REQUIREMENTS AND COST (Ushs) FORMAKING LIQUID SOAP

Below are the requirements to be in place before getting to the chemical and later liquid soap.

1. Universal-wide range PH indicator of 1-14 or 2-10.5 =6500 (Ph paper:Litmus Paper)

2. Mingling(mixing) stick = 2500
3. Weighing scale...........=7500
4. Gas Mask...................=6000
5. Containers(3)..............=18000
6. Water tank(1).............=15000

Total...............................= 55,500 Ushs

Chemicals and the Cost for making 400litre

1. sulphonic Acid................20 kg*1kg =5000 =100,000 Ushs

2. Caustic soda...................2-2.6kgs

   (sodium Hydroxide) 5kgs=40,000 Ushs @8000

3. Tibro /Ungerol/Slies.........20kgs @5500=110,000 Ushs

4. Urea...............................4kgs @1500=6000 Ushs

5. Sodium Metasilicate.........4kgs @8000=32000 Ushs

6. colour (Apple Green).........1kgs @28000 Ushs

7. Perfume (Lemon,Lavender).1 kg @32000 Ushs

8. Water...............................400 litre @ 100=2000 Ushs

9. Salt...................................5kgs@250=1250 Ushs

Total.................................................... 251250

Other costs

Labels....(40 stickers on the containers)......................................32000 Ushs

Packing 5,10 and 20 litre jerican plus (recycled water bottles),........20000 Ushs

Marketing.................................................................................20000 Ushs

Transport cost...........................................................................50000 Ushs

Total.............................................................................. =122,000Ushs

Grand total..................................................................428,750 Ushs only

This is the amount required to make 400litres of liquid soap and sales possibly.

5 litres sells for 7500 Ushs.

Waiting for all comments and advice towards the soap development in Gulu

To make 400 litre after getting started ,the cost of the other materials wont be required especiall one which are fixed like the containers but the exact amount for the the chemicals which will produce liquid soap is 251250

What are the labor costs? Who will be making the soap. Will it be just you or or others involved? How will the profit be divided?

Where will you make the soap? Is there any rent involved?

Will fuel (charcoal, gas??) be needed in the process.

This is a good start but we need to fine tune the business plan a little so we can project the profits and the sustainability of the program.

Also, the chemicals you have listed...Is this enough to only make the 400 liters?

Is there a cost difference if you buy the chemicals in larger quantities?

The 40 labels....are these to be printed by a local printer?

Hey munno, the members from kampala need the soap knowledge.

I will be the one making the liquid soap because it require little labor especiall for few littres like 400 and other women after teaching them how to make it.

At the centre.No rent is involved.

No fuel is required

Evvy Bryning said:

What are the labor costs? Who will be making the soap. Will it be just you or or others involved? How will the profit be divided?

Where will you make the soap? Is there any rent involved?

Will fuel (charcoal, gas??) be needed in the process.

This is a good start but we need to fine tune the business plan a little so we can project the profits and the sustainability of the program.

Good Luck dear, it has been a very long struggle , wish it could be successful this time.

Munnu,

Perhaps the best place to start is with a statement of purpose or goals.

Is this to be a community project or is this just your project?

Can you please write a brief description of what you want this project to accomplish. What you goals are?

Once we have that clearly defined the rest of the business plan can be organized so that the goals are met.

Well,at the start of it all this project was intended to help part of a community here in Gulu which really had nothing but depended on making the pyparius mats as their source of income year after year but remained still poor and I thought this would be much helpful.

However,The Lia community also needed this same help and really wanted to learn how to make liquid soap because our beads market was abit low and No market days but this liquid soap sells well and because there are no people who make but its needed by many large and small scale,I saw the need to have it all learnt round.However,It was not simple to get the knowledge to make but the all thing was to get trained in the city of Kampala and find out the raw material source and difinately get started.

And now if it gets started probably all members will have to be thought how to make it because its very simple and the market is there even the community members are the source of market because they will need to use it. Its a community project though I used my personal saving to get trained .I'll trained all the Lia/Ned members how to make it and we have alarge market.

Thanks y'all.

I wish only success for the project so that community of all the three centers of Gulu, Kampala and Opok benefited from it,not only specialised on one thing.

Excellent. I think it is a great idea to set this up as a community project to supplement the members income. And it will be very good for it to be available to all three centers.

So, here are my next questions:

1. The price that you list is to sell 5 liters for 7500US. Is this the price that you will sell the soap to members making it the wholesale price? If so, what price will they sell to customers for? This is assuming that they will buy the soap from you and then resell it.
2. If this is not a wholesale price, then how will the profits be distributed to the community?

I am asking these questions so we can write a solid business plan in order to get a loan to start this up. Right now it is just not clear how the profit will be used or the community will benefit. lets get it very clear from the beginning so there are no misunderstandings.

It is wonderful that you are so enthusiastic about this and have put so much of your own effort into it. I think it is a good idea and could be very successful but we need to get the plan really fine tuned.

I also forgot to ask you how long does it take to make the 400 liters of soap and how long do you think it will take to sell it. It would be good to know what you plan as the monthly production will be.

Its my pride to also answer the good questions that you have towards this project.The 7500 Ushs is the price for the consumers but the idea of wholesale and retail price wont be much differen but however to sell in wholesale will depend on the production capacity and the wholesalers who will intend to buy from us and sell in the neigbouring districts of Kitgum ,Lamwo and Pader and may be west nile.

