CLOTHES &COSMETICS

BUSINESS PROFILE

CONTACTS: LETISHA LIKAOMBA

+265 991 677 882

NKHOTAKOTA

©SEPTEMBER 2022
TABLE OF CONTENTS

1. Business overview ..................................................................................................................................... 3

2. Financial aspects ...................................................................................................................................... 5
 1. BUSINESS OVERVIEW

1.1. Business description

Letisha Likaomba is a small scale enterprise based in Nkhotakota district. A sole proprietorship
which is 100% owned by Letisha Likaomba and family.

We offer clothes and cosmetics products at Nkhotakota boma market. Basically, we offer
branded clothes and Kaunjika. we are also a reliable retail shop for cosmetic products.

As a small scale enterprise, we aim to offer products of superior quality accompanied by great
customer service. And that starts with a proper build up with financial resources, unfortunately, our
situation is nothing short of a nightmare. Nonetheless, we are working tirelessly in order to achieve
our objectives in the next two years. Our objectives are to:

 To provide high quality products that our buyers need and want with exemplary customer
service.
 To sustain better growth of our enterprise while also offering lower prices to attract and
retain customers
 Diversification keeps our business thriving; we are committed to expand our product
collection in each category.
 To increase overall sales volume by 45% per month in order to fulfil loan repayments and
keep our operations stable.
 To build a standalone shop at Nkhotakota boma in which we will be offering our products
and services.

As it had been the case in the past years, we believe that the key to achieving our objective is:

 Strategic location: our business is located in the heart of Nkhotakota boma market. This
exposes us to a huge influx of people doing their daily purchase activities and others that
are into clothes and cosmetics shopping.
 Lower prices: the market is flooded with a lot of products similar to our offers, our key is to
has been to offer lower prices.
 Variety of products and time: we offer products that are on high demand making us to do
a weekly re-order cycle.

1.2. Management

Our enterprise is managed by Letisha Likaomba. She has remarkable experience in business
management. In 2009, she started selling watching soap with a capital of MK600.00. overtime, she
changed to clothes and cosmetics and now the business is worthy MK1,700,000.00.
 1.3. Market

our customers are people from all backgrounds. Therefore, everyone using or they looking for
cosmetics products is part of our customer base. Our advantage is that we order in bulk and we
offer them at affordable prices. This is why we do a weekly re-order cycle.

1.4. Capital requirements

Due to macroeconomic instability exacerbated by the devaluation of kwacha, fuel scarcity and
the general rise in prices of goods has made it quite challenging for us to spearhead our
operations in the direction we had planned. Our order quantity has drastically been reduced and
variety of products we offer had been cut to cater for on-demand items only. Consequently, the
result had been catastrophic. We want to rejuvenate our operations back to normal, however,
we are falling short by MK5,000,000.00 to fill a MK6,700,000.00 finance requirement.

Therefore, we have resorted to borrowing. We are seeking MK5,000,000.00 by October 15th, 2022
in loan to boost our working capital. We are willing and ready to pledge land and house as
collateral for the loan.
 2. FINANCIAL ASPECTS

2.1. Capital

Letisha Likaomba’s clothes and cosmetic retail business is worthy MK1,700,000.00. This value is held
in inventory and a little of cach sales and receivables. We believe a loan injection of
MK5,000,000.00 would boost our working capital and the prospects higher sales in inevitable.
Below are the projected financial statements.

2.2. Projected financial statements

2.2.1. Projected income statement

Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23

MK

Sales 1,500,000.00 1,700,000.00 1,900,000.00 1,700,000.00 1,600,000.00 1,600,000.00

Cost of Goods Sold 1,200,000.00 1,220,000.00 1,215,000.00 1,200,000.00 1,200,000.00 1,200,000.00

Gross Profit 300,000.00 480,000.00 685,000.00 500,000.00 400,000.00 400,000.00

Expenses

Labour 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00

Transport 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00

Promotion/discounts 5,000.00 10,000.00 11,000.00 10,500.00 10,000.00 5,000.00

Miscellaneous costs 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00

Loan interest payment 125,000.00 115,939.11 106,651.70 97,132.10 87,374.51 77,372.98

Total Expenses 285,000.00 280,939.11 272,651.70 262,632.10 252,374.51 237,372.98

Taxes 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00

Net Profit 15,000.00 199,060.89 412,348.30 237,367.90 147,625.49 162,627.02

 2.2.2. Projected Cash flow statement

Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23

Cash inflow MK

sales 1,500,000.00 1,700,000.00 1,900,000.00 1,700,000.00 1,600,000.00 1,600,000.00

inventory 1,800,000.00 1,780,000.00 1,785,000.00 1,800,000.00 1,800,000.00 1,800,000.00

Loan 5,000,000.00

Total cash inflow 8,300,000.00 3,480,000.00 3,685,000.00 3,500,000.00 3,400,000.00 3,400,000.00

Cash outflow

Purchases 1,200,000.00 1,220,000.00 1,215,000.00 1,200,000.00 1,200,000.00 1,200,000.00

Expenses 165,200.00 170,200.00 171,200.00 170,700.00 170,200.00 165,200.00

Loan repayment 487,435.63 487,435.63 487,435.63 487,435.63 487,435.63 487,435.63

Total cash outflow 1,852,635.63 1,877,635.63 1,873,635.63 1,858,135.63 1,857,635.63 1,852,635.63

Net cash flow 6,447,364.37 1,602,364.37 1,811,364.37 1,641,864.37 1,542,364.37 1,547,364.37

 2.2.3. Projected balance sheet

Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23

MK

Assets Cash 6,447,364.37 1,602,364.37 1,811,364.37 1,641,864.37 1,542,364.37 1,547,364.37

Inventory 1,800,000.00 1,780,000.00 1,785,000.00 1,800,000.00 1,800,000.00 1,800,000.00

other assets - - - - -

Total Assets 8,247,364.37 3,382,364.37 3,596,364.37 3,441,864.37 3,342,364.37 3,347,364.37

Liabilities

Loan repayment(-) (487,435.63) (487,435.63) (487,435.63) (487,435.63) (487,435.63) (487,435.63)

Outstanding loan 5,000,000.00 4,637,564.37 4,266,067.84 3,885,283.90 3,494,980.36 3,094,919.24

Capital

Equity 1,700,000.00 1,715,000.00 1,914,060.89 2,326,409.19 2,563,777.10 2,711,402.59

Retained profits 15,000.00 199,060.89 412,348.30 237,367.90 147,625.49 162,627.02

Owner's withdraw - - - - - -

Total Capital &Liabilities 6,227,564.37 6,064,189.62 6,105,041.40 5,961,625.36 5,718,947.32 5,481,513.21