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There are many profitable and less-competitive businesses in Nigeria; they just don’t look like they are from the outside, as is the case with the paper production industry. Who would have thought that tissue paper, which is sold for between 50 and 100 Naira per sheet, could generate billions of naira for business owners?

It’s possible that if you’re reading this, you already know that the tissue production industry can be profitable, but you’re unsure of how to get started. You’ve come to the correct place because I’ll show you the steps you need to take to start a business producing tissue paper.

But first, I want you to be aware of the following.

Definition of tissue paper  business

Production of tissue paper involves using soft wood pulp to create soft paper, which is then packaged and shipped to the store or end user.

How profitable is the tissue paper manufacturing industry?

In Nigeria, tissue paper has become a common item that is frequently required. Because of its low cost, businesses, organizations, and individuals frequently purchase supplies.

This demonstrates that tissue paper is in high demand in Nigeria, and there aren’t many competitors in the market, which is supported by the estimated tissue paper demand, which is up to 1 billion units, and production/import, which is at 150 million units.

Chosen market or niche

In contrast to other businesses that only have one or two viable market segments, practically every one of these is profitable and uncompetitive. You can go after a business, a school, girls, an event, a hotel, etc.

Market niche for the production of tissue paper

As was already mentioned, there are many niches in tissue paper production, which helps to reduce competition. If one niche becomes overcrowded, you can move on to a different one and expand from there.

Several of these niches are

Role production

One of the lucrative markets for tissue paper production is the production of toilet rolls. If you choose this market, you won’t have to worry about demand because it will only increase. The only issue is that tissue paper manufacturers are all competing to produce toilet rolls.

Customers who fall under this niche are

School

Office

a public washroom

Hotel

Manufacturing of face wipes and paper towels

This is a lucrative market with little rivalry. Tissue paper is placed in a paper box in this market niche so that people can use it to clean their faces. It serves as a fantastic substitute for hand towels because it doesn’t require washing.

Customers who fall under this niche are

Home/kitchen

School

Event

Meetup

religious assembly

Baby wipe manufacturing

Baby wipes are also available in boxes with opening ends that can be used to cut the wipes to clean toddler hands, buttocks, and occasionally faces. This market is similarly lucrative, but since parents have the most purchasing power, they should be the target of any marketing efforts.

Market segment

Its target market is straightforward and narrow, so you only need to construct a customer persona to thoroughly understand them.

infant or mother

packaging tissue

Although it is a rising market, its profitability is not yet recognized. The rate at which people increasingly need soft tissue for wrapping goods, however, points to the lucrative niche that wrapping tissue manufacture fills. In this market area, there are two company models. You can make wrapping paper tissue and sell it or have it made to a customer’s specifications.

Market segment

Individual

Boutique

a storefront

Manufacture of table linens

After a meal, one cleans one’s mouth and hands with a table napkin. Due to its cost, it is a lucrative sector that has seen market growth. There are many people in this field, therefore you need to have good marketing skills or a system to stand out.

Nigerian paper producing machinery is required

The tools you’ll need to get ready before starting a tissue paper producing business are listed below.

Soft wood pulp and waste paper

cutter for a bandsaw

Core-making apparatus

embossing apparatus

rapid toilet paper dispenser

machine for folding tissue

large roll

perforating apparatus

machine for cutting toilet rolls

Machine for rewinding paper rolls

machine for packaging

Nigerian tissue paper business startup procedures

Knowledge, expertise, and experience.

The ability needed to produce tissue paper is one that can only be acquired by prior experience in a tissue paper mill. You can do an internship in a factory to obtain knowledge and expertise, and if you don’t have the time, you can hire a professional to help you manage your business

Feasibility analysis

Even if the tissue production industry is lucrative, you must still carry out a feasibility assessment in the area where you intend to locate your business.

Is there car access to the location?

How is the competition there?

What about labor?

How simple is it to procure raw materials?

You don’t want to put your money in the wrong place, so be sure to address the aforementioned question as well as any others that may arise during the research.

Location

Choosing a site that fits the type or market niche of tissue paper manufacture you wish to enter depends on your feasibility research.

Business strategy

While a business plan might only last for two years, it is still advisable to write one because you never know when you might run into an investor or need a loan to expand your business. A business plan is a projection of what your business will look like in three to five years and how you plan to get there.

Become a member of the Consumer Affairs Commission (CAC)

You must register your business with CAC in order to operate a legitimate business. You must register your business to avoid future conflicts with the authorities. Additionally, there are some government benefits to which you might not be entitled.

Funds required to launch

You will need at least 8 million naires to begin medium-scale production. You can borrow money from a bank, use your savings, or get a loan from friends and family. Please keep in mind that there is little possibility of success with crowdsourcing or angel investing.

equipment and supplies

The majority of the raw materials required are already described above and can be shipped from overseas or purchased in Nigeria; however, doing so has a higher risk of financial loss than shipping raw materials from abroad.

Employee

Although you will need to hire employees, you can accomplish everything on your own. Make sure to hire employees that have a love for making tissue paper while hiring. Depending on the size of your production, you’ll require 5 to 20.

Marketing

The two terms are frequently confused, although they are distinct since advertising is a component of marketing. The four pillars of marketing are people, place, promotion (advertising), and product, therefore choosing a niche, location, target market, advertising medium, and developing a superior product are the first steps in your marketing strategy.

If you have completed your feasibility study, you should now be aware of the demographics of your target market, including their location and daily routines. This information will aid you in choosing an advertising medium that will appeal to them.

Several forms of advertising include

TV and radio

Billboard

posters and a sign

vehicle branding

Distribution and packaging

Marketing includes packaging; to reach your target customer, you must package your tissue paper in accordance with the requirements of the market group you are targeting and establish a strong distribution network.

Nigerian tissue paper production issues

Without challenges, there is no business. People dislike changes, so they won’t enter such businesses, reducing competition for the serious entrepreneur. Therefore, the more changes there are in a business, the higher the likelihood that it will be profitable.

The difficulties that you might face are listed below.

Epileptic energy source.

This is not breaking news; Nigeria lacks a reliable electrical supply.

Solution: You can rely on power for now, but you should be aware that you’ll eventually require a generator.

Poorly made products

A locally created machine could result in inferior tissue paper if you purchase it.

Purchase a better machine as a solution.

Fund

In Nigeria, it is challenging to obtain loan from a financial institution.

Solution

Begin small, then expand from there

Conclusion

Manufacture of tissue paper is a successful industry. The instructions above should be followed to ensure little difficulty.