REG.

NO: R/CSMS19/3101

CHAPTER ONE

1.0 BUSINESS DESCRIPTION

The name of the business will be C.M.O fresh fish depot which will be located along
stadium Daraja way near total fuel station. I will only deal with fresh fish.
1.1 Background information
I am the owner of the business by the cliff AM Omanwa currently studying at Kisii
National Polytechnic pursuing certificate in Supply Chain Management in order to
gain more skills and be in a position to start both small and large business.
1.2 Business Name
The name of the business is C.M.O fresh fish depot. The nameis derived from the
initials of my name. i.e Cliff M Omanwa.
1.3 Business location and address
The business will be located at stadium Daraja way near total fueling station next to
plaza house. Reasons for choosing the location is because:
i. There is enough security
ii. Demand is very high since many people pass there
iii. It is a popular known place
iv. Competition is very low

Business address is C.M.O FRESH FISH DEPOT

P.O BOX 42,

KISII

The business email address is [email protected]. Where customers will be able to

get all information about the business

Diagram
1.4 Form of ownership
The business will be a sole proprietorship which will be fully owned by me. The
following are the reasons which made me choose sole proprietorship business:
i. In sole proprietorship there is enjoyment of profits alone.
ii. Easy in decision making since you don’t have to consult anyone.
iii. Needs small amount of capital to start.
iv. Need few legal formalities to start.
v. Easy to expand by bringing back the profit.
1.5 Type of the business
The business will be a startup which will only be dealing in supply of fresh fish. The
business will be working from Monday to Saturday whereby it will be open from 8:00
Am to 8:00 Pm every day apart from Sunday.
1.6 Product and services
C.M.O FRESH FISH DEPOT will be selling fish. The business will be offering
carrying and transportation of fish to the customers’ destination and offering 10&
discount to customers who will buy fish which will cost Kshs. 7,000 and above.
1.7 Justification of the business.
I prefer this type of business because:
i. High demand due to many customers in the region
ii. Using advanced technology in storing fresh fish thus losses will be low.
iii. Favourable government policy to the business.
iv. Low competition from other business which is caused by not having good
storage facilities.
1.8 Industry
The business will operate smoothly and growing slowly as time goes by which will be
brought up by bringing back profit and also low competition since there will be only
one industry offering competition. The business will require 450,000 as starting and
working capital.
1.9 Goals and objectives of the business
1.9.1 Objectives
i. Minimizing the cost
 ii. Utilizing the available resources to attain maximum profit
iii. Investing back the profit to expand the business to maximum.
1.9.2 Secondary objectives
The fish will be supplied in good quality and quantity thus will make the
business to have more branches due to the acceptance and growth of the
business.

1.10 Entry and Growth strategy

1.10.1 Entry
The good quantity and quality which will be supplied and also services
like transport cost and discount will make the business more acceptable
thus making it to penetrate and popular known.
1.10.2 Growth
Through advertisement the business will be able to make good profit
which will be used to employ qualified skilled personnel for handling
products in good condition making customers fully satisfied.
 CHAPTER TWO

2.0 Marketing plan

2.1 Customers
My customers will be persons who like fish. These customers will be both young
people and old people since fish is natural meat which is a source of protein to
humans’ health. But my regular customers will be adult people who are aged
between 40-80 yrs who don’t consume other meat but prefer to consume fish. About
the educational level my business will favor both illiterate since the fish is a nice meal
for every individual to consume it.
Business consideration
I will use radio advertisement and also TV advertisement in order for all people to get
information about my business. I will employ skilled personnel who know how to
welcome the customers and serve them well so that they can’t go away.
2.1.1 wholesalers
I will be the main wholesaler to supply goods to the entire market since
the business is a sole proprietorship.
2.1.2 Retailers
I will distribute to the retailers to supply goods to entire market since the
business sole proprietorship.
2.1.3 Institutions
I will make sure I have contracts from institutions paying monthly so that I
can supply my goods to the institutions.
2.1.4 Individuals.
I will be selling my products to individuals at favourable price to attract
them through my services of giving discount on large purchasing.
2.2 Market share/Size
The population of customers to be covered will be approximately 70% of the market
share. The table below is showing the estimated sales.
 Before

A B C totals
Total sales 30000 35000 35000 100000
% 20% 40% 40% 100%

After

A B C C.M.O totals
Total sales 30000 35000 35000 60000 160000
% 10% 20% 20% 50% 100%

2.3 Competition
The main competitor will be Alexi’s supplier but other small competitors will be
defeated. The strength of the main competitor is that they have good
communication system to their customers. Their weakness Is that they do not
have after sale services and also discounts for cash purchases of their products.
My business will take an advantage of overtaking the main competitor by offering
10% discount for cash sales and free transport for any individual buying goods
worth more than Kshs. 10000. The following table is showing the competitor’s
sales volume before and after C.M.O has entered into the market.

