CERULLO CYBER TECHNOLOGY AND

GAMINGPO

BOX 99-70456-OYUGIS
TELLNO: 072313975

BUSINESS NAME: CERULLO CYBER TECHNOLOGY AND GAMING

COURSE NAME: DIPLOMA IN INFORMATION COMMUNICATION

TECHNOLOGY

DEPARTMENT: BUSINESS PLAN

INSTITUTION: KISUMU NATIONAL POLYTECHNIC
PRESENTER: MARK CERULLO ODHIAMBO

INDEX NUMBER: 7410040383

EMAIL: [email protected]

SUPERVISOR: MADAM JULIET OYUGICORSE CODE: 2920

PAPER CODE: 2920/108

COURSE CODE 2920/108
SUBMITTED TO: TO THE KENYA NATIONAL EXAMINATION COUNCIL
FORDIPLOMA IN INFORMATION AND COMMUNICATION
TECHNOLOGY

DATE SUBMITTED: 19THMAY2023

SERIES: JULY 2023

i
DECLARATION
I declare this business opened to conduct gaming and cyber services with healthy and clean
environment for customers.

SUPERVISORS
SIGNATURE……………………………………………………………………

STUDENTS
SIGNATURE:…………………………………………………………………

iii
DEDICATION

I hereby dedicate this project to my family, teachers and friends who enable me to come up
with this project in one way or another. May they all be blessed?

iv
ACKNOWLEDGEMENT

I hereby acknowledge that the business projected being presented was written by I, Mark
Cerullo Odhiambo. I believe no one has presented this work before.

v
Contents

DECLARATION................................................................................................ iii

DEDICATION ................................................................................................... iv

ACKNOWLEDGEMENT ...................................................................................v

EXERCUTIVE SUMMARY ............................................................................. ix

CHAPTER ONE .......................................................................................................1

OBUSINESS DESCRIPTION ...................................................................................1

1.1:BUSINESS NAME ...............................................................................................1

1.1:LOCATION AND ADDRESS.............................................................................1

OWNERSHIP ...............................................................................................................2

BUSINESSS NATURE ................................................................................................2

PRODUCT AND SERVICES....................................................................................2

1.1:INDUSTRY ...........................................................................................................2

1.1.0:JUSTIFICATION .............................................................................................3

BUSINESS GOALS ....................................................................................................3

1.2:ENTRY AND GROWTH ....................................................................................3

CHAPTER 2 .............................................................................................................4

2.0:POTENTIAL CUSTOMERS ..............................................................................4

2.1MARKET SIZE OR SHARE ...............................................................................4

2.2COMPETITION....................................................................................................5
vi
2.3:PROMOTION STRATEGIES ...........................................................................5

2.4PRICING STRATEGY .........................................................................................5

2.5:SALES TACTICS ................................................................................................5

2.6:DISTRIBUTION ..................................................................................................5

CHAPTER 3 .............................................................................................................6

3.1ORGANISATION STRUCTURE........................................................................6

3.2:KEY MANEGEMENT PERSONEL .................................................................6

manager .......................................................................................................................6

3.3OTHER PERSONEL ............................................................................................6

3.3.1computer technician and security personel .....................................................6

3.3.2Receptionist .........................................................................................................7

3.3.2RECRUITMENT, TRAINING AND PROMOTION .....................................7

qualifications ...............................................................................................................7

3.3.3recruitment..........................................................................................................7

promotion ....................................................................................................................7

3.4RENUMARATIONS .............................................................................................7

3.5LICENSES, PERMIT REQUIREMENTS .........................................................7

SUPPORT SERVICES ..............................................................................................8

CHAPTER 4 .............................................................................................................9

4.1PRODUCTION FACILITES AND CAPACITY ...............................................9

4.1.1:REPAIR AND MANTAINANCE ....................................................................9

vii
4.1.2.:LAYOUT OF THE PREMISES ...................................................................10

4.3:PRODUCTION PROCESS ...............................................................................10

4.3.1:productional operation strategy ....................................................................11

taxes ...........................................................................................................................11

4 ..................................................................................................................................12

4.4.3health regulations .............................................................................................12

safety ..........................................................................................................................12

CHAPTER FIVE ....................................................................................................13

FINANCIAL PLAN ...............................................................................................13

5.1PRE-OPERATIONAL COST ............................................................................13

5.2:PROFOMA BALANCE SHEET ......................................................................14

5.3:WORKING CAPITAL ......................................................................................16

5.4: CASH FLOW PROJECTION .........................................................................17

PROFORMA INCOME STATEMENT ................................................................27

BREAK EVEN ANALYSIS ....................................................................................28

5.5:DESIRED FINANCING ....................................................................................29

5.6:PROPOSED CAPITALIZATION ...................................................................30

viii
EXERCUTIVE SUMMARY
BUSINESS DESCRIPTION
The proposed business will be gaming and cyber café .it will enable people toaccess gaming
and internet services.

