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STARTINGNA HORN BUTTONS BUSINESS IN UGANDA

By: wmutenza0 comments

Introduction:

This involves production and marketing of horn buttons. A button is a small disc, typically round object usually attached to an article of clothing in order to secure an opening, or for ornamentation. Functional buttons work by slipping the button through a fabric or thread loop, or by sliding the button through a reinforced slit called a buttonhole. Horn buttons are made from cow and buffalo hooves and horns. Their market structure is relatively high since most clothes and some bags need horn buttons as fasteners.

Production Capacity

The business idea is premised on three hundred and twelve working days and single shift of 8 hours per day. The unit is designed to have production of 100 kilograms of horn buttons per day translating into an annual production of 31,200 Kilograms. The revenue potential is estimated at US$2,600 per month, translating into US$31,200 per year with a net profit margin of 16% and total investment requirement is US$11,807 for the first year of business Operation. The business idea’s payback period is 3 years.

Technology and Process Description

Horn button making involves use of plant and machinery like Circular Saw, Band Saw, Boring Machine, Hole Drilling machine, Circular Designing Machine, Buffing Polishing Lathes, Polishing Drums, Belt Sander, Double Ended tool grinder, Metal Turning Lathe and Filter Tools. Production process involves cutting of horns, boring, hole drilling, designing, buffing, polishing and packing.

Capital Investment Requirements

Capital Investment Item Units Qty @ Amount
Circular Steel saw No 1 150 150
Band saws No 2 125 250
Boring machine No 4 100 400
Buffing polishing lathe No 2 150 300
Hole drilling machine No 3 250 750
Circular designing machine No 4 250 1,000
Polishing drums No 2 150 300
Belt Sanders No 2 125 250
Double ended tool grinder No 1 400 400
Metal turning lathe No 1 357 357
Filter tools Set 6 25 150
Delivery Van No 1 7,500 7,500
Total       11,807

Production and Operating Costs
Direct Materials, Supplies and Costs in US$

Cost Item Units @ Qty/ day Pdn cost/ day Pdn cost/ month Pdn cost/ year
Direct Costs            
Animal Horns No 0.5 50 25 650 7,800
Colour/Dye kg 1.5 5 7.5 195 2,340
Packing materials No 0.05 100 5 130 1,560
Sub-total     155 37.5 975 11,700

General Costs(Overheads)

Rent 100 1,200
Labour 500 6,000
Utilities 120 1,440
Preliminary Costs 150 1,800
Miscellaneous Costs 100 1,200
Depreciation(Asset write off)Exp 246 2,952
Sub-total 1,216 14,592
Total Operating Costs 2,191 26,292
  1. Production costs assumed are for 312 days per year with a daily capacity of 100 Kilograms of Horn Buttons.
  2. Depreciation (fixed asset write off) assumes _4_ years life of assets written off at _25% per year for all assets.
  3. Direct Costs include materials, supplies and other costs that directly go into production of the product.
  4. A production month is assumed to have 26 work days.
  5. Colours/Dyes can be purchased in different colours

 

Project Product Costs and Price Structure

Item Qty/ day Qty/ Yr @ Pdn cost/Yr UPx T/rev
Horn Buttons 100 31,200 0.8 26,292 1 31,200

Profitability Analysis in US$

Profitability Item Per day Per Month Per Yr
Revenue 100 2,600 31,200
Less: Production and Operating Costs 84 2,191 26,292
Profit 16 409 4,908

Market Analysis

The market for horn buttons is readily available with designers, dress makers and tailors etc clothes manufacturing industries.

Source of supply of Machinery, Equipment and Raw Materials

Machinery and Equipments are bought locally in hardware shops while raw materials are also got locally.

Government Facilities and Incentives Available:

Government has encouraged Associations like Uganda Manufacturers Association which is the mouth piece for all Industrialists. Other organizations like Uganda Investment Authority and Private Sector Foundation Uganda are in place to give support to those with investment ventures.

 

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