[DATE]

[COMPANY NAME]
[Company address]

BUSINESS PLAN

[Document subtitle]
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X BUSINESS PLAN X
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X TITLE: ANITAS GREEN GROCERS SHOP X
X P.O BOX 2000 X
X KAIMOSI X
X TEL:0114340288 X
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X PRESENTED BY: ANNET KHAVAI X
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X COURSE CODE: X
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X INDEX NUMBER: 6191010 X
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X DEPARTMENT: CERTIFICATE IN CATEING AND ACCOMODATION X
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X INSTITUTION: FRIENDS COLLEGE KAIMOSI X
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X CENTRE: KAIMOSI X
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X PRESENTED TO: KENYA NATIONAL EXAMINATION COUNCIL FOR THE AWARD OF A X
X CERTIFICATE IN CATEING AND ACCOMMODATON X
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X SUPERVISOR: MR.AUGUSTIN NAKITARE X
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EXAM SERIES: NOVEMBER 2023 SERIES

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 DECLARATION
I ANNET. K. ASERO, declare that this business plan is my own work and has not been presented
anywhere.

STUDENT NAME: ANNET KHAVAI ASERO

INDEX NO :………………………………………………………………………………………………………………

SIGN :……………………………………………………………………….

DATE :……………………………………………………………………….

SUPERVISOR :…………………………………………………………………………………………………………………

SIGN :…………………………………………………………………

DATE :………………………………………………………………..

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 DEDICATION
My sincere heartfelt devotion is to appreciate my grand father Herman Asero and my grand mother
Ruth Aserofor the humble, support and encouragement me towards catering and accommodation

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 ACKNOWLEDGMENT
I owe great of success of this business plan work to a number pleasant individuals whose contribution
and overriding critics enabled me to produce the work. I particularly express deep appreciation to for his
restless and constant guidance in writing this business plan.

I also thank those who have contributed in one way or another and are not mentioned. I do appreciate
and may GOD bless them. Lastly I thank the almighty God for everything glory is to His name.

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 TABLE OF CONTENT

CHAPTER ONE
EXECUTIVE SUMMARY.................................................................................................................................6
BUSINESS DESCRIPTION...........................................................................................................................6
MARKETING PLAN....................................................................................................................................6
ORGANIZATION AND MANAGEMENT PLAN............................................................................................6
FINANCIAL PLAN......................................................................................................................................6
CHAPTER TWO:............................................................................................................................................7
KARIBU GREEN GROCERY............................................................................................................................7
2.0 BUSINESS DESCRIPTION.....................................................................................................................7
2.1 OWNER’S BACKGROUND...................................................................................................................7
2.2 BUSINESS NAME................................................................................................................................7
2.3 BUSINESS LOCATION AND ADRESS....................................................................................................8
2.4FORM OF BUSINESS OWNERSHIP.......................................................................................................9
2.5 THE TYPE OF BUSINESS......................................................................................................................9
2.6 PRODUCT AND SERVICES...................................................................................................................9
2.7 JUSTIFICATION OF THE BUSINESS OPPORTUNITY............................................................................10
2.8 INDUSTRY........................................................................................................................................10
2.9 GOALS OF THE BUSINESS OBJECTIVE...............................................................................................10
2.10 ENTRY AND GROWTH STRATEGY...................................................................................................10
2.10.2 GROWTH PLAN.......................................................................................................................11
CHAPTER THREE........................................................................................................................................12
3.0 MARKETING PLAN............................................................................................................................12
3.1 CUSTOMERS.....................................................................................................................................12
3.1.1 COMMERCIALCUSTOMERS.......................................................................................................12
3.1.2 INDIVIDUAL CUSTOMERS..........................................................................................................12
3.1.3 INSTITUTION CUSTOMERS........................................................................................................12
3.2 MARKET SHARES..............................................................................................................................12

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PIE CHART SHOWING MARKET SHARES IN YEAR ONE...............................................................................13
3.3COMPETITION...................................................................................................................................14
3.3.1 WEAKNESS................................................................................................................................14
3.3.2 CAPITALIZING COMPETITION WEAKNESS.................................................................................15
3.4 METHODS OF PROMOTION AND ADVERTISEMENT.........................................................................15
3.4.1 PROMOTION STRATEGY............................................................................................................15
3.4.2 ADVERTISING STRATEGY...........................................................................................................15
3.5 PRICING STRATEGY..........................................................................................................................15
3.6 SALES TACTICS.................................................................................................................................16
3.7 DISTRIBUTION STRATEGY.................................................................................................................16
CHAPTER FOUR..........................................................................................................................................17
4.0 ORGANIZATIONAL AND MANAGEMENT PLAN.................................................................................17
4.1.1 MANAGEMENT TEAM...................................................................................................................17
4.2 OTHER PERSONAL............................................................................................................................17
4.2.1 Cashier......................................................................................................................................17
4.2.2 DUTIES AND RESPONSIBILITIES.................................................................................................17
4.2.3 STORE KEEPER...........................................................................................................................17
4.2.4 PURCHASING OFFICER..............................................................................................................17
4.2.5 MARKETING OFFICER................................................................................................................18
ORGANIZATRION CHARTS......................................................................................................................18
4.3 RECRUITMENT TRAINING AND PROMOTION...................................................................................19
4.3.1 RECRUITMENT..........................................................................................................................19
4.3.2 TRAINING..................................................................................................................................19
4.3.3 PROMOTION.............................................................................................................................19
4.4.0 REMUNERATION AND RECEPTIVE...............................................................................................19
4.4 REMUNERATION..........................................................................................................................19
4.4.1 INCENTIVES...............................................................................................................................19
4.5 PERMIT, LICENCE AND BY- LAWS (LOCAL REQUIREMENTS).............................................................20
4.5.1 PERMITS....................................................................................................................................20
4.5.2 LICENCE.....................................................................................................................................20
4.5.3 BY- LAWS..................................................................................................................................20
4.6 SUPPORT LAWS................................................................................................................................20
4.6.1 BANKING SERVICES...................................................................................................................20

