SAMUEL SPORTS & FITNESS CENTRE

P.O. BOX 199 KALANGAALO, MITYANA-UGANDA

TEL: +256-776260391

i
INTRODUCTION

PHYSICAL ADDRESS: SAMUEL SPORTS & FITNESS CENTRE

P.O BOX 199, 199 KALANGAALO

MITYANA DISTRICT

UGANDA.

TEL: +256-776260391, 700343587

E-MAIL: lukwagosamuel62@gmail.com

PREPARED BY:

THE MANAGING DIRECTOR

SAMUEL SPORTS & FITNESS CENTRE

DATE; 29/MAY/2021

Owner
1. LUKWAGO SAMUEL
2. NALUKWAGO RUTH

ii
Business description
The business will offer a variety of sports equipment and fitness exercise programs to various
clients. Some of the sports equipment that the company will deal in include;

 Balls
 Sports shoes/boots
 Sports shocks
 whistles
 goal nets for various sports
 Sports attires  Massage
Fitness services include;
 Aerobics
 Body building
 Cardiovascular endurance
exercises
The sports equipments are in 3 qualities ranging from good, better and best at
varying prices depending on the needs of the clients.
The main reason why we decided to take up this venture is because of its
uniqueness, limited competitors and the small startup costs required for the
business.
Financing
Financing the initial requirements to start this business is 335,000,000 of
which 251,250,000 million Uganda shillings will be equity from the loan to
be obtained from Stannic bank to be paid off within the first three years in
operation and the remaining balance of 83,750,000 million shillings will be
from the owner The finances contributed or acquired will cover leased vans,
advertising and selling costs, office equipments and meals to the few staffs
for the mean time.

Statement of confidentiality

iii
This information report is confidential and remains a property of the
management and named company owner above. Any duplication or
reproduction of this report is highly prohibited and shall be prosecuted in
accordance to the copy right laws and company laws.

TABLE OF CONTENTS
Business description........................................................................................ii
CHAPTER ONE..............................................................................................1
1.0 EXECUTIVE SUMMARY...................................................................1
Name of shareholders..............................................................................1
CHAPTER TWO.............................................................................................3
2.0 VISION AND MISSION STATEMENTS............................................3
Vision of the company.............................................................................3
CHAPTER THREE.........................................................................................4
3.0 INDUSTRY ANALYSIS......................................................................4
Competition analysis................................................................................4
5.8.1 Competitive rivalry.........................................................................5
SWOT Analysis...........................................................................................6
5.14.1 Strength.........................................................................................6
5.14.2 Weaknesses...................................................................................6
5.14 3 Opportunities.................................................................................6
5.14.4 Threats...........................................................................................6
CHAPTER FOUR............................................................................................7
4.0 COMPANY OVERVIEW..................................................................7
Nature of business....................................................................................7
Background..................................................................................................7
Company location........................................................................................7
Company objectives.....................................................................................8
5.0 CHAPTER FIVE.....................................................................................10
PRODUCT OR SERVICE PLAN.............................................................10
Bar Section.............................................................................................10

iv
6.0 CHAPTER SIX..........................................................................................2
MARKETING PLAN..................................................................................2
Introduction..............................................................................................2
7.0 CHAPTER SEVEN...................................................................................7
MANAGEMENT PLAN.............................................................................7
Board of directors and management team...................................................7
MANAGEMENT STRUCTURE............................................................7
8.0 CHAPTER EIGHT..................................................................................13
CRITICAL RISK ASSUMPTIONS..........................................................13
Assessment of Risks..............................................................................13
9.0 CHAPTER NINE.....................................................................................15
PRODUCTION/ OPERATION PLAN.....................................................15
CHAPTER TEN.............................................................................................18
FINANCIAL PLAN...................................................................................18
Introduction................................................................................................18
Sources of Finance.................................................................................18
SAMUEL SPORTS AND FITNESS CENTREPROFORMA CASH
FLOW STATEMENT...............................................................................26
APPENDIX I.................................................................................................27
APPENDIX II................................................................................................28
CURRICULUM VITAE MANAGING DIRECTOR................................28
BIODATA..............................................................................................28
DECLARATION.......................................................................................29

v
CHAPTER ONE

1.0 EXECUTIVE SUMMARY

Samuel sports and fitness Centre shall be registered as a public limited

company with only one outlet located in Kalangaalo Trading Centre near
Kalangaalo Secondary School, on Kalangaalo Mityana road. Samuel sports
and fitness center will also provide free counseling to our customers about
nutrition and other sport related knowledge.
The company shall operate in a hired building before constructing its own
permanent business premises in the near future after fully establishing itself.
The company shall open up various outlets throughout the districts and its
metropolitan areas of Kiryokya, Bulera, Mityana and Kasanda in a bid to
increase sales and allow easy/quick access of their products by the
customers.
The company is expected to start its operations in November 2021 after fully
going through the process of registration & incorporation successfully. The
company needs a sum of 335,000,000 million Uganda shillings in order for it
to start its operations. The shareholders have already confirmed that they will

vi
be in position to contribute 53,750,000 million Uganda shillings and the
remaining balance of 251,250,000 will be obtained as a loan from Stannic
Bank. The loan obtained from the bank will be paid back in a period of three
years.
The loan repayment shall be met in a period of 3 years. The company is
expected to enjoy its profits after 4 years in operation. This will be after
settling/clearing the loan.
The business shall be wholly owned by the two shareholders listed below
who will contribute capital to the business after the pursuance of the
memorandum of association.

