Lameck Business Plan

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BUSISNESS PLAN

BUSINESS NAME: KILUNDA CONSULTANCY SERVICES ON


FIXED BOUNDARY SURVEY IN KISII TOWN.

P.O BOX 83,

NYAMIRA.

EMAIL: kilunda122@gmail.com

PRESENTED BY: LAMECK MARUBE MONG’ARE

ADIMISSION NO: DLSS/2255/21

PRESENTED TO: THE KENYA NATIONAL EXAMINATIONS


COUNCIL IN PARTIAL FULFILMENT OF THE
REQUIREMENT FOR AWARD OF CERTIFICATE IN
DIPLOMA IN LAND SURVEY

SUPERVISOR: ANTHONY KIPRONO

DATE: JULY, 2024


Declaration

I, declare that this work of a business plan is my original work and has never been submitted
to the Kenya National Examination Council (KNEC) in any Institution.

Student Name: ………………………………………………….

Date: …………………………………………………………….

Signature: ……………………………………………………….

Supervisor Name: ……………………………………………….

Date: ………………………………………………………………

Signature: …………………………………………………………

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Acknowledgements

First, I would like to thank God who has been the ideal of doing research in this Business
plan. I also take this opportunity to acknowledge my lecturer of Ekerubo Gietai Institute for
impacting me with the knowledge of survey.
Also, I have to acknowledge my family members since they gave the support which
enabled me to acquire the skills of survey.

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2.4 Dedication

I dedicate this business plan to my entire family members, the entire staff of survey
department, my supervisor, my lecture at Ekerubo Institute and all those who gave me their
hand for support so that to make my plan end successfully.

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Executive summary

Chapter one. Business description. In this chapter, a description of the business name,
business ownership and registration type of the business and the goals of the business where
the business is described into details. It talks of the type, location, form of ownership, the
general consultancy that will have different types in it such as strategy consultant,
management consultant, operations consultancy, financial advisory consultant, human
resource consultancy and IT consultant and the services that are offered in the business will
be helping the clients achieve their business goals by providing expert advice in their field of
proficiency in finance, sales operations customer services, accounting and financial planning,
and business development, justification of opportunity, industry, the goals of business and
entry and growth strategy.

Chapter two. Marketing plan. Deals with marketing plan objectives, where it describes the
target customer, the market shares and segments, competitors, pricing strategy, sales tactics
and distribution of these services are also discussed in this chapter. The share of market
depends on the selling tactics and the personnel employed to offer services.

Chapter three. Organization plan. It explains management team of an organization other


business personnel, deals in recruitment, training and promotion of employees in an
organization or business, remuneration and incentives of employee motivation, describes
how the licenses, permits and by-laws are obtained and the support such as the banking
services, insurance services, consultant services and finally the legal requirement services.

Chapter four. Production plan. This chapter complies with production plan on the business.
It describes the production facilities and capacity, the production strategy, production
process, production affecting operations and finally describes the environmental regulations
where the business is urged to adhere to the environmental rules for safe continuity of the
business.

Chapter five. Financial plan. This chapter deals in the business finance where it describes the
source of business capital, the way this capital is utilized for more profits to be achieved thus
expansion of this business into more branches or living earning. It describes the objectives of
the financial plan, the pre-operational costs, and the pro-forma balance sheet, working capital
of the business, the cash flow projections, the pro-forma income statement, break-even

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analysis, the desired financing and the capitalization and finally, the probability ratios of the
business

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Table of Contents
Declaration.............................................................................................................................................i
Acknowledgements...........................................................................................................................ii
Dedication.........................................................................................................................iii
CHAPTER ONE …………………………………………………………………………………………………………………………………..3

1.1 Background of the business ……………………………………………....…………………………………………………….…3

1.2 Business name ………………………………………………………………………………………………………………………….…3

1.3 Business Location and Address........................................................................................................3


1.4 Form of business ownership..............................................................................................3
1.5 Type of business ………………………………………………………………………………………………………………………….3

1.7 Goals of business...................................................................................................................5


1.8 Entry growth strategy........................................................................................................5
CHAPTER TWO.......................................................................................................................................7
2.0 MARKET PLAN..............................................................................................................................7
2.1 Customers................................................................................................................................7
2.2 Market Share.....................................................................................................................7
2.3 Competition.......................................................................................................................8
2.4 Methods of Promotion and Advertisement.............................................................................9
CHAPTER THREE ………………………………………………………………………………………………………………………………10