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 4.6.2 INSURANCE SERVICES...............................................................................................................20
4.6.3 CONSULTING SERVICES.............................................................................................................20
4.6.4 LEGAL SERVICES........................................................................................................................20
CHAPTER FIVE............................................................................................................................................21
5.0 PRODUCTION.......................................................................................................................................21
5. BUSINESS PREMISES/LAYOUT........................................................................................................21
5.0 BUSINESS PREMISES/LAYOUT..........................................................................................................21
5. REPAIR AND MAINTENANCE..........................................................................................................22
5. PRODUCTIVITY STRATEGY..............................................................................................................22
5. MONTH MATERIAL REQUIREMENTS..............................................................................................22
5. MONTHLY LABOUR REQUIRMENTS...............................................................................................22
5 MONTHLY PRODUCTION EXPENSES................................................................................................22
5 PRODUCTION DESIGN AND DEVELOPMENT...................................................................................22
5. PRODUCTION PROCESS..................................................................................................................23
5 GOVERNMENT REGULATION AFFECTING OPERATION....................................................................23
5 ENVIRONMENT REGULATION.........................................................................................................23
5 SAFETY REGULATIONS (SAFETY ACT 49).........................................................................................24
5 HEALTH REGULATION (PUBLIC HEALTH ACT 247)...........................................................................24
CHAPTER SIX..............................................................................................................................................25
6) FINANCIAL PLAN OF KARIBU GROCERS SHOP...................................................................................25
6.1 INTRODUCTION...............................................................................................................................25
6.2 PRE OPERATIONAL COSTS................................................................................................................25
6.3 THE WORKING CAPITAL...................................................................................................................25
6.5 PROFORMA TRADING PROFIT AND LOSS ACCOUNT........................................................................26
6.6 PROFORMA BALANCE SHEET FOR YEAR 2021..................................................................................27
6.7 FROFORMA BALANCE SHEET FOR THE YEAR 2022...........................................................................28
6.7 KARIBU GREEN GROCERS SHOP BREAK ANALYSIS..........................................................................28
6.4 PROJECTED CASH FLOW STATEMENT FOR THE YEAR 2021 FOR KARIBU GROCETRS.........................0
6.4 CASH FLOW STATEMENT FOR 2022 FOR KARIBU GREEN GROCERS SHOP.........................................1
6.4 PROJECTED CASH FLOW STATEMENT FOR THE YEAR 2023 FOR KARIBU GREEN GROCERS SHOP.....2

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 CHAPTER ONE
EXECUTIVE SUMMARY
1.1BUSINESS DESCRIPTION
The business will be karibu green grocery shop. A name which means welcome. The main purpose of
choosing the name karibu is that it is easy to pronounce and it is an instance or a manner of
welcoming reception with warm reception. The business will attract most of the customers because
they feel welcomed to the shop. The business will be located in Daraja mbili town along Migori- kisii
road.

1.2MARKETING PLAN
The proposed business will be my esteemed customers which include; Supermarkets, schools,
nearest market and community people e.t.c who will buy the products. The finished will be obtained
from grocers company and from the nearest farmers practicing farming and cultivation.
Also karibu grocers will require trade license from kisii county council for its effective running of the
business. It will also create along them supply a wide range of grocers to the market. The business
will look into various ways of advertising and promotion pricising strategy and distribution strategy
will depend on competitors price quantities and demand.

1.3ORGANIZATION AND MANAGEMENT PLAN

The owner will be manager of the business and the assistant will be employed. Duties will be
allocated out clearly and terms of series towards each employees before the employer signs the
contract book to enable good performance to employees.

1.4FINANCIAL PLAN
The financial plan shows the total amount to be invested in the business and how to utilize the
capital. The invested capital will be ksh 1,500,000 and the amount to carry out operation until profit
is attained. The capital will also cater for machinery, raw materials, rent and labour. The source of
capital will be from different places and individual savings. This include;

CAPITAL OWNERSHIP AMOUNT KSH

Own capital 1,000,000

Bank loan 300,000

Parents 100,000
Friends 100,000
Total 1500,000

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 CHAPTER TWO:
KARIBU GREEN GROCERY
2.0 BUSINESS DESCRIPTION
The business is a start up business. The aim of the business is to provide the community and nearest
market with green grocery product. This will be perishable goods such as vegetables and fruits. The
owner will be the General Manager. The business will start from may 2022 after completion of my
studies and it will be managed by Mevice Nechesa Ogero.

