It is a known fact that entrepreneurs can be made. However, some would-be entrepreneurs lack the best business ideas to implement despite the fact that they have the money. In this article, we list 30 lucrative business ideas that you can embark on in 2018 so as to become a future billionaire. These ideas are highly recommended by the Uganda Investment Authority.
MAKING TOMATO SAUCE & PASTE
Tomatoes are used for various culinary preparations and are known to improve taste in sauce or salads. They are widely grown in almost all the areas of Uganda. Therefore, they have a high demand throughout the year.
This business idea is premised on production of 30,004 tons per month which translates into 360,048 packed tins per year. The revenue potential is estimated US$342,048 per year with a net profit margin of 64% and a payback period of 4 months.
This business idea involves preparing different kinds of foodstuffs. The food is prepared and served to people at their work places. The various local dishes prepared include: Matooke, groundnuts, beef stew, rice, sweet potatoes, beans, cassava, peas chicken and greens.
The business risk involved is healthy and safety related risks surrounding the manufacturing and processing. The business idea is premised on production of 130 plates of food per day which translates into 3,380 plates of food per month and 40,560 plates per year.
The revenue potential is estimated at US $85,800 per year and net profit margin 27%. The market for this business consists of people who are not able to prepare food because of their commitments at their work place.
The food will be vended in different places like workplaces, markets, building sites and bus stages.
GROWING WATER MELONS
This business idea is aimed at growing and marketing of watermelons. The idea is premised on harvesting 12,000 watermelons per quarter which translates into 48,000 watermelons per year. The revenue potential is estimated at USD 7,200 per quarter, which translates into US$ 28,800 per year. The business has a good market demand throughout the year and can provide employment to the youths and women. The Project cost is about US$ 135, with a net profit margin of 84%.
Paint manufacturing involves the mixing of different chemicals at different sequences and at specified durations for them to set and form a thick and, or sticky solution that is used to coat structure surfaces when applied to give them a decorated look of the desired colours.
The mixing is done by a trained person with acumen in that field. This industry product is on high demand since the construction sector is growing very fast and booming.
The capital outlay is a bit stretched but the return on investment justifies it.
The project requires an estimated fixed capital of US$ 14,544 and operating costs of US$ 491,765 generating revenue of US$ 698,880 in the first year of operation.
MANUFACTURING MOSQUITO REPELLANT CREAM
This idea is for producing cream that drives mosquitoes away from whoever applies the product. Mosquitoes are a menace to human race as they transmit malaria parasites through their bite.
They must therefore be kept at bay. This can be successfully done by applying a repellent cream which keeps them at bay.
The cream is applied on the exposed parts of the body e.g. the face and neck; the legs, the hands, and it remains effective for about 10 hours.
The project requires an estimated fixed capital of US$ 629 and total operating costs of US$84,566 generating revenue of US$126,000 in the first year of operation with a net profit margin of 33%.
This business idea is aimed at setting up a Chicken Hatchery. It is premised on hatching eggs for layers and broilers for both local and hybrid birds. The business will be hatching 38,000 chicks per month, which translates into 456,000 chicks per year.
The revenue potential is estimated at US$ 45,805 per month, which translates into US$ 549,657 per year. The business has a good market demand throughout the year and can provide employment to youth and women. The project initial total cost is US$ 19,500 with a net profit margin of 88% with a payback period of 3 years and 5 months.
Grains are agricultural products that have a very high demand in the country. They usually include: Simsim, ground nuts, soy beans, maize, popcorns, beans and cow peas.
The project idea is based on adding value by packaging good quality grains and selling them at relatively low prices. The project expects to package 72,000 kgs of assorted grains per annum. Initial investment costs are estimated at US$20,370 generating revenue of US$92,695 at a net profit margin of 43% and payback period of approximately 2 years.
LOCAL HENS FOR EGGS
This business idea is for rearing of local hens for production of eggs. A hen is a domestic fowl bred for eggs or meat. This business idea is viable because you can get eggs, meat, hatch more chicks, which can also be sold at your wish. The business risk involved is diseases like coccidiosis; the solution is proper management and control of the business.
This business idea aims at production of 30,000 trays of eggs annually and 3,000 off layers per year. The revenue potential is estimated at US $ 135,000 annually. The initial capital investment cost for the project is US $ 995. The first three months demand a lot of investment yet returns are not realized. This idea needs a lot of patience.
