BUSINESS PLAN

FOR
LIQUID SOAP MAKING
(EED 216)

PREPARED BY:
GROUP

1
 ND 2A (CIVIL ENGINEERING DEPARTMENT)
BUSINESS NAME WASH-AWAY

ADDRESS LINE: AX 39 MINNA ROAD TUDUN NUPAWA

KADUNA

SUBMITTED TO:

MUSA SULEIMAN

APRIL, 2019.
GROUP MEMBERS

NAME REG. NO
ISHAQ KAZEEM KPT/COE/17/18716
AL-AMIN ALIYU A. KPT/COE/17/24044
SIRAJO HASSAN KPT/COE/17/19122
ANAS MUHAMMED ARI KPT/COE/17/21956
ADAM SADA KPT/COE/17/24045
AHMAD ABDULKADIR KPT/COE/16/10746
DANTSOHO
MUHAMMAD KABIR TAIYE KPT/COE/17/

2
SALIHU HUSSAINI KPT/COE/17/

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 TABLE OF CONTENT

Title page
i

Table of content ii

1.0 Business overview 1

1.2 Vision and mission 1

1.3 Business objective 1

1.4 Value preposition 2

1.5 Critical success factor 2

1.6 Current status of business 2

1.7 Contribution to local and national economy 3

2.0 Marketing plan 3

2.1 Desciption of product 3

2.2 Product package and delivery 4

2.3 Pricing strategy 4

2.4 Target market 5

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2.5 Distribution strategy 5

2.6 Promotion strategy 6

2.7 Competition 7

3.0 Production/operation plan 7

3.1 Description of location 7

3.2 Raw Materials/consumable 8

3.3 Production equipment 8

3.4 Production process 9

3.5 Production cost 9

3.6 Stock control process 10

3.7 Pre-operating activities and expenses 10

3.8 Milestones 11

4.0 Organization and management plan 11

4.1 Ownership of the business 11

4.2 Key management staff 12

4.3 Details of salary schedule 13

5.0 Financial plan 13

5.1 Financial assumptions 13

5.2 Startup capital estimation 15

5.3 Source of capital 15

5.4 Security for loan 15

5.5 Loan payment plan 16

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6.0 Business risk and mitigating factor 17

6.1 Business risk 17

6.2 Swot analysis 17

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1.0 BUSINESS OVERVIEW
DESCRIPTION OF THE BUSINESS
The name of our business is WASH-AWAY which is designed in a
new product that provide a quick, easy, and affordable method to
effectively wash cloth, hands and other utensils.
Due to the increase economic hardship in a Nigeria, many companies
that engage or produce good detergent are no longer working. Others
that are still producing, there product are not affordable to poor
masses. People now resolved to good and cheaper product like liquid
soap that is affordable and effective. Over 75% of masses have
resorted in liquid soap usage in our country and locality.
We will be producing in liquid form with green colour.
 Establish a strong brand image early to position ourselves in the
market. The founders have already developed a rough prototype of the
product. Our start-up period includes 5 months of work by an
independently-contracted chemist at a local lab who will perfect this
design into a finished prototype, with the correct balance of soap and
dyes in four colours. The final two months of this start-up period
included safety tests per government regulations to assure high
quality.
1.2 VISION AND MISSION
Our mission is to create value for customers and shareholders by
continually improving health and reducing preventable illnesses
through the use of our soap.
1.3 BUSINESS OBJECTIVE
 Develop a complete prototype which meets regulatory standards by
February of Year 1.
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  Become the specialty soap of choice for day cares, hospital, company
etc. across the Northwest and Northeast by December Year 2.
 Achieve sales of $5 million by the end of Year 6.
1.4 VALUE PREPOSITION
WASH-AWAY is the first producer that answers this problem and
provides indisputable proof every time a person washes his or her
hands. After washing occurs, the unique dye in our soap remains on
the hands and fades to the skin’s natural color in under six minutes.
This would allow supervisors to conclusively verify at a glance
whether hand washing has taken place. No other product on the
market offers such a high level of assurance of sanitation compliance.
The product is safe and meets all current FDA regulatory requirement
for soap.
1.5 CRITICAL SUCCESS FACTOR
 A first-mover branding campaign to build awareness of
WASH-AWAY products as the standard for ensuring hand
washing compliance.
 Patent protection to defend our time-sensitive dye and product
concept from competitors.
 Complementary relationships with organizations interested in
increasing hand washing compliant
1.6 CURRENT STATUS OF BUSINESS
Our business is a startup. We have being able to make our first sample
but not yet into selling still an idea.

