BUSINESS NAME: BRENDA’S BUSINESS BAR

NAME: CHEVAI N. BRENDA

PHONE NUMBER: 0797081647

INDEX: 6211010459

COURSE: CRAFT CERTIFICATE N FOOD AND BEVERGAE PROUCTION SERVICE

MODULE TWO

CENTER NAME: MATILI TECHNICAL TRAINING INSTITUTE

COURSE CODE: 1802/2

EXAM SERIES: NOVEMBER 2021

SUPERVISOR NAME: MADAM WINNIE MUYAMBWA

SUBMITTED TO: KENYA NATIONAL EXAMINATION COUNCIL IN

FULLFILLMENT FOR THE AWARD OF CRAFT CERTIFICATE N FOOD AND
BEVERAGE PROUCTION
DECLARATION

I hereby declare that this is my own original work and that it has not been presented to any other
examination body

Presenter Name: CHEVAI N. BRENDA

SIGNATURE: ……………………….

DATE: …………………………….

SUPERVISORS DECLARATION:

Tis plan has been submitted with my approval as the course supervisor.

SUPERVISOR’S NAME: MADAM WINIE MUVAMBWA

SIGNATURE: ……………………...

DATE: ………………………………..
DEDICATION:

My special dedication goes to my parents, my sisters and my brothers who supported me

financially throughout my education. Gratitude goes to my supervisor Madam Winnie who
supported me with the knowledge and skills of writing this plan.
ACKNOWLEGEMENT:

I am indebted to various individuals for the help they have offered me which has led to the
success of this project. Gratitude goes to my Supervisor for the necessary corrections throughout
the writing of this entire business plan.
 TABLE OF CONTENTS:

DECLARATION
DEDICTAION
ACKNOWLEDGEMENT
EXECUTIVE SUMMARY
A. BUSNESS DESCRIPTION
B. MARKET PLAN
C. ORGANISTAION PLAN
D. OPERTAIONAL PLAN
E. FINCAIAL PLAN
CHAPTER ONE:
1.0 BUSINESS DESRIPTION
1.1. BUSINESS NAME
1.2. BUSINESS LOCATION AND ADRESS
CHAPTER TWO
2.0. MARKET PLAN
2.1 CUSTOMERS
2.2. MARKET SHARE
2.3. COMPETITION
2.4. METHODS OF PROMOTION AND ADVERTISEMENT
2.5. PRICNG STRATEGY
2.6. CHANNEL OF DISTRIBUTION
2.7. PRODUCTS AND SERVICES
SALES TACTICS
CHAPTER THREE
3.0. ORGANISATIONAL MANGEENT
3.1. ORGANISTAIONAL STRUCTURE
3.2. SKILLS, PERSONEL MANGEMENT
3.3. OTHER BUSINESS PERSONEL
3.4. RECRUITMENT TRAINING AND PROMOTION OF PERSONEL
3.5. REMUNERATION AND INCENTIVES FOR PERSONEL
3.6. LICENSE, PERMITS AND BY-LAWS
3.7. OTHER SUPPORT SERVICES