2.1 OWNER’S BACKGROUND

I am Mevice Nechesa Ogero, agent of the business aged 22 years. I will be the owner of the business. A
single Christian lady Kenyan citizen and can easily be traced via my contact-0718641248. My email
address is [email protected] or my P.O Box 97 KISII, currently undertaking my studies at Friends
College Kaimosi taking a diploma in Food and Beverage Production Sale management.

2.2 BUSINESS NAME

Karibu green grocery will be the name of the business. A name which means welcome. The aim for
selecting the name ‘karibu’ is that it signifies warm reception and hospitality. It is intended to attract
many customers to the business.

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2.3 BUSINESS LOCATION AND ADRESS
Karibu green grocery will be located at Kisii town centre within Kisii district along Migori road. The
premises is opposite Gillani’s supermarket. The area has a police station and chief’s camp which offers
ideal security to the business. There is smooth means of transport and also effective communication
which are good for the business. The electricity in the town is rather fair and constant hence suitable for
the business as refregirator’s will keep food fresh for customers. The telephone line is close for both the
suppliers and the customers The following is the business address:

KARIBU GREEN GROCERS SHOP

P.O BOX 97 KISII.

Miwani grocer
m
Kebirigo shop
i
grocers g
company o
r
Nyamache grocers
i
company

KERICHO NAKURU

k
i Gilanis Keroka grocers shop
KARIBU GREEN s supermarket
GROSER SHOP i
i

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2.4FORM OF BUSINESS OWNERSHIP
The business will be a sole proprietor. Being the manager the employement of others employees to
assist in operation of the business. Having chosen this kind of operation because of being the controller
of the business and activites carried out.

These are advantages of sole proprietor;

Easy to acquire legal requirement

Direct contact with customers

Being self independent

Easy to make decision

Being the boss of the business

Enjoy all the profit

Create employment for others

Disadvantages of sole proprietor;

There is limited capital

Lack of continuity

Limited size to expand activities

Unlimited liability

2.5 THE TYPE OF BUSINESS

The business will be a starter, product will be sold in wholesale and retail .It will purchase groceries from
grocers company and sell it wholesale and retail.

2.6 PRODUCT AND SERVICES

The product will be green grocery like all kinds of vegetables e.g cauliflowers, broculli, cabbages, kales ,
okra e.t.c and fruits like apples ,avocado, grape fruits, honey melon strawberries and will also sell non-
perishable foods that are packaged in bottles and boxes. will sell juice from fruits without using any
chemical for health purposes .

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Having good contact with customers, they will make the business to develop and increase hence will
look deeper to know the approximate population that will buy goods and have frequent . Also in what
quantities and type of product they like. I will intend to sell product to marani wholesalers, keumbu
wholesalers as they are located at the centre of the business .

Goods will be delivered to the customers at there work place and also customers will be coming to
purchase goods from the shop.

2.7 JUSTIFICATION OF THE BUSINESS OPPORTUNITY

Since the area have good communication network and transportation with the knowledge of food
technology and good security the owner will ensure the products are sold everywhere and they are of
good quality taste good and fresh to attract more customers around the area. Also the owner will sell
the products to other towns.

2.8 INDUSTRY
Green grocery fall under grocers industry . having the desire to achieve the goals and action oriented
will solve the problems that will accomplish solution for the business success.

I will initiate new ideas , independent to decide positiveness and time consciousness, creativity and
innovative to do duties in a better way. The business will take modern technology since the world have
improve much in everything and there is development

2.9 GOALS OF THE BUSINESS OBJECTIVE

These are the goals set up in a business within the short lifespan and does not exceed one year.

Ensure there is always set up in a business within the short lifespan and does not exceed one year.

Ensure there is always stock of material and product according to change of technology.

Offering speed and fast service to the customers.

Making of customized products within a short time for customers to be aware of established business.

2.10 ENTRY AND GROWTH STRATEGY.

Advertisement should be needed and will be the use of visible posters which will be placed in different
places at the start of the business .Also with social media will also apply at large e. g magazines,
television so that information gets many people.

I will ensure I use powers to capture the customers. I will have good strategy whereas working for more
hours with well-equipped employees.

The business requires a maximum capital of 1,500,000 in order to operate. The business requires seven
workers. And the manager requires obtaining licences from the government when the business starts to
operate.

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2.10.1 ENTRY PLAN

1,500,000 is required in the business in order to operate the licences will be required from Kisii county
government and also seven workers are needed for the start.

2.10.2 GROWTH PLAN

Once the business starts to achieve obligation long term goals and interest, the next move will be to
make a provision. There will be expansion at the premises by increasing staff and further decentralize by
opening other companies in different towns. The manager is required to train the employees. The
manager also need to advertise the goals being produced by use of media new papers, bill boards,
poster and word at mouth, also maximum security is required.

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 CHAPTER THREE
3.0 MARKETING PLAN
Is all activities which will take place to ensure that there is a proper work flow and ready market for the
grocers to be sold?

3.1 CUSTOMERS
Since the business is situated just at the centre of the town , the manager will also carry out research
and survey.

The manager will have to know exact customers who will like and purchase the product in bulk.

The business will deal with domestic customers within kisii town distributed customers and commercial
customers.

3.1.1 COMMERCIALCUSTOMERS

3.1.2 INDIVIDUAL CUSTOMERS.

Are customers who will buy directly from the depot in small quantities.

My individual customers will be from kisii town and other market Centre boarding kisii town.

