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Sanitizer Bus No 2
Sanitizer Bus No 2
Sanitizer Bus No 2
Business
Do you want to start a hand sanitizer company? If YES, here is a guide on how to
start a hand sanitizer manufacturing business with no money or experience plus
a hand sanitizer manufacturing business plan.
If there is any product that is in high demand in pharmacies and supermarkets since
the advent of the coronavirus, then it must be alcohol-based liquid hand sanitizer. The
fact that alcohol-based hand sanitizer is one of the antidotes to coronavirus or any
virus, bacteria and germs at that, means that the product is bound to sell well.
As a matter of fact, economic downturn hardly affects the usage of hand sanitizers
because the commodity plays a major role in the health sector. If indeed you are
interested in starting a hand sanitizer manufacturing company, then you will surely find
this article very helpful.
Industry Overview
Businesses in the Hand Sanitizer manufacturing industry are involved in the
manufacturing of hand sanitizers in a variety of forms, including gel, foam, wipes and
liquid. Hand sanitizers and hand antiseptics offer alternatives to hand washing with
soap and water.
Research conducted by IBISWorld shows that in the united states of America, over the
five years to 2019, the Hand Sanitizer Manufacturing industry has experienced healthy
growth, with total industry revenue expected to rise. This growth can largely be
attributed to heightened consumer health consciousness over the past five years
leading to a rise in total health expenditure.
The industry is responsible for the employment of over 906 people. Experts project the
industry to grow at a 3.9 percent annual rate. Gojo Industries Inc and Vi-Jon
Laboratories are the leaders in the Hand Sanitizer Manufacturing industry, they have
the lion market share in the United States of America and in most countries of the
world.
Due to the high costs of manufacturing, marketing and distribution of hand sanitizers,
large corporations dominate the Hand Sanitizer Manufacturing industry. Despite the
fact that big corporations dominate the industry, but starting a small – scale hand
sanitizer production business has minimal barriers to entry, with low startup capital.
Most players in the are small to medium sized establishments that cater to the local
community.
Some of the factors and incentives that encourage aspiring entrepreneurs to venture
into business is the fact that the market is pretty huge and not seasonal. That makes it
easier for entrepreneurs to come into the industry at any time they desire; the entry
barriers are quite affordable and any serious – minded entrepreneur can comfortably
raise the startup capital without collecting loans from the bank.
Over and above, the Hand Sanitizer Manufacturing industry is a profitable industry and
it is open for any aspiring entrepreneur to come in and establish his or her business as
long as you are able to obtain the required licenses. You can choose to start on a small
scale producing limited quantities or you can choose to start on a large scale producing
hand sanitizer products in a variety of forms.
The demographic and psychographic composition of those who make use of hand
sanitizer cut across various medical practitioners and everybody on planet earth
especially in this era of the corona virus pandemic hence the demographic composition
of the hand sanitizer manufacturing business is all encompassing.
List of Niche ideas Within this Particular Business That You Can Specialize in
Manufacturing and packaging alcohol and non – alcohol based bottled hand
sanitizers for wholesale distribution
The competition that exist in the hand sanitizer manufacturing business goes beyond
competitions amongst hand sanitizer manufacturers in your city or country; it is both
nationally and internationally. Major hand sanitizer brands in China, Germany, France,
Italy, united kingdom and in any part of the world can be found in pharmaceutical
stores all across the United States of America.
So, it will be right to say the competition in the hand sanitizer manufacturing business
is tough. The truth is that no matter the level of competition in an industry, if you have
done your due diligence and you brand and promote your products or business
properly, you will always make headway in the industry. Just ensure you have what it
takes to churn out quality hand sanitizer and similar products and you know how to
reach out to your target market.
But over and above, there are several hand sanitizer manufacturing companies
scattered all around the United States. So, if you choose to start your own, you will
definitely meet stiff competitions. Besides, there are larger hand sanitizer
manufacturing companies / brand such as Gojo Industries Inc and Vi-Jon Laboratories
that determine the trend in the industry and you should be ready to compete with
them for customers.
These are some of the leading hand sanitizer manufacturing companies/brands in the
United States of America and in the globe;
Economic Analysis
If you are looking towards successfully launching a business and maximizing profits,
then you need to ensure that you get your economic analysis right and try as much as
possible to adopt best practices in the industry you choose to build a business in.
