Introduction
The basis of this business
plan is the manufacture and sale of 5,200 yards of cloth every month, or 62,400
pieces of cloth annually. The potential for income is projected at US$ 26,000 a
month, or US$ 312,000 annually. The attire could be kanzus, vitenge, etc. The
project will cost $163,503 USD.
Production process
The fabric is coloured,
spread out, and pinned over a lengthy table. The cloth is straightened by
fastening it to the table, then printed with the chosen blocks and colors. The
cloth is taken off the table after printing, washed with chemicals, dried, folded,
and packaged for sale.
Market analysis
The market for printed
clothing has expanded with a variety of styles and colors thanks to the rising
demand for cotton fibers. The desire for created clothing that combines current
art, fashion aesthetics, and most importantly, appealing colors, has satisfied
a variety of consumer wants. The country is home to a large number of small-scale
investors in this industry.
Tools and Equipment in US Dollars
Item
|
unit |
quantity |
Unit
cost |
Design blocks |
No |
100 |
5 |
Sari rollers |
No |
5 |
5 |
tables |
No |
4 |
35 |
|
|
|
|
Production and Operating Costs in US$ Direct Materials,
Supplies and Cost
Cost item |
units |
Unit cost/day |
Qty/day |
Prod cost/ day |
Prod cost/month |
Prod cost/year |
cloth |
Yards |
2.5 |
200 |
500 |
13,000 |
156,000 |
colors |
Kgs |
0.5 |
12 |
6 |
156 |
1,872 |
Sub
total |
|
|
|
|
13,156 |
157,872 |
general cost (overheads) |
|
|
Utilities (power) |
15 |
180 |
Utilities (water) |
10 |
120 |
salaries |
300 |
3600 |
Rent |
75 |
900 |
Depreciation (assets write off) expenses |
14 |
166 |
Sub total |
414 |
4966 |
Total
Operating cost |
13,570 |
162,838 |
Production was based on a
daily capacity of 200 yards over a 312 day year. Depreciation (write-off of
fixed assets) is based on a 4 year asset life and a 25% annual write-off rate.
Materials, supplies, and other expenses directly related to the manufacture of
the good are referred to as "direct costs."
Project Product Cost and Price Structures in US$
Item |
Qty/day |
Qty/yr |
Unit cost |
Prod cost/yr |
Unit price |
Total revenue |
cloth |
200 |
62,400 |
3 |
162,828 |
5 |
312,000 |
Profitability Analysis in US$
Profitability
item |
per
day |
per
month |
per
year |
Revenue |
|
|
|
Rice (super) |
1000 |
26,000 |
312,000 |
Less production & operating cost |
522 |
13,570 |
162,828 |
Profit
|
478 |
12,430 |
149,162 |
Source of Supply of Suppliers of Raw Materials and Machinery
Raw materials and tools can
be obtained from the local market
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