The ownership of the business will be sole proprietorship because it will be solo effort self-
started business.

MARKETING PLAN

The proposed business is expected to cover customers need for fast and reliable internet and
gaming for others too. The business will be advertised via social media platforms like
Facebook and posters .The marketing will be cheap but efficient.

ORGANIZATION MANAGEMENT PLAN

It will outline management structure of the business. qualifications and responsibilities will be also
be shown for every member involved.

ORGANIZATION AND PRODUCTION PLAN

it applies to various needs of proper fitting of equipment needed in running of the business.
This will enable the business to run smoothly and efficiently.

FINANCIAL PLAN

It applies to the costs before the operation starts, working capital schedule, payment
preparation of cash flow and income statements.

ix
CHAPTER ONE
OBUSINESS DESCRIPTION
The business will be called CERULLO CYBER AND GAMING. It will be afully equipped
cyber that its main aim is to offer goods and services to customers and enlighten the society
in terms of technology.

Mission statement

To change the phase of ICT, equip many with the knowledge and skills to conquer the ICT
world and eliminate ICT illiteracy in the society.

Vision statement

To create and produce the best computer services and solution to customers atall times.

Core value will be Integrity, transparency, teamwork , communication, customers

satisfaction.

1.1:BUSINESS NAME
The name will be derived from my real name Cerullo which means
determination and hard work and focus for better results.
1.1:LOCATION AND ADDRESS
It will be located in Homa bay county Oyugis town, along Kisii Kisumu road inOrlando plaza next
to KCB Bank.

PO BOX 99-70456
OYUGIS
TEL 0723139705

EMAIL:[email protected]

1
OWNERSHIP
It will be sole proprietorship because it will be self started. The business will be easier to
run and manage. It also requires small amount of capital to start and few legal formalities.

The business will get sponsorship from loans and savings and also retainedearnings.

BUSINESSS NATURE
Considering the title, the business will provide mostly internet, computer and gaming
services. online shopping and booking will also be available.

PRODUCT AND SERVICES

The business will offer services like printing, internet services such as online booking and
banking, photocopying, gaming services among others.

The business will sell products like flash disks and memory cards.
1.1:INDUSTRY
It will be a service industry in which gaming and internet services will be the main products.
Business will start on a small scale and expansion will depend on the success of the business.
computers, Wi-Fi and games will be installed.

Consider the following SWOT ANALYSIS in running of the business.

STRENGHT
The business will have adequate capital invested and the location is centrally placed to attract
more customers. There will be quality equipment to attract morecustomers.

WEAKNESSES

slow network in the area

OPPORTUNITY
Customer illiteracy and modernization requires people to be technological oriented. The
demand in games in entertainment too.

2
THREATS

Cyber-crimes and taxation will be the main challenge of the business.

1.1.0:JUSTIFICATION
Gaming and internet have become a trend these days and hence profit is guaranteed when
the business becomes operational.

The business will operate by using modern computers ,free wifi and bonuses will be offered to
common customers.
BUSINESS GOALS
Short term

To gather enough profit to retain and help run the business smoothly and attract many
customers as possible.

Long term

To expand the business into a bigger one and have branches in different parts of the region
and offer the best services in the region.

1.2:ENTRY AND GROWTH

The business will be marketed via advertising through social media platforms such as
Instagram ,what’s app and Facebook.

To ensure the business grows, part of the profits owned will be re invested back to the
business to ensure that all costs and expenses are catered for. employees and customers will
both be motivated to improve the services beingprovided.

3
CHAPTER 2
2.0:POTENTIAL CUSTOMERS
Targeted customers are mainly students and pupils from all corners of the town and also the
residents in the town are also potential customers.

The youth are the main target because they are the ones who value technological
development and entertainment which these days rely on the internet. Games are popular
too and online gaming is a common trend thesedays hence installations of play stations.
2.1MARKET SIZE OR SHARE
The market size is big because there is only one available cyber café being dominant in the
town (ALMO CYBERCAFE). there will be significant changes after installation of the new
business operation.

