MAKERERE UNIVERSITY

MAKERERE UNIVERSITY BUSINESS SCHOOL

FACULTY OF ENTREPRENEURSHIP AND BUSINESS ADMINISTRATION

DEPARTMENT OF ENTREPRENEURSHIP

BUSINESS PLAN ON ECOLOGICAL SANITATION TOILETS

A BUSINESS PLAN SUBMITTED TO MAKERERE UNIVERSITY BUSINESS SCHOOL IN

PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF A
BACHELORS DEGREE IN ENTREPRENEURSHIP
AND SMALL BUSINESS MANAGEMENT OF
MAKERERE UNIVERSTIY

MAY, 2014

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 TABLE OF CONTENTS
Executive summary.....................................................................................................................................v
SECTION ONE...........................................................................................................................................1
COMPANY OVERVIEW...........................................................................................................................1
1.0 Introduction.....................................................................................................................................1
1.1 Opportunity.....................................................................................................................................1
1.2 Vision..............................................................................................................................................3
1.3 Mission statement............................................................................................................................3
1.4 Objectives........................................................................................................................................3
1.4.1 Long term objectives...................................................................................................................3
1.4.2 Short term objectives...................................................................................................................3
SECTION TWO..........................................................................................................................................4
PRODUCT OR SERVICE DESCRIPTION................................................................................................4
2.0 Introduction.....................................................................................................................................4
2.1 Product/service features...................................................................................................................4
2.2 Product/service benefits...................................................................................................................5
SECTION THREE......................................................................................................................................7
MARKET AND INDUSTRY ANALYSIS.................................................................................................7
3.0 Introduction.....................................................................................................................................7
3.1 Market size and growth...................................................................................................................7
3.2 Target market...................................................................................................................................7
3.3 Industry structure.............................................................................................................................7
3.3.1 Porter’s Five Forces Model..........................................................................................................8
SECTION FOUR......................................................................................................................................10
COMPETITOR ANALYSIS.....................................................................................................................10
4.0 Introduction...................................................................................................................................10
4.1 Competitive environment..............................................................................................................10
4.2 Competitor profile.........................................................................................................................10
4.2.1 Competitor profile matrix..........................................................................................................10
4.3 Competitive advantage..................................................................................................................11
4.3.1 Competitive advantage matrix...................................................................................................11
SECTION FIVE........................................................................................................................................12

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MARKETING PLAN................................................................................................................................12
5.0 Introduction...................................................................................................................................12
5.1 Target market strategy...................................................................................................................12
5.2 Product/service strategy.................................................................................................................12
5.3 Pricing strategy..............................................................................................................................13
5.4 Positioning.....................................................................................................................................13
5.5 Communication strategy................................................................................................................13
5.6 Channel strategy............................................................................................................................14
5.7 Sales strategy.................................................................................................................................14
5.8 Revenue model..............................................................................................................................14
SECTION SIX...........................................................................................................................................15
OPERATIONS PLAN...............................................................................................................................15
6.0 Introduction...................................................................................................................................15
6.1 Input factors...................................................................................................................................15
6.1.1 Raw materials and suppliers......................................................................................................15
6.1.2 Equipments and suppliers..........................................................................................................15
6.2 Production/service delivery process...............................................................................................16
6.3 Quality control...............................................................................................................................17
6.4 Record keeping and procedures.....................................................................................................18
6.5 Billing and collection policies and procedures...............................................................................18
SECTION SEVEN....................................................................................................................................19
MANAGEMENT PLAN...........................................................................................................................19
7.0 Introduction...................................................................................................................................19
7.1 Ownership.....................................................................................................................................19
7.2 Top management...........................................................................................................................19
7.3 Staff structure/organization chart...................................................................................................21
7.4 Reward structure............................................................................................................................21
SECTION EIGHT.....................................................................................................................................22
FINANCIAL PLAN..................................................................................................................................22
8.0 Introduction...................................................................................................................................22
8.1 Investment requirements................................................................................................................22
8.2 Financing plan...............................................................................................................................22

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8.4 Financial assumptions and projections...........................................................................................22
8.4.1 Financial assumptions................................................................................................................22
8.4.2 Financial projections..................................................................................................................23
8.4 Financial sustainability strategy.....................................................................................................23
8.5 Risk and opportunity......................................................................................................................24
8.5.1 Risk and opportunity matrix......................................................................................................24
SECTION NINE........................................................................................................................................26
DEVELOPMENT PLAN..........................................................................................................................26
9.0 Introduction...................................................................................................................................26
9.1 The implementation plan...............................................................................................................26
9.2 The Gantt chart..............................................................................................................................27
APPENDICES...........................................................................................................................................28
APPENDIX 1: PROBLEM SITUATION..................................................................................................28
APPENDIX 2: SOLUTION (ECOLOGICAL SANITATION).................................................................29
Appendix 3: Financial Assumptions..........................................................................................................30
Appendix 4: Initial Investment Cost..........................................................................................................31
Appendix 5: sales projections....................................................................................................................32
Appendix 6: depreciation schedule............................................................................................................33
Appendix 7: salaries projections................................................................................................................34
Appendix 8: expenditure model................................................................................................................35
Appendix 9: working capital schedule.......................................................................................................36
Appendix 10: income and expenditure account.........................................................................................37
Appendix 11: cash flow statement............................................................................................................38
Appendix 12: balance sheet.......................................................................................................................39
Appendix 13: Net present value................................................................................................................40

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 Executive summary
Divine Ecological Sanitation limited will be a private limited company established in Arua town
to provide modern sanitation facilities. Sanitation and Hygiene is one of the priority areas in
Water and Environment Sector Plan 2010 by the Ministry of Water and Environment. Arua is a
growing but seemingly rotting town. Public toilet management remains a big problem here. The
town scores a below average mark of 4.2/10 mark on cleanliness of public toilets. Broken sewers
are also a major problem in Arua town with 22% of respondents saying they have seen sewage
bursts. 19% reported that there were open man holes in the town. This has led to the frequent
outbreaks of water-borne diseases mainly cholera, diarrhea and dysentery in slums such as Bibia
cell, Tanganyika ward and Pangisha ward all in River oli division Arua municipal council. In
addition, it has led to pollution of the environment through flying/buvera toilets, littering of
streets with feces, and bad air pollution.

As a solution, Divine Ecological Sanitation Limited intends to construct Ecological Sanitation

toilets in this town to put an end to toilet pollution. These toilets have been designed in such a
way that it has a collection chamber built underneath the two squat holes; one that receives urine
and another that receives feces with urine diverting toilet seats and squatting slabs and pans. It is
an environment friendly sustainable sanitation system which regards human waste as resource
for agricultural purposes and food security.

The target market will be market centres and slums around Arua town. Our marketing strategy
will be to become the market leader, through establishing branches all over West Nile districts,
organizing events like community cleanup exercises, mass sensitization on the use to adopt
ecological sanitation and participating in sanitation and hygiene exhibitions, conferences and talk
shows to promote the company and its services.

The business will compete with conventional toilets established by Arua Town council and other
toilet options like buvera. The company’s competitive advantage include; General cleanliness of
the toilets, no bad smell from the toilets, recycling of the waste products to make organic manure
and fertilizer which are used for agriculture, Environmental friendliness because ecological
sanitation causes no harm to the environment but instead helps to conserve it and Cost
effectiveness because it does not need a lot of water to operate.

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The management team will consists of young professionals chosen wisely from business
disciplines like entrepreneurship and small business management, accounting, fertilizer
production and others. They are more than motivated to make a breakthrough in business.

The business needs shs10million to start on a small scale and generate a whooping shs108million
in first year of operation, shs113.6million in year 2, shs125million in the third year,
Ushs143million in the fourth year and Ushs172.5million in the fifth year.

