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THE BUNGOMA NATIONAL POLYTECHNIC

BELLI’S CYBER CAFÉ BUSINESS PLAN

PRESENTER: WANYONYI NAFULA BELINDA

INDEX NO. 6021010136

SUPERVISED BY: MADAM VELIMA

INSTITUTION: THE BUNGOMA NATIONAL POLYTECHNIC (BUSINESS

DEPARTMENT)

BUSINESS PLAN SUBMITTED TO THE KENYA NATIONAL EXAMINATIONS

COUNCIL (KNEC) IN THE PARTIAL FULFILMENT OF THE REQUIREMENTS FOR

THE CRAFT CERTIFICATE IN SECRETARIAL STUDIES.

JULY/AUGUST, 2025
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DECLARATION
The project report is my original work and has not been presented to any college or examination
body.

Name of student………………………………………………… Signature ………………

The project report is presented for examination with the approval of my supervisor.

Name of supervisor …………………………………………… signature………………

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DEDICATION
This business plan is dedicated to my beloved parents and to my beloved brothers for their
support and other personal effects throughout my course work. May the almighty God bless
them abundantly.

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ACKNOWLEDGEMENT
I would like to acknowledge all those who participated in a positive contribution towards my
project. My first acknowledgement goes to my beloved parents and brothers for financial
support and encouragement they offered me. Also I would like to thank colleagues for their
active discussion of the facts towards success in writing of the business plan.

Here, I also acknowledge my beloved supervisor madam Madam Velima for giving me the best
moldering skills and other guidance towards the writing of this business plan.

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Executive Summary

Business Name: Bell’s cyber cafe

Location: Near Bungoma National Polytechnic, Bungoma County, Kenya
Business Type: Service-Based – ICT, Printing & Digital Solutions
Ownership: Sole Proprietorship – Belinda (CEO)

Overview:
Bell’s Café is a start-up ICT hub located strategically near Bungoma National Polytechnic, targeting students, local
professionals, business people, and the surrounding community. The business aims to provide high-quality,
affordable, and fast digital services including internet access, printing, photocopying, scanning, typesetting, graphic
design, educational tutorials, gaming services, and document processing.

Vision Statement:
To be the leading digital service provider and youth empowerment centre in Bungoma County, fostering access to
technology, information, and employment opportunities.

Mission Statement:
To deliver reliable, affordable, and customer-centred ICT and printing services while creating a vibrant hub for
youth innovation and learning.

Objectives:

 To serve over 100 customers daily within the first six months of operation.
 To achieve monthly revenue exceeding KES 150,000 by the end of the first year.
 To expand services to include a freelance co-working hub and fashion design training center within 18
months.
 To create at least 5 direct employment opportunities and train over 50 youths annually.

Products & Services:

 High-speed internet browsing & access

 Photocopying, printing (color and black & white), binding, and laminating
 Scanning and emailing

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 Graphic design and typesetting

 Online application support (eCitizen, HELB, KRA, job applications, etc.)
 Academic research assistance and project typing
 Gaming zone with PlayStation and PC games
 Educational tutorials and basic computer training

Market Opportunity:
With an increasing number of students, job seekers, and online service demands, Bungoma offers a growing market
for digital services. The cyber café is positioned to serve the educational and business needs of the youth and
professionals in the region.

Competitive Advantage:

 Strategic location next to a major learning institution.

 Affordable pricing with high-quality output.
 Customer-friendly environment with reliable customer support.
 Integration of multiple services under one roof (e.g., printing + internet + training).
 Strong branding and youth empowerment programs.

Financial Overview:

 Start-Up Cost: KES 450,000 (equipment, lease, branding, licenses, marketing)

 Monthly Operating Costs: Approx. KES 70,000
 Break-Even Point: Expected within the first 8-10 months
 Projected Monthly Revenue: KES 120,000–200,000 depending on service uptake

Funding Requirement:
We seek an investment or loan of KES 500,000 to support business setup, equipment purchase, space renovation,
and initial working capital. In return, investors are assured of structured repayment or equity consideration
depending on the partnership agreement.

Growth Strategy:

 Build a loyal customer base through quality services and community engagement.
 Expand into digital training, freelance workspace, and textile/fashion business.
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 Introduce mobile services and doorstep document processing to reach more clients.
 Partner with schools, churches, and government offices for bulk service provision.

