BUSINESS IDEA FOR GARBAGE COLLECTION

 Introduction

This venture proposal entails the gathering of trash from farms. The foundation of this company concept is the collection of trash from 400–500 residences. Each household or family contributes US$ 10 per month, or US$ 120 per year. The potential revenue is expected to be US$ 30,000 per month, or US$ 360,000 annually. The project's price tag is 34,645 USD.

Collection Process

A polythene bag is provided to each household or family for the collecting of their daily trash. Every week, garbage is picked up at a predetermined time and day. Then it is gathered in a container and taken in a collection van to the disposal facility. Following disposal, trash is allowed to dry before being either burned to reduce volume at the disposal site or processed into additional valuable resources like biogas and composite manure.

Market Analysis

Towns have always had issues with garbage collection. Garbage collection is available for use in offices, churches, schools, lodging facilities, hospitals, and private residences. The demand is limitless.

Capital Investment Requirements in US $

Item	Unit	Qty	Unit cost	Total
Garbage collection vans	No	2	8750	17,500
Hand tools (rakes, spades)	No	5	10	50
Total cost of machinery				17,550

 

Production and operation costs in US$ Direct Materials, Supplies and Costs

Cost item	units	Unit cost	Qty/week	Prod cost/week	Prod. Cost/month	Prod. Cost/year
Garbage cans	No	5	20	100	400	4,800
Polythene bags	No	0.3	250	63	250	3,000
Sub-total					650	7,800

 

General costs (Overheads)	Prod. Cost/ month	Prod. Cost/ year
Salaries	75	900
Fuel	260	3,120
Office rent	75	900
Depreciation asset (write off)	365	4,375
Sub total	775	9,295
Total operating cost	1,425	17,095

 

With a weekly capacity of 2,551 goods, collection costs are based on a 12-month year. For garbage collection vans, depreciation (fixed asset write-off) assumes a 4-year asset life with a 25% write-off per year. Materials, supplies, and other expenses directly related to the manufacture of the good are considered direct costs.

Project Product Cost and Price Structure in US$

Item	Period	output	Unit cost	Unit price	Total cost	Total revenue
Fees	per month	6	238	5,000	1,425	30,000
	per year	288	2,850	60,000	17,100	360,000

 

Profitability Analysis In US $

Profitability item	per month	per year
Revenue
Collection fees	30,000	360,000
Less Production & Operating Costs	1,425	17,095
Profit	28,575	342,905

 

Source of Supply of Equipment

Tools and Equipment can be obtained from the local market.

Government Incentives

Government is encouraging the setting of Health promoting projects and sensitizing people on safe living