BUSINESS IDEA FOR MAKING SCHOOL BAGS

 

Introduction

The idea is premised on production and marketing of 20,800 bags per month which translates into 249,600 bags per year. The potential for income is estimated at USD 31,200 per month, or USD 374,400 annually. The business has a good market demand throughout the year especially at the beginning of term. This kind of investment can cost about US 5, 027

Production Process

The cutting of the raw material requires talent, as does the stitching and fastening of the accessories before it is packaged for shipment. To guard against easy interior ripping, a liner is fixed.

Market Analysis

The need for these backpacks is increasing as more youngsters are enrolling in school and colleges. As a result, there is a ready market for bags with neat stitching. Other bags, such as transport sacks, may also contain the plant. These are all readily marketable in every nation on earth.  

 

Production costs assumed are for 312 days per year with a daily capacity of 800 School bags.

Depreciation (fixed assets write off) assumes 4 years life of assets write off at 25% per year for all assets.

Direct costs include: materials, supplies and other costs that directly go into production of the product.

 

 

Source of Supply of Raw Materials and Equipment

I recommend Raw Materials and Equipment’s to be gathered in our local environment to that we will support the local business too

 

Government Incentives

Follow all rules and regulations of local and central government to so that the production should not face unnecessary disturbance