HOW TO START A PAINT MANUFACTURING BUSINESS IN NIGERIA.

Introduction

In Nigeria, paint manufacturing companies have been in existence since the early sixties, though most of them existed as subsidiaries of foreign companies until the indigestion decree that saw many of them being partly or wholly bought over by local investors.

Paint is any pigmented liquid, liquefiable, or mastic composition that, after application to a substrate in a thin layer, is converted to a solid film and it is most commonly used to protect, colour, or provide texture to objects.

The Nigerian paint market has witnessed the emergence of new, small-scale brands battling for market share with the ‘big elephants’ in the industry, some of which are listed on the Nigerian Stock Exchange.

Brands in the market

The paint industry in Nigeria is a very competitive one. Numerous companies, both big and small, continuously push the boundaries through innovation in order to churn out the finest paints.

The paints variants can be classified into the decorative paints segment and industrial paints segment. While decorative paints are used for interior and exterior house paintings, industrial paints are used for industrial paintings.

Variants in the decorative paint segment include emulsion, gloss, and silk/satin, while the variants of industrial paints include auto paints, marine paints, wood, road markings, bright aluminium, bituminous, etc.

Notable brands in the Nigerian market include Berger Paints, Dulux, Caplux, Finecoat, President, Prestige, and Eagle, just to mention a few.

A 2016 Data from the Standards Organization of Nigeria (SON) reveals that there are 68 registered paint producers in Nigeria that meet SON requirements.

Big Players in the Paint Manufacturing Business in Nigeria

These are manufacturers that laid the foundation of indigenous paint manufacturing in Nigeria and have continued to remain on top by refusing to compromise the quality of their products. They control the market and have been in existence for decades, starting as importers of paint products but moving to local production as demand increases.

Chemical and Allied Products (CAP) PLC, a subsidiary of UAC of Nigeria (UACN) Plc, is in the paint and coat production business. The company was established originally Imperial Chemical Industries, but later became ICI Nigeria Limited in 1965. It has grown over the years to become one of Nigeria’s leading paint manufacturers. It has a wide range of paint variants that have continued to meet the various painting needs of Nigerians. Its major brand includes the popular Dulux and Caplux brands.

Berger Paints

Berger Paints has brands in different segments, ranging from the Luxol Emulsion, Fire Resistant Texcote, and Luxol Gloss.

The company was formerly known as British Paints (W.A.) Limited. It is the first paint manufacturing company to be quoted on the floor of the Nigerian Stock Exchange (1973).

Meyer PLC

Meyer Plc currently has brands doing well in the Decorative, Auto Refinishes, Industrial and Wood Finishes.

Meyer Plc is an offshoot of former Hagemeyer Nigeria Limited, the manufacturer of Sigma Paints and Cosmetics. In 1994, Hagemeyer was bought over by Dunlop Nigeria Plc, which led to the change of both the corporate and brand names to DN Meyer Plc and Meyer Paints respectively.

In July 2003, Dunlop Nigeria Plc divested its controlling shares from DN Meyer Plc to ACIMS Limited and DN Meyer Plc ceased to be a subsidiary of Dunlop Nigeria Plc.

Chemstar Industry Nigeria Limited

Chemstar Industry Nigeria Limited, makers of Finecoat and Shield Paints, has grown from a small beginning in 1995 to a huge player in the market.

There are other local and small brands that continue to play on the fringes in the Paint market space.

Starting a Paint Manufacturing Business requires Readiness of the Entrepreneur in Nigeria

SELF-APPRAISAL FOR THE BUSINESS/READINESS FOR ENTREPRENEURSHIP

A profound review of the literature on entrepreneurship reveals that it does not exist a specific information tool to measure the individuals’ readiness for entrepreneurship. The purpose of this research has been building such kind of instrument to estimate the individuals’ readiness for entrepreneurship. Its design takes in consideration the inclusion of the main variables identified by the literature as those most associated with entrepreneurial profiles. These variables have been grouped into three categories: sociological, psychological and managerial-entrepreneurial. Each group provides batteries of items which are evaluated thanks to a specific scoring system. The final objective is to provide a system to calculate individual scores of readiness for entrepreneurship and, at the same time, partial scores on concrete aspects of it. The information tool is presented at this paper and will be tested and refined in the near

The disadvantage of owing a  Paint Manufacturing Company

As with any other business, there are definitely some dangers associated with starting your own painting business. But that’s why you are reading here, to learn how to avoid mistakes and become successful.

