Business Profile

KITCHEN PLASTICS

LETISHA
+265 880 350 682 | NKHOTAKOTA
Contents
1. BUSINESS OVERVIEW ........................................................................................................................... 2
1.1. About the enterprise..................................................................................................................... 2
1.2. Mission .......................................................................................................................................... 2
1.3. Product range................................................................................................................................ 2
1.4. Objectives...................................................................................................................................... 2
1.5. Ownership and management ....................................................................................................... 2
2. Financials .............................................................................................................................................. 3
2.1. Capital Requirement ..................................................................................................................... 3
2.1. Projected financial statements .......................................................................................................... 3

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 1. BUSINESS OVERVIEW
1.1. About the enterprise
Letisha kitchen ware is a small scale retail enterprise that offers plastic and related kitchen appliances at
Nkhotakota boma market. Since 2015, we have helped our customer acquire affordable quality kitchen
products at their convenient time and place. Though we are a small retail enterprise, our goal is simple:
sell as much as we can supply to more customers.

1.2. Mission
We are working to become a home of kitchen ware product in Nkhotakota district. Therefore, it is our
mission to provide wide collection of our products in line with the changes in preferences of our customers
at affordable prices.

1.3. Product range

Letisha has wide range of products in its shop. There are in the category of furniture and kitchen ware
products. These include: Kettles, Flasks, Hotplates, Microwaves, Plates, cups and spoon and many more.

1.4. Objectives
Our objectives for the next 2 years are:

 To increase sales revenue by 30-40%

 To reduced inventory while aiming at increasing customer orders
 To introduce flexible payment methods and aggressive follow-up and collection of debt
owed by customers.
 To allocate 30% of the sales per week for loan repayment.

1.5. Ownership and management

Letisha enterprise is wholly owned and managed by the Letisha. The owners take full responsibility of
financing. Operations, marketing and management.

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 2. Financials
2.1. Capital Requirement
Currently Letisha Enterprise has a working capital of MK1,000,000.00 and is looking for a capital boost of
MK1,000,000.00 to help scale up its product collection and variety of goods to some wider consumers.
The loan will be repaid in 12 months. Below is an overview showing average revenue goals per month:

2018: MK300,000 vs. MK400,000

2019: MK500,000 vs. MK500,000

2020: MK250,000 vs. MK450,000

2021: MK200,000 vs. MK350,000

A working capital boost of MK1,000,000.00 will help to increase order quantity and consequently upsurge
sales revenue given the surge in demand for our products.

2.2. Projected financial statements

Below are the projected financial statements.

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2.2.1. projected income statement

Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23
MK MK

Sales 600,000.00 600,000.00 600,000.00 600,000.00 400,000.00 400,000.00 550,000.00 550,000.00 550,000.00 675,000.00 675,000.00 675,000.00
Cost of Goods Sold 375,000.00 375,000.00 375,000.00 375,000.00 225,000.00 225,000.00 275,000.00 275,000.00 275,000.00 400,000.00 400,000.00 425,000.00
Gross Profit 225,000.00 225,000.00 225,000.00 225,000.00 175,000.00 175,000.00 275,000.00 275,000.00 275,000.00 275,000.00 275,000.00 250,000.00
Expenses
Labour 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00
Rent 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Promotion 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
Miscellaneous costs 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Loan interest payment 25,000.00 23,187.82 21,330.34 19,426.42 17,474.90 15,474.60 13,424.28 11,322.71 9,168.60 6,960.64 4,697.48 2,377.73
Total Expenses 100,000.00 98,187.82 96,330.34 94,426.42 92,474.90 90,474.60 88,424.28 86,322.71 84,168.60 81,960.64 79,697.48 77,377.73
Taxes 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00
Net Profit 125,000.00 126,812.18 128,669.66 130,573.58 82,525.10 84,525.40 186,575.72 188,677.29 190,831.40 193,039.36 195,302.52 172,622.27

Important Information
Loan request Amount 1,000,000.00
Capital 1,000,000.00
Av. Sales/month 573,000.00
inventory/month 1,425,000.00
Av. cost of sale/month 375,000.00
Council Tax 5,200.00
Labour(1) /month 50,000.00
2.2.2. Projected statement of financial position

Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23
Fixed MK
building
other assets 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00
Current
cash -
inventory 1,425,000.00 1,425,000.00 1,425,000.00 1,425,000.00 1,575,000.00 1,575,000.00 1,525,000.00 1,525,000.00 1,525,000.00 1,400,000.00 1,400,000.00 1,375,000.00
other current assets 330,025.75 380,726.44 431,381.83 481990.7846 332552.1399 333064.7073 483527.267 583938.5689 684297.3316 909602.2414 1009851.952 1112422.819
Total Assets 1,955,025.75 2,005,726.44 2,056,381.83 2,106,990.78 2,107,552.14 2,108,064.71 2,208,527.27 2,308,938.57 2,409,297.33 2,509,602.24 2,609,851.95 2,687,422.82

Liabilities
Outstanding Debt 927,512.87 853,213.57 777,056.78 698,996.07 618,983.85 536,971.32 452,908.47 366,744.06 278,425.53 187,899.04 95,109.39 -
Loan repayment (-) 72,487.13 74,299.31 76,156.79 78,060.71 80,012.23 82,012.53 84,062.84 86,164.42 88,318.53 90,526.49 92,789.65 92,731.66
Capital
equity 1,000,000.00 1,125,000.00 1,251,812.18 1,380,481.84 1,511,055.42 1,593,580.52 1,678,105.92 1,864,681.64 2,053,358.93 2,244,190.33 2,437,229.69 2,632,532.21
Retained profits 125,000.00 126,812.18 128,669.66 130,573.58 82,525.10 84,525.40 186,575.72 188,677.29 190,831.40 193,039.36 195,302.52 172,622.27
Owner's withdraw(-) 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00
Total 1,955,025.75 2,005,726.44 2,056,381.83 2,106,990.78 2,107,552.14 2,108,064.71 2,208,527.27 2,308,938.57 2,409,297.33 2,509,602.24 2,609,851.95 2,687,422.82
2.2.3. projected cash flow

Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23
Cash inflow MK
sales 600,000.00 600,000.00 600,000.00 600,000.00 400,000.00 400,000.00 550,000.00 550,000.00 550,000.00 675,000.00 675,000.00 675,000.00
inventory 1,425,000.00 1,425,000.00 1,425,000.00 1,425,000.00 1,575,000.00 1,575,000.00 1,525,000.00 1,525,000.00 1,525,000.00 1,400,000.00 1,400,000.00 1,375,000.00
Loan 1,000,000.00
Total cash inflow 3,025,000.00 2,025,000.00 2,025,000.00 2,025,000.00 1,975,000.00 1,975,000.00 2,075,000.00 2,075,000.00 2,075,000.00 2,075,000.00 2,075,000.00 2,050,000.00

Cash outflow(-)
Purchases 1,800,000.00 1,800,000.00 1,800,000.00 1,800,000.00 1,800,000.00 1,800,000.00 1,800,000.00 1,800,000.00 1,800,000.00 1,800,000.00 1,800,000.00 1,800,000.00
Expenses 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00
Loan repayment 97,487.00 97,487.00 97,487.00 97,487.00 97,487.00 97,487.00 97,487.00 97,487.00 97,487.00 97,487.00 97,487.00 97,487.00
CouncilTax 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00 5,200.00
Total cash outflow 1,977,687.00 1,977,687.00 1,977,687.00 1,977,687.00 1,977,687.00 1,977,687.00 1,977,687.00 1,977,687.00 1,977,687.00 1,977,687.00 1,977,687.00 1,977,687.00
Net cash flow 1,047,313.00 47,313.00 47,313.00 47,313.00 (2,687.00) (2,687.00) 97,313.00 97,313.00 97,313.00 97,313.00 97,313.00 72,313.00
Opening balance - 1,047,313.00 1,094,626.00 1,141,939.00 1,189,252.00 1,186,565.00 1,183,878.00 1,281,191.00 1,378,504.00 1,475,817.00 1,573,130.00 1,670,443.00
Closing balance 1,047,313.00 1,094,626.00 1,141,939.00 1,189,252.00 1,186,565.00 1,183,878.00 1,281,191.00 1,378,504.00 1,475,817.00 1,573,130.00 1,670,443.00 1,742,756.00