A TENT HOUSE

• Services
• Event management

Introduction
This business idea is a service provider activity. It entails the hiring out of tents, utensils, plastic chairs and tables, tarpaulins mobile toilets stage mounting equipment etc. These items are stocked and hired to people organizing various functions such as weddings, birthday parties and public ceremonies. This is a business that is easy to run. The project requires estimated fixed capital of US$ 168,250 and operating costs of US$ 62,843 generating revenue of US$ 620.

Process and Capacity

The items are hired out and arrangements are such that they are  delivered and tents are fixed for the functions and are picked after the functions. For success of this business cleanliness and time consciousness are taken very seriously. High ethical standards must be maintained to build a strong clientele and confidence.

Market Analysis

There is a rapid market for Tents especially from Function Hire Companies, Tourists and Funeral service Companies. The best example of Tent dealing firms are; Uganda Canvas ltd, and other small scale firms.

Capital Investment Requirements in US$

Item	Units	Qty	Unit cost	total
Tents(50-seater)	No	20	1,150	23,000
Tents(100-Seater)	No	20	1,850	37,000
Tents(150-Seater)	No	15	2,000	30,000
Tents(200-Seater)	No	10	3,400	34,000
Utensils	No	-	-	1,450
Plastic Chairs	No	1,000	25	25,000
Plastic Tables	No	20	40	800
Service Vehicle	No	2	-	16,500
Office Furniture	No	-	-	500
Total	168,250

 

Production and Operating Costs
Direct Materials, Supplies and Costs

Operating Costs
Rent	150	1,800
Labour	800	9,600
Selling and Distribution	600	7,200
Cleaning and Toiletries	100	1,200
Utilities	40	480
Miscellaneous	42	500
Depreciation	3,505	42,063
Total Operating Costs	5,237	62,843

 

1)    Production costs assumed 365 days per year with daily capacity of hiring out 4 –times.

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

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

4)     Total monthly days assumed are 26-days.

5)     The valuation currency used is United States Dollars.

Project Product Costs and Price Structure

Service	Fcns/ wk	Fcns/ yr	Fcn hiring cost	Operating cost/yr	Hiring Charge	Total Revenue
Tent Hiring
Tents 50- Seater)	7	364	42	15,169	50	18,200
Tents (100- Seater)	6	312	35	10,920	60	18,720
Tents (150- Seater)	5	260	35	9,100	75	19,500
Tents (200- Seater)	4	208	35	7,280	100	20,800
Chairs	7	364	35	12,740	100	36,400
Total	1,508	62,843	113,620

Profitability Analysis Table

Item	Per day	Per month	Per year
Revenue	364	9,468	113,620
Less: Production and Operating Costs	201	5,237	62,843
Profit	163	4,231	50,778