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  • Challenge info, Challenge: 

    BiD Challenge Tanzania 2007

    BiD CHALLENGE TANZANIA 2007 FINAL AWARDS!! FINALLY, THE WINNERS. CONGRATULATIONS !!
 
 
Business start-up: 

MANUFACTURING OF HOME PRODUCTS FROM USED TYRES

MANUFACTURING OF RUBBER TILES, RUBBER FLOOR CARPETS, MATS AND SIMILAR PRODUCTS FROM USED TYRES.

  • home tiles products.jpg

    home tiles products.jpg - 

    rubber floor tiles

Products are rubber tiles, floor carpets and mats from used tyres. Target markets are low income people. The products will contribute to new jobs creation, reduction in costs of solid wastes management in street especially used tyres.
Tiles and carpets will improve living standards by providing clean and modern home hence improvement of health standard. Provision of income to those involved will alleviate the life standard. This business is environmental friendly.

Facts

Year of establishment

2008

Sales (US$)
Two years ago:
Last year:
This year (forecast): 259,200
Year 2 (forecast): 349,200
Year 3 (forecast): 552,000
Net profit after tax (US$)
Two years ago:
Last year:
This year (forecast): 19,089
Year 2 (forecast): -40360
Year 3 (forecast): 6,933
Total number of Employees
Two years ago:
Last year:
This year (forecast): 15
Year 2 (forecast): 19
Year 3 (forecast): 26

Finance needed

Finance needed for fixed assets (buying of machines, buildings, ...) 60,800
Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) 5,000
Total finance needed (US$) 65,800

How do you expect this to be financed?

Own Contribution in cash 20,000
Loans (debt) 133,188
Shares in your company that you offer to investors (equity)
Other sources 8,000
Total finance needed (US$) 161,188

The Business

What is your product/service?

Products description
Rubber tiles are made by shredding used tyres into small granules that are mixed in proportion with sand, binder material and different colour pigment in moulds and after compaction they solidify into a very durable and useful floor tiles.
Rubber floor carpets are made by either shredding the used tyres into chippings that are them bounded together into a sheet form of different sizes making a very useful floor carpets.
Rubber mat are made the same way as carpets but the way to assembles them vary depend on the shape and form of the mats in question.
These products will generate profit in the sense that their raw materials are available at low cost since used tyres are considered to be solid waste which need to be disposed. Also high demands of particular products in the market pose the potential opportunity to make profit since low production costs, good quality and durability are tools to take advantage against other competitors.

How to produce the products
These products will be produced in a small industry with systematic operation and production process from raw material feeding to a new product formulation. The production process will involve shredding machines to cut those used tyres into small granules that will be transferred by conveyor belts into a collection chamber. These granules will be mixed in proportion with sand and binder with different colour pigment. Then they will be cast in moulds of desired sizes. These moulds will be dried in an oven to optimum temperature.
For the case of carpets and mats the shredding of used tyres into different chippings sizes can use similar shredding machine for tiles but for the case of binding together these chippings the binder is used under optimum temperature in the rollers to bind together these chippings into the form of a sheet.
LABOUR
Fifty labourers are required in this production process where twenty are skilled and thirty unskilled labours. Skilled labour should have qualifications in machine production operation, technical skills in trouble shooting and small maintenance.
The targeted market is local and international. In the local market most of geographical area to be covered by these products is Dar es salaam, Morogoro, Moshi, Tanga, Arusha, Mbeya and Mwanza. The targeted group of people are all low income and high income people.
The raw material to be used in the production is all used vehicle tyres of all sizes and they are abundant in yards, garages, and along the town streets as solid wastes and they are available throughout the year. They can be colleted and supplied to the factory by dealers, municipal, and organisations or agents for these purposes.