CHAPTER FOUR
4.0. OPERATIONAL PRODUCTION PLAN
4.1. PRODUCTON PROCESS
4.2. PREMISES FEATURES
4.2.1. LAYOUT OF THE PREMISES
4.2.2. MAINTENANCE AND RENOVATIONS OF EQUIPMENTS
4.3. SALES STRATEGY
4.4. PRODUCTION PROCESS
4.5. FACTORS AFFECTINGTHE OPERTAION
4.6. REGULATION AFFECTING OPERTAION
CHAPTER FIVE
5.0. FINANCAIL PLAN
5.1. PRE-OPERATIONAL COST
5.2. WORKING CAPITAL ESTIMATES
5.3. CASH FLOW SATEMENTS
5.4. PRO-FORMA INCOME STAEMENTS
5,5. PROFORMA BALANCE SHEET
5.6. BREAK-EVEN POINT ANALYSIS
5.7. PROFITABILITY RATIO
5.8. PROPOSED CAPITALISATION
1.0. BUSINESS DESCRIPTION
The business will be run as a sol-proprietorship and the main aim of the business is to generate
profit for the business owner. The running of this business will also help the owner get to put her
skills and knowledge into practice.
The business intends to be a leader in provision of the Basic goods that is Juice. The owner
intends to position the business to be one of the leaders within the region. The business will start
as a small scale business, with the owner or proprietor having the intention of expanding it
further so as to grow into a big entity.
1.1. BUSINESS NAME
The business name will be “Brenda’s Juice Bar”. The choice of this name follows the name of
the Proprietor. As such, the Choice of the name seeks to impart ownership of the business on
the part of the proprietor. The proprietor also finds this name to be appealing, for marketing
purposes.
1.2. BUSINESS LOCATION AND ADRESS
Brenda’s Juice Bra shall be located in Kimilili Town, Bungoma County. Specifically, the shop
would be stationed at the Kimilili Town along the Bungoma Kitale Road famously known as
“Dinah” Junction. The choice of this are as a business location is informed by a number of
factors. First, the area is known for relatively high population, increasing the probability for
having many customers. Being a central place for travellers also makes it suitable for the kind of
business, given that travellers are likely to want to get something to take as they get o their
various travelling destinations.
The business with trade under the following address:
BRENDA’S JUICE BAR
P.O. BOX 122
KIMILILI
0797081647
1.3. FORMS OF BUSINESS OWNERSHIP
The Business will run a sole Proprietorship. By this, the owner will be the Manager, overseeing
the day to day operations of the business. The choice of this form of business is informed by a
number of reasons:
1. Sole proprietorship would enhance or provide room for quick decision making
2. Will need relatively small or little capital to start
3. The proprietor would be good enough to enjoy the profits alone
4. It will give the owner, me the chance to run it in the manner I would wish to

1.4. TYPE AND NATURE OF BUSINESS

Brenda Juice Bra will be majorly a retailor type of business. By thus, the proprietor would be
selling her goods directly to the consumer. This s informed by the fact that the owner would be
meeting her customers directly. It is also informed by the shelf life of the products being offered,
much of which would require to be sold within a relatively short period, even with refrigeration.
The major day to day activity will be the preparation of the main juice commodities and the
selling of them directly to customers.

1.5. PRODUCT AND SERVICE

Brenda’s Juice Bar will be focused in the production and selling of Major Fresh Juice Products.
This would include selling of Blended Juice, together with Cocktail made from various fruit
products. . The focus of Production would be on a number of major Juice including; Pineapple,
Mango, Strawberry and Passion among others. The products shall be provided at relatively
affordable prices with discounts afforded, depending on the quantity required by customer.

1.6. JUSTIFICATION FOR BUSINESS OPPORTUNITY

In the recent Times, Kimilili Town has been growing extensively, with businesses booming.
The food sector has also not been left behind, with High Class, Medium and Low-cadre For
venues and hotels coming up. Even so, the Juice sector has not been well tended to, with
majority of these Food let-out’s not giving it a priority. Customers are finding it hard to get
high quality fresh juice, forcing many to rely on suppliers from other major towns so as to
quench their thirst. As such, the fresh juice sector remains untapped, presenting a viable
opportunity for the proprietor to venture into this sector. It is worth noting that the Proprietor
also has necessary basic skills on Beverages and Food, making this an option that is relatively
good for the proprietor.
1.7. GOALS OF THE BUSINESS

The venture is designed to be the largest and leading Juice Bar in Kimilili town and the
Surrounding metropolitan area. Even so, the proprietor has it that it should have as few
employees as possible. This s meant to cut down on operational costs and at the same time
increase the profit margin for the proprietor.

Short Term Goals

Before the end of the Year, the business intends

 To make a profit of ksh 300,000

 To help the entrepreneur put in practice and better her entrepreneurial skills acquired
from school.
 Solve the existing market and supply gap for fresh juice in Kimilili

Long-term Goals

It is the intention of the entrepreneur that at the end of the year, the business would have grown
into a very formidable brand. This would translate to having the capacity to purchase raw
products in large qualities. Prepare huge volumes of fresh juice and have large volumes of Juice
sales on every particular day.