First, you can lose money.

There is always a very real possibility that you could lose money. The bigger you try to grow, the more risk you will take on. More employees mean more overhead (risk) but also means more potential reward.

The best way to minimize your risk is to grow slowly. Make sure you are profitable as a one-man company, then move to two and make a profit, then three and so on.

You may also find yourself working long hours. While being your own boss means setting your own hours, every entrepreneur knows that in reality, it is often your client and deadlines that set your hours. At the end of the day, you are the one responsible to make sure a job gets done and you get a paycheck. On numerous occasions I found myself working late into the night to hit a deadline, usually because of poor planning on my part.

See also

Finally, you may not like parts of the job. It’s ok to not like everything about running your own painting business. Personally, I really don’t like bookkeeping and dealing with difficult clients. I love to market, train and do good old-fashioned hard work. Find the stuff you love to do and are good at, and once you can afford it, hire out the parts that you don’t care for.

ADVANTAGES OF PAINT MANUFACTURING BUSINESS: “When I first started my company, I started out making $25 / hr and I thought this was pretty good. Eventually, I got better at painting, bidding, selling and marketing and my pay rose as my skill set rose. I was making $50 an hour, then $75, $100 and eventually I was consistently making $150 an hour.

I was able to do this because I had a high demand for my service, delivered the best quality possible and found a niche that was willing to pay well. It was during this time when I ran the small business I had run, just me and one helper. I averaged $150 an hour while my helper was able to pull in $75 an hour (I paid him $20 / hr and ended up making $205 an hour on my jobs).

Second, you get to decide your own hours. I don’t like rushing out the door in the morning and fighting traffic, so I would start my jobs typically at 9 am (unless a client had special needs). I would usually work until 4 and wrap up my day. If business was going good and I wanted a long weekend (assuming my jobs were complete), I would take one. Same with vacations.”

Another reward is that you are building an asset.

It may not always feel like it, but you are building an asset that has value as you build your painting company. Your database of all of your past clients along with your website and lead generation will be a sellable asset if you ever choose to get out of the business.

Self-motivation skill: is an important skill. Self-motivation drives people to keep going even in the face of set-backs, to take up opportunities, and to show commitment to what they want to achieve.

Customer services skill:

1. Persuasive Speaking Skills. Think of the most persuasive speaker in your organization. …
2. …
3. …
4. Ability to Use Positive Language. …
5. Clear Communication Skills. …
6. Self-Control. …
7. Taking Responsibility. …

Business survey skill: this simply entails the technical know-how of the particular establishment.

PERSONNEL REQUIRE IN START PAINT MANUFACTURE: To function as a paint maker, you’ll need to ensure you have the correct paint manufacturing equipment.  Production is a detailed process that involves infusing water with a number of ingredients. The manufacturing process also requires the final product to be filled into the correct packaging, which could be a packet or bottle and it operation require ten (10). To twenty (20) staff for a start.

TECHNOLOGY REQUIRE IN MANUFACTURING PAINTS ARE

Web Converting Systems

Unwinds

Winders

Coaters

Laminators, Embossers, and Calenders

Web Handling Equipment

Roll Handling Equipment

Narrow Web

Drive & Control Systems

Cleanroom Equipment

Dryers & Apparatus Units

Specialty

Equipment Brochures.

BRANDING NEED FOR PAINT MANUFACTURING BUSINESS IN NIGERIA

THE ULTIMATE GUIDE TO BUILDING YOUR BRAND

Use our step-by-step workbook with tips, templates, and guidance to help build a brand for your business! Define your target audience, research competitors, develop a voice…and more

What is a brand?

Simply put, your brand is defined by a customer’s overall perception of your business.

Your brand is your reputation!

In today’s market, a successful brand has to be consistent in communication and experience, across many applications:

• Environment (storefront or office)
• Print collateral, signage, packaging
• Website & online advertising
• Content publishing
• Sales & customer service
• Internal (with employees)

Now, brand building being simple? The truth is: branding doesn’t happen overnight…or even in a few months.