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

How to market the products to deal with competitors
Potential customer will buy my products since they will be of high quality and durable at low price. Channels of distribution will be from the company store to whole sellers in different region through transportation. The whole sellers will sell them to retailer in hard wares who will sell to end users of the products.
Promotion tools to be used will depend on the region concerned but not limited to press release, sponsoring a civic event and activities, newspapers and radios, billboards and posters.
My competitors are all those who are selling similar products using different raw materials and finishing. To deal with them in order to obtain many customers, the products will be sold at affordable low price compared to those competitors while at the same time maintaining quality, durability and availability.
Hence the product will be available in low price and high quality compared to my competitors. These products are better than those which are available since they are durable, colourful and inexpensive surfacing from old radial tyres. This recycled rubber flooring is as strong and resilient as original tire rubber minus the reinforcing scrim. It's slip-resistant and is ideal for indoor or outdoor uses. Weather resistant, it withstands extreme temperatures, indoor air quality specifications and guidelines. Pigment is added to provide a rainbow of color choices. The surfaces can be sealed and finished to enhance cleaning and maintenance.

What makes your business different/better than your competitors (competitive advantage)?

(20) The uniqueness of my products
My products are unique since apart from them being manufactured from the used wasted tyres, they are environmental friendly since after their use they can be collected and returned to the company to produce new similar products hence a complete cycle which is not experienced in any of other available products.

The Entrepreneur & Management

Describe the entrepreneur & management

My expertise in the product and the targeted region is that the research and publication shows the possibility of exploiting used tyres in the manufacturing of rubber tiles, floor carpets and mats as a successful business opportunity. Testing standards shows that the strength of trial products is above the required limit of qualification and technology used for their production is environmental friendly.
Hence this business can be implemented in all targeted regions from all parts of the country but specifically Dar es salaam and Morogoro. This is due to presence of good infrastructure, raw material and skilled and unskilled labour including markets.
I am new but through market survey and analysis the business plan is strengthened by actual data and real situation on the field.
Experience shows that people who are dealing with manufacturing and selling similar products that are either imported or locally produced are making a huge profit even with low quality products. This can be termed as a business success to them but it is also associated with many failures. The failures were causes mostly by high costs of production compared to total revenue. Availability of raw material, changing in market demand, changing in technology and the most important is management failures.
Lessons obtained from all these is to ensure cheaper sources of raw material, the use of appropriate Technology, fulfilling the customers demands to secure the markets and good management of the business.

Development

How does your business improve the local living standards (social and environmental)?

(31) The development impact of the company
Direct and indirect local employment
Apart from workers that will be employed by the company directly other can be employed directly by being involved in the collection of used tyres that are scattered all over the streets and this will pay to some of the local dwellers who are jobless. Other employment is through selling of the manufactured products in the market areas that hence employment opportunity to people.
Direct and indirect local income
This will offer the direct income to all workers employed by the company and for those who will employ themselves in the raw material collection and transportation will also earn income. Indirect income will result from serving the municipal costs of solid waste management including collection transportation and disposal.
Quality of living standards
Due to the housing by expenditure of the income obtained. This also will raise the motivation to use other solid waste in the manufacturing of useful products resulting into clean street, homes and commercial areas.
Education
This is the field that is involved in the manufacturing of useful products from wastes hence skills and knowledge will be provided to all those who are involved in the process including those who later will come to formulate other similar companies. Due to environmental awareness people are given education on how to achieve products which are environmental friendly without necessarily degrade them.
The impact of this business in the long term in to get rid of all rubber wastes into useful products hence environmental conservation through recycling and reuse and employment opportunity for many people as possible, income generated when this business is involved people can gain access to food, healthy, and qualitable goods

4 comments

Bid Business plan

Serafin Michael, 4 Sept 07, 16:42

Read abot new business to be started

Home products from used tires

Serafin Michael, 4 Sept 07, 16:43

New Business

Home products from used tires

Serafin Michael, 4 Sept 07, 16:43

New Business

Serafin Michael, 4 Sept 07, 16:43
Home products from used tires

NICE AND OK

Serafin Michael, 2 Nov 07, 12:30
Needs