Compound designing is an upcoming lucrative business in this era. Many developers are now interested in having well designed compounds that are be- fitting to their modern homesteads. This can be done for Universities, homes, Schools recreation centers, hospitals, camping sites, estates, hotels etc. and it is on very big demand and is highly marketable. Project cost is US$ 21,864 collecting revenue of US$49,920 annually form 312 compounds done per year.

The project is estimated to yield a net profit margin of 56% and the payback period of 1year 9 month. Processes, Capacity and Technologies The process starts as the premises near completion or when civil works are in the final stages. Leveling of the compound commences, black soil is mixed with composite and planting of grass, flower, trees, hedges etc. follows.

Pavements, pavers and any arches are all put in place. Constant irrigation or watering is done to speed up growth. The placing of lights are identified and if procured are fixed.


Capital Investment Requirement in US $

Item Units Qty Cost Total
Cutters/ mowers No 5 1,200 6,000
slashers No 5 5 25
Hoes ,level, dustbin, rake Spade No 1 130 130
Motor bikes No 2 1,100 2,200
scissor No 5 15 75
Horse pipes No 5 40 200
carrier basin No 5 2 10
tape measures No 5 10 50
watering cans No 5 20 100
wheelbarrow No 5 100 500
TC of Machinery & Tools 9,290
  1. Production costs assumed are for 312 days per year with daily capacity of 1 compound. 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 work days. 5. Currency used is US Dollars.

Production and Operating costs in US$ (a) Direct materials, supplies and costs

Cost Item Units @ Qty Pdn cost Pdn cost Pdn cost/yr
/day /day /mth
Direct Costs
String (blade) Meter 1.5 3 4.5 117 1404
Fuel Litres 1.8 20 36 936 11232
Subtotal 41 1053 12636
General Costs (Overheads)
Labour 350 4200
Selling & distribution 150 1800
Utilities (Water, power) 20 240
Rent 40 480
Miscellaneous expenses 30 360
Depreciation 194 2323
Subtotal 769 9403
Total Operating Costs 1,822 22039


Project service costs and Price structure in

Service Comps Design /day Design comp/yr Comp design cost Comp design cost/yr Comp design Price TR
designing 2 624 57 17,815 80 49,920

Profitability Analysis in US$

Profitability Item Per day Per month Per year
Revenue 160 4,160 49,920
Less: Production and operating costs 70 1,822 21,864
Profit 90 2,338 28,056

Marketing Compound designing is a new development that has come up with modernization that is sweeping society. It eventually includes the maintenance and the demand is immense. The market potential includes: the affluent, Institutions and recreation centers among others. This is a lucrative business venture. Source of Equipment and Materials The equipment and materials can all be sourced locally and at relatively cheaper rates.

Tonet Ltd, Kanyanya Gayaza Rd, John Lugendo & co Ltd NdeebaMasaka Rd, email lugendojohn07@yahoo.comcan fabricate machines. Government Incentives Deductible annual allowances on all locomotives, equipment and machinery

John Doe
John Doe

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Hi, jenny Loral
Hi, jenny Loral

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