Building a brand is definitely a process and requires a strategy. However, the ongoing effort will result in establishing long-term relationships with your customers.

This can lead to a steady increase in leads and sales, word-of-mouth referrals, and advocacy for your products or services.

What is brand building?

The definition of brand building is to generate awareness about your business using strategies and campaigns with the goal of creating a unique and lasting image in the marketplace.

Positive image + standing out = brand success.

Branding can be broken down into three high-level phases:

1. Brand Strategy
2. Brand Identity
3. Brand Marketing

Brand Strategy will map out how you are different, trustworthy, memorable, and likeable to your ideal customer. It will convey your purpose, promises, and how you solve problems for people.

The first step you need to take when creating a brand from the ground up (whether you are just starting or already established).

You wouldn’t build a home without a blueprint or plans, right?

It’s the same with your brand.

You can think of brand strategy as the blueprint for how you want the world to see your business.

An effective and comprehensive brand strategy should include the following components as part of the process:

• Brand discovery
• Competitor research
• Target audience
• Brand voice
• Brand message & story

Brand strategy is a critical and foundational piece for building a successful brand. It’s one of the areas that most businesses overlook because they jump right into the design and marketing.

Brand Identity is the way that you convey this to the public with visuals, messaging, and experience. Your brand strategy will influence how you present your identity and align it with your purpose for the most impact.

Your elements of brand identity should be applied across all channels consistently. It’s the way that your business becomes recognizable.

This includes your:

• Logo
• Colours and fonts
• Patterns and icons
• Collateral
• Website design
• Content and messaging
• Advertising
• Print or packaging

Brand Marketing is the way that businesses or organizations highlight and bring awareness to products or services by connecting values and voice to the right audience through strategic communication.

In 2020, the amplification of your brand image can be done effectively through various digital marketing activities:

• User Experience (i.e. your website)
• SEO & Content Marketing
• Social Media Marketing
• Email Marketing
• Paid Advertising (PPC)

1. Brand Strategy
2. Brand Identity
3. Brand Marketing

Brand Strategy will map out how you are different, trustworthy, memorable, and likable by your ideal customer. It will convey your purpose, promises, and how you solve problems for people.

This is the first step you need to take when creating a brand from the ground up (whether you are just starting or already established).

You wouldn’t build a home without a blueprint or plans, right?

It’s the same with your brand.

You can think of brand strategy as the blueprint for how you want the world to see your business.

An effective and comprehensive brand building should include the following components as part of the process:

• Brand discovery
• Competitor research
• Target audience
• Brand voice
• Brand message & story

Brand strategy is a critical and foundational piece for building a successful brand. It’s one of the areas that most businesses overlook because they jump right into the design and marketing.

Design

Paint is generally custom-made to fit the needs of industrial customers. For example, one might be especially interested in a fast-drying paint, while another might desire a paint that supplies good coverage over a long lifetime. Paint intended for the consumer can also be custom-made. Paint manufacturers provide such a wide range of colours that it is impossible to keep large quantities of each on hand. To meet a request for “aquamarine,” “canary yellow,” or “maroon,” the manufacturer will select a base that is appropriate for the deepness of colour required. (Pastel paint bases will have high amounts of titanium dioxide, the white pigment, while darker tones will have less.) Then, according to a predetermined formula, the manufacturer can introduce various pigments from calibrated cylinders to obtain the proper colour.

The Manufacturing
Process

Making the paste

• 1 Pigment manufacturers send bags of fine grain pigments to paint plants. There, the pigment is premixed with resin (a wetting agent that assists in moistening the pigment), one or more solvents, and additives to form a paste.

Dispersing the pigment

• 2 The paste mixture for most industrial and some consumer paints is now routed into a sand mill, a large cylinder that agitates tiny particles of sand or silica to grind the pigment particles, making them smaller and dispersing them throughout the mixture. The mixture is then filtered to remove the sand particles.
• 3 Instead of being processed in sand mills, up to 90 percent of the water-based latex paints designed for use by individual homeowners are instead processed in a high-speed dispersion tank. There, the premixed paste is subjected to high-speed agitation by a circular, toothed blade attached to a rotating shaft. This process blends the pigment into the solvent.

