MOSES TOURS

“
T
R
A
V
EL WITH LIFE AND TOUR WITH PLEASURE”
BUSINESS PLAN
15TH/NOV/2019
P.OBOX ----
KIREKA, UGANDA.
TEL: [+256] 0706089915/ 0777074381

EMAIL:

kisakyemoses14@gmail.com
Prepared by: KISAKYE MOSES
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ii
 INTRODUCTION:
NAME AND LOCATION:
MOSES TOURS COMPANY LIMITED
Service providers of accommodation, tour services, restaurant and transport services
PO Box ----
KIREKA (U)

OWNERS:
SUUBI GODFREY
KISAKYE MOSES
SUUBI ADONIA

NATURE OF THE BUSINESS:

Moses Tours Company Limited will be service providers of accommodation, tour services, and
restaurant and transport services. The services for the restaurant will range from fast foods and
local dishes will be offered plus catering services, for the bar exotic drinks to local drinks will be
offered, the transport service will deal in transportation of customers going on tour and our
workers when going on their research and for the accommodation will cater for both low class
and middle class business men. These services will cater for markets within Kampala, KIREKA
in Wakiso, Kasese, Jinja and tourists who come to Queen Elizabeth national park plus driver
who transports goods to D.R.C.

FINANCING OF THE PROJECT:

The initial capital required shall be 400 million shillings. Of this amount, 250million will be the
owner’s equity while the company will borrow a loan of 150 million from DFCU Bank,
KIREKA in Wakiso Branch to cater for the remaining deficit. This loan will be repaid in
15years.

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The capital required will be used for construction of extra rooms since there are enough rooms to
run the company except for transport offices in the transport department and accommodation for
workers. There will be improving and upgrading the bathrooms for each of the rooms that will
provide accommodation plus the bar which needs up to date wash rooms , purchase of two
delivery van , erecting racks and shelf of the bar, purchase of computers for record keeping,
license fees and any other expenses related to marketing, purchases and sales.

CONFIDENTIALITY STATEMENT:
This report is very confidential and belongs to the owners stated above. It is intended only for
use by the person to whom it is transmitted and any reproduction of any of the contents of the
report without prior written consent of the company is prohibited.

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 TABLE OF CONTENTS
INTRODUCTION:......................................................................................................................ii
OWNERS:...................................................................................................................................ii
FINANCING OF THE PROJECT:.............................................................................................ii
CONFIDENTIALITY STATEMENT:......................................................................................iii
1.1 The Project Proposal and the history of the business:.....................................................1
1.4 NATURE OF THE BUSINESS:...........................................................................................1
1.5 Management:..........................................................................................................................1
1.6 Financing:..............................................................................................................................2
1.7 Primary Products:...................................................................................................................3
1.8 Competitors:...........................................................................................................................3
CHAPTER TWO:............................................................................................................................4
2.1 Vision statement:...................................................................................................................4
2.2 Mission statement:.................................................................................................................4
CHAPTER THREE:........................................................................................................................5
3.1 Industry Analysis:..................................................................................................................5
3.2 SWOT Analysis:....................................................................................................................6
3.2.1 Strength:..........................................................................................................................6
3.2.2 Weakness:.......................................................................................................................7
3.2.3 Opportunities:.................................................................................................................8
3.2.4 Threats:...........................................................................................................................8
3.3 competitive Analysis:.............................................................................................................9
Customer profile:.......................................................................................................................10
CHAPTER FOUR..........................................................................................................................12
4.0 Company overview:.................................................................................................................12
4.1 company Name:...................................................................................................................12
4.2 Legislation:....................................................................................................................12
 Enough security and parking space....................................................................................12
4.4 company objectives:.............................................................................................................13
4.5 Management:........................................................................................................................14

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 4.6 Primary products:.................................................................................................................14
4.7 Start-up capital:....................................................................................................................14
CHAPTER FIVE:..........................................................................................................................15
5.2.1 Possible drawbacks in the operation:....................................................................................15
5.3.2 Impact of the possible drawbacks to the business operation:.......................................16
5.4 Head start:............................................................................................................................16
5.5 Opportunities:................................................................................................................16
CHAPTER SIX:.............................................................................................................................18
6.0 Marketing Plan:....................................................................................................................18
6.1 Market segmentation:...........................................................................................................18
6.2 Market positioning:..............................................................................................................19
6.3 Marketing Mix:....................................................................................................................19
6.3.2 Prices:...........................................................................................................................19
6.3.3 Channels of distribution (place):..................................................................................20
6.3.4 Promotion:....................................................................................................................20
6.3.4.1 Advertising:...............................................................................................................20
6.3.4.3 Personal selling:.........................................................................................................21
6.4 Market size andtrend:...........................................................................................................21
6.5 Market research:...................................................................................................................23
6.6 Competition and competitive advantages:...........................................................................23
CHAPTER SEVEN:......................................................................................................................25
7.1 Management summary:........................................................................................................25
7.2 Organization structure:.........................................................................................................25
....................................................................................................................................................26
7.3 The management personnel/ team:......................................................................................26
7.3.1 The General Manager...................................................................................................27
7.3.2 The finance manager:...................................................................................................27
7.3.3 The marketing manager:...............................................................................................28
7.3.4 The procurement manager:...........................................................................................28
7.3.5 The accountant:.............................................................................................................29
7.3.6 The IT manager:...........................................................................................................29

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 7.3.7 The research and development manager:.....................................................................30
7.4 Management compensation and ownership.........................................................................31
7.4.1 Table illustrating comparison of the independent salary and current salary of the
management team:.................................................................................................................31
7.5 Other investors:....................................................................................................................31
7.6 Board of Directors:..............................................................................................................32
CHAPTER EIGHT:.......................................................................................................................33
8.0 Critical risks, problems and assumptions:...........................................................................33
8.1 Risks................................................................................................................................33
8.1.1 Financial risks:..............................................................................................................33
8.1.2 Political risks:...............................................................................................................33
8.1.3 Economic risks:.........................................................................................................33
8.1.4 Operational risks:..........................................................................................................34
8.2 Problems:.............................................................................................................................34
8.3 Unpleasant consequences of the risks:.................................................................................34
8.4 Plans to minimise the critical problems:..............................................................................35
8.5.0 Assumptions:.....................................................................................................................35
8.5.1 Sales projections:..........................................................................................................35
8.5.2 Customer’s orders:........................................................................................................35
CHAPTER NINE:..........................................................................................................................36
9.0 Operation plan:.....................................................................................................................36
9.1 Operating plan:.....................................................................................................................36
9.2 Geographical location:.........................................................................................................36
9.3 Facilities:..............................................................................................................................36
9.3.1 Land and building:........................................................................................................37
9.3.2 Machinery and equipment:...........................................................................................37
9.3.3 .Delivery and service vans and special hire vans.........................................................37
9.4 Company strategies and plans:.............................................................................................37
9.5 Product supply:....................................................................................................................37
9.6 Quality control:....................................................................................................................38
9.7 Inventory control:.................................................................................................................38

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 9.8 Regulatory and legal issues:.................................................................................................38
CHAPTER TEN.............................................................................................................................39
10.0 Financial plan:....................................................................................................................39
10.1 Financing:......................................................................................................................39
10.2 Startup requirements and working capital:....................................................................39
10.3 Finance and cost control:...............................................................................................39
10.4 Financial assumptions underlying the project plan.......................................................40
10.5 Break Even Point analysis.............................................................................................40
Break-even point per product in value and units:..................................................................43
BREAK EVEN POINT CHART:..........................................................................................44
Pro forma financial statements:.............................................................................................45
BALANCE SHEET FOR (2015, 2016 &2017)....................................................................46
10.6 Testing the validity of the Project:.....................................................................................47
The Net Present Value (NPV) of the project:........................................................................47
APPENDIX I.............................................................................................................................48
Loan amortization schedule:..................................................................................................48
APPENDIX II............................................................................................................................50
Depreciation schedule from 2015-2017:...............................................................................50
APPENDIX III...........................................................................................................................51
Summary of initial requirements:..........................................................................................51
APPENDIX IV...........................................................................................................................52
Curriculum vitae of the general manager of Ben and family hotel and transport service
Company (U) Limited............................................................................................................52
APPENDIX V:...........................................................................................................................54
Loan application letter:..........................................................................................................54

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 CHAPTER ONE

1.0 Executive Summary:

This chapter presents the overview of summary of the business plan.

