JALENA BEE KEEPING

BUSINESS PLAN

PRESENTEND BY: JECINTA LEAH NAMUSIA

CENTER CODE: 509233

COURSE: DIPLOMA IN SUPPLY CHAIN

MANAGEMENT.

PRESENTED TO: KENYA NATIONAL EXAMINATION

COUNCIL FOR A PARTIAL FUFILMENT
IN DIPLOMA IN SUPPLY CHAIN
MANAGEMENT.

SUPERVISOR: MR. OCHIENG

EXAMINATION SERIES: NOVEMBER 2017

DECLARATION

Declaration by student

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I do declare that this is my original work and has not been sent to any examination
body before; no any part of this plan should be produced without my knowledge

Name ………………………Sign ……………………………………Date…………..

Declaration by supervisor

I declare that this work is well supervised and has meet all requirements needed for
approval

Name ……………………….Sign ………………………………..Date……………..

DEDICATION

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I dedicate this project to my lovely mum who fully financed me in my studies; also I
dedicate it to my parents for their support

ACKNOWLEDGEMENT

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Its my pleasure to extrapolate my heart felt gratitude’s to every daughter of the Eve
and Son of Adam who gave me the moral of writing down this elemental eminent
business plan

I wish to say thanks to my supervisor his prudent guidance and correlation while
writing my business plan. In addition to the sentiments, I acknowledge my friends,
my sister with my beloved cousins, my blessed without trepidation and my
outstanding dIt’s with a matter of inference to remember my beloved mother , I also
remember my colleagues of secretariat 016, Lastly I thank my God for the support of
health and fresh mind and determined knowledge they showed by helping me design
this business plan.

May the almighty man above bless them all.

TABLE OF CONTENTS

DECLARATION........................................................................................................................ii
Declaration by student............................................................................................................ii

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DEDICATION..........................................................................................................................iii
ACKNOWLEDGEMENT........................................................................................................iv
TABLE OF CONTENTS.......................................................................................................v
CHAPTER ONE........................................................................................................................1
1.0 EXECUTIVE SUMMARY..............................................................................................1
1.1 BUSINESS DESCRIPTION............................................................................................1
1.2 MARKET PLAN..............................................................................................................1
1.3 ORGANIZATION PLAN................................................................................................1
1.3 PRODUCTION PLAN.....................................................................................................1
1.4 FINANCIAL PLAN.........................................................................................................1
CHAPTER TWO........................................................................................................................2
2.0 BUSINESS DESCRIPTION............................................................................................2
2.1 BUSINESS NAME..........................................................................................................2
2.2 BUSINESS LOCATION AND ADRESS........................................................................2
2.2.1 BUSINESS LOCATION...............................................................................................2
2.3 FORM OF OWNERSHIP................................................................................................3
2.4 TYPE OF BUSINESS......................................................................................................3
2.5 PRODUCTS AND SERVICES........................................................................................4
2.6 JUSTIFICATION OF OPPORTUNITY...........................................................................4
2.6.1 LOCATION...................................................................................................................4
2.6.2 COMPETITION............................................................................................................4
2.6.3 TRANSPORT................................................................................................................4
2.7 INDUSTRY......................................................................................................................5
2.8 GOALS OF BUSINESS..................................................................................................5
2.8.1 LONGTERM GOALS..................................................................................................5
2.8.2 SHORT TERM GOALS................................................................................................5
2.9 ENTRY AND GROWTH STRATEGY............................................................................5
2.9.1 ENTRY STRATEGY.....................................................................................................5
2.9.2 GROWTH STRATEGY................................................................................................5
CHAPTER THREE....................................................................................................................6
3.0 MARKETING PLAN......................................................................................................6
3.1 CUSTOMERS..................................................................................................................6
3.2 MARKET SHARE...........................................................................................................6
3.3 COMPETITION..............................................................................................................7
3.4 METHODS OF PROMOTION AND ADVERTISING...................................................7
3.4.1 ADVERTISEMENT......................................................................................................8
3.4.2 MEDIA..........................................................................................................................8
3.4.3 FREQUENCY ADVERTISEMENT.............................................................................8

