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
cost

Amount

Sisal door mat weaving
handloom

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
Item

Units

Unit
cost/
day

Qty/
day

Prod
cost/
day

Prod
cost/
month

Prod
cost/
year

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
/day

Qty/
yr

Unit
Cost

Prod cost
/yr

Unit
Price

Total
revenue

Sisal door
mats

150

46,8
00

7.21

337,
350

7.5

351,000

 

Profitability Analysis (US$)

Profitability Item

Per
day

Per month

Per Year

Revenue

1,125

29,250

351,000

Less production and
operating Costs

1,081

28,113

337,350

Profit

44

1,137

13,650