1.8. ENTRY AND GROWTH STRATEGY

The proprietor intends to have a simple yet strategic entry strategy. As matter of fact, this
strategy would put in mind the nature of the industry, business location and customer
preferences. The proprietor acknowledges the fact that hers would be a business that would be
starting from scratch. As such, there would be need for a simple yet strategic method through
which information on the existence of the business would be made known. This is basically
through use of leaflets, suiting the neighboring businesses and probable close customers. The
second tool would be direct advertisements through writings on the premise, for which customers
would see the business and get in.

The mangers intend to grow further, through obtaining necessary loan facilities. This should be
good enough to help her in future open many more branches within the region, particularly in
Bungoma County.

1.9. INDUSTRY

The success of any business depends on number factors, yet understanding the industry if often
ignored. The Fresh Juice Industry, particularly that of sales is not that saturated as may be the
case in other towns. In Kimilili Tow, there are few than 7 outlets offering Fresh Juice as the
Primary Business product. Most of the other outlets offering Fresh Juice to customers are
mainly hotels. Even in most of the hotels, Fresh Juice is offered only on order, forcing many
clients to opt for refrigerated Bottled Juice such Afia, Minute Mia, Yatta and so forth. Putting
Brenda’s Juice Bra on the map would definitely be a game changer, one that acknowledges the
challenges facing the industry.
CHAPTER TWO;

2.0. MARKETING PLAN

Brenda’s Juice Bar is looking forward to supply its products to nearby schools and institutions
within Kimilili area. It is the vision of the proprietor that the main Milk Bar or Parlor would be
frequented by many people, especially during the weekends, one of the major groups targeted by
the business. Some of the factor which favor this includes;

 Good Transport and Communication

 Availability of electricity
 Good supply of water
 Good infrastructure
 Availability of stable workforce

2.1. CUSTOMERS

With good and intensive marketing, Brenda’s Juice Bar intends to serve a relatively large
customer base in the area hence boosting the chances of success.

2.2. MARKET SHARE

Brenda’s juice bar seeks to be a dominant player in the market. By the end of the year, the
business seeks to have at les 32% of the total Fresh Juice market in the region. This is through
provision of affordable, high quality fresh Juice Products.

2.3. COMPETITION

There is expected competition for Brenda’s Juice Bar. By this, the proprietor understands that
the business cannot function without considering what the competition or the competitor does.
Whereas the business considers the exiting competition, much of these have different model of
operation, with majority of them falling under the Hotel Cover operations. For purposes of
countering such competition, the business will seek to position itself as a Specialist in
Production and Supply of Fresh Juice, unlike having this as just one of the other products being
offered by Brenda’s Juice Bar. There will be a number of Branded categories of products
offered by Brenda’s Juice including: Juice it Up, Jamba Juice and Bowl of Heaven.

2.4. PRICING STRATEGY

The business has to understand the market and he reality that pricing does affect the supply and
demand of the core products. The supply of Juice is the market is relative to the prices offered
by player in the market. As such, the pricing strategy adopted by Brenda’s Juice Bar will be a
Break or Make on as it will determine whether the organization will grow or not. As a matter of
fact, the company seeks to gain leverage through putting in place price that is attractive to the
customer. Looking at the Economic Status of many residents and would be consumers of the
organizations products, it is worth noting that the organization would prefer to have low prices,
so as to increase the volumes supply and increase demand for Juice products within the market.
Whereas the profit ratio will reduce per unit, the volume of sales will vindicate the proprietor as
to why they should use this strategy.

