Are you about starting a nylon production business? If YES, here is a complete sample nylon production business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a nylon production business. We also took it further by analyzing and drafting a sample nylon production business marketing plan template backed up by actionable guerrilla marketing ideas for nylon production businesses. So let’s proceed to the business planning section.
Starting a nylon production business is one of the most lucrative businesses that any entrepreneur in Nigeria can go into and make lots of profit within a short period of time, due to the high demand for nylon and nylon materials from individuals and businesses who have the need to package items for domestic and industrial purposes.
The nylon business is easy to start-up and as a result, more innovative entrepreneurs have been going into the business. There are basically two types of nylon that are being produced depending on the intended purpose of the nylon. Low density nylon is used to wrap food, seal water as well as package clothes, while high density nylons are used industrially and commercially.
If you intend starting this kind of business, you would require a standard business plan. Writing a business plan might not be so easy and it is for this reason that a sample nylon production business plan is written for you.
A Sample Nylon Production Business Plan Template
1. Industry Overview
The demand for nylon is not only very extensive but is something that is used daily globally. This therefore means that the nylon production industry has a significant economic impact in most countries, especially here in Nigeria. Nylons are used for various purposes ranging from domestic purpose such as; bagging, wrapping and covering, shopping edible and non-edible products to business and industrial purposes.
Thick nylon forms are used in packaging biscuits, large nylons are mostly used by laundry operators and boutique owners to package clothes for clients,the very large ones are used to make tarpaulins and tents, while the thickest ones are used to produce shopping and school bags.
The capital requirement for starting this kind of business in Nigeria would largely depend on the financial capability of the investor as well as what scale he or she intends to start the business. This is because the cutting and sealing machines used in the production of nylons come in different sizes and also has different production capacities.
There are two kinds of machines that can be used; while the locally fabricated machine can carry out same task, it will have a smaller production capacity when compared to a fully automated nylon producing machine.
2. Executive Summary
Eddie Nylon Production Ventures is a nylon production business that is not only fully registered with the Corporate Affairs Commission (CAC) but licensed here in Lagos Island – Lagos State, Nigeria. We have fulfilled all the necessary requirements from the state and local governments here in Lagos Island.
Our location here in Lagos Island is central and strategic and we intend to produce nylons of various sizes, styles and types; produce customized nylon bags, offer training as well as consultancy and advisory services in our aim to generate as much income as we can to boost our bottom line and sustain our business.
We know how important our customers are to us and so we intend to offer customer-centric services to all our various customers, so that we can grab a large share of the market and effectively compete against our competitors. We will ensure that we are attentive to the wants and needs of our customers. We also intend to reward all our loyal customers every once in a while especially those that help refer us to others.
Our vision is to ensure that we produce quality nylons for all our customers here in Lagos state and the entire Nigeria as well. We hope to become one of the foremost nylon producers not only in Lagos State but in the of whole Nigeria and to ensure that we are able to achieve this, we intend to build a solid business structure by hiring only competent, capable and experienced employees to help handle our business.
Our employees not only come with the needed experience and competence, they are also very well paid, better than what start-ups such as ours are paying their employees. Also, our facility is one that is not only easily accessible to all our employees but also very conducive for them as well.
Finally, our Chief Executive Officer, Mr. Eddie Ovruwem is one who has the experience as well as managerial and technical knowledge about this business. Mr. Eddie Ovruwem owns and runs the business and has a B.Sc. in Production Technology from University of Lagos and a Post Graduate Management (PGD) degree in the same University of Lagos. His over 10 years experience will be highly beneficial to us as a business.
3. Our Products and Services
Eddie Nylon Production Ventures is a standard and fully licensed nylon production business that has been established with the sole intention of generating revenue and maximizing profit in the production and manufacturing industry here in Lagos Island – Lagos State.
Therefore, the products and services that we intend to make available to our various customers are;
- Nylon production of different types, sizes, shapes and thickness
- Customized nylon production
- Consultancy and advisory services
- Training
4. Our Mission and Vision Statement
- Our vision is to ensure that we produce quality nylons for all our customers here in Lagos state and the entire Nigeria as well. We hope to become one of the foremost nylon producers not only in Lagos State but in the whole of Nigeria.
- In order to achieve our vision, we intend to source for capable and proficient employees who understand our vision and the nylon production business to help run our business. We also intend to purchase the right equipment that will allow us produce quality nylon and become the foremost nylon producers here in Lagos Island – Lagos, Nigeria.
