Introduction
This business idea is for the production and marketing of toothpowder. Tooth powder is healthy for teeth and gums and will leave your mouth feeling super clean and your breath smelling good. Toothpaste simply adds binder agents and water, turning the powder into a paste that has a cleaner feeling and more easily coats the teeth. The TR is estimated at US$62,400per year with a net profit of 51% and a payback period of 2 years and 5 months. The total investment cost of US$15,555per year.
Production Process
Combine three tablespoons of baking soda, one tablespoon salt, and four drops of clove oil in glass or metal bowl. Use a spoon to mix well, mashing mixture against the sides of the bowl to ensure that oil is well distributed. To use powder, place a teaspoonful in the palm of your hand and pick up with a moistened toothbrush and Store powder in small, air-tight jar.
Capital investment requirements USD
| Capital investment item | Units | Qty | @ | Amount |
|---|---|---|---|---|
| Distillation unit | no | 1 | 620 | 620 |
| Toothpaste filling machine | no | 1 | 1,275 | 1275 |
| Baby boiler | no | 1 | 2,295 | 2295 |
| Grinder | no | 1 | 120 | 120 |
| Crimping machine with hand operated | no | 1 | 945 | 945 |
| Van | no | 1 | 9,000 | 9000 |
| Drier | no | 1 | 1,300 | 1300 |
| Total cost on machinery | 15,555 |
Production and Operating Costs Direct Materials, Supplies and Costs
| Cost Item | Units | @/ day | Qty/ day | Pdn cost / day | Pdn cost/ month | Pdn cost year |
|---|---|---|---|---|---|---|
| Baking soda | kg | 1.5 | 5 | 7.5 | 195 | 2,340 |
| Table salt | kg | 0.8 | 2 | 1.6 | 41.6 | 499 |
| Clove oil | ltrs | 2.5 | 3 | 7.5 | 195 | 2,340 |
| Sub-total | 10 | 16.6 | 431.6 | 5,179 |
General costs(overheads)
| Utilities(water and power) | 150 | 1,800 |
|---|---|---|
| Labour | 813 | 9,756 |
| Rent | 150 | 1,800 |
| Miscellaneous costs | 50 | 600 |
| Distribution costs | 650 | 7,800 |
| Depreciation (Asset write off) Expenses | 324 | 3,889 |
| Sub -total | 2,137 | 25,645 |
| Total Operating Costs | 2,569 | 30,824 |
Production costs assumed 312 days per year with a daily capacity of 500 tins of tooth powder. Depreciation (fixed assets 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.
Project product Cost and Price Structure
| Item | Qty / day | Qty /yr | @ | Pdn / yr | UPx | TR |
|---|---|---|---|---|---|---|
| Tooth powder | 500 | 156,000 | 0.2 | 30,824 | 0.4 | 62,400 |
Profitably Analysis in US$
| Profitability Item | Per day | Per month | Per Year |
|---|---|---|---|
| Revenue | 200 | 5,200 | 62,400 |
| Less production & operating Costs | 99 | 2,569 | 30,824 |
| Profit | 101 | 2,631 | 31,576 |
Market Analysis
Tooth powder is used in our daily life irrespective of age group. Dental care awareness is increasing all the people’s demand for the paste and powder including the rural masses. As a result, it has a good growing market. It can be supplied to supermarket chains, retail/grocery shops and clinics. This product is stocked almost in all shops throughout the country.
Source of Raw Materials and Equipment
Raw materials and equipments are locally available on market
Government Facilities and Incentives
Government is encouraging small scale businesses and income generating activities to eradicate poverty and create employment.
