Monday, September 23, 2024

Top small manufacturing business ideas with low starting capital

Top small manufacturing business ideas with low starting capital

The high unemployment rate in Kenya has forced young people to think outside the box and create solutions to stay ahead of the curve.

Entrepreneurship has become popular with young people, with a big chunk opting for clothing and fast food businesses. This is owed to the fact that these businesses are easy to start as they require low starting capital.

Entrepreneurship has become popular with young people, with a big chunk opting for clothing and fast food businesses. This is owed to the fact that these businesses are easy to start as they require low starting capital.

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Mexico is an attractive nearshoring location for manufacturing because of its relatively low costs, but the distance from Kenya may be a deterrent for some. There are, however, thousands of other business ideas that are least explored despite being lucrative and cheap to start that don’t involve moving. This article features some of the best manufacturing ideas to pursue.

There are, however, thousands of business ideas that are least explored despite being lucrative and cheap to start. This article features some of the best manufacturing ideas to pursue.

Candle Making

This is one of the unique and profitable businesses. According to the Cosmetics Kenya Limited Institute, this business is over 100 percent profitable- especially for entrepreneurs eying regional exports to countries like Burundi, Congo, Uganda, and South Sudan-who are the largest consumers of the commodity.

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The raw materials for candle making are cheap and easy to get from many outlets countrywide. You can make various candle types, such as Non-drip, scented, and Colored ones.

To get started, you will need a candle-making machine, wax, wicks (utambi), water, good packaging, and room. The machine is the most costly investment you will require to make in this business as the cheapest costs around Sh20,000.

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Other materials, such as candle wax, wicks, and packaging, will cost you around 6,000, meaning you can start this business with around 30,000.

Wax is normally sold in 25KG boxes. Each box of wax costs around Sh4,500 and can produce up to 1000 candles. This means that if you price each candle at Sh10, you will make Sh10,000 per unit of production.

Food and beverage production

This includes baking snacks like cakes and other wheat products and supplying them to various retail shops in your neighborhood.

You can also start bottling drinking water and supply it to shops and supermarkets.

Handmade Paper Making

The Khaki paper business can be a great business idea for youths and stay-at-home Mums. They are now the most sought-after since the government banned the plastic bags.

No machine or special equipment is required to start this business, especially if you are planning to start on a low budget. A capital of Sh5,000 is enough to buy all the raw materials needed to get started.

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All you need is a ream, glue, different-sized boards (depending on the kg of the paper you are making), and brushes. A ream of Sh3,000 can produce 5,000 bags sold at Sh3 each, giving you a total of Sh15,000.

Leather Goods Manufacturing

Think of leather goods such as wallets, belts, bags, and even footwear. This business, however, requires a lot of research to understand the different types of leather pricing and labor market dynamics.

Custom Furniture Manufacturing

The furniture-making business is a lucrative business that does not require a lot of startup capital. You only need to have the necessary skills and passion.

You can decide to make either beds, couches, dining furniture, or office furniture among others. The quality and beauty of your furniture will attract customers, so you must capitalize on that.

You can start with the most basic tools, such as Claw hammers and screwdrivers. Hand plane, Chisels, Hand saw, Tape measure, Ruler, Pencil, Level, and Drill, among others.

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Pillow Making

With Sh10k, you can make very attractive sofa pillows, throw pillows, or bed pillows and sell them out for good money.

All you need is a tailor who can make them for you at a cheaper price. A pillow cushion from Gikomba goes from around Sh70 to Sh150.

Make sure your pillows are unique and attractive to stand a chance to reap huge profits. You can sell them in your neighborhood, Whatsapp status, or Facebook, Instagram, and TikTok.

Gift Bags Designing and Making

If you are creative, you can start designing gift bags that are beautiful and appealing to buyers. The materials for a few bags are not expensive.

All you need is the tutorials, which you will get on YouTube. Social media is the best place to sell your products, but you can also reach out to individual businesses and offer to supply them with gift bags.

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