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1.7 CONTRIBUTION TO LOCAL AND NATIONAL ECONOMY
Setting up this business is basically to cater for most of the needs of
the family and since the business is a corporate business, it will help
boost the income of the family.
Our employees: the employees will become gainfully employed and
as the business develops and grows into a larger company, there will
definitely be an increase in their pays per month.
Immediate community: the founding of this company will definitely
take truants and unemployed youths off the street. Seminars and
workshops will be organized to teach them on the production of soaps
and with the knowledge establish soap production firms of their own.
2.0 MARKETING PLAN
2.1 DESCIPTION OF PRODUCT
 WASH-AWAY will produce a line of institutional liquid soaps
with a time-sensitive dye blended into the mixture.
 The dye reacts with the hands during the lathering process,
staining the hands a distinct color, then fading in under six
minutes.
 The packaging will be compatible with existing soap dispensers
mounted in washing stations and be available in a variety of
sizes.
 Initially, WASH-AWAY will produce products with child care
acquires in mind, utilizing the brightest colors possible. This
product will consist of four color: red, blue, pink and green

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2.2 PRODUCT PACKAGE AND DELIVERY

The packaging will be compatible with existing soap dispensers

mounted in washing stations and be available in a variety of sizes like
the pocket size, dispenser (varying size). Distribution in the soap
industry is provided by regional providers. These distribution
companies usually serve a large portion of the market based on the
respective size of the market, delivering to the organizations monthly
or bi-monthly depending on demand and usage patterns. Food services
typically receive deliveries of cleaning products once a month.
Hospitals typically have a distribution system that operates on
monthly deliveries of large quantities. Restaurants typically have a
weekly delivery schedule.

2.3 PRICING STRATEGY

Retail pricing for WASH-AWAY will generally be around #2000 per
gallon and #8000/case for four gallons and will command a 25-30%

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 price premium over conventional liquid soaps. The value of our
product will not be attractive to extremely price sensitive customers.
The market for soap is generally inelastic, but our product offers
significant differentiating benefits over current soaps that justify the
price difference.
2.4 TARGET MARKET
WASHER first product line addresses the day care market. WASH-
AWAY will first be introduced in Kaduna South, GRA area, before
sequential expansion to additional day care markets. There are
currently 44 day care facilities in the Kaduna south GRA area. After
successful implementation in Kaduna south, we will begin expansion
into the greater north. There are 60 day care facilities in the greater
North.
2.5 DISTRIBUTION STRATEGY
Our initial distribution strategy will involves a combination of
distributor and direct sales. Relationships with Local Northwest
distributors will be established to increase promotional reach and
potential users. The first orders will be available immediately through
direct delivery by our executive team. Out sourcing distribution
entirely in the future will allow.
WASH-AWAY to focus its efforts on marketing and expanding as
quickly as possible.
Distributors will pay for the inventory up-front, and although this cuts
our profit margins it helps WASHER to maintain a more flexible
structure. By the start of 2020, distribution will be entirely outsourced
to distribution companies, and direct deliveries from the executive
team will cease.
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2.6 PROMOTION STRATEGY
One of the most important aspects of a successful launch is positive
publicity for our product. We will develop an awareness campaign to
promote our product through several avenues. Our management team
will fiercely pursue positive public perception through government
endorsements promoting the benefits of our products. We will also
attempt to capitalize on the novelty of the solutions provided by our
product by actively seeking local news and media coverage to help
spread awareness. Buzz will be developed in social hubs by
distributing samples of parties with potential interest. Parental support
of the product will be garnered through free trials, demonstrations,
and direct mailings to the day care parent roster lists, parent groups
and PTA’s.
At washing stations in client facilities we will spread awareness with
stickers targeted towards children, showing them the process of
washing to turn their hands different colors and emphasizing how fun
it can be. Pamphlets will be sent to the family homes through the day
care roster mailing lists, to calm fears regarding a new product in their
child’s environment, explain the benefits and encourage the parents to
respond and build feedback for the benefits of the product to further
increase implementation.
Some of the government programs of interest are the various
compliance and workplace hygiene programs supported and funded
by the Center for Disease Control (CDC), the National Agency for
Food and Drugs Administration and control (NAFDAC) and the
National Center for Disease Control (NDIC). Programs such as the
Health Protection Research Initiative implemented by the CDC
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 demonstrate an invested interest by government programs in
increasing the overall health of Americans.
2.7 COMPETITION
COMPETITIVE ANALYSIS
Name of competitors Washer Viva
Location of competitors Kaduna State Kano State
Product and service offered? Liquid and Liquid and
bar soap bar soap
PRICING strategy? #70 #110
What are their uniqueness Size Antiseptic
What are there other Smell Medicated
strengths?
What are there weaknesses? Location Expensive
How long have they been
existing?

