MAKING SOFT TOYS
Introduction
The idea is premised on production and marketing of 5,200 soft toys per month which translates into 62,400 toys per year. The revenue potential is estimated at US$ 600 per year. The business has a good market demand from infants and children between 1-9 years throughout the year. This kind of investment can cost about US $ 37,068.
Production Process
The basic materials used in soft toy making are: fur fabric, felt, filling and thread, Turkey towel, flannel or felt cloth. The production process involves designing to shape the toys, creating a pattern by using a cardboard, cutting the fur as per the pattern, stitching the edges. Based on the shape of the toy, required eyes, nose, etc are stitched to close the remaining edges. Finally, the fur piles are combed and neatly packed for marketing.
Market Analysis
The demand for soft toys is increasing in urban areas, semi-urban areas and towns. Soft-toys today occupy a special place in the drawing halls and are seen as decorative pieces. Nursery schools which are mushrooming in the country are a major outlet of Soft toys. These are commonly made by Art and Craft students in Educational Institutes.
Capital Investment requirement in US$
|
Item |
Unit |
Qty |
Unit |
Total |
|
Industrial Sewing machine |
No. |
2 |
1,000 |
2,000 |
|
Pair of scissors |
No. |
2 |
5 |
10 |
|
Delivery van |
No. |
1 |
2,500 |
2,500 |
|
Measuring tape |
No. |
1 |
2 |
2 |
|
Total cost of Machinery |
4,512 |
Production
and operating costs in US$
Direct Materials, Supplies and Cost in US$
|
Cost Item |
Units |
Unit |
Qty/ |
Prod. |
Prod. |
Prod. |
|
Cloth |
meters |
0.8 |
100 |
75 |
1,950 |
23,400 |
|
Cotton Wool |
kgs |
0.4 |
40 |
14 |
364 |
4,368 |
|
Threads |
bundles |
2.5 |
1 |
3 |
65 |
780 |
|
Sub-total |
2,379 |
28,548 |
||||
|
General costs (Overheads) |
||||||
|
Utilities (power) |
15 |
180 |
||||
|
Salaries |
75 |
900 |
||||
|
renting |
150 |
1,800 |
||||
|
Depreciation (Assets write off) Expenses |
94 |
1,128 |
||||
|
Sub-total |
334 |
4,008 |
||||
|
Total Operating costs |
2,713 |
32,556 |
Production costs assumed are for 312 days per year with
a daily capacity of 200 toys.
Depreciation (fixed assets write off) assumes 4 years life of assets write off
of 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 in US $
|
Item |
Qty/ |
Qty |
Unit |
Prod. |
Unit |
Total |
|
Soft toys |
200 |
62,400 |
0.5 |
31,200 |
2 |
93,600 |
Profitability analysis in US$
|
Item |
per day |
per |
per year |
|
Revenue |
|||
|
Soft Toys |
300 |
7,800 |
93,600 |
|
Less Prod & Operating Costs |
104 |
2,713 |
32,556 |
|
Profit |
196 |
5,087 |
61,044 |