Name of shareholders
Number of shares
1. LUKWAGO SAMUEL
30%
2. NALUKWAGO RUTH
70%
The company shall be managed by the Board of Directors who shall
comprise of the two shareholders and the senior legal adviser to the
company.
The list of the company’s operation shall depend on the following
departments that shall make up the Samuel sports and fitness Centre;

1. Sales and Marketing department

2. Finance and Accounts department
3. Procurement and logistics department
4. Coaching department

The above departments shall be managed and headed by a manager who

shall be responsible to oversee the activities of the respective department and

vii
 writing of a detailed monthly report of the department activities. The
managers shall report to the board of directors.
The managers shall be highly qualified possessing management skills and the
ability to make quick and accurate decisions.
The company shall have financial statements as a basis for financial planning.
These financial statements will be prepared in accordance with the
international accounting and reporting standards in order to ensure accuracy.

viii
CHAPTER TWO

2.0 VISION AND MISSION STATEMENTS

Vision of the company

To consistently emerge the best supplier of quality sports equipments, tools,
fitness service & massage with incomparable customer care in a hygienic &
friendly atmosphere

Mission of the company

To deliver daily quality sports equipments, tools, fitness service & massage
in time to our clients coupled with incomparable customer care

Philosophy
The business proprietors believe in a close working relationship with
suppliers, to provide and deliver first class sports equipments, & tools at fair
and unbeatable prices coupled with great customer care service and total
devotional commitment in serving all stakeholders.

ix
CHAPTER THREE

3.0 INDUSTRY ANALYSIS

The business of selling sports equipments, tools, fitness service & massage
has few small and large scale companies with no substantial share of the
market. The industry also has few barriers to entry since relatively small
start-up costs and low levels of experience are required. These factors make
the industry attractive and the competition ferocious. According to the
analysis made by the company directors, sports equipments, tools, fitness
service & massage business has the biggest possibility to succeed and boom
with in the targeted market areas because currently there is no sports Centre
in the region operating at a small scale or large scale. Therefore, we believe
that if we exploit his weakness, there is no doubt that Samuel sports and
fitness Centre will have the biggest market share to command.

According to the health experts and health principles (doctrines), it is

advisable to do physical exercise on a daily basis or especially after every
three days to help boost the process of body building. Massage and aerobics
exercises help to boost relax minds, have healthy body, making therapeutic
treatment to fight various injuries thus keeping the body strong, healthy and
active.

Basing on the above, many people wish to physical fitness, and massage but
are unable to access them at the right time because the ones with the same
service are very far and are quite expensive.

Therefore, these factors have opened an opportunity that needs to be

exploited in order to bring our services and products nearer to the consumers
in their right amounts, at the right time with the best service available from
our highly qualified staffs.

x
Competition analysis
This analysis has been based on the adoption of Michael porters five forces
model 9. 1980. The model is shown in the figure below;

Potential entrants

5.8.1 Competitive rivalry

Samuel sports and fitness Centre will not be a monopolistic business. There
Suppliers Competitive rivalry Buyers / customers
are some already established sports and fitness centres in Uganda. The
company’s competitive rivalry can be classified into two groups.
The fitness instructors who normally Substitutes’
have weekend fitness programs at a
cheaper prices. They deal in aerobics in areas that do not really having high-
income earners. These businesses are not on small scale and they normally
operate half-day leaving out customers who usually need daily service in the
weekends. This therefore gives us a competitive advantage or opportunity
since we have a reference address and physical location ready to offer all
kind of services to our dear customers 24 hours hence ensuring customer
satisfaction.

Competitive advantage
Samuel sports and fitness center has competition in providing the same
services to the customers as other companies but our strength is in quality
and yet out products are affordable. There are only few companies which
provide the similar types of services with us but their products are even
remote comparable to ours.

High levels of customer service and care will be exercised with diligence and
honesty. Workers will undergo training to acquaint them with basic
principles of customer service to provide a friendlier and customer related
service.

xi
Samuel sports and fitness center plays cool music at the background this to
entertain our customers as they spend their time.
Availability of shower rooms and toilet for customers and DSTV that shows
different channels especially football, Movies and News this keep our
customers updated and entertained.

SWOT Analysis
Samuel sports and fitness center will be at the blink of major opportunity. It
will have the strengths of combined expertise in advance, sophisticated
technology and quality service deliver. It will also have an opportunity of a
growing market and new channels of distribution. The major weaknesses
shall be as the threat of potential competitors and need to penetrate the
market.

5.14.1 Strength
Good management team.
Emphasizing good quality services.
Large working space.
Increased capital from growth in sales.
Good delivery.

5.14.2 Weaknesses
Expensive products
Fill face liquidity problems in the short run.

5.14 3 Opportunities
Marketing through various median like internet marketing. In the long run,
there is a possibility of merging and making strategic alliances to have
common prices for the common services with our competitors. An
opportunity of cheap labour especially operatives.

