A Sample Liquid Soap
A Sample Liquid Soap
A Sample Liquid Soap
Okay, so we have considered all the requirements for starting a liquid soap and detergent production company.
We have analyzed and drafted a sample liquid soap and detergent marketing plan backed up by actionable
guerrilla marketing ideas for liquid soap and detergent production companies. So let’s proceed to the business
planning section.
Starting a business whose products are used on a daily basis is the sure way to go if indeed you want to spend
less effort in convincing people to make use of your products as a newbie in the industry.
If you are convinced that you have a winning formula for liquid soaps and detergents, then you should consider
launching your own production company. This business is still open for investors to come in and compete for the
available market in the industry.
If you have decided to start a liquid soap and detergent production company, then you should make sure that you
carry out thorough feasibility studies and market survey. Business plan is yet another very important business
document that you should not take for granted when launching your business.
Below is a sample liquid soap and detergent production company business plan that will help you successfully
launch your own business.
Businesses in the Soap, Washing Powder and Synthetic Detergent Manufacturing industry are involved in the
manufacturing of laundry soap, transparent soap, translucent soap, toilet soap, medicated soap, industrial soap,
soap flakes, soap powder and synthetic products. Synthetic products include household and industrial detergents
used for clothes washing, dish washing etc.
Research conducted by IBIS World shows that in the past five years, the Soap, Washing Powder and Synthetic
Detergent Manufacturing industry contended with steep competition from foreign-based soap manufacturers. The
report also shows that foreign-based manufacturers have inundated the market with low-cost soap products,
pressuring demand for domestically manufactured products.
IBISWorld also projected that in the coming years, as per capita disposable income rises, many consumers will
slowly shift to relatively high-cost, brand-name soaps and cleaning products. Additionally, downstream markets
such as restaurants, will require more cleaning products to comply with regulations and maintain cleanliness in line
with the rise in consumer foot traffic.
The Soap, Washing Powder and Synthetic Detergent Manufacturing industry is a thriving sector of the economy of
the United States of America and they generate over $43 billion annually from more than 4,251 registered and
licensed companies scattered all around the United States of America.
The industry is responsible for the employment of over 41,870 people. Experts project the industry to grow at a –
4.0 percent annual rate. Procter & Gamble and S.C. Johnson & Son Inc. are the leaders in the industry in the
United States of America.
Due to the high cost of manufacturing, marketing and distribution of soap, washing powder and synthetic
detergent, large corporations dominate the industry and despite the fact that there are big corporations who are
into the business, the fact remains that starting a small – scale soap, washing powder and synthetic detergent
production business has minimal barriers to entry, with low startup capital. Most players in the industry are small to
medium – size establishments that cater to the local community.
Some of the factors that encourage aspiring entrepreneurs to venture into starting a laundry detergent production
company is the fact that the is pretty huge and not seasonal. That makes it easier for entrepreneurs who are
interested in the business to come into the industry at any time they desire; the entry barriers are quite affordable
and any serious – minded entrepreneur can comfortably raise the startup capital without collecting loans from the
bank.
Over and above, the Soap, Washing Powder and Synthetic Detergent Manufacturing industry is a profitable
industry and it is open for any aspiring entrepreneur to come in and establish his or her business as long as you
are able to obtain the required chemical handling license.
You can choose to start on a small scale producing limited quantities of laundry detergents or you can choose to
start on a large scale producing laundry detergents, soap, washing powder and synthetic detergent with
distribution network and several outlets in key cities all around the United States of America.
Clean Deal™ Soap & Detergent Production Company, LLC is in the industry to produce liquid soaps and
detergents. We are also in business to make profit and at the same to give our customers value for their money.
We are aware that there are several soap and detergent production companies scattered all around the United
States, which is why we spent time and resources to conduct our feasibility studies and market survey. We have
mapped out plans to develop a far reaching distribution network for wholesalers of liquid soap and detergent
products all around Fort Smith – Arkansas and throughout the United States of America.
Beyond producing quality liquid soaps and detergents, our customer care is going to be second to none. We know
that our customers are the reason why we are in business which is why we will go the extra mile to get them
satisfied when they purchase our products.
Clean Deal™ Soap & Detergent Production Company, LLC will ensure that all our customers (wholesale
distributors) are given first class treatment whenever they visit our factory. We have a CRM software that will
enable us manage a one on one relationship with them also.
