BUSSINESS NAME : JARED'S QUALITY BUILDING MATERIALS STORES

BUSSINESS ADDRESS : P.O. BOX 48 OYUGIS

TITLE : BUSINESS PLAN

COURSE : DIPLOMA IN CIVIL ENGINEERING

PRESENTED BY : OUMA JARED SIMBA

INDEX NUMBER : 6161040780

CENTER NAME : THE SIGALAGALA NATIONAL POLYTECHNIC

CENTER CODE. : 616104

SUPERVISOR : MR KAMAU

SERIES. : NOVEMBER 2024

PRESENTED TO : KENYA NATIONAL EXAMINATION COUNCIL IN

PARTIAL FULLFILMENT FOR THE AWARD OF
DIPLOMA IN CIVIL ENGINEERING

i
ACKNOWLEDGEMENT
I acknowledge my family and my supervisor who were there for me during good and bad
moments when I needed help from them and never gave up on me. If it were not for them I
couldn’t have achieved my goal. May God bless you all.

Thank you very much.

ii
DEDICATION:
This business plan is dedicated to all my family members and friends who assisted me
financially. The Sigalagala National Polytechnic provided me with a conducive environment to
help me write this plan and lastly my supervisor Mr. KAMAU who guided me through this
process.

iii
DECLARATION.
I declare that this business plan is my own work and has not been duplicated by anyone for any
academic purpose.
Name: OUMA JARED
Sign: .....................

Supervisor.

Name: Mr. KAMAU

Signature…………………………………
Date……………………………….

iv
EXECUTIVE SUMMARY
Business description
The proposed business is known as Jared stores which will be a leading hardware in Oyugis
town. It is a sole proprietorship that falls under construction industry. Short and long-term
goals are well explained. Also goods and services offered by the proposed business are well
elaborated.

Marketing Plan
Loyal customers will be from Oyugis and its outskirts. Competition has also been well
analyzed. Advertisement, sales promotion, pricing strategy, sales tactics and distribution
means has well been elaborated and explained in details.

Organizational and Management Plan

Key personnel and support staff of the proposed business have been highlighted according to
their duties, responsibilities and qualifications. Recruitment, training and promotion and
incentive are well analyzed showing how each employee earns.

Operational/Production Plan.
Machinery tools and equipment are well described. Also their cost has been indicated. Repair,
maintenance and layout of business are well elaborated.

Financial Plan
Pre-operational cost, working capital and financial statements have been identified. Measures
of success i.e. break-even analysis, financial ratio and proposed capitalization have also been
entailed

1
Table of Contents
ACKNOWLEDGEMENT..........................................................................................................i
DEDICATION:..........................................................................................................................ii
DECLARATION.. iii .......................................................................................................................................1
EXECUTIVE SUMMARY........................................................................................................1
CHAPTER ONE........................................................................................................................4
1.0 Business Description.........................................................................................................4
1.1The Nature of the Business................................................................................................4
1.1.1Business name and address..........................................................................................4
1.1.2 Business Location.......................................................................................................4
1.2 Legal Form of Business Ownership..................................................................................4
1.3 Business purpose...............................................................................................................4
1 .4 Industry............................................................................................................................4
1.5 Industry characteristics and size.......................................................................................4
1.6 Goods and services...........................................................................................................5
1.7 Business goals and objectives...........................................................................................5
1.8 Product and services.........................................................................................................5
1.9 Justification of the Opportunity........................................................................................5
2.0 Entry and Growth Strategy...............................................................................................5
CHAPTER TWO.......................................................................................................................6
2.0. Marketing Plan.................................................................................................................6
2.1. Potential Customers.........................................................................................................6
2.2. Competition.....................................................................................................................6
2.3. Market Share....................................................................................................................7
2.4. Pricing Strategy................................................................................................................8
2.5. Sales Tactics.....................................................................................................................8
2.6.0 Advertisement and promotion strategy..........................................................................8
2.6.1 Advertisements...........................................................................................................8
2.6.2. Sales Promotion.........................................................................................................8
2.7. Distribution......................................................................................................................9
2.8 Customers’ service............................................................................................................9
CHAPTER THREE..................................................................................................................10
3.0 Organizational and Management Plan............................................................................10
3.1 Organization Structure....................................................................................................10
3.2 Team management personnel.........................................................................................10
3.3. Support Staff..................................................................................................................11

