Here in this post, we are going to bring to you steps to produce plastic in Nigeria. We hope you find this article resourceful and informative.
Plastic production is a very lucrative business in Nigeria. It is one of the few businesses that can be set up in small, medium or large scale.
Plastic is the parent product of Straws, Plastic chairs, disposable plates, cups etc. The market is huge for plastic production, as demand is relatively very high, and supply very little.
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So if you are thinking about setting up your own plastic production factory, whether large scale, medium or small scale, this article is the right one for you.
Overview Plastic Business in Nigeria
The need for disposable plastic products has gone beyond party use, Eat outs and even homes and work places. The huge demand for these products, has called for increased supply.
This therefore suggests that any investor into this line of business will earn from his labor, but must approach the business professionally.
The demand for plastic is so high, that producers in Nigeria are hardly enough, and supply is relatively very low. Apart from Local buyers, the entire west African region seek out this product from Nigeria and rely on our production. This is partly due to the fact that, most of the raw materials required to start the business are readily available in Nigeria.
One of the economic efficiencies of any business, is judged by the production rate of its machineries. However, production rate wouldn’t be a problem when you are producing plastic.
The machine in question has the production capacity average of between 340 – 500 dozens of disposable plastics products per shift of 8 hours. This can be doubled by producing in two shifts.
When it comes to competition, like I said demand hardly ever meets supply. The Machine in mind can help you produce plastic products of season. That means, they can also help you produce different kinds of plastic products including cups, plates etc.
Before you begin to plan out the business, you must first source for the required funds. The good thing about plastic production is that, it can be set up in large, medium and small scale. However, personal saving can be a good place to start, family, friends and Investors should also be on your list as well.
Items Value (N) Pre- investment 550,000 Factory house (rental)(variable) 3,500,000 Plant and machinery 18,500,000 Utilities (including project vehicle) 5,300,000 Working capital for take- off 5,000,000 Contingencies 3,500,000 Total 36,350.
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Create a Business Plan
You cannot start building a house, without first drawing its plan. This is also applicable to starting up a business, you must write out the necessary information, research and projections on the business.
A good business plan should contain; cost of set up, cost of maintenance, projected income, your competitive advantage and labor force amongst others. So get a pen and a book, and begin to write out a plan for your business.
Find a Location
Now that you have gotten the required amount to start up the business, it is time to secure a working location and office space.
This is where your plastic production will be taking place. You will need a spacious property, not to big, but big enough to accommodate your machines and equipment, while still leaving enough space for easy movement in the factory. You can contact a property agent to find you a property that will suit your type of business just fine.
Always beware of fraudsters, who might pose as owners of properties. That is why it is very advisable to get a good property agent, who knows the environment well.
Register Your Business
This is the next step after buying/leasing a property. I recommend that you do this before any other thing; it not only gives your customers a sense of professionalism with your company, it also saves you future unnecessary confrontations with government agencies.
To register your business, visit any CAC (Corporate Affairs Commission) office closest to you. You will be given a form to fill, which costs about 5,000 naira. You will need to fill in the name of your business name among other details.
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You will need about 1-2 workers to handle each machine, and an extra two for cleaners. As profitable as plastic production is, it also has it cons.
The production is labor consuming, as well as dirty, so you will need good, hardworking and accountable workers to handle your business.
Always interview your workers before employment, a bad worker is like an infected wound, it keeps doing damages whilst growing and finally causing a break down.
Purchase and Install Equipment
Once you have leased/bought a property, registered your business and hired workers, it is time to purchase the actual equipment. The following equipment are needed, to launch production of plastic in your new company;
You will need the ingredients necessary such as oil, natural gas in addition to chemical elements such as Polyvinyl chloride, High Density Polyethylene and Polyethylene Terephthalate. Success is guaranteed once you have modern machines to work this ingredients into quality products
Test the Market
Once you have successfully set up your equipment, and produced your first batch of products, it is time to test your product in the market.
You can do this by taking your product into the market and trying to sell it. However, if you want, you can get random people from the public to come and give you an opinion, of what they think about your products.
This is an important process that will help you determine if your product needs some changes before you eventually release it to the general public.
Market Your Product
Many businesses have failed, not because of their products but because they took marketing too lightly. A wise entrepreneur once said “A medium product with great publicity, will do better than a great product with low publicity”.
Pay attention to marketing your product, make sure people are talking about your product even before it makes its way into the market.
If you cannot handle this workload, you can always hire a publicity consultant who will give you ideas on how to get people talking about your plastic.
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Plastic production is a lucrative business that has the capacity of bringing millions yearly. However one must understand how the business works, to be able to get results like that.
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