Consider; BEFORE

4
2.2COMPETITION
ALMO CYBER CAFÉ is the competitor at the moment.it has the following strengths and
weaknesses;

strength Weakness

Good customer relation Charging their customers highly

Have skilled personel Poor location

Availability of capital to run the Poor allocation of resources

business

2.3:PROMOTION STRATEGIES
The business will be advertised through posters, social media platforms such as Facebook
among others. there costs are cheap but effective which are almost free.

2.4PRICING STRATEGY
Internet will be charged hourly while games will vary in prices depending on the popularity
of the game. Wi-Fi sometimes will be free to attract more peopleto the establishment.
2.5:SALES TACTICS
Social media platforms and posters will be used in advertising to make the business known
to the public.

Neighbors and friends can help in advertising the business to their families andfriends.

2.6:DISTRIBUTION
Products like flash disks, cds can be delivered by means of vehicle to customers
further away from the premises.

5
CHAPTER 3
3.1ORGANISATION STRUCTURE

3.2:KEY MANEGEMENT PERSONEL

manager
He will act as the overall supervisor of the establishment and ensure the businessruns smoothly
and efficiently.
3.3OTHER PERSONEL
3.3.1computer technician and security personel
There will be four computer technicians ,their main duty will be to ensure the computer
equipment are in good condition and help customers who might needthere services.

6
The security personnel will take care of the security of the premises and ensure safety of the
customers.
3.3.2Receptionist
Their task will be to welcome customers to the premises and also collect fee charges from
the customers and giving out receipts.
3.3.2RECRUITMENT, TRAINING AND PROMOTION
qualifications
For one to be the manager, he or she should have a diploma or a certificate. These
qualifications will also apply to the receptionist. The security personnel should at least be a
form four leaver and all employees should be able to commune fluently in English and
Swahili.
3.3.3recruitment
A recruit will be considered having passed the qualification phase. The best applicants will be
considered.
promotion
Promotion will be done on basis of one’s production and performance as a form of
motivation for the workers.
3.4RENUMARATIONS

TITLE NUMBERS SALARY(MONTHLY) SALARY(YEARLY)

Manager 1 30000 360000

Receptionist 1 15000 180000

security 2 10000 each 120000

3.5LICENSES, PERMIT REQUIREMENTS

License will be obtained from the county government of Homa bay and others from the
chief to allow the business to operate legally.

7
SUPPORT SERVICES
The business will work hand in hand with KCB bank by depositing part of theprofits to the
bank and also obtaining loans from the same bank. Loans will beraging from one million to
four million Kenya shillings.

The business will be licensed against theft and robbery and other risks andlosses.

8
CHAPTER 4
4.1PRODUCTION FACILITES AND CAPACITY
Consider;

ITEM NUMBERS COST TOTAL

Computer 5 20000 100000

Laptop 4 26000 104000

Printer 3 10000 30000

Scanner 2 10000 20000

Photocopying 3 15000 45000

Machine

Table 10 500 5000

Chair 15 300 4500

Tv Screens 5 21000 105000

Ps4 Console 5 20000 100000

Pads And 10 1500 15000

Cables

4.1.1:REPAIR AND MANTAINANCE

Maintenance will be done regularly and repairs will be done when necessary.

9
4.1.2.:LAYOUT OF THE PREMISES
Consider;

OTHER EQUIPMENT
For smooth running of the business, equipment will be updated and replaced ifnecessary and be in
the best condition.

4.3:PRODUCTION PROCESS
Services will be provided at the premises (gaming and internet)and charged at a fee.
Photocopying, printing will also be done at the premises and the business will ensure the
services are of the best quality to attract more customers.

10
4.3.1:productional operation strategy
Material requirement
Consider

Material amount Overhead Cost per unit

expenses

disinfectant 20 liters 200 4000

brooms 5 100 500
Cleaning 20 litre 250 500
detergent
total 5000

ELEMENTS AFFECTING PRODUCTION OPERATIONS

4.3.1 expenses

Expenses Cost

Electricity 1000

Rent 5000

Water 500

Telephone 1000

Transport 4000

Total 10500

taxes
The business will have to comply with the government authorities for the business to be
termed legal.

11
 Consider;

Tax sources cost

Trading license permit Homa bay councilPO 14000

4
Box 99

4.4.3health regulations
Health protocols will be followed as stated by law. the business will have itsown regulations
to ensure health protocols are followed.
safety
Rules and regulations will be given out at the receptionist. Technicians willensure all rules and
regulations of the business are followed to the latter.