2
 3.4.0 Recruitment, Training and Promotion.........................................................................14
3.4.1 Recruitments.............................................................................................................14
3.4.2 Training....................................................................................................................14
3.4.3 Promotion.................................................................................................................15
3.5.0 Remuneration and Incentives.......................................................................................15
3.5.1 Remuneration policy.................................................................................................15
3.5.2 Incentive program.....................................................................................................15
3.6. Licenses, Permits requirement.......................................................................................16
3.7. Support Services............................................................................................................17
CHAPTER FOUR....................................................................................................................18
4.0 OPERATION/ PRODUCTION PLAN..........................................................................18
4.1.1 Operational plan.......................................................................................................18
4.1.2 Production Plan........................................................................................................18
4.2 Production Facilities and Capacities...............................................................................18
4.3 Production Process..........................................................................................................19
4.4 Production Strategy.........................................................................................................19
4.5 Regulation Affecting Operation......................................................................................19
CHAPTER FIVE: FINANCIAL PLAN...................................................................................20
5.1 Pre – Operational Cost....................................................................................................20
5.2 Working Capital..............................................................................................................20
5.3.Cash flow statement........................................................................................................23
5.3.1 Cash in flow..............................................................................................................23
5.3.2 Cash out flow............................................................................................................23
5.4 Income Statement As At December 2024.......................................................................26
5.4.1 INCOME STATEMENT AS AT 31ST DECEMBER 2024......................................26
5.4.2 INCOME STATEMENT AS AT 31ST DECEMBER 2024......................................26
5.5 BALANCE HEET AS AT 31STDEC. 2025..................................................................27
5.5.1 BALANCE SHEET AS AT 31ST DECEMBER 2025.............................................27
5.5.2 BALANCE SHEET AS AT 31ST DECEMBER 2025..............................................27
APPENDIX..............................................................................................................................27
KEY:.....................................................................................................................................27
LOCATION..........................................................................................................................27

3
CHAPTER ONE
1.0 Business Description
The proposed business will specifically deal with all hardware products which are used in
construction works. These products will include; cement, iron sheets, paints, nails, steel bars
etc. The proposed business will have after sales services. Resources of operation will be
acquired from the main dealers within the area of location of the business. The proposed
business will aimed at expanding due to high demand from loyal customers.
1.1The Nature of the Business
1.1.1Business name and address
The business will be named Jared stores. Jared is a male Luo name and he was also a
prominent chief in the same location to where the business will be located. This will give the
business good name.
Business address
JARED’S STORES
P.O.BOX. 48
OYUGIS.
1.1.2 Business Location
The business will be located in Oyugis town near Jabidii Construction Company. The
business will be located in this area because of its nearness to customers, there is favorable
infrastructure, labor available and there is security.
1.2 Legal Form of Business Ownership
The proposed business form will be sole proprietorship so as to enjoy profit alone, being own
boss, easy decisions making and become full control of the proposed business. The status of
the
Proposed business will be newly started as to introduce new products in construction sector
which is in highly demand by prospective customers.
1.3 Business purpose
The proposes business will mainly involve trading of all construction materials hence selling
of these products. The proposed business will start as small business, but after expansion it
will grow to medium scale and eventually large scale.
1 .4 Industry
There will be high growth rate since there are many buildings under construction within the
area of business location. Modern technology will be applied to fasten the sales. The
proposed business will be intended to have a stable price for steady supply of goods. Source
of raw materials will be from MITRA Company which deals with manufacturing of
construction materials within Oyugis town. The sales volume will be high due to quality
goods thus favorable competition.
1.5 Industry characteristics and size
Jared’s stores will be operating both to the locals and regionally since the business will adopt
modern techniques which will fasten the supply of goods to satisfy the high demand. Fair
competition is expected from the existing firms in the area as the business will be majoring in
creativity and innovation to come up with new items in the market that easily solve the
customers problems hence emerge the best.