1.1 The Project Proposal and the history of the business:

The increasing population and demand in KIREKA in Wakiso municipality led to the
development of an idea to start Moses Tours Company limited.
The project proposal under study is a plan for setting up a company that will mainly
provide hotel services, tour services and transport service. The company is not only
targeting the local market in KIREKA in Wakiso alone but plans to extend its services to
travelers to the neighboring districts like tourists going to national park such as queen
Elizabeth, and also special hire vans will also be hired for functions like weddings,
graduations and other functions.

1.2 Name and Location:

The proposed name of the company will be Moses Tours COMPANY LIMITED; the biggest
and best service to provide will be the hotel business with accommodation and bar
services, and transport services in KIREKA in Wakiso and to travelers neighboring
districts. This business will be located on KIREKA - Kampala highway. The advantage is
that it has enough parking spaces, reliable electricity supply and enough water supplies.
The emails used will be mosestours@gmail.com, hkisakyehertert@gmail.com. Each
of these shareholders will hold 25% in shares.

1.4 NATURE OF THE BUSINESS:

MOSES TOURS COMPANY LIMITED will be legally registered company with registrar of
companies as a private company limited by shares. The authorized share capital of the
members shall be 250million shillings.

1.5 Management:
The company will recruit a Hotel Manager with a bachelor’s degree in Hotel Catering
and Hotel Management and knowledge in accounting from a recognized institution and

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two years practical experience. The manager will work as a full time General Manager in
hotel section and a diploma holder in Business management to formulate policies and
manage affairs of the transport business.

Strategies for efficient, effective management and running of the company will be done
in collaboration with company directors.

The company will also recruit other managers at middle and operational levels which
include, marketing manager in charge of marketing, procurement manager who will be in
charge of procurement and tenders, finance controller in charge of managing the finances
of the company, research, IT and development manager who will be in charge of all our
research activities and head the networking and computer department. The research, I T
manager will be assisted by his assistant. All the above positions will be filled by degree
and diploma holders of relevant fields and with at least one year experience.

Given the above people with variety of experience, the company will enjoy technical
competence competitive advantage over other already existing companies in the region
and the company is most likely to sustain its operations for long. The company plans to
achieve the above by paying attractive salaries for these staffs and introduce other non-
financial incentives such as free transport, free housing among others.

1.6 Financing:
The company will require an initial capital of Sh400 million, of which 250million
shillings will be the owners’ equity and the remaining deficit of shs150 million shillings,
will be borrowed from DFCU Bank Ltd repayable in equal installment for 10 years at an
interest rate of 10% per annum.

The initial capital will mainly cater for the construct of required structures for the hotel
and bar, furniture for the offices, two delivery vans, shelf and counters for the display in
the bar and four special hire vans, and any other related costs as far as marketing and
sales is concerned.

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1.7 Primary Products:
Moses Tours Company Limited will largely be a service provider in Hotel business,
transport business and Tour services. Some of these services offered by a hotel include,
accommodation, fast food, outside catering, hosting conferences. The transportation of
tourists and other customers which will depend on the distance and the number of days
for which the vehicles will be used, food and drinks among others.

Our target market segments include travelers, resident of the town, government and
private companies that may need our catering services, transport services and use our
facilities like the conference hall and the general public at large.

1.8 Competitors:
Much as our company is going to hotel business and the transport business it is bound to
face stiff competition from hotels like Serena Hotel, Pestol Hotel and transport
companies like Link travels, which have established themselves earlier. This competition
is expected to be stiff in the first year of operation. We will put in place a strong research
policy to develop better ways of providing services to our clients.
We also intend to recruit professional staff that will provide high quality services to our
customers and participate in the corporate social responsibility like cleaning the town as a
way of giving back to the community.

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 CHAPTER TWO:

2.1 Vision statement:

To have a strong, magnificent and preferred business offering services in KIREKA in
Wakiso district and the neighboring districts of Kampala.

2.2 Mission statement:

To provide high quality and efficient services to our customers to meet their satisfaction

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 CHAPTER THREE:

3.1 Industry Analysis:

The Hotel and transport Industry in Uganda are two of the sectors that have been
accorded much attention by the government. As a result many investors have been
encouraged to put up their investments in these fields. All this is aimed improving these
two industries like the transport industry, the government has reduced the regulation and
this favors the two industries to develop. Organizations’ like Enterprise Uganda and
Uganda Investment Authority has helped the development of these industries by training
the general public and local investors in this field curbing down the manpower shortage
and improving the skills of the already existing man power.

As economic, political, social and technological activities take place there is need to
travel, income levels improve and need for leisure arises. Due to these activities, many
social needs are catered for like going to any place to sleep has changed creating
opportunity for the invention and innovations in hotel and transport industry has solved
the problem of hiring tourist travel vans from Kampala and the fast services offered by
the hotel business shows that the company has already market for its products and
services.
In the past three years, there were only few businesses operating along the Kampala-
KIREKA high way and a few bars, hotels, restaurants, and one transport service in
KIREKA town except Link transport services which is far from town. Much as people
liked their products and services they were not able to meet their clients’ needs and
requirement due to capacity inability has introduced services but its offering the same
poor quality type of services in the market.

It is clear that the two industries are expected to grow by substantial rate in the next three
years. More so, the limited number of hotels, transport business and other facilities show
that there is need to put more. Not only that the population is also increasing but also
income level of the people has increased making the above services a necessity.

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 The major and nearest competitors of Moses Tours Company Limited will include;
Serena Hotel, Pestol Hotel, and Link transport business all located in KIREKA in
Wakiso. Their strength is that because they had established their entities some time back,
they have won the loyalty of the customers at the moment. But on the other hand, their
major weakness is that they are not able to meet the requirements of the target markets
due to limited services and more so they don’t have strong marketing personnel who
could find exactly what customers want.
Moses Tours Company (U) Limited plans to ensure that it provides each and every
requirement for each market segment to meet the customer’s requirements example we
shall ensure that our customer orders are met promptly, deploy our talented sales agents
to investigate customer requirements, and establish long-term relationship with the
segment players. The company also plans to conduct promotional activities like
advertising, offering free samples and many others. This will ensure efficiency in service
delivery.

3.2 SWOT Analysis:

3.2.1 Strength:
Moses Tours Company (U) Limited as a new venture is determined to deliver more than
and transport the customer expectation. That is commitment to provide quality delivery
of service to the community where we shall operate. This will be achieved through the
following strength that we have;

 Site Location, the venture will be located along KIREKA- Kampala

highway and this place offers the highest number of customers who want the services
and products being offered by our company and to add on that there is already an
existing structure to facilitate the business.

