MAKING BASKETS
Introduction
This business idea is for production and marketing of baskets. Baskets are made
in various shapes, sizes and designs, which are made from palm leaves, papyrus
reeds, banana fibers, sisal, and bamboo or Palm leaves depending on their
purposes. As the raw materials are in plenty, these materials can be elegantly
made. The idea is premised on the production of 20 baskets per day, with total
investment of $ 38,028 per year and revenue estimated at US$800per year.
Production process
Basket making involves collecting raw materials, dyeing them in preferred
colours and finally weaving or sewing them by using threads and neddles into
baskets. The entire making process is artistic and skill based handwork.
However, certain hand-operated machines are used in processing raw material for
knitting the end products.
Market Analysis
Baskets have ready market in different places like Craft shops, Hotels,
Households, Curio shops and they can be used for various purposes. There
various players in this industry.
Capital Investment Requirements in US$
|
Capital investment item |
Units |
Qty |
Unit |
Amount |
|
Basins |
No. |
10 |
2.5 |
25 |
|
Mats |
No. |
4 |
6 |
24 |
|
Crotchet needles |
No. |
12 |
0.5 |
6 |
|
Display table |
No. |
3 |
600 |
800 |
|
knives |
No. |
12 |
0.5 |
6 |
|
Large sewing needle |
No. |
12 |
0.8 |
9 |
|
Total cost on machinery |
1,870 |
Production and Operating costs in US$
|
Cost Item |
Units |
Unit |
Qty |
Prod |
Prod |
Prod |
|
Colour |
kg |
1 |
5 |
3 |
65 |
780 |
|
Papyrus |
Bundles |
2 |
15 |
30 |
780 |
9,360 |
|
Sisal |
Bundles |
3.5 |
20 |
70 |
1,820 |
21,840 |
|
Sub-total |
40 |
103 |
2,665 |
31,980 |
||
|
General costs(overheads) |
||||||
|
Utilities(water and power) |
50 |
600 |
||||
|
Labour |
150 |
1800 |
||||
|
Rent |
150 |
1800 |
||||
|
Miscellaneous costs |
50 |
600 |
||||
|
Distribution costs |
65 |
780 |
||||
|
Depreciation(Asset write off)Expenses) |
39 |
467.50 |
||||
|
Sub -total |
504 |
6047.50 |
||||
|
Total Operating Costs |
3,169 |
38,028 |
1, Production costs assumed 312 days per year with a daily
capacity of 20 baskets
2, Depreciation (fixed assets 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.
Project product costs and price structures in $ Dollars
|
Item |
Qty |
Qty/y |
Unit |
Pdn |
Unit |
Total |
|
Baskets |
20 |
6,240 |
6.09 |
38,028 |
7.5 |
46,800 |
Profitability Analysis
|
Profitability Item |
Per |
Per |
Per |
|
Revenue |
150 |
3,900 |
46,800 |
|
Less production and operating Costs |
122 |
3,169 |
38,028 |
|
Profit |
28 |
731 |
8,773 |