3.1 Customers ………………………………………………………………………………………………………………………………...10

3.2 Market shares ……………………………………………………………………………………………………………………………10

3.3 Competition ………………………………………………………………………………………………………………………………10

3.5 Pricing............................................................................................................................................10
3.6 Sales Tactics.....................................................................................................................10
CHAPTER FOUR ...................................................................................................................................12
4.0 ORGANIZATION AND MANAGEMENT PLAN...............................................................................12
4.1 Management team................................................................................................................12
4.2Production Strategy................................................................................................................16
4.4 Production affecting operation..............................................................................................18

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CHAPTER FIVE......................................................................................................................................19
5.0 FINANCIAL PLAN........................................................................................................................19
5.2 Pre-operational cost..............................................................................................................19
5.4 Working capital..............................................................................................................................21
5.8 Desired financing...................................................................................................................26

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CHAPTER ONE

1.0 BUSINESS DESCRIPTION


1.1 Background of the owner.

The proposed business name will be Kilunda Consultancy services on fixed boundary survey,
23 years old, single, address being Kilunda Consultancy 264, Nyamira I being a trader with
Certificate in Land Survey and I will also have an experience of four years in trade industry.

1.2 Business name


The proposed business name will be Samantha Consultancy Services. The name will be
chosen simply because I wanted to make the society aware that I use the knowledge I have
gained over land survey issues. That is why I will use land survey terminologies to identify
my business in the society.

The business owner’s logo will

KILUNDA CONSULTANCY SERVICES ON

BOUNDRY SERVICE.

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1.3 Business Location and Address

The business will be located at Birongo bus stage. The site will be selected because it will
have good in security sector and the same business had no stiff competition.

The address of the business owner will as be shown below;

KILUNDA CONSULTANCY

P.O BOX 264,

NYAMIRA.

EMAIL: kilunda122@gmail.com

Phone no. 0700908483

1.4 Form of business ownership

The business will be a sole proprietorship type. This form refers to where one person
undertakes a business alone. This form of business has the following advantages; decision
making will be quick since the decision is easier, enjoys all the benefits made in the business,
provides opportunity of being an employer and had self-actualization it gets flexibility to start
or change the enterprise and its disadvantages are; suffer losses alone, slow decision making
and closure in case of any absence from job.

1.4 Type of Business.


The type of business will an on-going business that is under control of Samantha as the
manager of her own. The main activities were; selling Survey accessories and, offering
services such as helping the clients achieve their business goals by providing expert advice in
their field of proficiency in finance, sales operations customer services, accounting and
financial planning, and business development. The operation started from 8:00 am to 6:30 pm
due to security that might hinder to limited of time.

1.4 Services and services

The main activities were; selling Survey accessories, offering services that business will be
helping the clients achieve their business goals by providing expert advice in their field of

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proficiency in finance, sales operations customer services, accounting and financial planning,
and business development.

The business offered quality, quantity, durable and economical products and services. This
enticed many customers as they were interested in quality goods and services on a fair price.
This business deals in servicing of its commodities also. It dealt in wholesale trade, retail and
individual trading to make more profits.

Types of consultants in the general Samantha business:

i. Strategy consultant,
ii. Management consultant,
iii. Operations consultancy,
iv. Financial advisory consultant,
v. Human resource consultancy and
vi. Its consultant

1.5 Justification of opportunity

The business will be chosen because I saw the available lying resources and had enough
experience. Therefore, inspired to use the skills and knowledge availed. The business will
favorable thus encouraged to carry it at this set site.

Due to advanced skills in workshop technology by the entrepreneur the sales of the customers
will be easily made. The management will create good public relations to customers in order
to show friendly image of the enterprise. Reasonable price of goods and services will be
provided to attract more customers in order to maintain a good profit margin. Good sanitation
and high-quality hygiene will be maintained

1.6 Industry
The business dealt in trading industry where it carried out its activities at Birongo Town. The
business had competition from two other businesses of the same line. The business overcame
these competitions through many methods such as advertisement, promotion to its
employees, incentive and other benefits.

The business acquired money for support services from friends, family members and loans
from banks. The share of capital will as below;

Sources Ksh.