 Professional and care full drivers will be put in place which will make our
business to gain a competitive advantage over other businesses.

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 In addition to the competence of the personnel, the company also has the
ability to offer lower prices to its customers which eventually will win the customer
loyalty.
 24 hours service. The fact that the company is located along a high way
which ensures 24 hours inflow and out flow of customers the venture will also run 24
hour service seven days of the week.

 The company will also provide promotions and fringe benefits which will
ensure all-time serving staff and this will encourage a business to operate as going
concern.

 During the weekends we will provide customers children with some

entertainments, some games like swimming bouncing castles and many others including
free dinner.

3.2.2 Weakness:
Much as we have adequate strength over other competitors, we have the following
weaknesses;

 In the initial stage especially the first years, we shall use a lot of resources
sand effort to carry out promotions so as to increase market share instead of meeting
customer needs.

 Not only that we anticipate that our staffs are technically qualified, they
might demand higher salaries which may not be possible in the short run.

 Sometimes the directors and the management will disagree on the

objectives to be achieved in a particular time. This will affect the commitment and
effort of the staffs.

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 Due to the fact that the company is new, the company has a lot of
competitors. this will affect the sales of the company

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 3.2.3 Opportunities:

 As a matter of fact, Moses Tours Company Limited is likely to take the

advantage of unsatisfied customers in the region by offering whatever is needed at the
time agreed.

 Given a well-established research and development plus the emergence of

new needs, the company is likely to take the opportunity to introduce new services into
the market which has not been possible for the competitors due to lack of research
activities.

 Moses Tours Company Limited will also ensure long-term relationship

with its suppliers in order to ensure consistence in supply and avoid embarrassing
customers which has been a common case with our competitors.

 The Variety of special higher cars will ensure prompt transportation of

travelers to the neighboring districts.

 Moses Tours Company Limited is looking forward to start mobile booking

of products and offering of services.

 Given, the quality service offered, the large market available like in both
transport and hotel business the company is assured of survival.

3.2.4 Threats:
 One of the major threats to Moses Tours Company Limited is that there is
the political war that may arise within the country since it is the political season that
may affect the flow of customers.

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  The conservatism of people of KIREKA may also affect the flow of
customers since they will think that our services are expensive like the people in
business now.

 Poor Government regulatory laws may affect the flow of the business like
high taxation.

3.3 Competitive Analysis:

Many companies these days use various strategies and other techniques to ensure survival
for the unforeseeable future. This act makes competition inevitable among the various
companies in different industries. Moses Tours Company Limited is likely to face
competition from already established companies in the region which among others
includes:

Link Transport Services Limited: this was established some five years back in the
town transport tourists and travelers as special hire. Their strength is that, right now they
are only well known making them the biggest market share and hence market leaders.

However, their major weakness is inability to offer their services 24 hours a day and 7
days a week.

Serena Hotel and Pestol Hotels are located in the central of KIREKA town. These
hotels have been in operation for the last ten years.

Its strength is that these have been dealing mainly with big clients such as lodging big
government officials and function and full filling orders of some institutions both private
and government institutions.

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Notwithstanding the fact that these hotels have some weaknesses which we can turn into
opportunities; for example,

 It has a location disadvantage whereby it has limited packing space which makes it
difficult for other customers who drive to stop and make purchases.

 The company does not have a strong marketing force that we shall have, hence making
it impossible for them to lay strategies about customer needs.

 Not only that recently the company won a contract to supply KIREKA district local
government (catering services) but surprising, these people were not able to maintain
the contract was signed hence eventually lost every other opportunity in the district.

 Their major weakness is that this hotel has a limited range of services and clients they
deal in and with respectively.

Therefore if Moses Tours Company Limited takes advantage of the above weakness and
converts them into opportunities, through its powerful research team together with the
marketing inventions, and the experienced team of people, it’s likely to gain access to
many potential customers and expand the market in the next one year by 30% which
eventually can qualify us to be market leaders in hotel and Transport industry in the
region.

Customer profile:
As ready stated in our mission statement we are committed to exceeding our customers’
needs by not only providing the most efficient services but also making our products and
services much more affordable at the right timed and when needed in order to give value
to your money.

Moses Tours Company Limited will put much emphasis on the middle class clients who
are the biggest customers of our services and products. Focus will be put on the major

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travelers, businessmen and women plus other organizations that need our services and
products. This group contributes 70% of our income
The second and last of our customers shall be the general public who will be served in a
special counter that is upper flow of the structure. This group is equally important to us
because they will contribute 30% of our income.

Hence, our customer profile can be analyzed using Pareto Analysis below:

CUSTOMER GROUP NO.OF SEGMENT IN% INCOME

MARKET CONTRIBUTION IN%
Travelers businessmen and 40% 70%
organizations
General public 30%
60%

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 CHAPTER FOUR

4.0 Company overview:

4.1 company Name:

The idea of the business was conceived by three of us who after carrying extensive
research in the industry, decided that we join the Hotel and transport Industry. This was
possible because two of us had been working for similar companies in the same hotel and
transport industry elsewhere before and more so we are brothers and sisters.

Kisakye Moses worked with hotel as a senior marketing officer. Byamugisha Grace
was the manager was the managing Directors of hotel and Nagitta Grace holds a
bachelor’s degree in accounting in finance, bachelor’s degree of catering and hotel
management from Kyambogo University. So following the above back ground Moses
Tours Company Limited

4.2 Legislation:
This company will be legally registered as a private company limited by shares with the
registrar general of companies [Georgiana house]. It will have authorized capital of 300
million

Location: Moses Tours Company Limited business will be located on KIREKA Kampala
High Way and this will serve as the company’s headquarters. The factors behind the
location may include the following:

 Enough of security and parking space

 Adequate supply of electricity and water

 Located on the high way because of the market available.

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 Given the rural electrification by the government we hope to even set some branches in
small towns like town councils and town boards thus bringing services closer to our
customers and even open some branches in other neighboring districts.

4.4 Company objectives:

 To provide easy means of transport to the tourists and the people in the surrounding.
 To focus and ensure aggressive marketing. From time to time our strong marketing
team will aggressively market Moses Tours Company Limited products with a view to
growing the market share and maintaining market leadership.

 To develop and introduce of robust and competitive products and services.

We will do this by instituting a mechanism geared towards ensuring the development
of innovative and competitive products. For example our strong research team will
reveal to us the products which need improvement and which ones need replacement.

 To provide effective and efficient way of delivering services and products.

We shall put in place systems which ensure that our customers get their products as
and when needed and at affordable prices. Meaning we shall adopt rapid response
mechanism.

 To ensure effective and efficient human resource management and optimal

utilization of these resources. We will achieve this by continuously attracting,
developing and retaining the best, highly competent and willing staff more especially
from recognized institutions.
 To provide prudent financial management. We will put in place financial
and credit systems that shall continuously deliver on sound investment and achieve
effective utilization of available resources.
 To ensure proper service delivery since our business is service offering
business.

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 To provide good customer services to our clients: this will ensure survival
in the market as it increases sales.

 To facilitate continuous and reliable information generation, storage,

analysis and dissemination to the users about the services offered by business.

4.5 Management:
The company will be managed by a group of competent staffs who will from time to time
consult one another in the course of running the business.