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 SECTION ONE

COMPANY OVERVIEW

1.0 Introduction
Divine ecological toilet chain will be established as a private limited company dealing in the
provision of modern toilet facilities that will put an end to toilet pollution. Its first phase will be
set up by January 2015 in Arua town, particularly at Arua main market on go down road, and
Bibia cell in Pangisha ward slum; after which other towns in the country will follow suit. The
business intends to spread into a wide chain throughout the country for many generations to
come.

1.1 Opportunity
Currently, less than 10% of the two million people in Kampala are served by the public sewer
system run by the National Water and Sewerage Corporation. As a result, more than 800,000
people in the urban slums are facing deplorable sanitation and environmental problems (NEMA
State of Environment Report 2008). The increasing population density in the slums, inadequate
space and the swampy nature of Kampala has necessitated the need for more ecological
sanitation (ecosan) toilets as use of pit latrines and flush toilets alone cannot provide slum
dwellers with a clean and hygienic environment.

Ecological sanitation is an approach to human excreta disposal that aims at recycling nutrients
back into the environment as a way of turning them into more productive systems, providing an
option for Kampala’s urban poor / slum areas. As residents in these slums are mainly poor
people, they can neither afford fees to properly drain sewerage nor hire cesspool services to
remove it. It is on these grounds that filled up pit latrines and filth from slums continue to be
unplugged and directly dumped respectively, into open spaces including wetlands and water
channels like the Nakivubo channel in Kampala. This ends up choking Lake Victoria whose
health is already bad.

Arua town is no exception. According to a study done by the vision group In its ‘’Make Uganda
Clean Campaign’’ and was published in the new vision on April 12 2014, Arua is a growing but
seemingly rotting town. Public toilet management remains a big problem here. The town scores a
below average mark of 4.2/10 mark on cleanliness of public toilets. 86% of people are aware of

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public toilets in the town; which costs about sh195. That is probably why 7% of the town
dwellers use the bush, field, street or corridors. Broken sewers are also a major problem in Arua
town with 22% of respondents saying they have seen sewage bursts. 19% reported that there
were open man holes in the town. The latrine coverage was so low, especially in Oli division at
only 29%. In the Hill division the latrine coverage stood at about 70% because the fairly wealthy
people reside there.

Ecological sanitation (EcoSan) is based on three fundamental principles: preventing toilet

pollution rather than attempting to control pollution, rendering the urine and feces safe for reuse,
and using the safe products for agricultural purposes. Ecological toilets use a minimum amount
of water or no water at all. The urine diverting toilets are designed to keep urine and feces (and
also possibly water used for anal cleansing) separate, to permit their separate disposal. Most of
the nitrogen contained in excreta is in the urine that transmits few of the diseases associated with
human waste. (schistosomiasis and typhoid are notable exceptions in certain areas).

Once urine and feces are kept separate, urine can be used as a fertilizer without treatment, with
minimal precautions needed to protect health. Fecal matter will also remain dry and therefore
easier and more convenient to manage. Increases in storage time, temperature, dryness, ph,
ultraviolet radiation, and competing natural soil organisms are amongst the environmental factors
used to enhance the treatment and composting of the fecal matter.

On the other hand, agriculture is suffering from lack of soil nutrients, and production of chemical
fertilizers is energy-intensive. Theoretically, the nutrients in domestic wastewater and organic
waste are nearly sufficient to fertilize crops to feed the world population, and, depending on soil
and plant type, the excreta of one person can provide enough nutrients for 200 to 400 square
meters agricultural production area. Within a few years, phosphate deposits mined in Uganda are
expected to be exhausted. Also, the need to save water resources has become public knowledge,
and measures to do so are easily understood and accepted. The conventional water toilet
accounts for 2 to 40% of the per capita water consumption.

Divine Ecological Sanitation Company Limited is establishing a chain of Ecological Sanitation

toilets, as a solution to lack of water and inadequate space for construction of pit latrines. With
Ecological Sanitation toilets, one can be able to reduce the health risks related to sanitation and

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contaminated water and waste because it use minimal water and are basically neat facilities that
require less attention as compared to pit latrines.

1.2 Vision
The best toilet for better health and sustainable environment

1.3 Mission statement

To be at the forefront of conserving the environment through ecological sanitation toilets

1.4 Objectives
Divine Ecological Sanitation Company Limited’s objectives include the following.

1.4.1 Long term objectives

i. To ensure a 50% reduction in toilet pollution in Arua town and the entire West Nile
region by 2020.
ii. To establish 20 units of ecological sanitation toilets throughout West Nile by 2020.
iii. To realize 20% increase in market share in the provision of Ecological Sanitation Toilets
in Uganda by 2020.

1.4.2 Short term objectives

i. To realize 10% returns on investment by 2016
ii. To involve 500 stakeholders (Governmental and Non Governmental organizations)
towards improved sanitation in Uganda by 2016
iii. To assist the government of Uganda towards realizing the millennium development goal
of improved access to clean water and improved sanitation by 2015.

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 SECTION TWO
PRODUCT OR SERVICE DESCRIPTION
2.0 Introduction
This section contains the features and benefits of the product/service that will be offered. They
are as shown below;
2.1 Product/service features
The features and uniqueness of divine ecological sanitation toilets are shown in the table below.
Table 1: product/service features and uniqueness
Features
Ecological  An Ecological Sanitation is a pit latrine
Sanitation that has a collection chamber built
toilets underneath the squat hole. There are
two squat holes; namely: one that
receives urine and another that receives
feces.
 Urine and solid waste pass through the
squat holes and are collected separately
in the underground collection chamber.
The solid waste is collected in a black
paper bag to facilitate drying while the
urine travels through a pipe connected
to the urine hole to the collection drum
underneath.
 The ecological toilets are built entirely
above ground level, mostly in areas
with high ground water table or hard
sub-surface rock.
 Ecological toilets includes options such
as flush-free (odour-free) urinals,
separation toilets for urine and feces,
dry and composting toilets, dehydration
devices for composting feces, for the
generation of biogas, vacuum sewers
and flush systems operating on minimal
amounts of water.
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Uniqueness
 Once full, the chamber is emptied
and the solid waste collected is
dried in black plastic bags for a
period of six months while the
urine is treated.
 It has a panel, designed to catch
and transmit solar radiation and
hence heat up the contents of the
vault or chamber; which heating
can reduce their water content and
accelerate the compositing and
stabilization process.
 Ecological toilets insist on
maximum possible re-use of
nutrients from human excreta.
Urine uncontaminated by feces
with minimal processing is re-used
as fertilizer in farming and
gardening. Decomposed feces can
produce biogas, with its dried
sludge used as fertilizer.
 The technology that will be used
comes in handy to eliminate
odours, to assure hygienic
conditions in toilet rooms, toilets,
and urinals, to compost wastes, to
improve sewage treatment, to
hygienize and improve agriculture.
Fertilizer/  Dried solid waste and urine add  It is natural and helps to recycle
manure nutrients to make soil more fertile nutrients back to the environment
leading to better harvests. and has no environmental
problems at all.
 Urine can be sprayed in the
gardens immediately or even after
storage.

2.2 Product/service benefits

Eco-San Toilets have variety of benefits as shown in the service features and benefits table
below.

