Introduction
This business idea is for establishment of a Camp Site. This is setting up a site with facilities where Travelers and, or Tourists can camp and stay overnight or for some days. This involves acquiring land of more than an acre and secures it. Avail facilities like lavatories or washrooms, tents, laundry faculties, kitchen, a canteen or bar. There could be some dormitory facilities with some bedding provided. There must be mattresses and blankets for use when you hire the tents. A business center could be established or at least an Internet connection with a computer and possibly photo copying and Fax facilities. There could be some reliable transport that could be hired if need arise. The travelers or tourists come and stay and use the facilities while enroute to their next destination. All facilities are paid for at modest fees and thus the guest chooses what to use depending on his financial ability.
Requirements
The Campsite is registered as the law prescribes and the facilities put in place. These include:
Capital Investment Requirements
Capital Investment Item | Units | Qty | @ | Total |
---|
Capital Investment Item | Units | Qty | @ | Total |
---|---|---|---|---|
Land | Acre | 1 | 25000 | 25,000 |
Premises | No | 60,000 | ||
Kitchen Facility | No | 1,500 | ||
Tents | No | 50 | 150 | 7,500 |
Beddings | No | 1500 | 1,500 | |
Dinning Equipments | No | 500 | ||
Furniture | No | 1,000 | ||
Games Equipment | No | 500 | ||
TV and Music Systems | 1000 | 1,000 | ||
Business Center Establishment | No | 3,000 | ||
Total | 101,500 |
Production and Operating Costs
Cost Item | Units | @ | Qty/day | Pdn Cost/day | Pdn Cost/mth | Pdn Cost/yr |
Direct Costs | ||||||
Restaurant materials Costs | – | – | – | 100 | 2,600 | 31,200 |
Bar materials Costs | – | – | – | 81 | 2,106 | 25,272 |
Sub–total | 4,706 | 56,472 | ||||
Cleaning and Toiletries | ||||||
Advertising | 200 | 2,400 | ||||
Labour | 500 | 6,000 | ||||
Utilities | 150 | 1,800 | ||||
Internet&DSTV Subscription | 140 | 1,680 | ||||
Cleaning and Toiletries | 200 | 2,400 | ||||
Miscellaneous | 100 | 1,200 | ||||
Depreciation | 1593.75 | 19,125 | ||||
Sub–total | 2883.75 | 34,605 | ||||
Total Operating Costs | 7,590 | 91,077 |
- 1) Production costs assumed 365 days per year with daily capacity of serving 20 guests. 2) Depreciation (fixed asset write off) assumes 4-years life of assets written off at 25% per year for all assets.
- 3) Direct costs include materials, supplies and other costs that directly go into production of the product.
- 4) Total monthly days assumed are 30-days.
- 5) The valuation currency used is United States Dollars.
Market Analysis:
Tourism is one of the fast growing sectors of the economy and the number of foreign guests is increasing steadily. There is demand for Camping facilities in different parts of the country. Places like Lake Mburo Sanctuary Reserve, Budadiri, Murchison Falls National Park, Queen Elizabeth National Park, and Kidepo National park are potential areas where this proposal can profitably start. Some of the existing facilities are very inadequate. A very aggressive marketing is required especially in the Tourist sector to cause awareness of the presence of these types of facilities at modest Prices.
Project Product Costs and Price Structure
Service | gst/day | Gsts/yr | Serv–cost | Rngcosts/yr | Charge/gst | Total Rve |
Hospitality | 20 | 6,240 | 14.60 | 91,077 | 35 | 218,400 |
Profitability Analysis Table
Profitability Item | Per day | Per Mnth | Per year |
Revenue | 700 | 18,200 | 218,400 |
Less: Production and Operating Costs | 292 | 7,590 | 91,077 |
Profit | 408 | 10,610 | 127,323 |
Government Incentives:
The government trough Uganda Tourist Board, took the initiative to advertise Uganda on the International scene which has partly boosted the said growth in the sector. Furthermore there are some facilitations accruing to the developers in Tourism sector, like access to tax free importation of some of the items to facilitate the services. There is campaign to develop and boost domestic tourism.
