BUSINESS PLAN FOR ANN'S PINEAPPLE JUICE

NAME : SHIHUNWA ANAH

KHANGUHA

SUPERVISOR : MR. DAVID MADAGA

PRESENTED TO: THE KENYA NATIONAL EXMINATION COUNCIL FOR THE

PARTION FULFILMENT FOR THE AWARD OF CRAFT CERTIFICATE IN
SOCIAL WORK AND COMMUNITY DEVELOPMENT

INSTITUTION : THE SHAMBERERE NATIONAL POLYTECHNIC

DEPARTMENT : LIBERAL STUDIES

COURSE : CRAFT CERTIFICATE IN SOCIAL WORK

AND COMMUNITY DEVELOPMENT

EXAM SERIES : NOVEMBER 2023

ADMISSION NO : 8348

INDEX NO : 6141010283

EMAIL : [email protected]
 DECLARATION
I hereby declare that this business plan is my original and true record of my work and has not
been or submitted for a word of my any certificate program me in the institution.

NAME OF STUDENT : SHIHUNWA ANAH KHANGUHA

SIGN…………………………………

DATE………………………………..

SUPERVISOR : MR DAVID MADAGA.

SIGN…………………………………

DATE………………………………

i
 ACKNOWLEGEMENT
I would like to acknowledge Mr. David Madaga for giving me instruction to write above
business plan up to the end.And also thank my parents Mr. and Mrs. Shihunwa for the effort
they have made.

ii
 DEDICATION
I dedicate this business plan to my family for their financial support toward my education

iii
 EXECUTIVE SAMMARY
CHAPTER ONE

It entains an over view of business Description whereby business shall bear the name ANN'S
PINEAPPLE JUICE. It will be under sole proprietorship by SHIHUNWA ANAH
KHANGUHA . I will be located Kakamega county near Shikusa Prison.

CHAPTER TWO

It entails marketing plan whereby the enterprise targeted customers will be from local residence.
11/9/2023.They will be reached through promotion and advertisement of goods

CHAPTER THREE

The organization plan contains qualified employees and stating capital in term of salary of each
employee controlled by manager assisted by her supervisor in making decision.

CHAPTER FOUR

In operational plan, the business is determined to assist training students and other local people
at lower on how to hand the juice business.

CHAPTER FIVE

In financial plan, the business will obtain its starting capitals from the owners personal saving
friend’s donation and Bank.

iv
 Table of Contents

DECLARATION.......................................................................................................................................................i
ACKNOWLEGEMENT............................................................................................................................................ii
DEDICATION........................................................................................................................................................iii
EXECUTIVE SAMMARY........................................................................................................................................iv
CHAPTER ONE......................................................................................................................................................1
1.0 BUSINESS DESCRIPTION.............................................................................................................................1
1.1 BACKGROUND OF THE OWNER.................................................................................................................1
1.2 BUSINESS NAME AND LOGO.....................................................................................................................1
1.2.2 BUSINESS LOGO..................................................................................................................................1
1.3 BUSINESS LOCATION AND ADDRESS.........................................................................................................1
1.3.1 BUSINESS LOCATION..........................................................................................................................1
1.3.2 BUSINESS ADDRESS............................................................................................................................2
1.5 TYPE OF BUSINESS.....................................................................................................................................3
1.6 PRODUCTS AND SERVICES.........................................................................................................................3
1.6.1 PRODUCTS..............................................................................................................................................3
1.7 JUSTIFICATION OF THE BUSINESS OPPORTUNITY.....................................................................................3
1.8 INDUSTRY.................................................................................................................................................. 3
1.9 GOALS AND OBJECTIVES............................................................................................................................3
1.9.1 GOALS.................................................................................................................................................3
1.10 ENTRY AND GROWTH STRATEGY........................................................................................................4
CHAPTER TWO.....................................................................................................................................................5
2.0 MARKETING PLAN.....................................................................................................................................5
2.1 POTENTIAL CUSTOMERS...........................................................................................................................5
2.2 COMPETITORS...........................................................................................................................................5
2.3 MARKET SHAPE AND SIZE..........................................................................................................................6
2.4.1 Market Shape.....................................................................................................................................6
2.4 METHODS OF PROMOTION AND ADVERTISEMENT..................................................................................7
2.4.1 PROMOTION METHODS.....................................................................................................................7
2.4.2 ADVERTISEMENT METHODS..............................................................................................................7
2.5 PRICE STRATEGY........................................................................................................................................8
2.6 SALES TACTICS...........................................................................................................................................8
2.7 DISTRIBUTION STRATEGY..........................................................................................................................8
CHAPTER THREE...................................................................................................................................................9
3.0 ORGANIZATION PLAN................................................................................................................................9

