MEAT BUTCHER

Is a retail store that sells meat and poultry products, but may also sell other products
such as fish, and package the meat on-site, resulting in fresh, great-tasting with healthy source of
protein.

I choose this location of Arusha kilombero; because it has a high population number
of people and the demand will increase due to the people who surround the place are many. this
can help me to get more stock of fresh meat because the demand will be higher and this can help
me to gain more profit.

Sole proprietorship; Is a simplest and most common business that can be owned and
controlled by an individual, the business owner has unlimited liability to pays personal income tax
on profits earned from business. Because is a self-employment business it may need less
experience or no experience at all it is not a must to have experience.

Advantage of this form of business is easy to establish, you can protect the name of
your business, there is no limit of the people you want to hire and you are the boss of your
business.

The amount of capital that I choose for my business is 20 millionTzsh, it is a debt

capital and because the location I choose will bring me profit to pay back the debt.

The reasons for me to choose this capital is in order to get the following needs;

 Quality butcher knives and a knife sharpener.

 Meat slicer.
 Grinders and other processing machines.
 Scale.
 Refrigerators and freezers.
 Protective gloves, broom, clothing and guards.
 Everyday suppliers such as trays, soap and plastic wrap.
 To pay rent and insurance, water and electricity bills.
 To pay permits and licenses, such as application fees and other expenses
 Daily; I will get an income of 100,000 Tzsh per day due to increase in sales.
Monthly; Income of 2,800,000Million Tzsh per month.

Annually; I will get an income profit of 33,600,000MillionTzsh per annual.

The expenditure of my business will be as follow; Daily; My expenditure daily

will be 10,000Tzsh
 Electricity bill 5000Tsh
 Food 2,000Tsh
 Transport 3,000Tsh
Monthly; My expenditure monthly will be 90,000Tzsh
 Rent 50000Tzsh
 Insurance 20000Tzsh
 Water bills 10000Tzsh
 Advertising 1000Tzsh

Annual; My annual expenditure will be 1,200,000Tzsh per twelve

months, this is because of the increase in sales per day, I took 100kg of the meat
they sell to me 7,000 Tzsh per1kg which cost 700,000Tzsh and when i sell1kg for
8000Tzsh i will get 800,000Tzsh which means I gain a profit of 100,000Tzsh per
day.

Debt capital; Is the capital that a business raises by taking out a loan,
it is a loan made to a company, typically, as growth capital, and is normally
repaid at some future date.

Example of their Advantage and disadvantages starting with

Advantages it includes

 It helps to work effectively and efficiency so as to return the loan.

 Ownership stays with you they do not have to say how you run your business
unlikely venture capitalists.
 It is easier to plan your payments with debt financing.
 It enables more growth of the business.
 Example of disadvantages includes;
 Because my loan is from bank the failure to pay the loan on maturity date the
banker will take my asset in order to compensate the loan.
 The failure to pay on the actual date the loan from financial institution will
result to penalties.
 Higher interest rate.
 Some lenders can put restrictions on how the money can get used.
 You may need to meet qualification requirements.
 It is difficult to apply for some small business loan.
Credit risk; Is the risk business incurred by extending credit to
customers, how to avoid this is by
 Know your customers
 Conducting due diligence
 Setting accurate credit limits.
 Determining creditworthiness

Monopolistic competition; many sellers offer differentiated product that

differ slightly serve similar purpose, how to avoid it

 Fair price
 Good customer services
 Good packaging.
 Good appearance(smart)
 Special greetings or good communication