Thinning the paste

• 4 Whether created by a sand mill or a dispersion tank, the paste must now be thinned to produce the final product. Transferred to large kettles, it is agitated with the proper amount of solvent for the type of paint desired.

Canning the paint

• 5 The finished paint product is then pumped into the canning room. For the standard 8 pint (3.78 litter) paint can available to consumers, empty cans are first rolled horizontally onto labels, then set upright so that the paint can be pumped into them. A machine places lids onto the filled cans, and a second machine presses on the lids to seal them. From wire that is fed into it from coils, a bail meter cuts and shapes the handles before hooking them into holes pre-cut in the cans. A certain number of cans (usually four) are then boxed and stacked before being sent to the warehouse.

Quality Control

Paint manufacturers utilize an extensive array of quality control measures. The ingredients and the manufacturing process undergo stringent tests, and the finished product is checked to insure that it is of high quality. A finished paint is inspected for its density, fineness of grind, dispersion, and viscosity. Paint is then applied to a surface and studied for bleed resistance, rate of drying, and texture.

In terms of the paint’s aesthetic components, colour is checked by an experienced observer and by spectral analysis to see if it matches a standard desired colour. Resistance of the colour to fading caused by the elements is determined by exposing a portion of a painted surface to an arc light and comparing the amount of fading to a painted surface that was not so exposed. The paint’s hiding power is measured by painting it over a black surface and a white surface. The ratio of coverage on the black surface to coverage on the white surface is then determined, with .98 being high-quality paint. Gloss is measured by determining the amount of reflected light given off a painted surface.

Tests to measure the paint’s more functional qualities include one for mar resistance, which entails scratching or abrading a dried coat of paint. Adhesion is tested by making a crosshatch, calibrated to .07 inch (2 millimetres), on a dried paint surface. A piece of tape is applied to the crosshatch, then pulled off; good paint will remain on the surface. Scrub ability is tested by a machine that rubs a soapy brush over the paint’s surface. A system also exists to rate settling. An excellent paint can sit for six months with no settling and rate a ten. Poor paint, however, will settle into an immiscible lump of pigment on the bottom of the can and rate a zero. Weathering is tested by exposing the paint to outdoor conditions. Artificial weathering exposes a painted surface to sun, water, extreme temperature, humidity, or sulfuric gases. Fire retardancy is checked by burning the paint and determining its weight loss. If the amount lost is more than 10 percent, the paint is not considered fire-resistant.

By-products /Waste

A recent regulation (California Rule 66) concerning the emission of volatile organic compounds (VOCs) affects the paint industry, especially manufacturers of industrial oil-based paints. It is estimated that all coatings, including stains and varnishes, are responsible for 1.8 percent of the 2.3 million metric tons of VOCs released per year. The new regulation permits each litter of paint to contain no more than 250 grams (8.75 ounces) of solvent. Paint manufacturers can replace the solvents with pigment, fillers, or other solids inherent to the basic paint formula. This method produces thicker paints that are harder to apply, and it is not yet known if such paints are long lasting. Other solutions include using paint powder coatings that use no solvents, applying paint in closed systems from which VOCs can be retrieved, using water as a solvent, or using acrylics that dry under ultraviolet light or heat. A consumer with some unused paint on hand can return it to the point of purchase for proper treatment.

A large paint manufacturer will have an in-house wastewater treatment facility that treats all liquids generated on-site, even storm water run-off. The facility is monitored 24 hours a day, and the Environmental Protection Agency (EPA) does a periodic records and systems check of all paint facilities. The liquid portion of the waste is treated on-site to the standards of the local publicly owned wastewater treatment facility; it can be used to make low-quality paint. Latex sludge can be retrieved and used as fillers in other industrial products. Waste solvents can be recovered and used as fuels for other industries. A clean paint container can be reused or sent to the local landfill.

AGENCIES FOR LEGISLATION AND REGULATORY BODIES IN SOFT DRINK AND BEVERAGE COMPANY IN NIGERIA.

Manufacturing in Nigeria increased 3.40 percent in March of 2018 over the same month in the previous year

This statistics highlights the growing concern and prospects in local manufacturing businesses in Nigeria.  However, in terms of the legal regulatory regime, the regulatory requirements differ according to the industry even though there are some generally applicable regulations.  It is therefore important to point out, as a preliminary point, that inquiry into the specific industry regulations for your chosen production or manufacturing business is always an essential first step. This article, we will however consider the general laws, compliances and procedures while leaving out the specifics for consultation.

