BUSINESS PLAN

TITLE: IVYMAAG CHEMIST

PRESENTED BY: IVYBERYLN JERUTO

INDEX NUMBER: 5410010333

COURSE CODE: 1805/3

CENTER CODE: 541001

PAPER CODE: 307

COURSE: CERTIFICATE IN BANKING AND FINANCE

CENTER: OL,LESOS TECHNICAL TRAINING INSTITUTE

PRESENTED TO: KENYA NATIONALEXAMINATION

COUNCIL IN PARTIAL FULFILLMENT FOR

AWARD OF CERTIFICATE IN BANKING AND

FINANCE

EXAM SERIES: NOV/DEC 2021

DECLARATION BY THE STUDENT
I declare that this is my original personal work and it has not been presented by anybody and

will not be presented by anyone else.

Name IVYBERYL JERUTO

Signature …………………………….

Date ……………………………………

Supervisor : Madam Deborah Chepkurgat

Sign

Date:

i
DEDICATION
This work I dedicate to my loving parents who gave me support and also my lecturer Madam

Deborah chepkurgat

ii
ACKNOWLEDGEMENT.
First and most important I thank God for giving me strength, knowledge, opportunity and

ability to undertake this business plan particularly the whole course I have studied ,without God

I could not been this far. I wish to acknowledge the support I got from, My supervisor Madam

Deborah chepkurgat for giving me knowledge, skills and support throughout this work, my

loving parents Mr. and Mrs. Jimmy Maiyo for the financial support they offered throughout the

course, I also thank all the lecturers in the institution for the support and motivation towards the

work.

iii
Business description
In chapter one we discussed the business name, the name of the business was Ivymag
chemist, it’s a partnership business with a startup capital of one million, it located in Nandi
county, the business is located at that place because of availability of health facility, to provide
adequate services in the area, place is highly developed, lack of proper services of
chemist, improved technology, good security and high population in the area. The goals of the
business increase sales, outgo competitors and increase profit, open a branching town and
purchase
a van.
Marketing plan
Secondly, the customers will be domestic, institutional and commercial customers. There are
different types of competitors direct and indirect competitors, Ivymag chemist will advertise
business through use of sign post, posters writing on the building the name of the business
,method of promotion used will help increase sales, increase customers, outgo competitors hence
increasing income and profit. The business strengths will be trained personnel, strategic
point, quality services and low prices and its weakness are the new in the business and lack of
market experience pricing strategy will be the original price of purchase of product also
comparing price of competitors.
Organizational plan
The organization structure will be the finance manager and the clinical manager .There will be
also the salesman,messenger,watchman and cooks .Recruitment, training and promotion process
will be done by identifying vacancies exist, job specification, application of job, interviewing
and finally job offering. Workers will then be trained for work. Salaries will be awarded
according to job incentives will be given support service will be banking, postal services.
Operational plan
Services will be offered directly to customers, orders and distribution production process
offered by manufactured goods production process will be placement and requirement of
products, receiving of items display of the goods to the customer and payment of items. The
regulations affecting operation will be health regulations, safety regulations ,environmental
regulations and lab our laws regulations.
Financial plan
The preparation costs 299760,the proforma trial balance net profit for year one two and three
respectively is 394710,607760,595400 and the working capital for year one two and three is
1394710,1607760 and 1595400 respectively ,the break-even analysis 1.47 the financial ratios the
gross profit for year one ,two and three is 44.59,49, and 48.8 respectively the net profit
percentage for year one two and three is 18.31,25.9 and 25.0 respectively. The rate of stock turn
over for year one two and three 1130 times,1091 terms ,1125 times current ratio for year
one-two and three 4.1,4.4,4.5 and acid test ratio will be 3.89,4.23 and 4.26.The working capital
for year one two and three are 1282280,1493760 and 1481400 respectively.