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21/05/2018

STARTING A SHOE REPAIRING BUSINESS IN UGANDA

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Written by: wmutenza

Introduction

Shoes are important accessories put on by all categories of people, from babies, children and adults. Sered with. Find a perfect shoe, find out how and what to do when something goes wrong and you need to repair it. This can be a viable venture because nobody wants to move with worn-out, torn, cut, or broken shoes. This project cost US$ 1030 working on about 436800 repairs annually and yielding annual revenues estimated at US $ 13104.

Process, Capacity and Technology

Item Units Qty cost Total
Leather stitching machine No 2 425 850
stitching needles No 10 3 25
foot frames No 5 5 25
Boards No 3 5 15
Shelves and Racks No 2 15 30
Tables No 2 25 50
Other Cutting instruments No 10 3 30
Brushes No 4 1 4
Hammers No 4 2 8
TC of Machinery & Tools       1,030

The process of repairing shoes is not out straight because depending on the extent of damage on the shoes. These could be broken heels and worn out soles, stitching, faded leather, loose straps or buttons or buckles or fasteners etc.

These determine what to be followed when doing repairs. The capacity 300 shoes per month and the technology involved is locally invented and therefore very affordable.

Capital Investment Requirement in $

  1. Production costs assumed 312 days per year with daily capacity of 300 repairs
  2. Depreciation (fixed asset write off) assumes 4 year life of assets written off at 25% per year for all assets.
  3. Direct costs include materials, supplies and all other costs that directly go into production of a product.
  4. A production month is assumed to have 26 days.
  5. Currency used is US Dollars.

Production and Operating costs in US$

Direct materials, supplies and costs

Cost Item Units @ Qty/day Pdn cost/ day Pdn cost/ mth Pdn cost/yr
Direct Costs          
Fabric Mtrs 3 0.96 2.88 74.88 89
Synthetic Mtrs 1.2 0.32 0.384 9.984 120
Leather Mtrs 7 1.28 8.96 232.96 2,796
Threads Rolls 10 0.2 2 52 625
Nails kgs 2.6 0.01 0.026 0.676 8.112
Glue ltrs 6 0.01 0.06 1.56 18.72
Sub-total       14.31 372.06 4,465.7

General Costs (Overheads)

Labour 350 4,200
Selling & distribution 50 600
Utilities (Water, power) 35 420
Rent 150 1,800
Miscellaneous expenses 75 900
Depreciation 21.4 257.5
Sub-total 681 8,178
Total Operating Costs 10534 12,6434

Project product costs and Price structure in US$

Item Qty/day Qty /yr @ Pdn cost/yr UPx TR
Repairs 1400 436,800 0.1 43,680 0.3 13,104

Profitability Analysis in US $

Profitability Item Per day Per month Per year
Revenue 42 1,092 13,104
Less: Production and operating costs 41 1053.6 12,644
Profit 1 38 460

Market Analysis

New Shoes are quite expensive and with our terrain and broken walk ways, shoes get damaged quite often and thus need to repair them. These clinics therefore are often jammed with customers.

Source of Machinery:

Locally fabricated by Tonet Ltd Kanyanya Gayaza Rd, Tree Shade Ltd, Mwanga II Road Kisenyi Kampala and can also be sourced from China and India. Raw materials are locally available.

Government Incentives:

U.I.A provides guidelines on investment, government incentives, taxes and security matters.

 






 
 

 

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