Nylon business is a very lucrative business that few know about, people rarely think about nylon as a business that can bring profit and the reason for this could be as a result of high cost of starting nylon business which is nothing to worry about since one can start from the less costly niches which are wholesale or nylon cutting and move up the ladder.
Nylon business is a family business to me; I grow up selling nylon in Ibadan, though it was nylon cutting business, we later move to wholesale.
It was very profitable; if mom spends 100 naira to buy raw nylon we will surly see x2 of the money as profit.
Enough of story, the reason you click the link that brought you to this page is to learn about nylon business which it is what we will be doing.
This article deal with everything you can think up in nylon business; it production, wholesale, cutting/retailing, material procurement, cost, profitability and other.
This article is from research and experience, you should take it serious.
Before we go into the step of starting nylon business I will like you to take note of the following.
Why you need to start nylon production business
To further increase your like for this business I have listed below the advantage of nylon production business
Note: It is for all the niches of nylon business
1) Nylon has no enemy
It is water that people use this phrases for, but it also applicable to nylon, everybody make use of nylon in one way or the other either you use it to wrap or carry item.
As a result of this there is high demand for nylon everywhere.
2) It profitability is huge
Imagine earning x2 of your cost of production as profit, let me use figure to explain it; what I’m insinuating is that if your cost is #100,000, you can earn #200,000 as profit.
3) Nylon is not a perishable item
I could remember whenever we have a low sale in our shop what mom usually say is ‘nylon does not eat, we will surely sell it tomorrow’.
Nylon is not perishable, if you don’t make sale today you don’t need to worry tomorrow and next tomorrow is there.
Also there is no additional cost of starting nylon like perishable goods (refrigerating cost).
Niches of nylon business in Nigeria
Nylon business is not only about production there other niches that do not require much capital.
Below are the niches of nylon business in Nigeria
1) Nylon production business
Nylon production is what most people know perhaps because of its profitability but while it is profitable it is also capital intensive.
If you don’t have money in millions it is not advisable to go to this niche but if you have congratulation because it has less competition since the barrier of entry is high.
Your job is to source for raw material which can be gotten in Nigeria or oversea and turn it into nylon with machine.
2) Nylon wholesale business (or distribution)
In this niche you will act as middle men between nylon producer and cutter/retailer.
You r job is to buy from nylon factory and sell to them. It does not require much capital compare to other nylon business niches but you need to have a large and be ready to sell in credit.
Read more: How to start jewelry business in Nigeria
3) Nylon cutting business
Nylon cutter are like retailer who sale to the final consumer, you need little money to start it but its profit is not in million.
You can start it with as little as #50,000 but you need to acquire some knowledge before going into it which will be explain further before the end of this article.
Raw Material needed for nylon production
Material needed for nylon production comes from refinery and luckily there are company in Nigeria you can buy from, one of them is petrochemical refinery in river state.
Below are the raw materials you will need to kick start your nylon production business
- Low density polyethylene chips or Ecorene
- High density polythene chips or Lupene
- Color dye
Machine needed to start nylon production and there price
1) Extruder machine
This machine is use for producing nylon, it heat the raw material in to liquid and pass it to blowing machine. It cost between #8,000,000 and #20,000,000.
2) Blowing machine
This is machine that turns the heated raw material to nylon by blowing out the air and turning it into sheet. Its price is between #4,000,000 and #6,000,000
3) Cutting machine
This cut the nylon into different sizes. it cost between #2 million and #4 million
4) Punching machine
This machine is use for creating handle by making hole of different sizes. It is around #700,000
5) Printing machine
It is not compulsory to buy this machine, you can outsource the printing job, but if you have the money it is good to buy it. The machine is use for branding and designing nylon.
6) Big generator
It cost around #2 million naira.
Note most of this machine can be gotten locally (locally fabricated machine) and they are less costly
Equipment for wholesaler
For wholesaler you will need the following equipment
- Rollin iron
- Cutting machine
Equipment needed for nylon cutting business/retailer
- Scale (not compulsory)
- Cutting machine
Nylon you can sale as a producer
- Bagco bag
- Pure water nylon
- Party bags
- Yellow yellow
- Poly bag
- Toro (roll)
- Laundry bag
- Ice block nylon
Nylon you ca n sale as wholesaler and
- Bread nylon
- Fufu nylon
- Groundnut nylon
- suya nylon
Cutters can also sale what listed under producer, but since you will have to cut it profit on them is low.
How to start nylon (production, wholesale, cutting) business in Nigeria
Note: The following steps is for all the niches of nylon business
Reading this article is an act of gathering knowledge, but it does not end there, should I tell you the truth this article will only give you 20% of what you need to start nylon business if not less.