5.14.4 Threats
Facing the existence of strong experienced competitors of the same service
scheme of black mail.

xii
Samuel sports and fitness center shall have to consult experts in the same
business, this will be done through workshops, which help to discuss and
analyze challenges and opportunities in relation to its competitors. This
expertise will be members of the board of directors.

xiii
CHAPTER FOUR

4.0 COMPANY OVERVIEW

Nature of business
Samuel sports and fitness Centre is a proposed partnership business with two
shareholders and shall be a private limited company dealing in sports
equipments, tools, fitness service & massage.

Background
Samuel sports and fitness Centre will be situated in Kalangaalo Trading
Centre near Kalangaalo Secondary School, on Kalangaalo Mityana road.
Kalangaalo is a developing and a growing area with large population of
people that provide ready market for our business. Upon expansion, Samuel
sports and fitness center plan to open up branches in areas of Kiryokya,
Bulera, Mityana and Kasanda.
At Samuel sports and fitness Centre, we are aware of how important is our
services to our dear customers hence we supply them with highest quality
output. Due to increased demand for sports equipments, tools, fitness &
massage services Samuel Sports and Fitness Centre shall be incorporated to
improve on the likeness of the majority since it is estimated that 90% of the
total population in Uganda and in East Africa mind about what they do and
like doing aerobics, soccer playing with friends, relatives and workmates.

Company location
Samuel Sports and Fitness Centre will be situated in in Kalangaalo Trading
Centre near Kalangaalo Secondary School, on Kalangaalo Mityana road.
This comes at a time when Kalangaalo and other surrounding areas like
Kiryokya, Bulera, Mityana and Kasanda have become one of the areas with
high population that provide ready market.
Considerably few entrepreneurs have discovered a market niche in this area.

xiv
It shall be so located because of the following factors;
 There is enough space for future expansion of the business. There is
enough security in the area.
 Easy transport that is to say vehicles and roads are readily available
in the area. This will allow for hasty delivery of services to our
clients.
 Steady supply of hydro-electricity power to enable the operations of
the company.
 There is no other business of the kind in the area.

Company address
P.O. BOX 199 Kalangaalo, Mityana-Uganda
Tel: +256-776260391, -700343587
Email: lukwagosamuel62@gmail.com
Website: www.samuelsportscentre.ac.ug

Company objectives
Samuel Sports and Fitness Centre in a bid to provide quality services to
people has set the following objectives;
 To act as manufacturer’s representative, importers, exporters and
whole sellers of all types of sports equipments.
 To establish and promote business of sports equipments, tools, fitness
& massage services.
 To deal fairly with the society so as to get good relationship and also
deal fairly with the government by paying the taxes promptly.
 To create customers and provide them with quality products of value
which meets expectations.
 To train people on how to deliver services so as to provide
employment opportunities.

xv
  Focusing on increasing sales and meeting customers’ demands
through improved services.
 Generating income for the company and maintaining the standards of
the employees (motivation and improve ways of living)

Venture Prospects
The main reason for the proposed Samuel Sports and Fitness Centre is to
meet the ever growing demand for sports equipments, tools, fitness &
massage services.
The company shall sell sports equipments, tools, fitness & massage services
with an aim of maximizing profits and dominating the biggest market share
in the region.

The company will be successful in this venture because of the following

reasons;
 High quality products and services offered by the company
 Unbeatable and competitive prices offered to our clients.
 Constant research and innovations on product and service
improvements
 Our general hygiene which is incomparable and certified by Uganda
national bureau of standards
 Our quick and timely delivery of products to the customers.

xvi
5.0 CHAPTER FIVE

PRODUCT OR SERVICE PLAN

Sports equipments section

Samuel Sports and Fitness Centre shall deal in the sale of the following
equipments and tools:

ITEMS QUANTITY PRICE

EPUIPMENTS AND TOOLS
1. Ball 1 150,000
2. shocks 1pair 5,000
3. t-shirt 1 10,000
4. short play jazzy 1 5,000
5. goal net 2 100,000
6. whistle 1 10,000
7. Boots 1 50,000

xvii
FITNESS
Samuel Sports and Fitness Centre shall offer the following fitness exercise
 Aerobics
 Gymnastics
 Body building
 Massage

Each session will cost 1,000 shillings and shall take one hour.

xviii
6.0 CHAPTER SIX

MARKETING PLAN

Introduction
“Informative but not persuasive” is what Samuel Sports and Fitness Centre
believe in while marketing their products. We shall pride ourselves in
availing quality products that meet the customers demand.
The company will earn good profits. We expect to earn a gross profit of
5million shillings per month in the first year of operation, and hence 60
million shillings annually. This will be adjusted in the subsequent years of
operation since the company is believed to have been well established by that
time. Therefore, in the following years the company is planning to earn at
least 10 million shillings per month and 120 million shillings annually, but
then profits will be adjusted when need arises for investment in new ventures
or retaining some earnings for services development.
The company will expand its promotional and selling activities to other
regions of Uganda, we expect our future sales to existing customers to
increase tremendously. We shall also keep track of the existing customers to
monitor their purchases and plan for follow up visits through appropriate
communications.

