Introduction
This is about making jewelery such as rings, brooches, chains, and bracelets by cutting, shaping and polishing the material for producing fashion jewels. Jewelry is used by women mostly though of late men have started using it. This business idea aims at production of 200 pieces of jewelry per day thus 62,400 pieces annually. The revenue potential is estimated at US $ 62,400 annually and the total investment is estimated at US $ 1,580 in the first year of Project operation. The net profit margin is estimated at 39%.
Production Process
It involves collecting, designing and decorating beads, horns, metals, stones, shells and joining them with threads and strings.
Scale of investment
Capital Investment Requirements
| Capital Item | Units | Qty | @ | Amount |
|---|---|---|---|---|
| Working table | Â | 6 | 220 | 1,320 |
| Scissors | Â | 5 | 6 | 30 |
| Brushes | Â | 5 | 4 | 20 |
| Needles | sets | 7.5 | 6 | 45 |
| Other equipments | Â | 1 | 165 | 165 |
| Total | Â | Â | Â | 1,580 |
Production and Operation costs in US$
| Cost Item | Units | Unit cost | Qty/day | Pdn cost/ day | Pdn cost/ mth | Pdn cost/ Year1 |
|---|---|---|---|---|---|---|
| Direct costs3: | Â | Â | Â | Â | Â | |
| Beads | Kgs | 5 | 4 | 20 | 520 | 6,240 |
| Shells | Kgs | 3 | 8 | 24 | 624 | 7488 |
| Stones | Kgs | 1 | 5 | 5 | 130 | 1560 |
| Horns | Â | 3 | 5 | 15 | 390 | 4680 |
| Sand paper | Â | 5 | 2 | 10 | 260 | 3120 |
| Strings | Mtr | 0.75 | 10 | 7.5 | 195 | 2340 |
| Metals | Â | 0.5 | 10 | 5 | 130 | 1560 |
| Subtotal | Â | Â | Â | Â | 2,249 | 26,988 |
General costs (Overheads)
| Salaries and wages | 300 | 3,600 |
|---|---|---|
| Utilities | 250 | 3,000 |
| Selling and Distribution | 100 | 1,200 |
| Administrative expenses | 180 | 2,160 |
| Rent | 100 | 1,200 |
| Depreciation (Asset write off) Expenses | 54 | 648 |
| Sub-total | 984 | 11,808 |
| Total Operating Costs | 3,233 | 38,796 |
- Production is assumed for 312 days per year.
- Depreciation assumes 4 year life of assets written off at 25% per year for all assets.
- A production Month is assumed to have 26 days.
Project Product Costs and Price Structure
| Item | Qty / day | Qty/yr | Unit Cost | Pdn/yr | Unit Price | TR |
|---|---|---|---|---|---|---|
| Bead jewelry | 100 | 31,200 | 1 | 14,400 | 0.5 | 15,600 |
| Metal Jewelry | 50 | 15,600 | 12.0 | 187,200 | 2 | 31,200 |
| Shell jewelry | 50 | 15,600 | 0.44 | 6,864 | 1 | 15,600 |
| TOTAL | 200 | 62,400 | 13 | 38,796 | 2.75 | 62,400 |
Profitability Analysis Table in US$
| Profitability Item | Per day | Per Month | Per Year |
|---|---|---|---|
| Revenue | 200 | 5,200 | 62,400 |
| Less: Operating Costs | 122 | 3,182 | 38,796 |
| Profit | 322 | 8,382 | 23,604 |
Market
The market for jewels is constant throughout the year and could include the following; beauty shops, market places, street vending places, work places, homesteads, salons and tourist places.
Suppliers of Materials and Equipment
All the materials and equipment can be sourced locally and are readily available since this does not require sophisticated technology.