Contents

Table of Contents
DECLARATION.....................................................................................................................................................................ii
DEDICATION........................................................................................................................................................................iii
ACKNOWLEDGEMENT......................................................................................................................................................iv
Executive Summary..................................................................................................................................................................v
CHAPTER ONE......................................................................................................................................................................1
0 BUSINESS DESCRIPTION.............................................................................................................................................1
Purpose................................................................................................................................................................................. 1
The Sponsor.........................................................................................................................................................................1
Owners Background.............................................................................................................................................................1
1.2.1 Ownership structure.................................................................................................................................................1
1.2.2 Figure 1 Percentage contribution.............................................................................................................................2
1.3 The Business..............................................................................................................................................................2
1.3.1 Business Name.........................................................................................................................................................2
1.3.2 Business Location....................................................................................................................................................2
1.3.3 Figure 2 Map Directions to BELI’S cyber Café......................................................................................................3
WILL BE LOCATED..........................................................................................................................................................3
1.3.5 Vision.......................................................................................................................................................................4
1.3.6 Mission....................................................................................................................................................................4
1.3.7 Business Logo..........................................................................................................................................................4
1.4 The Services...............................................................................................................................................................4
The Entry and Growth.........................................................................................................................................................5
BELI’S Cyber Cafe objectives for the first two years of operation include:............................................................5
CHAPTER TWO.....................................................................................................................................................................6
MARKETING PLAN....................................................................................................................................................6
Purpose...........................................................................................................................................................................6
2.1 Potential Customers...................................................................................................................................................6
2.2 Market Share..............................................................................................................................................................6
2.3.1 Pie Chart Showing Market Share.......................................................................................................................7
2.3 Potential Competition................................................................................................................................................7
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Analysis of Strength and Weakness.............................................................................................................................8

Pricing Strategy..............................................................................................................................................................9
2.5.1 Price List.....................................................................................................................................................................9
2.4 Sales Tactics..............................................................................................................................................................9
2.5 Advertising and Promotion Strategy..........................................................................................................................9
Distribution Strategy...................................................................................................................................................10
CHAPTER THREE...............................................................................................................................................................11
3.0 Organization.............................................................................................................................................................11
3.0.1 Organization chart.................................................................................................................................................11
3.0.2 Manager.................................................................................................................................................................13
Duties and Responsibilities................................................................................................................................................13
3.0.3 Technician..............................................................................................................................................................13
3.3.2.2 Duties and Responsibilities................................................................................................................................13
Duties................................................................................................................................................................................. 14
3.0.4 CLEANERS...........................................................................................................................................................14
Duties................................................................................................................................................................................. 14
3.7.2 Remuneration............................................................................................................................................................14
3. 7.3 REMUNERATION AND ALLOWANCES TABLE IN KSHS.............................................................................14
3. 7.4 Incentives...........................................................................................................................................................15
3. 7.6.Promotions...............................................................................................................................................................16
3. 8 Licenses Permits and Rules........................................................................................................................................16
3. 8.1 Trade license...........................................................................................................................................................16
3. 8.2 business permit..................................................................................................................................................16
3. 8.3 Labour Permit..........................................................................................................................................................16
3. 9.7 Auditors...................................................................................................................................................................16
CHAPTER FOUR..................................................................................................................................................................17
4.2.1 Table showing analysis of the firm’s machines, equipments and their costs........................................................17
4.3.2 Monthly Labour Requirement...............................................................................................................................18
License...............................................................................................................................................................................19
CHAPTER FIVE...................................................................................................................................................................20
5.0 Preoperational Costs................................................................................................................................................20
5.1 Estimate of Working Capital Requirements............................................................................................................21
Assumptions.................................................................................................................................................................23
3. Contribution margin percentage..........................................................................................................................28

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5.5.1 The total fixed costs i.e. operating expenses for year 1................................................................................29
4. Break-even level of sales in shillings....................................................................................................................29
5.3 Desired financing.....................................................................................................................................................29
5.4 Proposed Capital......................................................................................................................................................30
5.5 Expected Profitability Ratios...................................................................................................................................30
APPENDIX II: Business Layout......................................................................................................................................33

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CHAPTER ONE
0 BUSINESS DESCRIPTION

Purpose
The proposed business is an Internet and technological access. The business name is BELI’S Café
and is owned by WANYONYI NAFULA BELINDA. He is a student at BUNGOMA
NATIONAL POLYTECHNIC taking craft certificate in secretarial studies. The prime purpose of
this business is to provide communication services and entertainment through internet. BELI’S
Café is the answer to an increase in public demand for:
1. Access to methods of communication and volumes of information now available on the
internet.
2. Better and quality refreshment, communication and entertainment.

The Sponsor
Owners Background
The business will be sponsored by the owner WANYONYI NAFULA BELINDA. She is 21 years
old. She is a resident of Bungoma town, in Bungoma County. She is a student at The BUNGOMA
National Polytechnic undertaking craft certificate in secretarial studies. She possess skills in
Computer Applications, Information System Management and Introduction to Computers
Operating Systems, Entrepreneurship and Communication Skills, Programming in different
languages System Administration and System Analysis as well as a Network Administration.
These skills will help him in building the foundation of the business and run it.
1.2.1 Ownership structure
The business ownership will be sole proprietorship and will be financed by the owner from her
savings. She will get the rest of the capital as Short-term Loans from bank and from The Youth
Development Fund.
The total contribution for the business will be Ksh. 3, 749,000 of which the owner will contribute
Ksh. 1, 800, 000/= that is 48% from personal savings, Ksh. 1, 205, 000/= which is 32% will be
from Short Term Loan and the rest 20% which is Ksh. 744,000/= will be from the Youth
Development Fund.

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1.2.2 Figure 1 Percentage contribution

1.3 The Business

1.3.1 Business Name
The business shall be called BELI’S Cyber Café.
1.3.2 Business Location
BELI’S Cafe will be located in Bungoma town Bungoma County in Khetias building Next to the
Post office; along Nairobi-Webuye Road, behind Bungoma District Hospital. The building where
the business will be located will be leased. The business will start its operations on January 2022.
The business will operate under sole proprietorship.