Among those include mwembe food kiosk ,kisii general hospital, lamu big joint restaurant ,kisii boys high
travelling to various places as the business is next to kisii main bus stage.

3.1.3 INSTITUTION CUSTOMERS.

Among those classified as institutions customers are the kenyenya stockiest.

All of kisii township others will be far from kisii town but will be able to be meeting through the hived
lorry tha t will be transporting grocers to those places such as nyakoe, marani kegogi keumbu gesima

3.2 MARKET SHARES

The business is expected to attract 25 of the population in the town.

The remaining percentage of 75 will be shared among the two competitions such as miwani grocer’s
shop and kebirigo Grocers Company.

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PIE CHART SHOWING MARKET SHARES IN YEAR ONE.

Sales
karibu grocers
shop
25%

kebirigo
company karibu grocers shop
45% miwani
kebirigo company

miwani
30%

Karibu grocers shop= 25/100×360

=90Ċ

Miwani grocers shop= 30/100×360

=108

Kebirgo grocers= 45/100×360

=162

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3.3COMPETITION
NAME STRENGHT WEAKNESS RESOLUTION
Miwani grocers shop Have enough money to There products are sold Miwani grocers shop
run firms and at high prices will also ensure that
financially able goods will be sold at a
good price
Kebirigo grocers There transporting Most of the vehicles The company is having
company systems are goods, have breakdown and a plan at having new
they use vehicle delay transporting vehicles
transport their workers workers and goods and
and goods most of them are old
sometimes
Nyamache grocers Are well known all over They have poor They will ensure that
company the town since have management system management have
operations for a long whereby some skills on how they run
period of time managers do not have the business and good
qualities of knowledge
management skills
Keroka grocers shop Posses good Most of their workers In future the company
enterprenual skills do not have good will employ qualified
which enables them to quality education but workers who have
perform their activities they also acquire learnt education at
effectively training from fellow college level
workers in the firms
Karibu grocers shop The manager will It is not financial stable Ask for loans from bank
advertise the product to run the firm and the to enable them to run
to rural areas and all most of the workers business effectively.
urban areas for people are not qualified Plan to buy more
to know the products. vehicles when the firm
Employ qualified grows. All people get
workers and good considered during
transport systems. employ rent

3.3.1 WEAKNESS
They do not advertise their products to rural areas which make people from rural difficult to know their
product and services they offer. The managers will advertise products to rural areas but this is move
costly.

They do not allow credict facilities to their potential customers who will buy goods worth 10% 100,000
shillings offered credit facilities.

They sell products at high prices while the managers company will sell goods at fair prices .

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Causal workers are also untrained but they only acquire skills from the company or from qualified
workers who have experience in food and beverage education.

They do not give loans to causal workers which make causal not to benefit from any loans being offered
to permanent workers while the managers companies will only loan the causals who would have
worked at least for one year in the company but little amount not exceeding 15000 shillings.

3.3.2 CAPITALIZING COMPETITION WEAKNESS

The manager will advertise the products to make customers aware of new products and make business
known all over. The manger will produce high quality product to get credit facilities to potential
customers and sell at slightly lower price than the managers competitors.

3.4 METHODS OF PROMOTION AND ADVERTISEMENT

3.4.1 PROMOTION STRATEGY
The business will promote the potential customers by offering with free samples for example; calendars,
key holders, t-shirts and pens. The business will also organize for competitors such as athletics and ball
games for workers and those who will be given presents. The workers will be promoted according to
their level of education and also working experience and commitment of the workers

3.4.2 ADVERTISING STRATEGY

The manager will put posters and sign posts designed at strategic positions to inform and guide the
general public at the business location. The sign posts will be created at strategic positions within the
town the town and entrance of the premises

The owner of the proposed business sign post and posters will look as shown below:

KARIBU GROCERS SHOP

P.O BOX 97,

KISII

TELL; 0718641248

The business will advertise the products through the media, television will be used to show some
produce being produced in the local radio station such egesa fm , minto fm, keroche fm, radio Maisha.
Another way of advertising is by use of car and people who will be announcing the product being sold
and the prices of rhe product. Also newspapers products by ensuring that the product and their prices
are indicated in the news papers .bill boards can also be used as of drawings.

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3.5 PRICING STRATEGY.
Pricing of product and services within the managers business will be determined by cost of commodities
costing of raw materials, the movements of the product or sale and cost of product.

The manager also consider the trend of the market scene at different terms and seasons.

The pricing will be expected to be lower than the other competitors at the beginning .

The price will also depend on the quality, size and shape of the product to be sold.

The price of the product of the business will therefore be determined through the following.

i)The demand.

This will depend on the price of the product and more so if the demand arises highly the price will be a
little bit flexible to the customers this apply to karibu grocers shop and also cost of production the price
of ill be the production cost in this case the properties should be higher cost of the, material labour and
other expenses.

ii) There will be a discount of 10% for the total purchase of the product worth 7000 and 20% for product
with above 10000.

3.6 SALES TACTICS

Sales tactics are method used to achieve designed level.

The sale tactics the business would use is that the business should sell the product through direct selling
method hence the proprietor shall be able to make direct contact with customers to understand their
need their needs more .

The manager will also display to attract customers who will be passing by and allow the customers to
serve themselves.