Members them selves will be the source of market ,hospitals around ,schools and other institutions this means that many members will be involved in the production to suit the market demand but still with more members it will mean more capital and middle men will be eliminated but only if we will have to deal directly with the consumers in the different ares I had mentioned earlier. And the distribution of the profit will be distributed in the form of bananas as it was before where by you you partispate in doing sometime it means you will given bananas and at the end of the month you recieved it inform of cash ,because this production will be as group.(group production)

Making 400 litres depends on the numbers of people partispating and the size of the containers and time you have devoted to do it but generally it takes 24 to 48 hours .

Okay. I have more questions but will ask them later. I have to go to work now (here it is almost 6:30am) but later today I will try and set up a workspace for this project so we can get all the details spelled out in one place. It is sounding very good.

I have started a workspace for us to work on

I am having trouble making a link to it so I will just put the url

http://www.ned.com/group/nedugan da/ws/index/?e=editpage

I have listed all your information and in each category there are questions that need to be answered.

Munnu. Two questions.

Can you list 2-3 orgs that would buy the liquid soap if you had it tomorrow?

Who all is responsible for selling the soap in Gulu?

1.Norwegian Refugee Council(NRC)

2.Anaka Hospital and Gulu Hospital

3.War Child Holland.

I will be responsible but the all thing will be for the marketing department (Ned Uganda).

This is looking quite promising! Good work Munnu!

It looks like a 40% markup for these costs, which is not bad, but I think it wise to consider labor as a cost also after this prototype is tested. Am I correct in converting this startup cost amount to be about $250 US dollars?

I actually think the figure will be $300 needed to start the project.

There are no actualy labor costs. The members of the community have a system in place called 'bananas'. They participate in projects and earn bananas (points) and then at the end of the month their bananas are exchanged for a share in the profits. The number of shares they earn is based on the number of bananas they have earned.

Here are some more questions:

1. How many liters of soap do you project that you will makes each month
2. How many members do you think will participate in this
3. The group production of jewelry earns 1 banana for 2 hours of work. Will this be the same for the soap.
4. How many bananas will be earned for selling.
5. You have listed the cost of 5 liters as =7500. Is this the going rate
6. How much will you sell a smaller amount for like a water bottle full.
7. Is liquid soap currently available in the area or do they bring it in from outside

7. How much are the places like the hospital paying for the soap now

Munnu Morrish said:

1.Norwegian Refugee Council(NRC)

2.Anaka Hospital and Gulu Hospital

3.War Child Holland.

I will be responsible but the all thing will be for the marketing department (Ned Uganda).

These look good. Have you actually talked to them and will they agree to buy from you?

To work on your projections for production, can you estimate how much each of these would use.

What about quality control?

And on a more personal note...

Munnu Morrish, you are a shining star.

I am so inspired to see the seriousness with which you have pursued this idea so far. Months ago, I remember you asking me what you needed to do to get it off the ground and I told you to learn everything you could. Look how far you have come, and how much you know about soap now! When you've gathered the knowledge you need, the resources will fall into place - good on you for keeping faith in that. I am very impressed and proud of you. It's a pleasure to watch you grow through this experience. Congratulations - you will soon be there!

Munnu, great stuff indeed. Let me explore some ideas regarding funding this. Let's look at 3 different funding scenarios.

1. A traditional microfinance funding of 35% interest over 18-24 months.
2. A ned.com based microfinance based funding of 20-25% interest over 12 months.
3. a mirco-angel investment which then returns 5-10% of all future cashflow which would entail a permanent dividend (to then be reinvested in other local ventures) on an ongoing basis.

Which of these three looks most appealing?

Evvy Bryning said:

Munnu Morrish said:

1.Norwegian Refugee Council(NRC)

2.Anaka Hospital and Gulu Hospital

3.War Child Holland.

I will be responsible but the all thing will be for the marketing department (Ned Uganda).

These look good. Have you actually talked to them and will they agree to buy from you?

Robert Oketa(breakfast cordinator) works in the security department with the NRC and is the one working on the connecting us for this source of market as well as War Child Holland.

For the case of the Anaka and Gulu hospital,George Ovola and Finny have some control on the departments of cleaning and maintaining the hospitals so they promised me they would buy our liquid soap.

Gulu University is another market.Katusi Denis is incharge of compound designing and maintainance and he said they can buy up to 60 litres a month

Gulu clinical school.Micheal Akena the production manager Gulu is connecting this and he said they use 80 litres amonth

To work on your projections for production, can you estimate how much each of these would use.

NRC 50 litres

Gulu University 60 litres

Gulu clinical school 80 litres

WAr Child 60 litres

ACDI-VOCA USAID 10litres (micheal)

Mark Grimes said:

Munnu, great stuff indeed. Let me explore some ideas regarding funding this. Let's look at 3 different funding scenarios.

1. A traditional microfinance funding of 35% interest over 18-24 months.
2. A ned.com based microfinance based funding of 20-25% interest over 12 months.
3. a mirco-angel investment which then returns 5-10% of all future cashflow which would entail a permanent dividend (to then be reinvested in other local ventures) on an ongoing basis.

Which of these three looks most appealing?

3 I think is the best just because it will the be reinvested in other local ventures) on an ongoing basis.I f I understood it correctly.

Thanks Mark