PAINT MANUFACTURING BUSINESS PLAN GUIDE
Paint production is a multi-billion dollar industry that employs millions. There are opportunities for anyone interested in becoming a player in the industry.
Paint is a liquid that is put on surfaces to give them a particular color. There are various types of paint-texcote, emulsion, gloss.
An emulsion is a class of paint used on walls and ceilings which dries off without presenting any shiny surface. Gloss is a paint that, when dry, has a hard shiny surface.
Do you know what setting up a paint factory entails? As there are different types of paint, so there are various natures and characteristics in which they exist and possess respectively. Paints can change the original color of a surface/object which they are applied to.
They also exhibit the quality of retaining this color for a given period. They are liquid and are also in wet form, therefore required to be left for a given rate to dry on the surface applied. Also, there are various ingredients/raw materials used to manufacture paint; each having its specific functions put together to produce the desired print quality. First in the list include a pigment.
What are some requirements for starting a paint industry? The pigment is responsible for the color in painting.
Preceding it are solvents, resins, and various additives. Solvents enable the easier application of paints, resins help it dry while additive serves as everything from fillers to anti fungicidal.
These raw materials for emulsion, oil and gloss paint production are readily available in the market. Moreso, different manufacturing processes of paints are known. These include: making the paste, dispersing the pigment, thinning the paste and canning the paste. In making the paste, the bags of fine grain pigments are sent by the pigment manufacturers to the paint production plant; where it is premixed with resin, one or more solvents and additives to form a paste.
During dispersion of the pigment, the mixture is routed into a sand mill- a cycle that causes the tiny particles of sand to grind the pigment particles, which make them smaller thereby dispersing them throughout the mixture. The mixture, however, is then filtered to remove the sand particles. Thinning the paste involves diluting them, say with turpentine to obtain a desired and final product; irrespective of whether it is created by a small mill or dispersion tank.
Whereas, in canning, which is the final process, the finished product with the aid of pipe is pumped into the canning room where it can be canned for consumption. Distribution of paint is taking a huge increase daily; this probably maybe because of architectural structures such as houses, offices, schools, shops e.t.c, are being constructed.
Paintings, which are basically for beautification and ornamental purposes are used on furniture, portrait, and sports, events arena. Many distributors are also known.
Furthermore, correctable factors are limiting the paint production line, distribution, and supply of paint. These are unavailability of quality raw materials, insubstantial labor market value (i.e. government policy labeled on the manufacturing goods and services), inflation, deflation, high cost of paint production machine and technology and lack of quality products.
The satisfaction a particular paint gives the user depends on the quality of the chemical raw materials used in paint production. The pigment will lose its utility if it does not give the required color to the paint, which is the core feature; thereby, the products not fulfilling the purpose it is used.
Labour market values greatly affect paint production. There are lots of paint manufacturing plant for sale in South Africa and other African countries as well as manufacturing industries existing (both high scale production and low scale production business). There is a tendency the two will be under competition(thereby survival of the fittest setting in).
Now, those of low scale production, as a result, will be struggling for survival; consequently having little or no place to take in the labor market. Inflation is the general rise in the prices of the services and goods in a particular country, resulting in a fall in the value of the money.
Research made it clear that inflation is the greatest disaster the majority of producers, consumers, and products can face. The price of paint may rise from its original price to a newer unfavorable price which by implication will cause the disvalue of money.
Gross National Product- the value of goods and services produced in a particular country in a year is also affected by inflation. The high cost of production in the same vein, means sellers placing a high cost on the goods they ‘ve produced.
Deflation, on the other hand, is the reduction in the amount of money in a country’s economy so that prices fall or remain the same. It is the opposite of inflation. It posses a negative effect on the rate of paint production in Nigeria.
When the rate of deflation is high, manufacturers almost lost morale to proceed in their production. Meaning they may quit producing. This probably maybe because there won’t be enough gain for them. Lack of quality products entails inferior goods and services.
This factor affects the producer as well as the rate at which paint is produced because consumers are likely not to patronize it. Other factors affecting the manufacturing of paints include power(i.e shortage of electricity), financial instability, lack of infrastructure and lack of patronage from the local entity.
All the above-listed factors greatly impose mishaps on the due production, supply, and distribution of paints.
Nevertheless, combating these problems have a harmonious role in transforming paint manufacturing industries.
First of all, raw materials which are the prerequisite in paint production should readily be made available by the Federal Government in a subsidized amount.
Large scale production companies should halt competing with small scale for them to survive. They should also be provided with enough credit facilities and necessary aids by the government and cooperate bodies. Deflation and inflation can be curbed by establishing stable business procedures in Australia, Canada and other developed countries of the world (industry, trade, and investment).
Starting up a Paint Manufacturing Business
Most African countries have been known as a consumer-driven economy. The manufacturing sector today is growing faster more than any other sectors-petroleum, agriculture, et cetera per se. This is obviously because consumers are there in the labor market waiting to patronize to meet up the ends and means.
