2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
Mini-factories for small businesses have become very popular today. The use of such plants is due to the possibility of significant cost savings in comparison with medium and large enterprises. In addition, relatively small investments significantly expand the circle of those who want to test themselves in
entrepreneurship.
In order to open a mini-factory, there is no need to register a legal entity, it is enough to be an individual entrepreneur. As practice shows, to reduce start-up costs, you can first start production, and after a while draw up business documents.
The amount of investment in mini-factories for small businesses depends on the sector of the economy and on what products you plan to manufacture. As an option, I want to visually paint the manufacture of cinder blocks with the help of a small enterprise.
Why cinder blocks? Because it is the easiest product to make and is very cheap in terms of cost.
Financial part of the business plan
To start a cinder block business you need the following basics
funds:
- room with a platform for the manufacture and storage of products;
- consumables (cement, sand, screenings, gravel);
- actually, the mini-factory itself (vibropress, concrete mixer, molds, etc.).
The cost of such equipment depends on its capacity. On average, to start, it will be enough to invest about 4,000 US dollars in a cinder block mini-factory, of which the vibropress itself costs 3,000 US dollars, the rest is the cost of additional equipment.
The average margin for cinder blocks is 70 percent. Their cost depends on what material they are made of and for what purpose they are intended (for foundation, construction). In the case of the given example, the productivity of the mini-factory is about 20,000 blocks per month. If you take an average markup of $0.2 (this is the minimum), then you can earn about $4,000 in gross income per month. Minus the cost of taxes, as well as the payment of wages and other indirect costs, we get a net profit of $ 2,500.
We can safely say that mini-factories for small businesses are highly profitable enterprises. They are able to return the value of the investment in just a few months of operation.
The indisputable advantage of such industries is the ease of managing them. There is no need to use a highly skilled and therefore expensive labor force. If something is out of order, then finding a spare part for such plants is not difficult.
Small investments make it possible to try different directions in business, and if the business "does not work", you can always sell the company. After all, there are different situations in which the company did not bring income: you work with the wrong product, you started at the wrong time, and so on. Mini-plants for small businesses are characterized by significant market demand, so a buyer for such equipment will quickly be found.
Become the owner of a small profitable plant, and over time anyone can earn significant capital, but you need to have the desire.
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