Table 2: Toilet service/manure features and benefits

Product Target Benefits

/service customer
Toilet Slum  Properly used and well maintained eco-san toilets do not emit the
services dwellers slightest smell. Due to the absence of bad smell, Eco-san toilets
of River neither have flies nor insects that are usually found in normal VIP
Oli latrines. Absence of bad odor and flies reduces risks of disease caused
Division by contamination. The recycling of human waste prevents people from
Arua relieving themselves in water sources which further contaminates
Municipal rivers, lakes etc.
ity  Reduction of odors and flies by reducing the moisture of the wastes,
Reduction in the amount of cover material needed, Reduction in the
volume of wastes needing to be removed from the toilet and treated,
Facilitation of pathogen die off through desiccation of the poop,
Promotion of safe, hygienic recovery and use of nutrients, organics,
trace elements, water and energy, Contribution to the conservation of
resources through lower water consumption, substitution of mineral
fertilizer and minimization of water pollution
 Extreme poverty in slums necessitates the need for ecological
sanitation toilets because of its cheap in terms of use of water, as
access to water in slums is a costly venture.

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  The lifespan of an eco san toilet is long; it has been known to last
more than a decade compared to other toilets such as pit latrines this
makes them more user friendly to residents of slums such as Bibia cell
,Pangisha ward , and Muru cell, among others.
 Sustainable sanitation systems protect and promote human health,
minimize environmental degradation and depletion of the resource
base, are technically and institutionally appropriate, socially
acceptable and economically viable also in the long term.
Compost Small  Dried solid waste and urine add nutrients to make soil more fertile
manure scale leading to better harvests. Urea contained in urine sprinkled on
Farmers soil Improves Crop Resistance to diseases. Human waste sprinkled on
in West soil minimizes the growth of weeds such as” tiger weeds”. Human
Nile waste used as manure has no artificial fertilizer which may contain
dangerous toxic chemical
 Manure from Ecological Sanitation toilets saves on costs incurred on
the purchase of chemical fertilizer which is sold expensively to the
farmers. Ecological Sanitation toilets present a possibility for
additional income generation through the sale of the solid waste to
local farmers. Eco-San toilets are durable and permanent; they do not
require reconstruction once they get full like pit latrines.
 From an agricultural point of view, the use of ecological sanitation is
highly recommended because nutrients from excreta and urine which
are got from Ecological Sanitation toilets are used as fertilizer for
crops though the concept of urban agriculture, which would help the
users of Ecological Sanitation to benefit from the fertilisers, is not yet
well-developed in Uganda.

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 SECTION THREE

MARKET AND INDUSTRY ANALYSIS

3.0 Introduction
This section covers the market size and growth, target market, and industry structure.

3.1 Market size and growth

More than 70% of Ugandans most especially those in rural areas do not have access to sanitation
toilets. Majority of urban folks in most urban centres in the country, most especially the slum
areas located in the suburbs of the towns like Namuwongo, Bwaise, Kamwokya, Katwe, Karelwe
among others. In Arua town, the situation is even worse most especially in the slums of Bibia
cell and Tanganyika village in River Oli divison Arua Municipality. The folks in these areas
dump human waste tied in polythene bags along the streets and water channels.

The number of market centres is on the increase in Uganda with places for example in Arua,
market like Arua Main Market, Awindiri market, and Alayi markets situated in Arua Hill
Division, Arua Municipality attract large numbers of market vendors and customers on a daily
basis. There are many other places with similar situation on the country side for example Moyo,
Yumbe, Nyadri, Koboko and Adjumani District with chronic water shortage. This therefore
shows that there is abundant market that is virgin and will be more than willing to accept our
offer.

3.2 Target market

The primary target is people living in slum areas in Arua town for example Bibia cell. The
secondary market is people in the market centres for example Arua Main Market. These two
places will provide the starting point for the company’s operations.

3.3 Industry structure

In Uganda, the sewerage industry is structured in a way that, the only body that is responsible for
sanitation is National Water and Sewerage Corporation, which collects and treats human waste
the conventional way through a central sewer system. In rural areas and institutions like schools,
hospitals, and public places like markets, people have been encouraged to construct pit latrines.
This concept of Ecological Sanitation toilets is completely something very new.

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3.3.1 Porter’s Five Forces Model
We used Michael Porter’s Five Forces model in analyzing the industry structure. The model uses
five competitive forces that determine industry profitability and attractiveness. These are existing
rivalry/ competition, power of buyers, substitutes, suppliers, and threat of new entrants.

Rivalry within the industry

There is less rivalry within sanitation industry. Currently there are over 30,000 units of
ecological sanitation toilets at household level, schools and public institutions in the country.
These are mainly found in areas where the water table is high, rocky grounds and unstable soils.
At community level, households with Ecosan toilets have registered reduction in flies and foul
smells while on the other hand productivity of bananas, maize and other crops have increased as
a result of applying urine and human manure (Network for Water and Sanitation Uganda report
2011).

There is however no single company in Uganda, which have set up an Ecological Sanitation
toilet chain, but instead there are several Government and Non Governmental supported
conventional toilets systems that have been established in some parts of the country. In Kampala
for example, KCCA has established a number of public toilets around major markets like
Nakawa, Owino, Karelwe among others.

In other towns like Masaka, Gulu, Mukono, and even Arua, among others, town councils have
also established some public toilets that are either flush toilet connected to the central sewer
system or run as pit latrines. In these toilets, people are required to pay a minimum charge of
shs200 to access toilet services.

There is some form of differentiation in this industry. Toilets run by central councils bear green
and yellow colours and marked with the name of the council. The business will however
differentiate it’s kind of toilets from the conventional ones with having cream colors painted in
its toilets for easy identity.

Threat of new entrants

Threat of new entrants is low. This industry has very limited entrants because it requires huge
initial capital investments. According to Network for Water and Sanitation Uganda report 2011,
constructing an ecological sanitation toilet costs between shs1.5million to 3million (Uganda). It

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also has high switching costs. In case the owner wants to switch to another line of business,
he/she has to abandon the entire investment. The company must be registered and it must meet
requirements for a public toilet facility and must operate with a trading license. It is rewarding
but in the long run, which may not invite many cash hungry investors who are there for
immediate profits. A company which enters and establishes itself in this industry will therefore
become a monopoly; and enjoy all the resulting economies of scale for its life time.

Bargaining power of suppliers

Commercial toilet services require several inputs which include construction materials like
(bricks, cement, sand, iron sheets, etc.), drums, jerry cans, and chemicals. Compared to other
businesses, this choice of business does not require regular supplies. A company invests once
and waits for profits to come for many generations to come. Besides the suppliers of inputs like
treating chemicals and detergents are many in number and sell at competitive prices which
enable ecological sanitation companies to have a high bargaining power over suppliers.

Bargaining power of buyers

There is low threat of buyers. This industry has many buyers (more than 70% in Uganda). They
are in market centres and slums within Arua town. These markets require quality services; the
best experience in toilet services in the country. They bargain for low prices but can be modeled
to get used to a common price. There has been also a requirement put forward by NWSC for
public toilets that is it should be designed in such a way that they can easily be used by persons
with disabilities, The size of the toilet shall be of minimum dimension of 2.78X1.86m, toilet
seats, provision for both sexes, cleaning detergents, water for washing hands and minimum
levels of general cleanliness. Businesses that can provide toilets with such requirements often
get customer loyalty.

Threat of substitutes
The only challenge for Ecological Sanitation toilets are the substitutes. There are many
conventional pit latrines and flush toilets across the country. In slums and rural areas, people opt
for road sides and bushes, polythene bag latrines, corridors among others places. The only good
thing however is that such practices are illegal. once sensitized about the likely dangers related to
improper disposal of human excreta and the importance of Ecological Sanitation toilets, people
will easily adjust.

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 SECTION FOUR

COMPETITOR ANALYSIS

4.0 Introduction
This section covers the competitive environment, competitor profile and competitive advantage.

4.1 Competitive environment

The industry is less competitive. As already mentioned, the players in this industry are
conventional toilets that are established by government or nongovernmental organizations which
either establishes the flush toilets run by the central sewer system or pit latrines run by the
city/town councils. Ecological sanitation toilets are a new trend in Uganda and notable entities
that have taken it up are schools like Makerere University, some hospitals like Maracha hospital
and few village homes. This therefore zeros down to two players in the industry that is
Ecological Sanitation toilets and conventional toilets.

