BUSINESS PLAN FOR THE PRODUCTION OF TOILET PAPER WITH MINIMUM INVESTMENTS
The strengths of toilet paper.
Due to its high profitability, the production of toilet paper today attracts many entrepreneurs who would like to successfully start their first business with minimal initial investment. However, the success of such a business largely depends on the proper planning and organization of the technological cycle.The main difficulty in this business is high competition and market saturation with products. This factor should be taken into account when planning future pricing and marketing strategies.
An important competitive advantage of factories that produce these products in bulk is its low price. Thus, the reference point for ensuring stable demand for manufactured products is to maintain the high quality of the product in combination with the attractive price of the medium or low price segments.
BUSINESS PLAN FOR PRODUCTION OF TOILET PAPER
1 ton rolls. Planning a business project should answer the following questions:
How long will capital investment pay off?
How much profit will the mini-toilet paper business bring?
What is the approximate calculation for monthly production volumes of 1t. finished product?
What is the marginal level when calculating production profitability?
How much is the equipment, raw materials and consumables?
The profitability of the production of toilet paper:
Cost Item Estimated Price Quantity Amount
Ready paper base $ 407.00 / 1t. 1t. $ 407.00
Label $ 853.00 / 1t. 0,025t. $ 21.33
Cardboard sleeve $ 293.00 / 1t. 0,06t. $ 17.58
Glue $ 1 / 1l. 2l. $ 2.00
Electricity $ 0.17 / kW 64kW $ 10.88
Rent $ 5 / 1sq.m / 1 month. 80 sq.m. $ 400.00
Salary to the operator $ 200 1 person. $ 200.00
And that costs $ 1058.79
The quantity of the rolls made from 1 t. Raw materials 10500 pieces.
Retail price for 1 roll $ 0.21 / pcs.
Income from the sale of 1 ton. Of finished products $ 2205.00
Profit $ 1146.21
With a monthly production and sale of the finished product in the amount of 1 ton, the initial investment will pay off in less than 2 years.
So, with proper planning, as well as efficient production and sales, mini-production becomes a really profitable enterprise with minimal initial investment.
TECHNOLOGY OF INCOMPLETE CYCLE OF PRODUCTION
Production process. Depending on the type of raw materials used, the production of toilet paper is of two types of production cycle:
Full. Using waste paper.
Not complete. With the use of finished paper base.
The production of a complete cycle of finished products from waste paper, although it is more profitable, requires a large initial investment in the purchase of expensive equipment, as well as a larger staff of specially trained staff to perform complex and labor-intensive work.
Most preferred for home production is an incomplete production cycle.
Release of napkins and toilet paper from a ready basis
The technological cycle itself is simple, so it does not require special qualifications for staff. In addition, the machines for this type of production do not differ in complexity and high price, so that investment in their purchase will be minimal.
The process of production of paper base rolls can be divided into the following stages:
Installation of the base. The base roll is mounted on a special drum.
Punching. The punching process is based on special punching blocks.
Cutting rolls. In accordance with the specified size, technological rolls (logs) are cut into consumer blanks.
Packing and storage. The received rolls of finished products are packed and stored for subsequent sale.
ACQUISITION OF EQUIPMENT
Equipment used in the manufacture of toilet paper varies in complexity and price, respectively. However, for the organization of mini-production at home the necessary minimum is to purchase the following machines:
Unwinding and winding machine. With the help of this device, the feedstock (base) will be rewound into logs or technological rolls with perforation and sizing of the last layer.
Unwinding and winding machine.
Machine for cutting logs. On this machine, the prepared technological rolls will be cut into rolls ready for sale.
Machine for cutting logs.
The most affordable equipment on the market of manufacturers:
Name of machines Power Dimensions (d / w / w) Weight Features Price
Winding machine economy. Unwinding – winding machine (economy) 4 kW 380 volts 3.5m / 2.2m / 1.5m 2t. 15,000 rolls per shift $ 6,700
Band-saw. Band saw for cutting logs 1.5 kW 380 volts 1.3 m / 0.7 m / 1.85 m 300kg. There is a sharpening site $ 2000
SELECTION OF PREMISES AND REGISTRATION OF THE FIRM
In order to ensure convenient cooperation with retail chains and supermarkets in the future, it is necessary to register a business in the form of “Limited Liability Company”.
Before business registration is completed, it is necessary to select the room where the workshop will be located. This particular location will be indicated in the registration documents as the legal address of the business.