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1.3.3 Figure 2 Map Directions to BELI’S cyber Café

NAIROBI-WEBUYE
HIGHWAY

BUNGOMA DISTRICT
HOSPITAL
POST KHETIAS
OFFICE BUILDING

Fig. 2 Map Direction WHERE BELI’S

WILL BE LOCATED
1.3.4 Address
BELI’S Cyber Cafe
P.O BOX 1500

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Bungoma
TEL: +254 743293995
E-mail address: beli’[email protected]
1.3.5 Vision
To provide fast, quality and effective services to our esteemed customers
1.3.6 Mission
BELI’S Cyber Café seeks to be an ICT provider for socio-economic enrichment of our society.
We strive to exceed our clients’ expectations with friendly services, fast and effective ICT
solutions.
1.3.7 Business Logo

1.3.8 Justification of Opportunity

 Bungoma town is the core of most activities in the district considering the fact
that its the headquarters of Bungoma County. Has large number of business
enterprises, hospitals, institutions, investors in businesses and residents who would
be potential clients to the BELI’S Cyber Café.
 Good transport network makes it easy for customers to access the business
 Political stability makes it the running of the business smooth and investment in
the region and this makes the business gain profit.
 There are quality personnel who are skilled and experienced thus providing quality
services to the customers.
 There is enough security in the region this will ensure smooth running of the
business.

1.4 The Services

BELI’S Cyber Cafe will provide full access to email, WWW, FTP, Usenet and other internet
applications such as Telnet and Gopher, Printing, Scanning and Introductory courses to the
internet.
BELI’S Cyber Cafe will also provide customers with unique and innovative environment to enjoy
great cyber services.
It will provide its customers with full access to internet and common computer software and
hardware.
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The Entry and Growth

BELI’S Cyber Cafe will appeal to individuals of all ages and backgrounds. The introduction of internet
classes and the helpful staff that BELI’S Cyber Cafe provides will appeal to the audience that does not
associate themselves with the computer age. This educational aspect will attract younger and elderly
members of the community who are rapidly gaining interest in the unique resources that online
communications have to offer.
Provision of WI-FI services to the clients will also be able to access the internet through their smart
phone, laptops, tablets and i-pads at a cost will encourage more customers to visit the café. BELI’S
Cyber Cafe will also carry out computer and Internet sensitization by educating the community through
Mobile-Computer-Room set in a van.
BELI’S Cyber Cafe objectives for the first two years of operation include:
 The creation of unique, upscale, innovative environment that will differentiate
BELI’S Cyber Cafe from local cybercafés
 Educating the community on what the internet has to offer
 The formation of an environment that will bring people with diverse interests and
backgrounds together in a common forum
 Affordable access to the resources of the internet and other online services.
As BELI’S Cyber Cafe grows, more communications systems will be added. The possibility of
additional units has been accounted for in the current plan. As the demand for internet

connectivity increases, along with the increase in competition, BELI’S Cyber Cafe will continue o add
new services and keep abreast with the current and ever changing technological trends so as to keep her
customers informed and give them a reason to come coming back for more.
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CHAPTER TWO
MARKETING PLAN

Purpose
BELI’S Cyber Cafe is faced with the exciting opportunity of being the first-mover in the Bungoma town
Cyber Cafes. The consistent popularity of internet combined with the growing interest in the Internet,
has proven to be a winning concept in other markets and will produce the same results for BELI’S Cyber
Cafe
The marketing plan will enable the proprietor to understand the:
 The nature of his potential customers
 Know his competitors
 Help in determining the pricing strategy
 Help in understanding the sales tactics, advertising and promotion including the
distribution strategy.
 Help him gain the knowledge about the market share.

2.1 Potential Customers

The targeted customers to BELI’S Cyber Cafe will be people who want a guided tour on their first spin
around the internet and to experience users’ eagerness to indulge their passion for computer in social
setting.
The potential customers are:-
 Teachers and government employees
 Institutions
 Form four leavers and university and college students.

2.2 Market Share

The market share in this regard will be summarized by comparing the opportunity with the three cyber
cafes already established. It will secure a high turn on customers.
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2.3.1 Pie Chart Showing Market Share

Big Mike BELI’S

18% Cyber Cafe
23% BELI’S
Kings centre
Wazito Cyber Cafe Wazito Cyber Cafe
26% Kings Centre Big Mike Cyber Cafe

33%

2.3 Potential Competition

In this area high competition is expected because of existing cyber cafes around. With the
insurgence of BELI’S Cyber Cafe is highly advantaged because of high quality facilities,
current technology and quality services it will offer through investment and affordable
pricing.
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Analysis of Strength and Weakness.

