COMPOUND DESIGNING
Introduction
Compound designing is an upcoming lucrative business in this era. Many developers are now interested in having well designed compounds that are be- fitting to their modern homesteads. This can be done for Universities, homes, Schools recreation centers, hospitals, camping sites, estates, hotels etc. and it is on very big demand and is highly marketable. Project cost is US$ 17,826 collecting revenue of US$584 annually form 312 compounds done per year.
Processes, Capacity and Technologies
The process starts as the premises near completion or when civil works are in the final stages. Leveling of the compound commences, black soil is mixed with composite and planting of grass, flower, trees, hedges etc. follows. Pavements, pavers and any arches are all put in place. Constant irrigation or watering is done to speed up growth. The placing of lights are identified and if procured are fixed.
Market Analysis
Compound designing is a new
development that has come up with modernization that is sweeping society. The
market potential includes: the affluent, Institutions and recreation centers
among
others. This is a lucrative business venture. There are numerous compound
designers spread across the country.
Capital Investment Requirement in US $
|
Item |
Units |
Qty |
Cost |
Total |
|
Cutters/ mowers |
No |
5 |
1,125 |
5,625 |
|
slushers |
No |
5 |
3 |
13 |
|
Hoes ,level, dustbin, rake |
No |
1 |
126 |
126 |
|
Motor bikes |
No |
2 |
1,000 |
2,000 |
|
scissor |
No |
5 |
13 |
63 |
|
Horse pipes |
No |
5 |
38 |
188 |
|
carrier basin |
No |
5 |
2 |
8 |
|
tape measures |
No |
5 |
8 |
38 |
|
watering cans |
No |
5 |
18 |
88 |
|
wheelbarrow |
No |
5 |
90 |
450 |
|
Total cost of Machinery & Tools |
8,596 |
1. Production costs assumed are for 312 days per year with daily capacity of 1 compound.
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 work days.
5. Currency used is US Dollars.
Production and Operating costs in US$
Direct materials, supplies and costs
|
Cost Item |
Units |
Unit |
Qty |
Prod |
Prod |
Prod |
|
Direct Costs |
||||||
|
String (blade) |
Meter |
1.429 |
3 |
4.29 |
111.42 |
1,337.08 |
|
Fuel |
Litres |
1 |
20 |
25 |
650.00 |
7,800.00 |
|
Sub-total |
29 |
761.42 |
9,137.08 |
|||
|
General Costs (Overheads) |
||||||
|
Labour |
325 |
3,900 |
||||
|
Selling & distribution |
150 |
1,800 |
||||
|
Utilities (Water, power) |
10 |
120 |
||||
|
Rent |
35 |
420 |
||||
|
Miscellaneous expenses |
25 |
300 |
||||
|
Depreciation |
179 |
2,149 |
||||
|
Sub-total |
724 |
8,689 |
||||
|
Total Operating Costs |
1,485 |
17,826 |
Project service costs and Price structure in US $
|
Service |
Comps |
Design |
Comp |
Comp |
Comp |
Total |
|
Compound |
1 |
312 |
57.1 |
17,826 |
82 |
25,584 |
Profitability Analysis in US$
|
Item |
Per day |
Per |
Per year |
|
Revenue |
82 |
2,132 |
25,584 |
|
Less: Production and operating costs |
26 |
686 |
17,826 |
|
Profit |
56 |
1,446 |
7,758 |