3.0 PRODUCTION/OPERATION PLAN

3.1 DESCRIPTION OF LOCATION
The management team of WASH-AWAY will initially use a
residential apartment in Kaduna to run operations. In Year 2, we will
move to a rented office. Distribution will remain outsourced.

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3.2 RAW MATERIALS/CONSUMABLE
LIST OF MATERIALS
MATERIAL DESCRIPTION
Soda ash Enhance washing performance of the soap,
it’s also the main thickening agent
Caustic soda Is a stain removing agent
Sulphonic acid Is a foaming and cleaning agent
Airtsol/natrosol Is a binding agent. It also serve as a thickener
Vitamin E Shields skin from damage through its
protective properties, and also, it boosts the
immune system
Texapon Is a foaming booster agent
Color/perfume Will add beauty and nice smell to the product
Laurel rice (sodium Is a foaming agent
lauratesulphate)
STPP Is a cleaning agent
Glycerin Helps skin to stay soft and supple
Industrial salt Helps to reduce the strength of chemicals in
this production
3.3 PRODUCTION EQUIPMENT
s/n Equipment Description/uses Supplier
Cans For containing chemical Market
Spoon For putting chemical Market
Measuring bowl For measuring chemical Market
Water For diluting Market
Bottles For storing Market

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3.4 PRODUCTION PROCESS
The process is in two form (cold and hot water mixing) but we will be
using the cold water process.
a. Dilute natrosol and dissolve in water then stir little by little
b. Dissolve soda ash in another container
c. You mix caustic soda together with A and B
d. You add sulphic acid
e. You add perfume and color
f. Add mentehyle to make is last longer.
3.5 PRODUCTION COST
s/n Raw material Unit required Cost per unit Value
1. Soda ash 100g #50 Necessary
2. Caustic soda 200g #100 Necessary
3. Sulphonic acid 75cl #100 Necessary
4. Airtsol/natrosol 200g #150 Necessary
5. Vitamin E 150meal #50 Optional
6. Texapon 15 teaspoons #20 Necessary
7. Color/perfume 25cl #50 Optional
8. Laurel rice 100g #50 Necessary
(Sodium
lauratesulphate)
9. STPP 10-15 teaspoons #150 Necessary
10. Glycerin 10cl #80 Necessary
11. Industrial salt 100g #100 Optional

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3.6 STOCK CONTROL PROCESS
Method of record keeping to be adopted is ICT the books that will be
record are: production, marketing, customer, supplier, and workers.
S/N BOOKS TO BE KEPT REASON
1. Production For future upgrading
2. Marketing For analysis
3. Customer To know capacity
(amount of buyers)
4. Supplier For purpose of need
5. Workers For company analysis
3.7 PRE-OPERATING ACTIVITIES AND EXPENSES
S/N ITEM DESCRIPTION TOTAL
AMOUNT
1. Rent/lease/purchase of Nill Nill
space
2. Renovation Nill Nill
3. Equipment’s/capital Cans, spoon, measuring #200
expense bowl, bottles
4. Fixture/fitting/installat Nill Nill
ion
5. Business Nill Nill
registration/permit/lice
nse
6. Advertising Poster by computer #100
printing
7. Recruitment Nill Nill
TOTAL PRE-OPERATION EXPENSE = #300