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 3.4.4 PROMOTION...............................................................................................................8
3.5 PRICING STRATEGY.....................................................................................................8
3.5.1 PRICE LIST..................................................................................................................9
3.6 SALES TACTICS............................................................................................................9
3.7 DISTRIBUTION STRATEGY........................................................................................9
CHAPTER FOUR....................................................................................................................10
4.0 ORGANIZATION/ MANAGEMENT PLAN...............................................................10
4.1 ORGANIZATION CHART............................................................................................10
4.2 KEY MANAGEMENT PERSONEL/BUSINESS MANAGER....................................11
4.3 OTHER BUSINESS PERSONEL.................................................................................12
4.4 RECRUITMENT, TRAINING AND PROMOTION OF PERSONEL.........................12
4.4.1 TRAINING..................................................................................................................13
4.4.2 PROMOTION.............................................................................................................13
4.5 REMUNERATION AND INCENTIVES FOR PERSONEL........................................13
4.7 OTHER SUPPORT SERVICES.....................................................................................14
CHAPTER FIVE......................................................................................................................15
5.0 OPERATIONAL/PRODUCTION PLAN......................................................................15
5.1 PRODUCTION FACILITIES AND CAPACITY..........................................................15
5.2 PRODUCTION STRATEGY.........................................................................................16
5.4 REGULATIONS AFFECTING OPERATIONS............................................................18
CHAPTER SIX........................................................................................................................19
FINANCIAL PLAN...................................................................................................................19
6.0 FINANCIAL PLAN.......................................................................................................19
6.1 PRE-OPERATIONAL COST........................................................................................19
6.2 WORKING CAPITAL...................................................................................................19
6.3 PROJECTED CASH FLOW FOR JIINUE BEE KEEPING YR ENDING 31ST
OCTOBER 2016..................................................................................................................20
6.4 PROJECTED CASH FLOW FOR JIINUE BEE KEEPING FOR YEAR ENDING
31ST OCTOBER 2017..........................................................................................................21
6.5 PROJECTED CASH FLOW FOR JAMILLAH BOUTIQUE FOR THE YR ENDING
31ST OCTOBER 2017..........................................................................................................22
6.5 PROJECTED TRADING PROFIT AND LOSS ACCOUNT FOR YEARS ENDING
24
6.6 BALANCE SHEET FOR THE YEARS ENDING 31ST..............................................25
OCT 2016, 2017, 2018 FOR JIINUE BEE KEEPING........................................................25
6.7 BREAK EVEN ANALYSIS..........................................................................................25
6.7 BREAK EVEN ANALYSIS FOR 2ND YEAR 2015.......................................................26
6.1.1 BREAK EVEN ANALYSIS FOR 3RD YEAR 2016..................................................26
6.1.2FINANCIAL REQUIREMENTS................................................................................27

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6.1.3 PROPOSED CAPITALIZATION...............................................................................28
6.1.4 EXPECTED PROFITABILITY RATION..................................................................29

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EXECUTIVE SUMMARY
1.1 BUSINESS DESCRIPTION
The name of the proposed business is SUNRISE STONE QUARRY. The business is located
in Ngeria shopping centre opposite chepkingen high school. The business is a sole
proprietorship owned by
The business will deal in supply of building and decorative stones, Gravels, Limestone,
Cement, Crushed Granite to customers.

1.2 MARKET PLAN

The business is located along a busy street and hence customers to enhance growth strategy
of the business.
The customers include:
i. Individual customers
ii. Construction Companies
iii. Blocks Molding Companies

1.3 ORGANIZATION PLAN

The organization structure would comprise the Stone Quarry manager, cashier and Stone
Quarry Casual Workers, Distribution Truck Drivers.