4.2 Competitor profile

Giving a honest assessment where 1 is poor, 2 is fair, 3 is fairly good, 4 is good and 5 is
excellent, The competitive profile is shown in the competitive profile matrix below;

4.2.1 Competitor profile matrix

Attributes Ecological Sanitation Toilets Conventional toilets
Service offering 5 1
Quality 5 2
Environmental friendliness 5 1
Location 5 3
Price 4 4
Target market 5 3
Market share 5 4
Costs of operation 2 5
Innovation 5 1
Operations efficiency 4 1
Management 5 4
Strategic alliances 5 2
Company size 2 5
Financial resources 4 4

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 4.3 Competitive advantage
Compared to competitors, the business derives its competitive advantage as shown in the
competitive advantage matrix below;

4.3.1 Competitive advantage matrix

Main Their strengths over Their weaknesses over my My competitive advantage over
competitors my business business competitor
Arua  They are  The town council  Cost leadership: we shall offer
Municipal funded by incurs about quality services yet at low
Council the district shs70million costs. For only shs200, a client
administrati annually on will access our clean toilets
on which sanitation and benefit from an array of
injects over services.
shs70millio
n to provide
sanitation to
town
dwellers
 After visiting the  Differentiation: we shall
toilets, clients go provide a variety of products,
without washing services, or features to
hands especially the consumers that competitors are
pit latrines because not yet offering or are unable
of no water and to offer for example water and
detergents like soap soap for washing hands after
visiting the toilets.
 Once full, the  Innovation: we shall introduce
toilets are emptied a completely new or notably
and the human better products or services like
wastes are making fertilizer from the
discharged to open urine and dehydrated feces for
spaces and water agricultural use. In so doing we
channels rendering shall close the nutrients gap
problems to the and recycle nutrients back to
environment the environment.
 Have rigid  Operational effectiveness by
procedures of perform internal business
operation. They are activities better than
bureaucratic and competitors, making the
cannot respond to company easier or more
emergencies let pleasurable to do business with
alone make changes than other market choices.
to their existing
offers

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 SECTION FIVE

MARKETING PLAN

5.0 Introduction
This section covers the Target market strategy, Product/service strategy, pricing strategy,
Positioning, Communication strategy, Channel strategy, Sales strategy and the Revenue model.
This is as explained below;

5.1 Target market strategy

The business’ target market will be urban residence in slum areas of River oli Division Arua
Municipality. And market centres like Arua Main Market, Awindiri market, and Alayi markets
situated in Arua Hill Division. The market is characterized by large urban population of about 2
million people residing in town and about 500 people who come to work in Arua town in the
morning and retire to the villages in the evening.

The unmet needs of this market have been the absence of a modern toilet service which is
environmentally friendly. Most of the public toilets here are in very bad shape, bursting all the
time and filled with filth.

An alternative to all this problems that have been happening in this growing town is an
Ecological Sanitation toilet which can provide clean and recyclable toilet services to the people.
The buying decisions of these customers are influenced by the fit for purpose/quality
(cleanliness) and low prices.

The evidence supporting this argument is that expensive and yet unclean toilets have forced
people to abandon public toilets and opt for the bushes, and buvera means. In future the business
will add to its existing customer segment, the other west Nile districts of Moyo, Yumbe, Nyadri,
Koboko and Adjumani Districts because of the acute shortage of water and poor toilet facilities.

5.2 Product/service strategy

The products/services will be designed to meet the needs of the target market in a way that;
initial offer is toilet services characterized by the dispose and store means. The stored waste will
then be processed to make fertilizer for agricultural use. This will close nutrient loop in a way
that, a person will visit the toilet, dump his/her waste, the waste is collected and used in farms for
food production, the food is sold to the same person to eat and the process continues that way.

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This will ensure that all waste is recycled and no harm is caused to the environment. This is very
different from those of competitors in a way that the conventional toilets are characterized by
store and discharge to open spaces and water channels causing unnecessary smell and
environmental pollution.

5.3 Pricing strategy

The business pricing strategy will be introductory low price to get consumers to use.

The 5 year price list is shown in the table below;

Price indicators Year 1 Year 2 Year 3 Year 4 Year 5

Annual price growth rate 5% 10% 15%

Toilet 200 200 210 231 266
Manure 500 500 525 578 664

Our pricing strategy will be similar when compared to those of competitors. They charge shs200
for toilet services and do not have fertilizers.

5.4 Positioning
As an alternative so as not to suffer from environmental downfall, the company will introduce
dispose-and-recycle toilet solutions; which are smell free, easy to use, and provide waste which
can be used to boost to food production. The business name will be Divine Ecological Sanitation
limited. The business characteristics will be its essence of personality with its common phrase
‘’recycle waste for better environment’’, emphasizing the need to have a proper and improved
sanitation and hygiene in Arua and West Nile as a whole.

5.5 Communication strategy

We will inform the target market about the availability of our offer through exhibitions and
conferences. We plan to organize sanitation awareness workshops around Arua municipality
involving all local leaders and the point of focus will be to introduce the idea of ecological
sanitation. We will use the participants as pioneers and use them to pass the information to their
subjects.

We will also carry out events like community cleanup events, during which we shall distribute
flyers and hang posters and notices about the introduction of our offer. After this we shall launch

13
our business with lots of publicity and also publish booklets for and distribute to all responsible
persons and offices. We will then create and host our company website for those who can access
our website to read and learn more about our services.

5.6 Channel strategy

We will deal directly with our clients. We will locate our toilets within proximity of clients and
market and sell of products directly to them. For the fertilizer, we shall deal both directly and
indirectly with our clients. For direct dealings, we will sell through personal selling using our
salesmen, and indirectly using our agents and retailers. There are some shops in Arua town
which can stock our fertilizers and sell to customers in small quantities.

5.7 Sales strategy

Our products will mainly be sold using personal selling. This will be done by the company sales
force at point of sale for the toilets. The leads will be generated leads from various sources or
activities, for example, through calls, through advertisement, events, list purchase, and referrals
as well as social networking websites including linkedin, twitter and facebook to find market the
new products and services. The sales force will be recruited basing on interest and volunteerism,
given the best training in environmental conservation and compensated using both cash and non
cash.

5.8 Revenue model

The revenue forecast for the next five years of business operations is as shown in the table
below.

DIVINE ECOLOGICAL SANITATION TOILET LIMITED

Sales projections
(Amount in UGX)
Price indicators Year 1 Year 2 Year 3 Year 4 Year 5

Annual price growth rate 5% 10% 15%

Toilet 200 200 210 231 266
Manure 500 500 525 578 664
Volume indicators Year 1 Year 2 Year 3 Year 4 Year 5
Annual volume growth rate 10% 15% 20% 25%
Toilet 92,400 101,640 116,886 140,263 175,329
Manure 7,920 8,712 10,019 12,023 15,028
Annual Sales Year 1 Year 2 Year 3 Year 4 Year 5
Toilet 18,480,000 20,328,000 24,546,060 32,400,799 46,576,149
Manure 3,960,000 4,356,000 5,259,870 6,943,028 9,980,603
Total sales 22,440,000 24,684,000 29,805,930 39,343,828 56,556,752

14
 SECTION SIX

OPERATIONS PLAN

6.0 Introduction
This section covers input factors, production process or service delivery process, Quality control,
Record keeping and procedures and Billing and collection policies and procedures.