Our Business Structure
Our desire to build a leading and standard nylon production business here in Lagos Island has shown us the need to build a solid business structure that will allow our business to run with little or no hitches. Therefore, in order for us to achieve our aim of being the best, we intend to source for and hire only the best employees to work with us here at Eddie Nylon Production Ventures.
Knowing how stiff competition is in this industry, we pay a high priority to our customers because we understand that without them we would not be in existence, and so our management team which is made up of professionals know how necessary it is to ensure that our brand is communicated positively at all times and that we imbibe an excellent customer care attitude if we intend to retain a huge share of our target market.
Asides our management team, we intend to have a work force that is dedicated to ensuring that we are able to attain our goals and objectives.
Our employees when hired will be drilled on the importance of their roles and tasks no matter how lowly it might seem and that everyone that works for us is very important. Due to the fact that we would be offering additional services to our core service, we will hire more than necessary to help fulfill our goals.
Therefore, Eddie Nylon Production Ventures will hire the following people in its efforts to build a solid business structure;
- Chief Executive Officer
- Human Resources and Admin Manager
- Production Manager
- Machine Operators
- Store Manager
- Accountant/Cashier
- Marketing and Sales Team
- Front Desk Officer
- Cleaner
- Driver
5. Job Roles and Responsibilities
Chief Executive Officer
- Makes the overall decision that would affect the overall growth of the organization
- Evaluates the success of the organization and removes ineffective policies
- Prepares the overall budget for the organization
Human Resources and Admin Manager
- Ensures that administrative function of the organization is being run efficiently
- Sources for, interviews and hires capable employees on behalf of the organization
- In charge of disciplining and firing workers who aren’t complying with organizational policies and directives
Production Manager
- Ensures that the production aspect of the organization is effectively run
- Ensures that staff on the production floor follow company guidelines and policies
- Evaluates the performance of workers from time to time and ensures that those that are hardworking are duly rewarded
Machine Operators
- Adequately prepares the machine before each production
- Ensures that the machine is run according to standard production procedures
- Cleans the machines and carries out preventive maintenance
Store Manager
- In charge of monitoring inventory that enter and leave the store
- Ensures that the store is adequately ventilated and secured against trespassers
- Ensures that the store is run and being maintained under the same standard as the rest of the facility
Accountant/Cashier
- Prepares all the financial information, reports, budgets and statements on behalf of the organization
- In charge of administering payrolls and daily cash vouchers on behalf of the organization
- Carries our financial forecast and analysis on behalf of the organization
Marketing and Sales Team
- Conducts market survey in order to determine new target market on behalf of the organization
- Develops effective marketing strategies aimed at generating sales
- Meets with high level clients in order to negotiate for contracts on behalf of the organization
Front Desk Officer
- Liaises with clients on behalf of the company by attending to their requests, orders, feedbacks and complaints
- Embodies the customer corporate culture on behalf of the organization by ensuring that all clients are well treated
- Remains updated about industry trends as well as company’s policies in order to give clients accurate information at all times
Cleaner
- Ensures that the work premises is clean before the start of work daily
- Carefully cleans the machines used for operations according to specifications
- Carries out any other duties as assigned by the management
Driver
- Supervises and helps load and offload nylon products either at the company or for a client
- Carries out other official errands on behalf of the company
- Ensures that the truck is kept clean at all times and carries out light preventive maintenance on the truck as well
6. SWOT Analysis
Starting a nylon production business may look easy start up but it is a business that requires careful study so that one doesn’t waste time and money.
In regards to this, we have engaged the services of a reputable business consulting firm here in Lagos Island with the knowledge of our kind of business, to look through our business concept and help us determine if we are likely to succeed in this business and be able to compete favorably against our competitors.
The business consultant that we hired helped us look through our business concept by using the popular Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis. The result of the SWOT analysis that was therefore conducted on behalf of Eddie Nylon Production Ventures is as follows;
- Strengths
The fact that we are offering advisory services and training in addition to producing several sizes and types of nylon can be regarded as an additional strength for our business, as it allows us to penetrate and have a large share of the target market, while also effectively competing against our competitors.
We are centrally located in one of the busiest areas here in Lagos Island and close to the Eko Idumota market where there are a lot of businesses that require our services. Our employees are the best in the sector as they are not only experienced but are dedicated and committed to ensuring that we attain all our goals and objectives.
Finally our chief executive officer is a highly experienced man and knows all the technicalities surrounding the business both in production as well as managing the business overall. We are confident that with him, we will be able to attain all our goals and objectives.
