MAKING METALIC BUTTONS
Introduction
This business is for production and marketing of
Metallic buttons. A button is a small disc, typically round object usually used
as fancy items both in ready-made and tailor made garments. Available in
different shapes and designs, metallic buttons add value to the garments With
the fact that metallic buttons can be polished easily and easily gold plated,
setting up a project to make metallic buttons could
indeed be very profitable business idea Metallic buttons are made from metallic
sheets of aluminum or brass. Their market structure is relatively high since
most clothes and some bags need horn buttons as fasteners.
Production Capacity
The production capacity depends on the materials and equipment used in the production process. The business idea is premised on three hundred and twelve working days and single shift of 8 hours per day. The unit is designed to have production of 150 kilograms of metallic buttons per day translating into an annual production of 46,800 Kilograms. The revenue potential is estimated at US$600 per year with a sales margin of 10% and total investment requirement is US$78,712 for the first year of business Operation.
Technology and Process Description
The metallic sheets of aluminum or brass are fed to the hand press for blanking the upper dome. The required size steel strips are fed to other press for blanking. The blanks cut on this press are fed to another press for cutting and blending. The dome is fitted on the base blank of the press. Embossing of the desired design is also done on the press. After fitting the dome with the base, the buttons are set for barreling. After that, the buttons along with the base are packed in cardboard cartoons for sale.
Market Analysis
The market for metallic buttons is readily available with Designers, Dress makers and Tailors etc. This industry is still undeveloped in Uganda.
Capital Investment Requirements
|
Item |
Units |
Qty |
Unit Cost |
Amount |
|
Circular Steel saw |
No |
1 |
150 |
150 |
|
Band saws |
No |
2 |
125 |
250 |
|
Boring machine |
No |
4 |
100 |
400 |
|
Buffing polishing lathe |
No |
2 |
150 |
300 |
|
Hole drilling machine |
No |
3 |
250 |
750 |
|
Pillar
type fly wheel screw |
No |
4 |
100 |
400 |
|
Roller type shearing machine |
No |
2 |
250 |
500 |
|
Bench grinder double ended |
No |
1 |
600 |
600 |
|
Dies, punches, tolls, etc. |
500 |
500 |
||
|
Delivery Van |
No |
1 |
7,500 |
7,500 |
|
Total |
11,350 |
Production
and Operating Costs
Direct Materials, Supplies and Costs in US$
|
Cost Item |
Units |
Unit |
Qty/ |
Prod |
Prod |
Prod |
|
Direct Costs |
||||||
|
Aluminum/Brass/ |
No |
5 |
30 |
150 |
3,900 |
46,800 |
|
Cardboard |
No |
0.15 |
30 |
4.5 |
117 |
1,404 |
|
Dyes |
kg |
1.5 |
10 |
15 |
390 |
4,680 |
|
Subtotals |
70 |
169.5 |
4,407 |
52,884 |
||
|
General Costs(Overheads) |
||||||
|
Rent |
100 |
1,200 |
||||
|
Labour |
500 |
6,000 |
||||
|
Utilities |
120 |
1,440 |
||||
|
Preliminary Costs |
150 |
1,800 |
||||
|
Miscellaneous Costs |
100 |
1,200 |
||||
|
Depreciation(Asset write off)Expenses |
236 |
2,838 |
||||
|
Sub-total |
1,206 |
14,478 |
||||
|
Total Operating Costs |
5,613 |
67,362 |
1. Production costs assumed are for 312 days per year with a daily capacity of 150 Kilograms of metallic Buttons.
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. A production month is assumed to have 26 work days
5. Colours/Dyes can be purchased in different colours
Project Product Costs and Price
Structure in US$
|
Item |
Qty/ |
Qty/ |
Unit |
Prod |
Unit |
T/rev |
|
Metallic |
150 |
46,800 |
1.4 |
67,362 |
2 |
93,600 |
Profitability Analysis in US$
|
Item |
Per |
Per |
Per Yr |
|
Revenue |
300 |
7,800 |
93,600 |
|
Less: Production and Operating Costs |
216 |
5,613 |
67,362 |
|
Profit |
84 |
2,187 |
26,239 |