HOUSE OF VAPE KISUMU

BUSINESS PLAN

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EXECUTIVE SUMMARY
The Executive Summary should be written last after you have finished the remainder of the plan. It is an
overview (no more than one page long) of your business including the problem you think you aim to
solve, why your solution is different, your ideal customer, and the expected results. You should provide
a high-level and optimistic description of your company.

If you are seeking investment, include how much you want, where you will put it to use and how it will
make the business more profitable.

Think of this as the first thing a potential investor reads so it must capture their interest in the first five
minutes.

You may choose to organize it using some of the headings below.

 Opportunity: What problem are you going to solve?

 Mission: The hub of the best Vape at an affordable cost.

 Your Solution: How will your product or service uniquely solve the problem identified?

 Market Focus: What market and ideal customers will you target?

 Expected Returns: What are the key milestones for revenue, profits, and customers?

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COMPANY OVERVIEW

 Company Summary: We intend to open an online and retail shop with the main purpose of selling
and delivering vape kits and vape juices around Nyanza and Western Region. The company strives to
be the best seller of vape in the entire Nyanza and Western region.one of our main objective is to
ensure that the vape is easily accessible to our target group and market.
 Mission Statement: To effectively sell and deliver the best vape and vape juice.
 Company History: After high demand of vape and vape juice in Kisumu we decided to join resources
and our minds together to bring this product near to the people of Nyanza and Western region.
 Markets and Products: we intend to focus on the young adult population between the age of 18-35
years who are party freaks and love to smoke. We will bring this product close to its demand in
Nyanza and Western region. We offer vape kits, vape juices, disposable vape kits as well as make
delivers of the same upon request.
 Management Team: The company will be run by the 2 personnel who happen to be the core
founders of the company. Marvin will be in charge of deliveries while Harriet will be in charge of
stock purchases.
 Legal Structure and Ownership: This is a partnership business between Marvin Odhiambo and
Harriet Odhiambo. Shares are equally divided into 50% each between the 2 of us.
 Locations and Facilities: The shop will be mainly located in Kisumu town. These will include a retail
shop and online deliveries as well. The company intends to open an online website in future.

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PRODUCT DESCRIPTION

 Opportunity: After conducting extensive research of our product and market it came to my
attention that the cost of ordering the product from Nairobi was high since the customers had to
cover for the transportation costs as well. The availability of the product is scarce and it takes time
for the delivery to be made at my current station. Our young population is well known of smoking
bhang which is illegal in our country and so I bring to our young population another product that is
legal and hence have less health effects as compared to bhang. My product will be easily accessible
anywhere in Western and Nyanza region and at cheaper cost. My main Aim is to satisfy the need of
my Customer at an affordable cost.
 Product Overview: Our product is Vape which include vape kits, different types of vape liquid and
disposable vape kits. We intend to do supplies to the door step of our clients and clients so as to
save them time and costs as well. We can be accessed through out Instagram account, twitter
account and Facebook page. We will be selling both vape kits and vape liquid together with the
accessories.
 Key Participants: There is vape duka Kenya and UK vape shop in London together with danish Vape
supplies who are some of our product supplies. We can as well always give referral to Vape house in
Nairobi.
 Pricing: The kits cost will vary between 4500 and 4600 while the vape liquids will vary between ksh
600-ksh 1800 delivery within the town will be free the outcast of Kisumu will be delivered a minimal
cost. We project a gross margin of around 60% and tend to do an upgrade later in the first year.
Open shops in other centers in Kakamega, Busia, Homabay, Kisii, Migori and Bungoma. My pricing is
affordable to my target Market and ensure that they can enjoy the product.

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MARKET ANALYSIS
 Industry Type: A retail store of Vape kit and Vape liquids consisting of different flavors. We will
operate in our local market around Western and Nyanza regions. Revenue is expected to exceed 1M
by 2022, but my Vape shop will have a much smaller market. We target mostly the university
students and the young adults who are employed in the areas of Kisumu, Kakamega, Kisii, Busia and
Bungoma. This are the ages 18-35 years.
 Market Segmentation: We mainly target university students and young Adults who are aged
between 18-35. We intend to geographically cover the area of Western and Nyanza region. We
speculate of a growing segment in the next 3-6 months in the region mention above and later
maybe some part of rift valley region. The business is targeting about 30 % of the market share now
and as we expand we intend to reach about 70-80% of the market share in the next 2-3 years.