Target Customers:
Samuel Sports and Fitness Centre shall target people living in Kalangaalo
sub-county.

Market segmentation
According to our customer targets, the business will supply its products to
the various categories of consumers in the market. This market will be
segmented mainly according to the income levels i.e. low income earners,
medium and high income earners basing on the ordering levels.

xix
Marketing mix
Samuel Sports and Fitness Centre will use marketing strategies that will
promote customer satisfaction so as to earn competitive advantage over our
competitors because the customers are the main reasons for success of this
business.

The sales and marketing strategies shall be based on the following Product
strategy;

Product strategy
The firm intends to provide excellent quality sports equipments, tools, fitness
& massage services at affordable prices and quantities to its consumers. We
recognize the presence of our competitors in this business, therefore in a bid
to differentiate our products from our competitors, Samuel Sports and
Fitness Centre will design specific packages for all its products with our
trade mark and logo designed on the specified packages for easy recognition
and sealed to ensure safety and to avoid duplication.

We shall also introduce corporate size to favour those who want special
designed fitness programs apart from the ones we make to ease the life for
busy customers

Price and sales strategy

The products will be priced according to the quality and the number of hours
for the session for the case of fitness. However, the prices are likely to
change depending on the market conditions and the economic situation of the
country at a given time. These price policies shall be designed to attract
many customers and at the same time enable the business to make high sales
and profits.

Place distribution strategy

The products shall be sold at our premises.

xx
Promotion and advertising.

In the initial stages of development, the company will use posters, business
card, internet advertising and fliers to create awareness to the public on the
products we have on offer.

The company shall print T-shirts and caps that will be given out to loyal
customers in order to promote the advertising strategy of our products on the
market.

The company shall also carry out some media advertisement on radio
especially the locally based radio station in Mityana.

Competition and Competitive edge.

Samuel Sports and Fitness Centre is the first medium sized Sports and
Fitness Centre company in the region of Kalangaalo. Our competitor has his
strength in the long experience of about three years in fitness business, but
nevertheless they have failed to deliver good quality services and products at
the right time to the customers and yet the demand is high hence failing to
meet up with the demand and failure to satisfy the customer’s needs.

Basing on the above weakness, the firm shall employ highly qualified
business oriented managers with great commitment to produce high quality
products and services to the clients. Great hygiene and packaging of our
products puts Samuel Sports and Fitness Centre above our competitors
because everybody wants products of great hygienic background, well
packed and sealed. This uniqueness in us makes us unbeatable.

Great and timely delivery of our products to clients.

Market evaluation and plans for sustainability

The firm shall carry out market research to evaluate and understand the
market trends and concentration will focus on:

xxi
  Research on establishment whether our products are of good quality
to meet our consumers’ standards

 Pricing policy and the current economic conditions in order to assess

whether our prices are fair and accepted by the customers.

 Market shares held by the firms and the degree of control we shall
have in the industry.

P.E.S.T ANALYSIS. (External)

Before marketing a given product, it is important to analyze and scan the
external environment by considering the political, economic, social and
technological factors that might affect your product marketing strategies.

Political Factors
Political factors include government regulations and legal issues that define
both formal and informal rules under which the firm will be operating. These
include;
 Tax policy
 Employment laws
 Bureaucracy/ red tape in the registration process.
 Political stability
 Regulation, monitoring and provision of extension services.

Economic Factors
Economic factors affect the potential customers and the cost of raw materials
there by leading to change in prices. Examples include;
 Liberalized market
 Access to credit facilities
 Availability of cheap labor
 High levels of poverty.

xxii
Social Factors
These will include demographic and cultural aspects of the external
environment. These factors will affect customer needs and the size of the
potential markets. They may include;
 Population growth rate of municipality especially Mityana and
Kasanda district.
 People’s attitude towards introduction of new sports fitness
centre.
 Corruption
 Religious beliefs that stop people from enjoying aerobics and
massage

Technological Factors
These are most likely to lower barriers to entry, reduce minimum efficient
product levels and influence outsourcing decisions. These include;
 Research and development activity.
 Technological incentives

Market size and trend.

Samuel Sports and Fitness Centre strongly believes that its products should
be marketed to people within specific income class.
We believe that our customers who will choose our products should be able
to receive information about what they will be buying and we will be able to
communicate responsibly with them about the products.
The company intends to win at least a 4/7th of the existing market in the
region in the first years of its operation and also targets 3/4 th of the region
market in the next three years’ time. This will generate a sizeable income for
the business to expand its operations to cover the country in the next three
years.
With increasing growth of population in Uganda Samuel Sports and Fitness
Centre expects to capture wider market share. There is also increase in

xxiii
population in MityanaS as a result of increased urban-rural migration
therefore the needs for improved life style.

7.0 CHAPTER SEVEN

MANAGEMENT PLAN

Board of directors and management team

Policy making will be mainly by the two shareholders and the other
manpower.

1) Mr. Tamale Nyanja who holds a Bachelor degree in Management

Science from Kyambogo University will be the managing director
who will be in charge of the overall responsibility for day to day
operations of the company, liaison with the company’s financing,
legal and accounting contracts, implementation and supervision of
policies and procedures set by the board of directors and will also
deal with long term planning.
2) Mr. Kawuki David who holds a degree in business administration
from Makerere Business School will be the marketing officer and he
will be in charge of supervising purchasing and inventory control and
will also help be responsible for all personnel functions and will also
help out in marketing and advertising.