4
1.6 Goods and services
The business will consist of goods which are of high quality, desirable color and sizes of
goods to satisfy the customers. The services which will be provided by business employees
will be faster, reliable, convenient and of high quality to attract more customers to purchase
goods hence higher purchasing power.
1.7 Business goals and objectives
1.7.1Short term goals
To increase profit level from sales of hardware goods.
Introducing advertisement in the business to create awareness of new products in the market.
Creating more job opportunities when the hardware expands.
1.7.2 Long term goals
Expanding the business to medium or large scale.
Strategize ways to outweigh competition in the business
1.8 Product and services.
The products will be of good quality and standard. The business will also be offering
packaging, fair pricing and partially take part in the delivery of the products.
1.9 Justification of the Opportunity
Main aim of venturing into this business is due to high demand of construction materials in
the market. Therefore, the proposed business will contain new products of high quality, a
demand which has not been made before. In addition, the proposed business will be located at
a strategic place where there is favorable competition in the market. Also purchasing power
of customers is high.

2.0 Entry and Growth Strategy

2.0.1 Entry strategy
The proposed business will use advertisement methods like sale promotions, road shows and
personal contact to create awareness among customers about new products introduced in the
market and specific hardware which sell the product thus Jared stores being the target.
2.0.1 Growth strategy
The proposed business will use modern and advanced technology to meet the demands of
customers. Also competent employees will be in control to make sure there is smooth flow of
goods and services in the market. Proper utilization of available resources will be core value
in the business to avoid improper use facilities.

5
CHAPTER TWO
2.0. Marketing Plan
The proposed business will be selling building materials at favorable price. Also there will be
Casting of pre-cast concrete according to shapes desired by potential customers. Materials for
construction will be distributed to the sites if needed to do so. There will be proper
arrangement of materials in the hardware for easy work-man ship. The proposed business will
create room for cash or M-PESA payment.
2.1. Potential Customers
Jared’s stores will be put in place to target commercial and institutional customers. For
commercial customers we will target Shivling Supermarket which needs the products for
maintenance purposes. Also there is a retail shop which is in high demand of the products.
For institutional customers, Agoro Sare High School and Oyugis High School are of high
demand of building materials for the construction of their structures.
2.2. Competition
The proposed business will have two major competitors, Mitra stores and Bengwela stores.
They are both located along Oyugis-Kissi road. They closely sell substitute of building
materials at slightly same prices. The proposed business is expected to stand out from its
competitors because of the following features:
Jared’s stores will be located at a central point where products and services offered are at
high demand.
The business will extend its time of operation from that of competitors.
Products and services will be of affordable prices to the potential customers as compared to
competitors.
Provision of quality products and services.

THE COMPARISION TABLE OF THE THREE STORES

Name of the firm Strength Weakness

Mitra stores  Centrally located  High rate of loss

town making

 Allows for discount  Unfavorable loss

 Better working making

condition  Traditional

technology

Bengwela stores  Skilled personnel  Inadequate building

 Better payment materials

6
  Limited hours

Jared's stores  Modern technology  Few skilled

in production personnel

 Centrally located in  Low rate of profit

town increase

 Better working  High rete of

condition advertisement

2.3. Market Share

The proposed business will be centrally located in a highly populated region. Therefore, the

business will be expected to have a larger portion in market share than other businesses. The

distribution ratio will be 2:3:6 for Mitra stores, Bengwela stores and Jared stores respectively.

The percentage market share will be as follows: Mitra hardware 18%, Bengwela retail shop

27% and Jared's hardware 55% at the start of the proposed business as shown in the chart

below.

Sales

Mitra stores
Bengwela stores
Jared's store

7
2.4. Pricing Strategy
The price of building materials will rise if there is high demand and slightly comes down at

low demand to retain profits. Imitative pricing will be allowed in the business to counter for

the prices set by the competitors. This will create fair competition in the market. Also,

psychological pricing will be allowed where prices of the products will be set slightly lower

than the exact figure to attract the purchasing power of potential customers.

2.5. Sales Tactics

The proposed business will intended to use various methods to convince customers to buy the

product hence increasing sale volume and maximize profit. Thus use of sales person who is

competent in sales and marketing. This will make customers purchase for the product to see

the good usefulness of the products. The proposed business will also allow issuing of warrant

for the customers to feel satisfied to the product for the stated duration of use. Sale

commission agents will also be used in the business to convince customers about Jareds

stores products and its quality services being offered.