They will develop appropriate policies and strategies for the company from strategic, to
tactical and operational level. Nevertheless, the approval and authorization of these
policies and strategies will come from the company directors.

The general manager will be the accounting officer of the company and will report
directly to the directors/shareholders.

4.6 Primary products:

Moses Tours Company Limited will largely be service providers in hotel business and
transport services. Some of these services include, accommodation, fast foods, outside
catering, hosting conferences, food, and drinks, and transport services to the public.

4.7 Start-up capital:

After registration Moses Tours Company Limited will start its operations after a
certificate of incorporation is accorded to the company. The company’s startup capital
will comprise of owners’ equity worth, 250 million and 150 million Uganda shillings will
be borrowed from DFCU BANK Kireka branch.

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 CHAPTER FIVE:
5.0 Product plan:
5.1 Company products:
Moses Tours Company Limited as already stated above will be a service provider that is
hotel services, sand Transport services located in KIREKA town. And eventually
establishes branches in Mbarara and Kasese Districts.

Some of these products include among others:

 Hotel services: Accommodation, food drinks, (soft drinks, alcoholic
drinks), conference services and other categorized according to classes.

 : Food items, drinks, household items and clothing.

 Transport services: Moses Tours Company Limited also offers transport

services to tourists and other travelers going to national parks and neighboring districts
in form of special hire.

5.2.1 Possible drawbacks in the operation:

 Increase in the prices of some items like food due to the high price of food stuff in the
market and extreme price fluctuation

 Increase in prices of fuel has also affected the transport business.

 Some of the new products to be introduced may be a little expensive making

customers stick to the old brands.

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 5.3.2 Impact of the possible drawbacks to the business operation:
 Increase in prices of fuel leads to high transport costs in some way.
 The customers may lose trust in us if the delay is much.
 Increase in the price leads to increase in production costs mainly in the
restaurant section affecting some of our catering contracts.
 We shall need to spend a lot of money introducing the new products in the
market because of their high price. This will include money spent on transport and the
money to pay suppliers.
All the above draw backs can affect our market tremendously and consequently our profit
margin. We shall ensure long term commitment with our suppliers and our major
customers both within and abroad.

5.4 Head start:

 Moses Tours Company Limited has dedicated experienced and
hardworking staff that has excellent interpersonal relationship among themselves and
customers to be and the supplier as well.

 Not only does the company have dedicated staff but also has a business
location in a strategic position making it accessible to the customers, with adequate
supply of electricity, spacious packing yard, and secure environment.

 The company also has reliable source of supply and the fact that our
research indicates available market means that, as soon as Moses Tours Company
Limited is registered with registrar of companies [Georgiana house] will commence its
operations.

5.5 Opportunities:
 Research indicates that at a moment the number of customers has now reached level
existing operators cannot serve. Therefore means that, we have the opportunity to
expand our operations beyond boundaries

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 With the reconstruction of the KIREKA - Kampala high way, the Animal Zoos, parks
and the copper mines in Kasese and even the construction of railway line all these will
increase on the people using this route and this brings a lot of money to the economy
of Uganda which will lead to income improvements of the people .this means there
will be need for us to establish more branches in other parts of the region.
 We can also use our competitor’s weakness of not fulfilling customer requirement as a
package and turn it into opportunity to negotiate long-term deals with our suppliers so
that whatever customers will need is promptly supplied hence taking the lead in the
market.

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 CHAPTER SIX:

6.0 Marketing Plan:

Moses Tours Company Limited will be committed to ensuring that its customers continue
to get quality service throughout its operations. This will be done through careful
marketing activities that will ensure that customer requirements are fulfilled promptly.
We will also ensure that we study the weakness of our competitors and convert into our
strengths.

Our marketing department will be strengthened by equipping the staff with research skills
so that we can satisfy the ever-challenging customer needs. This will be done through
motivating our staff (marketing).

6.1 Market segmentation:

Our products and services will be distributed and sold according to, income of the
customers, size, and geographical location among others. Below are the target markets
that we intend to satisfy.

The target market is the travelers. These will not be limited to class of service and
product. This will include accommodation, food, tourists and local people moving to
national parks and neighboring districts. These products take little money but provide
great satisfaction .the public can access these services from our location

In KIREKA, we have few lodges, restaurants, and few special hires and many people
need these services .The development of KIREKA town into a municipality has prompted
the growth of middle class earners and the improvements of standards of living making
the company’s products and services a necessity to the people.
Because our services and products are and will continue to be affordable, I believe we
will capture enough market in our initial years of operation

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6.2 Market positioning:
The company values the marketing position of our products so much because it enables
us determine our customer needs correctly and serve them promptly hence gaining
competitive advantage over others. As a marketing strategy to win our customer’s
perception of our products, Moses Tours Company Limited will ensure adequate
information is availed to the customers about our products and services so that they get to
know what is on the market and where to get them. This can be done through,
advertising, distribution of samples.

6.3 Marketing Mix:

6.3.1 Products.
Moses Tours Company Limited will largely be a service provider in hotel business and
transport business. Some of these services include accommodation, fast food, outside
catering, hosting, conferences. Trade in products like food, and drinks and transport
services.

In order to ensure quality, we shall ensure proper and friendly working of our managers
with the suppliers and ensure that whatever product and service a customer gets will not
have a due expiry date like sodas and other drinks.
Repeatedly new products will be introduced into the market so as to replace the ones with
complaints and how to improve on those that need to be improved.

6.3.2 Prices:
Prices will be relatively similar since we are starting our operations and we shall charge
lower prices than our competitors after we are established. However, once we are
established we shall offer prices lower than our competitors because;
 We shall have access to credit facilities from our supplier.
 We shall not incur any transport cost on our products since our suppliers
will take them to our locations.
 The good reputation our supplier has created in the past will also
contribute to customers liking our products.

20
 Credit facilities will be offered to trust worthy customers and this will
promote loyalty among our customers.

6.3.3 Channels of distribution (place):

In order to ensure maximum satisfaction of our customers, we intend to have two to three
serving centers for example the bar will have three counters for services that will reduce
congestion. These centers will be equipped with committed staffs and other required tools
of work.
For special customers (VIPs) the company will only receive orders and shall have their
private wing called VIP wing that is in hotel and bar section. And those buyers who need
catering services the services will be provided exactly to where they are needed.

Nevertheless, the company plans to start mobile booking for some services like
accommodation and restaurant. This is to prevent some from failing to get the exact
services they want like tourists from Entebbe airport can book for services while on the
way for adventure.

6.3.4 Promotion:
In order to ensure continuous consumption of our products Moses Tours Company
Limited will occasionally conduct promotional activities. This strategy is important
because if customers are left to buy products on their own, they will not do it, hence you
have to persuade them to buy your products all the time.
The company shall adopt the following promotional activities in order to expand market
for its products:

6.3.4.1 Advertising:
We will run advertisements on Capital Radio, Bukedde Radio in Mbarara and we shall
also use both NTV and NTV because these channels have wider coverage. There will be
use of local media like New Vision, newspaper and Daily monitor.
6.3.4.2 Sales Promotions:
Moses Tours Company Limited will not stop at using advertising as the only means of
making its products known to customers, but it will organize seasonal sales promotions

21
through activities like, offering free samples, offering gifts like TVs, radios, to whoever
customer that normally consumes their services, offering calendars, organizing draws to
win tickets to go abroad and offering discounts to their customers.