MANAGEMENT STRUCTURE

Board of Directors

Managing
Director
Finance Sales and marketing
manager manager
Fitness
manager

xxiv
 Promotions
manager
All employees in the
aerobics and massage

Sales and marketing

executives

Table 1: Summary of salary and compensation scheme for only 1st year

POSITIONS MONTHLY SALARIES ALLOWANCES

Managing Director Share of dividend 300,000/=
Finance Manager Share dividends 200,000/=
Sales and marketing manager 400,000 90,000/=
Fitness manager 400,000 90,000/=
Promotions manager 350,000- 80,000/=
Sales and marketing 250,000 50,000/=
executives

Duties and Responsibilities

Board of Directors
Board of directors shall constitute of three people;
1. LUKWAGO SAMUEL who will also be the managing director
2. LUKWAGO RUTH who shall be the financial manager of the
company
They shall play the following roles;
 Make overall decision and policies governing the management and
control of the company
 Resource and financial mobilizations for the company

 Approve the expected financial budgeted expenditure of the company

xxv
Managing Director
The managing Director shall be LUKWAGO SAMUEL who holds a
Diploma in physical education and sports management and a certificate in
management science.
His main role shall be to effectively manage the company by making sure
that the business realizes continuous growth and increases in the return of
investment for the shareholder. She will report to the Board of Directors and
shall perform all duties as may be specified by the Board of Directors.

The duties of the managing director among others shall include;

 Overall decision making of the business.

 Supervising the line managers

 Continuous monitoring of company activities to ensure compliance

with company objectives
 Responsible for submission of periodic reports on company
performance as may be specified by the Board of Directors
 Formulating and managing the company budgeted expenditure.

 Overall decision making of the business

 Recruiting, training and development the employees in the company

The managing Director possesses the following knowledge, skills and

abilities;
 Ability to plan, control and implement informed decisions and
policies.
 Good public relations and customer care.
 Financial management skills.
 Computer skills and knowledge on computer applications and data
base management.

xxvi
The Financial Manager
The financial manager shall be Madam. NALUKWAGO RUTH; She holds a
bachelor’s degree in Business Administration.
Her main role is to ensure effective and efficient management of the finances
of the company. The finance manager shall report to the managing director.
The duties and responsibilities of the finance manager may include,
 Planning and managing revenue and expenditure transacting and
recording all activities with the help of the accounts department,
 Supervising the accounts department,
 Analyzing project financial performance,
 Maintaining and controlling all the internal financial control systems
 Participating in the formulation of the budget.
The financial manager possesses the following skills;
 Managing finance skills.
 Perfect communication and public relations skills.
 Knowledgeable about statutory regulations.
 Computer knowledge and skills.

Sales and Marketing Manager

The main role of the marketing manager is to identify the needs of the
customers come up with ways of fulfilling them. The marketing manager
shall report to the managing director.
The duties of a marketing manager among others include the following;
 Organizing promotional activities aimed at attracting and winning
more customers to the business
 Shall ensure increased sale turn over for the company
 Organizing for the advertisement of business activities
 Mobilizing funds for promotion activities in liaison with the financial
manager.
The knowledge and skills of the marketing manager include the following;

xxvii
  Ability to speak quite a number of languages.
 Good communication skills.
 Excellent in negotiation.
 Computer literate.

Fitness Manager
His roles among others shall include,
 Sourcing all materials required for the daily workouts of the clients,
 Managing all stores activities including receipt, storage and issuing of
materials for the smooth running of the aerobics and massage.
 Responsible for supervising all the workers under the fitness
department.
 Shall ensure that all equipments are prepared in time.

Sales executives
 They shall deliver products to our esteemed customer.
 He shall be responsible for selling all our products
 Shall account for all good they shall have sold
Each of the above department managers undoubtedly has valuable skills,
knowledge and qualifications with unique management styles of maintaining
quality all time in order to maintain profitability as well as satisfying
customer needs.

Recruitment and training

Recruitment will be through placing advertisements on radios and
Newspaper. From these advertisements, we expect to get respondents who
will be screened; interviewed and successful candidates will be given
appointment letters.
The Recruitment process shall be as follows:

 Application shall be received from aspiring candidates as advertised.

xxviii
  Grading according to the minimum qualifications

 Successful candidates shall be shortlisted for both written and oral

interviewing then followed by selection of suitable ones for the job.

Training
The company will invest heavily in training and developing skills, values,
and attitudes of the employees. On job training and job rotation training
methods will be used to equip our employees with the skills needed for them
to carry out their tasks.
All training methods will be reviewed to ensure effectiveness.

