How to open a chemical toilets business

* The calculations use the average data for the World

Chemical toilets are often mistakenly called “dry closets.” This name has taken root among the population, and today plastic booths, which are located in parks, which are installed for the period of any mass events that can be seen in recreational recreation areas, especially on the beach, are called dry closets. At the same time, the principle of operation of biological (or, rather, ecological) and chemical toilets is completely different, moreover, they are diametrically opposite. Because in the second case, it is supposed to neutralize the waste through chemical decomposition, which can be harmful to the environment. However, today there are methods and chemicals that allow the safe operation of such equipment. In fact, chemical toilets do not become, but are also not dangerous for the environment.

In a big city, chemical toilets are always in demand: some entrepreneurs earn by having them in recreation areas; enterprises order them on their corporate parties in nature; construction and repair crews install them at the facilities. In general, where there is no fully equipped area for natural needs, mobile, light and really easy-to-use chemical toilets are essential. There is a demand for such products, but we must not forget that gradually the booths fail and require replacement. Given their relatively low price, they are more often replaced with new ones than components are being replaced by them. Manufacturers claim the cab life is up to several tens of years, but at the same time they give a guarantee only for 2 years, which symbolizes that the declared characteristics are clearly overestimated for advertising purposes.

Of course, the correct selection of fluids and operation really significantly extend the life of the cab, but in practice, no one does it. In general, the toilet lasts about 5 years, after which it changes to a new one. A feature is that they are rarely purchased second-hand.

In this regard, you can count on constant demand from all new customers. If you are not limited to the framework of one city or region, then you can establish virtually non-stop production of cabins and related materials, and engage in full-scale production. This type of business can no longer be called new, and there are already players on the market offering chemical toilet production services, but in some regions their activity is not established, and the consumer is forced to overpay due to high transportation costs. Yes, and in the case of a competitor already working, you can conquer a part of the market by offering more favorable conditions for customers. The niche, of course, is not free, but there is no need to wait for too fierce competition.

To get started, you should register as a business entity. Usually, several people participate in the organization of production, who become the founders of a new enterprise. But you can register as an individual entrepreneur. To do this, contact the local tax authority conducting the registration. It is preferable to either choose an individual entrepreneur or LLC (limited liability company, legal entity), because in this case it will be possible to use a simplified tax system. It allows you to make in favor of the state deductions of 6% of revenues, or 15% of operating profit. In order to have legal production, it is worth choosing the right encoding of economic activity during registration. According to the new classifier, such activities fall under the category (OKPD 2) 22.23 Plastic building products.

For own production, one should look for medium-sized (relative to manufacturing enterprises in general) premises - about 100 m2. At the first stages, you will not have to purchase a large number of machines for manufacturing products, but you will need a large warehouse for storing finished products. The premises can also be rented, but it is better to redeem if it is planned to work continuously with an unlimited term. If the funds are not enough, then in order to save money, you can find a building on the outskirts of the city or even generally outside it, but not in a great distance. The cost of renting and buying land is difficult to calculate, since it varies greatly depending on the city, location in it, and if it comes to rural areas, then the proximity of large settlements affects the price. But the farther away from the city the main sales are, the higher the transportation costs, and therefore entrepreneurs tend to find the outskirts - both cheaply and not far. The enterprise must contain an administrative building, a production workshop and warehouses of finished products and raw materials.

For the manufacture of booths and all components of a chemical toilet, vacuum-forming equipment, or thermoforming, is used. It uses the principle of exposure to vacuum or low pressure at high temperatures on plastic materials, which at the same time acquire the desired shape. Thus, a large number of things are created, but in this case, not universal, but special large units will be required.

The booths are not created immediately ready, for a start they melt the finished base, after which they create filling containers, roofs and smaller parts. Such production does not require a certain strength or complex processing; the equipment supplied has several forms for creating all the necessary products, which, upon completion of the molding, simply assemble into a finished booth. At the same time, the machines themselves, although they have the ability to replace molds, and several components are produced on the same equipment, should nevertheless be purchased directly for the production of chemical toilets.

The most important thing here is the size of the equipment. Since the cabin panels are solid, their production requires a machine that can create such a production at a time. The average cabin size is 1.1x1.1x2.3 meters. At present, one can familiarize oneself with the proposals for molding equipment that manufactures a one-piece booth, for which it remains only to make the roof and door separately, that is, the whole booth does not have to be assembled from separate panels. But in addition to this, a small machine is also purchased on which smaller parts are produced. Modern systems even allow you to fully automate the process, that is, set the machine the sequence of operations, which greatly reduces the simple equipment and the time for its readjustment.

In addition to the cabin itself, several separate elements are made. The most important of them are filling and top tanks. The first comes sewage washed off with water from the second. However, there are products that do not involve flushing at all (and work on the principle of the so-called "village toilet"). To allow the user to flush, a manual or electric pump is mounted, and this product may need to be ordered separately. The seat itself is also made directly, which often, in turn, is also an integral part, and the sink, which has a simple device and water supply from the upper tank. Creating a sink is basic hygiene, although in some booths the manufacturer does not provide water supply, and the user washes his hands with a separate container. For convenience, sometimes hooks for clothes are also installed on the walls.