General Legislations regulating manufacturing in Nigeria

In establishing a manufacturing out-fit in Nigeria, some of the legislations which would generally apply are:

• Companies and Allied Matters Act
• Companies Regulations 2012
• National Environmental Standards Regulations Enforcement Agency (Establishment) Act;
• Environmental Impact Assessment Act
• National Agency for Food and Drug Administration and Control Act;
• Factories Act;
• Standards Organization of Nigeria Act;
• Nigerian Investment Promotion Commission Act
• Investment and Securities Act
• Companies Income Tax Act
• Value Added Tax Act
• Local Content Act
• Nigeria Export Processing Zones Authority (Act No.63 of 1992)
• Free Trade Zone Regulations; etc.

Companies and Allied Matters Act

The Companies and Allied Matters Act (CAMA) Cap C20 LFN 2004 is the most significant legislation in Nigeria which regulates the incorporation and registration of companies. The Act establishes the Corporate Affairs Commission (CAC) and empowers the body to regulate the incorporation of companies in Nigeria.  The CAC is also empowered by the Act to set regulations for companies and pursuant to these powers the Companies Regulation 2012 was passed.

The CAMA, CAC Act and Companies Regulations are all effective in the incorporation and registration of companies.  It is however noteworthy that for some industries, it may be required that you obtain agency pre-approval or licences before incorporating your manufacturing out-fit as a company.

In summary, to incorporate a manufacturing company with the CAC in Nigeria you are required to:

• Check for availability of your proposed company name and send an application to reserve the name with the CAC.
• Complete a pre-registration form (Form CAC) Pay filing fees to the CAC and Stamp duty fees
• Prepare and submit the incorporation documents which would include Form CAC1.1, the Memorandum and Article of Association (MEMART) of the Company, Recognized form of identification for Director(s)/Subscriber(s) and Secretary, Evidence of payment to CAC.
• Once the incorporation is completed you would be issued a certificate of incorporation which gives your company all the legal benefit and burdens of a corporate entity.

National Environmental Standards Regulations Enforcement Agency (Establishment) Act

The National Environmental Standards Regulations Enforcement Agency (Establishment) Act establishes the National Environmental Standards Regulations Enforcement Agency (NESREA) which is the agency having responsibility for the protection and development of the environment and responsible for the enforcement of environmental standards, regulations, rules, laws, policies and guidelines in Nigeria.

A NESREA issues and regulates the issuance of Environmental permit(s) to enable businesses and industrial facilities whose operations may have potential impact on the environment to be environment-friendly in their operations and to also comply effectively with the relevant environmental standards and regulations. The permits are categorized into the following five (5) main groups.

• Air Quality Permit relating to issues on Atmospheric Emissions, Vehicular Emissions, Open Burning, Refrigeration and Air Conditioning equipment (RAC), and Noise;
• Waste and Toxic Substances Permit relating to issues on Waste Generation, Restricted Chemicals, Sludge Disposal and Effluent Discharge;
• Used Electrical and Electronic Equipment (UEEE) Permit relating handling, import and export of UEEE; and
• Biodiversity Conservation Permit relating to issues on Assess to Genetic Resources.
• Eco-Guard Certification

NESREA also enforces compliance with the Environmental Impact Assessment Act and requires National Evidence of Environmental Impact Statement (EIS) – Environmental Management Plan (EMP); Environmental Audit Report (EAR) and a Monthly Monitoring Report (where applicable) before granting permit for the operation of a manufacturing outfit.

See also How to start a Haulage Business in Nigeria

National Agency for Food and Drug Administration and Control Act

The National Agency for Food and Drug Administration and Control Act Cap N1 LFN 2004, establishes the National Agency for Food and Drug Administration and Control (NAFDAC) which designates, establishes and approves quality specifications in respect of food, drugs, cosmetics, medical devices, bottled water and chemicals, necessary for their certification and issues relevant guidelines and measures for quality control in these industries. Manufacturing in any of these areas require an approval from NAFDAC which is usually only granted after proper inspection of the manufacturing plant by the officials of the Agency.