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3.8 MILESTONES
s/n Activity Funding Budget Period of accomplishment
1. Acquisition of new
delivery van
2. Introduction of new
product
3. Acquisition of
space for permanent
4. Commence
construction

4.0 ORGANIZATIONAL AND MANAGEMENT PLAN

4.1 OWNERSHIP OF THE BUSINESS
The company will be run corporately by 7 men: total funding required
to get the business started is estimated at #2,000, of which the
executive management team will invest #200, respectively. An
additional #50 investment necessary to develop a product and
effectively bring WASH-AWAY products to an initially limited
geographic region is sought from other investor (s).
The key elements in the start-up plan for the company are:
 Development of a working prototype
 Funding of working capital requirements and promotional
materials for the principle operating activities of the company
 Gaining patent approval.
 Establish a strong brand image early to position ourselves in the
market. The founders have developed a rough prototype of the
product. Our start-up period includes 5 months of work by an
independently-contracted chemist at a local lab who will perfect
this design into a fished prototype, with the correct balance of
soap and dyes in four colors. The final two months of this start-
17
 up period include safety tests per government regulations to
assure high quality.
4.2 KEY MANAGEMENT STAFF
Position Name Skills, qualification, and Function and
experience required responsibility
Founder ISHAQ KAZEEM Certificate in soap The mixer and
making and national the brain of
diploma in civil company
engineering
Founder AL-AMIN ALIYU National diploma in The mixer
civil engineering
Founder SIRAJO HASSAN National diploma in The mixer
civil engineering
Founder ANAS MUHAMMED National diploma in The mixer
ARI civil engineering
Founder ADAM SADA National diploma in The mixer
civil engineering
Founder AHMAD National diploma in The mixer
ABDULKADIR civil engineering
DANTSOHO
Founder MUHAMMAD KABIR National diploma in The mixer
TAIYE civil engineering
Founder SALIHU HUSSAINI National diploma in The mixer
civil engineering
The will operate from every day, and our resumption will be 8:30 and
closing time will be 12:30.

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4.3 DETAILS OF SALARY SCHEDULE
s/n Name Designation Monthly salary Annual salary
1. ISHAQ KAZEEM Manager #30,000 #360,000
2. AL-AMIN ALIYU
3. SIRAJO HASSAN
4. ANAS MUHAMMED ARI
5. ADAM SADA
6. AHMAD ABDULKADIR
DANTSOHO
7. MUHAMMAD KABIR
TAIYE
8. SALIHU HUSSAINI

5.0 FINANCIAL PLAN

5.1 FINANCIAL ASSUMPTIONS
Assumption for inflation
As stated earlier, development of new products will not start until the
second half of 2020. As such, related R & D cost are beyond the
planning horizon of this document. However, we plan to earmark
#200,00 and #400,00 for the second and third years of operation,
respectively, under “R & D” for additional expenses related to the
patent protection of our products. Should these expenses be
minimized, our bottom line profitability (especially in the second year
of operation) will be positively affected.

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Assumption on interest rate
Based on market research, we expect the business to begin growing at
45% per month for the first 12 months, then at a yearly rate of 90%
for the next two years. Due to our low initial investment costs, we can
maintain the operations of the business with the cash buffer we will
have from start up. In addition, we will almost immediately have a
positive cash flow, allowing us the flexibility to cover any unforeseen
expenses.
Assumption on tax
We will be paying tax based on our income at 15% annually.
Assumption on depreciation
Based on market research, we expect the business to begin growing at
45% per month for the first 12 months, then at a yearly rate of 90%
for the next two years. Due to our low initial investment costs, we can
maintain the operations of the business with the cash buffer we will
have from start up. In addition, we will almost immediately have a
positive cash flow, allowing us the flexibility to cover any unforeseen
expenses.
Assumption on salary increment
In order to free up enough capital to continue operations and possible
expansion, our executive team will not receive more than a living
wage salary until the product is well into the black. We understand
that as a new product we will need technical support and legal advice;
this will be currently outsourced to various consultants.
All sales for the first year of operation will be closed by the executive
management team. Starting from the second year, we will employ a
sales associate who will handle sales transactions. His/her
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 compensation will be a combination of fixed salary and commission
on sales. For the purposes of financial planning, we combined the
sales associates compensation into an aggregate forecast.
Assumption on insurance
For the first three years we will not be running for insurance until the
forth year when the company is at is full capacity to run.
5.2 START-UP CAPITAL ESTIMATION
Activity Description/details Amount
Pre-operating expenses Prototype #2000
Initial stock Chemicals #1000
Initial operating expenses Prototype #2000
Total startup capital #5000
estimated
5.3 SOURCE OF CAPITAL
Source Amount (#) %
Personal fund/equity
Loan
Total funds sourced
5.4 SECURITY FOR LOAN
The loan we will be securing will be use to expand the business than
the way it was estimated by fund and income. And it will be paid
back at a minimum of 3 month and maximum of 5 month.

