MAKING WOODEN TOYS
Introduction
This business idea is for making and
marketing of wooden toys.
Wooden toys are kids’ playing materials which provide them with
hours of fun. They are a source of learning for inquisitive children.
With the growing toys demand, the market for wooden toys is
wide as more sophisticated types of toys attract more and more
kids. They also have an export market especially through the
numerous tourists. The business idea aims at production of 2,496
wooden toys per month which translates into 29,952 wooden toys
per annum. The revenue potential is estimated at US$12,480 per
month translating into US$149,760 per year with a sales margin of
10% and total investment is US$113,101 for the first year of project operation.
Market Analysis
Wooden toys can compete favorably with
the other imported ones
because their production cost is quite low therefore, with effective
advertising there is a promising potential market.
Production Capacity
The production capacity depends on the
size of the plant and
materials used in the production process.
Technology and Process Description
The production process involves
cutting the wood to proper size
and the pieces are fed to wood lathe and jigsaw machines etc, to
give a desired shape and size to the wood. The toy parts are
assembled and are painted in attractive colors.
Scale of Investment, Capital Investment
Requirements and
Equipments
The Investment scale greatly depends
on the objectives of the
manufacturer and the market for the products, Capital Investment
requirements and equipment involve buying circular saw, jig saw
machine, wood lathe machine, carpenter tools kits, spray painting
unit, plywood, paints varnish, soft wood and hardware accessories.
Capital Investment Requirements in US$
|
Item |
Units |
Qty |
Unit Cost |
Amount |
|
Circular Saw |
No |
4 |
150 |
600 |
|
Jigsaw Machine |
No |
4 |
100 |
400 |
|
Spray Painting Unit |
No |
1 |
250 |
250 |
|
Carpenter tool Kit |
No |
2 |
100 |
200 |
|
Wood Lathe Machine |
No |
2 |
125 |
250 |
|
Total |
1,700 |
Production and Operating Costs
Direct Materials, Supplies and Costs in US$
|
Cost item |
units |
Unit cost |
Qty/day |
cost/day |
Cost/month |
Cost/yr |
|
Direct costs |
|
|
|
|
|
|
|
Teakwood |
Cb feet |
3 |
96 |
288 |
7,488 |
89,856 |
|
Plywood |
Sq. m |
0.5 |
60 |
30 |
780 |
9,360 |
|
Oil Paints |
Liter |
2.3 |
5 |
11.5 |
299 |
3,588 |
|
Vanishes |
Liter |
2.5 |
5 |
12.5 |
325 |
3,900 |
|
Sub-total |
166 |
342 |
8,892 |
106,704 |
||
|
General Costs(Overheads) |
||||||
|
Labour |
306 |
3,672 |
||||
|
Miscellaneous Costs |
50 |
600 |
||||
|
Depreciation (Asset write off)Exp |
35 |
425 |
||||
|
Sub-total |
391 |
4,697 |
||||
|
Total Operating Costs |
9,283 |
111,401 |
1. Production costs assumed are for 312 days per
year with a daily
capacity of 96 wooden toys in of the same type and size.
2. This
business idea covers making of different products in different
sizes depending on raw materials used.
3. Depreciation (fixed asset write off) assumes 4
years life of assets
written off at 25% per year for all assets.
4. Direct
Costs include materials, supplies and other costs that directly
go into production of the product.
5. A
production month is assumed to have 26 days.
Project Product Cost and Price Structure in US$
|
Item |
Qty/ |
Qty/Yr |
Unit |
Pdn |
Unit |
T/rev |
|
Wooden |
96 |
29,952 |
4 |
111,401 |
5 |
149,760 |
Profitability Analysis in US$
|
Item |
Per day |
Per Month |
Per Yr |
|
Revenue |
480 |
12,480 |
149,760 |
|
Less: Production and |
357 |
9,283 |
111,401 |
|
Profit |
123 |
3,197 |
38,359 |