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.
