Each home needs scouring powder to maintain a certain level of cleanliness. This means if you start this business, you have high chances of enjoying a ready market in addition to making some good money.
Scouring cleaning powder is a household cleaning agent which can be used in various ways for cleaning hard surfaces such as stove tops, counters, pots, porcelain, fiberglass and tiles.
The cleaning powder, manufactured in different qualities and grades, is mainly used for cleaning stainless steel utensils, glassware, ceramic ware and flooring.
In addition to households, the bulk of its users are corporate companies including banks with several branches, hotels, hospitals, canteens, commercial organisations and homes.
So what does it take to start? Experts say this business can be done at the confines of your home if you are doing it on a small scale.
This will save you spending on rent. Ideally, the startup capital for a small-scale cottage at home would require someone to have as low as Shs100,000 to buy the ingredients.
The startup capital for scouring powder is very low because you can make as much as Shs100,000 in profit per production.
According to Uganda Investment Authority (UIA), this business idea aims at production of 15,600 kilogrammes of cleaning powder annually. This applies to those with the resources like Ugandans living in the diaspora
With this kind of investment, you need capital investment worth $9,250 (Shs33.3 million) to start.
At the end of the year the revenue potential estimated is about $255,840 (Shs921 million) with a net profit margin of 19 per cent and a payback period of four months.
All equipment can be obtained in Uganda to produce scouring powder and these include calcium carbonate, sodium Laurie sulphate (Powder), caustic soda, soda ash and perfume.
Soda ash and acid slurry are mixed in required proportion and left for an hour. Subsequently, this is mixed with calcite powder, fragrance and grounded to fine powder before being packed for marketing.
Before you settle on investing in this business, you should identify your market.
“You wouldn’t want to waste time, energy and money to start a business that no one is in need of, would you?” Mr Newton Buteraba, the chief executive officer at House of Wealth, a local firm that offers Business Advisory services and motivational notes.
Since scouring powder is a household product that is needed almost every day, then the demand for it is high. Hotels, homes, eateries and even offices are in need of this product.
For you to start this business well, you need to get a few things right. Developing a list of cleaning companies to supply your products is a good way to start.
Corporate companies with several branches/outlets such as banks are now hiring cleaning companies to do the job. This has seen the emerging of cleaning companies in the country who are also part of the target market for the cleaning powder.
“Don’t think about exclusively depending on supermarkets as your market. You will be competing with the already existing brands,” Mr Buteraba shared.
Since they are already existing brands starting this business, you need to hire an industrial chemist who will identify what makes the existing brands sell so that you produce a better product. Make sure your product is relatively low cost. This will give you leverage in the market.
CREDIT: MONITOR PUBLICATIONS