Hand sanitizer manufacturing business is not a Green business, as a matter of fact, you
will come across several brand names in your local pharmaceutical stores when you go
shopping. So, if you are mapping out your economic analysis, you should carry out
thorough market survey and costing of the required raw materials, branding and other
equipment needed to successfully run the business.
If you are considering starting a hand sanitizer manufacturing company, then your
concern should not be limited to the cost of setting up the business and churning out a
wide variety of quality hand sanitizers but also on branding and on how to build a
robust distribution network. The truth is that if you are able to build a robust
distribution network, you are sure going to maximize profits in the business.
Unfortunately, you can hardly find the franchise of a hand sanitizer company to
purchase meaning that if you want to own a hand sanitizer manufacturing business,
you must be ready to start from the scratch.
The truth is that it will pay you to start your hand sanitizer company from the scratch.
Starting from the scratch will afford you the opportunity to conduct thorough market
survey and feasibility studies before choosing a location to launch the business.
Please note that most of the successful hand sanitizer manufacturing companies
around started from the scratch and they were able to build a solid business brand. It
takes dedication, hard work and determination to achieve business success.
But if your intention is to grow the business and have your hand sanitizer distributed
across the United States of America and other countries of the world, then choosing
sole proprietor is not an option for you. Limited Liability Company or even general
partnership will cut it for you.
Setting up an LLC protects you from personal liability. If anything goes wrong in the
business, it is only the money that you invested into the limited liability company that
will be at risk. It is not so for sole proprietorships and general partnerships. Limited
liability companies are simpler and more flexible to operate and you don’t need a
board of directors, shareholder meetings and other managerial formalities.
These are some of the factors you should consider before choosing a legal entity for
your hand sanitizer manufacturing business; limitation of personal liability, ease of
transferability, admission of new owners and investors’ expectation and of course
taxes.
If you take your time to study the various legal entities, you will agree that limited
liability company is most suitable. You can start this type of business as limited liability
company (LLC) and in future convert it to a ‘C’ corporation or ‘S’ corporation especially
when you have the plans of going public.
Upgrading to a ‘C’ corporation or ‘S’ corporation will give you the opportunity to grow
your hand sanitizer manufacturing business so as to compete with major players in the
industry; you will be able to generate capital from venture capital firms, you will enjoy
separate tax structure, and you can easily transfer ownership of the company.
Insurance Policies
In the United States and in most countries of the world, you can’t operate a business
without having some of the basic insurance policy covers that are required by the
industry you want to operate from. So, it is important to create a budget for insurance
and perhaps consult an insurance broker to guide you in choosing the best and most
appropriate insurance policies for your hand sanitizer manufacturing business.
Here are some of the basic insurance cover that you should consider purchasing if you
want to start your own hand sanitizer manufacturing business in the United States of
America;
General insurance
Health insurance
Liability insurance
Workers Compensation
Overhead expense disability insurance
Business owner’s policy group insurance
Payment protection insurance
If any business requires intellectual property protection (copyright ©), then it should be
a hand sanitizer manufacturing business. The truth is that your formula needs to be
protected or else anybody can successfully fake or create similar products and make
money off your brand name.
Please note that in the United States, if you want to register your trademark, you are
expected to begin the process by filing an application with the USPTO. The final
approval of your trademark is subjected to the review of attorneys as required by
USPTO.
Professional Certification
Although you do not need any special professional certification before you can
successfully start your own hand sanitizer manufacturing business, but you will do
yourself a whole lot of favor if you study chemical engineering or related course before
starting this this type of business. It will afford you the opportunity to truly maximize
the business.
These are some of the basic legal documents that you are expected to have in place if
you want to legally run your own hand sanitizer manufacturing company in the United
States of America;
Certificate of Incorporation
Business License
Chemical Handler’s Certificate
Business Plan
Non – disclosure Agreement
Employee Handbook
Employment Agreement (offer letters)
Operating Agreement for LLCs
Insurance Policy
Online Privacy Policy Document
Apostille (for those who intend operating beyond the United States of America)
Company Bylaws
Memorandum of Understanding (MoU)
Franchise or Trademark License (optional)
When it comes to financing a business, one of the first things you should consider is to
write a good business plan. If you have a good and workable business plan document
in place, you may not have to labor yourself before convincing your bank, investors and
your friends to invest in your business.
Here are some of the options you can explore when sourcing for startup capital for
your hand sanitizer manufacturing business;
Raising money from personal savings and sale of personal stocks and properties
Raising money from investors and business partners
Sell shares to interested investors
Applying for Loan from your Bank
Pitching your business idea and applying for business grants and seed
funding from donor organizations and angel investors
Source for soft loans from your family members and your friends .
