BUSINESS IDEA FOR MAKING HERBAL DEODORANT

 

Introduction

The plan is to build a facility to produce liquid deodorant for use in bathrooms, kitchens, and other areas. The production of 13,000 deodorants per month, or 156,000 deodorants annually, is the basis for this company concept. The potential for income is projected at US $26,000 a month, or US $ 312,000 annually. The project's price tag is $3,073.

 

Production Process:

1 1/2 tablespoon of beeswax (yellow is best)

1/2 tablespoon cocoa butter

1 tablespoon coconut oil

15 drops white thyme essential oil

15 drops rosemary essential oil

25 drops lavender essential oil

3 drops castor oil

Beeswax should be melted in a glass container set in boiling water before cocoa butter and oils are added. Pour into a clean container after completely mixing in the stirrer. After letting it cool and set, throw away the deodorant stick container.

Market Analysis

The company enjoys year-round strong market demand in both urban and rural locations, with peak demand during the holiday seasons.

Capital investment in US $

item	unit	Qty	Unit cost
Emulsifier stirrer	No	1	500	500
Storage vessel	No	1	50	50
Hot plates	No	3	8	23
Delivery van	No	1	2.500	2.500
Total cost of machinery				3.073

 

Production and operating Costs in US $ Direct materials, supplies and costs

Cost item	unit	Unit cost/day	Qtl/day	Prod cost / day	Prod. Cost/ month	Prod. Cost/ year
Bee wax	kgs	0.5	20	10	260	3120
Cocoa butter	kgs	5	10	50	1,300	15,600
Cocoa nut oil	Kgs	0.2	5	1	26	312
White thyme essential oil	Liters	0.2	5	1	26	312
Rosemary essential oil	Liters	0.2	5	1	26	312
Lavender essential oil	Liters	0.2	5	1	26	312
Castor oil	Liters	0.2	5	1	26	312
Sub total					1,690	20,280

 

general cost (overheads)	Prod. Cost/ month	Prod. Cost/ year
Deodorant stick	13	156
Utilities (power)	150	1,800
Utilities (water)	15	180
Salaries	300	3,600
Renting	150	1,800
Mise cost	100	1,200
Depreciation (assets write off) expenses	64	768
Sub total	779	9,348
Total operating cost	2,469	29,628

 

Costs of production are estimated for 312 days annually, with a daily output of 500 herbal deodorants. Depreciation (the write-off of fixed assets) assumes a write-off rate of 25% per year for the whole asset life of four years. 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	Qty/day	Qty/day	Unit cost	Prod cost/yr	Unit price	Total revenue
Herbal deodorant	500	156,000	0.19	29,628	2.0	312,000

 

Profitability Analysis in US $

Profitability item	Per day
Revenue
Herbal deodorant	1,000	26,000	312,000
Less prod & operating cost	95	2,469	29,628
Profit	905	23,531	282,372

 

Source of Supply of Equipment and Raw materials

All East African nations have access to the local supplies and raw materials needed to launch this enterprise.

To reduce poverty, East African governments support small companies and other sources of income.

 

©Value of money can change any time due to various reasons