1.3 PRODUCTION PLAN

Duties will be given to the workers according to their experience and qualification.

1.4 FINANCIAL PLAN

To start the business the approximate capital needed is kshs 400,000 whereby kshs 200,000 is
from personal savings, kshs. 100,000 from friend’s contribution and the rest is from equity
bank. The amount contributed and borrowed is further expressed into ratio form as follows.
200000:100,000:100,000
2 : 1: 1

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 CHAPTER ONE
1.0 BUSINESS DESCRIPTION
SUNRISE STONE QUARRY is a business which will deal with the production and supply of
building and decorative stones, Gravels, Limestone, Cement, Crushed Granite which will be
distributed to the available market within and outside its environment.

1.1 BUSINESS NAME

The proposed business will go by the name SUNRISE QUARRY. The name originated from
a English word Sunrise meaning to arise, this name is chosen because this is an upcoming
business set to rise to a higher level.
1.2 BUSINESS LOCATION AND ADRESS
1.2.1 BUSINESS LOCATION
Sunrise Stone Quarry will be located at Ngeria shopping centre which is found along Eldoret
Nairobi road 500 meters from Chepkigen high school and besides Baraka mini supermarket
on your right it will attract customers from health centre, schools and institution.

Chepkigen high school

Eldoret Nairobi road

Baraka supermarket

Sunrise Stone Quarry

SUNRISE STONE QUARRY

P.O BOX 433,
ELDORET
TEL: 0719693387
LANDLINE: 05300632
Email: sunrisestonequarry75@gmail.com

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1.3 FORM OF OWNERSHIP
The business is a sole proprietorship kind. The reason for choosing this form of ownership is
because it will make sure that there is good management by the individual owner, quick
decision making. It will also guarantee job security, good contact with customers, job
satisfaction and enjoyment of profit alone.
The owner shall be responsible for any transactions made, proper management in the
enterprise would be ensured through the use of record and skills obtained from
entrepreneurial education.

Name:
Age: 21 years
Professional qualification: certificate in Civil Engineering technology.
Experience: civil engineering
Residence: Eldoret
1.4 TYPE OF BUSINESS
The business will operate as a production unit. The characteristics that justify this business
are:
It will serve the customers directly. This will enable the business to control the market.
It will make the customers to have loyalty to the business through direct relationship.
1.5 PRODUCTS AND SERVICES
The business will produce quality products at a fair price to its customers. Some of the
products the business will major on will include building and decorative stones, Gravels,
Limestone, Cement and Crushed Granite.
The services will involve the supply of this materials to customers and loading and
offloading. The product will be loaded depending on the customer quantity purchased.
1.6 JUSTIFICATION OF OPPORTUNITY.
The business is favored by the following reasons and location.

1.6.1 LOCATION.
The location of the business is strategically situated along a busy highway which near to the
police hence customers are free because there is security.

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1.6.2 COMPETITION.
Competitors are very few hence make a lot of sales as a result of making a reasonable profit.

1.6.3 TRANSPORT.
The location has good roads and security which facilitate the movement of tippers to and
from the business. The business found that there are unsatisfied local demand, export
orientation, import substitution and subcontracting in the growing industry hence they had
other alternatives of such services in order to solve the problem to the customers by doing so
they provide satisfied local demand to customers.
The business will also contribute to the community by creating employment to the local
people hence reduces rural – urban migration. In addition they provide local resource to
reduce the amount of money used to purchase the building materials far from their homes.
Furthermore they provide good services to customers.
1.7 INDUSTRY.
Sunrise Stone Quarry belongs to the building and Construction industry. the size of the firm is
medium. The technology used in the proposed business is labour. The average number of
employees is eighteen. The firm will install equipment like computers to help in the storage
of information about the business other than using the files.

1.8 GOALS OF BUSINESS

The business has both long and short term goals to meet.
1.8.1 LONGTERM GOALS.
i. To get large market centre
ii. To get maximum profit.