In summary to obtain a NAFDAC permit requires:

1. Proper preparation and submission of required registration documents and application letter in accordance with the issued guidelines of NAFDAC for such industry.
2. Provision of information and description of the facility for inspection.
3. Provision of samples of the products to be registered when notified by NAFDAC for laboratory analysis.
4. Payments of statutory fees.
5. Ensure all documents are complete and with the appropriate description to prevent unnecessary delays.

Note that: A client is mandated to comply with the NAFDAC Compliance Directive (CD) within 7 days of issuance and failure to do so may be basis for cancellation of the application

Factories Act

The Factories Act Cap F1 LFN 2004, provides for the registration and regulation of factories and other legal requirements for the operation of factories. The law is principally administered by the Federal Ministry of Labour and Employment which issues guidelines for the operations of factories and manufacturing industries in Nigeria.

The Factories Act authorizes the Factories Inspectors Department of the Federal Ministry of Labour and Employment to register all factories located in Nigeria and further provides for basic safety and health measures that must be put in place on the premises. Some of these safety and health measures required are.

• Every factory must be kept in a clean state, and free from effluvia arising from any drain, sanitary convenience or nuisance.
• The factory shall not be overcrowded while work is being carried on, in order to avoid risk or injury to the health of employees.
• Effective and suitable provision shall be made for the circulation of fresh air into each workroom, that is, adequate ventilation must be ensured.
• Maintenance of sufficient and suitable lighting.
• Adequate provision for drainage of wet floors.

In addition to the foregoing, the

National Policy on Occupational Safety and Health also imposes a duty on manufacturers who design, manufacture or import an equipment, article or substance for the use at work to ensure the product is safe for use without health risks when properly used, and to ensure that adequate information is available in connection with the safe operation of machines and use of products.

Standards Organization of Nigeria (SON) Act

The Standards Organization of Nigeria Act, Cap S9 LFN 2004 establishes the Standard Organization of Nigeria (SON) which is empowered to establish a mandatory conformity assessment programme for locally manufactured products in Nigeria. A SON issued Mandatory Conformity Assessment Programme (MANCAP) Certificate must be sought and obtained before distribution of the manufactured products can be had in Nigeria.

Obtaining the MANCAP certification requires:

• Inspection of the production processes.
• Sampling and testing of the products against the relevant Nigerian Industrial Standards (NIS) to confirm compliance through conformity assessment processes.
• Report of inspections and test results are compiled by State Offices and forwarded to the Product Certification Directorate for evaluation and recommendation for SON Management’s approval for certification.
• If the product meets the requirement of the relevant Nigerian Industrial Standard, MANCAP certificate and the MANCAP logo which bears a unique number for that product is issued for the product upon payment of the applicable administrative charges.

Every issued MANCAP certificate is valid for 3 (three) years after which the product must undergo recertification.

Nigerian Investment Promotion Commission Act

The Nigerian Investment Promotion Commission (NIPC) Act No. 16 of 1995, establishes the Nigerian Investment Promotion Commission and with its establishment repealed series of hitherto laws that imposed strict control on foreign investment, established the legal foundation for a very liberal and open investment framework, encouraged inflow of foreign investments in all sectors of the economy including manufacturing, allows foreigners to invest and participate in the operation of any Nigerian enterprise without any restriction, allows 100% foreign ownership of manufacturing agencies (however, in the oil and gas sector, investment stays limited to joint ventures or production-sharing agreements), and guarantees 100% repatriation of profits/dividends to home country in any convertible currency.

The NIPC generally creates certain incentives for manufacturing and industries in Nigeria as a means of encouraging foreign investment in local industries. Some of the legal protection and incentives include under the Act are applicable to manufacturing in Nigeria includes

Tax Incentives for certain manufacture industries, including pioneer industries.