6.1 Input factors

The construction and management of public toilet system will require a number of inputs like
raw materials, equipments and premises. This is as described below;
6.1.1 Raw materials and suppliers
6.1.1.1 Construction

Materials Suppliers
Bricks Brick layers and dealers
Iron sheets Hardware shops
Cement Hardware shops
Stones and gravel Dealers
6.1.1.2 Management of toilets

Raw materials Suppliers

Water NWSC Arua Branch, boreholes and springs.
Soap and detergents Local shops
Toilet paper Local shops
Dehydration salt/wood ash Locally made
Chemicals Local shops/locally made

6.1.2 Equipments and suppliers

Equipments Suppliers
toilet pan, wash basin, soap dish, squatting pan, Local hardware shops in Arua, and Hardware
toilet paper holder, tiles and bathroom World Ntinda,
accessories
Containers Crestank Uganda Limited
Jerry cans Local shops, Mukwano industries Kampala
Bricks Local brick dealers
Iron sheets Local hardware shops
Packaging bags for organic manure Locally made paper bags, Mafuco Limited
Heavy duty gloves & gum boots for cleaner Local shops
Premises:
The business will acquire a 30*50 piece of land for the construction of its four-door toilets. The
size of the toilet shall be of minimum dimension of 2.78X1.86m.

15
6.2 Production/service delivery process
Our business provides a product and service and hence will take both production process and
service delivery process.

The service delivery process of our toilet services will be as follows;

When a customer comes to use our toilet, he or she will be required to pay a minimum charge of
shs200 and given a receipt as proof of payment. He or she will also be given a slice of toilet
paper for use and guided on where to go. Persons with disabilities shall also follow the same
process but will be guided and escorted to the places. It will be a must for the clients to keep the
toilets clean after use to be suitable for the next person, and Soap and detergents shall be
provided for people to use after visiting the place of convenience.

For the production of fertilizer and manure, the following process will be followed.

Once the collection chamber is full, the feces and urine will be removed and taken to the
processing plant for treatment.

Feces will be treated using the following methods:

Storage: when excreted feces are stored in the environment at temperatures below or above
human body temperature (37°C) pathogenic micro organisms die off naturally. Storage of faeces
at low moisture content increases the rate of pathogen destruction.

However, helminthes especially the eggs of Ascaris lumbricoides are resistant to unfavorable
conditions. Therefore recommendation for a period between one and a half and two years at
temperatures ranging between 2-20°C and one year at temperatures between 20-35°C.

Composting: this is the microbiological degradation of organic material to humus like stable
product under aerobic, moist and self heating conditions. During this process, a lot of heat is
generated and this is vital in sanitizing the products. For effective decomposition, there is need to
add some organic matter such as kitchen food waste, constant mixing of the decomposing
material.

Incineration: involves the use of heat as a medium of sanitizing the fecal matter. High moisture
content should be avoided in the process to avoid bad smell and heavy smoke. Proper design of

16
the incinerator is needed to ensure that all out going material is exposed to high temperature. At
temperatures between 800 to 1000°C no organism should be in position to survive. The source-
separated feces cannot catch fire when they are wet. When source-separated feces are wetter i.e.
Moisture content (MC)>10%, only gasification takes place, producing charcoal like substances
and a lot of smoke that smells badly.

Chemical treatment: Chemicals for disinfecting feces products that take into account an
additional advantage of the agronomic value of the substances in the disinfectants, such as
calcium hydroxide

(Ca (OH)2), Ammonia (NH3), potassium hydroxide (KOH) and phosphates (PO4), are
preferable - the nutrient content of the disinfectant increases the fertilizing value of the product.
Wood ash and lime are rich in calcium and potassium and that is why it is recommendable to
pour them on feces after using the Ecological Sanitation toilet. Ammonia is also increasingly
being used to treat faeces.

Solar treatment: this method of faecal treatment is commonly used in combination with other
methods like incineration and in preliminary processes of reducing moisture content from faeces
collected in Urine diversion dry toilets.

Once the feces have been dehydrated, they will be packed in paper bags in various kilograms for
sale to the farmers.

Urine on the other hand is treated as shown below;

In large urine collection systems, urine should be sanitized and the easiest way to do that is by
storage. After performing laboratory experiments at various temperatures, it is recommended to
store urine at near room temperature (around 20°C) for not more than

6 months. It was actually discovered that varying temperatures sanitize urine faster than constant
temperature. After the urine is sanitized after a period of 6 months, it is safe for use and it’s
packed in jerry cans for use.

6.3 Quality control

We shall ensure quality in and around our operation areas by ensuring general cleanliness of the
toilets. The toilet keepers will mop, sweep and wash the toilets to ensure they are clean all year
round by assigning tasks to cleaners to clean the facility at least five times a day. They will
encourage every user to maintain the cleanliness for the next user with the phrase ‘’leave it the

17
way you would like to find it’’. Water, Soap and detergents will be given to clients to ensure they
clean themselves after visiting the toilets. The toilets will be closely supervised and monitored,
and constant repair and maintenance shall be offered at least once a month.

The human waste collected (feces and urine) will be treated at room temperature to avoid bad
smell. Wood ash and other organic substances will be mixed with feces to quicken its
decomposition while urine will be treated with chemicals and stored in gazette places away from
the reach of people. Routine issues – collection and application of ash, cleaning of the toilet,
Putting out of use the filled-up faecal vault; and opening the vault to put in use, Emptying of the
urine containers; as well as the faecal vaults, Collection and transport of faeces and urine – either
to storage facilities for additional sanitization or for immediate use

6.4 Record keeping and procedures

The business will acquire simple accounting software for small businesses which will be put in
place to ensure that records are maintained systematically and are up to date and accurate; with
integrity and confidence of clients and suppliers upheld at all times. The bookkeeper will use an
accounting software package such as Quick books Pro or Peachtree to keep track of daily entries
using work orders, Quick books report creator for making financial reports, and various other
accounting functions.

6.5 Billing and collection policies and procedures

The customers will be billed at the point of sale. It’s the policy of the business limited to
accurately manage money coming into the company as a result of sales activity by invoicing all
customers and to keep accurate and timely accounts receivable records. The business’s billing
procedure addresses three tasks in the billing process, which involve collecting the information
needed to construct an invoice, creating invoices, and issuing them to customers. The company
will set up accounts for customers to structure payments and address the question of whether to
issue credit and to whom, collect the money from customers who have made purchases, and
reconcile invoicing and funds received.

18
 SECTION SEVEN

MANAGEMENT PLAN

7.0 Introduction
This section covers the business ownership, management team, organization structure and
reward structure.

7.1 Ownership
The business will be owned by two ptomoters, one of whom is Ms. Prisca Eimani who will be
responsible for general business management that is planning, organizing, controlling and
directing efforts of staff members towards the company’s vision. Do other tasks like Accounting,
managing human resource, Planning sales, negotiating deals, direct sales to buyers, customer
service, managing other sales representatives, tracking competitors, Marketing, advertising, and
outsourcing.

7.2 Top management

The management team comprise of the business owner who is the business manager, an
administrator/custodian, and cleaners/keepers.