1.8.2 SHORT TERM GOALS

The business has a short term goal that is selling of quarry products and this is to be measured
in market percentage of 40% after six months.
1.9 ENTRY AND GROWTH STRATEGY.
1.9.1 ENTRY STRATEGY.
For the business to succeed it should have both advantage and disadvantages. One of the most
advantages of competitor is that the entrepreneur will make sure to be time conscious and
commitment to the job. The business should be stable, affordable and have a fair price which

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seems to attract the attention of customers. Most of the entrepreneur has no good means of
attracting customers hence leading to loss.

1.9.2 GROWTH STRATEGY

Opportunity occurs in the business when there is a gap for example poor service. In this
situation there will be increase in capital for expansion of the business.
To create more space for circulation of goods. Opening other branches and increasing the
number of workers as the business grows which later result to increased sales volume.

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 CHAPTER TWO
2.0 MARKETING PLAN
Marketing is a human activity given to customers to satisfy their needs and went through
exchange process.

2.1 CUSTOMERS
Sunrise Stone Quarry will target a wide variety as potential customers on its products this
will range from those buying the product in singly to those purchasing the product in large
quantities. This will ensure that the product gains popularity among customers. Among the
customers include:
i. Health centers: this institution includes chepkigen health centre and cheplaskei health
centre which is in serious stage of construction to become a modern health center.
Sunrise Stone Quarry will take advantage that the supplies supplying the products to the
health centers are inconsistent in their supply. The firm is also interested in the
institutions because they do their purchasing in weekly basis and in total they purchase
15% of the construction materials weekly.
ii. Learning institutions: the proposed business will target most of the learning institutions
as one of the main consumers of its products. Among the learning institutions include:
chepkigen high school and chepkigen primary school.
iii. Building and Construction Companies: the business also target various construction
companies within the Eldoret environment such as DITMAN which purchase
construction materials in large quantity during road construction.
2.2 MARKET SHARE.
The target of the business should serve approximately 2000 people from this 800 are from
Eldoret town, 500 from Burnt forest, 500 from Cheptiret and 200 others.
Name Population size Degree Percentage
Eldoret town 300 144 40%
Burnt Forest 500 90 25%
Cheptiret 500 90 25%
Others 200 36 10%
Total 2000 360 100%

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2.3 COMPETITION.
For every business to grow in the right direction and improve the quality of its products and
services there must be a person or a farm who offers the same product or service, by then
everyone will try to improve the quality of the service they offer to the potential customers.
Sunrise Stone Quarry recognizes its competitor as a source of strength as it keeps the farm at
its feet all the time in terms of good quality provision of goods and services.
The competitors include:
i. Jiinue Quarry Center
ii. Cheptiret Quarry
The competitor’s location of their business is close to each other. The competition is one of
the environmental factors that affect the success of any business. The size of the competitors
business is medium.
Comparison between the competitors.

Particulars Quality Quantity Age Packaging

Jiinue Quarry Low quality Small quantity 3 years Poor packaging
product
Cheptiret Very low Small quantity 2years No packaging
Quarry quality product
Sunrise Stone High quality High quantities New Well packaged
Quarry product
The business should plan on how to capitalize to the weakness of the competitors by
providing discounts and sell the products at fair prices.
2.4 METHODS OF PROMOTION AND ADVERTISING.
Advertising and promotion will be valued greatly Sunrise Stone Quarry as it popularizes the
firms existence.
2.4.1 ADVERTISEMENT
Sunrise Stone Quarry will invest most of its resources at the preliminary stages to make sure
that the firm is known. Modes that will be used include:
2.4.2 MEDIA.
After identifying its potential customers, the business will now make some form of inquiry to
know which radio stations does its potential customers like most to listen, after doing this it

