MUSH CITY ENTERPRISES

NAME: WAFULA WANYONYI SIMON

SUPERVISOR: MADAM ESTHER MULI

INSTITUTION: LUKENYA TRAINING INSTITUTE

A BUSINESS PLAN PRESENTED TO THE KENYA NATIONAL EXAMINATION

COUNCIL FOR THE AWARD OF A DIPLOMA IN GENERAL AGRICULTURE

DATE OF SUBMISSION
DECLARATION
I Wafula Wanyonyi do declare that the research done is the work of my hands and it has not been
presented to any other institution.

Wafula WanyonyiSign ……………….Date ……………

I declare that I have received and approved the compiled business plan for the above named
student as the Institute business plan supervisor.

Signature....................... Date......................
DEDICATION

I would love to dedicate this work to my great nation of Kenya and to the whole world at large, it
has been a great entrepreneurial journey with the aim to help curb food security and with the
knowledge gained in my research I definitely hope that the youths in our nation will step up to
the task to ensure a brighter future with less worry about food security in our great nations. A
special dedication to my parents Mr. & Mrs. Wanyonyi who have been walking with me
throughout this journey encouraging and inspiring me, I do pray that the Almighty grant you
success in all your endeveours.
ACKNOWLEDGEMENT

Best of regards to my very own capable institution Lukenya Training Institute for the great
journey and the help I have been rendered by this awesome community. I would like to
acknowledge my lecturer madam Ester Muli who has highly contributed to the success of my
research through moral and material support in my research. A special gratitude to my fellow
course mates and students who have been an encouragement to me who were willing to go any
further step to see the success of my project, they are a fighting nation as everyone is supportive
to ensure that the next generations will learn from us as we help curb food insecurity in our great
nation. I trust and hope that they are going to make out good leaders of tomorrow through their
willingness to see progress and success would love to acknowledge the Almighty for being there
with us during all time as we see through this hard times but still gave us breath and life to fulfill
the work and gain knowledge to be of a greater help in the near future. I pray that our dear
Almighty may grant Lukenya fraternity a long life and prosperity be part of our community.

EXECUTIVE SUMMARY

This business plan outlines the planned launch of Mush City enterprise. The enterprise
recognizes the necessity for capital planning and calculation of cash flow required for the success
of the enterprise. The business plan details the financial plan for the venture which requires
ksh.800, 000 in startup funding. The owners will contribute ksh.375, 000 of their personal
savings as paid-in capital and ksh.425, 000 will be secured as convectional loan from friends and
family to complete the start-up financing requirement. The startup funds will be utilized to pay
for; leaseholds, administrative cost, supplies, advertising, inventory and labor for the first eight
months. The enterprise capitalizes on the low mushroom production in Kenya producing 500
tons a year against the demand of 1200 tons therefore making buyers import from outer markets
to meet the expected demand. The enterprise is positioned at the outskirts of Bungoma town as a
high value enterprise offering best of nutritive mushroom in the region and the country at large.
The enterprise caters for wholesales, retails, supermarkets minishops and families The enterprise
will run and operated under the name Mush City enterprise as a sole business which will later
allow for partnership
 CHAPTER 1

BUSINESS DESCRITPTION
1.1 Business name
The enterprise will operate under the name Mush City enterprise. Mush is derived from the word
“mush room” and hence the name. This is to help in market attraction of our product as we
market the products.

1.2 Business location

Mush city will run all of activities from Bungoma as the headquarters of operation. Bungoma has
been selected as the best place considering the available factors of mushroom production.
Considering the favorable weather conditions that support mushroom production in the area
.Mushroom grows well in areas with temperature range of 20-30 degrees Celsius with at least
80% of humidity. With an approximate population of 1.671 million residents of Bungoma and
those who are mushroom lovers Mush city will be aiming to produce mushroom that will satisfy
this great population which will be a great market to start and work with while awaiting for
expansion. .The choice for this location followed the consideration of different factors

Water availability

Fertile red volcanic soils in the area

Good transport and communication network

Increase in demand

Favorable climatic conditions

1.3 products and services
Because the demand for mushrooms is increasing as more people are recognizing its importance,
we have carefully chosen our channels of distribution that would ensure that our mushrooms
reach all our existing customers and open opportunities to reaching potential customers. Some of
the products we intend to engage in are;

1. Shiitake, oysters, medicinal relish, lion’s mane, wood ear, enoki and mistake

2. Processed mushrooms (dried, canned, frozen)

3. Offer consultancy and advisory services

4. Sell eBooks for intending new farmers

Mushrooms are widely known for their great taste and amazing health benefits. Packed with a
ton of essential vitamins and minerals, they make for an excellent addition to your diet, adding
flavor to many different recipes. Choline is another antioxidant in mushrooms. Some studies
Trusted Source have suggested that consuming choline can reduce the risk of some types of
cancer, but at least one other study Trusted Source has indicated that it may increase the risk
of prostate cancer.