Before

Firms A B C TOTALS
Sales 30000 35000 35000 100000
Market share 20% 40% 40% 100%
Profit 10000 30000 30000 70000
No 2 10 10 22

After

Firms A B C C.M.O TOTALS

Sales 30000 35000 35000 80000 160000
Market 7% 15% 15% 63% 100%
share
Profit 8000 20000 20000 60000 128000
No 2 3 3 6 22
 2.4 Methods of promotion
C.M.O fresh fish supplies will be advertising its products and services through radios,
Television and internet posters which will contain the description o fthe business
useful information of the business will be given through e-mail
[email protected]
2.5 Pricing strategy
The price to be charged will be favourable to all customers. The method of
determining price will be price= selling price= buying price + profit
Factors to be considered :-
i. Discount offered
ii. After sales service
iii. Price of competitors
iv. Demand of the product
2.6 Sales tactics
The business will be person selling through sales agent who is a sales manager. The
sales manager also will make sure that the ordered products will be supplied in time
and has been delivered to customers through letters or e-mail.
2.7 Distribution strategy
The business will use its distributors to supply goods through the after sales service to
customers who have bought more goods worthy Kshs. 10000 and above. The
transportation will be through road transport.

CHAPTER THREE
3.0 Organizational And Management Plan
3.1 Management Team
 The proprietor of C.M.O will be the general manager. I will employ worker s who
will assist me within the enterprise. Everyone will be assigned to his/her own job
within the organization. Recruitment will be done depending on the physical work
and the profit brought in. awarding will be depending on what the workers offer to the
organization. The business will employ an accountant, sales manager, security guards,
cleaners and purchasing manager.
3.1.1 Description and qualification
Accountant
 Pass in certificate in accounting
 Age 25 years and above
 1 year experience

Duties

 Issuing receipts
 Keeping record of transactions

Sales manager

 Pass in certificate in sales and marketing

 Age 25 years and above
 1 year experience

Duties

 After sales service

 advertising

Security guards

 Have a form four certificate with D+ grade and above

 18 years and above age

` Duties

 Providing security
  Giving customers direction where to start

Cleaner

 Have a form four certificate with D+ grade and above

 18 years and above age
3.1.2 Purchasing manager
The sales manager also will take that responsibility therefore he will be
doing advertisement, after sales service and also purchasing. He or she
will be having certificate in sales and marketing and also he/she should be
25 years and above.
3.2 Other personnel
 Store keeper
 25 years and above
 Knowledge of handling goods

Duties

 Keeping records
 Giving information to sales manager about goods needed

Below is a table showing the number of employees, qualification and their salaries

Name Number Qualification Salary per month

Accountant 1 Graduate in Certificate 15000

Sales manager 1 Graduate in Certificate 12000
Security guard 2 Form four certificate 6500
Cleaner 2 Form four certificate 6000

Organization structure

Manager
 Sales Manager Accountant

Store Keeper Cleaners Security Guards

3.3 Recruitment, training and promotions

3.3.1 Recruitment
This will be done in fair way without any tribalism but according to qualification and
one’s skills. Advertisement of jobs will be done through radio and displays on
billboards. Only qualified members will be given appointment letters.
3.3.2 Training
Workers will be trained depending on their various jobs and the training will be
offered through on job training method.
3.3.3 Promotions
Promotions will be done after the expansion of the business. Employees will be added
and therefore other employees will be promoted according to their experience and
level of education.
3.4 Remuneration and incentives
3.4.1 Remuneration
This is how the business will pay their employees plus their allowances
during the month.
Below is a table showing payment plus allowances.

