Draw up a business plan indicating the practicabilty and the profitability of the business of soap making.details
A business plan has many different parts and often is several pages long. I have written two for actual businesses and they were each 30 - 40 pages long.
The main components of a business plan include the following:
1. A mission statement, objectives, and what about your specific business will lead to success.
2. A summary of the company including ownership, history or start-up plan, locations, and facilities.
3. A description of the products, in your scenario soaps. This needs to include information comparing your product with any competition, sales literature, technology used, sources, and potential future products, if any.
4. A market analysis summary that includes how the market is divided, needs, trends, growth, other major participants within the industry. In your scenario this would include comparisons with the major soap manufacturing industries (ie Proctor & Gamble, Johnson & Johnson, etc. as well as the small specialty soap manufacturers including the homemade soap industry)
5. The strategy and implementation summary and a web plan summary will include your marketing, promotion, & distribution plans. It will alsoinclude sales strategies and forecasts.
6. A management summary includes a brief biography of the key personnel on the management team and future hiring plans.
7. Finally there is a financial plan. This needs to include your break-even analysis, projected profit and loss, projected cash flow, projected balance sheet, business ratios, and long-term plans. Often you will predict the next three months as months, then quarterly projections for the next 3 or 7 quarters and then annual projections for the next 3 years.
I hope this helps get you started. You need to look at the soap making business in each of these categories.
Business for any and every common product is practical and profitable for some. At the same time the same product may not be profitable for many others. The practicality and profitability of any business, including that for soap making, cannot be evaluated in isolation, without reference to the person of company intending to or actually running such business. For such an analysis it is necessary to ascertain and evaluate the characteristics of the company as well as the environment within which it is operating or intends to operate.
Further, there can be very wide variation on the nature of business that a company may engage for the same generic product. For example the soap may be of many different types such as hand soap, toilet soap, luxury soap, baby soap and so on. The level of operation may also vary. It can be just one small plant selling its product within a city, or it could be marketed nationally. The location of the manufacturing plant will also influence many important factors such as cost of plant and manufacturing and legal and economic environment. Depending on these various aspects like finance requirements, marketing mix and profit, will vary.
To make a meaningful business plan it will be necessary to be more specific regarding scope of the proposed business. Also it will be necessary to provide information on the nature of the company and the environment within which it operates.