BUSINESS STRENGTH WEAKNESS
NAME
Kings center  Well established  Overcrowded
 Qualified staff  Poorly located
 Many facilities  Poor morale on staff.
 Proper funding
Wazito cyber cafe  Proper facilities  Poor facilities
 Qualified staff  Poor moral on staff
 Well established  Overcrowded
 Good location
Big Mike Cyber Cafe  Qualified staff  Few staff
 Better facilities  No variety services
 Well established  Poor site
BELI’S Cyber Cafe  Good facilities  Poor location.
 Qualified staff  Not well established.
 Good morale on  Poor funding.
staff
 Variety of services
 Proper promotion

2.4.1 COMPETITION ANALYSIS.

BUSINESS NAME LOCATION PRICING PERSONNEL EQUIP ADVERT TOTAL
Kings center 6 9 4 7 1 27

Wazito Cyber Cafe 3 7 3 6 1 20

Big Mike cyber 7 3 6 6 3 25

café
Royal Palace 3 8 7 7 5 30
Cyber Cafe
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Pricing Strategy
2.5.1 Price List
Item Price
Internet browsing Ksh1/- @min
Typesetting Ksh20/- per page
Printing 10/- per page
Photocopy 2/- per page
Spiral binding 30/-
Tape binding 20/-
Scanning 30/- per page
Graphics design Ksh500/-
Computer hands on skills tutorials 1000/- per package
KNEC registration per student Ksh300/-
HELB loan application Ksh300/-
KRA pin Ksh250/-
Pay slip application(GHRIS &TSC) Ksh250/-

2.4 Sales Tactics

Due to high competition BELI’S C y b e r Cafe will allow payments for services in installment
according to agreement with the present.
The firm will reward those audit staff who will work efficiently with accuracy and speed. The
management will appreciate those clients who will be bringing along with themselves their several
friends through offering those discounts and giving incentives thus encouraging them to be
permanent customers.
The management shall encourage cash payment so as to enable plan and follow agreement.

2.5 Advertising and Promotion Strategy

2.7.1 Advertisement

The business will be advertised mainly through the local dailies and occasionally through national
newspapers and local radio stations. The management also intends to publish Journals, calendars,
diaries, T-shirts and others and distribute them to the potential customers to ensure that the business is
well known and familiar to the locals.
A total of about Kshs.400 per advertisement will be spent. Through the correspondence that will be
received through the emails and in the suggestion box and the customer turn up the proprietor will be
able to vet the efficiency of the advertisement.

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Distribution Strategy
The services will be offered from door to door i.e. delivery services to customer in need as well as in our
business premises. Impromptu orders via the e-mail will be responded to. The proposed business
distribution channel shall be within its premises. The customers who will be in need of services
delivered at their doors will place their requests and the services will be delivered to them. In our
delivery we will use motorbikes but as time goes by we will acquire a van for the same purpose. There
are a number of problems likely to arise from this since there are some regions which are inaccessible
due to poor roads, break down of the motorbikes and this will lead to losses. This will be catered for
through frequent servicing of the motorbikes, service the roads where necessary and employing some
operatives who will ensure safety.

Bell’s Cyber Cafe

CLIENTS
r

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CHAPTER THREE

ORGANISATION PLAN

Objectives
 To manage and plan for quality services
 To achieve maximum profit on investment.

3.0 Organization
BELI’S Cyber Cafe is owned and operated by WANYONYI NAFULA BELINDA. The
company, being small in nature, requires a simple organizational structure. Implementation of this
organizational form calls for the owner, to make all the major management decisions in addition
to monitoring all other business activities.
3.0.1 Organization chart
The purposes of the chart are:-
a) Define the accountability system of the organization
b) Inform individual of their status within the management hierarchy.
c) Facilitate organization design.
d) Enable the preparation of management succession programme
e) Indicates line of communication
f) Show each manager span of control

The following is an organization chart for BELI’S Cyber Cafe

Manager
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Technician

Part Part Part Part Part Part

time 1 time 2 time 3 time 4 time 5 time 6

3.3 Key Management Personnel

For smooth and smart running of the business there is need to have a planned management. BELI’S
Cyber Cafe has a plan to establish a strong management team of qualified personnel in order to achieve
its set goals and meet its mission in all dimensions. The cafe will be made up of key personnel and
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subordinate who would offer the auxiliary duties. The director will be regarded in the top management
position though he will engage in service provision until when the café would have grown considerably.
3.0.2 Manager
The café manager would be the owner. By that time he will have acquired a Diploma in Business
administration with the many other skills he poses thus putting him in an advantaged position in
management and administration. Will be the overall manager of the company since BELI’S Cyber Cafe
is a small company.
Duties and Responsibilities
 Ensure smooth administration of the café in hand with the Technician.
 he would be the figurehead role model in the café and the outer society
 Would oversee recruitment of personnel to work in any department in the cafe
 Making all of the major management decisions
 Would ensure that personnel are properly and promptly paid and also oversee the
personnel welfare up held.
 Monitor all other business activities

3.0.3 Technician
The technician will be charged with the general responsibility of handling computer machines.
She will be more technologically oriented to handle computer repairs, maintenance and inquiries.
3.3.2.2 Duties and Responsibilities
i. Take charge of management responsibilities whenever the manager isn’t present
ii. Manages the network and internet applications
iii. Responsible for keeping system up to date with current and new technology
iv. He is the head the training courses offered by BELI’S Cyber Cafe
v. Will be in charge of system and data security by employing security techniques that will
keep the system and data safe from internet crimes
vi. Will be handling repairs and operations of the computer and other external devices like
printers, scanner.
vii. He is the one to justify the installation and uninstallation of programs.