Depending on the expected volume of production, a certain amount of equipment is purchased. One machine is able to produce 50 copies of parts for a chemical toilet per shift. That is, two machines will make it possible to get 50 ready booths in 8 hours. The cost of a large machine is approximately 500 thousand rubles, while a small one is almost two times cheaper. In order to save costs and avoid downtime, you can consider manufacturing options on a small machine for any additional products that can also be sold. Some companies produce not only the chemical toilets themselves, but also other plastic products, including septic tanks, small compact toilets and even road fences. This is due to the fact that for all this list of products the same raw material is used - polyethylene. The cost of raw materials is about 70 thousand rubles per ton.

In order to buy equipment, you first need to contact the manufacturer of the machines. The manufacturer, together with the entrepreneur, determine the necessary dimensions of the machine and the features of the form, depending on the desired final product. However, the plant also has typical machines and forms, so you can buy ready-made and not requiring any refinement or testing. The manufacturer for the customer also trains the staff of the latter to use the equipment after delivery.

However, before starting work, you should also contact the Committee for Supervision of Consumer Rights Protection and Human Well-Being to obtain a sanitary and epidemiological conclusion. Of course, the cabin itself does not pose a threat to the environment during its operation, but such a threat may arise when neutralizing waste. The chemical toilet is called so because for decomposition they decompose under the influence of special fluids that are in the storage tank. They eliminate unpleasant odors and prevent the flow of organic processes, gradually decomposing waste to sludge and water.

The toilets themselves are also subject to cleaning and ongoing maintenance, but this becomes not the concern of the manufacturer. The main thing for him is to prove that the material used, when exposed to chemically active substances, does not form hazardous compounds and does not decompose. Since many consumers require the supplier of cabs immediately and recommendations on the filler (and some need a supply of chemical filler), you can immediately give the substance and products themselves for examination. Within 60 days, the committee will decide whether the production is environmentally friendly and issue an appropriate opinion.

For work, you should only hire personnel who will be directly involved in production activities, all other duties should be performed by outsourcers. That is, with a small production, you can limit yourself to a staff of 10-15 people, including the entrepreneur himself, who acts as the director, car drivers for the import of raw materials and export of products, the chiefs and the machine operators themselves, as well as auxiliary personnel.

Most likely, you will have to work with clients according to the widespread ex-works scheme (because in this country they only accept it and FOB), and therefore the customer will independently take out the finished products from the warehouse. But for the same reasons, you will have to travel independently for raw materials. However, everything here already depends on the agreements and which partners can be found. If we accept that the average salary will be 20 thousand rubles, and the cost of outsourcing and protection will start at 10 thousand rubles, then monthly expenses will amount to 210-260 thousand rubles. This also includes the cost of electricity (within 20 thousand rubles with one shift). Other monthly expenses may include rental premises and advertising.

To sell their products, you need to post information about their production on all relevant portals, where entrepreneurs are looking for a particular product for entrepreneurship. Private individuals rarely buy chemical toilets for their private homes and summer cottages, but this is quite possible, so ordinary people will occupy, albeit a small, but a certain percentage of all customers. The most profitable buyers are the entrepreneurs themselves, who rent dry closets for rent or install them in recreational areas. All other enterprises, as a rule, already cooperate with an intermediary, because even a construction company does not need a toilet in the property, because it makes no sense to transport it from an object to an object. It is cheaper to rent it as needed. At the same time, the manufacturer himself can engage in such a business, placing ads not only about the sale of cabins, but also about their rental. This can be a good additional income, especially if intermediaries overly overpriced.

The cost of a cabin on the market for the end user varies depending on equipment and size. It starts from 15 thousand rubles, although the manufacturer himself sells one finished booth for 10 thousand rubles. Leasing is much more profitable - it starts from 3 thousand rubles a month, but in this case you will have to carry out scheduled maintenance, which involves replacing the chemical fluid and pumping waste. Therefore, an entrepreneur who decides to rent cabins for rent must take care of hiring his own team of workers or an agreement with a company that is ready to provide such services. You can, however, provide cabins without maintenance, but in this case you will have to reduce the cost of the lease itself. But in any case, as soon as production is gaining momentum due to increasing demand, the entrepreneur gets rid of the need to spend extra money, and in his case the most correct decision is to concentrate completely on the manufacture of the cabins themselves, and not on their rental. But for a start-up enterprise, this can even become the basis for survival, while chemical toilets are not sold in large quantities.

The most difficult thing in this business is to find a really large number of consumers, because the target audience is not always interested in the products of a new manufacturer. However, the right advertising and good quality products can significantly increase the competitiveness of the enterprise. Many manufacturers today use the cheapest raw materials that do not meet either sanitary, environmental or hygiene standards, and therefore, more and more often the direct user tries to avoid visiting such booths. In this regard, it is better to spend money on higher quality polyethylene, which will make it possible to produce such a product that will be truly environmentally friendly. Without receiving the sanitary certificate with a positive decision, it is better not to enter the market at all.

Matthias Laudanum (c) www.clogicsecure.com - A portal to small business business plans and guides

08/18/2019


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