Tissue paper business in Nigeria is very lucrative. Here in this post, we are going to give you detailed and well-researched steps to start tissue paper business in Nigeria. We hope this is useful to you.
Overview of Tissue Paper Business in Nigeria
The use of tissue paper in Nigeria cannot be rated lowly or denied a fact. Many individuals use tissue paper for various purposes, cleaning of dirt, sweat, as toilet rolls and various other things.
Nigeria can boast of over 1billion units of tissue paper usage across the country, but the production level is not able to meet up the demand of this product.
As this is a case of Demand being greater than Supply, this gives expressly the much need of more producers in this line of production.
Tissue paper production is all about the manufacturing of hygienic soft papers which can be used for various purposes.
There are two different methods for the production of tissue paper, which are the manual and the automated methods.
The manual method is cheaper in terms of cost of running operation but it has its limits but the automated costs more than the manual but its production rate is at a maximum and has no limits.
Profitability of the Business
Like I said earlier, tissue paper production in Nigeria is very lucrative. The business faces the economic problem of low supply to high demand, this shows room for more entry and accommodating of new production lines.
In a month, a household is able to use half dozen of toilet rolls, companies, corporations and business ventures use up to half a dozen or more in a month and yet the use of this product is not being restricted due to its cheap price of #50 or #100 for big sizes.
Anyone who decides to get into this business is sure of steady returns. Also, no one has a favourite tissue paper, so long as it is soft and affordable, you will be patronized.
Opportunities in the Market
There are various production lines attached to the tissue paper business in which one can be involved in about two or three comfortably without any stress or cause for alarm, as tissue paper serves many purposes in the market for individuals.
You could decide to delve into tissue paper, table napkins, and serviette with many others. All it requires is a change of style and packaging.
Target Market and Customers
The market space is large of enough for any new producer into the business as the fact that production is low and unable to meet up with demands, so you can actually grab a space for yourself in the market. Customers are readily available for consumption; the need for tissue paper use is always rising and never dropping.
This business is also a type of business which will cost a sum of money but your profits will be at a maximum by the end of your first year of operating.
In the case of competition, there is no much competition in this business although you need to adopt aggressive marketing strategies to create a big boom, in your sales within the first 6 months of operation of your business and with a good management and use of available resources, you will be able to get good returns by the end of your first year in the business.
Without much ado let us go into the details of how to start this business and what you will need to start:
11 Steps to Start Tissue Paper Business in Nigeria
1. Knowledge and Experience
It is said that knowledge is power, which is why knowledge of your business is needed; you need to know the necessary details and facts about your business to enable you to manage it effectively.
Take up an internship program at any tissue paper production factory to enable you to know the pros and cons of the business.
Read Also: 50 Good Business Ideas to Start in Nigeria
2. Make your Business Plan
You will need to have a business plan to help you decide on what you need and what you plan on achieving or getting. It should also carry your financial projection for the next year or two years.
Also, you will have to decide what type of tissue paper you want to produce, also on what scale you wish to start the business, if it is a small scale or large scale, your business plan will help you decide and plan on that.
3. Sourcing of Funds
For you to start, you will need a reasonable amount of money for you to start. A sum of 10million naira will be good to start with on a medium scale.
You can get funds from the Bank of Industry or the Central Bank as they do support such kinds of business with loans for start up.
But if you have your own savings up to the expected amount, you can start your own tissue paper factory with your own savings.
4. Get your Raw Materials/Equipment
There are few essentials which you will need to start your business; it all depends on how you want it, if you want to start the process of production from the beginning so you can monitor your quality, you will need:
- Recycled pulps
- Perforating machine
- Industrial roller and slitting machine
- Pulp and waste paper recycling jumbo machines
- Core making machines
- Bandsaw cutter
- Packaging machine
But if you will want a less tedious process and the quicker way you will need:
- Jumbo rolls
- Toilet roll cutting machine
- Packaging machine
- Paper roll rewinding machine
Acquiring all these machines will cost about 6-7million naira.
Most of these equipment are gotten from China (automated production) but the machines for local production are gotten within the country in Lagos you can get most of these machines. Also, the jumbo rolls can be gotten from most tissue paper factories which operate on a larger scale. So your raw materials can be gotten here in Nigeria or imported from China.
However, you can get the locally made tissue paper machine in Nigeria and use. There are very useful locally fabricated tissue paper machine in Nigeria.
5. Technology Needed
The necessary technology needed are the machines used in production, almost every process is carried out by machines, so technology is involved a lot in this business.
Wherever you want to choose as your location for this business must be in the urban area and close to a very populated area as this will enable you to be near to your target market and make it possible for them to get easy access to your product. Choosing a location is very important as this will help in driving up sales to a reasonable extent without much stress.
7. Business name registration
Every company or business entity is required to get registered by the Corporate affairs commission to enable their business to be registered and avoid the usage of the name by another person and also to help clarify in case of future mistakes by another person who decides to use your name without registering with the CAC, this can lead to legal action.
Even though you will be operating the business through the use of machines, you will still need to employ individuals who will operate the machine and also those who will do the distribution and be in charge of marketing. So a minimum of between 10-15 workers will be needed.
9. Packaging and Distribution
This will help in drawing customers to your product, a good and attractive packaging which is necessary because when the packing is good and attractive, it is sure to attract a lot of buyers to the product.
Also, you have to create and establish a good distribution network that will enable you to reach a large customer base. These two factors are very important in the business and must be properly managed.
10. Promotion Tips/Marketing
A good marketing strategy will be needed to promote your business and increase sales. Though the growth rate will be slow and steady after about a year you will be a foremost producer.
Use of adverts on TV and Radio stations will also be highly recommended, distribution of flyers and signboards indicating the location of your business will be a booster to the business.
Tissue paper production business in Nigeria is like a gold mine waiting to be tapped, no matter the number of companies involved, there will still be the need for more because as the population increases, so will the demand of tissue paper increase.
So if you are looking for a good investment in which you will like to invest money to gain profits at the long run, you should think of the tissue paper business.
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