NAME SMOOTHIES HEALTH NON- FRUIT JUICE FRESH PRICE

SMOOTHIE DAIRY BOWL SHOTS SQUEZZE RANGE
S S D JUICE
JUICE IT × × × × × × ×
UP
JAMBA × × × × × × ×
JUICE
BOWL OF × × × × × × ×
HEAVEN
BRENDA’ × × × × × × ×
S JUICE
BAR

2.5. ADVERTISING AND PROMOTION

Being an a Juice Production and sales Company, much of the marketing has to be done through

the online system and direct mouth to mouth advertising. This plan proposes that a number of

approaches be used as part and parcel of the marketing strategy, this would include:

1. Search Engine Optimization- Will be realized through liaising with major Search Engine

company, Google and her affiliates.

2. Public Relations; This would include various initiatives aimed at spurring the positive

image of Brenda’s Juice Bar, Includes initiatives that are largely charity related. Would

be one of the marketing strategies that are not directly accessed through online platforms

alone.
 3. Affiliate Website Partnerships, includes partnering with other companies, not necessarily

within the same sector so as to bolster image and positioning of Brenda’s Juice Bar in the

markets (Molthan-Hill, 2017).

4. Print Advertising; Advertising through mainstream print media will be an important way

or reaching out to masses, many of whom may never have thought of login into the

Brenda’s Juice Bar Site

5. Pricing Strategy; Brenda’s Juice Bar would be managed and run through the low-price

strategy, one aimed at spurring and or initiating numerous purchases, thanks to the

relatively low prices. With low profit margins and high sales volume, the company will

achieve her goals (Dawot, Song, Hashim & Hussein (2016).

6. Incentives. Giving periodical incentives such as ‘Brenda’s Juice Bardays’ and ‘Brenda’s

Juice Baroffers” with help increase demand and create a bandwagon-effect to joining and

running the company.

For purposes of initiating or pushing up demand for her products, display would be taken as an

important marketing factor, as such, upon entry into the sites main page, a consumer will be

provided for with sample general household products running through the middle of the front

page (Reginald, Norman & Stanislous (2011). This will include brief details such as the name

and the price offered by Brenda’s Juice Bar.

2.6. DISTRIBUTION STRATEGY

The distribution o the products is as good as any other measure, given that customers would
readily want to buy products, yet the availability of the same would a major determinant. As a
matter of fact, the business will seek to grow though provision of her products closest to the
customer. It is expected that 40% of consumers would pick u products directly from the main
Shop at Kimilili Market. It is also expected that other customers buying products in Bulk would
be able to pick up the same using lorries and other vehicles from the main distribution center in
Kimilili.

The diagram below shows how Brenda’s Juice Products shall be distributed from the producers
to the customers.

PRODUCER WHOLESALE RETAILER CUSTOMERS

2.7. PRODUCTS AND SERVICES

The products shall be provided at affordable prices, discounts shall be offered where necessary
especially with respect to the volume of products and or juice purchased. Frequent customers
are likely to be given more discounts as they are n assurance of sales for the company.
 CASH FLOW STATEMENTS

5.3.1. PROJECTED CASH FLOW 1ST YEAR-2022

ITEMS/MONT JA FE MARC APRI MA JUN JUL AU SEP OCTOBE

HS N B H L Y E Y G T R
BALANCE B/F
CASH IN
FLOW
DEBTORS
SALES
TOTAL CASH
INFLOW
CASH
OUTFLOW
PURCHASES
SALARIES
INSURANCE
LICENSE
TRANSPORT
WATER AND
ELECTRICITY
POSTAGE
LOAN
PAYMENT
TOTAL
CASHOUTFLO
W
CUMULATIVE
CASH
OUTFLOW
NET CASH
5.3.1. PROJECTED CASH FLOW 2ND YEAR-2023

ITEMS/MONT JA FE MARC APRI MA JUN JUL AU SEP OCTOBE

HS N B H L Y E Y G T R
BALANCE B/F
CASH
INFLOW
DEBTORS
SALES
TOTAL CASH
INFLOW
CASH
OUTFLOW
BANKING
SALARIES
INSURANCE
LICENSE
WATER AND
ELECTRICITY
POSTAGE
TOTAL CASH
OUTFLOW
CUMMULATI
VE CASH
OUTFLOW
NET CASH
5.3.1. PROJECTED CASH FLOW 2ND YEAR-2023

