BUSINESS IDEA FOR KNITTING, CROCHETING AND EMBROIDERY

 

Introduction

This idea for a business involves manufacturing and selling items including tablecloths, shawls, socks, sleeveless/waist coats, caps, jackets, shirts, gifts, and more. The basis of the business plan is the manufacture of a range of goods with an annual revenue potential of US$ 961,116, or US$ 80,093 each month. The project will cost $27,050 USD.

Process Description

A knitting machine is required for the knitter. The Burbins are stuffed with yarn before they begin knitting. A multi-head embroidery machine is filled with thread for embroidery, and the embroidery is carried out in accordance with the required computerized image or picture.

Market Analysis

For designing and printing its uniforms, the company is in high demand from schools, colleges, corporations, non-governmental organizations, households, security agencies, and numerous forces.

 

Capital Investment Requirements in US $

Item	Unit	Qty	Unit cost	Total
Sewing machine	No	1	100	100
Multi head Embroidery Machine	No	1	12,500	12,500
Delivery van	No	1	3,500	3,500
Embroidery Design Shop software	No	1	1,500	1,500
Hand tools	No	5	10	50
Total Cost of Machinery				17,650

 

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

Cost item	units	Unit Cost/ day	Qty/ day	Prod. cost/ day	Prod. Cost/ month	Prod. Cost/ year
Yarn	Dozen	15	30	450	11,700	140,400
Embroidery threads	Dozens	10	4	40	1,040	12,480
Brake fluids	ltrs	0.5	1	1	13	156
Sub-total					12,753	153,036

 

General costs (Overheads)	Prod. Cost/ month	Prod. Cost/ year
Utilities (power)	100	1,200
Salaries	150	1,800
Renting	150	1,800
Depreciation (Assets write off) Expense	368	4,413
Sub-total	768	9,213
Total Operating costs	13,521	162,249

Production expenses were based on a daily output of 2,551 goods over 312 days per year. Depreciation (the write-off of fixed assets) assumes a 4-year asset life and a 25% annual write-off rate for all assets. 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/yr	Unit cost	Prod cost/yrs	Unit price	Total revenue
Sweaters (small size)	36	11,232	3.70	41,558	6.0	67,392
Sweaters (big size)	36	11,232	3.70	41,558	7	78,624
Waist coats	36	11,232	3.70	41,558	6	67,392
Baby Shawls	36	11,232	3.70	41,558	6.5	73,008
Table cloth (sets)	7	2,184	19.0	41,496	12.5	27,300
Badges	500	156,000	0.06	9,360	0.3	39,000
Caps	500	156,000	0.27	42,120	0.8	117,000
Logos on T-shirts	700	218,400	0.25	54,600	1.3	273,000
Labeling	700	218,400	0.03	6,552	1	218,400
				320,362		961,116

 

Profitability Analysis in US $

Profitability item	per day	per month	per year
Revenue
Sweaters (small size)	216	5,616	67,392
Sweaters (big size	252	6,552	78,624
Waist coats	216	5,616	67,392
Baby Shawls	234	6,084	73,008
Table cloth (sets)	88	2,275	27,300
Badges	125	3,250	39,000
Caps	375	9,750	117,000
Logos on T-shirts	875	22,750	273,000
Labeling	700	18,200	218,400
Less Prod & Operating Costs	520	13,524	162,286
Profit	2,560	66,569	798,830

 

Source of Supply of Equipment and Raw materials

The local market is accessible nationwide for all raw materials and equipment.