PROJECT PROFILE FOR A TENT HOUSE
Introduction This business idea is a service provider activity. It entails the hiring out of tents, utensils, plastic chairs and tables, tarpaulins mobile toilets stage mounting equipment etc. These items are stocked and hired to people organizing various functions such as weddings, birthday parties and public ceremonies. This is a business that is easy to run. The project requires estimated fixed capital of US$ 191,210 and operating costs of US$ 62,843 generating revenue of US$ 113,620 , with a net profit margin of 40% and a payback period of 1 year 7months. Process and Capacity The items are hired out and arrangements are such that they are delivered and tents are fixed for the functions and are picked after the functions. For success of this business cleanliness and time consciousness are taken very seriously. High ethical standards must be maintained to build a strong clientele and confidence. Capital Investment Requirements in USS
Capital Investment Item | Units | Qty | @ | Total |
Tents(50–seater) | No | 20 | 1,100 | 22,000 |
Tents(100–Seater) | No | 20 | 1,640 | 32,800 |
Tents(150–Seater) | No | 15 | 2,180 | 32,700 |
Tents(200–Seater) | No | 10 | 3,080 | 30,800 |
Utensils | No | – | – | 1,450 |
Plastic Chairs | No | 1,000 | 44 | 44,000 |
Plastic Tables | No | 20 | 48 | 960 |
Service Vehicle | No | 2 | – | 26,000 |
Office Furniture | No | – | – | 500 |
Total | 191,210 |
Production and Operating Costs (a)Direct Materials, Supplies and Costs
Operating Costs | Per yr | |
Rent | 150 | 1,800 |
Labour | 800 | 9,600 |
Selling and Distribution | 600 | 7,200 |
Cleaning and Toiletries | 100 | 1,200 |
Utilities | 40 | 480 |
Miscellaneous | 42 | 504 |
Depreciation | 3,984 | 47,803 |
Total Operating Costs | 5,237 | 68,587 |
1) Production costs assumed 365 days per year with daily capacity of hiring out 4 –times. 2) Depreciation (fixed asset write off) assumes 4-years life of assets written off at 25% per year for all assets. 3) Direct costs include materials, supplies and other costs that directly go into production of the product. 4) Total monthly days assumed are 26-days. 5) The valuation currency used is United States Dollars. Market Analysis There is a lot of potential in this area as many functions are organized almost daily ranging from wedding ceremonies to funeral vigils, get-together to graduation parties etc. Once the service is impressive the business potential is unlimited. People always expect to receive the best. Project Product Costs and Price Structure
Service | Fcns/wk | Fcns/yr | Fcn hng cost | Optg cost/yr | Hiring–Chge | Total Rve |
---|---|---|---|---|---|---|
Tent Hiring | ||||||
Tents 50–Seater) | 7 | 364 | 42 | 15,169 | 50 | 18,200 |
Tents (100–Seater) | 6 | 312 | 35 | 10,920 | 60 | 18,720 |
Tents (150–Seater) | 5 | 260 | 35 | 9,100 | 75 | 19,500 |
Tents (200–Seater) | 4 | 208 | 35 | 7,280 | 100 | 20,800 |
Chairs | 7 | 364 | 35 | 12,740 | 100 | 36,400 |
Total | 1,508 | 55,209 | 113,620 |
Profitability Analysis Table
Profitability Item | Per day | Per Month | Per year |
Revenue | 364 | 9,468 | 113,620 |
Less: Production and Operating Costs | 220 | 5,716 | 68,587 |
Profit | 144 | 3,753 | 45,034 |
Government Incentive The government maintains a liberalized trade and commerce policy which reduces encumbrances to the trading community. It encourages any entrepreneur who creates some form of employment.