It cannot be overemphasized that the location you chose to open your hand sanitizer
manufacturing business is key to the success of the business; hence entrepreneurs are
willing to rent or lease a facility in a visible location; a location where the demography
consists of people who make use of hand sanitizer daily.
If you don’t have enough cash, you can start with fairly used equipment / machines but
if you are financially buoyant, then you should go for brand new ones since they
usually have a long lifespan.
As regards leasing or outright purchase of a production facility or warehouse facility,
the choice is dependent on your financial standings, but the truth is that to be on the
safe side, it is advisable to start off with a short – term rent / lease while test running
the business in the location. If things work out as planned, then you go on a long – term
lease or outright purchase of the property.
Generally, the hand sanitizer production line has hand sanitizer mixer, mixing
preparation pot, working platform, control panels and essential pipes, valves and
filters. Formulations vary widely. A number of active ingredients are used, for example
benzalkonium chloride, however, the most effective sanitizing products are based on
alcohol, usually isopropyl or ethyl alcohol.
Ideally, the alcohol content is between 60 and 95 percent. The alcohol is usually
blended with an aqueous dispersion of carbomers such as Carbopol to provide the
gelling effect, although some products are lower viscosity for use in foam dispensers.
One of the key steps in the manufacturing process is preparation of the gel. Obtaining
an agglomerate-free dispersion is essential to ensure a clear, bright gel after
neutralization. Some formulations include surfactants and moisturizers such as
glycerine to protect the skin and prevent drying out the skin.
These may make up a small proportion of the overall formulation so the mixing system
must be capable of dispersing them uniformly throughout the product. The remaining
ingredients include moisturizers and fragrance and occasionally coloring may also be
added.
The quality and uniqueness of your hand sanitizer, your business process and of
course your pricing model are part of what you need to stay competitive in the
industry. If wholesale distributors are making profits from selling your products, they
will be more than willing to help you push your products to every nooks and crannies
of the cities they distribute products.
Another possible competitive strategy for winning your competitors in this particular
industry is to build a robust distribution cum business network. Over and above,
ensure that your organization is well positioned, key members of your team are highly
qualified and your hand sanitizers can favorably compete with the some of the best in
the industry.
When it comes to business, no matter the industry that you choose to pitch your tent
in, one of the easiest ways to increase customer retention and perhaps to attract new
customers is to produce results and satisfy your customers always. If your customers
are satisfied with your services delivery or products, they can hardly source for
alternative service provider or products.
Statistics has it that one of the major reasons why clients’ source for alternative service
provider or product is when there is a drop in quality. Another reason is poor customer
service. If you can continue to improve on the quality of your hand sanitizer and your
customer service delivery, then you won’t struggle to maintain loyal customers.
Part of what you need to do to achieve this is to track progress, results or outputs with
the aim of improving on them quickly as the case demands. When it comes to
managing your customers, and building loyal clientele base, you should purchase a
customized CRM software.
With a customized CRM system, you can easily stay in touch with your clients (you can
carry out quick surveys, you can introduce new products and prices to them without
any hitch, you can felicitate with them on their birthdays and other anniversaries, you
can keep track of their progress, you can send bulk sms and customized e – mails and
above all, you can easily receive compliant and feedback from them).
If you are in business and you are not deliberate about boosting you brand awareness
and communicating your corporate identity, then you should be ready to take on
whatever the society portray your business to be. One of the secrets of larger
corporations is that they are willing to spend fortunes to boost their brand awareness
and to continue to communicate their corporate identity the way they want people to
perceive them to be.
Here are the platforms you can leverage on to boost your brand awareness and create
corporate identity for your hand sanitizer manufacturing company;
Place adverts on both print (newspapers and medical related magazines) and
electronic media platforms
Sponsor relevant community – based events / programs
Leverage on the internet and social media platforms like; Instagram, Facebook,
Twitter, YouTube, Google + et al to promote your business
Install your Bill Boards on strategic locations all around your city or state
Distribute your fliers and handbills in target areas
List your hand sanitizer manufacturing company in local directories / yellow
pages
Advertise your hand sanitizer manufacturing company in your official website
and employ strategies that will help you pull traffic to the site.
Ensure that all your staff members wear your branded shirts and all your
vehicles and distribution trucks / vans are well branded with your company logo
et al.