SECURITY OFFICERS.
Should at least have basic education (KCPE CERTIFICATE), be flexible and able to work in
changing environment, good public relations, be at least 25 years of age, be honesty and ready to

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work under minimal supervision.

Duties
 Ensure proper security of both physical and documentary items/ assets and physical
protection of assets.
 Take details of visitors who enter and leave the firm.
 Report any security matter to the management and offer alternative solution.
 Do any other duties assigned by the management.
3.0.4 CLEANERS.
Must be age between 20-30 years.Capable of working under least supervision. Physically fit
and mentally fit. Hardworking and ready to beat deadlines.
Duties
 Ensure highest order of cleanliness in BELI’S Cyber Cafe audit premises.
 Work on general hygiene of the business components e.g. shaping flower and
weeding.
 Ensure proper hygiene in auditing environment.
 Assist in any other duty especially for those who have gone on leave...
3.7.2 Remuneration
At the end of the month the workers of will be remunerated according to the positions held and
terms of their contracts. They will also be given allowance that include house and medical
allowance. By paying employees on time and giving them all their salary, they will be committed,
motivated and work more diligently. As the firm will be growing and earning more profits so will
the employee’s salary be increased in accordance to the laid down policy.

3. 7.3 REMUNERATION AND ALLOWANCES TABLE IN KSHS.

STATUS NO SALARY HOUSE MEDICAL TRAVEL TOTA PER TOTAL
(KSHS) PERSON

Manager 1 12,000 1,750 1,450 1,300 16,500 16,500

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Technician 1 10,000 1750 1,450 1,300 14,500 14,500

Part time cafe 5 14,000 2,000 1,200 800 18,000 90,000

workers

Part time cyber 1 12,000 2,000 1,400 600 16,000 16,000

workers

Secretary 1 4,200 800 700 400 6,100 6,100

Security officer 2 4,000 400 400 200 5,000 10,000

Office assistant 1 3,200 500 500 300 4,500 3,100

Cleaners 1 3,400 500 300 300 4,500 2,500

Totals 62,800 9,700 7,400 5,200 85,100 161,600

Total monthly requirement will be kshs.66, 200 on salaries and allowances. All this will depend
with client registration. The above will be met if the business is operating at maximum.
3. 7.4 Incentives
This is an action done as a form of appreciation and a boost for work well done or in order to
encourage the employees to maximize their output. It does not necessarily have to be in monetary
form. Incentives will be given in the following forms:-
 Taking the staff for a trip at the end of each year to places like Mombasa.
 Treating the staff to get together parties at the end of a financial year to appreciate each
other and celebrate our work.
 Issuing of certificates to the staff that have shown outstanding and exemplary performance.
 Rewarding the departments and the employees who have produced the best and outstanding
results.
 The employee will also benefit from taking one day off-duty every week even though this
Wouldn’t be payable.

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3. 7.5 Training
BELI’S Cyber Cafe owner plans to have his employees trained on their specific areas of work.
The training shall be conducted by allowing at least four of the workers attending educational
seminars in a period of one year, as well as user education. Each worker attending a seminar will
be fully sponsored by BELI’S Cyber Café.
3. 7.6.Promotions
Promotion is very important in any business entity as it improves the staff performance and
esteem. Promotions will be based on the workers academic qualifications, performance. They will
also be awarded motivational certificates of performance at the end of each year. This will
encourage them to work even more. The promotions in the farm will also go hand in hand with
the salary of that hierarchy. The management will have to interview those to be appraised.

3. 8 Licenses Permits and Rules.

These are a mandatory for their acquisition and will be acquired as follows
3. 8.1 Trade license.
This is essential as per trade license at (cap 492) issued by trade and industry office from
Bungoma trade and industry office.
3. 8.2 business permit
This will be issued by Bungoma town council with fixed charge of:
Registration form Kshs. 1000 (non-refundable amount fee Kshs. 2,500)
3. 8.3 Labour Permit.
The labour permit will be collected from Bungoma labor office at an estimated cost of Kshs.3,
000/=.

The support service will include consultancy which is a major banking, postal, insurance, and
legal and communication.

3. 9.7 Auditors
The venture will require auditors who will verify all records pertaining finances to ensure that
they are accurately and appropriately distributed without errors. They will also ensure that there
are no errors like products being under charged since they may cause some issues in the venture.

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CHAPTER FOUR

OPERATIONAL/PRODUCTION PLAN
This gives the description of running the business. It displays strategies relevant to facilitate the
smooth running of the enterprise. For a superb and effective proving performance in conjunction
with eventual growth of my profound business, there is a need for a profound operational plan to
be put into accountability considerations. Besides financial resources, BELI’S Cyber Café needs
sufficient, effective and adequate facilities and equipment to propagate its function operationally.

4.2.1 Table showing analysis of the firm’s machines, equipments and their costs

Item Quantity Cost per Item (Ksh.) Total Costs (Ksh.)

