Introduction
This venture is for making of Bathroom sandals. Their market structure is wide because they are used by all people in the society. Their demand prospect is high due to the continuous increase in income of people and improved life styles.
Production Capacity
The business idea is premised on production of 12,012 pairs of sandals per month which translates into 144,144 pairs per year. The revenue potential is estimated at US$278,198per year , with a net profit margin of 34% and a payback period of 4 months. This project Investment is US$11,638.
Process Description:
The process involves cutting cellular rubber sheets into required shapes & sizes and ready-made straps are fixed to the cut rubber sheets depending on the size and colour.
Capital Investment Requirements in US$
| Capital Investment Item | Units | Qty | @ | Amount |
|---|---|---|---|---|
| Hydraulic cutting machine | No | 1 | 2,800 | 2,800 |
| Drilling Machine | No | 1 | 500 | 500 |
| Smoother Machine | No | 1 | 230 | 230 |
| Drilling bits for straps, cutting tools | No | 6 | 18 | 108 |
| Delivery van | No | 1 | 8,000 | 8,000 |
| Total | 11,638 |
Production and Operating Costs in US$
| Cost Item | Units | @ | Qty/ day | Pdn cost/ day | Pdn cost/ month | Pdn cost/ year |
|---|---|---|---|---|---|---|
| Direct Costs | ||||||
| Hawai Rubber Cellules | No | 10.9 | 8 | 87 | 2,267 | 27,206 |
| Straps | pairs | 0.96 | 462 | 444 | 11,532 | 138,378 |
| Sub-total | 470 | 531 | 13,799 | 165,585 |
General Costs(Overheads)
| Packing materials | 20 | 240 |
|---|---|---|
| Rent | 75 | 900 |
| Utilities(power) | 30 | 360 |
| Labour | 775 | 9300 |
| Preliminary costs | 250 | 3000 |
| Other costs | 100 | 1200 |
| Depreciation (Asset write off) Exp | 242 | 2,910 |
| Sub-total | 1,492 | 17,910 |
| Total Operating costs | 15,291 | 183,495 |
- Production costs assumed are for 312 days per year with a daily capacity of 462 pairs of bathroom sandals.
- Depreciation (fixed asset write off) assumes _4_ years life of assets written off at _25% per year for all assets.
- Direct Costs include materials, supplies and other costs that directly go into production of the product. 4. A production month is assumed to have 26 days
Project production Costs and Price Structure
| Item | Qty/day | Qty/Yr | @ | Pdn cost/Yr | UPx | T/rev |
| Bathroom sandals | 462 | 144,144 | 1.27 | 183,495 | 1.9 | 278,198 |
Profitability Analysis in US$
| Profitability Item | Per day | Per Month | Per Yr |
|---|---|---|---|
| Revenue | 891.66 | 23,183 | 278,198 |
| Less: Production and Operating Costs | 588 | 15,291 | 183,494 |
| Profit | 304 | 7,892 | 94,704 |
Raw materials and equipments
Raw materials can be imported from countries like Ghana and equipments can be obtained from the local market.
Government Incentives Available
Government is encouraging small scale businesses and income generating activities to eradicate poverty through
1 Comments
Hello Mr/ Mrs.
I want to know how to manufacture bathroom sandles in Uganda.
Please let me know know the procedures because I want to be a job creator in my area and my fellow youth..
Thank you ?