12
CHAPTER FIVE

FINANCIAL PLAN
Source of capital of the business

SOURCE AMOUNT

Personal savings 300,000

Donations from friends and family 1,000,000

Loans from banks 13,700,000

TOTAL 15,000,000

5.1PRE-OPERATIONAL COST

ITEM COST

Research 2000

Transport 4000

License and permits 3500

Vehicle 700,000ss

Advertisement 20000

Installation 50000

Production facilities and capacities 353000

CCTV Cameras 254000

Utility bills 4000

Designing 5000

TOTAL 1185000

13
5.2:PROFOMA BALANCE SHEET
Balance sheet as at 31st December for the years 2024,2025,2026.

PARTICULARS YEAR2024 YEAR2025 YEAR2026

ASSET

FIXED ASSET

Land and building 400000 0 0

Motor vehicle 700000 0 0

Machine and 278000 278000 278000

equipment

Furniture and 39000 0 0

fixtures

TOTAL FIXED 1417000 278000 278000

ASSET

CURRENT
ASSETS

STOCK 9200000 9900000 10600000

Debtors 3800000 3270000 20300000

Cash at hand 2019800 1090400

Cash at bank 8000000 5098400

14
TOTAL 23019800 9458800 20300000
CURRENT
ASSET

TOTAL ASSET 24436800 9736800 20578000

LIABILITIES

Capital 1000000 0 0

LONG TERM
LIABILITIES

Loan 10000000 0 3700000

CURRENT
LIABILITIES

Creditors 4680000 4680000 4680000

Salaries and wages 5056800 5056800 5056800

Bank overdraft 3700000 0 7141200

TOTAL 13436800 9736800 16878000

CURRENT
LIABILITY

TOTAL 24436800 9736800 20578000

LIABILITY

15
5.3:WORKING CAPITAL
Working capital = Current Assets – Current Liabilities

YEAR 2024 2025 2026

Current Assets 23019800 9858800 20300000

Current 13436800 9736800 16878000

Liabilities

Working Capital 9583000 122000 3422000

16
 5.4: CASH FLOW PROJECTION
The table below shows the cash flow statement of the years as indicated on topof the tables.
CASH FLOW STATEMENT FOR THE YEAR 2024

Cash inflow Jan Feb M Apr May Jun Jul Aug Sep Oct Nov Dec TOTAL
ar

8860 225700 56180 81710 99640 11832 145030 1587100 1716900 1952200 2231300 12810600
0 0 0 0 00 0

Sales and 7000 7000 850000 80000 75000 70000 80000 750000 700000 800000 800000 850000 9200000
service 00 00 0 0 0 0

17
Credit 30 300 35 32 30 35 35 25 30 30 350 330 38
sales/s 00 000 00 00 00 00 00 00 00 00 000 000 00
ervices 00 00 00 00 00 00 00 00 00 00
0

Other
inflows

Total 10 100 12 11 10 10 11 10 10 11 115 118 13

cash 00 000 00 20 50 50 50 00 00 00 000 000 00
inflow 00 0 00 00 00 00 00 00 00 00 0 0 00
0 0 0 0 0 0 0 0 0 00

Cash 10 108 14 16 18 20 23 24 25 28 310 341 25

available 00 860 25 81 67 46 33 50 87 16 220 130 81
00 0 70 80 10 40 20 30 10 90 0 0 06
0 0 0 0 0 0 0 0 0 00

Cash
outflo
w

Salarie s 42 421 42 42 42 42 42 42 42 42 421 421 50

and 14 400 14 14 14 14 14 14 14 14 400 400 56
wages 00 00 00 00 00 00 00 00 00 80
0

Advert 20 20
isemen 00 00
t 0 0

18
Loan 39 390 39 39 39 39 39 39 39 39 390 390 46
payme 00 000 00 00 00 00 00 00 00 00 000 000 80
nt 00 00 00 00 00 00 00 00 00 00
0

19
Insura 20 20
nce 00 00
0 0

Utility 40 400 45 43 43 38 40 43 35 38 450 400 49

bills 00 0 00 00 00 00 00 00 00 00 0 0 00
0

Purch 43 435 43 43 45 43 43 43 45 45 500 450 53

ase 50 00 50 50 00 50 50 50 00 00 00 00 45
0 0 0 0 0 0 0 0 0 00

Repair 50 50 50 15
and 00 00 00 00
mainte 0
nance

Trans 40 400 45 55 50 45 40 40 53 45 500 550 55

port 00 0 00 00 00 00 00 00 00 00 0 0 80
0
Licens e 35 35
and 00 00
permit

Total 91 862 86 86 87 86 88 86 87 86 870 865 10

cash 14 900 39 47 07 32 29 32 02 47 900 900 45
outflo 00 00 00 00 00 00 00 00 00 46
w 00