Clean Deal™ Soap & Detergent Production Company, LLC will be owned by a group of investors led by Terry
Jefferson. Mr. Terry Jefferson who is the Chief Executive Officer of the Company is Graduate of Chemical
Engineering and he holds a Master’s Degree in Business Management (MBA).
He has a Chemical Handler’s Certificate and over 10 years’ experience working in related industry as a senior
manager prior to starting Clean Deal™ Soap & Detergent Production Company, LLC. He will be working with a
team of professionals to build the business.
Clean Deal™ Soap & Detergent Production Company, LLC is going to run a standard soap and detergent
production company whose products will not only be sold in Fort Smith – Arkansas but also throughout the United
States of America. We are in the industry to make profits and also to give our customers value for their money.
Our vision is to establish a standard liquid soap and detergent production Company whose products will be not
only be sold in Fort Smith – Arkansas, but also throughout the United States of America.
Our mission is to establish a world class liquid soap and detergent production brand that will favorably compete
with leaders in the industry. We want to build a business that will be listed amongst the top 20 brands in the United
States of America.
Clean Deal™ Soap & Detergent Production Company is established to compete with other leading liquid soap and
detergent product brands in the industry. This is why we will put the right structure in place that will support the
kind of growth that we have in mind for the business.
We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to
work to help us build a prosperous business that will benefit all the stake holders. Profit-sharing arrangement will
be made available to all our senior management staff and it will be based on their performance for a period of ten
years or more depending how fast we meet our set target.
In view of that, we have decided to hire qualified hands to occupy the following positions;
Plant Manager
Responsible for overseeing the smooth running of HR and administrative tasks for the organization
Defines job positions for recruitment and managing interviewing process
Carries out induction for new team members
Responsible for training, evaluation and assessment of employees
Oversees the smooth running of the daily office and factory activities.
Merchandize Manager
Manages vendor relations, market visits, and the ongoing education and development of the organizations’
buying teams
Responsible for the purchase of chemicals and packaging materials
Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing
orders to vendors
Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
Responsible for supervising implementation, advocate for the customer’s needs, and communicate with
clients
Develops, executes and evaluates new plans for expanding sales
Documents all customer contact and information
Represents the company in strategic meetings
Helps to increase sales and growth for the company
Accountant/Cashier
Responsible for preparing financial reports, budgets, and financial statements for the organization
Provides managements with financial analyses, development budgets, and accounting reports
Responsible for financial forecasting and risks analysis.
Performs cash management, general ledger accounting, and financial reporting
Responsible for developing and managing financial systems and policies
Responsible for administering payrolls
Ensuring compliance with taxation legislation
Handles all financial transactions for the organization
Serves as internal auditor for the organization
Welcomes guests and clients by greeting them in person or on the telephone; answering or directing
inquiries.
Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a
personalized customer service experience of the highest level
Through interaction with clients on the phone, uses every opportunity to build client’s interest in the
company’s products and services
Manages administrative duties assigned by the manager in an effective and timely manner
Consistently stays abreast of any new information on the company’s products, promotional campaigns etc.
to ensure accurate and helpful information is supplied to clients
Receives parcels / documents for the company
Distributes mails in the organization
Operates the chemical mixer, vessels, crystalizing machines, burner and conveyor belt system et al.
Assists in packaging and loading liquid soap and detergent products into distribution trucks
There are several liquid soap and detergent manufacturing companies in the United States of America which is
why we are following the due process of establishing a business so as to compete favorable with them. We know
that if a proper SWOT analysis is conducted for our business, we will position our business to maximize our
strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront
our threats.
Clean Deal™ Soap & Detergent Production Company, LLC employed the services of an expert HR and Business
Analyst with bias in startup businesses to help us conduct a thorough SWOT analysis and to help us create a
business model that will help us achieve our business goals and objectives.
This is the summary of the SWOT analysis that was conducted for Clean Deal™ Soap & Detergent Production
Company, LLC;
Strength:
Part of what is going to count as positives for Clean Deal™ Soap & Detergent Production Company is the vast
experience of our management team, we have people on board who are highly experienced on how to grow a
business. So also our closeness to leading cleaning chemical production companies, large national distribution
network and of course our excellent customer service culture will definitely count as a strong strength for the
business.