MAKING SHOE POLISH
It is usually a waxy paste or creams used to polish, shine, and water proof or improve and restore the appearance of leather and footwear products. It is used in both liquid and semi solid form. Shoe polish is not only used on footwear but can also be applied to all leather materials including bags, etc. The most prominent type of shoe polish, Kiwi, is imported and this gives local producers a chance to start producing shoe polish. Project capacity is 60,000 kgs annually with revenue estimated at US$98,842 per year. The payback period for this idea is 7 months and the net profit margin of 18%.
Leather footwear is a common product in rural and urban areas and shoe-polish is essential to improving the life and appearance of the footwear. If good quality shoe polish is locally produced, buyers cannot be an issue; what matters will be quality.
MANUFACTURING PRINTING INK
Printing ink is one of the most needed products in the printing industry. Most of the printing ink is imported and this gives an opportunity for any new company to explore the untapped section in the industry. This Idea therefore targets a wide market with an estimated fixed capital of US$ 15,020 and operating costs of US$ 377,663 generating revenue of US$ 561,600 in the first year of operation with the net profit margin of 33%. The payback period for the project is three months.
Dairy farming is a class of agricultural, or animal husbandry enterprise, for long-term production of milk, usually from dairy cows but also from goats and sheep, which may be either processed on-site or transported to a dairy factory for processing and eventual retail sale.
It is a lucrative business, which can fetch big profits due to the increasing and ready market for dairy products.
The production capacity is based on the quality and number of animals raised on the farm. However, for 5 Friesian Cows, 100ltrs of milk will be produced as each Dairy Animal is capable of producing 20 Litres of milk per day.
This project will be operated locally on small scale, i.e. 5 Friesian Cows operated on 5 acres of land. The Fixed Capital Investment required to start this project is approximately US$ 73,521, generating a revenue potential of USD 374,400 per annum. The net profit margin is 6% with a payback period of 2 years.
There is a high demand for dairy products in Urban Centers of Uganda especially in schools, hospitals, households, and Dairy processing industry. However, they may also be exported.
TOOTH BRUSH PRODUCTION
This business idea is enables the manufacture and marketing of tooth brushes. Toothbrushes are important for safeguarding teeth and cleaning the accessible surface, which helps prevent tooth decay and maintain dental hygiene and freshness. They have a wide market structure especially in urban areas throughout the year and can be made in different shapes and sizes. The business idea is premised on production of 260,000 toothbrushes per month which translates into 3,120,000 tooth brushes per annum and this is on the basis of 312 working days in a year and 8-hour single work shifts in working day. The revenue potential is estimated at US$528,321per month translating into US$6,240,000 per annum with a net profit margin of 92%. Total investment requirement is US$ 27,027 for the first year of project operation. They have a wide market structure.
PRODUCTION OF SCHOOL BAGS
The idea is premised on production and marketing of 20,800 bags per month which translates into 249,600 bags per year. The revenue potential is estimated at USD 41,600 per month which translates into USD 499,200 per year. The business has a good market demand throughout the year especially at the beginning of term. This kind of investment can cost about US 122,116 in the first trading year.
This business idea is for the production and marketing of biscuits. Biscuits are confectionary products and they refer to small thin products of varying shapes, tastes that are of soft brittle texture.
They are referred to by different names in different countries. The revenue is estimated at US$1,404,000 per year. The payback period is really short i.e. 2 months and net profit for this investment is 92%.
A pencil is a writing implement or art medium constructed of a narrow, solid pigment core inside a protective casing. The case provides an external scaffold to protect the structural integrity of the core, and also prevents the pigment from accidentally staining the hand during use. Pencils are widely used in the country in fields like education, carpentry, and artillery work among others, hence creating a big demand for them. The total scale of investment is estimated at US$12,300 where at least 1,872,000 dozens of pencils will be manufactured in a year and this will generate annual revenue of US $ 505,400 in the first of project operation with a net profit margin of 30%.
