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.
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$11,807 for the first year of business Operation. The business idea’s payback period is 3 years.
Technology and Process Description
Horn button making involves use of plant and machinery like Circular Saw, Band Saw, Boring Machine, Hole Drilling machine, Circular Designing Machine, Buffing Polishing Lathes, Polishing Drums, Belt Sander, Double Ended tool grinder, Metal Turning Lathe and Filter Tools. Production process involves cutting of horns, boring, hole drilling, designing, buffing, polishing and packing.
Capital Investment Requirements
|Capital Investment Item||Units||Qty||@||Amount|
|Circular Steel saw||No||1||150||150|
|Buffing polishing lathe||No||2||150||300|
|Hole drilling machine||No||3||250||750|
|Circular designing machine||No||4||250||1,000|
|Double ended tool grinder||No||1||400||400|
|Metal turning lathe||No||1||357||357|
Production and Operating Costs
Direct Materials, Supplies and Costs in US$
|Cost Item||Units||@||Qty/ day||Pdn cost/ day||Pdn cost/ month||Pdn cost/ year|
|Depreciation(Asset write off)Exp||246||2,952|
|Total Operating Costs||2,191||26,292|
- Production costs assumed are for 312 days per year with a daily capacity of 100 Kilograms of Horn Buttons.
- Depreciation (fixed asset 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.
- A production month is assumed to have 26 work days.
- 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|
Profitability Analysis in US$
|Profitability Item||Per day||Per Month||Per Yr|
|Less: Production and Operating Costs||84||2,191||26,292|
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.