Soap-Making Business

Type: Production

Key Products:
Handmade Soaps

Technology Considerations:
Basic soap-making equipment (thermometer, weighing scale, blenders, mixing kettles, microwaves)
Simple online tools for promotion and marketing

Market for the Product:
Growing demand for natural and handmade soaps in Kenya
Target customers: households, hotels, spas

Key Inputs:
Raw materials (Silicate, Fatty palm oils, Palm oil, Coconut oil, Caustic, Soap dyes, Fragrances)
Labor
Equipment

Product Preparation Process:
Soap making through the Cold Process method
Experimentation with scents, moisturizers, and colors for uniqueness

Quality Considerations:
High-quality raw materials for a long-lasting and foamy bar of soap

Cost of Investment:
Small-scale manual start: Ksh 10,000
Soap-making machine (medium or large business): Ksh 200,000

Required Operational Infrastructure:
Production space with water and electricity supply

Most Suitable Location:
Easily accessible
Affordable
Ample space for production

Potential Sources of Investment Capital:
Personal savings
Small business loans
Angel investors

Requirements for Effective Management:
Skilled staff for soap-making
Efficient supply chain for raw materials

Role of Mobile Phone and ICT:
Promotion and marketing through social media
Basic communication and coordination

Statutory Regulations and Licenses:
Business Registration
Health and safety certifications for soap ingredients

Pricing:
Cost of making bar soap: Ksh 100 to Ksh 150 for 800g
Selling price: Ksh 200 per 800g bar

Profitability:
Profit margin: Approximately 50%

Starting Cost Breakdown:
Raw Materials: KES 50,000
Equipment: KES 30,000
Rent: KES 15,000

Licenses and Permits: Comprises of  

1. Company Registration:
   Choose sole proprietorship, partnership, or company.
   Register online via eCitizen or at Huduma Center.
   Provide three name choices for Ksh 150 each.
   Registration fee: Ksh 1,000.
   Receive a business name certificate.
2. City Council Business Permit:
   Required for all businesses.
   Cost varies based on business size and industry.
   Obtain from county or municipal council offices.
   Payment receipt issued; permit available in a week.
3. Food and Health Permits:
   Necessary for food and health-related businesses.
   Includes hotels, clinics, bakeries, and salons.
   Health inspection required.
   Certificate issued if requirements are met in a week.
4. Fire Safety Certificate:
   New requirement for businesses.
   Fire extinguishers mandatory.
   Inspection by authorities.
   Certificate issued upon meeting criteria.
5. Advertising Signage License:
   Needed for business signage and vehicle branding.
   Cost varies based on business nature and county.
   Charges depend on signage size.
6. Unified Business Permit:
   Introduced by Nairobi County Government.
   Consolidates all necessary licenses.
   Includes trading, fire safety, health, and signage licenses.
   Simplifies application process. Marketing: KES 10,000 Flyers, Banners and Social Media
   Total: KES 110,000