Net 88 225 56 81 99 11 14 15 17 19 223 254 15

Cash 60 700 18 71 64 83 50 87 16 52 130 540 35
flow 0 00 00 00 20 30 10 90 20 0 0 60
0 0 0 0 0 00

20
CASH FLOW PROJECTION FOR THE YEAR 2025

Cash Ja Fe M A M Ju Ju A Se Oct Nov De TO

inflow n b ar pr ay n l ug p c TA
L

Openi 25 26 28 31 33 36 39 41 4 45 459 461 16

ng cash 45 7 60 44 45 23 05 20 3 73 184 474 8

40 60 00 60 00 90 00 30 4 41 00 00 36
0 5 5
0 0 0 0 0 0 0 00
0 3 40
0 0

Sales 80 80 85 80 90 85 80 85 8 80 800 850 99

and 00 0 00 00 00 00 00 00 0 00 000 000 0

service 00 00 00 00 00 00 00 00 0 00 00
0 0 0

0 0
0

Credit 25 25 30 27 25 30 30 20 3 25 300 300 32

sales/s 00 0 00 00 00 00 00 00 0 00 000 000 7

ervices 00 00 00 00 00 00 00 00 0 00 00
0 0 0

0 0
0

Other
inflow s

21
Total 10 10 11 10 11 11 11 10 1 10 110 115 13
cash 50 5 50 70 50 50 00 50 1 50 000 000 1
inflow 00 0 70
00 00 00 00 00 00 00 00 0 0
0 0 0
0 0 0 0 0 0 0 0
0 0 00
0

Cash 35 37 40 42 44 47 50 51 5 46 470 472 18

availa 95 2 10 14 95 73 05 70 4 78 184 974 1
ble 60 4 53
40 00 60 00 90 00 30 41 00 00
0 5 5
0 0 0 0 0 0 0 00
0 3 40
0 0

Cash
outflo w

Salari 42 42 42 42 42 42 42 42 4 42 421 421 50

es and 14 1 14 14 14 14 14 14 2 14 400 400 5

wages 00 40 00 00 00 00 00 00 1 00 68
0 4 0

0 0
0

Adver 20 20
tiseme 00 00
nt
0 0

22
Loan 39 390 39 39 39 39 39 39 39 39 390 390 468
payme 00 000 00 00 00 00 00 00 00 00 000 000 000
nt 00 00 00 00 00 00 00 00 00 0

Insura 20 200
nce 00 00
0
Utility 45 430 45 47 45 40 40 45 45 48 460 420 531
bills 00 0 00 00 00 00 00 00 00 00 0 0 00

Purch 50 450 45 48 45 49 45 46 45 45 500 450 516

ase 00 00 00 00 00 00 00 00 00 00 00 00 600
0 0 0 0 0 0 0 0
Repair 50 50 50 150
and 00 00 00 00
mainte
nance
Trans 50 530 45 55 52 45 43 45 53 45 500 550 591
port 00 0 00 00 00 00 00 00 00 00 0 0 00

Licens 35 350
e and 00 0
permit

Total 91 866 86 86 87 86 88 82 87 86 871 866 104

cash 94 000 54 96 11 89 47 50 12 57 000 100 441
outflo 00 00 00 00 00 00 00 00 00 00
w

Net 26 286 31 33 36 39 41 43 45 45 461 464 171

Cash 76 000 44 45 23 05 20 45 74 91 474 313 091
flow 00 0 60 00 90 00 30 30 10 84 00 00 300
0 0 0 0 0 0 0 0 00

23
 CASH FLOW PROJECTION FOR THE YEAR 2026

Cash J Feb M Apr M Ju Jul Au Se Oct Nov Dec TO TA

inflow a ar ay n g p L
n

Openi 46 46 46 46 47 47 47 47 47 48 482 48 568

ng cash 43 61 79 91 09 37 53 65 78 00 736 41 898
13 19 02 85 89 73 61 01 35 96 00 76 600
00 00 00 00 00 00 00 00 00 00 00