Position Number Monthly salary Allowances total

Accountant 1 15000 3000 18000

Sales manager 1 12000 2000 14000
Security guard 2 6500 1200 7700
Cleaner 2 6000 900 6900

3.4.2 Incentives
Works will be motivated by giving them breakfast, lunch and breaks of
visit to their families. Also best workers will be awarded according to their
commitment to work.
3.5 License, permits and by-laws.
3.5.1 License
C.M.O will obtain a license from the county government of Kisii to allow
the operation to take place.
3.5.2 Permit
The business obtains its permit from the ministry of health to allow the
business to do its activities.
3.5.3 By-laws
The business will suit with the law from the county government of Kisii
for effective operation e.g health standards, environmental regulations
3.6 Support services
3.6.1 Banking services
The business will get support from equity bank where the business have an
account to enable it excel in its services.
Equity Bank
P.O box 500,
Kisii.
The account will help a business in saving some amount of money
monthly and also getting a loan in case a need arises.
3.6.2 Insurance
The business will be insured by Bima Insurance Company
P.O BOX 502,
Kisii.
 Whereby the business will insure against theft, fire and health of the
employees.
3.6.3 Consulting services.
The business will consult Jobby traders since they have been in the market
for a long period of time.
3.6.4 Legal services
The business will have job identification cards having names of the
individuals and the address of the business also photo of that employee for
identification that you have been in the organization.

CHAPTER FOUR
4.0 Production And Operational Plan
4.1 Production Facilities and Capacities
C.M.O fresh fish supply will acquire facilities of hardware type to be used in carrying
out various tasks in supplying fish to customers hence providing proper services.
The table below shows equipment which is needed.

Item Quantity Cost

Store 1 1500
Fridge 3 30000
Computer 2 50000
Electricity 2 phase 20000

The tools will be used for specific purposes as they are indicated for proper use and
also good maintenance.
Furniture

Description Quantity Cost

Tables 3 10000
Chairs 8 7000

Other expenses

Description Cost
Insurance 10000
Salaries 52000
Rent 35000
Water 2000
Electricity 6000

4.1.1 Firm layout

 4.2 Production strategy
For the business to grow and operate effectively, the workers should enhance
teamwork for future success. Also services should be offered in a good way so as to
attract more customers into the business services. Window display will be used to
show customers the type of fish sold in the organization. The business will sell high
quality products.
Labour costing
The table below shows labour costing of employees according to their services

Position Number Monthly salary Allowances total

Accountant 1 15000 3000 18000

Sales manager 1 12000 2000 14000
Security guard 2 6500 1200 7700
Cleaner 2 6000 900 6900

4.3 Production Process

The production process will be as follows.
Stage1: Receiving fish
Stage2: Washing and removing scales from fish
 Stage3: packaging fish according to their sizes
Stage4: labeling the packages according to their sizes and prices.
Stage5: Arranging the packages made for sale.

External factors affecting product

 Competition from other firms
 Unfavourable climate
4.4 Regulations affecting the product
4.4.1 Safety regulations
Every employee should follow rules and regulations therefore to ensure
safety of each other in the firm hence smooth production.
4.4.2 Health regulations
Every employee in the firm should have required health permit. Also the
firm should have a work permit from the county government.
4.4.3 Environmental regulations
The business will ensure that the premises under the firm is clean and also
there is a conducive environment surrounding hence making the firm to be
run well.

CHAPTER FIVE
5.0 Pre-operational Plan
Item Cost
Market research 7000
License 10000
Advertising 5000
Transport 3000
Fixtures and fittings 17000
Equipment and machinery 100000
Opening stock 450000
Rent deposit 36600
Total 628600

5.1 working capital requirements (2020)

Item Cost
Stock of raw materials 40000
Work in progress 75000
Stock of finished goods and products 90000
Debtors 35000
cash 102000
Total 342000

5.1.1 working capital requirements

Item Cost
Stock of raw materials 200000
Work in progress 90000
Stock of finished goods and products 180000
Debtors 30000
Cash 175000
Total 675000
5.1.2 working capital at the end of 2022

Item Cost
Stock of raw materials 350000
Work in progress 115000
Stock of finished goods and products 250000
Debtors 150000
Cash 280000
Total 1145000
 5.2 Table