v
 3.1 ORGANIZATION STRUCTURE.....................................................................................................................9
3.2MANAGEMENT TEAM................................................................................................................................9
3.3 OTHER PERSONNEL...................................................................................................................................9
3.4 RECRUITMENT, TRAINING AND PROMOTION.........................................................................................10
3.4.1 Training.............................................................................................................................................10
3.4.2 Promotion........................................................................................................................................ 10
3.5 REMUNERATION AND INCENTIVES.........................................................................................................11
3.5.1 Remuneration............................................................................................................................11
3.5.2 Incentives.........................................................................................................................................11
3.6 LICENSE AND PERMITS............................................................................................................................11
3.6.1 License..............................................................................................................................................11
3.6.2 Permits.............................................................................................................................................11
3.7 SUPPORT SERVICES..................................................................................................................................11
3.7.1Banking services................................................................................................................................11
3.7.2 Electricity service..............................................................................................................................11
3.7.3 Insurance services............................................................................................................................12
3.7.4 Postal services..................................................................................................................................12
CHAPTER FOUR..................................................................................................................................................13
4.0 OPERATIONAL PLAN................................................................................................................................13
4.1 PRODUCTION OF SERVICE DESIGN AND DEVELOPMENT........................................................................13
4.2 PRODUCTION FACILITIES AND CAPACITY................................................................................................13
4.3 FIRM LAYOUT.......................................................................................................................................... 14
4.4 OPERATIONAL STRATEGY........................................................................................................................14
4.5 OPERATIONAL PROCESS..........................................................................................................................14
4.6 REGULATION AFFECTING OPERATION.....................................................................................................14
4.7 EQUIPMENT OR MATERIAL OPERATION.................................................................................................15
5. 0 FINANCIAL PLAN.....................................................................................................................................16
5.1 PREOPERATIONAL COST..........................................................................................................................16
5.2 ESTIMATION OF WORKING CAPITAL.......................................................................................................16
5.5 PROFORMA INCOME STATEMENT...........................................................................................................20
5 .6 CALCULATION OF BREAK EVEN POINT....................................................................................................21
5.7 CALCULATION OF PROFITABILITY RATIOS 1) Gross profit.......................................................................21
5.8 DESIRED FINANCING................................................................................................................................21
5.9 PROPOSED FINANCING SOURCES............................................................................................................21
5.3.2 PROFOMA INCOME STATEMENT FOR YEAR TWO 2027...................................................................22
5.3.3 CASH FLOW STATEMENT FOR THIRD YEAR 2028.............................................................................24

vi
 CHAPTER ONE
1.0 BUSINESS DESCRIPTION
1.1 BACKGROUND OF THE OWNER
The business owner was born in Kakamega County, Malava Sub-county, she was born in 2003
July 6 in western province. She is a single Kenyan working in manufactured company limited.
Entrepreneur is pursuing craft certificate in social work and community development from
Shamberere Technical training Institute .This education has provided her with enough and
adequate skills in entrepreneurship and financial management which help in effective
management of business.

1.2 BUSINESS NAME AND LOGO

1.2.1 BUSINESS NAME

The business name will be ANN'S PINEAPPLE JUICE.

