In Nigeria, starting a tissue paper business with low capital requires knowledge of the manual mode of tissue paper production. While the manual production method is less expensive, its downside has always been a relatively low scale of production.
Admittedly, you’ll still have to consider the automated production method for your tissue paper business even if you’re starting with the manual method. Therefore, this article will guide you on how to start tissue paper production in Nigeria.
Gain Knowledge of Tissue Paper Production
For the fact that this business is in the production line, you’ll have to first acquire the technical know-how of tissue paper production. This is very essential except if you’re only interested in operating as a retailer of tissue paper.
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To acquire in-depth knowledge of tissue paper production, you may enroll as an intern at a local tissue paper factory for a number of months. Through this internship, you’ll not only acquire the nitty-gritty of tissue paper production but also find out the advantages and disadvantages of the business.
Acquire Startup Funds
If you don’t have the required capital for setting up a tissue paper factory as well as equipping it with production supplies, you may have to source funds from financial institutions. For your business startup, you might need a sum in the range of #7-10 million. Provided you can’t afford the startup capital, do well to have a well-written business plan which could attract the interest of investors.
Decide on Business Location
Your business location refers to the site of your tissue paper factory and this must be in a strategic location for your business to thrive in the long run. Proximity to urban areas is crucial for the factory to attract customers from the target market. The reason for locating the factory in an urban area is that such an area is likely to be populated and densely populated areas usually have high demand for tissue paper.
Purchase Raw Materials and Capital Equipment
Depending on how you wish to launch your tissue paper business, you may incur varying expenditures on raw materials and capital equipment. If you intend to begin tissue paper production on a very simple basis, your factory supplies (ahead of the production) should include:
- Packaging machine
- Toilet roll cutting machine
- Paper roll rewinding machine
- Jumbo rolls
However if starting from the very scratch is what you prefer, you’ll have to expend more by acquiring the following capital equipment and/or raw materials:
- Industrial roller and slitting machine
- Bandsaw cutter
- Packaging machine
- Perforating machine
- Recycled pulps
- Core making machines
- Pulp and waste paper recycling jumbo machines
Register Your Tissue Paper Business
You’ll have to register your tissue paper business with the Corporate Affairs Commission (CAC) to ensure you aren’t operating unofficially. Your registration with CAC is a vital way of trademarking your tissue paper brand as well as preventing it from being imitated by a competitor.
Workers will have to be employed in order to carry out production and other business-related activities such as packaging and distribution. No matter the number of sophisticated machines you have purchased for factory use, humans will still be required for operating the machines. As such, you should think of the befitting number of employees for your tissue paper business. Meanwhile, you can have a minimum of 15 workers depending on the number of departments that your business unit will incorporate.
Work out Your Packaging Strategy
Tissue paper business is one that requires quality packaging for the interest of potential buyers to be captured. If you have the capability, you may engage the service of a product packaging company or simply equip your factory with packaging experts as well as the equipment needed for quality packaging.
Promote Your Products
Tissue paper business will always require effective marketing and advertising strategies for the promotion of products. For considerable business growth, you may consider integrated advertising incorporating radio, TV and signpost adverts. Provided that you combine several varying adverts for your tissue paper business, the business is likely to thrive continually even if business growth doesn’t seem favourable in the startup phase.
We believe this post has shed enough light on tissue paper production as well as how to start the business in Nigeria. Particularly if you’re starting with low capital, endeavour to know the pros and cons of the business so that you may know if you’re on a par with the business requirements.