3.7 DISTRIBUTION STRATEGY

Distribution tactic is a method used to ensure that consumption of the services and goods. The
proprietor shall ensure that the products reaching the customers by use of agents also representatives
reach them at a lower cost. the channel of distribution shall be as follows;

i) Manufacture- whole seller- retailer- customer

ii)
iii) Manufacture- retailer- consumer
iv) Manufacture- consumer

Through the channels the firm will distribute products around the region.

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 CHAPTER 4
4.0 ORGANIZATIONAL AND MANAGEMENT PLAN
Under different services Karibu Grocers shop will harp a well-planned and successful team who will be in
charge of. It is important to have experienced people in that field not less than three years in the related
workers who will be doing the work.
The owner will be the general manager who will be charge of all directions and making decision in the
grocery example the manager, cashier, storekeeper purchasing officer and marketing officer. The
business under such as a team it will grow.

4.1.1 MANAGEMENT TEAM

Manager will be the owner of the business and in charge of everything in the business and the final
person on everything going on in the business.

The manager will earn kshs 20,000 per month and there will be in charge of all activities and
performance in the grocery she will order for any requirement needed to be used in the grocery.

4.2 OTHER PERSONAL

4.2.1 Cashier
He should be a computer literate

Should be able to speak fluent English and Kiswahili should have at least two years’ experience in the
field.

4.2.2 DUTIES AND RESPONSIBILITIES

Responsible for keeping daily financial record and give them out the chief accountant at the end of the
month.

Guiding daily cash account

4.2.3 STORE KEEPER

Should be able to speak fluent English and Kiswahili

Should be of age 20 to 35 years

Should be a computer literate.

Duties and responsibilities

She takes the records of stock in the store correctly in the computer in the computer

She order for the stock when there is a shortage

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 4.2.4 PURCHASING OFFICER
He should be a computer

Should have a diploma in purchasing and suppliers

Duties and responsibilities

He compares the price for each item before purchasing it

Responsibilities to know the requirements in each department so that he can purchase in advance

4.2.5 MARKETING OFFICER

He should be friendly when talking to customers should be able to speak fluent English and Kiswahili

He should be of between 25 to 35 years

Duties and responsibilities

Organizes promotion in the shop and to all workers

Responsible for advertising products and services provided in the firm

ORGANIZATRION CHARTS

MANAGER

FINANCE SALES PRODUCTION OTHER

MANAGER MANAGER MANAGER DEPARTMENTS

SALES PRODUCTION
OFFICER OFFICER

ACCOUNTANT CASHIER SECURITY SECRETARY DRIVER STORE

KEEPER

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4.3 RECRUITMENT TRAINING AND PROMOTION
4.3.1 RECRUITMENT
The firm will take several stages in recruiting workers. Job vacancies will be advertised through posters
and radio. Applicants will apply and selection is done for interviews. For those who will qualify for the
interview will be considered and will be recruited to the firm.

4.3.2 TRAINING
The training will be offered while workers continue working. The workers will be given a proper training
on how to make use facilities. The purpose of training will be for the workers to gain more skills and be
equipped with the firm. Every part and section of the grocery will be introduced so as it is easier for
them when working. By doing all this the workers skills will be improved.

4.3.3 PROMOTION
According to performance of work and qualification of studies there will be promotion to workers. The
method to be used will be to promote their products and services as a free sample for example t-shirts
jackets and others so the business will spend ksh 6000 for promotion for event and its usually once in a
month.

4.4.0 REMUNERATION AND RECEPTIVE

4.4 REMUNERATION
In most cases employees are employed according to qualification of studies and performance of work
and therefore are paid depending on their skills. Labor and contract agreement. Those workers working
hard will be gifted and by doing this the workers will be motivated and they will work extra hard.

4.4.1 INCENTIVES
There will be benefits of employees as follows;

i) Promotion
ii) Leaves or off duty
iii) Lunch and supper
iv) Prizes and certificates at the end of the year
v) Offering houses

The business will grow successfully as the time goes and there will be an increment of workers salary
and expansion of the business.

This will be the salary of employees

Employee No Basic salary allowances Gross pay

Manager 1 20,000 6000 26000

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 Cashier 2 8000 3000 11000
Store keeper 3 6000 3000 9000
Purchasing officer 4 8000 3000 11000
Marketing officer 5 8000 3000 1100
total 50000 18000 68000

4.5 PERMIT, LICENCE AND BY- LAWS (LOCAL REQUIREMENTS)

4.5.1 PERMITS
The firm will be permitted by the council and the business will run smoothly without disturbance.

4.5.2 LICENCE
The license of the firm will be got from the council of Kisii County. Every month the firm will pay 5500
shillings to own the place without the council officers. The business will operate under the following

i) Business registration- This will state the type and forms of business and filled of
operation.
ii) Trade license- this will specify the goods and products to produce in the business.

4.5.3 BY- LAWS

The business will need to comply with the county laws of city council or municipal.

4.6 SUPPORT LAWS

The business will need advisors and support services to enable run the business for example
insurances, bank services, legal services

4.6.1 BANKING SERVICES

The firm will open an account with KCB bank which will be offering services to it. The account will be a
fixed account and will offer loans to the business. The purpose of the account will be saving the money
to enable proper growth of the firm.

4.6.2 INSURANCE SERVICES

The firm will be ensured with the monarch insurance. In case of fire or theft assistance and cover up will
be given by the insurance company. Every month the firm will be depositing 500 shillings for the
insurance.

