BUSINESS IDEA FOR SHOE REPAIRING
Introduction
Shoes are important items put on by all categories of people. This project cost US$ 11,989 working on about 93,600 repairs annually and yielding annual revenues estimated at US $ 280.
Process, Capacity and Technology
The process of repairing shoes is not out straight because depending on the extent of damage on the shoes. These could be broken heels and worn out soles, stitching, faded leather, loose straps or buttons or buckles or fasteners etc. These determine what to be followed when doing repairs. The capacity of 300 shoes can be repaired per month.
Market Analysis
Given the nature of our terrain and walk ways, shoes get damaged quite often and thus need to be repaired. These clinics therefore are often jammed with customers. The major key players include; Winner Classics, Kayondo Shoe Company and other small scale businesses spread across the Country.
Capital Investment Requirement in US$
|
Item |
Units |
Qty |
Cost |
Total |
|
Leather stitching machine |
No |
2 |
425 |
850 |
|
stitching needles |
No |
10 |
3 |
25 |
|
foot frames |
No |
5 |
5 |
25 |
|
Boards |
No |
3 |
5 |
15 |
|
Shelves and Racks |
No |
2 |
15 |
30 |
|
Tables |
No |
2 |
25 |
50 |
|
Other Cutting instruments |
No |
10 |
3 |
25 |
|
Brushes |
No |
4 |
1 |
4 |
|
Hammers |
No |
4 |
2 |
6 |
|
Total cost of Machinery & Tools |
1,030 |
1. Production costs assumed 312 days per year with daily capacity of 300 repairs
2. Depreciation (fixed asset write off) assumes 4 year life of assets written off at 25% per year for all assets.
3. Direct costs include materials, supplies and all other costs that directly go into production of a product.
4. A production month is assumed to have 26 days.
5. Currency used is US Dollars.
Production and Operating costs in US$
Direct materials, supplies and costs
|
Cost |
Units |
Unit |
Qty |
Prod |
Prod |
Prod |
||||||
|
Direct Costs |
||||||||||||
|
Fabric |
Mtrs |
2 |
0.96 |
1.9 |
50 |
600.00 |
||||||
|
Synthetic |
Mtrs |
1.5 |
0.32 |
0.5 |
13 |
150.00 |
||||||
|
Leather |
Mtrs |
6 |
1.28 |
7.7 |
200 |
2,400.00 |
||||||
|
Threads |
Rolls |
12.5 |
0.2 |
2 |
52 |
625.00 |
||||||
|
Nails |
kgs |
2.00 |
0.01 |
0 |
1 |
6.00 |
|
|||||
|
Glue |
ltrs |
7.50 |
0.01 |
0 |
3 |
30.00 |
|
|||||
|
Sub-total |
12 |
317.58 |
3,811.00 |
|
||||||||
|
General Costs (Overheads) |
|
|||||||||||
|
Labour |
350 |
4,200 |
|
|||||||||
|
Selling & distribution |
50 |
600 |
|
|||||||||
|
Utilities (Water, power) |
35 |
420 |
|
|||||||||
|
Rent |
150 |
1,800 |
|
|||||||||
|
Miscellaneous expenses |
75 |
900 |
|
|||||||||
|
Depreciation |
21 |
258 |
|
|||||||||
|
Sub-total |
681 |
8,178 |
|
|||||||||
|
Total Operating Costs |
998.58 |
11,988.5 |
|
|||||||||
Project product costs and Price structure in US$
|
Item |
Qty |
Qty |
Unit |
Prod |
Unit |
Total |
|
Repairs |
300 |
93,600 |
0.1 |
11,989 |
0.3 |
28,080 |
Profitability Analysis in US $
|
Item |
Per |
Per |
Per |
|
Revenue |
90 |
2,340 |
28,080 |
|
Less: Production and operating costs |
38 |
999 |
11,989 |
|
Profit |
52 |
1,341 |
16,092 |