No matter how common or ordinary the nail making business sounds to you at the beginning, you will be amazed by the success it would bring. Well, one cannot assure success until you put in the strategic effort.
Nail Making Business Project Report
Nails have become one of the essential products of everyday life. It would be true to say that nails are used in every industry, every family, and every factory. There has been a rapid growth in the construction industry that caused the nail making business to grow.
Even if you want to gain some experience with business plan, nail manufacturing business is one of the best options you have got. There is an immense number of young businessmen who start with some low-level business and then move to the higher-level business after getting enough experience. You can even grow your low-level business into a well-known industry.
Investment opportunity for making wire nails in Africa
Talking specifically about African industrial growth, it would be true to say that the manufacturing industry is what makes the overall economy stable. Usually, manufacturing companies require a large number of workers, which creates a way of income for the lower class. However, there has been limited growth in the manufacturing industry in Africa which makes it not so economically stable country.
According to Irene Yuan, an African consultant and author, Africa would become the world’s largest manufacturing center and that is because of the population that Africa has. All these factors make Africa the most suitable continent for establishing manufacturing companies. The African government is working to seek new ideas that could attract investors and industries. If it is given proper attention by the government and businessmen in this regard, the wire nail making business can play a key role.
Africa has been thriving to stabilize its industrial sector. Manufacturing in Africa has a growth rate of 3.5% annually, from 2008 to 2021. The very reason that the African government wants to build its economy has paved the way for you to launch your business. That is because the government is willing to invest in public services.
Why Wire Nail Making Business?
The reason we are emphasizing the wire nail making business is that it comes with many benefits. It is a cheaper business to begin with, You will only have to invest money in buying a nail making machine, a wire drawing machine, a nail polishing drum, to rent a space of 100-200 m2 to keep the machines, and a few workers. Initially, you get to sell your product to the hardware stores in your city, within the places near to your reach and after some time you can set up an online shop and sell nails online.
Wire nail making is a straightforward process, the nail production process is not that complex like for making roofing nails, screw nails which needs galvanization, heat treatment etc. There is no secret or personal strategy involved in the wire nail production. All you need to make sure is that you are producing nails of excellent quality. The part that requires strategic input is the selling part. In that case, you can consult some business marketing company.
Success in this business is guaranteed only if you put in the right amount of effort and strategy to make and then market your product. This business turned out to be a success for most businessmen like Patrick Kamau in Kenya, an entrepreneur from Africa. He started his business with 3 sets nail making machines and is now making a good profit from his business.
Wire Nail Making Plant Requirements
If you wish to establish the wire nail making plant at a smaller level you would not require any workers, land, or building, and you can even purchase a second-hand wire nail making machine. However, if you wish to establish a wire nail making business at the larger level you would require the following.
The electricity power is about 8 KW – 30 KW depends on the machine quantity you have. Make sure that you have spared generators to run if the power goes out.
Workshop or land of about 100 m2 – 200 m2 to build a wire nail making plant.
You would require at least 3-4 workers and a marketing executive to take care of your company’s marketing.
Many of our customers in Ethiopia, Kenya, Nigeria, Zimbabwe, Tanzania etc asked: Is nail making business profitable? The Answers is definitely Yes!
The following data will show you the detailed cost and profit of the nail making business.
Setting Up Cost and the profit of the Wire Nail Making Business
Let’s shed some light on the overall expenditure that the medium capacity 1-6 inch wire nail making plant could cost you in Africa.
- Machinery and Plants, Expected Cost: USD 30000
- Water and Electricity installation:USD 500
- Company Licensing: USD 300
- Raw Material 10 tons steel wire: USD 6000
- Advertising and Promotion: USD 500
- Land & building Rent Per Year (200-300 sq.mtr): USD 5000
- Working capital for 2 months: USD 5000
- Workers Salary (3-4 workers) per month: USD 1000
- Total capital investment: USD 47300
The estimated profit that you can draw from nail per ton is around USD 100 and capacity of above plant is around 3 tons, so it will take around 6 months to get the investment back.
That is the rough estimate of the expenses which come under the nail making business. The actual cost can vary according to the nail capacities per year and current market rates and government policies. Since we are mainly talking about Africa, the government would try its best to assist you in establishing a business. You can take a bank loan to begin your business and return the loan in installment. That works the best.
Uniwin Machinery is one of the famous companies that offers machinery and services with regard to the nail making business. It has helped about customers more than 50 countries including Saudi Arabia, UAE, Ethiopia, Kenya, Nigeria, Zimbabwe, Tanzania, South Africa , Ghana,USA, Mexico etc in establishing the nail production business. Uniwin Machinery are always ready and glad to offer free consultant service for the nail making business plan, operation and training of the nail making machines.
Uniwin Machinery, The Nail Making Machine Expert in China.
Wrapping Up of the nail making machine business report
With the above nail making project report, you would have realized the input you will be required to put and the output you can have when talking about the wire nail making business.
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