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5.5 LOAN PAYMENT PLAN
The loan that will be collected will be paid every month at 20%-30%
Monthly Outstanding Monthly Monthly Monthly Cumulative
depth principal interest interest + payment
(principal) repayment repayment monthly made
principal
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.

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21.
22.
23.
24.
25.
26.
6.0 BUSINESS RISK AND MITIGATING FACTOR
6.1 BUSINESS RISK
The soap industry is highly fragmented. There are more than forty
different institutional soap products that compete in the market.
Limited resources; limited production capacity.
6.2 SWOT ANALYSIS
Strength Weakness
Personal and flexible customer Limited financial resources
service producer of soap Lack of established reputation
Available in standard and well Inadequate logistics and delivery
packaged form system
Longer expiring period relative to Limited production capacity
other soap produce

Opportunities Threats
Increased demand for soaps (like Emergence of new competitors
duduosun) due to health Multiple taxation
consciousness. Epileptic power supply
Aggressive use of internet of reach Downturn in the economy, likely to
new and existing customers. reduce overall demand.

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 New technologies that allows the
improvement of production process
and product quality
TABLES
SALES FORCE CAST
Sales Ye Year Year Year Year Year Year Year Year Year Year Year Total
ar 1 2 3 4 5 6 7 8 9 10 11 12
Qty
Price

COST FORCE CAST TABLE

Sales forecast
Sales
Washer (liquid soap)
Washer (bar soap)
Total sales
Direct cost of sales
Washer (liquid soap)
Washer (bar soap)
Subtotal direct cost of sales
OPERATING EXPENSIVE TABLE
Factors Period Period Period Period Period Period Period Period Period Period Period Period Total
1 2 3 4 5 6 7 8 9 10 11 12
Salary
Repair and
maintenanc
e
Electrical
bills
Water rates
Transport
and devilry
Advert and

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promotion
Telephone
Purchase of
consumable

PROFIT AND LOSS PLAN

Our profit and loss projections reflect our expectation that monthly fixed
cost will remain constant over the course of the first year.
Cost of goods sold increases at a decreasing rate, as economics of scale
make soap production cheaper per unit as production volume increases.
Based on these projections the company will become profitable in October,
2020.
Advertising expenses will remain steady during our first year of operations
however, advertising and promotion will grow in years 2021 and 2023 to
reflect the purchase of print ads, PR brochures, and additional promotional
content.
CASH FLOW PLAN
Cash received Year 1 Year 2 Year 3
Cash from operations
Cash sales
Subtotal cash from operations
Additional cash received
Sales tax, vat, HST/GST
received
New other liabilities (interest
free)
New long term liabilities
Sales of other current assets
Sales of long term assets

