This business idea is aimed at setting up a Barber’s shop. The idea is premised on making different hair styles and hair cuts for both males and females. The business has a good market demand due to the changing fashion of hair trends among Ugandans especially the youths.
The revenue potential is estimated at US$ 2,273 per month which translates into US$ 27,273 per year. The project cost is US$ 11,582.
Depending on the customer’s desired style or service being sought for.
The business has a great market demand in both rural and urban areas throughout the year and a higher demand during festive seasons. The major players in this sector include; LA’ Saloon, Exotic Saloon Kamyokya, Delight Saloon, among others.
Capital Investment Requirements in US Dollars
|Item Unit||Qty||Unit Cost||Total|
|Wall Styling mirrors||No.||3||18||53|
|Total cost of Machinery||673|
Production and Operating Costs In US$ Direct Materials, Supplies and Costs
Cost/ Qty/d Cost Item Units day ay
|Prod. cost/ day|| Prod. Cost/ mont
|Prod. Cost/ year|
|General costs (Overheads)|
|Depreciation (Assets write off) Expenses||12||139|
|Total Operating costs||909||10,909|
Production costs assumed are for 312 days per year with a daily capacity of 30 Customers.
Depreciation is charged on electrical equipment and furniture and assumes 2 years’ life of assets write off at 25% per year for all assets.
Direct costs include: materials, supplies and other costs that directly go into production of the product.
Product Cost and Price Structure In US$
| Prod. Cost
|Unit price||Total revenue|
Profitability Analysis In US$
|Profitability item||per day||per month||per year|
|Less Prod & Operating Costs||35||909||10,909|
Source of Supply of Equipment and Raw materials
All these equipment and Raw materials can be purchased from the local market.
The Government is encouraging the setting up of Small Scale businesses through empowerment in form of Grants.
Research was done by Business Synergies for Uganda Investment Authority SME Department.