MAKING EXERCISE BOOKS
This business idea is for manufacturing and marketing of exercise books. Exercise books are stationary items required for schools, offices and other purposes. Their market structure and demand is high since they are used by all school pupils from primary to senior four. They are sold in stationary shops, markets, whole sale shops, retail shops and even on the streets. Production Capacity Production capacity depends on the quantity of raw materials used in production process. The business idea is based on three hundred working days, single shift of 8hr.per day. The smallest viable unit can produce 2,000 Exercise books of 96 pages per day, translating into 624,000 Exercise books of 96 pages per annum at a sales Price of US$0.25 each. The revenue potential is estimated at US$ 156,000 per month, translating into US$ 1,872,000 per annum and total investment requirement is US$ 71,390 for the first year of project operation.
ANIMAL FEED PLANT
Animal feed plant is a place where their feeds are made. The need for balanced animal feeds forms an essential part of the intensive diary development programme.
What is proposed here, is the setting up of an animal feed manufacturing plant using local products like maize, millet and wheat. The business idea aims at the production of 93,600 kgs of animal feeds per year.
The revenue potential is estimated at US$ 121,680 annually, while the initial capital investment required is US$7,150. The payback pay period for this project is approximately 6 months with a net profit margin of 50%.
With agricultural modernization and diversification, there is a good future and solid potential for growth. Thus, market for animal feeds is guaranteed except the need for sensitization of the local population on the benefits of using animal feed visa vie natural grass and plants.
A serviette is a small piece of table linen that is used to wipe the mouth and to cover the lap in order to protect clothing when eating. Made out of light absorbent material, napkins are soft to absorb sweat and clean the mouth. The market is constituted by individual consumers, hospitals, restaurants, homes and hotels among others. The business idea aims at production of 2,600 packets of serviettes per month which translates into 31,200 packets annually. The revenue potential is estimated at 11,180 dollars per month, translating into 134,160 dollars per year. The total capital investment for the project is 3,635 dollars. The net profit margin is estimated at 29% with a payback period of 3 months. The Market cuts across Individual consumers, hospitals, restaurants, homes and hotels among others. However, there are many competitors thus the need for exploiting the export market.
MANUFACTURING LEATHER BELTS
This business idea is for production and marketing of leather belts. Real leather belts are one accessory of apparel made of cowhides or other animal skin. It is a flexible band worn around the waist. A belt supports trousers or other articles of apparel and it serves for style and decoration. Their market structure is high since they are of good quality and they are used by almost all people with trousers and others. The business idea is premised on three hundred working days single shift of 8 hours per day the unit is designed to have production of 1,000 belts per day which translates into 312,000 leather belts per year. The revenue potential is estimated at US$197,600 per month translation into US$2,371,200 per year with a sales margin of 27% with total capital investment requirement of US$67,660 and operational cost of 1,868,893 for the first year of project Operation.
BEE KEEPING (APICULTURE)
This business idea is for keeping bees for production of honey and bee wax. The Revenue potential is estimated at US$ 10,400 per year with the project cost of US$ 7,345 and a profit margin of 73%. The expected payback period is 7 month.
There is high demand for honey for home consumption, pharmaceutical use in making drugs and in most instances it has replaced the sugar intake among people with health complications.
ESTABLISHING A WAY-SIDE RESTAURANT
There is high demand for food and beverages in Uganda. Any attempt in establishing a modern restaurant can prove to be a profitable business especially when it’s located in a good area. The establishment of this project requires a total fixed cost of US$16,300, and operating costs of US$ 98676, generating revenue of US$ 242,040 in the first year of operation. The market readily exists as food products are consumed by everybody & combined with outside catering services, the business can be a viable venture.
This business idea is for rearing pigs aimed at production and sale of 360 pigs annually. The revenue potential is estimated at US $ 86,850 per year with a profit margin of 75%. The total capital investment for the project is US $ 11,900 and the payback period is almost 5 months. The business risk involved in this idea is the high rate of infection, which spreads quickly among the animals. However, this can be mitigated by increasing the animal’s resistance e.g. by improving the quality of feeds.
The structure of the pig market is wide throughout the year in butcheries as pork is popular among the public. There are several pork joints in the city and upcountry making demand for pork high.
This is about making jewellery such as rings, brooches, chains, and bracelets by cutting, shaping and polishing the material for producing fashion jewels. Jewellery is used by women mostly though of late men have started using it.