1.3 Business address

The business operates under the name Mush City Enterprise, the postal address which is crucial
in order placement and advertisements is P.O.BOX 210-227 Bungoma. The email
mushciy021@gmail.com is used in various forms of communication. The customers reaches out
the business owner through +254748736437 for quarries and order placements .The business
also has an active website through which the information , products and services can be found at
any time globally. This is www.mushcity.co.ke.
1.4 Justification

Mush city Enterprise is a strategically located business. .Bungoma town serves as a center for
different villages and therefore the location of the business will be of great benefit to the people.
1.4.1 Health Benefits

Mushrooms are a low-calorie food that packs a nutritional punch. Loaded with many health-boosting
vitamins, minerals, and antioxidants, they’ve long been recognized as an important part of any diet.
For instance, mushrooms raised with exposure to ultraviolet light are a good source of Vitamin D, an
important component in bone and immune health. 

1.4.2 Lower Blood Pressure

Mushrooms are rich sources of potassium, a nutrient known for reducing the negative impact that
sodium can have on your body. Potassium also lessens the tension in blood vessels, potentially
helping to lower blood pressure. 

1.4.3. Weight Loss

Long and short-term studies alike have found that mushrooms, in combination with exercise and
other lifestyle changes, can have an important impact on weight loss. For example, after being asked
to substitute 20 percent of their beef consumption with mushrooms, research participants showed
improvements in their BMI and belly circumference.

1.4.4. Cancer

The antioxidant content in mushrooms may help prevent lung, prostate, breast, and other types
of cancer, according to the National Cancer Institute.

Some sources have suggested that selenium may help prevent cancer, but a Cochrane review,
from 2017, found no evidence to confirm this.
Mushrooms also contain a small amount of vitamin D. There is some evidence Trusted
Source that vitamin D supplementation may help prevent or treat some kinds of cancer, though
according to a 2018 report, the effect may vary from person to person.

Choline is another antioxidant in mushrooms. Some studies Trusted Source have suggested that

consuming choline can reduce the risk of some types of cancer, but at least one other study
Trusted Source has indicated that it may increase the risk of prostate cancer.

It is worth noting that consuming a nutrient as a supplement is not the same as consuming it in
the diet.

1.4.5. Diabetes

Dietary fiber may help manage a number of health conditions, including type 2 diabetes.

A 2018 review Trusted Source of meta-analyses concluded that people who eat a lot of fiber may
have a lower risk of developing type 2 diabetes. For those who already have it, fiber may help
reduce blood glucose levels.

A cup of sliced, raw mushrooms, weighing 70 grams Trusted Source (g), provides almost 1 g of
fiber.

The Dietary Guidelines for Americans recommend that adults consume 22.4–33.6 g of dietary

fiber each day, depending on sex and age.

Mushrooms, beans, some vegetables, brown rice, and whole-grain foods can all contribute to a
person’s daily requirement of fiber.
1.4.6. Women health

Good health is important to all of us but maintaining health is not the same for everyone. Women
have unique and specific needs which vary at different stages of their lives. It is an excellent addition
to the diet of women who want to achieve and maintain their body weight.
CHAPTER 2

PRODUCTION AND MARKETING PLAN

2.1 PRODUCTION PLAN

Global competition for manufacturers is intense thanks to cheap offshore competition and the
economic recession. In these tough economic times, we need a marketing plan that actually
works. To gain a competitive edge, we need detailed planning that covers the right strategy and
tactics. This will ensure Mush city enterprise rise and stay high in the game with enough
planning. In this modern day, an effective marketing plan involves a digital marketing strategy
designed to increase leads and brand awareness. The reality today is that the majority of
perception-forming and decision-making by prospects is happening online. With the rise in covid
19 which affected almost all sectors of production, mush city will venture into online marketing
so as to access global market thanks to the power of internet.

Mush city will lease land at least 1 acre for the start considering the fact that mushroom does not
require a lot of space for production as it is done indoors. This piece of land will hold all of the
enterprise assets from offices, machineries and production zone.
CHAPTER 3

3.0 ORGANIZATIONAL PLAN

3.1 Introduction

Having a business structure is important as it will help the business follow the vision which it has
determined for itself. With a great vision of becoming a brand leader in the industry in East and
central Africa, will have to perfect the plans that will ensure that we get it right by employing
only the best and competent personnel to work with our firm to enable us attain the goals and
objectives set for ourselves. Asides the fact that we intend to sell our mushrooms fresh and
processed, there are other services that we would be offering as well to boost our earning and so
these services will need competent hands to ensure that all our operation run smoothly at mush
city.

