This is about making jewellery such as rings, brooches, chains, and bracelets by cutting, shaping and polishing the material for producing fashion jewels. Jewellery is used by women mostly though late men have started using it. This business idea aims at the production of 100 pieces of jewellery per day thus 24,000 pieces annually. The revenue potential is estimated at NGN 12,000,000 ($31,579) and the total investment is estimated at NGN 142,200 ($374.2) in the first year of Project operation. The net profit margin is estimated at 39%. 

 

Production Process 

It involves collecting, designing, and decorating beads, horns, metals, stones, shells and joining them with threads and strings. 

 

The scale of Investment Capital (CBN Exchange rate – $1 to NGN 380) as of 22nd of April, 2021)

Investment Requirements

Capital Item  Units  Qty  Price Per one NGN Amount NGN Amount $
Working Table 4 10,000 40,000 105.3
Scissors 3 1500 4,500 11.8
Brushes Sets 3 5000 15,000 39.5
Needles Sets 5 4000 20,000 52.6
Other Equipment 1 62,700 62,700 380
Total 142,200 374.2

 

Production and Operation Costs

Cost Item Units Unit Cost NGN Oty/Day Pdn Cost/Day NGN Pdn Cost/Mth NGN Pdn Cost/Year NGN Pdn Cost/Year USD
Direct Costs:
Beads Kgs 200 2 400 8,000 96,000 252.6
Shells Kgs 100 5 500 10,000 120,000 315.8
Stones Kgs 100 3 300 6,000 72,000 189.5
Horns 200 3 600 12,000 144,000 378.9
Sand Paper 200 1 200 4,000 48,000 126.3
Strings Mtr 100 7 700 14,000 168,000 442.1
Metals 100 7 700 14,000 168,000 442.1
Sub-Total 68,000 816,000 2,147.4

 

General costs (Overheads) 

Cost Per Month NGN Cost PerYear NGN Cost PerYear USD
Salaries and Wages 32,000 384,000 1,011
Utilities 2,000 24,000 63.2
Selling and Distribution 30,000 360,000 947.4
Administrative Expenses 20,000 240,000 686
Rent 3,500 42,000 111
Depreciation (Asset Write off Expenses) 10,000 120,000 316
Sub-Total 97,500 1,170,000 3,097
Total Operating Costs 165,500 1,986,000 5,226.3

 

Production is assumed for 240 days per year. 

Depreciation assumes a 4-year life of assets written off at 25% per year for all assets. 

A production Month is assumed to have 20 days. 

 

Project Product Costs and Price Structure

Item Qty/Day Oty/Yr Unit Price TR/YR NGN Total Revenue(USD)
Bead Jewelry 50 12,000 500 6,000,000 15,790
Metal Jewelry 25 6,000 500 3,000,000 7,895
Shell Jewelry 25 6,000 500 3,000,000 7,895
Total 100 24,000 12,000,000 31,579

 

Profitability Analysis Table

Profitability Item  Revenue Per Year Revenue Per Year USD
Revenue 12,000,000 31,579
Less Prod & Operating Cost 2,802,000 7,374
Profit 9,198,000 24,205

 

Market 

The market for jewels is constant throughout the year and could include the following; beauty shops, market places, street vending places, workplaces, homesteads, salons and tourist places. 

 

Suppliers of Materials and Equipment 

All the materials and equipment can be sourced locally and are readily available since this does not require sophisticated technology.