Nail polish is a popular cosmetic product used by most women in Kenya, with a market presence in both rural and urban areas of the country. This business idea focuses on manufacturing nail polish using a simple technology, with an estimated fixed capital of $4,850 and operating costs of $175,817. The aim is to produce 11,856 liters of nail polish, generating $330,439 in revenue in the first year of operation.
Production Capacity, Technology, and Process
While the production technology for nail polish can be complex, a homemade version can be manufactured using simpler techniques. The primary film former, nitrocellulose, is mixed with a shimmer or metallic pearl to create different shades. However, it is important to test the quality by applying it to the nails before final production.
Investment Scale, Capital Requirements, and Equipment
The investment scale and capital requirements depend on the project objectives the entrepreneur sets. The equipment needed for nail polish manufacturing can vary based on the production scale and complexity of the desired products.
General Costs (Overheads)
To evaluate the financial aspects of the business, it is crucial to consider general costs and overheads. Production costs are calculated for 312 days per year, with a daily production capacity of 38 liters of nail polish. Depreciation is assumed based on a 4-year write-off period at a rate of 25% per year for all assets. Direct costs include materials, supplies, and other expenses directly related to production. The total monthly working days are assumed to be 26.
Market Analysis
The market for cosmetics, including nail polish, is readily available throughout the country. To ensure successful implementation, it is recommended to distribute products to supermarkets, salons, and cosmetic shops, as these channels can significantly increase sales and reach a wide customer base.
Conclusion
Investing in the manufacturing of nail polish in Kenya presents a lucrative opportunity to cater to women’s beauty needs across the country. By using simple technology and offering a variety of shades, entrepreneurs can tap into the growing market for cosmetics. With proper distribution channels and a focus on quality, the nail polish business can thrive and contribute to the beauty industry in Kenya.