Motivation
Our pay and benefits are designed to be highly competitive. We shall also
offer reads for the best performing employees.
To ensure the best results from our employees, we shall do the following;
 Prompt payment of the employees
 Payment of monthly allowances to the employees
 Provide lunch for the employees to keep them at work during lunch
 Listen to their views and suggestions and try to act upon them

xxix
8.0 CHAPTER EIGHT

CRITICAL RISK ASSUMPTIONS

Assessment of Risks
Just like any other business, the firm is likely to face problems and risks
during the course of its operation. However, with a capable management
team and staff the company shall supersede and establish itself amidst all
these challenges since the business will be operating in a very dynamic
environment.
The risks have been categorized in 3 basic ways:
1. Financial
2. Planning
3. Marketing

Financial Risks
 Running short of enough money to manage production and
administrative costs.
 Inaccessibility to stock markets because of low company share prices
and profitability.
 Increased bad debtors that might reduce on sales returns.
 Increased rates in the interest payable to the bank for loan payment if
fixed
 There could also be high taxes that may be imposed on the company.
These taxes include, licensees, permits among other as they may
arise.

Planning Risks
 There might be wrong predictions done that will not actualize. These
might be as a result of delay in equipments, anticipated acquisition of

xxx
 required personnel, machinery, bank loan, premises. There might be
deviations in the plans put on paper.
 There might also be estimated deviations in budgets as a result of
changes in prices, hence, leaving the company in need of more funds.
 The industry trends might change unfavorably making the planned
service delivery to be curtailed.
 There might also be a breakdown in machinery yet there is growing
demand as a result of sales force efforts.

Marketing Risks
 Reduction of prices or price cutting by some competitors. This will
be as a result of fights to win targeted markets outside the produce
development strategies. Already established competitors who have
the biggest share in the market may lower the price of their services
so as to ensure that they out compete us. The company may not make
sales as planned due to the presence of many companies operating in
the same industry

 Free entry of new firms that may act as a threat to the market to the
share

Risk Solutions
In a bid to solve the above risks Samuel Sports and Fitness Centre will
undertake the following adjustments;

 There will be revision of the budgets to come up with a flexible

budget.
 The company shall carry out further market research to enable it to
come up with trends in the market.
 The company shall access grants and borrow money from financial
institutions in cases where there are insufficient funds to facilitate
innovations.

xxxi
  The company may consider practicing agreements with other
enterprises that have an established market base.
 Credit sales may be reduced or given to more reliable companies in
order to avoid bad debts

9.0 CHAPTER NINE

OPERATION PLAN

Company Geographical Location

The company shall be located in Kalangaalo Trading Centre near
Kalangaalo Secondary School, on Kalangaalo Mityana road.

The location was chosen because of the following;

 It is convenient for both employees and customers.
 It is relatively cheap in terms of the buildings and accessibility.
 Abundance of proficient, trainable and skilled labor
 The firm can effectively monitor its operations in all Places.
 Proximity to major potential clients since it is in the center of a very
busy town

Sourcing
The purchasing department shall have the duty of searching for potential
suppliers of materials required in the Company’s operations. Henceforth all
the departments shall have to make requisitions to the purchasing department
to buy the products required. The purchase order shall then be sent to the
best selected suppliers to deliver the required raw prodducts.

Facilities and improvements

xxxii
Discussions to acquire the business offices are already concluded and
management expects to start immediately the company has been
incorporated. The offices are spacious enough and this gives the company
enough confidence in whatever it plans to fulfill. The facilities will be
renovated to acquire a modern facade so that its appearance can easily make
the clients develop trust and attractiveness to the company.
The premise is strategically located along the highway in a highly hygienic
environment.
We plan to expand the premise by acquiring our own permanent structures in
8 years of operation.

Capacity Utilization

We expect to have full production utilization as the production equipments

and qualified staff will be used and available full time throughout the day for
12 hours and 7 days a week to try and meet the demands of the market and
satisfy the customer needs.

Operating procedures
The company’s operations will take the following procedure, and this will
include;
 The operations will be based on the strict internal control systems.
 All procurement and payment shall be authorized by the managing
director.
 All transactions shall be adequately recorded and captured in the books
of accounts by the financial manager.
 Operations shall be planned by respective departments forwarded to the
Managing Director for approval.

Quality control

xxxiii
The company shall apply overall Quality Management techniques in order to
achieve its stated objectives/goals. This shall be guaranteed through:
 Continuous improvement in equipment storage and service performance.
 Maintaining inventory at the lowest cost levels.
 Focus on service and production quality and value for money.

Inventory and cost control.

Stock/Inventory control will be based on predetermining each item of stock
in the stores for critical material control. Samuel Sports and Fitness Centre
will make sure that all resources are acquired on ‘just in time’ basis, that is,
as materials are getting finished, more are stocked to avoid losses. The
company will also use a minimum recovery approach by spending less
whenever possible to minimize costs and forego avoidable losses.

Sales Literature.
Samuel Sports and Fitness Centre will begin with a general corporate
brochure with established positioning in the market. This brochure will be
developed as part of the startup expenses. A business catalogue will also be
developed, this will include services to be offered and this will be sent to the
target customers.

Pre-operation expenses

Table 2: Schedule for pre-operational expenses

ITEMS Amount (Ushs)

Rent for one year 3,600,000
Installation of equipments and furniture 1,200,000
Trading License 500,000
Other relevant license 250,000
Machinery 1.500,000
Total 7,050,000

xxxiv
CHAPTER TEN

FINANCIAL PLAN

Introduction
The acknowledged financial statements that will be prepared by the company
include; Cash Flow Statement, Income Statement, Balance Sheet, Statement
of Changes in Equity, Statement of Affairs and other relevant financial
statements as prepared by the company for a given period of operation. The
Financial Statements show information used to predict, compare, analyze,
evaluate and compute the company’s earnings, expenditures.