Owner’s capital 600,000

Loans from bank 200,000

Friends 100,000

Family 100,000

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1.7Goals of business
1.7.1 Goals

The business intended to work extra hard to earn more and open more branches in the world.
This made me work harder for I to achieve these long-term goals at the end of the day.

1.7.2 Objectives

The business wanted to maximize profits, increase sale and minimize costs to ensure that the
business is successful and helps me earn a living. This will enable me strive hard to make
more sales.

1.8 Entry growth strategy

1.8.2 Entry plan.


The business penetrated into the market through the employment of qualified
personnel, better pricing, promotions, discounts and through the commissions’
benefits offered. These benefits enabled the business enter into the market.

1.8.3 Growth plan


The profits achieved at the end of the day symbolled that the business had grown.
These profits were used in salary giving, purchasing of the stock and other expenses
incurred by the business owner thereby making the business move with ease.
The employees were paid well since the profits were experienced and manned well
under the
Leadership of Samantha as the business owner

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The table below shows the Justification of Business Opportunity Factors

PERSONNEL RESOURCE ENVIRONMENTAL REMARKS

i. Obtaining income i. Easily available i. Population provides I. The business is


ii. To gain experience ii. Are high on demand Ready market successfully growing
iii. Exploring new and ii. Available supplies and profit making
trending services iii. Low competition
iv. Learning new iv. Good infrastructure
business technology v. Reduced competition

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CHAPTER TWO

2.0 MARKET PLAN


2.1 Customers

The business will be dealing in wholesale trade, retail and individual trade. But the most
customers were of retail and wholesale trade. The business purchased more whole goods to
meet the market expectations of wholesale purchasers. The business too repacked the large
quantities into smaller quantities for the retailers and individuals. The customers will receive
goods and services daily and weekly as from 8:00 am to 6:00 pm. Services that are of high
demand must be done always despite the fluctuation of electricity by using another
alternative source of power such as automatic generator and inviters.

2.2 Market Share

Since the business fully penetrated into the market, its market share will medium where it
sold almost three quarters units per quarter. The same businesses were not able to reach the
Samantha business thereby, thee business had best performance.

The businesses penetrated into the market and had shares as follows.

Before the business penetrated into market

Samantha Manu’s land Kama’s

Services levelling services consultancy services

Sales 50,000 30,000 39,000

Market share 50% 30% 39%

After the business penetrate into the market

Samantha Manu’s land Kama’s

Services levelling services consultancy services

Sales 50,000 30,000 39,000

Market share 44% 34% 34%

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2.3 Competition

The potential competitors of the proposed business will be three and these include;

The three competitors are medium size business who can offer moderate competition.

i. Samantha Consultancy services


ii. Manu’s land levelling services
iii. Kama’s consultancy services

The Samantha business saw need to determine the strengths and weaknesses of the business
offering the same business for competition reasons. It will be adhered to the customer advices
thus successful in the business field. The table below shows the strengths and weaknesses of
the business of the same line.

Competition

Strengths Weaknesses Opportunities Threats

Samantha The presence of . Presence of High population Availability of


Consultancy reasonable prices. competitors in its location. similar business
services
and new entry of
The site is best Due to the other business.
presence of
Better Improved selling
communication technology.
skills
Presence of
After sale large market
services offered share

Kama’s Favorable and Poor customer Availability of Outdated selling


consultancy low prices thus relations. frequent technology.
services
loss incurred. customers.

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Unstable prices.
Employees
flexible. Lack of
experience of
workers.
Long term Offer high Availed of Presence of
employee prices for their Improved Economical
Manu’s land experience. services. technology. changes of
levelling services customers.
. Located at a Lack of
strategic place. flexibility.

2.4 Methods of Promotion and Advertisement

The business will indeed of being known in the society. Therefore, he used median in his
advertisement. The local radio stations were used in the broadcasting such stations included
Egesa and Minto FM and Citizen T.V.

Availability of posters and bill boards were also used for those who never used the local radio
stations. These methods were not expensive thus preferred in the advertisement.

Advertisement increased sales due to the fact the goods and services offered by the Samantha
business were known by many not only in the locality but worldwide. Customers from
different parts helped me gather beneficial information concerning the services offered. This
enabled me offer the best and needed goods and services as per the consumer tastes and
preferences.

Free samples were given to customers as promotions thus enabled the business to sell more
newly introduced goods and services.

