This business idea is for making and marketing/vending of fruits. It involves selling varieties of fruits like mangoes, pineapples, paw paws, watermelon, apples and sweet bananas which are bought in large quantities, washed, peeled, cut into pieces and packed in disposable containers to make the fruit salads.
Their market structure and demand is relatively high especially in urban areas.
The business risk involved is healthy and safety related risks surrounding the manufacturing and processing but can be solved by employing food scientists and adhering to a strict safety and hygienic regime
Production capacity depends on the capital invested and capital capability. This business idea targets a sale of 250 fruit salads packed in containers per day, which translates into 6,500 packages per month. The revenue potential is estimated at US$200 per day, translating into US$ 62,400 per annum inclusive of a sales margin of 10%. The estimated total investment capital required to establish this project is estimated at US$704. The payback period is about 1 month and the net profit is 26%.
Technology and Process Description:
Fruit vending involves a door to door delivery of services and has no complicated technology involved. Fruit processing is relatively simple because fruits are bought in large quantities, washed, peeled, cut into pieces, mixed and packed into containers in a desired quantities for sale.
Capital Investment Requirements in US$
|capital investment requirements|
|Capital Investment Item||Units||Qty||@||Amount|
Direct Materials, Supplies and Costs in US$ General Costs(Overheads)
|Cost Item||Units||@||Qty/ day||Pdn cost/ day||Pdn cost/ month||Pdn cost/ year|
|Utilities (water & Power)||2||52||624|
|Depreciation (Asset write off) Exp||0.52||13.52||162.24|
|Total Operating Costs||170||4,538||46,800|
- Production costs assumed are for 312 days per yearwith a daily capacity of 250 packages of fruit salads.
- Depreciation (fixed asset 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.
- A production month is assumed to have 26 work days.
Project Product Costs and Price Structure
|Item||Qty/ day||Qty/Yr||@||Pdn cost/Yr||UPx|
Profitability Analysis in US$
|Profitability Item||Per day||Per Month||Per Yr|
|Less: Production and Operating Costs||148.27||3,855||46,800|
There is a high demand in densely populated areas and the Ugandan population is highly sensitized about the use of fruits through radios and other media channels.