How to Start a Textile/Apparel Manufacturing Business in Nigeria
In Nigeria, Textile/Apparel manufacturing business is a big industry. And this is based on the conversion of fibre into yarn and then, yarn into fabric.
Basically, before starting any kind of business in Nigeria, you need to plan your project very well. Firstly, you need to determine the type of textile/apparel you have to manufacture. And, in doing this, you need to carry out some sort of market research. Furthermore, this market research will help you in the selection of the market segment that will be your target. It is through all this process that you are going to select some of your potential buyers and determine their reliability in the textile/apparel market.
When coming newly into the textile manufacturing industry, you need to learn basic things about textile/Apparel manufacturing. You need to acquire knowledge about the textile industry. You can do this, by gathering information related to other textile manufacturing company, the machines they used for their production, the raw materials required and every other process flow.
The textile and apparel manufacturing industries are among the most labor-intensive manufacturing industries, and therefore an accumulative amount of textile products is produced by foreign suppliers.
Nevertheless, some textile manufacturing still takes place in Nigeria. In order to remain competitive, domestic manufacturers rely on being extremely labor-efficient. Advanced machinery is boosting productivity levels in textiles and fundamentally changing the nature of work for employees. New technology also has led to increasingly technical training for workers throughout the industry. Computers and computer-controlled equipment aid in many functions, such as design, patternmaking, and cutting. Other emerging technologies which improve plant efficiency include wider looms, computerized equipment, and increased use of robotics to move material within the plant.
Moreover, one benefit the local industry has is its nearness to the market and its ability to react to changes in fashion more quickly than its foreign competitors. Also, as retailers consolidate and become more cost conscious, they require more apparel manufacturers to move toward just-in-time delivery systems, in which purchased apparel items are quickly replaced by new items directly from the manufacturer, rather than from a large inventory kept by the retailer.
Finally, you need to know that, Textile/Apparel manufacturing business can be run on a small scale level and as well at a large scale level.
Registration and Licensing of the Business
There is no way we will talk about starting a business that we won’t mention registration and licensing. Therefore, you must register your business with the appropriate authority. Basically, you need to register the name of your company with Corporate Affairs Commission (CAC) first. Then, you can now register under other authorities that is related to Textile/Apparel Manufacturing industry. Also, apart from registering with CAC, you will also need to register with Association of Finished Textile dealers in Nigeria (Textile Manufacturers Association in Nigeria). In order to make the registration of your business faster, you can contact an expert in business registration.
However, in ascertaining the standard of your textile/apparel products; a body called Standard Organization of Nigeria (SON), will access your products and ensure that your locally manufactured Textile/Apparel Products have the required level of satisfaction, which is desired by consumers. SON is bestowed with the responsibility of standardizing and regulating the quality of all products in Nigeria and Textile/Apparel products is not an exemption. After they have certified your products, a certificate will be issued to you.
Moreover, SON is also a member of the International Organization for Standardization (ISO). This body is a global organization which works in providing standardization across an array of products and companies. Meanwhile, the body’s major goal is to enable trade while focusing on process improvement, quality and safety in many areas, which textile/apparel manufacturing business is not an exemption.
Finally, another body that you need to register with and join is Chamber of commerce. Registering with this body will let you have access to some discounts on some of your business needs. Through chamber of commerce you can be able to compare costs, market and network your textile products with other local manufacturers like you. The role of chamber of commerce is to uphold interest in local business possibilities. The body will give your business the opportunity to meet and relate with other local business owners and network. Registering and join the body, will present your business in a positive light to the community. For your company registration visit www.bullscapitalltd.com
Processes involved in Textile/Apparel Manufacturing
In manufacturing a Textile; fibre will be converted to yarn, and yarn will now be converted to Fabric. These fabric will now be dyed or printed and now fabricated into cloths. However, different types of Fibres are used to produce yarn. Meanwhile, there are many variable processes available at the spinning and fabric-forming states alongside the complexities of the finishing and colouration processes to the production of a wide range of products.
However, finding out the good and reliable suppliers for fabrics, trims and other necessary items needed to manufacture your textile/Apparel product is crucial for completion and dispatch of the orders in time.
Furthermore, in running your textile/apparel manufacturing business, you must pay a great attention on Costing, that is, that cost at which you run your business; in relation to purchase of raw materials, Plant and machinery acquisition, Salaries of workers and lot more. You must be wary of the fact that, you must not over spend, while still maintaining a normal standard. So, the issue of costing in textile/apparel manufacturing business cannot be over emphasized.