Sales 90 85 85 90 95 85 90 85 90 88 870 90 106

and 00 00 00 00 00 00 00 00 00 00 000 00 000
servic 00 00 00 00 00 00 00 00 00 00 00 00
e

Credit 20 20 15 15 20 18 10 15 20 25 150 10 203

sales/s 00 00 00 00 00 00 00 00 00 00 000 00 000
ervices 00 00 00 00 00 00 00 00 00 00 00 0

Other
inflows

Total 11 10 10 10 11 10 10 10 11 11 102 10 126

cash 00 50 00 50 50 30 00 00 00 30 000 00 300
inflow 00 00 00 00 00 00 00 00 00 00 0 00 00
0 0 0 0 0 0 0 0 0 0 0

Cash 47 47 47 47 48 48 48 48 48 49 492 49 581

availa 53 66 79 96 24 40 53 65 88 13 936 41 528
ble 13 19 02 85 89 73 61 01 35 96 00 76 600
00 00 00 00 00 00 00 00 00 00 00

24
Cash
outflo
w

Salari 42 42 42 42 42 42 42 42 42 42 421 42 505

es and 14 14 14 14 14 14 14 14 14 14 400 14 680
wages 00 00 00 00 00 00 00 00 00 00 00 0

Adver 20 20
tiseme 00 00
nt 0 0

Loan 39 39 39 39 39 39 39 39 39 39 390 39 468

paym 00 00 00 00 00 00 00 00 00 00 000 00 000
ent 00 00 00 00 00 00 00 00 00 00 00 0

Insur 20 200
ance 00 00
0

Utility 45 50 48 47 50 45 46 44 42 50 460 42 555

bills 00 00 00 00 00 00 00 00 00 00 0 00 00

Purch 50 50 50 48 45 50 45 46 48 45 550 50 582

ase 00 00 00 00 00 00 00 00 00 00 00 00 000
0 0 0 0 0 0 0 0 0 0 0

Repai r 50 50 50 150
and 00 00 00 00
maint
enanc e

Trans 50 53 55 55 52 53 50 48 53 46 500 55 620

port 00 00 00 00 00 00 00 00 00 00 0 00 00

25
License 35 350
and 00 0
permi t

26
 Total 91 87 87 86 87 87 88 86 87 86 876 87 105
cash 94 17 17 96 16 12 60 66 39 60 000 11 148
outflo 00 00 00 00 00 00 00 00 00 00 00 00
w

Net 46 46 46 47 47 47 47 47 48 48 484 48 571

Cash 61 79 91 09 37 53 65 78 00 27 176 54 013
flow 00 800

19 02 85 89 73 61 01 35 96 36 65
00 00 00 00 00 00 00 00 00 00 00

PROFORMA INCOME STATEMENT

Cash inflow 2024 2025 2026

Cash sales and 9200000 9900000 10600000

service

COST OF 0 0 0
GOODS

GROSS PROFIT 9200000 9900000 10600000

EXPENSES

Salaries and wages 5056800 5056800 5056800

Loan payment 4680000 4680000 4680000

Insurance 20000 20000 20000

Utility bills 49000 53100 55500

Purchase 534500 516600 582000

Repair and 15000 15000 15000

maintenance

Transport 55800 59100 62000

27
License and permit 3500 3500 3500

TOTAL CASH 10414600 10404100 10474800

EXPENSES

NET PROFIT -1214600 -504100 125200

TAXATION 10% -121460 -50410 12520

NET PROFIT -1093140 -453690 112680

AFTER TAX

BREAK EVEN ANALYSIS

Fixed cost YEAR YEAR YEAR

2024 2025 2026

Salaries 5056800 5056800 5056800

Loan 4680000 4680000 4680000

payment

Insurance 20000 20000 20000

Utility bills 49000 53100 55500

Purchases 534500 516600 582000

Repair and 15000 15000 15000

maintenance

Transport 55800 59100 62000

28
 License and 3500 3500 3500
permits

TOTAL 10414600 10404100 10474800

Variable cost

Opening cash 12810600 168365400 568898600

Sale and 9200000 9900000 10600000

services

TOTAL 22010600 178265400 579498600

5.5:DESIRED FINANCING

DESCRIPTION KSHS

Pre –operational costs 377,000

Working capital (Year 1) 1,100,000

Total 1,477,000

29
5.6:PROPOSED CAPITALIZATION

DESCRIPTION KSHS

Bank Loan 50,000

Owners’ equity
1,572,800
Bank overdraft
Creditors 100,000

50,000

Total 1,772,800

30