4.6.3 CONSULTING SERVICES

Gusii will be offering advice on the run of the business and to the employees of the firm. If the firm is
not in good conditions will give advice and way out will also give direction and proper measures to the
growth of the firm. The charges for each visit will be 500 shillings.

4.6.4 LEGAL SERVICES

The firm will be defended by lawyer Bosire in case of any accusation in the court. There will be a proper
signed contract written, drafting legal letters, labour loss and employment. The chargeable fee will be
500 shillings.

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 CHAPTER FIVE
5.0 PRODUCTION
The proposed business has initial capital of one million five hundred thousand only (1500000).

The table below shows the production facilities and capacity.

Item Quantity Unit cost Total cost

Plastic creates 100 400 40000
Display stands 10 1000 10000
Weighing scale 4 2000 8000
Calculators 2 1200 2400
Tables 4 1400 5600
Chairs 10 450 4500
Refrigerator 2 50000 10000
Deep freezer 1 50000 50000

Total 133 106450 220500

5. BUSINESS PREMISES/LAYOUT
The business will be situated between tuskeys supermarket next to kisii boys high school along migori
road. The business will be rented at monthly rate of 2500.

The following is the layout of the propose business premise

5.0 BUSINESS PREMISES/LAYOUT

Receptio Secretary Accounts Sales and Security workshop Maintenanc Fire Conference Director
n office office marketin office e room assembly room s room
g office point

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5. REPAIR AND MAINTENANCE
The firm will employ repair and services to strengthen the business assets. The business intents to carry
out these services apart from emergency twice a year. The service will cost the business ksh 2000 per
every service that is kshs 1200 for the first year.

5. PRODUCTIVITY STRATEGY
5. MONTH MATERIAL REQUIREMENTS
The following table shows the monthly material requirements at the end of every month through the
vary

Item Quantity Unit cost (ksh) Total cost(ksh)

Stock ( fruits) 1000kg 1000 100000
Stock (vegetables) 1000kg 1000 100000
Packaging
Materials 500 papers 20 10000

5. MONTHLY LABOUR REQUIRMENTS

Item Quantity Unit cost (ksh) Total cost(ksh)
Manager 1 15000 15000
Supervisor 1 14000 14000
Accountant 1 12000 12000
Sales manager 1 12000 12000
Cashier 1 10000 10000
Accounts clerk 1 10000 10000
Sales promoter 2 8000 16000
Security officer 1 6000 6000
TOTAL 9 870000 95000

5 MONTHLY PRODUCTION EXPENSES

Particulars Total
Insurance 2500
Rent 2000
Water bills 1500
Electricity 1000
Postal 1000
transport 1000
Advertisement 1500
Packaging 1000

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 TOTAL 12000
5 PRODUCTION DESIGN AND DEVELOPMENT
The firm will intend to sell product to sell product that are fresh and well preserved and approved by a
health officer. To maintain the product quality there will be proper storage facilities for example deep
freezers and cool rooms to provide cool temperature to maintain their freshness. The manager intends
to catch up with this current technology the business. The appendix below shows of products that the
proposed business will offer will be avocado, apples, coconuts, melon, okra, peats, pawpaws, beetroots
and vegetables like cabbages green pepper, yams, leeks, couliflowers. Also the business will sell non-
perishable foods that are packed in boxes, bottles and juices from fruits without using any chemical for
health purposes.

5. PRODUCTION PROCESS
RECEPTION

Sorting

Washing /cleaning

Arranging in crates

Arranging in shelves

Store

Supply

This process of production which involves reception of empty crates to the final storage of already filled
with grocers. The grocers after reception from the market are sorted out and checked for fresh ripe, not
ripe, old, size, shape. They are then washed under clean running water also crates are washed and dried
completely with clean towels.

5 GOVERNMENT REGULATION AFFECTING OPERATION

Are precautions set on high standard of business in its operation in terms of health environments to be
condusive. This not only affects the employees but also attracts the customers.

5 ENVIRONMENT REGULATION
The manager of the business intents to put a notice of encouragements at the gate which is the main
entrance and exit to alert the public customers also employees on the importance of cleanliness. It will
therefore very important to keep the environment clean and always maintain to employees health but
also attract more customers. By doing this the manager will keep environment clean by

I) Planting of trees and good smelling flowers

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 II) Installation of compost pit at strategic area where dirt can be disposed
III) Ensuring availability

5 SAFETY REGULATIONS (SAFETY ACT 49)

T he manager of the proposed business will take into consideration safety precautions in the firm incase
of an emergency. To every office will ensure that they have a first aid kit well equiped to safe guard
human life in case of emergency like shock, also will display warning notices a very danger zone at the
business premises to deal with fire breakdown.

5 HEALTH REGULATION (PUBLIC HEALTH ACT 247)

The manager will ensure that the health regulation are properly observed in the business. Therefore she
will ensure the following points are observed

i) Acquisition of health certificates before commence of business

ii) Cleanliness of the products their storage facilities and entire environment
iii) The product of free injection from any disease

26 | P a g e
 CHAPTER SIX
6) FINANCIAL PLAN OF KARIBU GROCERS SHOP
Karibu grocers will need a startup capital of 1500000 shillings of which will be received different sources
such as own savings, parents, relatives and friends and from financial woman organization. The financial
women organization. The financial plan shows how enterprise will yield profits and projects for future of
the business.