Weakness:
A major weakness that may count against us is the fact that we are a new liquid soap and detergent production
company and we don’t have the financial capacity to engage in the kind of publicity that we intend giving the
business especially when big names like Procter & Gamble and S.C. Johnson & Son Inc.et al are already
determining the direction of the market.
Opportunities:
The opportunities available to liquid soap and detergent products manufacturing companies are enormous
because almost all Americans make use of liquid soap and detergent when washing. As a result of that, we to
position our business to take advantage of the existing market to create our own new market. We know that it is
going to requires hard work, and we are determined to achieve it.
Threat:
One of the major threats that we are likely going to face is economic downturn and unfavorable government
policies. Another threat that may likely confront us is the arrival of a new production company in same location
where ours is located.
If you are conversant with trends in the industry, you will quite agree that despite the fact that there are
competitions in different stages of the industry, most liquid soaps and detergents production company are
leveraging on creativity in terms of packaging and marketing to continue to stay afloat.
Lastly, our liquid soap and detergent company will adopt eco – friendly approach towards the production and
packaging of its products. As a matter of fact, the adoption of eco-friendly practices will likely persuade
environmentally conscious consumers to buy its products.
When it comes to selling liquid soap and detergent, there is indeed a wide range of available customers. We are in
business to engage in wholesale distribution and to retail our liquid soap and detergent to the following groups of
people;
A quick preview of the industry reveals that the market has become much more intensely competitive over the last
decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in
this industry. We are aware of the competition and we are prepared to compete favorably with other liquid soap
and detergent production companies in Fort Smith – Arkansas.
Part of what is going to count as competitive advantage for us is the vast experience of our management team. So
also closeness to some of the largest cleaning chemical manufacturing plants, our large and far reaching national
distribution network and of course our excellent customer service culture will definitely count as a strong strength
for the business.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our
category in the industry, meaning that they will be more than willing to build the business with us and help deliver
our set goals and objectives. We will also give good working conditions and commissions to freelance sales agents
that we will recruit from time to time.
Liquid Soap & Detergent Production Business Plan – SALES AND MARKETING
STRATEGY
Sources of Income
Clean Deal™ Soap & Detergent Production Company, LLC is established with the aim of maximizing profits in the
industry and we are going to ensure that we do all it takes to sell our liquid soap and detergent to a wide range of
customers.
Sales Forecast
When it comes to liquid soap and detergent production company, if your products are well – packaged and
branded and if your production plant is centrally positioned and easily accessible, you will always attract customers
cum sales and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in Fort Smith – Arkansas and every city where our liquid
soap and detergent will be sold and we are quite optimistic that we will meet our set target of generating enough
profits from the first six months of operation.
We have been able to examine the soap, washing powder and synthetic detergents production industry, we have
analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below
are the sales projections for Clean Deal™ Soap & Detergent Production Company, LLC. It is based on the location
of our business and other factors that relate to medium scale startups in the United States;
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t
be any major economic meltdown and there won’t be any major competitor offering same products as we do within
same location. Please note that the above projection might be lower and at the same time it might be higher.
Marketing Strategy and Sales Strategy
Before choosing a location to start Clean Deal™ Soap & Detergent Production Company, LLC and also the kind of
liquid soap and detergent products to produce, we conducted a thorough market survey and feasibility studies in
order for us to penetrate the available market in our target market location.
We have detailed information and data that we were able to utilize to structure our business to attract the number
of customers we want and also for our products to favorable compete with other leading brands in the United
States of America.
We hired experts who have good understanding of the soap, washing powder and synthetic detergents production
industry to help us develop marketing strategies that will help us win a larger percentage of the available market in
Fort Smith – Arkansas and other cities in the United States of America.
In summary, Clean Deal™ Soap & Detergent Production Company, LLC will adopt the following sales and
marketing approach to sell our liquid soap and detergent;
Introduce our liquid soap and detergent brand by sending introductory letters to residents, merchants,
retailers and other stakeholders in Fort Smith – Arkansas and other cities both in the United States of
America
Engage in roadshows in targeted communities from time to time to sell our products
Advertise our products in community based newspapers, local TV and radio stations
List our business and products on yellow pages’ ads (local directories)
Leverage on the internet to promote our liquid soap and detergent brand
Engage in direct marketing and sales
Encourage the use of word of mouth marketing (referrals)
Liquid Soap & Detergent Production Business Plan – Publicity and Advertising Strategy
Clean Deal™ Soap & Detergent Production Company has a long term plan of distributing our liquid soap and
detergent in various locations all around the United States of America which is why we will deliberately build our
brand to be well accepted first in Fort Smith – Arkansas before venturing out.