Job titles Duties and responsibilities Skills

Business  in charge of management (recruiting,  Passion for
manager hiring, scheduling, payroll, firing and innovation and is the
keeping track of benefits such as brain behind Divine
insurance.), Marketing & Advertising Ecological Sanitation
(writing ad copy, annual market toilet chain.
planning, media planning & buying,  She will be She
market research, distribution channel brings to the business
planning, pricing & packaging.), skills of planning for
Business Planning (monitoring your business, strategy,
progress, preparing financial statements, feasibilities, projects,
expanding business, adding new plans and general
products and adjusting your small business management
business plan.), and knowing about skills.
certain legal aspects related to the

19
 business.
Administrator  In charge of the business portfolio,  Effective
: executing all tasks assigned by the communication and
manager. organization skills
 facilitating efficient operations, often to and the ability to
communicate business status and work with people
activities to upper management or those from different
tasked with decision-making and backgrounds, Critical
company policy, pinpoint new business thinking and
opportunities, a point of contact for negotiation skills in
clients and potential recruits, business transactions
 Expected to serve as an ambassador for and interpersonal
the company and maintain relationships relations.
that lead to successful future
partnerships.
Cleaners  General duties of making sure the  Customer care skills
facility is clean, safe and healthy.  Net working and
interpersonal skills
Accounts  Keeping records of transactions, paying  Numerical skills
assistant State and Federal taxes, financial  Problem solving
reporting, and collections and paying  Financial
bills. management skills


20
7.3 Staff structure/organization chart

Manager

Admistrator

Cleaner Accounts

7.4 Reward structure

The business’s reward structure will comprise of both cash and non cash rewards. Cash rewards:
the permanent employees will earn monthly salaries, paid directly in their respective bank
accounts. The temporary employees will earn wages paid to them basing on the terms and
conditions of work. Non cash rewards: the employees will enjoy a large array of benefits like
social security fund, allowances (overtime, transport, and lunch), trainings, promotions, bonuses,
recognitions for merit, further education in respective areas of the business future, among other
benefits that management deems necessary. Refer to appendix 7 for the reward structure of the
business employees.

Salary rate per month Year 1 Year 2 Year 3 Year 4 Year 5

Annual increase in rate per year 3% 6% 9% 12%

Manager 600,000 618,000 655,080 714,037 799,722
Administrator 350,000 360,500 382,130 416,522 466,504
Driver 200,000 206,000 218,360 238,012 266,574
Cleaner 120,000 123,600 131,016 142,807 159,944
Accounts assiatant 250,000 257,500 272,950 297,516 333,217

21
 SECTION EIGHT

FINANCIAL PLAN

8.0 Introduction
This section covers Investment requirements, Financing plan, financial assumptions and
projections, financial sustainability strategy and Risk and opportunity.

8.1 Investment requirements

The business requires Uganda shs10 million to kick start its operations and provide for the fixed
capital requirements/fixed assets, pre-operating expenses and working capital.

8.2 Financing plan

The initial capital investment mentioned above will be financed using own savings and
contribution from friends and family.

8.4 Financial assumptions and projections

The company has estimated a number of assumptions and projections. Refer to appendix 3 for
more on this.

8.4.1 Financial assumptions

Capital expenditures: the company will acquire a number of fixed assets for its operations
including among others machines, tools, and equipment. See appendix 4 for more details.

Funding: the business will solicit its funds from equity sources. See appendix 4 for more on such
sources of funds.

Revenue forecasts: The revenue forecasts for the business will consider 264 working days,
service target of 2000 toilet users per day. This is shown in appendix 5.

Depreciation plan: with the assets above, we intend to follow straight line depreciation policy
and depreciation rates as follows; 15% for the building, 20% for machinery and equipment, 20%
for motor vehicle, 12% for furniture, and 25% for computers. See appendix 6 for more details.

Salary: very attractive Salary projections have been designed to not only attract but also retain
quality human resources. See appendix 7.

22
Expenditure: the company has extracted a list of other expenditures (indirect costs of materials,
labor, and so on). See appendix8.

Working capital: the company’s extracts of inventory, accounts receivable, and accounts payable
have also been shown in appendix 9

8.4.2 Financial projections

Income statement: Our projections show a surplus for the next five years of business operation.
See appendix 10.

Cash flow: The Company’s cash balances (cash at hand) are sound and promising. See appendix
11 for more information.

Balance sheet: The projections show an annual financial strength of the company, which
stretches throughout the five years and beyond. See appendix 12 for more details.

Break-even analysis: The businesses will break-even in the fourth month of operation. See
appendix 13.

8.4 Financial sustainability strategy

Setting revenue target: the business will set itself to generate at least shs400, 000 per day on its
services. This will enable it to take care of its expenses and remain with substantial amounts of
profits.

Reinvesting profits: the profits that will be accumulated will be reinvested in the business to
expand branches, add units, repair and maintain the equipments, or even replace the worn out
equipments.

Expansion to diversify income: the business will diversify its sources of income by introducing
activities like making fertilizer and manure from the human excreta. This is expected to generate
a lot of money which can enable the business to survive for long.

Events: the business will organize events like community cleanups, charity runs, donation drives,
etc which will attract sponsors. This can enable the business to earn some money.

23
 Request for subsidies from government: since we are helping to implement government
programme of sustainable access to proper and hygienic sanitation, we stand a chance of getting
donations and subsidies like tax holidays, grants, and soft loans from the government and
nongovernmental organizations.

8.5 Risk and opportunity

Any business is susceptible to a number of risks and Divine ecological sanitation toilet is no
exception. In addition there may be various opportunities that may excel the ability to achieve
the business goals and objectives. The table below shows a matrix which represents the potential
risks that may affect the business as well as the opportunities which may work in favor of the
business.

8.5.1 Risk and opportunity matrix

Risk/opportunity Potential Prevention/capitalizing
impact
Risks
 Poor cultural beliefs against ecological Extreme  We shall demonstrate to these
sanitation toilets. Faeces in all cultures are believers that we are the new
regarded as disgusting and to many people, the revolution something the
thought of using it for food production is world has been waiting for.
repulsive. Tell them about the need tp
 In addition, many cultures have strongly-held recycle waste to have a
beliefs and taboos regarding faeces that make sustainable environment.
ecological sanitation unworkable. This
avoidance instinct has self preservation at its
heart as faeces contain many pathogens that are
harmful to man if ingested.
 People generally prefer toilets where faeces  We shall provide technology
cannot be seen and where no further handling where toilet users do not have
by the users is required. With a water closet the access and cannot see the
only necessary further user action is the pulling feces.
of a handle; out of sight out of mind.
 With eco-sanitation there is always some form
of secondary handling of the faeces and user
reluctance to do this could be high.
 Even if an individual is willing to adopt eco-
sanitation, they may be put off from doing so by
the fear of being ridiculed by the rest of the
community.

24
  Culturally the use of Advisors ecological High  We shall sensitize the people
sanitation toilet technology is limited. Service on the use of ecological
providers in slum areas still find it difficult to sanitation toilets, its impact
manage eco san toilets at the community level, on the environment and the
where handling of excreta is seen as offensive need to adopt its use
and inconsistent with the cultural norms and
social values of most people residing in the
slum areas of Arua
 Urban laws prohibit the movement and use of High  We shall have gazette areas
urine and faeces for fear of epidemics such as for treatment of waste. We
cholera dysentery and other sanitation related shall also use protective gears
ailments. like gum boots and gloves to
avoid contact with feces and
urine
 The cost of setting up an ecological sanitation High  We shall look for cheap but
facility is high and ranges from Ugshs quality materials to construct
1.5million to Ugshs 3million depending on the permanent toilet facilities
materials used and the technicians undertaking
this task.
 Failing to reach sales expectations due to Low  Reduce charges on our offers
competition or changes in tastes and to increase sales.
preferences of clients, among others.
 Unforeseen costs in research and development Low  Use cheap and affordable
research means like using the
internet and experts/advisors.
Opportunities
 Many Governments and agencies in Africa are High  Expose ourselves and our
exploring the role of Ecological activities to the government
Sanitation (ecosan), within their current and other nongovernmental
programmes for improving household organizations that are trying
environmental sanitation and hygiene.  There to promote the use of
are strong convincing environmental and ecological sanitation for
economic reasons for promoting ecological support.
sanitation in the developing world
 As technical and socio-economic conditions Extreme  Apply and encourage the use
vary from area to area, (shortage of land, of ecological sanitation
different geological landscapes, ever growing technology to solve
school enrolment), it has been recognised that environmental problems
there is need for promotion of other design for which has been previously
excreta disposal, and not only the conventional caused by use of the
pit latrine.  In addition, conventional pit latrines conventional toilets.
cause problems of ground water pollution thus
threatening drinking water supply.  Ecological
sanitation has been identified as one of the
solutions to many of the above problems. 