Computer 11 15000 165000
Printers 2 16000 32000
Scanner 1 5000 5000
Laminating machines 1 11000 11000
Binding machines 2 9000 18000
Network switch (24 port) 1 10000 10000
Fax Machine 1 12000 12000
Software 30000 30000
Espresso machine 1 25000 25000
Automatic espresso grinder 1 7000 7000
Telephones 2 7400 14800
Computer desks 11 2000 22000
Computer chairs 11 1700 18700
Information Display Counter 1 3300 3300
Computer Repair Machines 1 5000 5000
Drinking/eating counter 2 5000 10000
Stools 12 600 7200
Photocopier 1 36000 36000
Total 431300

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4.2.1 Repairs and Maintenance

It is important to note that the above mentioned requirements need repair and maintenance. The
proposed business shall have routine maintenance in its machinery and equipment. The computers

And the printers will be repaired and maintained by the organization from which they were
leased. This will be done before the equipment breaks down so as to avoid unnecessary costs.

Production Strategy/Operational Strategy

4.3.1 Monthly Material Requirement

Item Quantity Cost
Photocopying papers 100 reams 50000
Stationery
27,700
Total Ksh. 76700
The above items will be purchased in bulk for them to be purchased at a cheaper price and to
enjoy discount benefits.

4.3.2 Monthly Labour Requirement

Post No. Per Head Amount
Technician 1 29000 29000
Part Time Workers 6 18,000 108,000
Secretary 1 6100 6100
Security officer 2 5000 10,000
Office assistant 1 4500 4500
Cleaner 1 4500 4500
Total 161600

4.3.3 Monthly Production Cost

DIRECT COSTS KSHS.
Cost of raw materials 76700
Labour requirements 161600
TOTAL 238,300
INDIRECT COST/ OVER HEAD
Electricity Bill 4000
Telephones Services 2000
Postage Services 700
Advertising 5000
Transport Cost 9950
Internet Service Provider 46200
Stock Requirement 76700
Trading license 4500
Water Bill 350
TOTAL 149400
GRANT TOTAL 387,700

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Total production cost = direct + indirect cost.

=238,300/- + 149,400/-

= 387,700/-

Regulations Affecting Operation

The owner will register the enterprise to the government and to ensure that its operations are well
protected and certify the business. The business will always follow and adopt acts and policies
laid down by the government and other legal agencies for the continuity of the business in a
conducive and free environment.
License
The owner of the business will acquire a trading license before the business begins its operations,
this will ensure smooth running of the firm because it will be legally known and registered. The
trading license will indicate either in months or years in which the business will be legally
recognized. And therefore the owner will always be renewing it after the duration has come to an
end. The amount of attaining the license will be Ksh. 4500 per month.

Business permit This will be issued by Bungoma town council with fixed charge of: Registration
form Kshs. 1000 (non-refundable amount fee Kshs. 2,500)
Labour permit: The labour permit will be collected from Bungoma labor office at an estimated
cost of Kshs. 3,000/=.
Ministry certification: This is a certificate which would be obtained from the ministry of
Information and Communication on payment of some fee. It is a requirement that every business
of finance nature must be certified by the ministry.
Certificate of ownership: This will be obtained from the registrar of business located in Bungoma
town. The business will adhere to rules and regulations of the ministry included in the payment of
N.S.S.F dues, NHIF and UNION belonging of workers. The business will source its service from
professionals in the society to help its smooth running.

The support service will include consultancy which is a major banking, postal, insurance, legal
and communication.

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CHAPTER FIVE

FINANCIAL PLAN
The financial plan of BELI’S Cyber Café will stipulate the mode by which finances of the
business are going to be effective and adequately used to ensure that the business venture archives
its goals and objectives.

The business is prepared to obtain financing in the amount of Ksh. 3,749,000 as capital. The
supplemental financing is required to begin work on site preparation and modifications,
equipment purchases and to cover expenses in the first year operations.

5.0 Preoperational Costs

This is the cost incurred before the start of operation.

Item Costs (Ksh.)

Trading License 10000
Equipment purchase 431300
Water Installation 1200
Electricity Installation 4000
Telephone Installation 3200
Site constructions and 500000
modifications
Internet service provider & 3000
networking
Computer installation 5000
Total 985700

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5.1 Estimate of Working Capital Requirements

The following table shows the working capital requirements for BELI’S Cyber Café business for
the first three years.

Expenses/Item Year 1 Year 2 Year 3

Salaries and wages 1680000 3187200 3734400
Telephone services 24000 20000 15000
Advertisement 60000 45000 35000
Stationery 60000 70000 80000
Repair and maintenance 20000 26000 32000
Postage 8400 3200 2000

Purchases 280000 230000 150000

Electricity bill 48000 49800 45000
Taxes 10000 10000 10000
Transport 119400 92700 80600
Water bills 4200 4200 4200
Miscellaneous 50000 30000 18600
Bank loan 200000 100000 -
Total 2578200 3868100 4206800

The salaries and wages of the employees will be incremented each year, this is due to wonderful
work they will be doing as supported with their qualifications, skills and determination to satisfy
the BELI’S Cyber Café customer and will be flocking into the business and for this good
realization of profit will be in count. Meanwhile telephone services, advertisement and postage
cost will reduce each year due to the popularization of BELI’S Cyber Café in the market, holding
more than 50% of the market share, and the customers satisfaction joy to come with a friend next
time will be a continuous link of communication about the business.

