company description, market analysis, products and services, marketing and sales strategy, financial projections, and management team.
SAFEassure, LLC will produce a line of institutional liquid soaps with a time-sensitive dye blended into the mixture. The dye reacts with the hands during the lathering process, staining the hands a distinct color, then fading in under six minutes. The product will sell for approximately $90/case. (4 gallons/case)
5. The strategy section. When writing the strategy section of a business plan for your soap manufacturer, it is essential to include information about your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.
A basic setup for a small operation can cost around $1,000, while a more extensive setup for a larger business can cost upwards of $10,000. The type of equipment you need will depend on the type of soap you plan to make (cold process, hot process, melt and pour, etc.), as well as the volume you plan to produce.
1. Research the Competition. There are many other soap makers already in the business. Before you start your own soap making business, you need to learn who they are, what they make and where they sell. Also consider the competition you'll get from the manufacturers making commercial soaps for the big box stores.
Here's what you should know before you start a soap business of your very own: 1. You don't get to make soap all the time when you own a soap business. Most soapmakers start a soap business because they have become soapmaking addicts, churning out batch after batch of lovely handmade soap. That's fine, you do need to make the product to sell it ...
The soap-making business plan has also chosen a strategic location within the city to allow for faster distribution of products. With a diverse and unique product range, the soap making business plan template expects to realize an annual sales growth of 15-20%. 5.3 Product Pricing
Step 3: Brainstorm a Soap Company Name. Here are some ideas for brainstorming your business name: Short, unique, and catchy names tend to stand out. Names that are easy to say and spell tend to do better. Name should be relevant to your product or service offerings.
Prepare the caustic soda solution as done in the laundry soap. Pour all the oil into the mixer and start heating. When it is warm, add colorant and mix properly till uniformly blend. Add the caustic soda solution and continue boiling and stirring. When all have blended, add sodium silicate and turn off the heater.
Embossing the soap with letters or other forms. Wrapping the soap in special papers or ribbons. Creating a logo for your company. 5. Find suppliers. If you want to make soaps on a consistent scale, you will need a steady supply of oils, fats, scents, colors, wrappers, etc.
4. Secures Funding. If you need financial support to start or grow your business, a well-prepared business plan is essential. Investors and lenders want to see a clear plan for how you will ...
Vice President Harris's proposal to ban price gouging on food is making waves in economic circles as traditionalists and business groups fret about shortages, while other economists argue it …
Volkswagen is weighing whether to close factories in Germany for the first time in its 87-year history as it moves to deepen cost cuts amid rising competition from China's electric vehicle makers.
Harris is expected to propose measures aimed at making it easier for small business owners to operate. ... The plan would also add a new child tax credit of up to $6,000 for middle-class and lower ...
Now that you know the basics of writing a business proposal, let's look at some tips to make yours stand out from the crowd. Remember, a good proposal isn't just about what you say, but how you say it. Make It Look Good. Use a clean, professional design with plenty of white space. Choose easy-to-read fonts and use colors that match your brand.
Federal workers around nation's capital worry over Trump's plans to send some of them elsewhere. Federal workers around nation's capital worry over Trump's plans to send some of them elsewhere ... "But I think the employees would look dimly on arbitrary or capricious decisions that didn't seem to make any business or operational ...
Kamala Harris's next big economic proposal hinges on making it easier for you to start a small business. ... New business owners could get a $50,000 tax deduction under Kamala Harris's plan.