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2.5 Pricing

The best and favorable prices were offered to maintain customer and attract more customers
to the business. It considered the actual prices and thus set my prices for people thus charged
fairly to promote the consumers and the retailers who were repacking and selling.

The following factors will influence the setting of the prices

i. Nature of the competition


ii. Income of the clients targeted
iii. Cost of raw materials
iv. Prevailing market prices

The business will offer credit facilities were offered to the most regular customers. This
encouraged customers to buy frequently from this business thus retained of customers and
attraction of irregular customers thus more sales.

Also, cash discounts were offered to the prompt payers. This encouraged customers to buy
cash for them to be given discounts.

Trade discounts were also offered to those customers who buy in large quantities. This
encouraged customers to buy in large quantities. Therefore, the customers were retained due
to the presence of these discounts.

After sale benefits such as transport were offered to the customers of the business. Therefore,
more bulky purchasers were attracted to buy from I thus benefit from transportation to save
the transportation costs.

2.6 Sales Tactics

The business used personal sales tactics as it promotes price of the product and services sold
in the business premises. This will avoid companies from customer. Though it will be
personal services and selling, the business will employ other personnel for efficient selling to
be achieved.

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2.7 Distribution Strategy

The business will have a driver who helped in the distribution of goods to customer door
steps. This will be enhanced to assist bulky purchasers.

Due to the presence of road transport, the business will offer the only effective means
available due to the availability of a tarmacked road. This presence of well tracked roads,
eased transport. The transportation will be done by the pickup.

The transporter encountered bad weather problems and traffic jam. This slowed the
transportation race of the business which might lead to delayed services. This mean that the
business should have a pack up for efficient transportation.

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CHAPTER THREE

3.0 ORGANIZATION AND MANAGEMENT PLAN.


3.1 Management team

The business had the business owner as the manager of the business. It had four personnel to
operate the business.

3.1 The manager

Duties and responsibilities

i. Decision making
ii. Paying of salaries
iii. Signing for the purchases.

Qualifications

i. Degree holder of Human Resource Management


ii. Have entrepreneurship skills
iii. Have an experience of four years

3.1.2 Human Resource manager


Duties and responsibilities

i. Diploma holder of sales and marketing


ii. Have ability of tasting goods and services before making purchases
iii. Experience of more than two years

3.2 Other personnel.

Title No. Qualifications Duties

Marketing manager 1 Diploma in sales and Repacking of


goods.

Marketing Setting of prices

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Human Resource manager 1 Diploma holder of Ordering goods

Supply chain Stock controlling

Management

3.4 Recruitment, Training and Promotion


3.4.1 Recruitment

Recruitment and training are essential for successful attaining of the organizational goal. The
firm had recruited its employees one month before the commencement of the business. The
business manager advertised the vacant posts. Then the interested persons applied for the
jobs. The manager conducted shortlisting. After the shortlisting, the shortlisted candidates
were notified through letters. They were called for interviews. Then, the best candidates were
told to report the job immediately so to avoid time wilting.

The manager ensured that the best candidates were selected to ensure best performance and
thus more sales achieved. The situation of best candidates led to performance of the business
that the same line businesses.

The firm will recruit its employees after a period of 5 years. Thus, will be done through

i. Advertisement –the firm will use posters and radio stations for conveying
information in the wide range.

ii. Interviews – this will be done according the rules and regulation made by the
firm regarding who is to be interviewed and requirement he/she should have, a
curriculum vitae and the certificate to show the qualifications.

iii. Selection and orientation – this will be done to successful applicants. Those
selected will be oriented depending on one’s area of operations. They shall be
given the procedure of work and rules governing the firm.

3.4.2 Training

The firm had organized for on the job, off the job and induction trainings so as to better sales
activities. Job trainings increased the skills of the employees after every two years to better
performance. This had changed the sales to a higher level.

3.4.3 Promotion

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I will decide to promote his employees honestly and transparently to ensure that those who
worked harder were benefiting from their hard work therefore motivated.

Equitability in the business also motivated workers to put more effort in work since they felt
honored equally by the manager.

3.5 Remuneration and Incentives

3.5.1 Remuneration

Kilunda business employees where be paid according the academic qualifications and the
years of work due to increased salaries. Salaries will give at the end of every month and
allowance will also be available before the end of the month on when employees needed
them.

