Artist’s colors are widely used in many art paintings and designs. They are produced in many forms using different color material mixtures. The Business Idea is based on the need to explore the existing market especially with the vocationalisation of education. An estimated fixed capital of US $ 14,950 and operating costs of US$ 50,223, generating revenue of US$97,812 in the first year of operations. The net profit margin is 47% with the payback period of 1 year and 5 months.
Production Capacity, Technology and Process
The production process of artist’s colors mostly involves mixing of artists’ color raw materials. Molten wax and citric acid is mixed with colors and clay using a mixer. The mixture is poured and cooled in the moulds to cast the wax crayons. The final product is then poured into printed tin boxes or glass bottles or paper cartoons.
Investment Scale, Capital Requirements and Equipment
The investment scale largely depends on the set goals and objectives of the project. The equipment used is very simple to acquire and relatively cheap.
Capital Investment Requirements in US$
|Furniture & fittings||No||–||–||3,000|
Production and Operating Costs in US$ (a)Direct materials, Supplies and Costs
|Cost Item||Units||@||Qty/ day||Pdn cost/ day||Pdn cost/ mth||Pdn cost/yr|
|Selling & distribution||150||1,800|
|Cleaning and toiletries||88||1,056|
|Total Operating Costs||4,185||50,223|
- Production costs assumed are for 312 days per year with daily capacity of producing 190 tins of artist’s colours of 150 Liters each.
- 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.
- Total monthly days assumed are 26 work days.
- The valuation currency used is United States Dollars.
The market exists especially in schools, vocational institutions, art galleries, universities and in ordinary craft paintings.
Project Product Costs and Price Structure
Profitability Analysis Table
|Profitability Item||Per Day||Per Month||Per Year|
|Less: Production & Operating Costs||161||4,185||50,223|
Government Facilities and Incentives
There is reduction of 100% on training expenditure cost incurred during the year of income on training citizen employees but not exceeding five years in total.