1.2.2 BUSINESS LOGO

The business logo will use following to act as a logo

1.3 BUSINESS LOCATION AND ADDRESS

1.3.1 BUSINESS LOCATION
The business will be located in Kakamega County it will be situated in Lubao near Shikusa
Prison.

1
1.3.2 BUSINESS ADDRESS
Name of business : ANN'S PINEAPPLE JUICE PRODUCTION

Postal Address: P.O BOX 618 KAKAMEGA

Email Address: [email protected]

Telephone No.: 0111397014

1.4 FORM OF OWNERSHIP

This is a sole proprietorship form of business owned by SHIHUNWA ANAH KHANGUHA. It

is an enterprise unit whose ownership and management rest in one person .The owner will
assume all the risks of failure and receives profits from its successful operation .The business
was adopted by the following reasons. Faster decision making is required the business requires
less formative in order to Start and the owner enjoys all profits alone.

2
1.5 TYPE OF BUSINESS
This is a start up business that will start operating as from January 2026. It will specialize in
selling of the juice. Its main consumers will be the local people and those of local market. Its
main activity will be to sell the juice and distribute it to the required customers. It will act as a
service delivery industry which will require smaller amount of minimum start up capital to start
and huge market with demand of failure expansion.

1.6 PRODUCTS AND SERVICES

1.6.1 PRODUCTS
The business shall provide quality product to customers with an aim of making products. The
products shall include pineapple juice and various type of drink .

1.6.2 SERVICES

The business will offer credit facilities and transportation to their customers who are willing to
buy. An entrepreneur will use her pickup for the transportation at subsidized cost.

1.7 JUSTIFICATION OF THE BUSINESS OPPORTUNITY

Ann's Pineapple juice has numerous health advantages which cannot be ignored. Despite all
this, the supply of juice remains very low to very few businesses exploiting this opportunity. It
is this that the firm found the needed to set up Ann's Pineapple Juice.

1.8 INDUSTRY
Ann's Pineapple juices will be venturing in a less exploited products market hence needs to
perform well. The firm will ensure customers satisfaction is ensured through constant visit to
our customers. This will ensure effective communication is achieved. It will also be involved in
community services like collection of planting trees as a way of giving back to the community
and keeping environment clean.

1.9 GOALS AND OBJECTIVES

1.9.1 GOALS
The proposed business has got a number of goals. The major goal is to create more job
opportunities to people and make profit to the owner, later in the year is to provide better
services to the customers. The goals of the business are below.

In Short term goals; - To increase the sale by 15% in two months’ time, maximum of revenue to
the owner and creating employment opportunities to the people.

In Middle term goals; - To offer quality products to the customers, to increase profit to a
maximum of 15% in six months and to be able to meet and satisfy the needs of customers.

3
In long term goal’s; - To open new branches when it expands in major points in Kakamega to
supply juice to many parts of the county.

1.9.2 OBJECTIVES.

The objective of the business is to get profit to a large branch of juice it will also enable to raise
money to help the society.

1.10 ENTRY AND GROWTH STRATEGY

1.10.1 ENTRY

For any business to operate its entry in the market it’s very important for its survival. The
entrepreneur plans to enter the market by conducting numerous advertisements of these
products in the local radio stations, first it will be giving reflectors and t-shirts to those who will
purchasing products.

1.10. 2 GROWTH STRATEGY

Under growth strategy the business plans to expand its sales to various parts by opening new
branches in this part. This is going to enable the sole proprietor to capture many customers

4
 CHAPTER TWO
2.0 MARKETING PLAN
The owner intends to implement the following in its marketing plan.

2.1 POTENTIAL CUSTOMERS.

They will be in the supermarket and some of private organization

Institution Customers.

It includes non-government organization. They are likely to consume bottle juice since they
have a high number of employees who would need the juice when they are working.

Individual Customers.

They include people living within Kakamega County. The Company intends to ensure
continuous supply of the juice since have high number of employees.