25
 SECTION NINE

DEVELOPMENT PLAN

9.0 Introduction
This section covers the implementation plan and the time frame (Gantt chart).

9.1 The implementation plan

Using a work breakdown structure, the action plan for the implementation of the business
activities is shown in the table below;

Divinepreneurs ecological sanitation toilets’ implementation plan

WORK BREAKDOWN STRUCTURE

Activity Duration Person responsible
Feasibility study and business plan 2 months Director
Land acquisition and development 1 month Director
Construction of ecological sanitation toilets 1 month Outsourced engineer
Installation of equipments like containing 1 month Outsourced engineer
chambers, hand washing points, etc.
Registration of the business 1 month Director
Recruiting workers 1 month Director
Training recruited workers 1 month Director & advisor
Buying all supplies for example soap, detergents, 2 months Production assistants
toilet papers, etc
Launch of the business 1 month Production manager
Production & marketing of fertilizer & organic 1 month Production manager, director and
manure. marketing manager

9.2 The Gantt chart

DIVINE ECOLOGICAL SANITATION TOILET’S GANTT CHART
ACTIVITY MILESTONES
Feasibility study & business
plan
Land acquisition and

26
development
Construction of ecological
sanitation toilets
Installation of equipments
like containing chambers,
hand washing points, etc.
Registration of the business
& acquisition of business
license
Buying all supplies for
example soap, detergents,
toilet papers, etc
Recruiting workers
Training recruited workers
Launch of the business
Production & marketing of
fertilizer & organic manure.
More publicity (talk shows,
events, media, etc)
APR MA JUN JU AUG SE OCT NO DE JA FE
IL Y E LY UST PT OBE VE CE N BR
MONTHS (2014/15) EM R MB MB U UA
BE ER ER A RY
R R
Y

APPENDICES

APPENDIX 1: PROBLEM SITUATION

(Poor state of toilets in Arua City Suburbs)

27
28
APPENDIX 2: SOLUTION (ECOLOGICAL SANITATION)

29
Appendix 3: Financial Assumptions
DIVINE ECOLOGICAL SANITATION TOILET LIMITED
Financial Assumptions

Note 1
Number of operational days in a year 264
Number of months in a year 12
Corporation Tax 30%
Discount Factor 30%

Note 2 Capacity indicators

Capacity (Volume in units) per day/week, etc
Toilet 350
Manure 30

Note 3 Depreciation policy

Buildings 15.0% sln
Machinery & Equipment 20% sln
Motor Vehicles 20% sln
Furniture, Fixtures 12% sln
Computers 25% sln

Note 4 Working capital requirements

Inventory purchases 0 days
Debtors - 1 months' revenue 1 month
Creditors 1 month's expenses (Excluding salaries) 1 month

Note 5 Cost indicators % of revenue

Power & lighting 1.20%
Water 2.50%
Airtime, telephone bills 2.30%
Transportation 3.00%
Admin Expenses 4.00%
Business Promotion (advertising, etc) 1.80%
Maintenance & Repairs 3.70%
Cleaning 2.00%

Note 6 Financing
Personal savings 70.00%
Friends & family 20.00%
Underutilized assets 10.00%
Total 100%

30
Appendix 4: Initial Investment Cost
DIVINE ECOLOGICAL SANITATION TOILET LIMITED
Initial Investment (start up costs)
(Amount in UGX)
Investment Item Amount
Fixed Assets: Year 0
Land & Building (underutilised)
Land & site development 500,000
Total Land & building 500,000
Machinery & Equipment:
Equipment (toilet hardware, etc) 5,000,000
Total Machinery & Equipment 5,000,000
Motor Vehicles:
Truck 7,000,000
Total Motor Vehicles 7,000,000
Furniture & Fittings (donated)
Furniture & fittings 500,000
Total Furniture, fittings & others 500,000
Computers (donated) 500,000 500,000
Pre- Operating Expenses
Plant layout 2,000,000
Legal costs 500,000
General expenses 500,000
Total pre- operating expenses 3,000,000
Working Capital 3,500,000

Total Investment cost 20,000,000

Financing structure
Personal savings 70.00% 14,000,000
Friends & family 20.00% 4,000,000
Underutilised assets 10.00% 2,000,000
Total 100.00% 20,000,000

31
Appendix 5: sales projections
DIVINE ECOLOGICAL SANITATION TOILET LIMITED
Sales projections
(Amount in UGX)

Price indicators Year 1 Year 2 Year 3 Year 4 Year 5

Annual price growth rate 5% 10% 15%

Toilet 200 200 210 231 266
Manure 500 500 525 578 664

Volume indicators Year 1 Year 2 Year 3 Year 4 Year 5

Annual volume growth rate 10% 15% 20% 25%

Toilet 92,400 101,640 116,886 140,263 175,329
Manure 7,920 8,712 10,019 12,023 15,028
Annual Sales Year 1 Year 2 Year 3 Year 4 Year 5
Toilet 18,480,000 20,328,000 24,546,060 32,400,799 46,576,149
Manure 3,960,000 4,356,000 5,259,870 6,943,028 9,980,603

Total sales 22,440,000 24,684,000 29,805,930 39,343,828 56,556,752

32
Appendix 6: depreciation schedule
DIVINE ECOLOGICA SANITATION TOILET LIMITED
Depreciation schedule
(Amount in UGX)
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Building
Opening cost 500,000 500,000 500,000 500,000 500,000 500,000
Additions -
Depreciation 15%
Net Book Value 500,000 500,000 500,000 500,000 500,000 500,000
MACHINERY AND EQUIPMENT
Opening cost 5,000,000 5,000,000 5,000,000 8,000,000 11,000,000 14,000,000
Additions 3,000,000 3,000,000 3,000,000 3,000,000
Depreciation 20% 1,000,000 1,600,000 2,200,000 2,800,000 3,400,000
Accumulated Depreciation 1,000,000 2,600,000 4,800,000 7,600,000 11,000,000
Net Book Value 5,000,000 4,000,000 5,400,000 6,200,000 6,400,000 6,000,000
MOTOR VEHICLES
Opening cost 7,000,000 7,000,000 7,000,000 12,000,000 12,000,000 12,000,000
Additions 5,000,000
Depreciation 20% 1,400,000 2,400,000 2,400,000 2,400,000 2,400,000
Accumulated Depreciation 1,400,000 3,800,000 6,200,000 8,600,000 11,000,000
Net Book Value 7,000,000 5,600,000 8,200,000 5,800,000 3,400,000 1,000,000
FURNITURE
Opening cost 500,000 500,000 500,000 600,000 700,000 800,000
Additions 100,000 100,000 100,000 100,000
Depreciation 12% 60,000 72,000 84,000 96,000 108,000
Accumulated Depreciation
Net Book Value 500,000 500,000 600,000 700,000 800,000 900,000
Computers
Opening cost 500,000 500,000 500,000 500,000 1,500,000 1,500,000
Additions 1,000,000
Depreciation 25% 125,000 125,000 375,000 375,000 375,000
Accumulated Depreciation 125,000 250,000 625,000 1,000,000 1,375,000
Net Book Value 500,000 375,000 250,000 875,000 500,000 125,000
TOTALs
Opening cost 13,500,000 13,500,000 13,500,000 21,600,000 25,700,000 28,800,000
Total Additions - - 8,100,000 4,100,000 3,100,000 3,100,000
Total Depreciation - 2,585,000 4,197,000 5,059,000 5,671,000 6,283,000
Total Accumulated Depr - 2,525,000 6,650,000 11,625,000 17,200,000 23,375,000
Total Net Book Value 13,500,000 10,975,000 14,950,000 14,075,000 11,600,000 8,525,000