3.5.2 Incentive

The firm will ensure that the employees provided with some incentives to keep them
motivated and hence work harder to attain the targeted goals. The incentives that aware used
in the business were;

i. Bonus
ii. Commission
iii. Lunch
iv. Tea and overtime allowances.

3.6 License, permits and by-laws


3.6.1 Licenses

The Samantha firm obtained a license from the council of municipal to notify the local
government that the firm will in operation and that it will be registered as any other business.
This created awareness of the business thus authorized.

3.6.2 Permits

The firm will be registered by the ministry of trade therefore permitted to be carried out in the
area according to the registration number.

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3.6.3 By-laws

The business will be urged to adhere to the county council’s by-laws for it to operate well
without interruptions and this created confidence of the business to be carried out safely thus
more sales since the business worked under the government’s rules and regulations.

3.7 Support services

The business needed some support from supportive bodies for it to grow faster and achieve
the intended goal. These supportive bodies were;

3.7.1 Banking services

The firm will a family bank member. It opened an account with family bank and it
kept on borrowing, depositing and withdrawing money for business activities from there.
This eased business since business dealt well in the presence of enough money.

3.7.2 Insurance services

The firm will be insured against theft and fire. This put business at a safer side because these
accidents will make business collapse total.

3.7.3 Consultancy services

The firm had a consultant company for advice reasons. This company kept on informing the
firm matters concerning business, how to improve and maintain business and also to open
more other similar branches under the Samantha business.

3.7.4 Legal services

The firm had a lawyer. The lawyer will in charge of legal services of the firm such as;
drafting of the legal letters, and writing of contracts among other duties.

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Chapter four
4.0 Operational/Production Plan
The business had modern equipment facilities for the business operations. Normally, there
will hardware that were used previously. Due to change of technology the workshop will
updated with new technology hardware and other modern services.

The firm acquired the following equipment’s for service and repair; Survey accessories,
building materials, Pipes and joineries that are modern as per the technology.

Equipment Number Supplier Cost per Total Cost


Unit

Survey 4 Makita company 7,000.00 14,000.00


accessories
IT accessories 4 Costello company 4,000.00 6,000.00
and materials ltd

A computer 1 Lamella company 44,000.00 44,000.00


limited

Other Survey 5 In survey 18,000.00 90,000.00


materials company services

Total 73000 154000

4.2Production Strategy
The firm adopted effective methods of production. The firm’s services were purchased while
sealed to avoid inconveniences of the goods bought. The commodities that were purchased
and in wholesale were of the best quality, quantity, economy, appearance and durable. This
made more purchasers keep on trading with this firm thereby more sales experienced by the
firm. The services were purchased twice a week. After deliveries were made, they were
repacked for retail sales and individual sales from the Samantha firm.

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The stock will be controlled by the manager where he used to take stock records after very
week. This encourage honest sales since other employees were aware that the business owner
knows the stock sold and the balance of the stock.

4.3 Production Process

The firm’s services were purchased direct from manufacturing companies because the firm
dealt in large quantity goods and services and then resold to retailers and individual
customers at large.

The stages involved in business were;

i. Before acquiring any product for the business, registration document is made to
enable
distinguish services that are out of stock and in stock.
ii. Inquiry letter will be sent to the supplier to inquire whether the required goods are
favorable prices are available.
iii. If the services were available, the purchasing department were to make purchasing
order and send it to the supplier.
iv. The product will be transported via the roads to the proposed business premises with
an invoice describing the pricing and quality of goods purchase and other services for
them.

The firm will be affected by external factors. The factors that were affecting production
were the challenges of production;

These are some of the problems that the firm will encounter.
i. High inflation in the county – this forced the firm to use large amount of money to
purchase a small quantity of goods.
ii. Competition – since the competitors are already established business the firm had to
sell its product and services at a cheaper price to cub the stiff competition.
iii. High transportation costs. The firm offered transportation of its product at a high cost
of transportation due to increase price of fuel in the county.

Minimizing External Factors

The firm had;


1. Increase the production capital by borrowing loans from Family Bank and this
enabled.

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2. The firm to purchase a big quantity of high goods so as to have enough stock.
3. The firm provided a reasonable selling price so as to compete with other competitors.
4. The firm practiced economical order quality so as to minimize cost of the business
activities by obtaining offers from suppliers.