Water bill remain constant as the charges has never changed for the past seven years despite of
the weather conditions. Water bill charges are made as per month and not per use, therefore a
fixed charged is paid each month whether water has been used or not.

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Pro-forma Income Statement

Description Year 1 Year 2 Year 3
Sales 7902800 9800000 12678500
Debtors 67000 91000 282000
Gross profit 7835800 9709000 12396500

Expenses
Wages & Salaries 1680000 3187200 3734400
Water bill 4200 4200 4200
Telephone services 24000 20000 15000
Electricity bill 48000 49800 45000
Advertisement 60000 45000 35000
Stationery 60000 70000 80000
Postage 8400 3200 2000
Repairs & maintenance 20000 26000 32000
Purchases 280000 230000 150000
Transport 119400 92000 80600
Depreciation 1000 12000 18000
Miscellaneous 50000 30000 18600
TOTAL EXPENSES 2355000 3770100 4214800
Net Profit before tax 5480800 5938900 8181700
Tax 20% 1096160 1187780 1636340
Net Profit after tax 4384640 4751120 6545360

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Assumptions
1. Provision of tax will remain 20% for 3 years
2. Sales will increase by 36%
Pro-Forma Balance Sheet
Item As at 31st Dec As at 31st Dec As at 31st Dec 2020
2011 2019

ASSETS

Current Assets

Cash at hand 365,000 401,000 565,000

Cash at bank 608,000 1,102,000 2,204,000

Stock 80,000 111,000 194,000

Debtors 54,000 78,000 103,500

Total Current Asset 1,107,000 1,692,000 3,066,500

Fixed Assets

Furniture & Fittings 276,200 276,200 276,200

Accumulated deposit 5% - 13,810 26,929.50

Machinery & Equipment 691,800 691,800 691,800

Accumulated deposit 10% - 69,180 131,442

Vehicle 189,000 189,000 189,000

Accumulated deposit 3% - 5,670 11,169.90

Total Fixed Assets 1,157,000 1,071,340 987,458.60

TOTAL ASSETS 2,264,000 2,763,340 3,993,958.60

LIABILITIES

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Current Liabilities

Creditors - 46,000 98,000

Total current liabilities 46,000 98,000

Long Term Liabilities

Bank loan 200,000 100,000 -

Owners equity 180,000 1,000,000 200,000

Total L.T.L 2,000,000 1,100,000 200,000

Total liabilities 2,000,000 1,146,000 298,000

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PROJECT CASHFLOW STATEMENT

Project cash flow statement on a monthly basis for the first year of operation is as shown in the
table.
Item month (amount in thousand (000)

CASH Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec
FLOW
Cash sales 333 333 333 333 333 333 333 333 333 333 333 333
Collection 0.83 0.83 0.83 0.83 0.83 0.83 0.83 0.83 0.83 0.83 0.83 0.83
from
debtors
Total cash 333. 333. 333. 333. 333. 333.8 333.8 333.8 333.8 333.8 333.8 333.
in flow 83 83 83 83 83 3 3 3 3 3 3 8
Cash
output
Cash 16.7 16.7 16.7 16.7 16.7 16.7 16.7 16.7 16.7 16.7 16.7 16
purchases
Payment 15.7 15.7 15.7 15.7 15.7 15.7 15.7 15.7 15.7 15.7 15.7 15.7
to
creditors
Rent 13 1 1 1 1 1 1 1 1 1 1 1
Wages & 40 40 40 40 40 40 40 40 40 40 40 40
salaries
Telephone 13 13 13 13 13 13 13 13 13 13 13 13
Electricity 17 17 17 17 17 17 17 17 17 17 17 17
Water 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5
Advertisin 1 1 1 1 1 1 1 1 1 1 1 1

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g
Taxes 46.1 46.1 46.1 46.1 46.1 46.1 46.1 46.1 46.1 46.1 46.1
Total cash 163 132 132 132 132 132 132 132 132 132 132 132
out flow
Net cash 170. 201. 201. 201. 201. 201.8 201.8 201.8 201.8 201.8 201.8 201.
for 83 83 83 83 83 3 3 3 3 3 3 83
months
Accumula 170. 372. 574. 776. 978. 1179. 1381. 1583. 1785. 1987. 2189. 239.
ted cash 83 66 49 32 15 98 81 64 47 30 13 24

CASH Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec
FLOW
Cash sales 433 433 433 433 433 433 433 433 433 433 433 433
Collection 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93
from
debtors
Total cash 433.8 433.8 433.8 433.8 433.8 433.8 433.8 433.8 433.8 433.8 433.8 433.8
in flow 3 3 3 3 3 3 3 3 3 3 3 3
Cash
output
Cash 17.7 17.7 17.7 17.7 17.7 17.7 17.7 17.7 17.7 17.7 17.7 17.7
purchasers
Payment to 16.7 16.7 16.7 16.7 16.7 16.7 16.7 16.7 16.7 16.7 16.7 16.7
creditors
Rent 12 12 12 12 12 12 12 12 12 12 12 12
Wages and 50 50 50 50 50 50 50 50 50 50 50 50
salaries
Telephone 2 2 2 2 2 2 2 2 2 2 2 2
Electricity 27 20 20 20 20 20 20 20 20 20 20 20
Water 1 1 1 1 1 1 1 1 1 1 1 1
Advertisin 2 2 2 2 2 2 2 2 2 2 2 2
g
Taxes 56.1 56.1 56.1 56.1 56.1 56.1 56.1 56.1 56.1 56.1 56.1 56.1
Total cash 263 232 232 232 232 232 232 232 232 232 232 232
out flow
Net cash 270.8 301.8 301.8 301.8 301.8 301.8 301.8 301.8 301.8 301.8 301.8 301.8
for months 3 3 3 3 3 3 3 3 3 3 3 3