- Weaknesses
Because we are relatively new in the field, we would have to go the extra length in making sure that people get to be aware of our company and the services we offer. We are also starting off with less finances and few staff which makes us a bit weak especially when compared to the already established nylon producing businesses not only here in Lagos Island but in other parts of Lagos State close as well.
- Opportunities
There are several opportunities available to us because not only are we centrally located here in Lagos Island – Lagos State, we are also offering other services in addition to our nylon production that will see us have a large share of the target market while increasing our sources of revenue.
- Threats
Every business faces threats every now and then and our business is not different, we however, have plans in place to enable us handle all the threats that we are likely to face. Therefore the threats we are likely to face arise from having a competitor offering same services as we do. Another threat that we are likely to face is customers turning to cheaper alternatives such as paper bags.
7. MARKET ANALYSIS
- Market Trends
One of the trends in this industry is that more entrepreneurs and industries are springing up each day in a bid to bring forth new and better ways to produce nylon , in a bid to stand out among its competitors. This has seen a sharp increase in the making of nylon and also in the raw materials used in producing nylon.
There are two types of nylon products, low density and high density nylons and both are used for different purposes both domestically and industrially.
8. Our Target Market
Knowing our target market is very important to our business even though we can say that the whole Nigeria makes use of nylon at one point or the other in their lives.
We have therefore decided to conduct a market survey that will allow us identify who our target market is, what they expect from us and what we should expect from them as well. The reason for the market survey is that we would be able to draft effective marketing strategies when trying to attract those in this target market.
Therefore those that we intend to offer our products and services to are; retailers and wholesalers of non-consumable goods, market traders, households, fast food companies, fashion sector, pharmacies and chemists, laundry outfits, bakeries and confectionery stores, retailers and wholesalers of consumable goods, educational institutions, health institutions, and financial institutions.
Our competitive advantage
The nylon production business is one that is a highly competitive market as most entrepreneurs have also gone into the business with the intention of getting a market share for themselves and maximizing profit. This has led to the saturation of the nylon production business.
Our aim is to ensure that we become one of the most preferred brands by our various customers here in Lagos State and in order to do this and stand out, we have laid down strategies that would make us compete favorably against our competitors.
Our first competitive advantage is that our location in Lagos Island is centrally located, therefore making it easy and convenient for our numerous customers to get to us.
We are not like most nylon production businesses that treat their customers anyhow, therefore knowing and understanding how important our customers are to us, we take great pleasure in ensuring that our customers are treated right.
We listen to their feedback and complaints and attend to them as soon as possible. We also offer our loyal customers incentives especially those who refer others to us, this actions has seen us retain a huge share of our target market.
Knowing how important it is to build a solid business structure, we intend to ensure that we source for and hire experienced and competent employees who not only understand the industry but also understand how best a start-up like ours can become a force to be reckoned with nationally.
Our employees are aligned with our corporate goals and philosophies and are dedicated and committed to ensuring that we are able to achieve all our goals and objectives.
Finally, our employees are the best paid across start-ups such as ours here in this industry. Not only do we pay our employees well, but we also have great welfare and incentive packages that will allow them remain committed to working and improving their productivity rate on behalf of the company.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Eddie Nylon Production Ventures is established like any other business to generate revenue and maximize profit in the manufacturing industry. We are therefore going to do all it takes to ensure that we generate enough revenue from our core and additional businesses that will boost and sustain our nylon production business.
Eddie Nylon Production Ventures intends to therefore generate income by offering the following products and services;
- Nylon production of different types, sizes, shapes and thickness
- Customized nylon production
- Consultancy and advisory services
- Training
10. Sales Forecast
The fact that everyone uses nylon already shows that there will always be a constant demand for our nylons from our various customers. Our nylon production business is one that is strategically positioned in order not to only attract customers but to also increase the revenue that our business will make.
Our physical location in Lagos Island places us in central Lagos where there is a great hustle and bustle of traders and other businesses like that.
Our position therefore makes it possible for us to not only generate enough revenue but to also make enough profits within our first year of business that will allow us to sustain and grow our business to achieve all our set goals and objectives.
In order for us to give an accurate sales forecast regarding our business, we have critically examined the nylon production industry in order to analyze what our chances and likelihood of surviving in the industry is. Therefore our sales projections are based on certain information and data available in the industry and peculiar to start-ups such as ours here in Lagos – Nigeria.
Below therefore are the sales projection for Eddie Nylon Production Ventures based on certain assumptions as well as other factors relating to small and medium scale enterprises here in Lagos – Nigeria;
- First Fiscal Year-: N2,000,000
- Second Fiscal Year-: N3,500,000
- Third Fiscal Year-: N6,000,000
N.B: It is worthy to note that the above sales projection was done based on what is obtainable in the industry for the defined period. The assumptions are based on the act that there won’t be any competitor close to us and offering same services as us.