Sources of Finance
 Owners’ capital (share capital raised from selling of shares)
 Bank loans
 Suppliers’ credit

xxxv
  Debentures
 Retained earnings

Financial plan assertions and assumptions.

Samuel Sports and Fitness Centre will establish a withholding strategy on
profits where all the profits will be kept in the business for the first four
years with an objective of growing the business to attract better investment
opportunities. The retained profits will be used to clear company dues,
overhead expenses, add stock, pay off creditors.
Later on in the sixth year, the withholding strategy on profits will be 60%
and the company will have a dividend payment of 20%. The 30% will
continue to cater for the corporation tax where there are earnings in a year.

Working Capital Management

This will enable and surely make it possible for the company to focus on the
management of cash and cash equivalent items in terms of liquidity. This
will also look at exchangeable assets (stock) and indebtedness (liabilities).
This will be on short term assets and liabilities such as

Creditors, inventory, cash, debtors and bank balances. The company will also
provide a discount rate, credit facility management for its customers, and
develop an inventory and cash management policies.

Sales Forecast.
Samuel Sports and Fitness Centre approximates sales of 134 million shillings
in the first year of operation but this projected turnover is expected to shoot
up in the subsequent years. This revenue will be got as a result of offering
company services to the clients on both cash and credit basis.
Samuel Sports and Fitness Centre sales in the first four years are expected in
the following proportion;
1. The year 2021 sales shall be at 134,000,000
2. 2022 the sale will be at 150,000,000

xxxvi
 3. 2023, the sales will be 170,968,000.
4. 2024 we expect sales of 200,000,000
This actually shows that the sales are expected to keep on increasing every
year.

xxxvii
A BAR GRAPH SHOWING THE EXPECTED TOTAL SALES FOR
THE YEAR 2021-2024

A BAR GRAPH SHOWING THE

EXPECTED TOTAL SALES FOR THE
YEARS 2021-2024

200,000,000

170,968,000

150,000,000

134,000,000
TOTAL SALES IN MILLION (SHS)

0
2021 2022 2023 2024
YEARS

TOTAL SALES YEARS

xxxviii
BREAK EVEN ANALYSIS
For Samuel Sports and Fitness Centre the break-even analysis will be based
on the assumptions below;
 All costs will be separated into fixed and variable components.
 The variable element is constant per unit and the fixed element is
constant in total over the entire period.
 Constant selling price
 Inventories do not change. The number of units produced equals the
number of units sold.
 Accurate predictions of the company’s efficiency

The break-even shall be based on the averages of the first year of operation.
The estimated sales, operating expenses, fixed costs are clearly illustrated as
below;

Particulars Amount(SHS)
Sales 134,000,000

Total cost 44,284,500

Fixed costs(20% of the total cost) 8,856,900
Variable cost (80% of the total cost) 35,427,600

Sales 134,000,000
Less Variable cost
(80% of the total cost (35,427,600)

Total Contribution 98,572,400

Contribution per unit = Total contribution/Number of units

=98572400/5000

xxxix
 =19714.48

Break-even point (units) = Fixed costs ÷ Contribution per unit

=Fixed costs ÷ (Unit selling Price-Unit variable unit)
= (35,427,600) ÷ (500)
=70,855.2 units
=70,855 customers
Therefore, Break Even point = 35,427,600 ÷ 19714.48
= 449 customers

xl
 LOAN AMORTIZATION SCHEDULE

YEAR BEGINNING INSTALLMENT INTEREST PRINCIPLE ENDING

BALANCE PAYMENT BALANCE

1 53,750,000 21,613,670.7 5,375,000 16,238,670.7 37,511,329.3

2 37,511,329.3 21,613,670.7 3,751,132.93 17,862,537.77 19,648,791.53

3 19,648,791.53 21,613,670.7 1,964,879.153 19,648,791.55 0

xli
 SAMUEL SPORTS AND FITNESS CENTRE PROFORMA
INCOME STATEMENT
FOR THE FIRST THREE YEARS
DETAILS 2021 2022 2023

UGX Shs UGX Shs UGX Shs

Expected Sales Revenue 134,000,000 150,600,000 172,968,000

Cost of sales (46,492,500) (54,425,000) (66,475,000)
Gross Profit 87,507,500 96,165,000 106,493,000
Less: Operational expenses
Distribution 14,440,000 17,225,000 19,937,500
Administrative 9,850,000 11,895,000 14,283,500
Others 11,615,000 13,496,000 15,447,500
Finance cost 8,375,000 6,700,000 5,250,000
Operational profits 51,602,500 (53,496,000 56,842,500)
Profit before tax 43,227,500 46,796,000 51,574,500
30% corporation tax 12,968,250 14,038,900 15,472,350