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will now be in a position to identity which radio station to use. Among the radio station that
the farm selected include kass FM, citizen radio and sayare.
2.4.3 FREQUENCY ADVERTISEMENT.
The business will offer advertisement twice a week for the business to be known that is
Monday and Wednesday. The cost of advertising is kshs 250 per day and per station which
leads to 1500/= per week.
2.4.4 PROMOTION
Among the means of promotion method that Sunrise Stone Quarry will use include:
Producing of calendars: this are calendars bearing the name of the business, this will create
awareness among the public. As the business gains stability in the future and public. As the
business gains stability in the future and makes good profits, it will consider participating in
community base activities such as assisting the less fortunate members in the community and
also cleaning of the environment.
2.5 PRICING STRATEGY.
Good pricing strategy is very crucial for the products that the firm will be producing as it will
determine the number of customers in the business.
Before the business sets/fixes its prices for the goods.
It will first consider some factors including the following:
i. The profit margin that the firm is expecting to get from the sales that it makes.
ii. The cost production incurred by the farm to product the goods.
Sunrise Stone Quarry will balance the above factors to ensure that it comes up with a
standard pricing which is friendlier to the customers.
2.6 SALES TACTICS
As the cure subject of Sunrise Stone Quarry is to maximize profit from the sales it has to
adopt very efficient selling system that will encourage the potential customers to queen in the
premises;

i. Direct sales: customers will pack and pay directly.

ii. Geographical area.
The business is located in a very good geographical area that is flat area in order to meet the
customer’s needs.

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 CHAPTER THREE
3.0 ORGANIZATION/ MANAGEMENT PLAN.
It will involve the contribution by the management and other supportive staff.

3.1 ORGANIZATION CHART.

MANAGER

ASSISTANT MANAGER

SUPPLIERS CASHIER ATTENDANT

3.2 KEY MANAGEMENT PERSONEL/BUSINESS MANAGER

MANAGER
PERSONAL QUALIFICATION.
MANAGER.
i. Bachelors Degree in business administration
ii. Diploma in Civil Engineering.
iii. Computer literate.
iv. 2 years experience in related friend.
Salary 12000, allowance 4, 000

QUARRY CASUAL WORKERS

i. Diploma in supply management
ii. Have good public relationship

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iii. Ensure all the tender are well attend.
Salary 8000 allowance 3000.

CASHIER
i. Diploma in account.
ii. Computer literate.
iii. Work experience of at least 2 years.
Salary 6000 allowance 2000.
DUTIES AND RESPOINSIBILITY OF MANAGERS.
i. He is in charge of recruiting employees.
ii. Decision maker on matters of the farm.
iii. Source for market of the farm products.

3.3 OTHER BUSINESS PERSONEL

WATCHMAN

QUALIFICATION.
i. Form four leaver.
RESPONSIBILITY
i. To maintain safety and security.
Salary 4000 per month.

CLEANERS.
QUALIFICATION
i. Form four leaver.
ii. Be need and clean.
RESPONSIBILITY
Make the office and environment tidy.
Salary 2500 per month.

3.4 RECRUITMENT, TRAINING AND PROMOTION OF PERSONEL.

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For effective running of the business firm, Sunrise firm will ensure that it employs very
qualified staff to ensure that the operations of the farm are run well. This will be obtaining
from training institutions, recruitment bureaus.
The firm will be very keen on training institutions, recruitment bureaus.
The farm will be very keen on this process to ensure that persons of good integrity are
employed to avoid mismanagement of the farm resources and by this the firm will inquire for
reference from the employees especially those who have been employed in other organization
before. They will also give specifications on the type of employees they require for the
available vacancies.
Upon the introduction of new techniques in Quarry management, the existing employees
need to be trained to cope up with the changes. This ensures that the productivity.
3.4.1 TRAINING
Upon the introduction of new techniques in Quarry management, the existing employees
need to be trained to cope up with the changes. This ensure that the productivity of the firm is
raised and enabling it to compete favorably with the existing firms. Sunrise Stone Quarry will
also let its employees especially the bee attendant to attend seminars to acquire better skills
on handling the quarry products.
3.4.2 PROMOTION
Workers who are self driven, discipline and cooperative will be promoted to the next stage of
job due to their effort. While those who are lazy will remain or fire them out.
3.5 REMUNERATION AND INCENTIVES FOR PERSONEL.
Then workers are rewarded a follows:
 Medical allowance
 House allowance.
 Job security
 Insurance cover
Salaries are added according to the employee’s effort to the work and commitment. This is to
motivate them to put move effort and work extra hard.
Table of employees and rewards.