Internal Factors Affecting Production

Some of the internal factors that affect the firm’s product are;
i. Offering credit services to customers
ii. Profit and loss calculation errors

4.4 Production affecting operation

4.4.1 Health regulation


The firm ensured that it adhered to the healthy rules and regulations for it to work smooth. It
acquired its services from the certified companies such as KEBS and others so as to ensure
selling of authorized goods and services.

4.4.2 Safety
The firm had a First Aid Kit for safety purposes in case of any accident. This motivated its
workers. The workers were wearing boots, dust coats and other safety measures taken for
safety lives.

4.4.3 Environmental regulations


The firm kept the environment clean by not burning its wilts and dumping wilts into water
sources such as rivers. This ensured environment safety.

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CHAPTER FIVE

5.0 FINANCIAL PLAN


5.1 Objectives of the financial plan
I. Maintain a healthy liquidity position throughout the trading period

ii. Maintain and control expenses

iii. Maintain an effective accounting system

5.2 Pre-operational cost

The firm’s expenses incurred before the business commences the actual production is as
listed below.
ITEM AMOUNT IN (KSHS)
Starting inventory 416,400
Advertising and information 10,000
Machinery and equipment 66, 4260
Telephone deposit 20,000
Renovation and modeling 40,000
Project research expenses 20,000
Miscellaneous expenses 4,000
Furniture and fittings 14,000
License permits and by-laws 10,000
Water deposit 70,000
Electricity deposit 180,000
Staff uniforms 14,000
Shop 20,000
Design and decoration 10,000
Cash machine 14,000
Total amount 2,649,760

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5.3Kilunda Consultancy Pro-forma balance sheet.
Balance sheet as t January 2024
Assets (fixed)
Building at cost 500,000
Land 200,000
Motor vehicle 100,000
Less depreciation 4,000
+

Less depreciation 1,000


646,000
Current assets
Stock 900,000
Cash at bank 200,000
Cash at hand 100,000
Creditors 44,000
Prepayments 10,000
1,264,000
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Less current liabilities
Creditors 44,000
Bank overdraft 54,000
Working capital 90,000
Opening capital 940,000
Net profit 10,000
Closing capital 820,000
Loans 500,000
2,170,000

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5.4 Working capital

Working capital is the current assets – current liabilities


WC = CA – CL
Current assets
Stock 900,000
Cash at bank 200,000
Cash at hand 100,000
Creditors 33,000
Prepayments 10,000
1,263,000

Less current liabilities


Creditors 33,000
Bank overdraft 33,000
Working capital 90,000
Working capital 600,000

Therefore, WC= CA – CL = 1,263,000 - 600,000


= 660,000

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5.5 Kilunda Consultancy Cash flow project
Cash flow projections for the year 2024
RECEIP JAN FEB MARC APR MAY JUNE JULY AUG SEP OCT NOV DEC
TS H
Loan 43000 30000 43000 34200 38300 32000 43000 33300 44000 34300 34000 46000 45510
04551
00
Sales 6000 43000 33000 43000 36000 36300 36300 47000 43300 48000 48300 39000 45920
0
Debtors 2000 2000 1230 1260 1200 1230 2300 3300 1000 1300 1000 3400 21220
Discount 6000 7300 8920 8700 960 8300 7400 3300 4300 3200 4100 300 62780
received
Totals 5700 8230 86150 8716 7646 7783 89000 8690 92600 86800 8740 88700 99830
0 0 0 0 0 0 0 0

PAYMENTS

RECEIPTS JAN FEB MARC APR MAY JUNE JULY AUG SEP OCT NOV DEC totals
H
Purchases 20000 20000 22000 21000 22000 20600 20000 20000 22000 20200 26000 27000 260800
Salaries 10000 16000 22200 12000 12200 22200 12000 12000 21200 22000 27200 16000 205000
Creditors 1000 2000 2020 2160 2200 1020 1220 1260 1200 1820 1700 1820 19420
Discount 200 820 720 200 820 820 720 200 800 200 200 200 5900
allowed

3120 38820 46940 3536 3722 4464 3394 33460 4520 4422 5510 4502 49112049
0 0 0 0 0 0 0 0 0 1120

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RECEIPTS JAN FEB MAR APR MAY JUNE JULY AUG SEP OCT NOV DEC
CH
Cash flow 27200 22700 22900 21600 26220 20260 72110 21720 26100 21220 22100 22660

