Anti-Freeze Liquid Production Business Plan
Non-freezing is necessary for the normal functioning of the engine cooling system of cars. Their number is growing. Together with them, the demand for antifreeze is increasing. The total volume of the coolant market in Russia exceeds 230 million liters per year. This is equivalent to RUB 30 billion. Compared to the previous year, it grew by 5%.
The market is not crowded. Companies are only able to produce about 180 million liters per year. The remaining volume is compensated by imports. Buyers do not mind buying Russian products. Using it, they don’t overpay for shipping. Therefore, you can make good money by organizing anti-freeze production as a business.
A huge number of companies are represented on the market of anti-freeze and antifreeze products. Customers can choose a product from one of 200 brands. Therefore, business is considered highly competitive. However, you can occupy your niche. Customers in most cases make a choice without considering the brand. The ratio of price and quality is taken into account, as well as the type of liquid. It is selected taking into account the class of the car and the characteristics of the cooling system.
The antifreeze market is considered one of the most stable. Even if car sales are declining, profits are offset by the cars sold.
The predominant role is played by products of the middle price segment. It is purchased for domestic cars and used foreign cars. Inexpensive non-freezers are bought for old Russian cars. There are quite a few of them.
The quality of the fluids depends on the additive package. The high-end product is recommended for luxury cars, as well as for the initial filling of vehicles.
Having decided to open an anti-freeze production facility, register a company. Usually it is enough to create an IP. However, if you work with liquids that contain ethyl alcohol, create an LLC.
Only legal entities will receive permission to conduct activities using ethyl alcohol.
In other cases, paperwork is not required.
When applying for business registration, select OKVED codes. They should reflect the specifics of the upcoming activity. The following codes will work:
Select a tax regime. The simplified tax system is suitable at a rate of 15%. Anti-freeze production as a business involves significant costs for the purchase of raw materials. If you organize a large company, there will be costs of paying for the services of employees. Amounts can be accounted for as expenses and tax reduced.
You must obtain a certificate of state registration of goods. Additionally, you need permission from the following authorities:
- fire department;
- environmental control.
Mandatory certification is required if the concentration of ethyl alcohol in the product exceeds 1.5%.
To get permission, pay the state fee. She’s big. The amount is 800,000 rubles. The document is valid for 5 years. Therefore, it is advisable to use ethyl alcohol in the production of antifreeze if you open a large company.
To confirm product quality and increase customer loyalty, issue a voluntary certificate of conformity. It is not necessary to receive the document. However, it increases the competitiveness of the product.
Selection of premises
To bring a business idea to life, you need a room. Its size depends on the planned scale of the business. If you are starting a small anti-freeze company, you need a building with an area of 40-50 square meters. To install a low-power production line, you need no more than 10 square meters.
However, additional storage space is required:
- raw materials;
- containers for liquid filling;
- goods for sale.
Divide the room into at least two zones. Take one directly for production, and use the second as a warehouse.
At the first stage, it is impractical to buy premises. This will entail large one-time costs. It is better to arrange a lease and use free funds for business development.
Prepare the object for the work ahead. Rent a room equipped with communications. Requires electricity, sewerage and running water. If it is not supplied, think about the well construction.
Ensure the supply and exhaust ventilation is working. It must be in good working order. Otherwise, there is a risk of poisoning with vapors of poisonous liquids. Make sure the ventilation works well in the production hall.
The ingredients used in the production of anti-freeze products are highly flammable. The risk of fire increases. To provide property and people with safety, install fire alarms and primary fire extinguishing equipment. Use only fire-resistant materials in the decoration.
Place the object in the manufacturing area. Here the rental price is lower and there is no risk of conflicts with residents of nearby houses.
Good access roads are needed. It will be better if they have a hard surface. This way you reduce the risk of problems in the delivery of raw materials or transportation of finished products.
When starting anti-freeze production as a business, purchase equipment. Its list depends on the production scheme. It’s simple. Employees perform the following procedures:
- They purify the water and add alcohol to it.
- The resulting product is processed, brought to the desired consistency.
- The finished liquid is poured into containers. They are labeled.
- Finished products are packed and stored until they are sold to the buyer. Cooperation is conducted with wholesale customers. However, you can open your own store and retail the anti-freeze.
The production technology does not change depending on the composition of the product. It affects the list of required equipment. It is better to purchase a ready-made complex (line). It needs three people to service it. The complex consists of:
- pressure tank;
- laminar pumps;
- Heating elements.
The equipment is served by 3 people. For the system to work well, follow the raw material requirements. Use only purified water. The equipment itself does not filter the liquid. Additional installations are required to clean it. Still needed:
- equipment for distribution of liquid in containers and their sealing;
- labeling machine;
- liquid purification system;
- equipment for office and staff rest.
The use of ready-made production lines automates the process, increases the volume of products. However, if the unit cannot be purchased due to resource constraints, you can purchase the equipment separately. In this case, some of the procedures will have to be performed independently.