6.3.4.3 Personal selling:

This will improve on the ways our services are offered to the public because all the
information will be gathered concerning our services.
This will be carried by our dedicated sales and marketing people to have a face-to-face
interaction with our customers and gather their views about our products, what should be
added and what should be subtracted. They will ask questions and customer’s response
will enable us to come up with a better version of the product in question. They can also
offer free samples as they talk to customers.
To motivate customers we can also offer commissions on the services offered to them.
6.3.4.4 Physical evidence:
Moses Tours Company Limited will ensure that it puts up magnificent premises which
will also attract customers like the hotel, bar, lodge facilities will be renovated every
month; this will ensure good looking in the eyes of customers. In terms of transport
service the business will purchase comfortable vans to hire and these vans will be
checked to ascertain whether they have mechanical problem before going for work.
6.3.4.5 Process and procedure:
Moses Tours Company Limited will ensure that there is self-service to the customers and
it will depend on customer’s choice. The waiters will guide our customers on which
meals are available in order for the customers to make their choices.
6.3.4.6 People:
The employee and the management will ensure that there is cooperation in order to meet
customers’ needs like meeting customer orders and contracts.

6.4 Market size and trend:

In the first year of operation Moses Tours Company Limited expects to concentrate in
Central districts of Kampala, Jinja, Kalalangala, and other neighboring districts and the
market size is expected to be large. This will include travelers, organizations, institutions,
competitors, and the general public.

22
These markets account as follows; Travelers account for 40% in number but 80% in
terms of income, organizations, general public accounts for 60% in number but 20% in
terms of income. The table showing such information is displayed below.

Population Travelers General public (%)

Coverage (%) 40 80
Incomes (%) 60 20

The growth in market size is expected to be influenced by increased income levels,

growth in population, low prices among others.

23
6.4.1 Table showing anticipated market size Moses Tours Company Limited for 4
years of operation in Central districts.

Market segment 2018 2019 2020 2021

Organizations 300 360 432 520

General public 500 600 750 1000

1350 1955 2738 3832

Travelers

Total 2150 2915 3920 5352

6.5 Market research:

Research will be conducted regularly in order to discover the markets with potential and
how our products and services will be improved. We shall design questionnaires,
interview customers about their tastes and preference of our products, keep databases of
customers who buy a particular product(s) in a certain period.

This research will also enable us to divide the markets according to potential and
customer needs, adapt to technology changes, buying habits etc such that we can lay
appropriate strategy to out compete our competitors.

6.6 Competition and competitive advantages:

Competition exists in the industry for example we shall face a little competition from
Finap Hotel, Link transport services. These companies have been operating in this region
for the last five years and therefore established strong relationship with customers. This is
the major strength that the competitors have.

However, their main weakness is that they tend to operate on limited services and
capacity is not adequate to satisfy the diverse needs of the customers and even provide
poor quality services to the customers.

24
Because of their inability to supply what customers need their sales is always low
according to our research. That is why they find it hard to penetrate local markets.

 In addition to low capacity, most of the products and services offered are very
expensive and even of poor quality.
 Poor customer care: the research not only shows the above weakness but it also
shows how the entities handle their clients which make it hard to penetrate the
market easily.
 These competitors also don’t have distributional vans and hardly carry to
particular market.

On the other hand, we shall find difficulties in introducing some of our new services and
products because of people’s negative attitude towards change.

Further to the above analysis, we shall embark on massive advertisement, negotiating

better terms with our suppliers to ensure constant flow of stock and have goods customer
care and family company shall allow customer to be part of the company in making
decisions which will increase on the sales of our company.

25
 CHAPTER SEVEN:
MANAGEMENT OR HUMAN RESOURCE PLAN:

7.1 Management summary:

Moses Tours Company Limited plans to fill its key management positions by recruiting
qualified and competent professional people who are dedicated, committed, result
oriented to ensure growth and development of the organization. These key positions to be
filled include the following:
The General manager who will also serve as our Hotel manager, the Finance controller,
the Marketing manager, the Research and Development manager, the Procurement
manager, IT Manager and an Accountant.

The General Manager and the Finance controller will serve as the strategic officers
answerable to the company board members, while the Procurement, Accountant
marketing, Research and IT managers will take tactical positions.

To make the work simplified we intend to recruit the following to assist the above
officers; cashier, sales assistant, research and development assistant, store keeper, data
entry clerk, drivers and cleaners.

7.2 Organization structure:

As stated above, the general manager will be the overall decision maker in the company.
The structure is designed in such a way that it helps minimize barriers between the staffs.

26
 7.2.1 Organizational chart:

Board of
directors

general
manager

finance marketing procurement research and IT

manager manager manager manager

selling and
Accounting purchasing
manager distribution manager field staff
manager

7.3 The management personnel/ team:

The management team will stand as below:
7.3.0 Board of directors: The boards of directors are the contributors of the business
capital and the majority shareholders have a great say over the business decisions. They
have they the following responsibilities:
 They are contributors of business capital.
 Influence business decisions.
 They help in signing of business contracts.
 They act in a manner that promotes success of the business.
 They provide skill and care to the business.

27
7.3.1 The General Manager
The general manager will be Kisakye Moses who holds a bachelor’s degree in
Accounting and Finance a Master’s degree in Business Administration from Kyambogo
University. He also holds a Postgraduate Diploma in Human resource management from
Makerere University.
His major responsibilities:
 Design policies and procedures for effective management of the organization.
 Authorize funds for the day-to-day operations of the organization activities.
 Compile reports and present the report to the board of directors every month.
 Appoint the staff, give recommendation for staff promotion and can fire staffs.
 Responsible for signing contracts on behalf of the company.
 Negotiate loan on behalf of the company but gives full account of what has been
approved to the board.
 Inspect the requirements and equipment when receiving.

7.3.2 The finance manager:

This position will be held by Nagitta Grace. She holds a bachelor’s degree in Accounting
from MUBS and professional qualification in CPA. She worked with Stanbic bank
Uganda as an accountant for four years and now she is completing her masters in
financial management from OXFORD University.

The major responsibilities:

 Monitor and ensure that all cash flows are recorded.
 Evaluate and report all financial information to the top management.
 Manage the finances of the organization.
 Report any financial related issues to the board on monthly basis.
 He will work hand in hand with the general manager to negotiate business loans
for the company.
 Prepare organization wide budget and forecast.
 Prepare the books showing the performance of the company.

28
7.3.3 The marketing manager:
This position will be held by Byamugisha Calist. He holds a bachelor’s degree in
marketing from Makerere University. He also attended several workshops in marketing
related issues. He worked with MOVIT Company for three years as the marketing
manager for the company. He has excellent interpersonal skills and he knows most of the
common languages in the neighboring countries and districts.

The major responsibilities:

 Responsible for creating market for our products and services both nationally and
internationally so as to increase market share like online marketing.
 Recommends strategies for carrying out the marketing.
 Identifies the major competitors and their strengths and designs appropriate
strategy for handling them.
 He will be responsible for introduction of new products and services in the
market.
 He will be responsible for the promotion of the business.
The marketing manager will work together with the Sales Assistants who will be
responsible for the day to day selling of our products to meet our sales targets. This one
holds a diploma in marketing.

7.3.4 The procurement manager:

The above position will be occupied by Namboozo Vivian. He holds a bachelors degree
in procurement and logistics management from Kyambogo University. He also holds a
professional qualification of CIPS. He worked with Steel and tube Industries for three
years. He has good negotiation skills and good analytical and interpersonal skills.