Group Customers.

Since the town has number of learning centers from early childhood development to tertiary
ones. Ann's Pineapple juice targets to supply juice to their staff, pupils. This will be during
functions. The mode of payment to be used will be via bank one week after delivery.

2.2 COMPETITORS
Ann's Pineapple juice will be subjected to a lot of competition arising from
establishment business competitors will be vendors in a radius of sixty meters from the
shop premise in Kakamega Lubao Market.

The enterprise will offer quality and quality services.

5
SWOT ANALYSIS TABLE

Competitor Strength Weakness Opportunity Threat

Mama Competent Poor Good High Salary

Blessings qualified and management of interpersonal demand.
experienced. time skills
Juice Enterprise

Wema vending Adequate funds Misusing of Management of Fluctuation

juice funds by funds
manager

Anita 's Closely to In adequate Adequate Expensive spare

wholesale juice customers working working parts.
equipment machines

2.3 MARKET SHAPE AND SIZE

It was established by small scale juice owned by Wema.

2.4.1 Market Shape

With the research carried out in the market, Ann's Pineapple juice will start as a small-scale
farm occupying 16%. While the other three shops that is Mama Blessings juice enterprise
occupying 36%, Wema vending occupying 24% and Anita's wholesale juice occupying 24%
seven months after venture into business. Ann's Pineapple juice will be occupying 40% while
the others three 20% each.

6
ANN'S PINEAPPLE JUICE BEFORE VENTURE INTO BUSINESS

Sales

16 24

36 24

ANITAS` WHOLESALEWEMA VENDING JUICE

MAMA LESSINGS` JUICE ENERPRISEANNS` PINAPPLE JUICE

ANN'S PINEAPPLE JUICE AFTER VENTURE IN TO BUSINESS

Sales

20

40

20

36

ANITAS` WHOLESALE WEMA VENDING JUICE

MAMA LESSINGS` JUICE ENERPRISE ANNS` PINAPPLE JUICE

2.4 METHODS OF PROMOTION AND ADVERTISEMENT

2.4.1 PROMOTION METHODS.
The owner will offer products on discount, hire purchase so as to promote the business.
2.4.2 ADVERTISEMENT METHODS.
The company intends to use the mass media. This will be done through local radio station which
is based in Kakamega. Other methods will be billboards posters, stickers.

7
2.5 PRICE STRATEGY
The company intends to minimize cost of products so that the land may not be costly.

2.6 SALES TACTICS

Ann's Pineapple Juice intends to adopt both direct and agent mode of selling the direct sales
will be done by those customers who would come directly at the plants while indirect will be
used to avail goods to customers who are far.

The company will employ vendors who will be positioned strategically at different points in
the town. They will be provided uniforms to enhance marketing of the company brand.

2.7 DISTRIBUTION STRATEGY

The business will distribute its services directly to the customers. In this case these are no
intermediaries due to services that are being provided it will be difficult to involve
intermediaries since the business is dealing with juice for human consumption. Indirect will be
use when it comes to distribution of bottle juice as it will require a good network in the market.

PRODUCER CONSUMER

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 CHAPTER THREE
3.0 ORGANIZATION PLAN
It contains the employed, employee’s qualification and starting capital in term of salary of the
employees

3.1 ORGANIZATION STRUCTURE

3.2 MANAGEMENT TEAM

The business is a sole proprietorship. It will be managed by the owner herself who will act as
the manager with assistance who is the supervisor

Job No of Qualification Duties Experience

Description Personnel

Manager 1 Certificate in He will be controlling Work experience 5

social work finance months

supervisor 1 Certificate in Ensure good coordination Work experience 8

food and between staff and months
beverage customers

3.3 OTHER PERSONNEL

- They are employees in shop but they are not in management terms

Job description No of Qualification Duties Experience

personnel

Cashier 1 -Should have -Carry out the -Work

skills in certificate transaction of experience of 6

9
 in accounting money months

-Computer literate Provide

receipts

Driver 1 -She must be -Making sure -Work

above 18 years each customer experience of 9
is served well months

Security guard 1 -19 years and Making sure -Should have the
above experience
there are tight
-Should be a form security in and
four liqueur out of the plant

3.4 RECRUITMENT, TRAINING AND PROMOTION

Qualified employee will be obtained through recruitment that will be done through

Interviews-

This will enable recruit people of great experience in the specified job

Posters

The business will print posters announcing the kind of vacancies being advertised

Personal Contact

The proprietor will visit different places like churches and chief barazas informing people of
existing job opportunities.