2.6.0 Advertisement and promotion strategy

2.6.1 Advertisements
The sole proprietor will have to advertise the proposed business so that it may be published.

Therefore, posters will be distributed at strategic places within and outskirts of town to create

awareness about the business. Pamphlets and brochures will be handed out to people in the

streets. Billboards will be erected along Oyugis-Kindu and oyugis-Kisii highway. This will

make sure that awareness on the existence of products and services in the market is created.

2.6.2. Sales Promotion

Jared stores will use various methods of promoting products and services. These include use

of special offers which will be reduction in price of construction materials. After sales

services will be offered to make customers buy the products in large quantities. Also sales

women will be used to convince potential customers about the positive usefulness of

existence of construction materials in building industry.

8
2.7. Distribution
The proposed business will have convenient, reliable and affordable channel to distribute the

products, for them to reach the customers as agreed time. Thus Jared's stores will be set to use

retail outlets.

Producer Retailer Customers.

2.8 Customers’ service

The business helps the customers in packaging of goods and will also offer discounts hence

create fairness and affordability to our products. ‘The goods once sold never be returned’ idea

had been an issue for most consumers because they have no assurance on the quality of goods

they purchase. For this reason, the business will offer a six months warranty.

9
CHAPTER THREE
3.0 Organizational and Management Plan.
The organization and management objectives of Jareds stores will be aimed at profit

maximization, recruitment of qualified and experienced personnel, taking care of worker’s

welfare and better dealing of suppliers. At the beginning of the proposed business operation,

there will be manager, cashier, two watchmen, sales attendant and customer care.

3.1 Organization Structure

BUSINESS OWNER
BUSINESS OWNER

MANAGER
MANAGER

ACCOUNTANT
ACCOUNTANT

SUPORT STAFF
SURPORT STUFF

Typist security sales attendant cleaner’s drivers

3.2 Team management personnel

Business owner : The owner of the business will be Mr. Jared Simba. The qualifications and

duties include:

Qualifications

 Entrepreneur skilled.

 Determined and innovative.

 Goal oriented.
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  Pursued certificate in information communication and technology

Duties and responsibilities

 Ensuring there is smooth flow of work.

 Decision making.

 Full control of the business.

Business manager : The manager of the business will be Austine Omondi

Qualifications
 Diploma in accountancy from certified institution.
 5 years’ experience in the field of accounting.
 Excellent communication skills
 Future oriented.
Duties and responsibilities
 Select required machines.
 Recruiting, promoting and training of organisation staff.
 Introducing new ideas in the business.
Accountant: The accountant of the business will be Felix Simba
Qualifications
 Diploma graduate in Accountancy at Kisumu polytechnic
 Goal oriented.
 3 years’ experience in the field of accounting.
Director of the business will be Marry Auma.
 Degree holder in information science at university of Nairobi.
 Excellent managerial and administrative skills.
 Hardworking.
 Creative and innovative.
3.3. Support Staff
The following are personnel who will perform daily work in the proposed business to

improve on efficiency of work: Drivers, typist, security 0fficers, Sales attendant, Cleaners,

supervisor and cashier.

11
Typist

Qualifications

 Computer literate.

 2 years’ experience in typing.

 Must have certificate of good conduct.

 Have secretarial skills.

 Duties and responsibilities

 Carry out typing of the business documents

 Printing out receipts in the business.

 Keeping records of information for future reference.

Security officers

Qualification

 Must have 26 years and above.

 K.C.S.E certificate with a minimum grade of D- (Minus).

 Must have self-defence tactics.

 Determine and will power to work in any condition.

Duties and responsibilities.

 Provide security in the business.

 Open and close the entrance to maintain order.

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Sales attendant

Qualifications

 Computer literate.

 Have a satisfied certificate in human resource management.

 Competent in workmanship.

 Attractive and welcoming person.

 Must possess persuasive and convincing language.

Duties and responsibilities.

 Decorating the hardware.

 Serving customers, nicely.

 Explaining different kind of products to customers, negotiating for price and selling of

products.

Cleaner

Qualifications

 Must be above 18 years.