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New investment received
Subtotal cash received
Expenditures Year 1 Year 2 Year 3
Expenditures from operations
Cash spending
Bill payments
Subtotal spent on operations
Additional cash spent
Sales tax, Vat, HST/GST paid
out
Principal repayment of current
borrowing
Other liabilities principal
Repayment
Long term liabilities principal
Repayment
Purchase other current assets
Purchase long-term assets
Dividends
Subtotal cash spent
Net cash flow
Cash balance
EXECUTIVE SUMMARY
The name of the company is WASH-AWAY. Has designed a new product
that provides managers with a quick, easy, and affordable method of
effectively wash hand. Proper hand washing is the most effective
preventative measure available to combat communicable diseases.
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The management team of WASH-AWAY will initially use a residential
apartment in Portland to run operations. In year 2, we will move to a rented
office. Distribution will remain outsourced.
WASH-AWAY product line provides a unique control level of managers,
supervisors and parents alike. We have two basic product lines: liquid
intended for day care facilities, and an antimicrobial-based product for
hospitals. The antibacterial products are not yet in development.
 WASH-AWAY will produce a line of institutional liquid soaps with a
time sensitive dye blended into the mixture
 The dye reacts with the hands during the lathering process, staining
the hands a distinct color, then fading in under six minutes.
 The product will sell for approximately #200/case.
 The packaging will be compatible with existing soap dispensers
mounted in washing stations and be available in a variety of sizes.
 Initially, WASH-AWAY will produce products with child care
acquirers in mind, utilizing the brightest colors possible. This product
consist of four colors: red, blue, pink and green.
Improper hand washing contributes to more than 130,000 deaths in the
Nigeria each year through the transfer of communicable diseases in
restaurants, day cares and hospitals (more than AIDS and breast cancer
combined). Studies have shown that proper hand washing procedures in
these environments could cut down the spread of disease by up to 75%. The
greatest contributing factor to this problem stems from the inability of
supervisors to monitor and control employee hand washing. Existing
products offer no effective or affordable solutions for enforcing and ensuring

27
hand washing compliance. Treatment of preventable disease costs
Americans over #95 billion in direct cost each year.
WASH-AWAY is the first producer that answer this problem and provides
indisputable proof every time a person washes his or her hands. After
washing occurs, the unique dye in our soap remains on the hands and fades
to the skins natural color in under six minutes. This would allow supervisors
to conclusively verify at a glance whether hand washing has taken place. No
other product on the market offers such a high level of assurance of
sanitation compliance. The product is safe and meets all current FDA
regulatory requirements for soap.
There is tremendous potential for a product that provides supervisors and
parents with the control to monitor and encourage hand washing.
Considering the large scope of our potential markets, we feel it is imperative
to focus our limited resources on a particular geographic region where we
can establish demand for our product. After successful market penetration,
we will begin implementation into the restaurant and hospital markets.
Although restaurants and hospitals have tremendous market need for a
product such as ours, day cares represent the best opportunity for our initial
target market. Day cares are an ideal market because they have a vested
interest in reducing disease transfer amongst children, and have adamant
support from their clients (parents) to create as clean an environment as
possible. As stated by family practice News, “most day care centers are
sophisticated little germ factories, exchanging bacteria and viruses with the
shake of a hand or the sharing of a toy. And many of those nasty bugs travel
home where they can infect the rest of the family.”

28
The company is owned by 8 entrepreneur student who will run all the
management position as equals. The production of product and funding will
be done before interest comments. Or any sponsor.
WASH-AWAY boasts a strong founding team and experienced board of
advisors. Our primary advisor, jack soap, brings twenty years of industry
experience and networked relationships to accelerate market penetration of
the product line. WASH-AWAY will outsource the production of its soaps
to an existing soap manufacturer. The executive team will first target the
KADUNA area and eventually the greater east and west using direct sales
and existing distributor channels to penetrate the market. Initial capital will
be used to test, patent, approve, produce, and market WASH-AWAY, as
well as provide working capital for the first year.
WASH-AWAY will follow three concise strategies to achieve our desired
growth:
 Exploit first mover advantage in a highly fragmented market with a
unique and differentiated product.
 Develop a strong branding campaign to build awareness, positive
perception and sales of our products within our target markets.
 Continue to develop new products to satisfy an ever growing set of
markets. Based on detailed financial projections, WASH-AWAY will
require #2,000 in start-up capital, but will generate positive cash flow
in October,
Year 1. By the end of year 3 the company will be generating #850,000 in
sales with sizeable net profit. WASH-AWAY offers investors a company
with substantial growth potential, cushioned by revenue generating stability.
To expand will be needing #500,000

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If applying for loan we will be using it to get a permanent sit and heavier
equipment for production. There should be repaid at a minimum of 5 month
maximum of a year at 25% monthly. We anticipate to have an income of 1
million after a year of sale.
It will be contributing to the local economy and national economy by
providing new employment space to the society and add to the economy by
paying tax.

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