Position No. Basic pay Allowance Gross pay.

Quarry Site 1 32000 2400 34400
Manager

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 Quarry Casual 2 18000 2000 20000
Workers
Cashier 2 16000 2000 18000
Watchman 2 13000 1000 14000
Total 9 39000 12000 6000

3.6 LICENSES, PERMITS AND BY-LAWS.

In Sunrise Stone Quarry the following are required: license and permit.
Single business permit from Eldoret town council the cost is kshs 1500 per month from
Kenya revenue authority.
Business license from Eldoret municipal council amounting kshs 800 month.
3.7 OTHER SUPPORT SERVICES.
These are other supportive services required for the success of the business. They include:
 Electricity
 Postal services
 Telephone services.
Electricity is to provide light especially at night and even when harvesting honey.
Postal services to facilitate communication between the business and the customers.

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 CHAPTER FOUR
4.0 OPERATIONAL/PRODUCTION PLAN.
Sunrise Stone Quarry has its main objectives in the provision of high quality goods and
services. This will ensure that the firm captures the competence of its potential customers.
Also the quality of control that the firm will adopt will be of high standard. This will ensure
that the operations of the farm are managed in orderly and efficient manner.

4.1 PRODUCTION FACILITIES AND CAPACITY.

For efficiency to be achieved in the firm physical facilities should be put in place. They will
be maintained to ensure that they are always in operation. This will ensure that the cost of
repairs is reduced thus reducing the cost of production. The physical facilities that are
required by the firm include.

EQUIPMENT QUANTITY COST PER TOTAL COSTS

ITEM
Tools and 1,500000
Equipment’s
TRUCK/TIPPERS 5 3000000 15,000000
Scavators 3 6000000 18,000000
Protective clothing 6 600 3600
Total 34,503,600

The equipment to be leased has to be leased when they are urgently needed to be used while
the ones to be hired are to be hired at a cost applies to the leased equipment’s.
The amount depends on which type of items to be leased or hired.
The firm will ensure that its tools and equipment’s are well maintained to operations in the
firm running smoothly and reduce the labour causes by failure of machines. This also ensures
these machines are kept at a maximum level.

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1

4.2 PRODUCTION STRATEGY.

The proposed business will adopt product method that will enable it to increase its level of
sales with the lower cost of production. This will enable the firm to earn profit of the
activities its operation.
Sunrise Stone Quarry will also consider the cost of transportation of goods to its customer’s
premises; the firm will set aside an average of 200000 per month.
Sunrise Stone Quarry will also have its labour force divided into:
i. Direct labour: those dealing directly with the excavation.
ii. Indirect labour: those involved in the management. The direct labour will be
those people who will perform the following:
Salaries and wages 120000
Electricity 2000
Advertising 6000
Transportation 2000
Maintenance {miscellaneous} 15000
Interest on loan 10000
Total 66500

4.3 PRODUCTION PROCESS

The exact production steps of the products as follows. The management would inquiries what
nature of the materials needed by the customers.
I. The business would order for the materials to be stocked.
II. Products are purchased from the other bee keepers.
III. Goods and products are sorted out according to their quality and size.
IV. The products are then displayed on the shelves for the customers to buy the items.
Payments are paid at the cashier’s desk.
V. The attendant packs them.
VI. The customers are then appreciated and welcomed again.
4.4 REGULATIONS AFFECTING OPERATIONS.

