This business idea is for production and marketing of Palm leaves mats. Mats are popular in homes and are widely used among all sections of the society. Thus, mat making is a good investment that can easily be taken up by women. The production capacity per day is estimated at 30 Mats and the revenue is estimated at US$37,440 per year with a net profit of 37%.
Mat making involves collecting palm leaves, drying it in preffered colors and finally weaving the palm leaves into different kinds of Mats. They can be made with threads, which are dried and sewed with a needle.
Capital Investment Requirements in US$
|Capital investment item||Units||Qty||@||Amount|
Production and Operating costs in US$
|Cost Item||@||Qty/ day||Pdn cost / day||Pdn cost/ month||Pdn cost/ year|
|Utilities(water and power)||26||312|
|Total Operating Costs||1,966||23,592|
- Production costs assumed 312 days per year with a daily capacity of 30 mats
- Depreciation (fixed assets 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.
Project product Costs and Price Structure
|Item||Qty/day||Qty/yr||@||Pdn cost /yr||UPx||TR|
|Profitability Item||Per day||Per month||Per Year|
|Less production and operating Costs||75.6||1,966||23,592|
Mats are ideal for use in aisles of homes parties and mosques. These therefore form the market.
Sources of Raw materials:
Raw materials can be sourced locally.
Government Facilities and Incentives
The government has got incentives for those who are involved in the manufacturing sector as a bid to encourage setting up small and medium enterprises. Soft loans and grants are available in banks and other financial organizations for industrialists.