Although, majorly in setting up your textile/apparel manufacturing business. You have lay emphasis on this eight (8) process;-
- Determining the product
- Determining your budget
- Listing the machinery you want to use for production and their budget
- Listing your prospective customer and making move to start contacting them.
- Making move to sell your product to target market
- Targeting your production based on sales and budget
- Determining the best location for your production
- Employing few staff for a take-off. Although, among those staff, there must one or two experienced staff to help in guides in manufacturing of the textile/apparel.
Needs for Business plan for your Textile/Apparel Manufacturing Business
In starting your Textile/Apparel manufacturing business, you need a good plan which is written down and well-articulated. This written down plan of how to run your business is referred to as Business Plan.
Business plan are prepared in order to make the first few years of your business easier. Everything you need to run the textile/apparel manufacturing business for the first few years will be analyzed inside business plan.
Therefore, the contents in your business plan will appear thus:-
- Executive Summary
- Product and Service Offerings
- Vision Statement
- Mission Statement
- Business Structure
- Role and Responsibilities
- Chief Executive Officer
- Admin and HR Manager
- Marketing and Sales Executive
- Client Service Executive
- Equipment Operator etc
- SWOT Analysis
- Industry and Competitive Analysis
- Market Analysis
- Market Trend
- Target Market
- Competitive Advantage
- Sales and Marketing Strategy
- Sources of Income
- Sales Forecast
- Pricing Strategy
- Payment Options
- Publicity and Advertising Strategy
- Financial Projections and Costing
- Sustainability and Expansion
Develop your Production Plan
Developing your production plan will help you in having a good idea of what quantity you can produced per day. How are you going to design the textile and what type of quality are you expecting from the production. Planning ahead of production ease the stress encounter in doing try and error in production. Once, you have production plan, then you have solve the hardest part of the manufacturing process.
However, there are many product categories in the Textile manufacturing business. You can’t put yourself into the position of manufacturing all type of textile/apparel in the world which will be very hard. You need to choose a couple of textile products to manufacture. You must decide the category of textile/apparel product you want to focus on during this initial stage. The textile/apparel products categories include T-shirts, woven products, Polo and so. .Meanwhile, if you want to select the right products, you must carry out a research (this research can be referred to as production plan). In doing this research, you can take cognizance look at current trends, basic products ranges, hot selling products etc. In this process, you will also inculcate your product design. Product design is carried out at the initial stage of textile/apparel manufacturing business.
Finally, at this stage, you will make a list of textile products you will like to manufacture and focus on the selected product range to commence your dream business.
Production Requirement Estimation on Monthly Basis for your Textile/Apparel Production
After developing your production plan, what next is to plan the volume of textile you will be producing on a daily basis. That is, how many textile/apparel of the selected products will be produce daily?. You can decided to produce the textile on customer demand basis (Sales forecast). Or you can choose a particular volume and you will need to stick to this volume for a while before you start increasing it. However, you need to acquire a number of machines, arrange manpower, set up factory for machine and departments and also set up other equipment.
Furthermore, your decided monthly volume of production will determine the numbers of machine you will acquire. This implies that, you will acquire production machine based on your investment.
Estimation of Manpower, machines and material requirement
In estimating your manpower, machines and material requirement; a detailed project report that will cover all the aforementioned things will be prepared. For instance, Material requirement calculation involves preparing a list of raw materials (fabrics, trims. accessories) and the volume of each material need to be procured. And, Machine requirement preparation involves understanding different types of machines required for making the desired product and product group. Then estimating number sewing machine, non-sewing machines and equipment required for making the monthly target production volume. Finally, Estimate manpower requirement deals with direct labours, administrative staffs, supervisors and departmental heads etc.
However, for you to get this right, you will need guidance from an expert. For expert advise on how to get a detailed project plan. Visit www.bullscapitalltd.com
Studying of your Production Capacity
As a textile/apparel manufacturer, you need to study the capacity of your production. A capacity study has been defined as the evaluation of a textile/apparel industry; the machine, the manufacturing process and operator in order to estimate the maximum rate of production.
However, the various types of capacity available for a factory are:-
- Required Capacity: This capacity is the necessary capacity necessary to manufacture a specific volume of production in a given period of time.