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 i. Health regulations: this is mostly done to the employees when they are unwell. They are
given a sick leave by the management also medical allowance. This is conducive
environment for the workers and ensures that there is a latrine.
ii. Safety regulation: the proposed business will be fair on the association formed by the
business men on the area and the watchmen would be a cost by the businessmen.
iii. Environmental safety: the management will ensure that the working environment is clean
and organized for the business operations.

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 CHAPTER FIVE

5.0FINANCIAL PLAN
For any successful enterprise ventures, financial records are very gorgeous considering this
proud opinion, Sunrise Stone Quarry will adopt the below financial plan, this plan was
proposed after an intensive study that was done.
5.1 PRE-OPERATIONAL COST
This is the amount of money used before the business was started.
ITEM AMOUNT (KSH)
Materials 20000
Cost of cloths and dress 30000
Rent 10000
Electricity 2500
Tools and equipment 8780
Permit and License 6000
Advertisement 4000
Telephone 3000
TOTALS

5.2 WORKING CAPITAL

ITEM YEAR(1)2021 YEAR(2)2022 YEAR(3)2023

Cash at hand 720,000 790,000 830,000

Closing stock 10,000 12,000 15,000
Cash at bank 40,000 30,000 60,000
Creditors 12,000 10,000 14,000

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 5.3 PROJECTED CASH FLOW FOR SUNRISE STONE QUARRY YR ENDING 31ST OCTOBER 2021

PARTICULARS JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC TOTALS

BAL B/F 0 13500 18000 29800 37200 50850 74050 95850 129350 163250 199250 232350 264300
Cash sales 115000 117000 116000 118000 117000 120000 130000 140000 145000 130000 150000 155000 1553000
Capital Introduced 30,000 __ 20000 50000
Payment for Debtors __ __ 6000 8000 2000 16000
Total receipts 145000 117000 122000 118000 117000 128000 130000 140000 145000 152000 150000 155000 1619000
Payment:
Cash out 80,000 72000 70000 66000 64000 65000 68000 66000 70000 72000 74000 78000 845000
Salaries 26,800 27000 27000 27000 26800 27000 28000 28000 28500 29000 30000 32000 337100
Water bills 2000 1900 1800 2000 1700 1600 1800 2000 1900 1700 2100 2100 22600
Rent 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 72000
Electricity 2500 2200 2000 2100 1900 1800 1900 2000 2200 2100 2300 2500 25500
Repair 1200 400 200 500 250 300 500 200 300 150 4000
Advertisement 3200 __ 1500 500 2000 7200
Telephone 3000 2800 3200 3500 2700 2600 2500 2500 2000 2000 2200 2300 31300
Permit & License 6000 6000

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5.4 PROJECTED CASH FLOW FOR SUNRISE STONE QUARRY FOR YEAR ENDING 31ST OCTOBER 2022

PARTICULARS JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC TOTALS

BALANCE B/F 0 30500 71200 116800 165150 218250 267050 323100 377550 428600 483050 535450 587700

Cash sales 157000 157200 158000 155000 153000 154000 152000 156000 158000 160000 162000 162800 1885000

Capital introduced 10000 20000 20000 50000

Payment from debtors 2000 2000 3000 2000 5000 2000 1000 2000 19000

Totals receipts 167000 159200 160000 158000 173000 156000 172000 161000 160000 161000 162000 164800 1954000

Payment
Cash out 82000 7000 68000 67000 74500 65000 70000 66000 64000 65000 67000 68000 826000

Salaries 29200 29000 28900 28800 28000 28000 28900 28100 29900 29200 29150 29200 346350