3.4.1 Training
Employees will be sponsored to take part time lessons related to this proposed business to
improve their skills and knowledge of running business

3.4.2 Promotion
The employees will be promoted to another level due to:

 Hard working and Honest

-e.g those who attends to their work without supervision
 High profit

1
 -During good season where there will be high profit making employees to be promoted
 Academic Qualifications
-Employees having education standards will be considered first and promoted
This is due to their experience, knowledge and skills

3.5 REMUNERATION AND INCENTIVES.

3.5.1 Remuneration
Personal No. of personnel Basic Salary Allowance Total

Manager 1 25,000.00 5,000.00 30,000.00

Supervisor 1 20,000.00 2,000.00 22,000.00

Cashier 1 15,000.00 15,000.00

Driver 1 10,000.00 10,000.00

Security 1 7,000.00 7,000.00

Guard

Total 5 77,000.00 7,000.00 84,000.00

3.5.2 Incentives
The owner will organize for team building whereby will make a simple party for all workers to
celebrate.The owner will also print t-shirts.

3.6 LICENSE AND PERMITS

3.6.1 License
The business will obtain its licensee from the county government of Kakamega at the cost of
2,000

3.6.2 Permits
Permits will be obtained from Local government. Authority will be obtained after filling a form
showing the name, location and nature of the business.

3.7 SUPPORT SERVICES

3.7.1Banking services
The owner shall open an account at Kenya Commercial Bank where one can deposit or
withdraw money at any time .

3.7.2 Electricity service

The business intends to be supplied with power from Kenya Power Company

1
3.7.3 Insurance services
The business will obtain an insurance cover from jubilee insurance company limited this include
general company insurance at the monthly basis of 6,000/=

3.7.4 Postal services

KAKAMEGA POSTAL SERVICE

PO BOX 618_50100

KAKAMEGA.

TEL 0760666360

1
 CHAPTER FOUR
4.0 OPERATIONAL PLAN
This business shall acquire facilities to facilitate its operation production services and
accommodation of the business.

4.1 PRODUCTION OF SERVICE DESIGN AND DEVELOPMENT.

The production will be solo to the customer by an entrepreneur will be produced from the
company itself with aim of making profit

4.2 PRODUCTION FACILITIES AND CAPACITY

The business shall require the following items to operate

Item Quantity Cost of items Total Supplier

Cash book 2 250.00 500.00 Nicole’s

Bookshop

Receipt book 4 300.00 1200.00 Nicole bookshop

Store 1 - -

Rooms 10 500.00 500.00 -

Kitchens 2 - - -

Water - - -

Chairs 8 600.00 4,800.00 Ivy furniture

Electricity 2,400.00 Kenya power

Tables 4 1,200.00 4,800.00 Becky's furniture

1
4.3 FIRM LAYOUT

Inspection Area Management Office

Entrance

Entrance Machine

A B

4.4 OPERATIONAL STRATEGY

Material needed for production will be purchased on daily basis. Employees will be provided
with protective gears and well-maintained machines.

4.5 OPERATIONAL PROCESS

Purchase of raw material will be done through asking for the cheapest supplier

This will be attained through selling of tenders

Distribution of the raw material in the plant will be done first to ensure raw material ever stay in
our store.

Purification and packaging of the juice will be put by government standards

4.6 REGULATION AFFECTING OPERATION

Regulations that shall be put in place to regulate the business are as follows.