The major responsibilities:

 He will be responsible for purchasing of materials from abroad to prepare
international dishes.
 Identify alternative sources of supply in case of local purchases.
 Buy bid documents, fill and submit for contract award.

29
  Recommend payment of the invoices related to purchases.
 He will be responsible supply of materials when needed.
 Responsible for purchasing materials on credit upon the agreed credit terms and
conditions.

We will employ a Storekeeper who will be responsible for, receiving stock, issuing to
customers, inspecting quantities, and take charge of all company property and assist the
procurement officer where necessary.

7.3.5 The accountant:

The accountant will be Kakulagira Noel. He holds a bachelor’s degree in accounting and
finance from Kyambogo University and a professional qualification in certified public
accountants of Uganda, skilled in quick books and pastel accounting packages. She
worked with team institute as their senior accounts assistant for nine years. She is
dedicated and result oriented person. More so she is more equipped with computer skills

The major responsibilities:

 Maintain up to date books of accounts.
 Reconcile the bank statements.
 Deposit, withdraw and transfer cash and receive cash as well.
 Disburse impressed cash for the cahier.
 Balances books of accounts and communicates business performance to the BOD.

We shall also have a Cashier that will be in charge of cash at hand, bank cash, and pay
authorized cash for day-to-day activities authorized by management.

7.3.6 The IT manager:

The IT manager will work together with the research and development manager in
designing the questionnaires and in collection of required information. The research and
development manager will be Tom Kaweke while the IT manager will be Mugabe Obed
who holds a bachelor’s degree in computer science and information technology from
Makerere University and also has experience in the related field.

30
Major responsibilities the of IT manager:
 Networking our office with the branches.
 Initiates specifications for purchase of a new computer and software.
 Repair the system breakdowns.
 Update, company systems so as to cop up with the workload.

7.3.7 The research and development manager:

This is one of the most important departments we intend to strengthen. This position will
be headed by Twebaze James .He holds a Bachelor’s degree in Business Administration
from Nkumba University of science and technology and a Master’s degree in Marketing
from Makerere University. He did market research for Nile Breweries Company.

The major responsibilities:

 Research to ensure that new products introduced are the correct ones and other
services to be offered.

 Conduct and inform the management about the behavior of the customer’s tastes
and preferences and how to respond to them.

 Design the appropriate research tools to be used in the field like the
questionnaires, interview guide while in the field.

 Compile research reports and submit a copy to the suppliers for appropriate
intervention.

 Designs questionnaires and gather information that is need required by customer s

and work upon their problems.

31
Below the research manager will work will the Research assistant from the field staff
who will be most of the times collecting data from the field and this will help the
business to have the update information.

7.4 Management compensation and ownership.

Our management staff salary will vary according to the level of hierarchy in the
organization structure and allowances will vary according to responsibilities. This will
depend on reporting structure in the hierarchy.

Each of the management personnel will earn compensation more than his/her salary of
independent jobs. This will be given on overtime work. There will also be non-monetary
benefits such as housing, medical and insurance. This will improve the motivation of the
workers.

7.4.1 Table illustrating comparison of the independent salary and current salary of
the management team:

Management team Independent salary (Shs) Current salary (Shs)

General manager 1,200000 1,700,000

Finance controller. 900000 1,100,000

Marketing manager 750,000 950,000

Procurement manager 750,000 800,000

IT manager 750,000 850,000

Research manager 750,000 850,000

7.5 Other investors:

This company is solely owned by the three shareholders in the short run with each
owning 33% equal shares. As our business grows in future, we shall need more money,
hence we feel we could sell part of our shares to the public who are willing to invest in

32
the same industry but not more than 15% of the share capital and this be included in the
prospectus of the business.

7.6 Board of Directors:

The board members of the company will be the four shareholders of the company
The majority shareholders include Mr. Kisakye Moses and Kisakye Family this will help
in negotiating contracts of the business. This will help the business to keep in touch with
better and new suppliers
They will assist our research team in ascertaining exact requirements of the customers in
the market.

33
 CHAPTER EIGHT:
CRITICAL RISKS, PROBLEMS AND ASSUMPTIONS:

8.1 Risks.
Moses Tours company (U) Limited is likely to experience the following risks; financial,
political, economic and operational.

8.1.1 Financial risks:

 The inability by the financiers to give out the required loans.
 Failure to meet the supplier’s financial requirement.
 Customer’s delay in paying debts.

8.1.2 Political risks:

 Political insurgents such as wars, strikes, demonstrations may inconvenience our
business especially in Eastern Democratic Republic of Congo and The Republic
of Southern Sudan. Even Ugandan politics since it is apolitical season due to the
pressure caused by the politicians.

 Government’s policy of protectionism like high taxes on imported items may

increase operation costs.

 Uncertainties like the terror attacks which are common in countries Uganda which
can also affect the operations of our business. like the Bokharam of Nigeria

8.1.3 Economic risks:

 Foreign exchange rate fluctuations may affect the business since customers of our
business are from abroad like tourists.
 High interest rates also may affect the operation of the business
 Price cutting by competitors which further leads to price wars.

 Inflation

34
8.1.4 Operational risks:
 Break down of our distribution vans.

 Poor quality food materials like food stuffs supplied by careless suppliers like you
may find that bunches of banana supplied are infected with banana bacteria wilt.

 Failure to meet customers demand due to delay of delivery by the supplier since
we shall depend on one supplier.

 Poor roads may affect transport service business due to the relief and the climatic
conditions.

8.2 Problems:
 Premeditated price-cutting by our competitors to capture market will reduce on
profits of the business.

 We might also find it difficult to meet our sales target.

 Introducing new product brands in form of drinks will be difficult because of the
availability of substitute products.

 Difficulty in meeting our financial obligations with the suppliers.

8.3 Unpleasant consequences of the risks:

 Untimely delivery due to break down of our vans may lead to loss of customers.

 Failure to obtain the required amount of cash needed by the supplier may lead to
loss of business opportunity.

 High interest charged by the banks may increase the prices which further will
switch customers to other alternatives hence losses.

35
  If funds are not sufficient, we shall not affect our salary scheme and hence
discourage our staffs reducing morale and efficiency of our staff.

8.4 Plans to minimise the critical problems:

 Proper sales forecast will be drawn with the help of our marketing and sales
people. This will be done through market research by the research department.
 In order to minimize the problem of supply we shall ensure that we place enough
orders to cater for a period of time and with time relate with two more suppliers.
 Through market surveys, we shall ensure that the new products we introduce
really do not have substitutes. All will be done by the research teams.

8.5.0 Assumptions:

8.5.1 Sales projections:

 Sales will increase by 35% every year.
 Demand for our quality products will continuously rise.
 We assume interest rates will remain low.

8.5.2 Customer’s orders:

 Customers will submit their orders in time.
 We shall fulfill these orders as required and when needed.

36
 CHAPTER NINE:

9.0 Operation plan:

This section of the proposal mainly illustrates the operating plan, geographical location,
facilities, policies and company strategies.

9.1 Operating plan:

Materials and products for sale will be bought from our supplier and first stored at the
central stores .From where distribution will take place according to different
departments .Customers from government and non-government offices will not have to
come to our business offices or operating office but we shall serve them according to the
orders
.
To ensure compliance with quality, the products offered must be certified by Uganda
National Beaural of Standards.