3.2 Responsibilities and qualifications

3.2.1 Business Manager

Responsibilities.

Overall direction of the company

Network with other mushroom business and high powered clients on behalf of the company

Qualifications

Bachelor’s in Agribusiness from a recognized institution.

Fluency in English both speaking and writing

Leadership skills

Should be faithful

3.2.2 Mushroom farm manager

Growing mushrooms

Scouting daily to check for defects

Harvesting

Qualifications
Diploma/Certificate in general agriculture or similar field

Responsible and with good leadership traits

Clean

Fluent in both English and Kiswahili

3.2.3 Purchasing manager

Purchasing raw materials needed

Sources reliable vendors and distribution

Keep accurate database of all purchases and vendors.

Qualifications

Certificate/diploma in procurement and supply chain management from a recognized institution.

Fluent in speaking and writing English and Kiswahili

3.2.4 Administrative manager

Ensure employees have great welfare packages and better working environment

Assigns and delicate tasks to employees and ensure they are carried out accordingly

Qualifications

Diploma in Business management

Good English and Kiswahili in both speaking and writing.

3.2.5 Sales and marketing team

Drafting marketing strategies and policies that will bring in sales for the company.

Research on target markets so as to identify new, market opportunities for the company
Qualifications

Certificate/diploma in business management or relevant field

Good communication skills

3.2.6 Store manager

Ensure cleanliness in the stores and ventilation

Checks level of inventory so as to know when to replenish stock

Keep record

Qualifications

Kenyan national

Form four leaver with a certificate

National identification card

3.2.7 Front desk manager

Picking up customers call and taking down orders

Keeping accurate database of customers for future profiling purposes

Qualification

Fluent in both speaking and writing in English and Kiswahili

Form four leaving certificate

Clean and well groomed

3.2.8 Cashier

Accurate financial record carried out by the business

Qualification

B.Sc. Business commerce Finance

Good communication skills

3.2.9 Delivery driver

Deliver mushrooms to various accurate destinations using reliable roots

Carry out light repair on delivery vehicles and regular maintenance

Qualification

Citizen by birth

National identification card

Driver’s license

3.2. Cleaner

Ensure the firm and the entire premises are kept clean all the times

Ensure cleaning supplies are always in stock

Qualification

National identification card

3.3 organizational chart

Business manager

Purchasing Mushroom farm

Accountant/cashier
manager manager

sales and marketing Administrative

Delivery driver Store manager
team manager

Cleaner Front desk officer

3.4 Recruitment

Hiring of professionals in mush city will ensure effective competition in the industry so as to
build the perfect busines structure.Growing our mushrooms in a clean and condusive
environment is one of our goals,growing organically as we intent to ensure that our mushroom
pack a high dose of nutrirtion. The owner of the business will advertise the job position through
posters all over the area. The advertisement will describe the job offered in every position and
qualification needed to fill the position. The interested people will be required to write
application letter stating their qualification, experience and also attach copies of the national
identity cards and their academic certificates.

3.5 Training and work shop

Training is done to make sure the employees gain some knowledge on the expected given work.
Training will be conducted once they join the work as part of orientation and thereafter will be
offered constant training to keep them updated to the changing technology. Training will
motivate employees who will work hard to so as to achieve the objective of the business.
Training will be offered through summary and discussion, also speakers and experts in particular
areas shall be invited to train the employees this helps to improve efficiency of the worker,
enhance efficiency for the business hence best performance and better-quality production
produced.
3.6Remunaration

Basic Allowances Total

salary salaries
Business manager 29,000.00 9,000 38,000
Mushroom farm manager 18,500.00 6,000 24,500
Purchasing manager 19,000.00 6,000 25,000
Administartive manager 15,500.00 9,000 24,500
Sales and marketing team 10,500.00 4,500 15,000
Store manager 10,450.00 2,500 10,950
Front desk officer 10,000.00 1,500 11,000
Account 19,750.00 8,000 27,750
Delivery driver 18,450.00 7,500 25,950
Cleaner 7,870.00 2,000 9,870
159,020 54,500 213,520
3.7 Incentives

This is the means of encouraging employees and increasing efficiently which make them to work
hard in their specialized areas in the business-like allowance and giving free mushroom to each
worker each weekend to promote the worker’s morale.
Other incentives include
1. Business activities shall not be done on Sunday and holidays
2. Leave will be given once a year to break monetary and give rest.
3. Good salary and safety issues
4. Employees will be paid even on their leave
5. Health insuarance cover for injuries within the firm during working hours
3.8 LEGAL REQUIREMENTS