Sales

2-3 years 1-2 years 6 months-1 year 0-6 months

 Competition: The only competition we expect from the target region and market is our target
market preferring another type of product compared to what we are offering at the moment. There
is the use of shisha and cigarettes and the illegal bang. To Compete with this we are offering a
different product which is legal, satisfactory, has less effects in our health and at the time shows
class. It can be associated by all class of people in our economy and affordable to all as well.

5
 SWOT Analysis: You can include a SWOT analysis by completing the boxes below to assess your
business in the current environment in terms of strengths and weaknesses (internal) and
opportunities and threats (external). This is a good exercise to go through on an annual basis. After
completing your analysis, provide your thoughts on: how your strengths can help you to maximize
opportunities and minimize threats; how your weaknesses can slow your ability to capitalize on the
opportunities; and how could your weaknesses expose you to threats?

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OPERATING PLAN
 Sourcing and Order Fulfillment: Our company buys finished products both the kits and the liquid
flavors. We do importation of the liquid flavors from Europe using DHL courier services. We make
hand deliveries as well as online deliveries to our customers.
 Payment: Our client are required to pay after delivery for customers within the city ,for those
outside the city we require payment before we make the delivery to them. We prefer cash or Mpesa
payments
 Key Customers: Identify any customers that are important to the success of your business, whether
because of a partnership, volume, or pathway to a new market. It might also be important to
identify any customers with more than 10% of revenues for your company.
 Key Employees and Organization: we require persons with unique skills or experiences in marketing
and preferably online marketing.
 Facilities: We will set a shop around the CBD where all our products will be sold from. This will be a
retail kind of business. In the future we plan to open more shops in the other parts of our market
regions plus set a website where orders can be made as well as view by our clients.

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 MARKETING AND SALES PLAN

 Key Messages:
To provide the best vape and vape products in the whole of nyanza and western region as a whole.

 Marketing Activities: Which of the following promotion options provide your company the best
chance of product recognition, qualified leads generated, store traffic, or appointments?

o Media advertising (newspaper, magazine, television, radio)

o Telephone solicitation
o Use of fliers and posters
o Joint advertising with other companies
o Word of mouth or fixed signage
o Digital marketing such as social media, email marketing or SEO

 Sales Strategy: Use of friends and relatives for a start then later will engage sales representatives.

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FINANCIAL PLAN

9
START-UP COSTS
VAPE HOUSE KISUMU MARCH 1, 2021
 

COST ITEMS MONTHS COST/ MONTH ONE-TIME COST TOTAL COST

 

Advertising/Marketing 3 KSH 1,000 KSH 5,000 KSH 6,000

Employee Salaries 0 0 0 0
Employee Payroll Taxes and Benefits 0 0 0 0
Rent/Lease Payments/Utilities 0 0 0 0
Postage/Shipping 1 KSH 30,000 KSH 30,000 KSH 60,000
Communication/Telephone 1 KSH 1,000 KSH 1,000 KSH 2,000
Computer Equipment   0 0 0
Computer Software   0 0 0
Insurance   0 0 0
Interest Expense   0 0 0
Bank Service Charges   0 0 0
Supplies   0 KSH 10,000 KSH 10,000
Travel & Entertainment   0 0 0
Equipment   0 0 0
Furniture & Fixtures   0 0 0
Leasehold Improvements   0 0 0
Security Deposit(s)   0 0 0
Business Licenses/Permits/Fees   0 0 0
Professional Services - Legal, Accounting   0 0 0
Consultant(s)   0 0 0
Inventory   0 0 0
Cash-On-Hand (Working Capital)   0 KSH 5,000 KSH 5,000
Miscellaneous   0 KSH 1,000 KSH 1,000
ESTIMATED START-UP BUDGET       KSH 84,000

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 Projected Profit and Loss Model: The model below shows a sample of the projections a small business is forecasting for their first 12 months
of operations. The top portion of the table shows projected sales and gross profit. This is a good place to begin creating your sales forecast.
The next section itemizes the recurring expenses you are projecting for the same months.
START-UP COSTS
Your Coffee Shop January 1, 2018
 