Nevertheless, before you set up any manufacturing industry, it is vital you know whether the product you want to produce is needed. The prerequisite for starting up paint production industry is discussed below:
1. Management: The life span of every business opportunity is determined by how it is managed. As a producer/company owner, do you motivate your workers? Do you report at the office daily or do you leave everything to the workers?
2. Financial Plan: This aspect deals with how accountable you and/or your workers are. As a paint making business owner, employ good accountants. Get reliable advice from them. Control their works and ensure everything is financially put in place (such as documenting every transaction).
PAINT PRODUCTION PRACTICAL GUIDE
3. Marketing: Marketing entails making your products known in the market and by the people. As a manufacturer, create a marketing strategy; employ personalities with marketing prowess and share those strategies with them for execution. They will help you identify the target market for a successful paint production business.
PAINT PRODUCTION BUSINESS PLAN EXAMPLE
This paint production business plan sample is written with you in mind. It highlights some of the most important sections a paint production business plan should have. Whatever your level of experience in this business, you will find this sample plan helpful.
Here is a sample business plan for starting a paint production company.
The Executive Summary
Paint World™ is a paint production business that produces top-grade paints and finishes of varying types. We are headquartered in Atlanta, Georgia and will produce quality prints for the American market. We are creating an efficient distribution system that will see our products achieve wide distribution in locations across the 50 states of America.
We have an experienced and dedicated labor force that is committed to our ideals as a business. These consist of professionals with years of experience as well as our valuable partnerships with distributors. These will help us effectively compete in a market-driven by cutting edge innovations in product development and marketing.
- Products and Services
Our primary products as a paint production business consist of three major products. These consist of oil-based paints, water-based paints as well as paint finishes. Under our paint finishes, there are eggshell and satin paints, matte paint as well as semi-gloss and gloss paints. These are produced using quality color pigments that give our products a wide range of colors.
- Our Vision
Our vision as a paint production business is to be among the foremost paint manufacturers. One way to achieve this is through the production of quality products as well as an efficient marketing campaign. We are committed to achieving our goal of establishing a paint production brand known for quality.
- Our Mission
There is an abundance of paint manufacturers. Each of these businesses tries to capture a fair share of the market.
We are not coming in as spectators. We have a mission of not only providing quality paint products but also balancing it with affordability. People seek out the best deal when choosing a service or product. We are determined to become the preferred paint production business by satisfying our customer demands.
Adequate financing is required if we are to fulfill our objectives as a business. Thus in raising the needed funding for our paint production business, we are applying for a loan from reliable financial institutions. The amount required for take-off amounts to $950,000.00. This comes with an interest rate of 1.2% to be paid monthly.
- SWOT Analysis
This has become a necessity for our business to assess our level of readiness to launch out. This has allowed us to measure our potential as well as discover where improvements are needed. A reputable business consulting service was commissioned to undertake this analysis. The findings have been enlightening;
Our paint production business has the advantage of a strong and highly skilled workforce. These consist of people who have spent decades in the industry and have garnered significant knowledge of how an efficient paint production business should be run. Our marketing and distribution strategies have also been fine-tuned. This will allow us to create a healthy demand for our products.
No matter how much preparation is made, there are bound to be some challenges. These are in the realm of the unknown. We have recognized this fact and identified it as a weakness we will have to deal with. However, with due diligence, we will be able to handle whatever difficulties that may arise.
Innovation drives the paint production industry. As a business, we are not afraid to develop unique products and services. This is an opportunity that can give us an edge over our competitors. Given this, we have engaged/hired the best. Also, our research and development department is constituted in such a way that there is constant research on new paint products and services.
Likely threats may arise in the form of an economic recession. When this happens, it affects production in a variety of forms. There is decreased demand which leads to losses. This is a threat that we face. However, this doesn’t happen every time.
- Financial Projection
Given the opportunities available to us, we have drawn a three-year profit projection. All things being equal, this will see our profits climbing to impressive levels. The market condition from the past 5 years to its present level was analyzed in arriving at the following figures;
- First Financial Year $250,000.00
- Second Financial Year $600.000.00
- Third Financial Year $1, 700,000.00
- Marketing Strategies
To create demand for our paint products, we have devised effective marketing strategies to spread the word about our range of products. These strategies will be implemented by our marketing department and will include paid TV and radio commercials, billboard ads as well as organizing roadshows. Social media marketing will also be adopted among others.
- Competitive Advantage
Our paint production business has competitive advantages in areas such as utmost adherence to quality production procedures. To achieve this, our quality control department conducts stringent tests on all paint products. This ensures that our valued clients get only the best products.
- Target Market
There is a wide market for paint products. These include the automobile industry, the shipbuilding industry, the housing industry and many more.
However, we are focused on the housing industry. Our paints will be produced mainly for the housing industry. This is the area we are focused on for the main time. We may look into other markets in the future but this is our current target.
This paint production business plan sample has provided you with the basic information needed. You can use the contents of this plan as a guide to writing your unique plan for your paint business. You do not need to sweat it out or complicate things. The simpler it is the following, the better. It is also important that you fully implement your plan. This enhances your success.