Despite the abundance of household chemicals in city stores, the production of toilet paper remains no less fruitful than in past years.
This is due to the fact that the need of the population for hygiene items, especially the low price category, continues to grow. In rural areas, cheap toilet paper is often in high demand.
However, before production begins, it is necessary to research the market, identify demand and prices, learn everything you can about competitors.
Marketing research regarding the demand for finished products should be carried out not so much in the city as in the nearest region. It is there that the main groups of potential consumers are located, which form the demand for inexpensive goods.
There is no point in competing with large manufacturers in the production of expensive multilayer toilet paper: the cost of producing huge volumes of paper will still be lower than that of a small private enterprise.
For the production of inexpensive toilet paper, you can use both cheaper equipment and practically free waste paper.
It should be noted right away that the profitability of the future enterprise depends on which technology will be chosen for paper production.
The easiest option is to buy ready-made raw materials in the form of rolls, cut paper, wrap it in a wrapper and sell it to wholesale buyers.
To implement this option, you need a limited set of equipment and a smaller room. The initial investment in such production is low, but the profitability is also low, since the finished raw material will eat up the main margin.
More profitable is the full cycle of toilet paper production. It involves the processing and cleaning of waste paper, the manufacture of raw materials, drying and cutting rolls. The cost of equipment in this case can be up to 6 thousand dollars.
However, independence from suppliers and high margins make it possible to recoup these costs much faster than in the first option.
The difficulty in such production is compliance with regulatory requirements, since it will not work to become a wholesale supplier of raw materials for other manufacturers without certification.
To organize the production of toilet paper, certain areas will be required, which can be divided into three parts:
- warehouse of raw materials;
- production area;
- finished goods warehouse.
A full production cycle will require an area of at least 300-500 square meters, while 100 square meters will be enough for cutting and packing paper.
The return on initial investment in paper production is about a year.
However, you can quickly make a profit only if the entrepreneur strictly adheres to the business plan and does not incur unnecessary expenses.
