MAKING SISAL DOOR MATS
Introduction
This business idea is for production and marketing of sisal door mats. Carpets
are popular both in private homes and offices. Made out of sisal, sisal door
mats are widely used among all sections of the society. Thus sisal door mat
making is a good investment that can easily be taken up by women. The production
capacity is estimated at 150 sisal door mats per day with the total revenue of
US$ 300 per year.
Production Process
Sisal door mats making involves collecting sisal, drying it in proffered
colours and finally weaving the sisal into different kinds of sisal door mats.
They can be made with threads, which are dried and sewed with a needle.
Market Analysis
The market is available throughout the year. Sisal door mats can be sold in
different places like hotels, households, workplaces, Curio shops, Churches and
Halls. These are mainly produced by vulnerable groups in Uganda.
Capital Investment Requirements (US$)
Capital investment item |
Units |
Qty |
Unit |
Amount |
Sisal
door mat weaving |
No. |
1 |
1,000 |
1,000 |
Sewing needle |
No. |
5 |
50 |
250 |
Knives |
No. |
6 |
0.8 |
5 |
Basins |
No. |
4 |
2 |
6 |
Total Cost of machinery |
1,261 |
Production and Operating Costs (US$)
Cost |
Units |
Unit |
Qty/ |
Prod |
Prod |
Prod |
Sisal |
bundles |
2 |
500 |
1,000 |
26,000 |
312,000 |
Colours |
Kg |
1 |
20 |
20 |
520 |
6,240 |
Sub-totals |
1,020 |
26,520 |
318,240 |
|||
General costs(overheads) |
||||||
Utilities(water and power) |
175 |
2100 |
||||
Labour |
781 |
9375 |
||||
Rent |
100 |
1200 |
||||
Miscellaneous costs |
250 |
3,000 |
||||
Distribution costs |
260 |
3,120 |
||||
Depreciation (Asset write off)Expenses) |
26 |
315 |
||||
Sub -total |
1,593 |
19110 |
||||
Total Operating Costs |
28,113 |
337,350 |
Production costs
assumed are for 312 days per year with a daily capacity of 150 sisal door mats.
Depreciation (fixed assets write off) assumes 4 years life of assets written
off at 25% per year for all assets.
Direct costs include: materials, supplies and other costs that directly go into
production of the product.
Project product Costs and Price
Structure (US$)
Item |
Qty |
Qty/ |
Unit |
Prod
cost |
Unit |
Total |
Sisal
door |
150 |
46,8 |
7.21 |
337, |
7.5 |
351,000 |
Profitability Analysis (US$)
Profitability Item |
Per |
Per month |
Per Year |
Revenue |
1,125 |
29,250 |
351,000 |
Less
production and |
1,081 |
28,113 |
337,350 |
Profit |
44 |
1,137 |
13,650 |