 K.C.S.E mean grade (D+)

Duties and responsibilities.

 Ensure that the hardware and its environs is clean all the time.

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Drivers

Qualifications

 Must have driving licence.

 Have certificate of good conduct.

 5 years driving experience.

 Must have 25 years and above.

Duties and responsibilities

 Carrying out distribution of products in and out of the business.

 Carrying staff members in and out of the enterprise.

3.4.0 Recruitment, Training and Promotion

3.4.1 Recruitments
The proposed business will follow a well-designed procedure to recruit its staff as follows:

 A new vacant will be established.

 Advertisement will be conducted to find the qualified person.

 Short listing of applicants will be done.

 Applicants will be informed about the interview, date, time and venue.

 After interview, candidates qualified will be asked to commence duties after

orientation is done.

3.4.2 Training
Employees will be trained through seminars and short courses on work they are to be
specialised. Training will follow the following procedure:

 Identifying skills of area.

14
  Making people apply.

 Letting people appear to interview.

 Choosing people for training.

Objectives will be expected after training. These will include:

 High output.

 Improvement of work force.

 Better working conditions.

3.4.3 Promotion
At the beginning of the business, promotions will be limited but after expansion, there will be
promotions of staff members under the following conditions:

 Individual output.

 Extend of work hours.

 Additional qualifications.

Promotion will follow the following procedure:

 Vacant for promotion will be created

 Internal memo will be displayed on notice boards to create awareness of the

promotion.

 Interviews will be conducted.

 The qualified candidate will be required to resume duties after orientation.

3.5.0 Remuneration and Incentives

3.5.1 Remuneration policy
Salaries for key personnel

Title No.of support staff Salary per month Salary per year
Manager 2 30,000 360,000
Manager director 1 40,000 480,000
Supervisor 4 15,000 180,000
Attendant 3 20,000 240,000
Cleaner 2 15,000 180,000
Watchmen 2 10,000 120,000
Typist 2 20,000 240,000
Driver - 15,000 180,000
15
 Total 17 165,000 198,0000

3.5.2 Incentive program

Title Allowances per month Allowances per year

Manager 5,000 60,000

Managing director 3,000 36,000

Supervisor 2,000 24,000

Attendant 1,000 12,000

Cleaner 500 6,000

Watchmen 900 10,800

Typist 1,000 12,000

Driver 500 6,000

TOTAL 12,900 166,800

3.6. Licenses, Permits requirement

License

The proposed business will obtain its trading license from Homabay County Council for legal

undertaking of its operations.

Name: Trade license

Use: 5,000/= per year

Duration: 12 months.

Origin: County council.

Permit

Jared's stores will obtain its permits to carry out various activities in the business. These

activities will include: Advertisements, promotion road shows and display of bill boards

within and outskirt of

16
By-law:

The proposed business will have a rule to govern the affairs of Jared’s stores as a business

enterprise.

3.7. Support Services

Banking services will be provided by Kenya commercial bank (KCB)

Kenya Commercial Bank

P.O Box 189,
Oyugis.
Postal Services
Oyugis post office
P.O Box 51-100
Oyugis.
Insurance services
Madison insurance company
P.O. Box 254
Oyugis.
Water services will be supplied by Savanna water supply.
Savanna water supply
P.O. Box 19-2000
Oyugis.
Electricity
Electricity will be supplied by Kenya Power and Lightning Company (KPLC)
Kenya Power and Lightning Company
P.O. Box 4100-0100 Oyugis.

17
CHAPTER FOUR
4.0 OPERATION/ PRODUCTION PLAN

4.1.1 Operational plan

The location of the proposed business will be in an open place where all the people are able
to locate. The floor will be 20 x 15 meters and the wall will be 25 x 15 meters.

The location which has been chosen;

 Is an open place which is easy to locate.

 There are many customers in the town where the proposed business has been situated.
 There is no stiff competition since no more kind of business is going on.
The work has been scheduled as follows;

From Monday to Friday we open from 7.30 a.m. to 5.00 p.m. and Sunday from 7.30 a.m. to
1.00 p.m. but Saturday there will be no opening since that day is the day most of workers do
go to church.

During pubic holidays the proposed business will be opened as from 9.30am to 5.30pm.