The business will require licenses to operate. It will be obtained at Bungoma county council
licensing office in Bungoma civil servant offices. Opposite to the county Bungoma prison. The
business will be registered at county council office. After registration the business will get
license@10,500 and will be renewed on a year basis. The business will require health permit for
safe consumption of vegetables to the customers.
The business by-laws will be the following.
1. Treating customers with loyalty
2. Selling product at the market price.
3. Install alarms for security against theft
4. Better communication when selling the products.
CHAPTER 4
4.1 OPERATION PLAN AND PRODUCTION PLAN
Mushroom are edible fungi that can grow on decaying matter known as substrate, they do not
require sunlight to grow. They start very small spawns which grow in the substrate to produce a
fine white fibrous structure called mycelium from which mushroom fruit is produced.

During fruiting, different humidity level ranging from 80-95%are needed at the early mid and
later stage. Being aerobic fungi, mushrooms need fresh air during growing but ventilation is
more required for reproductive stage.

Proficient use of internet to intensify awareness about our business products and services we
offer are part of sustainable practices. We intent to sell and grow all kinds of mushroom that is
being consumed worldwide. Mush city is an establishment that will ensure all our mushrooms
are sold via our different outlets and even directly from our farm.

We intend to expand our market after a while of operation by expanding our market area radius
and strengthen the demand; popularize mushrooms by creating awareness in new areas and use
of mass media.

In mush city we will create a conducive environment for our workers and also provide welfare
packages that are aimed at ensuring that workers productivity rate is increased with the increased
demand in mushroom consumption, we will carefully choose our channels of distribution and
that will ensure that our mushrooms reach all our existing customers and open opportunities to
reaching potential customers. With excellent production and selling of organic mushrooms,
excellent customer care which will lead to high retention rate and hence a healthy bottom line for
our business.
Mushroom farming consists of 6 steps which is to identify what is needed to form a production
system. The steps are

1. Phase 1 composting
2. Phase 2 composting
3. Spawning
4. Casing
5. Pinning
6. cropping

Materials;

wheat straw,

bedded horse manure,

synthetic compost made from hay and wheat straw

Addition of nitrogen supplements

Compost provides nutrients for mushroom to grow. It is placed on concrete floor/tunnels and
aerated by the forced passage of air via plenum zone.

Adequate moisture, oxygen, nitrogen, carbohydrate throughout water and supplements are added
periodically.

Phase 2 Finishing compost

Pasteurization is necessary to kill insects, nematodes, pest &fungi.

Importance;
 1. removes unwanted ammonia temp range 125-130 degrees Celsius is efficient since
deammonifying bacteria grow well in this range
2. To remove any present pests in the compost by use of a pasteurization sequence. At the
end the temperature should lower to 75-80 degrees before planting.
Nitrogen content 2.0-2.4 %
Moisture content 68-72%

Spawning

Mycelium (thin thread like cells) can be propagated vegetatively from germinated spores
allowing spawn makers to multiply.

CHAPTER 5
5.0 FINANCIAL PLAN
Starting from scratch the initial investment will be an estimate of 800,000 Kenyan shillings. This
will include the running cost for the next four months of active operation. The owner will
contribute a total sum of 495,000 Kenyan shilling for startup capital, 305,000 Kenyan shilling
will be raised from conventional loan from friends and family.

The funds will be used in purchasing of different tools and construction of the firm for operation
and management. Mush city will lease land where will build the structures where we shall run
our operations. Construction of mud houses will require ksh. 100,000 labor being a main source
of production will be satisfactory for the start where mush city will allocate ksh. 200,000. In case
where second hand items can be applied then will be purchased to ensure control usage of funds.
Ksh. 300,000 will be put in purchase of arming equipment and purchase of necessary equipment
within the premises. Ksh. 10,000 will be used to purchase a license for operation, ksh. 15,000,
will be input that will secure the premises against any kind of threat.ksh.50,000 will be used in
advertisement by radio and use of posters to create awareness about our products. Ksh.25,000,
ksh 35,000 will be used in product promotion. Ksh 75,000 will be in the savings account for
mush city to ensure a smooth running and operation.
5.1 APPENDICE 1

BUDGET

House 100,000
construction
Labor 200,000
Advertisement 70,000
Product 60,000
promotion
Security 15,000
installation
Office 300,000
equipment
&other
equipment
license 15,000
Land lease 30,000
APPENDICE 2
Work plan