Include the costs of the initial purchase and replenishment of raw materials in the business plan for the production of anti-freeze fluid. It is inexpensive. For the manufacture of anti-freeze use:
- isopropyl alcohol;
- fragrances and dyes;
- ethylene glycol;
The list is not exhaustive. Recipe change is acceptable. You can add new ingredients to the list or remove existing ingredients. However, remember that each of the substances affects the final product quality.
Isopropyl alcohol is often replaced with methyl alcohol. It’s cheaper. As a result, the manufacturer saves money.
However, methyl alcohol is poisonous and gives off vapors. If a person inhales them, there is a risk of poisoning.
After purchasing a product, end consumers will no longer buy it. Additionally, the anti-freeze will not pass inspection by the regulatory authorities. It will be discontinued immediately.
Consider the concentration of alcohol in the finished product. If the figure is less than 9%, you do not need to pay the excise tax.
Secondary raw materials will be required. This category includes packaging for finished products and branded labels. Organize a constant supply of products, otherwise production will be idle due to the inability to distribute the finished product. A similar rule applies to basic raw materials. Enter into long-term contracts with suppliers. This will ensure a stable supply.
Hire a designer to design the labels. A well-designed image helps to attract attention.
To get the anti-freeze liquid business up and running, hire staff.
You will need:
- Sales Manager. The specialist is looking for wholesale buyers, concluding contracts. The person then checks that the money is deposited on time. In order not to organize an office, hire a specialist remotely. If you have the appropriate education, at first you can independently perform the duties of a sales manager.
- Service staff. The task of specialists is to monitor the operation of the equipment, to prevent its breakdown and downtime. They mix the components, control compliance with the production technology, and pour the goods into finished containers.
- Ancillary workers. All auxiliary work is performed. The personnel are responsible for transporting the finished product to the warehouse, delivering the ingredients to the production site, loading the car, which will deliver the goods to the client.
- Driver. He is hired if a truck is purchased to deliver products to customers. The specialist receives the goods from the warehouse and then delivers them to the customers. In addition to anti-freeze protection, the driver hands over the accompanying documentation.
- Accountant. She is engaged in the preparation of reports and submission of documents to the authorized bodies. It is not necessary to hire a specialist on the staff. It is possible for him to pay attention to the company several times a week. To save money, hire a part-time accountant or start working with an outsourcing firm.
- Cleaning woman. It is engaged in cleaning the premises from pollution. It is also not necessary to hire an employee on the staff. Just sign a contract with a cleaning organization.
- Administrator. Organizes the workflow, works with suppliers of raw materials and clients. Its function in the early stages can be performed by the entrepreneur himself.
If you are organizing a small-scale production, the work is carried out in one shift. The length of a standard month is 22 days. Employees are entitled to 8 days off, excluding holidays. Create a staffing table and include it in your business plan.
Sales of finished products
Having decided to open an anti-freeze production facility, start manufacturing the demanded types of products.
Medium quality antifreeze is in demand. They sell it at a low price.
Start looking for clients. Interested in buying non-freeze:
- taxi services;
- gas stations selling related products;
- hypermarkets selling auto goods;
- auto shops and car markets ;
- car services and service stations ;
- transport companies.
If you have already started production, and there are no wholesale customers yet, you can cooperate with retail customers. In order not to open your store, sell products on the side of busy highways. This is the most accessible way for beginners. Retail outlets on Moscow highways bring up to 10,000 rubles per day. However, a large distribution network will be required. Gradually move to wholesale.
You can sell products through vending machines. The device automates the sale. It is placed at gas stations, parking lots of entertainment and shopping centers. These places are visited by motorists most often.
Promote your business online. Be sure to create a website and a social media group. Then start promoting them. Submit product articles, post colorful images. Don’t waste your resource. Update it. Contextual advertising will help to promote the site. She will attract potential clients.
Consider the issue of delivery. If you have money, buy cars and hire couriers. To save money, start working with a shipping company.
How much is needed to start
Starting a medium-sized business requires 1.5-2 million rubles. Most of the funds will be used to purchase equipment. The amount of expenses will be 1 million rubles. Additionally, money is needed for the repair of the premises, the installation of production lines, the initial purchase of raw materials.
There are monthly expenses. Their size is 300,000 rubles. The amount includes the costs of staff salaries, replenishment of raw materials, services of outsourcing companies, utility bills.
In addition, provide funds for advertising. Entrust the promotion of your business to a marketing agency.
When starting an anti-freeze liquid business, keep the risks in mind. They are as follows:
- Decreased demand for manufactured products. Follow market trends and respond promptly to adjustments. Adapt to customer requirements.
- The supplier did not provide the raw materials on time, and the production stopped. In order not to face difficulties, cooperate with contractors on the basis of an agreement. In the agreement, fix the sanctions for violation of delivery dates. If you have documentary evidence of the fact of the transaction, you can claim the lost profit through the court.
- The norms of legislation governing the scope of activity have changed. It is impossible to reduce the risk. He does not depend on you. Stay tuned for changes in regulations to be ready for adjustments.
- Substandard raw materials were purchased. To reduce the risk, a certificate of origin of products is required, study a potential supplier, reviews of previous customers.
By taking action ahead of time to mitigate risk, you increase the chance that the business will pay off and be profitable.