You still need to go and meet someone doing the business currently, submit yourself to the person and learn for like 2 to 3 months. If it is production try to secure work in nylon factory.
But you might not have the luxury of time, to solve this you can hire a professional who is already in the business to help you set up your business while you pay the person salary.
Don’t try to go into without knowledge believe me you don’t want to learn with your money.
2)Is your business feasible?
Feasibility study is one of core thing you must do before setting up your business, you need to know if your propose location is good by checking the competitive landscape and how much buyer will buy.
You should also check the profitability of nylon production business in your proposed location; is it good?
You know you can compare profitability of nylon business in Lagos to Ibadan there will surely be a different.
Also is your proposed location motor able and how easy to find labor because you will surely need a helping hand.
3) Research best location
For production niche you don’t need to worry about selling location, since you can produce in one state and transport it to another state but for wholesale or cutting niche, you need to find a suitable place for your business, where there will be high demand.
High traffic area or market is the best place to locate your shop this is where you will make enough sale.
4) Get capital
Once you are sure that the business is good for you the next thing is to source for capital, for large scale (production and wholesale) you need a lot of money which means personal loan, friends and family fund cannot cover it, you will need the following source
- Bank loan
- Trade credit (you buy raw material in credit)
For wholesale and cutting nylon business you will the following source of finance
- Personal money
- Friends and family
- Bank loan
Click here to read more on deferent source of finance
5) Business plan
Write a well detail business plan that will show where your business will be in the next five years and how you will get there.
For cutter you might want to pend this till you achieve a feat but put it in your mind.
Your business plan should be normal plan not 1 page business plan remember you might want to use it to secure loan or investment.
6) Register your business
You don’t want to see the trouble of government authority believe me it is not good, it can affect your business so do the needful by registering your business with the CAC (Corporate Affairs Commission) and other agency.
7) Buy equipment and raw material
For producer you will need to buy raw material from refinery (Nigeria or abroad) while wholesaler or cutter can source for nylon to resale or cut from producer.
For wholesaler and cutter you can easily get equipment needed in Nigeria but producer you might need to import it or fabricate it locally which is not advisable.
8) Set up your factory or shop
Nylon factory is like any other factory the machine should follow in sequence according to their need, you can’t set it up yourself, you will need the help of engineers but most time if you buy the machine through a Nigeria company they will help you fix it.
For wholesaler and cutter you can set up your shop any how you like.
You can’t do it alone you will need a helping hand, below are the workers you will need
- Machine operators
- Product managers
All together you will need between 10 and 20 manpower.
For wholesale and cutting business, you are your salesman; you will only need skill worker and sometime driver if your business is a little big
When hiring try to look for people that are trustworthy and can work, you can get them through referrer of a trustworthy individual.
See also: How to make money on WhatsApp in Nigeria
If you did your feasibility study well, you need not to worry about marketing, because you would have known your target customer and how to reach them.
If you are in good location nylon will sell itself but to be able to sell more try out the following advertisement medium
Distribute it around and employ your friends and family to help you out.
Let the flyer has a good design people are always in a hurry but a good design will surely catch attention
Erect a sign post
It will serve as an advert and direction
Use Radio and T.V advertising
This is the best medium for nylon producer but it is not advisable for wholesaler and cutter, it will only increase your cost.
Create social medial account for your business
Social media will make people aware of your business, and can also increase sell. You can also make use of paid ad if you want sale quickly.
Create blog and content that will drive traffic to it
Blog is everlasting traffic sources it will keep bring in traffic to your business, even when you no longer work on it, the only problem is that it can be stressful to manage.
To relief you of the stress we will help you set it up and create content that will drive traffic to it for small fee, you can contact us.
Target market for nylon business
Below are the people or industry you can target
- Fashion stores
- Pure water factory
How much does it cost to start a nylon business in Nigeria?
For nylon production business you will need between #20 million to #30, 0000 to start
For wholesale nylon business you will need between #1 million to #5 million
For nylon cutting business you will need between #50,000 to #500,000
Is selling nylon profitable?
Selling nylon is very profitable though it depends on your niche and location; you can have 100% (profit margin) profit of your cost of production.
To explain it in figure for #100,000 cost you can see #100,000 profits.
Challenges of nylon (production, wholesale, cutting) business in Nigeria
1) Power supply
No 1 challenges of nylon production business is power you need power to make and cut nylon which is not readily available.
The solution is to augment it with generator
Credits will cripple your business but funny you can’t do without it in nylon business or else you won’t make more sale.
What you can do is to sell only to your loyal customers.