Also, the sales projections were based on the fact that people would not turn to substitutes like paper bags. Should any of these factors change, it would cause an increase or decrease in the stated figures that we are projecting for the defined period.
- Marketing Strategy and Sales Strategy
Marketing is a very important aspect of any business and it is always taken seriously by entrepreneurs and business owners as this is the aspect of the business where revenue that will sustain and grow the business is gotten from. Marketing takes different forms which is why it is necessary to understand your target market before drafting marketing strategies and setting a marketing budget.
Asides from generating revenue for a business, marketing also ensures that awareness is created for a business. Conducting a market research is therefore necessary before writing out your marketing strategies. A market research will allow you understand the target market, know how well to position your business in order to penetrate the market and gain a large share for your business.
We will engage the services of a marketing consultant who thoroughly understands the business to help us draft marketing strategies that will be very effective for our business and enable us to compete favorably against our competitors.
We will also empower our marketing and sales team to review ineffective marketing strategies and ensure that they are able to deliver on our corporate sales goals. The following therefore are the strategies that we intend to adopt in ensuring that we market our products and services to our target market;
- Ensure that we introduce our nylon packaging business formally to various corporate customers, wholesalers and other stakeholders in the industry.
- Start our nylon production business by throwing a party that will not only generate interest but increase awareness for our business.
- Place adverts for our nylon production business on radio, television stations and in newspapers.
- Empower our sales and marketing team to engage in direct marketing.
- Position our signage and flexi banners in strategic locations here in Lagos Island and all over Lagos State as well.
- Use our social media platforms such as Facebook and Twitter to market our product and services as well as on popular blogs and websites.
11. Publicity and Advertising Strategy
Due to the fact that the nylon production business is a competitive one, we intend to engage in massive and effective publicity strategies in order to not only create the right awareness for our business and generate the needed revenue that will sustain and grow our business, but also to enable us to compete favorably against other nylon production companies here in Lagos Island – Lagos State.
Our intention of exploring what publicity means are available to us, have allowed us to engage the services of a reputable business consultant here in Lagos, who fully understands the industry and the kind of business we run and will therefore create effective publicity strategies that will enable us to positively communicate our brand to our target market.
Therefore the various platforms that we will deploy to promote and increase awareness for Eddie Nylon Production Ventures are;
- Ensure that we place adverts in newspapers and pay for advert spots on radio and television stations here in Lagos State.
- Become one of the sponsors of a popular radio or television program in order to increase more awareness about our brand.
- Distribute our handbills and fliers in various strategic locations all around Lagos State.
- Create a website and use that to promote our business.
- Use our social media platforms such as Facebook and Twitter to promote our nylon production brand.
- Advertise our nylon production business on popular blogs and websites so as to increase awareness for our nylon production business.
12. Our Pricing Strategy
Determining the right price for our nylon products will be very simple as we would not need to deploy any detailed pricing strategy to sell our nylons. Our nylons will be sold depending on several factors such as the thickness, the purpose for the nylons, our overhead and running costs and what our competitors are offering here in Lagos Island.
This is not to say however that we would not give our customers, both existing and potential, discounts for our nylon products from time to time. In fact, we intend to sell our nylons less than what the usual rate is during the first month of starting the business here in Lagos Island.
The discounted prices that we intend to offer for our products will in no way affect our revenue and profits. Further analysis on this decision actually shows that we would be generating more revenue during this period.
- Payment Options
Due to the large target market for our products, we have come up with several payment options that are in line with ongoing trends and that will be very convenient for our various customers here in Lagos State and all over the whole Nigeria as well.
Therefore, the payment options that we intend to make available for Eddie Nylon Production Ventures are;
- Payment via cash
- Payment via check
- Payment via Point of Sale (POS) Machine
- Payment via online payment portal
- Payment via online bank transfer
- Payment via bank draft
The above payment options for our various customers are varied and were deliberately chosen due to the various customers that our nylon production business will be catering to. The payment options will not only be convenient for our customers but also stress-free for our business as well.
13. Startup Expenditure (Budget)
The amount that will be required in setting up and running a nylon production business will depend hugely on what scale you intend starting with. This is to say that if you intend to supply on a massive scale, you would need stronger and bigger machineries, thereby increasing your cost than that of the entrepreneur who intends to start supplying just a segment.
Knowing who your target market is will be instrumental in deciding how big or small you want to start your business, thereby influencing how you intend to source for the start-up capital.