NET PROFIT 30,259,250 32,757,200 36,102,150

xlii
SAMUEL SPORTS AND FITNESS CENTREPROFORMA BALANCE
SHEET FOR THE FIRST THREE YEARS
2021 2022 2023
UGX UGX UGX
Non-Current Assets
Furniture &fittings 198,025,000 194,064,500 190,183,000
Motor vehicles 49,403,000 46,932,000 44,586,000
Equipment 24,490,000 22,041,000 19,836,000

Current Assets
Debtors - 3,400,000 250,000
Prepayments 3,500,000 9,269,000 650,000
Bank &Cash 43,602,579.3 31,699,491.5 37,247,150
Total Assets 319,020,579.3 307,405,991.5 292,752,150

xliii
Equity & Liabilities
Share capital 251,250,000 251,250,000 251,250,000
Accumulated profits 30,259,250 32,757,200 36,102,150
Non-Current Liability
Bank Loan 37,511,329.3 19,648,791.53 -

Current Liabilities
Trade payables - 1,000,000 2,500,000
Other current liabilities - 2,750,000 2,900,000

Total Equity& Liabilities 319,020,579.3 307,405,991.5 292,752,150

SAMUEL SPORTS AND FITNESS CENTREPROFORMA CASH

FLOW STATEMENT
FOR THE FIRST THREE YEARS
DETAILS 2021 2022 2023
UGX UGX UGX
Cash in Flow
Balance b/f - 340,226,750 425,015,717
Equity 215,250,000 - -
Loan 53,750,000 - -
Sales 134,000,000 150,000,000 170,968,000
TOTALCASH IN 403,000,000 490,226,750 595,983,717

xliv
Cash Out Flow
Sales & Distribution 14,440,000 17,225,000 19,937,500
Loan Interest 5,375,000 3,751,132.93 1,964,879.153
Finance 18,375,000 16,700,000 15,250,000
Corporation Tax 12,968,250 14,038,900 15,472,350
Others 11,615,000 13,496,000 15,447,500
TOTAL CASH OUT (62,773,250) (65,209,283) (68,072,229)
ENDING BALANCE 340,226,750 425,015,717 527,911,487

APPENDIX I

SAMUEL SPORTS & FITNESS CENTRE

P.O BOX 199, 199 KALANGAALO

MITYANA DISTRICT

UGANDA

15th /NOVEMBER/ 2021:

THE MANAGER
STANNBIC BANK

xlv
P.O BOX 23
MITYANA
Dear Sir/Madam,

RE: APPLICATION FOR A LOAN FACILITY IN

YOUR BANK

In reference to the decision reached upon by the Board of directors to start up

a company, we therefore present our application to your Bank requesting for
a loan to enable us meet the financial needs of this undertaking.
The actual amount of the loan goes up to the tune of 251,250,000 shillings
(Two hundred fifty-one million two hundred fifty thousand shillings only)
that shall be paid back over a period of 3years at an interest rate quoted in the
bank brochure. The company has land put up for collateral security and we
are to comply with the formalities one needs to have access to his facility.
We promise to use the highest level of prudence to observe the financial
discipline required of us.
Enclosed here with are the financial projections of the venture for the three
consecutive years.
We shall be grateful for your positive consideration.
Yours faithfully,

LUKWAGO SAMUEL

MANAGING DIRECTOR

APPENDIX II

CURRICULUM VITAE MANAGING DIRECTOR

BIODATA

xlvi
SUR NAME: LUKWAGO
OTHER NAMES: SAMUEL
NATIONALITY: UGANDAN
DATE OF BIRTH: 15th, NOVEMBER, 1999
PLACE OF BIRTH: KALANGAALO
RELIGION: CATHOLIC
MARITAL STATUS: SINGLE
SPOKEN LANGUAGES: English and Luganda
CONTACTS: +256776260391, +256700343587
E-mail: lukwagosamuel62@gmail.com

A. EDUCATION BACKGROUND:
YEAR INSTITUTION AWARD
2019-2021 KYAMBOGO UNIVERSITY Diploma in physical education
and sports management
2018-2017 Kalangaalo SS U.A.C.E
2013-2016 Kalangaalo SS U.C.E
2005-2012 Serunyonyi p/s P.L.E

APPENDIX III

SHARE CERTIFICATE
CERTIFICAT
E NO: 00236/KLM

xlvii
SAMUEL SPORTS & FITNESS CENTRE

SHARE CERTIFICATE

This is to certify that LUKWAGO SAMUEL is the registered owner of

1612.5 of ordinary shares of Shs 10,000 each
Given under seal of the company the 16th day of November 2021

Signed
…………………………………………LUKWAGO SAMUEL

……………………………………….. NALUKWAGO RUTH

DECLARATION

I declare to the best of my knowledge that the information given above is

correct and vital

xlviii
 KYAMBOGO
UNIVERSITY

FACULTY OF SCINCE

DEPARTMENT OF SPORTS SCINCE

DIPLOMA IN PHYSICAL EDUCATION AND

SPORTS MANAGEMENT

COURSE UNIT: ENTREPRENEURSHIP SKILLS

TASK: BUSINESS PLAN

NAME: LUKWAGO SAMUEL

REG NO: 19/U/PSM/20804

LECTURER: MADAM NAKYOBE SAFINAH

SIGN: …………………………….

QUESTION

xlix