The business idea is for making and marketing of Power Invertors. This business idea is premised on production of 15Invertors per month which translates into 180 Invertors per year. The revenue potential is estimated at US $ 9,000 per month which translates into US $ 108,000 per year. The project cost is US $ 108,165.
Production process involves making a metallic box, sealing all its corners with solidal welding. Building the Oslators, Inverter system, Charging system and Automatic system, putting in switches and sockets
Production and Operation Costs in US$ Direct Materials, Supplies and Costs
|Cost Item||Units||@||Qty||Prod. cost||Prod. Cost/ month||Prod. Cost/ yr|
General costs (Overheads)
|Depreciation (Assets write off) Expenses||3||41|
|Total Operating costs||6,820||81,839|
- Production costs assumed monthly capacity of 15 Power Invertors.
- Depreciation (fixed assets write off) assumes 4 years life of assets write off of 25% per year for all assets.
- Direct costs include: materials, supplies and other costs that directly go into production of the product.
|TC of Machinery||165|
|Power Invertors||per month||15||455||600||6,820||9,000|
Profitability Analysis in US$
|Profitability item||per day||per month||per year|
|Less Prod & Operating Costs||262||6,820||81,839|
There is an ever-increasing demand for Invertors due to power shortages and interruptions. The market for the invertors is within the country and spreads beyond our borders like Rwanda, Sudan and Congo.
Availability of Raw Materials and Equipment
All Equipments, tools and other Materials can be got from the local market
Government Incentives Available
Government is encouraging small scale businesses and income generating activities to eradicate poverty through the Private Sector Foundation of Uganda and “Bonna Bagagawale Programme where subsidies are offered