ITEMS/MONT JA FE MARC APRI MA JUN JUL AU SEP OCTOBE

HS N B H L Y E Y G T R
BALANCE B/F
CASH
INFLOW
SALES
TOTAL CASH
INFLOW
CASH
OUTFLOW
RENNOVATIO
N
SALARIES
INSURANCE
LICENSE
BANKING
TRANSPORT
WATER AND
ELECTRICITY
POSTAGE
TOTAL CASH
OUTFLOW
CUMMULATI
VE CASH
OUTFLOW
NET CASH
5.4. PROFORMA INCOME STATEMENT FOR JUICE BAR

ITEM 31/12/2016 31/12/2017 31/12/2018

SALES 80,000,000 84,000,000 82,000,000
COST OF GOODS 32,000,000 30,000,000 30,000,000
SOLD
GROSS PROFIT 48,000,000 54,000,000 52,000,000
EXPENSES 5900 2250 24000
PERMIT 1000 1000 1000
INSURANCE 2000 2000 2000
POSTAGE 2350 2050 2000
ELECTRICITY 2500 2100 2500
SALARY 9,360,000 9,300,000 9,360,000
REPAIR 1200 1150 1650
WATER 2150 2250 2250
LICENSE 1000 1000 1000
TRANSPORT 2350 2100 3100

TOTAL 9,381,050 9,376,500 9,377,900

NEW PROFIT 38,618,950 44,623,500 42,622,100
5.5. PROFORMA BALANCE SHEET

ITEMS 31/12/2016 31/12/2017 31/12/2018

ASSETS
FIXED ASSETS
BUILDING 100,000 300,000 450,000
FURNITURE 150,000 140,000 130,000
VAN 600,000 70,000 600,000

TOTAL

CURRENT ASSETS
CASH IN HAND 10,000 30,000 25,000
CASH AT BANK 100,000 200,000 250,000
DEBTORS 40,000 60,000 55,000
STOCK 30,000 40,000 50,000

TOTAL 180,000 330,000 380,000

LIABILITIES
CURRENT
LIABILITIES
CREDITORS 15,000 35,000 25,000
EMPLOYED 50,000 100,000 60,000
BANK 40,000 60,000 50,000
OVERDRAFT
PROFIT 50,000 100,000 200,000
FRIENDS
CONTRIBUTION

TOTAL 180,000 330,000 380,000

LIABILITIES
5.6. BREAK EVEN POINT

ITEMS 31/12/2016 VARIABLE FIXED VARIBLE FIXED VARIABLE

FIXED
WATER 25000 800
TELEPHONE 2000 3000
ELECTRICIT 5000 2000
Y
TRANSPORT 4000
POSTAGE
SALARIES
PERMITS
LICENSES
VEHICLE
REPAIR
PURCHASE
INSURANCE
TOTAL 4000 99500 11500 89500 7000 89000

