This business idea revolves around the production of cleaning powder, which is essential for maintaining cleanliness in households, hotels, canteens, and commercial organizations. Cleaning powder is widely used for cleaning stainless steel utensils, glassware, ceramic ware, and flooring. With an estimated annual production target of 15,600 kilograms, this venture has the potential to generate a revenue of $255,840 per year, with a net profit margin of 19% and a payback period of 4 months. The total capital investment required for this project is $9,250.
Production Process
The production process involves mixing soda ash and acid slurry in the required proportion and allowing it to sit for an hour. Afterward, this mixture is blended with calcite powder, fragrance, and finely ground to create a high-quality cleaning powder. The final product is then packed for marketing, ensuring convenience for consumers.
General Costs (Overheads)
To understand the financial viability of the business, it is crucial to consider general costs and overheads. Production is assumed to occur for 312 days per year, with depreciation calculated based on a 4-year write-off period at a rate of 25% per year for all assets. A production month is estimated to have 26 days.
Sources of Supply of Equipment
All the required equipment for producing cleaning powder can be obtained in Kenya, ensuring easy access and availability.
Conclusion
Investing in the production of cleaning powder in Kenya presents a profitable opportunity to cater to the increasing demand for effective cleaning products. With the right combination of ingredients and equipment, entrepreneurs can create high-quality cleaning powder that meets the needs of households, hotels, and commercial establishments. By providing a reliable and efficient cleaning solution, entrepreneurs can contribute to maintaining cleanliness and hygiene standards in Kenya.