BUSINESS PLAN FOR MAKING SERVIETTES

Introduction
A serviette is a small piece of table linen that is used to wipe the
mouth and to cover the lap in order to protect clothing when eating.
Made out of light absorbent material, napkins are soft to absorb
sweat and clean the mouth. The market is constituted by individual
consumers, hospitals, restaurants, homes and hotels among others.
The business idea aims at production of 2,600 packets of serviettes
per month which translates into 31,200 packets annually. The
revenue potential is estimated at 11,180 dollars per month,
translating into 134,160 dollars per year with a sales margin of 10%.
The total capital investment for the project is 3,150 dollars. 

Plant Capacity
The profiled plant is expected to produce 40,560 units (each unit
with 10 packs of 50 pieces each) per annum.

Technology and Production Process
To make serviettes, a hand driven knitting machine and a yarn
twister are used. The raw materials include Cotton staple yarn,
absorbent thread, cotton thread, cardboard boxes and craft papers.
Cotton staple yarn is knitted into loose fabric tube, cut to required
pieces of absorbent cottons with the ends of the napkins tied by
thread and packed in printed polythene bags.

Market Analysis
The demand for Serviets is very high in Urban Centres especially in
modern Hotel, Homesteads, and Institutions, e.t.c. However, this
industry is still undevelope

 

 

Production is assumed for 312 days per year.
Depreciation assumes 4 year life of assets written off at 25%
per year for all assets.
A production Month is assumed to have 26 days

 

Sources of Supply of Raw Materials and Equipments
All equipments and raw materials can be sourced locallyaaa