Feasibility study for a blacksmithing workshop project in Saudi Arabia 2023 with costs – platform
Feasibility study for a blacksmithing workshop project in Saudi Arabia 2023. Many people aspire to manage their own project, and it represents a dangerous stage in their lives that may change them for the better or to relapse. Successful projects do not need friendly sessions or blind imitation of some projects, but it requires a pre-studied plan that is subject to many tests to answer the two most important axes in The project is whether it is feasible and whether it is profitable or not. Below is a feasibility study for the blacksmithing project in Saudi Arabia 2023.
Feasibility study for a blacksmithing workshop project in Saudi Arabia 2023
The main axes that fall within the feasibility study include the marketing and technical plan, as well as the executive and financial, and each axis is subject to many basic elements, and despite this, the project owner may make mistakes during his study of the feasibility of the project, the most important of which is the preparation of the feasibility study himself without consulting those with experience Analytical in project management, as well as whether to choose the work team to carry out the tasks and responsibilities incumbent on it, and not to specify the scope of the feasibility study.
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The site of the blacksmithing project in Saudi Arabia
Choosing the right site is an essential element for the success of the business and the increase in the profits of the project, especially since the impact is not related to the loss of the project owner but rather extends to the national economy in general, especially since projects are the leading and basic base in the country’s economies, and we explain the following specifications of the site of the blacksmith’s project in Saudi Arabia:
- Choosing a workshop location within the scope of industrial areas, or on the sides of highways.
- In order to ensure a spacious, comfortable and easy-to-move entrance, the space should not be less than 100 square metres.
- Electricity, water and sanitation services must also be available.
- It is an ideal and very feasible idea for the workshop to be near auto parts stores to carry out maintenance work easily and to attract the largest number of customers.
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Specifications and equipment for a blacksmithing workshop project in Saudi Arabia
Opening a blacksmith’s workshop requires legal work by obtaining licenses and official legal papers, especially since working within this project is a dangerous business, and requires appropriate specifications for the project, and therefore we explain the specifications of the blacksmith’s project in Saudi Arabia:
- It requires preparing decorations and designs for the workshop.
- It also provides a waiting room for clients furnished with chairs, a reception desk and air conditioning.
- Comprehensive lighting for the corners of the project that bears high voltage.
- It is good to equip an illuminated billboard.
- An electronic payment machine is also provided.
- With a note, all safety-related means and first aid materials must be available.
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Tools and equipment required for a blacksmithing workshop project in Saudi Arabia
Any project begins with planning. Good planning can see the project in all its different stages, with knowledge of the steps for implementation and success of each stage, with the preparation of alternative plans in case it is necessary to resort to them, especially when the course of the project changes from its objectives. Below we mention the tools and equipment required for the Warshada Haddeh project. In Saudi Arabia:
- Electrical transformer.
- Also, a large rocket to be used to cut iron sheets for the workshop.
- A machine for pressing and forming iron parts.
- Also a welding machine to connect the pieces of iron to each other.
- Hammer machine.
- and the anvil machine.
- punching machine.
- Well, machine pliers.
- coolant machine.
- Suction tube device.
- With the need to provide safety tools in the workshop, such as: fire extinguishers, heat and protective suits, protective gloves, and masks.
Raw materials needed for a blacksmithing project
- The project needs raw iron to make many tools.
- Insulating materials for the iron plating process, and form a strong rust insulator.
- With different paints available.
- Also, vegetable charcoal in the required quantity.
The cost of a blacksmith shop project in Saudi Arabia
Cost management is the process through which the costs of a particular project are estimated, so that future expenses are identified and expected in order to ensure that the company’s budget is not exceeded, and must be approved before starting work on the project. Cost management, below we review the cost of a blacksmith shop project in Saudi Arabia:
- Salaries and Wages: The blacksmithing workshop requires a technician, with an estimated salary of about 1,500 Saudi riyals.
- It also needs two workers to help lift and move the goods and prepare them for transportation.
- The salaries of these workers may reach 1,000 Saudi riyals.
- Rental costs and utility bills: The annual rent for the workshop is SAR 40,000.
- Also, the value of the electricity bills is 6000 Saudi riyals.
- Also, the value of water bills is about 600 Saudi riyals.
- In addition, gas consumption expenses can be estimated at 3,600 Saudi riyals
Profits of a blacksmith shop project in Saudi Arabia
Obtaining profits is a real indicator of the success of the project, bearing in mind that the percentage of profits during the first year is almost non-existent due to the costs consumed by the project, especially fixed and variable, and after that the project begins to achieve profit rates, and we mention the profits of a blacksmith shop project as follows:
- The average project profit is estimated at about 17% annual return on capital. The profit may also double if good marketing and advertisement of the project are included.
- Note that the value of profits is reported in the negative during the first period of the operational phase of the project, due to the percentage of expenses on the project.
- In the second year of starting the project, it may reach more than 10,000 Saudi riyals, and it will start to increase as time passes since the start of the project and marketing and advertising increases.
- Bearing in mind that the higher the production capacity of the project, the higher the profit rate.
- Also, profits in the fifth year reach 100%.
Factors of success of the blacksmith shop project in Saudi Arabia
Determining all goals and prioritizing, while presenting flexible strategies in case of emergency, writing down all project requirements and objectives, as well as formulating time events and multiple obstacles, all in order to improve work outputs in the coming times, which are among the project’s success factors, and we learn about the most prominent of them as follows:
- Choosing a site suitable for the work of the workshop so that it is near the population centers, but does not represent a source of disturbance to them.
- Project management by a person who has experience and skill in tracking project phases, as well as workers with a high degree of experience and competence.
- While making sure to provide safety tools for workers, most notably fire extinguishers and protective suits.
- The selling prices should be appropriate or higher than those sold in the market to ensure a higher percentage of sales.
Marketing for a blacksmith shop project in Saudi Arabia
Marketing in all its forms, electronic or direct, is one of the foundations for the success of the project. This element must be fully exploited to obtain a large percentage of sales, especially if the project is in a remote area. The savior for it is electronic marketing. The following is how to market the project:
- The project owner announces the opening of the workshop by printing an advertisement and cards bearing the name of the workshop and the name of the owner of the workshop.
- A web page was created to advertise the workshop and the most important services it provides.
- Displaying the goods produced by the workshop at competitive prices with other workshops.
- It is good to use modern and advanced technologies to manufacture pioneering and unique products to attract customers.
Feasibility study of the blacksmithing workshop project in Saudi Arabia 2023. The analytical study of the project does not require a friendly session with friends or relatives, but rather the presence of qualified engineers and those with experience and previous experience in project management.