HOW TO START A JEWELLERY MAKING BUSINESS

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.