33
Appendix 7: salaries projections
DIVINE ECOLOGICAL SANITATION TOILET LIMITED
Salaries projections
(Amount in UGX)
Number of staff Year 1 Year 2 Year 3 Year 4 Year 5
Category
Manager 1 1 1 1 1
Administrator 1 1 1 1 1
Driver 1 1 1 1 1
Cleaner 2 3 4 5 6
Accounts assiatant 1 1 1 1 1
Sales representative 2 2 2 2 2
8 9 10 11 12
Salary rate per month Year 1 Year 2 Year 3 Year 4 Year 5

Annual increase in rate per year 3% 6% 9% 12%

Manager 600,000 618,000 655,080 714,037 799,722
Administrator 350,000 360,500 382,130 416,522 466,504
Driver 200,000 206,000 218,360 238,012 266,574
Cleaner 120,000 123,600 131,016 142,807 159,944
Accounts assiatant 250,000 257,500 272,950 297,516 333,217
Annual salary amount

Manager 7,200,000 7,416,000 7,860,960 8,568,446 9,596,660

Administrator 4,200,000 4,326,000 4,585,560 4,998,260 5,598,052
Driver 2,400,000 2,472,000 2,620,320 2,856,149 3,198,887
Cleaner 1,440,000 1,483,200 1,572,192 1,713,689 1,919,332
Accounts assiatant 6,000,000 9,270,000 13,101,600 17,850,930 23,991,650
Total annual salary 13,800,000 14,214,000 15,066,840 16,422,856 18,393,598

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Appendix 8: expenditure model
DIVINE ECOLOGICAL SANITATION TOILET LIMITED
General Expenditure projections
(Amount in UGX)

% of sales
General expenses revenue Year 1 Year 2 Year 3 Year 4 Year 5
Power & lighting 1.20% 269,280 296,208 357,671 472,126 678,681
Water 2.50% 561,000 617,100 745,148 983,596 1,413,919
Airtime, telephone bills 2.30% 516,120 567,732 685,536 904,908 1,300,805
Transportation 3.00% 673,200 740,520 894,178 1,180,315 1,696,703
Admin Expenses 4.00% 897,600 987,360 1,192,237 1,573,753 2,262,270
Business Promotion (advertising, etc) 1.80% 403,920 444,312 536,507 708,189 1,018,022
Maintenance & Repairs 3.70% 830,280 913,308 1,102,819 1,455,722 2,092,600
Cleaning 2.00% 448,800 493,680 596,119 786,877 1,131,135
Total General expenses 4,600,200 5,060,220 6,110,216 8,065,485 11,594,134

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Appendix 9: working capital schedule
DIVINE ECOLOGICAL SANITATION TOILET LIMITED
Working capital schedule
(Amount in UGX)

Working capital requirements Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Inventory 15,000,000 20,000,000 27,000,000 37,000,000 50,000,000
Debtors - 1 months' revenue 1,870,000 2,057,000 2,483,828 3,278,652 4,713,063
Creditors 1 month's expenses (Excluding salaries) 4,600,200 5,060,220 6,110,216 8,065,485 11,594,134
Net Working Capital 3,500,000 12,269,800 16,996,780 23,373,612 32,213,168 43,118,928

Incremental Working Capital 3,500,000 8,769,800 4,726,980 6,376,832 8,839,556 10,905,761

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Appendix 10: income and expenditure account
DIVINE ECOLOGICAL SANITATION TOILET LIMITED
Income and Expenditure Account
(Amount in UGX)
Year 1 Year 2 Year 3 Year 4 Year 5
INCOME
Total Sales 22,440,000 24,684,000 29,805,930 39,343,828 56,556,752

Less: EXPENDITURE
Salaries 13,800,000 14,214,000 15,066,840 16,422,856 18,393,598
Depreciation 2,585,000 4,197,000 5,059,000 5,671,000 6,283,000
General expenses 4,600,200 5,060,220 6,110,216 8,065,485 11,594,134

Net profit before interest and tax 1,454,800 1,212,780 3,569,847 9,184,488 20,286,020
Net profit before tax 1,454,800 1,212,780 3,569,847 9,184,488 20,286,020
less: tax 30% 436,440 363,834 1,070,954 2,755,346 6,085,806
Net profit (loss) after tax 1,018,360 848,946 2,498,893 6,429,142 14,200,214
Retained earnings 1,018,360 1,867,306 4,366,199 10,795,341 24,995,555

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Appendix 11: cash flow statement
DIVINE ECOLOGICAL SANITATION TOILET LIMITED
Cashflow statement
(Amount in UGX)
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Cash Inflows
Opening cash balance (6,000,000) 3,070,000 17,966,800 35,285,683 57,724,470
Personal savings 14,000,000
Friends & family 4,000,000
Underutilized assets 1,000,000
Sales 22,440,000 24,684,000 29,805,930 39,343,828 56,556,752
Total Inflows 19,000,000 16,440,000 27,754,000 47,772,730 74,629,510 114,281,222
Cash Outflows
Pre-operating Expenses
3,000,000
Capital Expenses 18,500,000
Working Capital 3,500,000 8,769,800 4,726,980 6,376,832 8,839,556 10,905,761
Operating expenses 4,600,200 5,060,220 6,110,216 8,065,485 11,594,134
Total Outflows 25,000,000 13,370,000 9,787,200 12,487,048 16,905,040 22,499,895

Closing cash balance (6,000,000) 3,070,000 17,966,800 35,285,683 57,724,470 91,781,327

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Appendix 12: balance sheet
DIVINE ECOLOGICAL SANITATION TOILET LIMITED
Balance sheet
(Amount in UGX)
Year 1 Year 2 Year 3 Year 4 Year 5
ASSETS:
Non current assets
Net non current assets 10,975,000 14,950,000 14,075,000 11,600,000 8,525,000
Current assets
Inventory 15,000,000 20,000,000 27,000,000 37,000,000 50,000,000
Debtors 1,870,000 2,057,000 2,483,828 3,278,652 4,713,063
Cash 3,070,000 17,966,800 35,285,683 57,724,470 91,781,327
Total current assets 19,940,000 40,023,800 64,769,510 98,003,122 146,494,389

Total Assets 30,915,000 54,973,800 78,844,510 109,603,122 155,019,389

Equity and Liabilities
Equity & reserves
Capital 20,000,000 20,000,000 20,000,000 20,000,000 20,000,000
Retained Reserves 1,018,360 1,867,306 4,366,199 10,795,341 24,995,555
Owners Equity 21,018,360 21,867,306 24,366,199 30,795,341 44,995,555
Current Liabilties
Accruals 52,297,460 117,339,638 183,606,076 258,905,858 350,231,028
Creditors 4,600,200 5,060,220 6,110,216 8,065,485 11,594,134
Total current liabilities 56,897,660 122,399,858 189,716,292 266,971,343 361,825,162

Total Equity & Liabilities 77,916,020 144,267,164 214,082,491 297,766,683 406,820,717

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Appendix 13: Net present value
DIVINE ECOLOGICAL SANITATION TOILET LIMITED
Net Present Value computation

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Cashflows
Initial Investment 20,000,000
Net Cashflows 3,070,000 17,966,800 35,285,683 57,724,470 91,781,327
20,000,000 3,070,000 17,966,800 35,285,683 57,724,470 91,781,327
Discount factor 30% 1.000 0.769 0.592 0.455 0.350 0.269
Present Value 20,000,000 2,361,538 10,631,243 16,060,848 20,210,941 24,719,380

NPV 93,983,950
IRR 90%

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