CAPITAL OWNERSHIP AMOUNT

Own capital 1,000,000
Parents 100,000
Bank loans 300,000
Friends 1,00,000

TOTAL 1,500,000

6.1 INTRODUCTION
The manager will have the duty of purchasing aquipment. The equipment such as weighing scale for
weighing grocers in the shop. License registration, furniture, title deeds for the land ownership also
insurance cover will be required by the manger.

6.2 PRE OPERATIONAL COSTS

At this section the manager needs to acquire transport, electricity, trade license, advertisement,
registration equipment machines, and telephone consultations.

6.3 THE WORKING CAPITAL

Item Year 1 Year 2 Year 3
CURRENT ASSETS KSH KSH KSH
Stock 800000 950000 975 000
Cash in hand 62500 64250 66000
Cash in bank (KCB) 337500 338900 400000
Debtors 40000 44000 49000
Total current assets 1240000 1397150 1490000

CURRENT LIABILITIES
Bank overdraft 120000 120000 130000
Creditors 90000 82000 82500
Short term loans 500000 440000 329000
TOTAL CURRENT 710000 642000 532000

27 | P a g e
 LIABITIES

Working capital = current assets – current liabilities

YEAR 2021 YEAR 2022 YEAR 2023

124000 1397150 149000
-71000 -642000 -532000
530000 755150 958000

6.5 PROFORMA TRADING PROFIT AND LOSS ACCOUNT

ITEM YEAR 2021 YEAR 2022 YEAR 2023
Cash sales 4623000 3408100 4423000
Credit sales 15% of cash 663450 511215 663450
5236450 3919315 5086450

Opening stock - 82837 135119

2689700 1531700 1697600
2859246 227955 254640
2942302 1844292 3303359

Less closing stock (82837) (135119) (707861)

2859246 1709173 3232573
Gross profit stock 4540163 3272981 4352214

Expenses
Rent 66000 72000 8166
Salaries 1627000 1629840 1630800
Transport 68900 94880 87590
Electricity 30398 32395 34711
Water bills 112680 126200 128620
Advertisement 44400 58800 69100
License 5000 5500 6500
Depreciation 4000 4500 5200
Net profit before tax 1958378 2024115 1970687

28 | P a g e
6.6 PROFORMA BALANCE SHEET FOR YEAR 2021
FIXED ASSETS COSTS KSH ACC. DEP M.B.V KSH
Refrigerator 150000 - 150000
Furniture 100000 - 100000
Motor vehicle 200000 - 200000
450000
CURRENT ASSETS
Stock of goods 950000
Debtors 44000
Cash at bank 338900
Cash at hand 64250 1397150

CURRENT LIABILITIES
Creditors 82000
Short term loans 520000 602000
795150
1245150

Net worth 1200000

Net profit 1532366.4
2732366.4
Less drawings 1527216.4

29 | P a g e
6.7 FROFORMA BALANCE SHEET FOR THE YEAR 2022
FIXED ASSETS COSTS KSH ACC. DEP M.B.V KSH
Refrigerator 150000 - 150000
Furniture and fittings 100000 - 100000
Motor vehicles 200000 - 200000

CURRENTASSETS 95000
Stock of goods 49000
Debtors 400000
Cash at bank 600000
Cash at hand 1490000

CURRENT LIABILITIES 82500

Creditors 130000
Bank overdrafts 320000 (532500) 957500
Short term loans 1407500
Working capital

Financed by 1200000
Net worth 1543681.6
Net profit 2743681.6
1336181.6
Less drawings

6.7 KARIBU GREEN GROCERS SHOP BREAK ANALYSIS

YEAR 2021 YEAR 2022 YEAR 2023
DESCRIPTION KSHS KSHS KSHS
Sales 5286450 3919315 5086484
Electricity 30398 32395 34711
Water bills 4965 7043 4901
Advertisement 44400 58800 69100
transport 68900 94884 87590