a). 31/12/2016

Contribution margin= Total Sales /variable

90,000,000-99500

= 89,900,500

b). 31/12/2017

Contribution Margin =Total Sales – variable cost

79,000,000 -81,800

= 78,918,200

5.7. PROFITABILITY RATIOS

A. 31/12/2016

1(Gross Profit = Gross Profit ×100

 Total Sales

41,000,000*100

90,000,000 = 46.1

ii), Return on Equity = Net Profit * 100

Owner’s Equity

40,000,000 * 100

1,000,000 = 4,026

iii). Mark Up Gross Profit * 100

Cost of goods sold

41,500,000 *100

48,500,000 = 8,665

iv). Margin = Net Profit *100

Sales

41,500,000*100

90,000,000 = 46.1

B. 31/12/2017

a. Gross Profit = Gross Profit *100

Total Sales

34,000,000*100

88,000,000 = 40

Return on Equity = Net Profit*100

Owners’ Equity
 33,199,400*100

1,000,000 = 3,319.94

Markup = Gross Profit *100

Cost of Goods Sold

34,000,000*100

51,000,000 = 66.9

Margin = Net Profit *100

Owner’s Equity

c. 31/12/2018

Gross Profit = Gross Profit*100

Total Sales

41,410,000*100

79,410,000 = 52.2

Return on Equity = Net Profit*100

Owner’s Equity

33199400*100

1,000,000 = 3319.94

Markup = Gross Profit*100

Cost of Goods Sold

4,000,000*100

51,000,000 = 66.9

Margin = Net Profit*100

 Sales

34,000,000*100

85,000,000 = 40

5.8 PROPOSED CAPITALISTAION

The Business proposed shall operate with a Capital of Ksh 1, 000,000 as follows

ITEMS COST
Friends Contribution 100,000
Family Contribution 200,000
Family Bank Loan 200,000
Owner Contribution 500,000

TOTAL 1,000,000

CHAPTER THREE

3.0 ORGANIZATIONAL MANAGEMENT.

The business will maintain a simple and flat organizational structure when the manager will be
overall in charge of the business. However he will be assisted by a financial manager who will
be in charge of personnel of the business, other staff members include.

 WATCHMAN
 CASUAL WORKERS
 CLEANERS.

3.1.1 THE ORGANIZATIONAL STRUCTURE.

MANAGER

ACCOUNTANT
 SALESMAN CLERK WATCHMAN

3.2 SKILLS PWESONELL MANAGER.

The major key factors in the management of the business are:

Manager

Qualification

 He/she should be 30 years and above

 He/she should be a diploma holder in food and beverage
 He/she should have good communication skills
 Should have good morals.

Responsibilities.

 Responsible for paying employees

 Should be set objectives of the business
 Should participate in organization of business

Accountant

Qualification

 Should be 25 years and above

 Should be a diploma holder in accounting
 Should be having good leadership skills
  Should be have a certificate of good conduct

Responsibilities

 Should be proper planning in busness

 Should ensure that there is constant supply of the products
 Should be able to keep the records of the business
 Should sent enquiries on time.

3.3 OTHER BUSINESS PERSONELL

1. Salesman.

Qualifications

Age 25 years and above

 Ability to speak fluentlyto various customers.

 Able to negotiate the price of our juice product.

Responsibility

 Persuade the customers to have product of the firm

 Issue and package purchased items
 Market our product

Watchman

Qualifications

 Should have no criminal record

 Be of good health
 He must be a resident of Kimilili town

Responsibilities

 Enforce security of the business

 Reporting any theft cases in the business organization to the senior staff

Clerk
Qualifications

 Should be computer literate

 A diploma holder in secretarial and computer science
 Good communication skills.

Responsibilities

 Keeping the records data base

 Ensuring that all business records are kept well
 Other duties that may be assigned by the manager.

3.4 RECRUITMENT, TRAINING AND PROMOTION OF PERSONNEL

Recruitment will be done through advertisement of vacancies by ensuring that the information
has been put to the public notice board and posters. Following their trends of qualification and
methods of being specified for.

The promotion of personnel will be depending upon hardworking of the employees. This will
thus inform of increasing their wages and salaries.

Training will be done after every three months and it will be done by organizing for trip to visit
places related or dealing with this business. This will enable the employees to be qualified more
enough and expand their knowledge of the work.

3.5 RENUMERATION AND INCERTIVES FOR PERSONNEL

The employees are being after every months of emergency in between the month, thus
employees is given cost up to 45% of his or her salary. Also there will be a trip allowance for
1000 in case of retirement; personnel are being given out to them and a time out for a single
week after a period of fair months.

3.6 LICENCE PERMITS AND BY-LAWS

A legal business organization requires license for the operation of the business required by the
county council of Kimilili.

Trade license enable ones business to progress smoothly without the interference by the
government. The business permits is also needed for the owner and registration fee is needed.
Those requirements will be renewed every year.

3.7 OTHER SUPPORT SERVICE.

For the operation of the business there are some of the services which support them as.
3.7.1 BANKS

The business can borrow money from the bank that is family bank and this will support the
business fully.
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