Particula Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Total
rs
Bal b/f 30000 997550 155436 153502 139972 128649 166877 166877 184500 200000 188700 182319 17980989
3 3 3 3 3 3 0 0 0 2
Cash sales 2 1 1 9 8 9 1 1 9 8 4 1 15
0 2 0 0 0 5 2 6 9 7 5 1 4
0 0 0 0 0 0 0 0 9 0 0 0 5
0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0
Collection 4 3 8 1 5 6 1 1 2 1 9 2 19
from 0 6 0 3 0 0 0 7 0 1 4 0 2
debtors 0 8 0 4 0 0 0 0 0 0 0 0 5
0 2 0 0 0 0 0 0 0 0 0 0 2
0 0 0 0 0 0 0 0 0
Total cash 1 2 2 2 2 5 2 2 3 2 2 3 32
inflow 9 4 5 3 3 3 5 9 0 9 8 1 2
6 9 8 6 3 4 3 5 6 7 9 2 3
0 4 3 8 9 0 2 8 5 9 7 3 9
0 3 3 4 0 0 1 7 0 6 0 0 0
0 7 6 2 0 0 9 7 0 1 0 0 0
0 0 3 3 0 3 3 0 4 0
Purchases 1 1 1 1 1 1 1 1 1 1 1 1 10
2 6 7 8 9 9 8 7 8 8 9 9 6
0 0 0 0 0 0 0 5 0 5 0 5 9
0 0 0 0 0 0 0 0 0 0 0 0 1
 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0
0
Salaries 52000 52000 52000 52000 52000 52000 52000 52000 52000 52000 2000 52000 624000
Rent 35000 35000 35000 35000 35000 35000 35000 35000 35000 35000 35000 35000 420000
License 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 120000
Insurance 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 120000
Water 250 257 250 300 280 280 280 290 275 296 270 240 3268
Electricity 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 240000
Creditors 20000 30000 25000 20000 30000 35000 40000 42000 41000 43000 40000 308000
Advertise 5000 5500 6000 6100 6150 6000 5000 5200 5300 6000 6000 6000 722000
ments
Transport 3500 3400 3600 4000 4100 3900 3800 3450 3450 3450 3000 4100 36000
Total cash 762450 940007 104834 968700 105323 863720 132400 104600 101641 109170 107436 107936 12268028
outflow 0 0 0 9 2 0 0
Accumula 997550 155463 153502 139972 128649 166879 163431 184503 204864 188791 182319 18325099
tive cash 3 3 3 3 3 3 2 2
5.3 Profoma income statement

Opening date End of year one End of year two

Amount Amount Amount
Item
Sales 881317 8420680 2921240
Cost of goods sold 1640720 3780000 7200000
Gross profit 3240597 4640680 5721240
Wages 960000 960000 960000
Rent 144000 144000 144000
Telephone/poster 6800 6920 7000
Electricity 24600 28270 22940
Water 3000 3200 3268
Advertising 18000 16400 26800
Renovation 12000 13400 16240
Transport 50000 52060 54520
Total expenses 1218400 1286530 1234768
Not before tax 2022197 3354540 4486472
Provision for tax 781011 1347309 2097399
16%
Not profit after tax 1241186 2007231 2419074

5.4 profoma balance sheet as at January 2020

Current assets Amount Current liabilities Amount

Cash in hand 248160 Creditors 320000
Cash at bank 700000 781011
 Debtors 180620
Raw materials 200221
Stock 500000
Total current asset 1829001 Total 1101011
Fixed assets Long-term liabilities
Machine 160000 Bank loan 200000
Equipment 27000 Owner equity 920000
Tools 223010 Interest 18000
Total fixed assets 410010 Total long term liability 1138000
Total assets 2239011 Total liability 2239011

Profoma balance as at December 2020

Current assets Current liabilities Amount

Cash in hand 62580 Creditors 296000
Cash at bank 1000000 Taxes 2067399
Debtors 201420
Raw materials 800970
Stock 1340000
Total current asset 3404970 Total 2363399
Fixed assets Long-term liabilities
Machine 144000 Bank loan 196000
Equipment 243000 Owner equity 1240000
Tools 200709 Interest 176000
Total fixed assets 369009 Total long term liability 1612000
Total assets 3973399 Total liability 3973399

5.5 break even level

Items Fixed Veriable

Salaries 60000
License 10000
Advisement 26800
Electricity 22940
 Water 3268
Rent 144000
Transport 54520
Insurance 2000
Total 216000 107528

Total contribution Margin

Sales – total variable cost
= 2921240-107528
=2813712

Contribution margin percentage

=2813712x100/2921240
= 96.32%

Brocken level
=216000x100/96.32
= 224252.5

5.6 Expected profitability

Gross profit percentage % = gross profit x100/ sales
= 486472x100/2921240
=16.65%
Return equity
Not profit after tax + income x 100/ total investment
1241186x100/450000
= 275.82%

Return on investment

not profit x 100/ total value of the business

= 1240186x100/275.82
 = 449998.5

5.7 desired financing

particular amount

pre operational cost 823500

fixed assets 468400

others 18000

total 1313900

5.8 proposed capitalization

personal contribution 800000

friends and family 200000

bank loan 200000

total 1200000