Here are the platforms we intend leveraging on to promote and advertise Clean Deal™ Soap & Detergent
Production Company, LLC;
Place adverts on both print (community based newspapers and magazines) and electronic media
platforms
Sponsor relevant community programs
Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, et al to promote our
liquid soap and detergent brand
Install our billboards in strategic locations all around major cities in the United States of America
Engage in roadshows from time to time in targeted communities
Distribute our fliers and handbills in target areas
Position our Flexi Banners at strategic positions in the location where we intend getting customers to start
patronizing our products.
Ensure that our products are well branded and that all our staff members wear our customized clothes,
and all our official cars and distribution vans are customized.
Our prices will conform to what is obtainable in the industry but we will ensure that within the first 6 to 12 months
our products are sold a little bit below the average price. We have put in place business strategies that will help us
run on low profits for a period of 6 months; it is a way of encouraging people to buy into our brand.
Payment Options
The payment policy adopted by Clean Deal™ Soap & Detergent Production Company, LLC is all inclusive because
we are quite aware that different customers prefer different payment options as it suits them but at the same time,
we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Clean Deal™ Soap & Detergent Production Company, LLC will make available
to her clients;
In view of the above, we have chosen banking platforms that will enable our clients make payment without any
stress on their part.
Starting a standard liquid soap and detergent production company is indeed capital intensive because the amount
required here is quite huge. The bulk of the startup capital will be spent on leasing or acquiring a facility and also in
purchasing chemical mixer, vessels, crystalizing machines, burner and conveyor belt system, protective gears, a
mini lab and good drainage system.
These are the key areas where we will spend our startup capital;
The Total Fee for Registering the Business in the United States of America – $750.
Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S
machines and other software) – $1,300.
Marketing promotion expenses for the grand opening of Clean Deal™ Soap & Detergent Production
Company, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the
total amount of – $3,580.
The cost for hiring Business Consultant – $2,500.
The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total
premium – $2,400.
The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $135,000.
The cost for construction of a standard liquid soap and detergent production plant – $100,000.
Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
The cost for Start-up inventory – $80,000
The cost for store equipment (cash register, security, ventilation, signage) – $13,750
The cost of purchase of distribution vans – $60,000
The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, Fax Machines, tables
and chairs et al) – $4,000.
The cost of launching a website – $600
Miscellaneous – $10,000
We would need an estimate of $500,000 to successfully set up our liquid soap and detergent production plant in
Fort Smith – Arkansas.
Generating Startup Capital for Clean Deal™ Soap & Detergent Production Company, LLC
Clean Deal™ Soap & Detergent Production Company, LLC is a family business that is owned and financed by
Terry Jefferson and other business partners. They do not intend to welcome any other business partner which is
why he has decided to restrict the sourcing of the startup capital to 3 major sources.
Generate part of the startup capital from personal savings and sell of stocks
Source for soft loans from family members and friends
Apply for loan from the bank
N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family
members $50,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the
papers and documents have been signed and submitted, the loan has been approved and any moment from now
our account will be credited with the amount.
Liquid Soap & Detergent Production Business Plan – Sustainability and Expansion
Strategy
The future of any business lies in the number of loyal customers they have, the capacity and competence of their
employees, their investment strategy and the business structure. If all of these factors are missing from a business
(company), then it won’t be too long before the business closes shop.
One of our major goals of starting Clean Deal™ Soap & Detergent Production Company, LLC is to build a
business that will survive off its own cash flow without the need for injecting finance from external sources once the
business is officially running.
We know that one of the ways of gaining approval and winning customers over is to retail our liquid soaps and
detergents a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit
margin for a while.
Clean Deal™ Soap & Detergent Production Company, LLC will make sure that the right foundation, structures and
processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is
designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the
industry; they will be more committed to help us build the business of our dreams.
Check List/Milestone