Trade licensing

For any business to operate it must acquire a trade license

Insurance

1
Business should have an insurance cover which will protect the business Incase of loss and
damages of its properties.

Environmental Regulation

In order to avoid environmental pollution dustbins shall be provided for disposal of plastic
bottles and bags

- The business shall also acquire a certificate from National Environmental Management
Authority.

4.7 EQUIPMENT OR MATERIAL OPERATION

The business shall acquire the following equipment for its operation

ITEM QUANTITY COST TOTAL COST SUPPLIER

Computer 2 30,000.00 60, 000.00 Toc link

computer

Motor bike 2 45,000.00 90,000.00 Boxer Kenya

Packaging 1 40,000. 00 40, 000.00 Jw electronics

trudge

utensils ‘’ spoon 5.00 50.00 316 house

‘’plates 10.00 1,00.00

furniture’s Fork’’ 5 50.00 316 houses

20 chairs 400 800.00

10 table 600 6,000.00

1
 CHAPTER FIVE

5. 0 FINANCIAL PLAN
Is the representation of the projected cash flow and income statement prepared on annual basis?

5.1 PREOPERATIONAL COST

ITEM COST

Electricity Installation 20,000.00

Licenses and permits 4,000.00

Rent for first month 15,000.00

Stationery 10,000.00

Advertisement 200, 000.00

Salaries and wages for 1st month 77 , 000.00

Facilities and equipments 14,000.00

Transportation 60,000.00

Micelinious 200,000.00

TOTAL 600,000

5.2 ESTIMATION OF WORKING CAPITAL

-It consist of current assets and current liabilities
CURRENT ASSETS COST

Stock 50,000.00

Debtor 50,000.00

Cash at bank 100,000.00

Cash at hand 200,000.00

Total 400, 000.00

1
 CURRENT LIABILITIES COST

License and permits 8,000.00

Electricity bills 20,000.00

Salaries 12,000.00

Total 40,000.00

Working Capital= Current Assets - Current Liabilities

WC =CA - CL

400,000 - 40,000

= 360,000

1
5.3 PREPARATION FOR CASH FLOW PROJECTION

ITEM JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL

Cash sales 300,000 350,000 450,000 500,000 450,000 500,000 550,000 600,000 750,000 500,000 300,000 200,000 5,450,000

Creditors 50,000 70,000 120,000 100,000 50,000 60,000 450,000

TOTAL 350,000 42,000 450,000 500,000 450,000 500,000 550,000 600,000 870,000 600,000 350,000 260,000 5,522,000

Preoperation 60,000 60,000

al cost

Salaries and 2,500 2,500 2,500 2,500 10,000

wages

Electricity 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 44,000

Advertiseme 2,500 2,500 2,500 7,500

nt

Insurance 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 120,000

Rent 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

TOTAL 73,500 17,500 15,000 15,000 15,000 15,000 15,000 15,000 20,000 15,000 17,500 20,000 253,500

1
Gross Profit = Cash flow in _ Cash flow out

5,522,000 - 253,500

= 5,268,500

Tax 12% of gross Profit

Net profit= Gross profit _ Tax

Tax= 12/100 × 5268500

= 632,220

Net profit= Gross profit _ Tax

= 5,268,500_ 632,220

= 4,636,280

5.4 FINANCIAL POSITION STATEMENT

Fixed assets – as the business expands to avoid the monthly expenses of paying rent some other
fixed assets that the business requires are as follows.
FIXED ASSETS COSTS
Furniture 2,000
Machinery 3,000
Building 1,000
Premises 6,000
Total 12,000

1
5.5 PROFORMA INCOME STATEMENT
ITEM JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL

Cash sales 300,000 350,000 450,000 500,000 450,000 500,000 550,000 600,000 750,000 500,000 300,000 200,000 5,450,000