148663 193122 196302

30 | P a g e
Contribution= total sales- total cost

Year 2021 = 5286450- 148663

=5137787

Year 2022= 3919315- 193122

= 3726193

Year 2023= 5086484- 196302

= 4890182

Contribution margin= contribution×100

Sales

Year 2021= 5137787×100

5286450

= 97.2%

Year 2022 = 3726×100

3919315

=95.1%

Year 2023 = 4890182×100

5086484

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6.8 PROBALITY RATIOS

Gross profit margin = gross frofit×100

Sales

Year 2021 = 4540163×100

5286450

=85.9%

Year 2022= 3272981×100

39199315

=85.51%

Year 2023= 40522214.4×100

=85.6%

RETURN OF EQUIT

Net profit after tax x100%

Equity contribution

Year 2021= 1567502.4x100

1200000

=130.6%

Year 2022= 1641023.6x100

12000000

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 = 136.7%

Year 2023= 1584766.6x100

12000000

=132.1%

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6.4 PROJECTED CASH FLOW STATEMENT FOR THE YEAR 2021 FOR KARIBU GROCETRS
MONTH JAN FEB MAR APRI MAY JUNE JULY AUG SEP OCT NOV DEC TOTAL
CASH IN
FLOW
Balance 39800 78700 137020 123040 105540 25100 25635 13823 11145 74437 40637 2239834
Cash from 9000 7000 10000 5000 3800 8000 9200 10500 62500
debtors
Cash sales 24000 270000 330000 230500 24000 230500 27000 289000 300000 310000 325000 389000 4623000
Total cash 24000 309800 408700 376520 370040 376520 370100 422835 443230 429450 406637 110137 4278234
flow
Cash outflow
Advertisemen 1200 2500 2880 3500 3500 3500 6800 4500 6000 3000 2500 2800 4400
t
Creditors 2000 2300 3100 1300 1350 1220 4100 2800 3200 843450
Salaries 135600 135600 135600 136500 136500 136500 136500 136500 136500 136500 136500 136500 1638000
Electricity 2000 2000 2130 2130 2200 2500 22585 2750 2445 2728 2870 3000 30426
Transport 4500 4500 4200 4200 4800 6000 6000 7500 7500 4300 6800 7810 68980
Rent 5500 5500 5500 5500 5500 5500 5500 5500 5500 5500 5500 5500 66000
Water bills 12000 1330 1300 1330 1400 1390 1510 1420 1380 1220 1340 112680
License 5000 5000
Insurance 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 12000
Purchases 120000 1000 204000 100500 115100 115100 135200 144500 152276 162524 162524 192600 2689700
Total cash 279800 154100 26530 256430 264460 270490 274465 274605 335108 366000 355108 573300 35535894
flow
Balance 39800 78700 137020 123040 105590 95635 148230 111455 74437 74437 40637 40637 1200620

(c/f)
6.4 CASH FLOW STATEMENT FOR 2022 FOR KARIBU GREEN GROCERS SHOP
MONTH JAN FEB MAR APRI MAY JUNE JUL AUG SEP OCT NOV DEC TOTAL

Cash in
flow
Balances 82837 103367 94997 124997 152207 178797 216682 212823 212694 187674 172814 157964 1897863

(b/d)
Cash from 10000 7500 10500 9400 6700 6990 11000 11300 7500 9500 6000 12400 108340
debtors
Cash sales 231000 240000 275000 300000 310000 289500 300500 325500 345500 269000 253500 300100 3400810
Total cash in 373837 3508327 380497 463907 475287 527682 549123 454744 466184 466184 432314 4470464 5384383
flow
Cash outflow

Advertisemen 2000 2500 2300 3000 3200 3000 5000 2500 2500 10000 9800 9000 58800
t
Creditors 2800 2980 3200 3280 2920 2010 3400 3250 3800 4200 4300 4300 94880
Salaries 135820 135820 `35820 135820 135820 135820 135820 135820 135820 135820 135820 135820 2629840
Electricity 33000 2800 2850 2590 2000 2340 2310 2570 2950 3010 3000 2979 33395
transport 6400 6000 6700 7500 6300 8500 9000 8800 7390 8795 9500 10000 94400

Rent 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 72000
water bills 1320 1800 1420 1290 1289 `1320 1320 1320 1382 1389 1404 1450 15500
License 5500
insurance 1250 1250 1250 1250 1250 1250 1250 1250 1250 1250 1250 1250 15000

Purchases 14100 119200 137500 149200 155200 144200 150252 162525 122232 124902 126672 122600 13331700
Total cash 279470 250670 255500 283290 290110 258966 314859 346429 276060 293370 274250 335345 3444156
flow
Balance(c/f_ 103367 94997 124925 124997 152207 18787 215632 212883 212694 187664 172814 157964 1945245

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6.4 PROJECTED CASH FLOW STATEMENT FOR THE YEAR 2023 FOR KARIBU GREEN GROCERS SHOP
MONTH JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALS
Cash in flow
Balances(b/d) 135119 132798 130804 101624 92257 86695 106755 78513 57163 57163 83672 90861 1815808

Cash from 150000 10000 7980 8000 6980 10000 11000 14000 13579 13579 17203 17983 1398698

debtors
Cash sales 255000 280000 300000 2750000 261000 297300 259600 279100 279100 279100 350000 388000 2442300

Total cash in 4055119 422739 438784 384624 360237 393995 377355 331613 371142 371742 420982 442800 5696702

flow
Cash outflow
Advertisement 2300 2000 2900 7000 4500 3800 5900 8700 10500 10500 7800 9500 69100

Creditors 2288 2420 2000 2820 3000 2890 2650 3020 3450 3450 4225 4350 630800

Salaries 135900 135900 135900 135900 135900 135900 135900 135900 135900 135900 1355900 135900 1630800

Electricity 2500 2300 2750 2950 3000 3250 3150 2932 3590 3590 2530 2820 38711

Transport 6800 8500 6400 6200 6300 5940 9000 8800 5850 5850 10500 10600 87590

Rent 6800 6800 6800 6800 6800 6800 6800 6800 6800 6800 6800 6800 81600

Water bill 1380 1388 1392 1402 1420 1326 1350 1380 1380 1400 1430 1492 728620

License 6500

Insurance 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 14400

Purchases 27200 291935 337160 137900 130520 148420 129980 139180 148200 148292 175825 194200 2697600

Total cash 272380 142200 337160 292364 273542 287240 307172 314472 333487 269054 350095 368982 427282

flow
Balances (c/f) 132789 130804 101624 92257 86695 106755 78513 83001 83672 90861 92982 92982 2848477

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