Program-minimum is intended for the entrepreneurs who possess not very large primary capital (300-350 thousand roubles) or who check this business direction.
We propose to produce 5 collections of decorative stone and 5 collections of paving materials based on the program-minimum.
Expenses for the workshop equipment for manufacturing Kevlar concrete items, the daily norm is 100 sq.m.
| No | Designation | Quantity | Price | Amount |
| 1 | Concrete mixing machine | 1 | 470 | 470 |
| 2 | Scales 100 kg | 1 | 200 | 200 |
| 3 | Scales 10 kg | 1 | 100 | 100 |
| 4 | Vibration table | 1 | 370 | 370 |
| 5 | Square-faced shovel | 4 | 5 | 20 |
| 6 | Plastic bucket 7 l | 6 | 2 | 12 |
| 7 | Dipper | 4 | 1,5 | 6 |
| 8 | Gloves | 10 | 0,4 | 4 |
| 9 | Measuring glass | 2 | 2,5 | 5 |
| 10 | Electric drill with an attachment | 1 | 50 | 50 |
| 11 | A water container | 2 | 5 | 10 |
| 12 | Plastic bucket 10-15 l. | 4 | 3,5 | 14 |
| 13 | An extension cord 10-15 m. | 2 | 8,5 | 16 |
| 14 | Plastic glasses for a colorant | 30 | 0,1 | 3 |
| 15 | PVC film 120 micron | 100 sq. m. | 0,25 | 25 |
| 16 | Chipboard (racks) | 72 sq.m. | 2,5 | 180 |
| Total: | 1 480$ | |||
| 17 | Forms | 100 sq.m. | 25 | 2 500 |
| Process package | 1 000 | |||
| Total: | 4 980$ | |||
Additional payment for interpreter services 100 $
Forms for decorative stone and paving materials production
| Designation of forms and photo of the stone | Plastic thickness, mm | Price per 1 sqm, USD | Quantity, sqm | Amount, USD | ||
|
2,0 | 22,00 | 10 | 220,00 | ||
|
2,0 | 22,00 | 10 | 220,00 | ||
|
2,0 | 22,00 | 10 | 220,00 | ||
|
2,0 | 25,50 | 10 | 255,00 | ||
|
2,0 | 24,00 | 10 | 240,00 | ||
|
2,0 | 25,50 | 10 | 255,00 | ||
|
2,0 | 24,00 | 10 | 240,00 | ||
|
2,0 | 24,20 | 10 | 242,00 | ||
|
2,0 | 22,00 | 10 | 220,00 | ||
|
2,0 | 22,00 | 10 | 220,00 | ||
| Total: | 100,0 | 2 332,00 $ | ||||
Calculation of the monthly norm of the plant profit
In order to calculate we should take 5 collections of decorative stone and 5 collections of paving materials. If you have 10 sq. m. of the forms it is possible to produce 220 sq. m. of every collection of stone per month.
The table of the net cost of the product and the sales amounts:
| No | Product designation | Net cost as per ïî raw material, USD/sqm (*) | Monthly norm of production, sqm | Net cost as per raw material of the monthly scope of production, USD | Sale price, USD/sqm (**) | Sales amount per a month, USD |
| 1 | «France» | 0,84 | 220,0 | 184,80 | 12,00 | 2 640,00 |
| 2 | «Shale No1» | 0,93 | 220,0 | 204,60 | 12,00 | 2 640,00 |
| 3 | «Leningrad stone» | 1,15 | 220,0 | 253,00 | 12,00 | 2 640,00 |
| 4 | «Valaam stone No1» | 1,07 | 220,0 | 235,40 | 12,00 | 2 640,00 |
| 5 | «Surgut besser» | 1,50 | 220,0 | 330,00 | 12,00 | 2 640,00 |
| 6 | «Puzzles» | 2,46 | 220,0 | 541,20 | 11,00 | 2 420,00 |
| 7 | «Stone rose» | 2,60 | 220,0 | 572,00 | 11,00 | 2 420,00 |
| 8 | «Cobblestone bridge No2» | 2,17 | 220,0 | 477,40 | 11,00 | 2 420,00 |
| 9 | «Pebble» | 1,82 | 220,0 | 400,40 | 11,00 | 2 420,00 |
| 10 | «California glassy» | 1,82 | 220,0 | 400,40 | 11,00 | 2 420,00 |
| TOTAL: | 2 200,0 | 3 599,20 | 25 300,00 |
* - net cost of 1 sq. m. of stone has been calculated based on the prices for raw material in N. Novgorod in the 2nd six months of year 2008;
** - prices at which the products are sold in N. Novgorod in the 2nd six months of year 2008.
Expenses for production of 2 200 sq. m. of decorative stone and paving materials:
| No | Type of expenses | Amount, USD |
| 1 | Raw material (taking into account the delivery) | 3 599,20 |
| 2 | Rent of the production and administrative areas | 835,00 |
| 3 | Electric power, including lighting (1760 kW) | 83,00 |
| 4 | Wear and tear of the forms (*) | 18,50 |
| 5 | Wear and tear of the equipment (**) | 29,90 |
| 6 | Salary of the personnel (***) | 750,00 |
| 7 | Salary of the administration | 500,00 |
| 8 | Advertisement | 335,00 |
| 9 | Taxes (****) | 1474,00 |
| Total: | 7 624,60 |
* - the calculation has been carried out based on the fact that the forms can serve for 300 of outputs. The calculation does not include the expenses connected with the delivery of the forms. The last depend on the type of delivery (by mail, by car, by railway or by air – transport) and the distance from N. Novgorod to the destination. When calculating the cost of the delivery it is necessary to take into account that 1 sq. m. of the forms weighs 3-6 kg.
** - wear and tear of the equipment taking into account the complete wear-out within 3 years (53 000:36).
*** - salary of three workers on the production site.
**** - when the simplified taxation system the tax makes 6% from the volume.
Pure profit of the enterprise per a month (excluding all expenses) makes:
25 300,00 - 7 624,60 = 17 675,40 $
Pay-back period of the production makes 1 month.
Expenses for the production arrangement make 4 980,00 $
Month profit minus the expenses for production: 17 675,40 - 4 980,00 = 12 695,40 $
The pay-back period for investments into the production makes less than 1 month.
Profitability of the production makes (25 300,00 : 7 624,60) * 100 = 331,82%
Remarks:
- The approximate calculation of feasibility study is based on the stone collections in the provided type of painting selected by us. (The stones chosen are most-in-demand in different spheres of use - facade, wall base, columns, fire places, interior, fences, pavement).
- The Client has the right to choose the collections of the forms and their number on his own (but min. 10 sq. m. of each type).
- The calculation of the profitability is based on the condition of producing and selling 2200 sqm. per a month.
- The norms of production can be increased by means of transfer to 2 or 3-shift work, which will also lead to reducing the payback period and increase of the enterprise’s profit.
- Min. 37 types of painting are available for each stone collection; this allows to make variable the range of the items produced.