4.1.2 Production Plan

The products that will be offered will be building and construction materials. These will be in
different colors, sizes and of high quality.

4.2 Production Facilities and Capacities

The raw materials will be obtained as follows;

Facilities Capacity Price/unit Total Source

Computer 3 50,000 150,000 K. Electronics

Chairs 10 2,500 25,000 Kowira Carpentry

Tables 3 2,000 6,000 Kowira Carpentry

Helves 20 500 1,000 Kowira Carpentry

The number of employees to be employed will be 10 at the beginning and the number may
increase as the business enlarges. There will be use of modern technology like the use of
computers which will be used to record the list of items bought by the customers.

The building is permanent because it is built on the family land hence no cost of paying rent.

18
4.3 Production Process
Purchasing will be done by the manager who will go to the company. Transportation will be
done by the use of shop’s vehicle under the employed driver.

When the goods arrive recording will be done by the people employed in that area to ensure
that all the goods are in their quantity in which they were to be packed then taken for storage.

The sale will be done at the counter by the cashier where the goods will be recorded and sale
receipt will be issued.

4.4 Production Strategy

The transportation of goods to the schools will be done by the use of proposed business
vehicles since it will be large bulk the domestic consumer will to buy goods on their own.

Maintenance of the machinery will be done once a month while the repair will be done only
when the machines have a problem.

4.5 Regulation Affecting Operation

The proposed business will be affected by competition when there are many competitors of
the same type of business, this may lead to price being lowered down which leads to loss of
business fall down. During rainy season it may be difficult to transport goods to far off
places like high institutions due to poor roads and this will lead to loss to the business
operator.

These regulations will be prevented by use of four-wheel drive vehicle so as to keep

transportation in place and ensures there are good roads within the town and to give out
discounts and promotions so as to have more customers.

19
 CHAPTER FIVE
FINANCIAL PLAN
Pre – operational cost
The table below shows the initial cost employed at the start of the business

ITEM JAN FEB MAR APR MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC. TOTAL

Opening csh 400000 430500 465600 578200 79800 914900 1097000 1379100 1571200 1856300 2158900 2550000 14152500

Cash in sales 150000 120000 205000 250000 260000 265000 370000 275000 380000 385000 480000 200000 3340000

Discount received200 - 2000 4000 - - 7000 - - - 7000 2000 22200

Cash in flow 550200 550500 672600 832200 1009800 1179000 1474000 1654100 1951200 2241300 2645900 2752000 17513700

Electricity 5000 5000 4500 4500 4500 6000 6500 6500 6000 5000 5000 5000 63500

Salary/wages 54500 54500 54500 54500 54500 54500 54500 54500 54500 54500 54500 54500 654000

Licensand permit 6000 - - - - - - - - - - - 6000

Materials 12000 - 12000 - 12000 - 12000 - 13000 - 13000 14000 88000

Interest on loan 9000 9500 8000 8000 800 7000 6000 6000 6000 7000 7500 7000 89000

Insurance 16000 - - - - - - - - - - - 16000

Transport 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 15000 180000

Advertisement 500 500 - -500 - - 500 - 500 - 500 - 2500

Postage 800 - - - - - - - - - - - 800

Water 400 400 400 400 400 400 400 400 400 400 400 400 4800

Total 119700 84900 9440 82400 94900 82900 94900 82900 94900 82400 95900 95900 1106600

Net cash 430500 465600 578200 749800 914900 1097000 1379100 1571200 1856300 2158900 2550000 2656100 16407100

20
Activity Cost

Business plan 1,200

Transportation 3,000

Salaries 35,000

Equipment 12,500

Postal box 1,800

Licenses 600

Advertisement 3,000

Water 350

Electricity 1,200

Renovation 5,000

Miscellaneous 12,730

TOTAL 76,380

5.2 Working Capital

This gives the estimate of the required capital in the business. The ability of the business
to meet the financial need is the differences between the current ability of the services
Particulars Year 1 Year 2
Current assets
Cash in hand 150,000 162,000
Cash at bank 14,000 18,000
Stock 18,000 4000
Debtors
Total current assets 182,000 184,000
Current liability
Creditors 14,000 18,000
Bank overdraft 21,000 19,000
Short term loan 4000 21,000
Total current liabilities 39,000 58,000