This business idea aims at production of 200 pieces of jewellery per day thus 62,400 pieces annually. The revenue potential is estimated at US $ 62,400 annually and the total investment is estimated at US$ 1,580 in the first year of Project operation. The net profit margin is estimated at 39%.
The market for jewels is constant throughout the year and could include the following; beauty shops, market places, street vending places, work places, homesteads, salons and tourist places.
MAKING BANANA WAFERS
Banana Wafers are a popular snack eaten world over. They are made by cutting bananas into thin slices. This project uses the banana variety commonly known as Matooke in Uganda and is readily available. Wafers can simply be eaten directly or as desserts and puddings. It is a cross cutting venture as it can be undertaken in both rural and urban settings. The project initial cost is US$ 1,318 producing 46,800kgs of banana wafers per year giving estimated revenue of US$ 35,100 annually with a profit margin of 475 and a payback period of about 4 month.
MAKING COTTON T-SHIRTS
This business idea is for production and marketing of cotton t-shirts. Cotton t-shirts are particularly for sports and casual wear.
A good sweat absorbent wear, these garments are soft, tough and wrinkle free. The revenue is estimated at US$ 702,000 per year, and the project cost is estimated at US$ 107,819 inclusive of operating cost in the first year and the revenue potential is US$702,000. The pay period is 3 months at net profit of 87%.
The production capacity per day is 450 t-shirts per day. The risk associated is marketing mix which can be managed by better management and control of the business.
The demand for T-shirts has been increasing as a casual wear especially for sportswear. Apart from domestic demand, the shirts enjoy a lot of demand from the export market.
DRIED OYSTER MUSHROOMS
Mushrooms are a delicacy among members of society, therefore have a high demand. Areas of focus include restaurants, hotels, and supermarket chains.
Oyster mushrooms are a popular exotic mushroom. They have a delicate texture and just a hint of seafood in their flavor. Originally wild harvested, growing from the side of tree trunks, Oyster mushrooms are now widely cultivated.
The total investment requirement is US $9,272per year, with revenue estimates of US$104,832 per year, with a net profit of 7% and a payback period of 9 months.
MAKING INSTANT COFFEE POWDER
Coffee is a household crop in Uganda and a major foreign exchange earner. It is widely produced and many Ugandans take it as a beverage, and world over it is a cherished drink. The demand for coffee as a beverage is on the rise locally and any venture in its production and distribution is viable as it involves adding value to the coffee beans.
This project involves milling coffee beans into desired powder and sold over the counter to a waiting customer. The project requires an estimated fixed capital of US$ 5,300, operating costs of US$ 64,841 generating revenue of US$ 116,064 in the first year of operation. The payback period is 5 months.
ICE CREAM MAKING
Ice cream is a frozen dessert usually made from dairy products such as milk and cream, which are often combined with other ingredients and flavours. Most varieties contain sugar although some are made with other sweeteners. Alternatively, it can be made from milk from soya, rice and goat for those who are lactose intolerant or allergic to dairy products and would like to avoid them. The production capacity is 38,376kg per year yielding revenue of US $107,453per annum from an investment with an initial cost of US $26,600. The project net profit margin is 45% with a payback period of 2 years and 5 months.
FRUIT JUICE CANNING
Fruit Juice Canning is a method of preserving fruit juice sealed in an airtight container, which prevents microorganisms from entering and proliferating inside. The products may include: Canned fruit cocktail consisting of a mixture of fruits, such as; mangoes, tangerine, lemons, apples, and passion fruits. There is an increasing demand for canned fruits as they can be sold in both local and foreign markets.
It is projected that at least 100 Dozens of 300m litres (1,400 ltrs) of canned juice can be produced a day.
The demand for canned juice is very high in super markets, hotels and for export. Foreign markets will constitute about 80% of the total market size.
MAKING POWER INVERTORS
The business idea is for making and marketing of Power Invertors. This business idea is premised on production of 15Invertors per month which translates into 180 Invertors per year.
The revenue potential is estimated at US $ 9,000 per month which translates into US $ 108,000 per year. The project cost is US $ 108,165.
There is an ever-increasing demand for Invertors due to power shortages and interruptions. The market for the invertors is within the country and spreads beyond our borders like Rwanda, Sudan and Congo.