Other Important legislations:

• Investment and Securities Act: This Act establishes the Securities and Exchange Commission (SEC) which is the agency that regulates shares and investment in Nigerian companies. SEC also grants approval for manufacturing companies intending to make sales of its shares open to the members of the public through the Nigerian Stock Exchange.
• Companies Income Tax Act: This Act makes provision for the taxation of company income in Nigeria. Under the Act Companies are required to file their tax returns with the Federal Inland Revenue Service (FIRS). Companies are also required to file personal income taxes as pay as you earn (PAYE) for all their employees. The Act sets the period within which company income taxes are payable.
• Value Added Tax Act: This is also another tax legislation which imposes the Value Added Tax (VAT) which makes provision for taxes on goods and services that are transacted in by the manufacturers. Finished products are usually subject to VAT.
• Other significant regulations: Local Content Act: Nigeria Export Processing Zones Authority (Act No.63 of 1992), Free Trade Zone Regulations; etc.
• Manufacturers Associations: There are various industry specific manufacturing association in Nigeria which seek to protect the collective interests o of members and investors in those sectors. For manufacturing the Manufacturers Association of Nigeria (MAN) is the umbrella body and is a company limited by guarantee whose main objective is promoting the interest of manufacturers in the country. Membership of MAN in voluntary and MAN offers certain benefits to its members such as business linkage, credibility as a manufacturer, access to up-to-date business information etc.

THE FULL ITEMS THAT A GOOD PAINTING MANUFACTURER BUSINESS PLAN MUST BE CONTAINED ARE:   

           Executive Summary

The executive summary is the summary of the entire business plan. It can only be compiled when the business plan is finished. It provides a short overview of the basic contents of the plan. The most important details should be easily comprehensible.

• Founder (team) and business leadership

An important component of the business plan is the introduction of the founder.  It is important to point out why this person should lead the business to success. You should make a distinction between professional qualifications and entrepreneurial ones, meaning between education and job experience, and leadership experience and the ability to work as part of a team.

• Product or Service

The product (or the service) is the heart of any company. Characteristics and stages of development should be listed in the business plan. What makes the product one-of-a-kind, what is its so-called unique selling proposition? The product description should be easily understandable, even for laypersons. The question of what you want to accomplish should be answered. This includes short-term and long-term goals and how you want the product to develop. Should you be producing complex products, the individual stages of production need to be listed Is the product new or unusual, the functionality should be described in detail.

• Market and sector

A competent business founder should have a keen sense of the market and the competition. If you only see as far as your own nose, you will not get far. A market analysis is indispensable. Not only should you be aware of your competitors, you should also know your potential buyer very well. The easiest method of getting to know your potential customers is a survey or the questioning of other businesses of the sector. For almost every sector, there are current analyses. In most cases, you can attain the results from banks or view the corresponding theses at universities. The business plan should show how you expect your business to develop in comparison to other businesses in the sector

• . Distribution and marketing

This is one of the most important points of the business plan. You can therefore divide distribution and marketing into offer strategy, price strategy, distribution strategy, and marketing strategy.

• The product offer is critical and presents an opportunity to set yourself apart from your competitors. The business plan should stress the difference between you and your competition and what makes your product special. Your strategy for further development should not be missing here.
• The chosen price strategy is also important. Did you desire for high or low prices, or even a threshold price strategy? Your business plan should demonstrate how your price strategy secures cost recovery and at the same time sets you apart from your competitors. You should therefore list the prices of your competitors for comparison. The price needs to be competitive, which should be visible in the business plan. You should also elaborate on the composition of your price, how high your profit margin is, and the minimum price of the product. The distribution concept should be visible as an entity. Publicity is needed for making your product known. Which strategy is to be pursued and why is also part of the business plan for paint manufacturing company.

Some products and services can gain a high profile with the help of clever PR strategies. This should not be underestimated.

. Co-workers and business coordination

Your business plan should outline your overall orientation regarding organisation: is there a strict hierarchy or do you prefer project teams? Where lie the responsibilities? The choice of co-workers and the suitable job description needs to follow accordingly. It may be better to employ part-time workers or consult external experts for individual projects. The business plan should also show the planned development of the employee situation. With the growth of the company, the number of employees may also need to be increased. You may, however, plan not to hire employees and rather commission external service providers for individual projects. This is useful in the area of bookkeeping

• . Legal form

A good business plan should also contain explanations about the chosen legal form of the company. Which person or other corporation holds a part of the company? Why is the current legal form the suiting the best? Are there any changes planned when growth is coming? This is part of the business plan.

• Chances and risks

The risks, but also the chances are the most interesting parts of the business plan for investors, loan creditors, and bankers. Risks are naturally a delicate topic. However, if you are honest and mature about them (and they are listed in your business plan), they should not present a problem. Worst-case scenarios and best-case scenarios can be helpful to make your point. The appropriate numbers should be listed as well.