REVENUE JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
 
Estimated Product Sales 5,000 13,000 16,000 7,000 14,500 16,400 22,500 23,125 24,549 22,000 25,000 27,349 216,423
Less Sales Returns & Discounts 0 (350) 0 (206) (234) 0 $0 (280) (1,200) (1,600) 0 (2,400) 6,270)
Service Revenue 0 0 0 0 0 250 350 100 0 0 1,245 1,360 3,305
Other Revenue 0 0 0 0 0 0 0 1,500 0 0 0 $0 1,500
Net Sales 5,000 12,650 16,000 6,794 14,266 16,650 22,850 24,445 23,349 20,400 26,245 26,309 214,958
Cost of Goods Sold 2,000 5,200 6,400 2,800 5,800 6,560 9,000 9,250 9,820 8,800 10,000 10,940 86,569
Gross Profit 3,000 7,450 9,600 3,994 8,466 10,090 13,850 15,195 13,529 11,600 16,245 15,369 128,389
 

EXPENSES JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
 
Salaries & Wages 2,500 2,500 3,500 5,000 5,000 $5,000 $8,000 $9,000 $9,000 $9,000 $9,000 $9,000 $76,500
Marketing/Advertising 400 450 450 450 900 900 $900 $900 $900 $900 $1,200 $1,200 $9,550
Sales Commissions 250 650 800 350 725 820 $1,125 $1,156 $1,227 $1,100 $1,250 $1,367 $10,821
Rent 1,250 1,250 1,250 1,250 1,250 1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $15,000
Utilities 250 150 200 200 200 250 $250 $250 $200 $200 $250 $250 $2,650
Website Expenses 175 175 175 175 175 175 $175 $175 $175 $175 $225 $225 $2,200
Internet/Phone 110 110 110 110 110 110 $110 $110 $110 $110 $110 $110 $1,320
Insurance 165 165 165 165 165 165 $165 $165 $165 $165 $165 $165 $1,980
Travel 100 0 $0 $250 $0 $0 $0 $0 $675 $800 $0 $0 $1,825
Legal/Accounting $1,200 0 $0 $450 $0 $500 $0 $0 $0 $0 $0 $250 $2,400
Office Supplies $125 125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $1,500
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other 1 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Expenses $6,525 $5,575 $6,775 $8,525 $8,650 $9,295 $12,100 $13,131 $13,827 $13,825 $13,575 $13,942 $125,746
Income Before Taxes ($3,525) $1,875 $2,825 ($4,531) ($184) $795 $1,750 $2,064 ($298) ($2,225) $2,670 $1,427 $2,643
Income Tax Expense ($529) $281 $424 ($680) ($28) $119 $263 $310 ($45) ($334) $401 $214 $396
 

($2,996
NET INCOME $1,594 $2,401 ($3,851) ($156) $676 $1,488 $1,754 ($253) ($1,891) $2,270 $1,213 $2,246
)
 

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APPENDIX

START-UP COSTS
HOUSE OF VAPE KISUMU MARCH 1, 2021
 

COST/
COST ITEMS MONTHS ONE-TIME COST TOTAL COST
MONTH
 

Advertising/Marketing 3  KSH 1,000  KSH 5,000  KSH 6,000

Employee Salaries       0
Employee Payroll Taxes and Benefits       0
Rent/Lease Payments/Utilities       0
Postage/Shipping 1  KSH 30,000  KSH 30,000  KSH 60,000
Communication/Telephone 1   KSH 1,000 KSH 1,000  KSH 2,000
Computer Equipment       0
Computer Software       0
Insurance       0
Interest Expense       $
Bank Service Charges       0
Supplies  1   KSH 10,000  KSH 10,000
Travel & Entertainment       0
Equipment       0
Furniture & Fixtures       0
Leasehold Improvements       0
Security Deposit(s)       0
Business Licenses/Permits/Fees       0
Professional Services - Legal, Accounting       0
Consultant(s)       0
Inventory       0
Cash-On-Hand (Working Capital) 12  0  KSH 5,000  KSH 5,000
Miscellaneous     KSH 1,000  KSH 1,000

ESTIMATED START-UP BUDGET       KSH 84,000

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START-UP COSTS
HOUSE OF VAPE
FEBRUARY 1, 2021
KISUMU
 

REVENUE JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
 

Estimated Product Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Less Sales Returns &
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Discounts
Service Revenue $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Revenue $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Cost of Goods Sold $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Gross Profit $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
 

EXPENSES JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
 

Salaries & Wages $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Marketing/Advertising $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales Commissions $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Website Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Internet/Phone $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Travel $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Legal/Accounting $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Office Supplies $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other 1 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Expenses                         $0
Income Before Taxes                         $0
Income Tax Expense #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
 

NET INCOME #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
 

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