Today, mini-factories for small businesses have gained great popularity. The use of such plants is due to the possibility of significant cash 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 some time, draw up business documents.
The size of investments in mini-factories for small businesses depends on the industry and on what products you plan to produce. As an option, I want to visualize the production of cinder blocks using a small enterprise.
Why cinder blocks? Because it is the most simple product to manufacture, very cheap in terms of cost.
The financial part of the business plan
To start a business for the production of cinder blocks, the following basic
facilities:
- a room with a platform for the manufacture and storage of products;
- consumables (cement, sand, screenings, gravel);
- in fact, the mini-factory itself (vibrating press, 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 in a cinder block mini-plant, of which the vibrating press itself costs $ 3,000, the rest is the cost of additional equipment.
The average mark-up on cinder blocks is 70 percent. Their prime cost depends on what material they are made of and for what purposes they are intended (for foundation, construction). In the case of the above example, the productivity of the mini-plant is about 20,000 blocks per month. If you take the average margin of $ 0.2 (this is the minimum), then you can earn about $ 4,000 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 cost of investment for several months of work.
The indisputable advantage of such industries is their ease of management. There is no need to use highly qualified, and therefore expensive labor. If something fails, then finding a spare part for such plants is not difficult.
Small investments make it possible to try different directions in the business, and if the business has not “gone”, you can always sell the company. After all, there are different situations in which the company did not bring income: you are working with the wrong product, at the time, and so on. Mini-factories for small businesses are characterized by significant demand in the market, so quickly there is a buyer for such equipment.
To become the owner of a small profitable plant, and over time, anyone can earn significant capital, but you need to have a desire.