Accumulat 131 131 131 131 131 131 131 131 131 131 131 131
ed cash

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CASH Jan Feb Mar Apr May Ju Jul Aug Sep Oc Nov Dec
FLOW ne t
Cash sales 433 433 433 433 433 433 433 433 433 433 433 433
Collection 0.93 0.93 0.93 0.93 0.93 0.9 0.93 0.93 0.93 0.9 0.93 0.93
from 3 3
debtors
Total cash 433.8 433.8 433.8 433.8 433.83 433 433.8 433.8 433.83 433 433.8 433.8
in flow 3 3 3 3 .83 3 3 .83 3 3
Cash
output
Cash 17.7 17.7 17.7 17.7 17.7 17. 17.7 17.7 17.7 17. 17.7 17.7
purchasers 7 7
Payment 16.7 16.7 16.7 16.7 16.7 16. 16.7 16.7 16.7 16. 16.7 16.7
to 7 7
creditors
Rent 23 2 2 2 2 2 2 2 2 2 2 2
Wages and 50 50 50 50 50 50 50 50 50 50 50 50
salaries
Telephone 23 2 2 2 2 2 2 2 2 2 2 2
Electricity 27 20 20 20 20 20 20 20 20 20 20 20
Water 1 1 1 1 1 1 1 1 1 1 1 1
Advertisin 2 2 2 2 2 2 2 2 2 2 2 2
g
Taxes 56.1 56.1 56.1 56. 56.1 56. 56.1 56.1 56.1 56.1 56.1 56.1
1 1
Total cash 263 232 232 232 232 232 232 232 232 232 232 232
out flow
Net cash 270.8 301.8 301.83 301 301.8 301.8 301.8 301.8 301.8 301.8 301.8 301.8
for months 3 3 .83 3 3 3 3 3 3 3 3

Accumulat 132 132 132 132 132 132 132 132 132 132 132 132
ed cash

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Break-even Level

Total sales variable for the year 2011

= Ksh. 7,659,100

Variable costs

Items Costs

Telephone 24000

Advertisement 60000

Repairs and maintenance 20000

Stationery 60000

Postage 8400

Transport 119400

Miscellaneous 50000

Cash purchases 280000

TOTAL 621800

Total contribution margin=sales variables-total variable costs

=7,659,100 - 621,800
=Ksh 7,037,300

3. Contribution margin percentage

Contribution margin% = Contribution Margin X 100

Sales
= 7037300 X 100
7659100
= 91.88%

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5.5.1 The total fixed costs i.e. operating expenses for year 1
ITEM COST(KSH)

Wages and salaries 1680000

Water bill 4200

Electricity bill 48000

Insurance 150000

License 54000

Loan payment 108000

TOTAL 2044220

Total fixed cost = Ksh. 2044220

4. Break-even level of sales in shillings
Break-even level (in shillings) = Fixed Cost
Contribution margin

= 2044220 X 100 Ksh

91.88
=Ksh. 2,224,858.51

Break-even level= Ksh 2,224,858.51

5.3 Desired financing

ITEM AMOUNTS(Ksh)

Preoperational costs 985700

Working capital 2578200
Fixed assets 2264000
TOTAL 5827900

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Total desired financing to start off business= Ksh 5,827,900

5.4 Proposed Capital

Contribution Source Amount

Owners contribution 1,800,000

Loan from bank 1,205,000

Funds from youth development fund 744,000

TOTAL 3,749,000

5.5 Expected Profitability Ratios

I. Gross profit percentage
= Gross profit X 100
Sales
Year 1= 4615450 X 100
7659100
= 60.26%
Year 2 = 8699269 X 100
9800000
= 88.77%
Year 3 = 10313119 X 100
6360000
=162.16%
II. Return of equity
= Net profit after tax
Owner’s equity
Year 1= 4384640
1800000
= 2.44
Year 2 = 4751120
1800000
= 2.64

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Year 3 = 6545360
1800000
= 3.64

III. Return on investment

Return on investment = Net profit after tax
Total investment
Year 1= 4384640
3749000
= 1.17
Year 2 = 4751120
3749000
= 1.27
Year 3 = 6545360
3749000
= 1.75

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APENDICES
APPENDIX I: Map Directions to BELI’S Cyber Cafe

NAIROBI-WEBUYE
HIGHWAY

BUNGOMA
DISTRICT
HOSPITAL
POST KHETIAS
OFFICE BUILDING

WHERE BELI’S
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APPENDIX II: Business Layout

Games
Computer room 1 Rooms

Computer room 2 Information/

reception
desk

Parking Area
Toilets

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