We shall also ensure adequate safety stock that is why we must have a central store in
KIREKA in Wakiso town for easy control and forecast and this will be under a security
guard.
This will reduce on the seasonal overloads in demand.

9.2 Geographical location:

This business will be located in KIREKA in Wakiso town on Plot No1 KIREKA in
Wakiso- Kampala highway and this will serve as the Headquarters. This is because
KIREKA in Wakiso town is favored by the following factors:

 Abundantly served by electricity, water, enough packing space, and security

 Growing population provides market and labor.

37
9.3 Facilities:
The company intends to have the following facilities; stores, garages, office furniture,
delivery vans, freezing rooms, computers, and special hire vehicles. These facilities will
be financed from the capital and the reserves contributed by the shareholders.

9.3.1 Land and building:

The company intends to buy plot of land where more accommodation rooms and garages
will be constructed. This Plot will cost about 60,000,000 shillings. The construction will
take or cost us 70,000,000. The building and land will be appreciated at a rate of 11% per
annum

9.3.2 Machinery and equipment:

We shall buy all the necessary machinery and equipment for the company to ease
operations. Some of these include; computers, printers, photocopiers, micro waves,
cookers, fridges utensils, music systems, security machines, among others.

These machines and equipment are expected to cost 50,000,000 shillings and will be
depreciated at the rate of 10% per annum.

9.3.3 .Delivery and service vans and special hire vans.

Moses Tours company (U) Limited business plan to acquire two service vans for delivery
and transportation purposes, the business will acquire ten special hire vans. These vans
will be bought in Nagoya car bond at a cost of 200,000,000, shillings. These will be
depreciated at a rate of 10% per annum.

9.4 Company strategies and plans:

Moses Tours company (U) Limited plans and strategies will mainly focus on market
share, supply consistency, inventory control, price and quality control in delivering our
services.

38
9.5 Product supply:
Moses Tours company (U) Limited will solely get all its products from local suppliers
that is for local dishes and import some products for international dishes. This will be
done in two ways; we shall pay part of total invoice value in cash and get credit facilities
on agreed terms.

9.6 Quality control:

 In order to ensure quality and value for money of our customers, we shall put
measures to ensure that quality products are obtained from our suppliers and this
will ensure quality services.

 We shall ensure good aeration in our premises this one will provide good
working conditions to the workers.

 The employees of the business will have to pass under medical examination and
sick or infected people will not be employed and this will ensure proper running
of business activities.

9.7 Inventory control:

Our inventory will mainly be stock of finished goods that is drinks like sodas and other
materials like food staffs are will be obtained from both local and international suppliers.

9.8 Regulatory and legal issues:

As soon as the business is registered the firm will obtain a trading license from
KIREKA in Wakiso municipal council authorities to commence the business. Besides the
company will abide by all relevant legal requirements such an environmental certificate
to show whether the business is environmental friendly this will be obtained from
National Environment Management Authority (NEEMA). To certify quality all the
products must bear a stamp from Uganda national bureau of standards (UNBS).

39
 CHAPTER TEN

10.0 Financial plan:

This chapter shows the investment plan, sources of investment, and use of funds, sales
forecasts, cash projections from the venture, the project’s pro- forma statements, and
beak even point analysis.

10.1 Financing:
The business will be financed partly by the owner’s equity and the remaining deficit will
be a loan borrowed DFCU Bank (U) limited KIREKA in Wakiso branch.

The owner’s equity will be 250 million shillings and the loan to be borrowed will be 150
million shillings making a total initial capital of 400million.

The loan will be repaid at an interest of 10% per annum and completed in a period of ten
years equal installments.

10.2 Startup requirements and working capital:

The startup requirements will be financed from the initial capital of350 million shilling.
The requirements will be financed as the business operations expand and more branches
opened.

10.3 Finance and cost control:

 Proper drafting of budgets by different heads of departments ensures easy forecast
of what will happen in the company.
 Cash received will be banked immediately to ensure money loss.
 Cash has to be properly authorized before issue and all the money being given out
shall have receipts and signed for by the head of finance department and the general
manager.
 The finance controller will be required to check books of accounts for all
branches every month.

40
  Price changes will be updated by informing our customers through various kinds
of media like TV and radios, banners.

10.4 Financial assumptions underlying the project plan

 The following assumptions will be applicable in the preparation of pro forma
statements for the first 3years of the business operations.
 The company will pay legal fees in the first year of operation only.
 Staff salaries will be fixed in the first 3years.
 The cost of sales will remain constant in the period forecasted.
 The selling price of items and services offered are expected to be constant unless
affected by other factors such as competitor actions.
 Sales are expected to increase by 30% annually.
 The corporation tax paid will be 30% of the total revenue per year.
 Assets of the company will depreciate at the rate of 10% per annum at reducing
balance method.
 The company will not allow discounts and credit sales in the first 3years, as it will
be studying the customers.

10.5 Break Even Point analysis

Breakeven point defines the point at which the firm will cover all its operational costs,
i.e. Total costs = Total revenue.
BEP (Amount) = FC

Contribution for multiple products (MPCR)

Where FC=Fixed Costs.

MPCR=Multiple Products Contribution Ratio.
SALES MIX = INDIVIDUAL SALES REVENUE
X100%
MULTIPLE SALES REVENUE

41
ESTIMATED SALES UNITS:
serial Products Units Variable cost
number Selling price (shs)
1 Soft drinks 1400 1200 1000
2 Alcoholic drinks 500 2800 2500
3 Food items 1000 1100 1000

42
ESTIMATED SERVICE COST AND INFLOW:

Serial Service Units Offering Variable

number price(shs) cost(shs)
01 Accommodation(middle 30 25000 10000per
class) night
02 Accommodation(low 15 15000 per 5000pre
class) night night
03 Transport services The Distance Differ at the
distance covered and rate of
covered the costs distance
incurred covered
70 items 2500
04 restaurant 4000

43
Break-even point per product in value and units:

Products Sales mix BEP(amount BEP(amount/pdtshs) BEP(units)

shs)
Soft drinks 0.25 115,853,700 1,737,806 43

Alcoholic 0.22 115,853,700 2,317,074 221

dinks
Catering 0.118 115,853,700 2,085,367 93
services
Food items 0.101 115,853,700 2,780,489 278
Transport 0.133 115,853,700 3,823,172 294
services
Stationary 0.15 115,853,700 1,737,806 193

1112

44
BREAK EVEN POINT CHART:

TR
Revenue
Profit (Shs) TC

BEP
BEP amount 180,651,000

FC
105,000,000.