1
PROJECTED CASH FLOW
DESCRIPTION YEAR 1 YEAR 2
Opening cash 14,152,500 14,500,000
Cash sales 3,340000 3,000,000
Cash inflow 17,492,500 17,500,000
Expenses
Electricity 63,500 63,500
Salaries/wages 654,000 664,500
Licenses and permits 6,000 6,000
Materials 88,000 95,000
Interest on loan 89,000 89,000
Insurance 16,000 50,000
Transport 180,000 200,000
Advertisement 2,500 3,000
Postage 800 1,000
Repair and maintenance 2,000 2,500
Water 4,800 6,000
Total cash outflow 1,106,600 1,180,500
Net cash 16,385,900 16,319,500

2
 PROFOMER INCOME STATEMENT
JARED STORES
PRORMER INCOME STATEMENT
FOR THE YEAR ENDED 31 DEC 2024
ITEM JAN FEB MAR APRL MAY JUN JULY AUG SEP OCT NO DEC TOT
V AL
Sales 55020 5505 67260 83220 10098 1179 14740 16541 19512 2241 2645 27520 17513
0 00 0 0 00 900 00 00 00 300 900 00 700

Purchas 15000 1550 12800 30000 65000 5000 10000 10500 15000 8000 6500 68800 13763
0 0 0 0 0 0 0 0 00
Gross 53220 5320 65980 80220 94480 1129 13740 15491 18012 2161 2580 20640 16137
profit 0 00 0 0 0 900 00 00 00 300 900 00 400
Electric 5000 5000 4500 4500 4500 6000 6500 6500 6000 5000 5000 5000 63500
ity
Salary 54500 5450 54500 54500 54500 5450 54500 54500 54500 5450 5450 54500 65400
0 0 0 0 0 0
License 6000 - - - - - - - - - - - 6000
Materia 12000 - 12000 - 12000 - 12000 - 13000 - 1300 14000 88000
ls 0
Interest 9000 9500 8000 8000 8000 7000 6000 6000 6000 7000 7500 7000 89000
Insuran 16000 - - - - - - - - - - - 16000
ce
Transp 15000 1500 15000 15000 15000 1500 15000 15000 15000 1500 1500 15000 18000
ort 0 0 0 0 0
Advert 5000 500 - - 500 - - 500 - - 500 - 2500
Postage 800 - - - - - - - - - - - 800
Repair 500 - - 500 - - 500 - - 500 - - 2000

Water 400 400 400 400 400 400 400 400 400 400 400 400 48000

Total 11970 8490 94400 82400 94900 8290 94900 82900 94900 8240 9590 95900 11066
0 0 0 0 0 00
Net 41250 4476 56540 71980 82443 1047 12791 14662 17063 2078 2485 19681 15030
profit 0 00 0 0 0 000 00 00 00 900 000 0 800

3
PRORMER FINANCIAL POSITION
JARED STORES
PROFORMER FINANCIAL POSITION
AS AT 31 DEC 2024
DESCRIPTION YEAR 1 YEAR 2
FIXED ASSETS
Equipment’s 60,000 65,000
Furniture’s and fittings
50,000 55000
vehicle
200,000 200,000
Total 310,000 320,000

LESS DEPRICIATION
Equipment’s 3,000 3,250
Furniture and fittings 2,500 2,750
Vehicle 10,000 10,000
TOTAL 15,500 16,000
TOTAL FIXED ASSETS 294,500 304,000
Current assets
Cash in hand 220,000 270,000
Cash at bank 300,000 320,000
Debtors 22,000 30,000
Total 542,000 620,000
Total assets 836,500 924,000
Current liability
Creditors 230,000 250,000
Bank overdraft 120,000 150,000
Total 350,000 400,000
Long-term liability
Long term loan 200000 300,000

4
Owner equity 286,500 224,000

Total 486,500 524,000

Total liability 836,500 924,000

KEY:
RR – Residential houses

SS – Shops

RA – Round About.

LOCATION

MITRA STORES
OYUGIS – KINDU BAY ROAD

OYUGIS-KISII ROAD

JAREDS STORES

BENGWELLA STORES

OYUGIS – KISII ROAD.