Other things that would need to be considered apart from the equipment is the facility you intend to use for the business, the delivery van you intend to use, and paying your employees for a certain period of time till the business makes enough profit to start paying them itself.
The good thing about starting a nylon production business is that once you are able to procure the equipment needed to start producing nylon at the beginning of your business, your cost in the preceding months will be drastically reduced.
Therefore, the below listed requirements are what we would need to start our nylon production business here in Lagos Island – Lagos State;
- Total fee for registering the business as a venture here in Lagos State – N25,000.
- Getting the necessary licenses and permits, accounting and inventory software as well as other legal expenses – N50,000.
- Cost of hiring a business consultant – N30,000.
- Insurance coverage (General liability, workers’ compensation and property insurance) – N25,000
- Marketing expenses for the promotion of the grand launching of Eddie Nylon Production Ventures as well as general marketing promotion expenses – N30,000
- Cost of renting a warehousing facility for use for a period of two years and carrying out the necessary renovations – N400,000.
- Cost of getting raw materials for start-up inventory (Lupine, Master Berg, DOW, Escorene, polyethylene and B.A.S.F) – N100,000.
- Cost of procuring the necessary equipment and machinery needed for nylon production ( Extruder blowing machine, cutting machine, and punching machine) – N1,000,000.
- Operational cost for the first three months (salaries of employees as well as payment of bills) – N250,000.
- Cost of purchasing a delivery van for use – N300,000.
- Other start-up expenses (furniture, computers, printers, signage, cash register, security and phones) – N100,000.
- Cost of launching a website – N25,000.
- Cost of throwing a launching party – N30,000.
- Miscellaneous – N50,000.
From the above analysis, it is apparent that we would need the sum of N2,415,000 in order to start up and successfully run our nylon production business here in Lagos Island – Lagos State. It should be noted that the above amount will cover the machineries and equipment we would use to produce the nylon. It will also cover rent for two years, allow us purchase a delivery van, get the necessary raw materials needed and also pay the salaries of employees for at least three months.
Generating Funding/Startup Capital for Eddie Nylon Production Business
Every business requires the right capital in order for it to stop being an idea and become a reality. This goes to show how important finance is to a business either during start-up or for an existing business. Starting a nylon production business might however not come cheap especially with the fact that certain equipment would be required to carry out the production.
Sourcing for finance is not usually a pleasant task for an entrepreneur but it is usually necessary if they are serious about the business.
Eddie Nylon Production Ventures is a business that is owned and operated by Mr. Eddie Ovruwem and family. Due to the fact that this is a family owned business, there is no intention whatsoever to bring in any external partners into the business, which is the reason why he has decided to restrict the sourcing of the start-up capital to certain areas.
The areas where we will generate the necessary start-up for our nylon production business are;
- Generate part of the capital from personal savings
- Source for soft loans from extended family members and friends
- Apply for loan from bank
N.B: We generated the sum of N500,000 from personal savings. We got the combined sum of N300,000 from our extended family members and friends. We are at the final stages of getting a loan of N1,615,000 from our bank that will be repaid back in 5 years at the rate of 3%.
All the necessary papers and documents have been duly signed and approved and we have been told that our business account will soon be credited.
14. Sustainability and Expansion Strategy
Any business that intends to exist for long and even expend its services must depend on certain factors such as ensuring that they hire employees that are proficient and competent, ensure that they re-invest back into their business and also ensure that they retain a high number of customers that are loyal to the brand.
The employees we intend to hire for our business are those that will remain committed and dedicated in ensuring that we are able to achieve all our goals and objectives and rise from an obscure start-up to a prominent nylon production brand.
In order to keep our employees motivated, we will ensure that they are well paid and have a welfare and incentive package that is better than their counterparts in other similar start-ups nylon producing companies here in Lagos Island – Lagos State.
Because we do not intend to run a business that will continue to source for funds externally, we intend therefore to ensure that we retain about 30 percent of our earnings back into our business. This will ensure that we boost our bottom line and sustain the business well for future expansion.
Because we understand how valuable our customers are, we intend to ensure that we create an excellent corporate customer policy that will enable majority of our clients stick to us while attracting new clients to our business as well. We intend to reward our loyal customers from time to time by offering them discounts especially when they refer other customers to our nylon production business.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of a facility and renovating the facility as well: In Progress
- Conducting feasibility studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing/Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party/launching party planning: In Progress
- Establishing business relationship with vendors – wholesale suppliers/retailers: In Progress
- Purchase of delivery truck: Completed