This business idea is for production and marketing of leather belts. Real leather belts are one accessory of apparel made of cowhides or other animal skin. It is a flexible band worn around the waist. A belt supports trousers or other articles of apparel and it serves for style and decoration. Their market structure is high since they are of good quality and they are used by almost all people with trousers and others.
The business idea is premised on three hundred working days single shift of 8 hours per day the unit is designed to have production of 1,000 belts per day which translates into 312,000 leather belts per year. The revenue potential is estimated at US$197,600 per month translation into US$2,371,200 per year with a sales margin of 27%with total capital investment requirement of US$67,660 and operational cost of 1,868,893 for the first year of project Operation.
The production capacity depends on the materials and equipments used in the production process.
Technology and process description
This project involves use of strap cutting machine, stitching machine, Riveting, punching machine and working tools. The production process involves strap cutting, stitching, riveting, coloring/dying, pressing designs, fixing fasteners/buckles and punching.
Scale of Investment, Capital Investment Requirement and Equipment
The project is on a small scale investment and capital investment depends on the intended number of outputs a manufacturer is targeting.
Capital Investment Requirements in US$
|Capital Investment Item||Units||Qty||@||Amount|
|Strap cutting machine||No||2||6,000||12,000|
|Construction cost (Building)||No||1||10,000||10,000|
Production and Operation Costs
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 (Power & water)||250||3,000|
|Depreciation(Asset write off) Exp||1,177||14,125|
|Total Operating Costs||155,741||1,868,893|
Project Product Cost and Price Structure in
|Item||Qty/ day||Qty/Yr||@||Pdn cost/Yr||UPx||T/rev|
Profitability Analysis in US$
|Profitability Item||Per day||Per Month||Per Yr|
|Less: Production and Operating Costs||5,990||155,741||1,868,893|