- Potential Capacity: This is the maximum capacity adjusted for expected efficiency
- Available Capacity: This shows the difference between your committed factory capacity and Potential Capacity.
- Committed Capacity: This is the total hours that is formally allocated for production during a certain period of time. That is, a capacity that is been maintained for a long period of
- Maximum Capacity: This is the total number of hours available in a given time under normal conditions.
Funding of the Business
It’s pertinent to know how to fund your business; you need to determine the budget you need to set up your textile/apparel business. Here you are going to prepare the cost of the project, you are going to assess the total capital investment needed, the salary of your staff, the wages of your workers and also the cost of running the business. All the above mentioned, needs fund to get them right.
However, you can run the business with your own money and you can also get loan from the banks and other financial institutions. But, before you can be given loan, you will be asked to present a well-prepared business plan. This business plan will be prepared in such a way that will motivates the bank to want to lend you money. In case you need to service a consulting firm to prepare a well-articulated business plan for you visit – www.bullscapitalltd.com
Apart from the bank, you can as well funds your textile/apparel manufacturing business with loan from Investor. There are some companies or individual, that loves investing on startup business and before they will agree to invest on your business; you will also have to give them a copy of your company business plan to them. After assessing it and seeing that, you actually know what you’re doing. They will fund your business.
As a textile/apparel manufacturer, you will need to make use of different types of marketing strategies to push your products to the market. You can make use of intermediary sellers, you can as well make use of direct business-to-business sales (this will be more significant than general marketing and advertising).
Another marketing strategy is to go for textile/apparel products display, where different manufacturer comes together in a Trade-fair to show-off their products. Via this gathering, you can also market your textile/apparel business to your prospective clients.
In Textile industry, there used to be a high rate of competition between Local manufacturers of Textile products and Importer of Textile products in Nigeria. As a new entrant into the Textile manufacturing business, you must understudy the activities of your competitor in the business. You must know if the imported textile/apparel products has a low quality standard when compared with the locally manufactured textile products or not. In analyzing your competitor’s activities very well, you might likely need to see an expert to carry out the survey for you and gives you recommendation that keeps you ahead of your game.
Building your Brand and Online Presence
In running any type of business, brand is a very important aspect of the business that must be laid emphasis on. Brands deals with making your business known to the people by your Business Logo and different designs. For instance, if you see Dangote products anywhere in the world, you will know its Dangote products. That’s what branding does.
Then, as a company you must have a strong online presence, so that you can be able to relate with your customers from time to time. And, how can you have a strong online presence? You need a working business website and other social media platforms. This business website must encompass various tools that will make it be possible for customers to get across to you and know more about your product.
Place and Location of the Company
For you to be able to manufacture Textile/apparel, you need a factory space. A factory space in which you can set your business. Therefore, you need to find a place for the factory. In securing a good location for your textile business, you need to put into consideration the zone at which you want to locate the business. For instance, you must locate your textile manufacturing factory in an industrial zone, citing your factory in an industrial zone will brings a lot of benefits to your business like:-
- Ability to source for your daily supplies
- Ease in getting workers and operators of stitching machine in industrial zone
- You wont be penalized of polluting the environment. Since your factory is located in an industrial area etc.
Sales and Distribution Strategy
In selling in your textile/Apparels product, you have make use of different sales strategy. First of all, you have to know what is the price of your competitors in the market?. One of the aspect of Business plan that will help you in this situation, is also referred to as Sales Strategy. If your business plan was prepared by a certified consultant. It will indicate different sales strategy in which you can use to sell products as well as Distribution strategy.
Distribution strategy deal with how your textile/Apparel products will be distributed to your various customers. You can make use of middlemen or have a distributor that will be distributing your textiles/Apparels product. However, your business plan will reveal more distribution channel you will use in distributing your textile/Apparel products. For your well-articulated business plan, visit www.bullscapitalltd.com
Meanwhile, you can also have a big store in a strategic location, in which your products will be stored for existing or prospective clients. Your customers can decided to go the store instead of coming your factory. This is in the case of Textile/apparel manufacturing business that is been run in a large scale. Even though, small scale level textile manufacturing business can also have a store too but most times, they tends to supply their customers from the comfort of their small factory.
Finally, you need to know the keys to accomplishment for the textile/apparel manufacturing business. These keys to accomplishment are:-
- Rare and creative products
- Standard and well-versed processing facility
- Access to raw materials
- Good location in a high-density business area
- Reasonable competitive pricing.