Cash flow projections for the year 2025

RECEIPTS JAN FEB MAR APR MAY JUNE JULY AUG SEP OCT NOV DEC
CH
Loan 22890 20220 21200 28200 21200 22000 22000 22200 26000 22200 22000 26000 27611
0
Sales 20200 22000 21220 28020 22600 22200 28200 22200 28200 21200 28200 29000 29324
0
Debtors 22000 12000 9200 22600 22000 22200 22000 12200 12020 12220 12200 12200 19284
0
Discount 7220 7200 2220 7222 220 2100 7220 2200 2200 2200 2700 2220 44922
received
Totals 7231 6142 5384 86042 92200 68500 79420 5880 68420 5782 65100 6942 80711
0 0 0 0 0 0 2

PAYMENTS

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RECEIP JAN FEB MARC APR MAY JUNE JULY AUG SEP OCT NOV DEC totals
TS H
purchase 21000 21000 22000 62000 22000 22600 22000 26000 27000 28200 29000 22000 324800
s
Salaries 22620 22890 22620 21900 21800 12700 78200 28700 27810 20800 28720 27800 336560
Creditors 2620 2220 2020 2220 2200 6220 7200 9200 2200 2220 1220 1220 40760
Discount 220 228 269 220 820 820 820 620 200 270 627 280 5394
allowed
TOTALS 4646 46338 46909 8634 4682 4234 1082 64520 5721 5149 5956 5130 707514
0 0 0 0 20 0 0 7 0

RECEIPTS JAN FEB MAR APR MAY JUNE JULY AUG SEP OCT NOV DEC
CH
Cash flow 27110 22882 12822 2620 12220 66220 12220 97100 27280 2820 27280 10720

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Cash flow projections for the year 2026

RECEIP JAN FEB MAR APR MAY JUNE JULY AUG SEP OCT NOV DEC
TS CH
Loan 26000 26200 26200 27200 28200 22200 22220 22220 22210 22200 22270 22700 28982
0
Sales 71220 22780 61000 62000 22200 72200 22000 22000 22200 82000 22220 28200 51002
0
Debtors 8200 900 1020 1160 1200 2220 1200 1220 2000 1220 2200 1220 23760
Discount 1000 820 822 960 820 820 700 620 610 600 600 200 8572
received
Totals 1064 5070 8904 9132 5242 9744 4612 46060 47020 10602 47290 5232 83217
20 0 2 0 0 0 0 0 0 2

PAYMENTS

RECEIPT JAN FEB MARC APR MAY JUNE JULY AUG SEP OCT NOV DEC totals
S H
Purchases 22280 22260 20000 21220 22220 22220 22220 22690 22780 22200 26000 27000 273090
Salaries 8260 12280 19200 22820 20200 22200 22720 22000 22200 22220 28200 22280 273090
Creditors 2890 2780 1260 2160 2200 1220 2200 2220 1200 1220 2200 1220 22770
Discount 8620 800 820 800 820 800 700 600 600 600 600 200 15960
allowed

4205 3812 41280 4700 4544 4644 4784 47510 4678 4624 5700 5070 584910
0 0 0 0 0 0 0 0 0 0

28
RECEIPTS JAN FEB MAR APR MAY JUNE JULY AUG SEP OCT NOV DEC
CH
Cash flow 62270 62210 27822 61060 9820 62990 22260 28760 29220 79220 12120 22220

5.6 Kilunda Pro-Forma Income Statement

ITEM YEAR 2025 YEAR 2025 YEAR 2026

Sales 568000 551070 7152250

Cost of sales 600000 592500 608000

Gross profit b/d 55660 10720 22520

Salaries and 252200 527880 255710


wages

Rent 20000 20000 20000

Water bills 70000 70000 70000

Telephone bills 20000 20000 20000

Postage bills 10000 10000 10000

Transport 25000 20000 50000

Total expenses 1620860 1822170 8208480

29
5.7 Breaking even point
B.E.P = Fixed cost
Contribution

= 8278580×100
162800

=50.85

2.4 5.8 Desired financing

Item cost

Pre-operational cost 1,659,760

Working funds 660,000

Fixed assets 656,000

2,975760

30
5.9 Capitalization
Item Amount

Owner’s contribution 1,000,000

Borrowed funds 500,000

Total investment 1,500,000

31

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