• . Capital requirement

The seed capital has to come from somewhere. No one founds a business without any resources. In most cases, the equity capital is not enough. The business plan should therefore show, which capital goes where and for what it is used. The reserve capital is also of importance. Self-employed people or freelancers have to budget for their personal needs. Current as well as prospective loans should not be forgotten.

• Finance plan

The financial plan is likely the most complex component of the business plan, because it is not easy to show where the money comes from, where it goes, and for what it is used.

• The equity capital is one component of the finance plan. The amount you contribute should be noted in the business plan, as banks appreciate it when personal resources support new-business loans.
• External funds and their amount and distribution are an important part of the finance plan. Often the funding occurs through capital providers, such as investors or banks as loan providers. (Public) subsidies are also external funds. Should you plan to claim such funds you should include it in your business plan.

The so-called liquidity projection demonstrates financial solvency over a planned period. There are benchmarks for every sector, which can help you orientate yourself. Here, you should also mention the break-even point, meaning the point in time when you move from the red into the black. Your business plan should also point out how you intend to get by until then.

• The profitability statement or earnings forecast demonstrates, which proceeds a customer generates with which product (should there be more than one). Of course, these are only estimations but they can be well founded. The profit and loss statement shows how the capital and value is expected to increase. The turnovers are contrasted with the expenses.
• Further documents

You should complete your business plan with other relevant documents, such as a CV, surveys, or drawings.

• The right measure

Many business plans are too extensive, as the authors (the business founders) believe they need to describe every small detail extensively. You should not lose yourself in flowery phrases, but make precise statements. It is helpful to let friends, who are strangers to your line of business, read your business plan. If they can understand everything, the plan is comprehensible. You should be able to recount your business plan by heart and know the numbers in your sleep. This ensures that a presentation, or a visit with the bank or other investors will go smoothly

BUSINESS STRUCTURE;

There are three (3) major types of business method of operation:

• Partnership: this is the type of business whereby two or more persons come together financially to run business, and the profit and losses are equally base on capital contribution formula.
• Sole proprietorship: this types of business is also called one man business that means he or she is solely responsible for the profit and liability of the business. His provide all the resources in day to day activities of what the business requires
• Limited Liability Company: Is a type of business in which the owners are called members, the business entity is separate from the members so only the entity may be held liable if the company is sued or fails to pay its debts. An LLC contains elements of a sole proprietorship, a partnership, and a corporation

ORGANISATIONAL STRUCTURE TERMS

• Hiring process: Hiring processrefers to the process of finding, selecting and hiring new employees into a company.
• HR Process:  refer to the fundamental strategies that HR leaders implement to ensure successful employee lifecycles and work experiences. The HR processes include: Human resource planning. Recruitment. Selection.
• Getting the staffing: to be or provide the people who work for an organization.
• Obtain a tax identification number: Individuals can apply on the JTB website with NIN or BVN (Bank Verification Number) or visit your nearest Federal Inland Revenue Service (FIRS) with Utility Bill, Valid ID (Government Approved) and a Passport Photograph.
• Implementation process: Implementation is the process that turns strategies and plans into actions in order to accomplish strategic objectives and goals.

 MISTAKES TO AVOID IN THE PAINT INDUSTRY

1. No Prep.
2. Not Using Painter’s Tape.
3. Not Cleaning the Walls.
4. Not Buying Enough Paint.
5. Using the Wrong Paintbrush.
6. Ignoring the Weather.
7. Using the Wrong Paint.

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Big Players in the paint market

• Berger Paints.
• Meyer Plc.
• Chemstar Industry Nigeria Limited

BUSINESS NAME OFFER AND DOMIN ARE

Sparking paint ltd

• The sub-sector that paint manufacturers target are:
• Household
• Offices
• Wholesaler
• Retailer

[icon name=”paint-roller” prefix=”fas”]

HOW FUNDS CAN BE RAISED FOR A BUSINESS ARE AS FOLLOWS.

• Personal funds
• Personal equities
• Cash gift from family and friends
• Loan from bank or individual etc.

 If you require a business plan, you can reach us on 08023200801, 0807576577 or complete our form below.