0 1,122
BEP (Units) Output

45
Pro forma financial statements:
INCOME STATEMENT FOR (2018-2020)

DETAILS 2018 2019 2020

(Shs) (Shs) (Shs)
Sales 370,305,000 425,966,000 580,627,000

Cost of sales (42,000,000) (48,000,000) (52,000,000)

Gross profit 328,305,000 377,966,000 528,627,000

Less Operating Expenses

Salaries and wages (750,000) (750,000)

(750,000)
Carriage outwards (17000000) (15000000) (14500000)

Electricity (20,000,000) (21,000,000) (20,000,000)

Fuel (40,000,000) (38,000,000) (39,000,000)

Depreciation (30,600,000) (27,540,000) (24,480,000)

Bad debt written off (2,000,000) (1,860,000) (1,500,000)

Water (12,000,000) (11,000,000) (10,000,000)

Telephone (600,000) (500,000) (450,000)

Interest payable (21,600,000) (17,458,000) (12,571,000)

Legal fees (12,000,000)

License fees (5,000,000) (6,000,000) (7,000,000)

Profit before tax 166,755,000 218,858,000 379,376,000

Corporation tax (30%) (50,026,500) (65,657,400) (113,812,800)

Profit after tax 116,728,500 153,200600 265,563,200

BALANCE SHEET FOR (2018, 2019 &2020)

46
 Noncurrent assets 2018 2019 2020
(Shs) (Shs) (Shs)
Land and buildings 167,755,500 297,515,000 157,140,000

Machinery and equipment 157,755,500 288,515,000 40,500,000

Delivery van 64489,000 40,030,000 17,820,000

Current assets
Stock 102,500,000 131,000,000 135,500,000

Debtors 1 60,000,000 148,400,000 1 60,000,000

Cash & bank 170,000,000 197,000,000 300,000,000

NET ASSETS 822,500,000 1102,460,000 919,500,000

EQUITY&LIABILITY
Share Capital 450,000,000 450,000,000 450,000,000

Accumulated Profits 159,217,500 180,430,600 201,299,200

Current Liabilities
Creditors 24,875,000 29,784,000 96,131,000
Interest payable 21,600,000 17,458,000 12,571,000

Corporation Tax 46,807,500 62,327,400 78,556,800

Noncurrent liabilities

Loan 120,000,000 94,400,000 80,942,000

822,500,000 1102,460,000 919,500,000

10.6 Testing the validity of the Project:

We shall evaluate the Faith Group of company’s project using the Net Present Value
(NPV) Investment Technique.

NPV= X -X0

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 (1+r) n

The Net Present Value (NPV) of the project:

YEARS NET CASH DISCOUNTING PRESENT

FLOWS FACTOR (DF) VALUE (PV)
(Shs) (10%) (Shs)
2017 .(600,000,000) 1.000 (600,000,000)

2016 I20,000,000 0.909 109,080,000

2017 190,000,000 0.826 156,940,000

2018 215,000,000 0.751 161,465,000

NPV 172,515,000

Since the Net Present Value (NPV) is positive as shown above that is Shs 172,515,000 it
means our project is viable.

APPENDIX I

Loan amortization schedule:

YEAR BEGINNING SCHEDULE PRINCIPLE INTEREST ENDING

48
 BALANCE PAYEMENT(shs) PAYMENT PAYEMEN BALANCE(shs)
(Shs) (Shs) T (Shs)
2018 150,000,000 22,014,497.27 7,014,497.27 15,000,000 142,985,502.7
2019 142,985,502.7 22,014,497.27 7715946.997 14,298,550.7 135269555.7
2020 135269555.7 22,014,497.27 8487541.7 13526955.57 126782014
2021 126782014 22,014,497.27 9336295.87 12678201.4 117445718.1
2022 117445718.1 22,014,497.27 10269925.46 11744571.81 107175792.6
2023 107175792.6 22,014,497.27 11296918.01 10717579.26 95878874.59
2024 95878874.59 22,014,497.27 12426609.81 9587887.459 83452264.78
2025 83452264.78 22,014,497.27 13669270.79 8345226.478 69782993.99
2026 69782993.99 22,014,497.27 15036197.87 6978299.399 54746796.12
2027 54746796.12 22,014,497.27 16539817.66 5474679.612 38206978.46
2028 38206978.46 22,014,497.27 18193799.42 3820697.846 20013179.04

2028 20013179.04 22,014,497.27 20013179.37 2001317.904 0

COMPUTATION:

Interest(r) =10%

Repayment period (n) = 12 years

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Loan amount =shs150, 000,000

Formula = r *A
1-(1+r)-n

=0.1 * 150000000
1-(1.1)-12
=22,014,497.27

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 APPENDIX II

Depreciation schedule from 2018-2020:

Years 2018 2019 2020

Assets

Building Cost(Shs) 70000000 62,300,000 55,447,000

Depreciation 7700000 6,853,000 6,099,170
(11%) (Shs)
Net book value 62,300,000 55,447,000 49,347,830
Machinery Cost(Shs) 50,000,000 45,000,000 40,500,000
&equipment
Depreciation 5,000,000 4,500,000 .4,050,000
(10%)(Shs)
Net book value 45,000,000 40,500,000 36,450,000
Delivery vans Costs 300,000,000 270,000,000 243,000,000

Depreciation 30,000,000 27,000,000 24,300,000

(10%)
Net book value 270,000,000 243,000,000 218,700,000

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 APPENDIX III

Summary of initial requirements:

ITEMS AMOUNT IN
SHILLINGS
Land 50,000,000

Building 70,000,000

Distribution vans and special hire vans 200,000,000

Equipment and machinery 60,000,000

License fees. 5,000,000

12,000,000
Company registration fees.
Stock. 3,000,000

400,000,000
Total

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 APPENDIX IV

Curriculum vitae of the general manager of Ben and family hotel and transport
service Company (U) Limited.

Bio- data:
Name: KISAKYE MOSES
Sex: Male
Nationality: Ugandan
Marital status: Single
Date of birth: 05th April 1994
Contact Address: KIREKA in Wakiso municipality, P.O Box 324, KIREKA in
Wakiso.
Telephone no: 0705 648266/ 0774633294
Educational Qualifications:

Year School/Institution attended Award

2014-2017 Kyambogo University Bachelors in accounting and finance

2008-2010 Kisubi Brothers secondary UACE

school
2003-2007 St. Mary’s Kitende secondary UCE
school
1995-2002 Zzana primary school PLE

Working experience:
YEAR ORGANIZATION POSITION
2012-2014 ABC BANK CREDIT CONTROLLER

2016-DATE SADOLINE SALES ASSISTANT

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Hobbies:
 Watching soccer
 playing games
 reading novels
 creating friends

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 APPENDIX V:

Loan application letter:

MOSES TOURS COMPANY (U) LIMITED

Plot No.1
BEN Po Box 245
KIREKA IN WAKISO (U)

Date: 27th October, 2017

THE BRANCH MANAGER

BARCLAYS BANK BWEYOGERE IN WAKISO,
POBOX 34,
BWEYOGERE IN WAKISO

Dear Sir/Madam

Re: APPLICATION FOR Shs 150 MILLION BUSINESS LOAN:

I would like to take this opportunity to submit our application on behalf of the owners of
Moses Tours company (U) Limited for the loan which we need to access from your bank.
Moses Tours company (U) Limited is a registered company at the registrar house in the
register book of companies (Georgiana house) and offers service like hotel services, bar
and transport services. The business is located on KIREKA in Wakiso–Kampala high
way and offers the above services

Therefore, the major aim of this letter is to request for the above loan which will
supplement the owner’s equity worth Shs 250 million which we have used to start the
business. This was agreed upon in the directors meeting which was held in June 2016 to
get a loan for your bank.

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So let us hope that our application will be considered.
Yours sincerely
………………………
KISAKYE MOSES
General Manager

56
KYAMBOGO UNIVERSITY

MOSES TOURS COMPANY (U) LIMITED

BUSINESS PLAN

PRESENTED BY
NAME: KISAKYE MOSES OSCAR

REG NO.15/U/1869/AFE/PE
SIGNATURE: ………………………..

COURSE UNIT: ENTERPRENUERSHIP PRACTICE

FACULTY: SCHOOL OF MANAGEMENT AND

ENTERPRENUERSHIP

LECTURER: MRS BISASO REGINA RITA

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