Creditors 50,000 70,000 120,000 100,000 50,000 60,000 450,000

TOTAL 350,000 42,000 450,000 500,000 450,000 500,000 550,000 600,000 870,000 600,000 350,000 260,000 5,522,000

Preoperational 60,000 60,000

cost

Salaries and wages 2,500 2,500 2,500 2,500 10,000

Electricity 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 44,000

Advertisement 2,500 2,500 2,500 7,500

Insurance 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 120,000

Rent 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

TOTAL 73,500 17,500 15,000 15,000 15,000 15,000 15,000 15,000 20,000 15,000 17,500 20,000 253,500

2
Profoma income statement = Cash flow in _ Cash flow out

= 5,552,000 _ 253,500

= 5,268,500

5 .6 CALCULATION OF BREAK EVEN POINT

= Net profit/Total sales ×100
= 4,636,280/5,450,000 × 100
=85.07%

5.7 CALCULATION OF PROFITABILITY RATIOS

1) Gross profit
= GP/Total sales × 100

= 5,268,500/ 5,450,000 × 100

=96.67%

2)Net profit

=Net profit/ Total sales × 100

=,4636,280 / 5,450,000 × 100

=85.07%

5.8 DESIRED FINANCING

= Preoperational cost + Working Capital

= 60,000 + 360,000

= 420,000

5.9 PROPOSED FINANCING SOURCES

SOURCE AMOUNT(Ksh.)
Personal saving 50,000
Borrowing from friends 100,000
Loan (bank) 200,000

Borrowing from relative 300,000

Total 650,000

2
APPENDIX

5.3.2 PROFOMA INCOME STATEMENT FOR YEAR TWO 2027

CASH FLOW IN

ITEM JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL

Sales 500,000 500,000 450,000 500,000 550,000 600,00 650,000 600,000 600,000 700,000 750,000 800,00 7,250,00

Creditors 20,000 20,000

TOTAL 520,000 500,000 450,000 500,000 550,000 600,000 650,000 600,000 600,000 700,000 750,000 800,000 7,270,000

2
CASH FLOW OUT

ITEM JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL

Preoperational cost 10,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 720,000

Electricity 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 48,000

Salaries and wages 250

Insurance 250

Advertisement 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 120,000

TOTAL 78,000 74,000 74,000 74,000 74,000 74,000 74,000 74,000 74,000 74,000 74,000 74,000 893,000

CROSS INCOME 434,000 415,000 365,000 415,000 465,000 815,000 565,000 515,000 565,000 615,000 665,000 715,000 6,249,000

TAX INCOME 107,500 103,750 91,250 103,750 116,250 128,750 141,250 128,750 141,250 153,750 166,250 178,750 1,561,250

NET INCOME 322,500 311,250 273,750 311,250 348750 386,250 423,750 386,250 423,750 416,250 498,750 536250 1,561,250

2
5.3.3 CASH FLOW STATEMENT FOR THIRD YEAR 2028
CASH FLOW IN

ITEM JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL

Sales 700,000 700,000 700,000 700,000 750,000 750,000 750,000 750,000 800,000 800,000 850,000 850,000 9,150,000

Creditors 20,000 15,000 10,000 5000

TOTAL 720,000 715,000 710,000 705,011 750,000 750,000 750,000 800,000 800,000 800,000 850,000 850,000 9,200.00

2
CASH FLOW OUT

ITEM JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL

Preoperational cost 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 720,000

Electricity 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 48,000

Salaries and wages 250

Advertisement 250

TOTAL 79,000 74000 74000 74000 74000 74000 74000 74000 74000 74000 74000 74000 893,000

GROSS INCOME 134,500 630,000 625,000 620,000 665,000 665,000 665,000 715,000 715,000 765,000 765,000 765,000 179,500

TAX INCOME 158.625 157,500 156,250 155,000 166,250 166,250 166,250 178,750 178,750 191,250 191,250 191,250 2,044,895

NET INCOME 475,875 475,500 468,750 505,000 498,750 498,750 498,750 536,250 536,250 573,750 573,750 573,750 6,134,625