Water bills 2200 2000 2100 2200 2100 2200 2100 2150 1900 1950 2300 2400 25600

Rent 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 72000

Electricity 2100 2000 22000 2150 23000 2000 2250 2200 2150 2100 2150 2250 25850

Repair maintenance 1000 6000 2000 1000 - 2000 - - 3000 - - - 15000

Advertisement 3000 2000 2000 2000 - - - - 1000 10000

Telephone 4000 3500 3200 2500 3500 2000 3200 2100 2000 2300 3000 3200 34500

Permit and licenses 6000 6000

Miscellaneous 1000 - - - 2000 - 1500 - - - - 500 5000

TOTAL PAYMENT 136500 118500 114400 109650 119900 107200 115950 106550 108950 106550 109600 112550 1366300

NET CASH BALANCE 30500 40700 45600 48350 53100 48800 56050 54450 51050 54450 52450 52250 587700

NEW BALANCE 30500 71200 118800 165150 218250 267050 323100 377550 428600 483050 535450 587700

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5.5 PROJECTED CASH FLOW FOR SUNRISE STONE QUARRY FOR THE YR ENDING 31ST OCTOBER 2023
PARTICULARS JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC TOTALS
BALANCE B/F 0 35100 87080 140200 197700 259600 320500 389150 456900 520950 583600 649900 716950
Cash sales 164000 164500 165000 162000 160000 159000 158800 161700 162200 164500 165000 166000 1952700

Capital introduced 10000 10000 20000 10000 50000

Payments from debtors 4000 3000 1000 4000 2000 3000 2000 2000 1000 22000

TOTALS RECIEPTS 168000 167500 166000 166000 170000 171000 178800 171700 165200 166500 167000 167000 2024700

Payments
Cash out 78000 68000 65000 63000 64000 65500 66000 64000 58000 59000 56000 57000 763500

Salaries 29900 29920 29980 29900 30000 29900 29900 29700 30000 31000 32000 32000 364200

Water bills 2300 2400 2200 2150 2100 2300 2150 2100 1950 2050 2350 2450 26200

Rent 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000 72000

Electricity 2200 2300 2400 2150 2200 2000 2200 2150 2200 2300 2350 2500 26950

Repair/maintenance 2000 4000 1800 2000 1000 2000 - - 3000 1200 - - 17000

Advertisement 2000 - 1000 1800 - - 2200 - - - 2000 - 9000

Telephone 2500 3200 3000 1500 2800 2400 1700 - - 1300 - - 18400

Permit and licenses 6000 - - - - - - - - - - - 6000

Miscellaneous 2000 - 1500 - - - - - - 1000 - - 4500

TOTAL PAYMENT 132900 115520 112880 108500 108100 110100 110150 103950 101150 103850 100700 99950 1307750

NET CASH 35100 51980 53120 57500 61900 60900 68650 67750 64050 62650 66300 67050 716950

NEW BALANCES 35100 87080 140200 197700 259600 320500 389150 456900 520950 583600 649900 716950

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 Assumption: The demand of the service is increasing with time
And there is increasing of working capital to satisfy the demand
5.6 PROJECTED TRADING PROFIT AND LOSS ACCOUNT FOR YEARS ENDING
31ST OCT 2021, 2022, 2023 FOR SUNRISE STONE QUARRY

PARTICULARS YEAR 2021 YEAR 2022 YEAR 2023

SALES 1,553,000 1,885,00 1,952,700
Less Direct Total cost 845,000 0
763,500
Gross Profit 708,000 826,000 1,059,000
EXPENSES 1,189,200
Salaries 337,100
Water Bills 22,600 346,350
Rent 72,000 25,600 364,200
Electricity 25,500 72,000
26,200
Telephone 31,300 25,850
Repair/Maintenance 4,000 34,500 72,000
Advertisement 7,200 15,000
26,950
Misallenous 4,000 10,000
Permit&License 6,000 5,000 18,400
Depreciation of 4,000 6,000
17,000
Equipment 513,700 3,800 544,100
TOTAL EXPENSES 194,300 514,900 9,000
NET PROFIT (9,715) (25,745)
4,500
Tax 5% 184,585 489,155
Net Profit after Tax 6,000
3610
547,860
641,340
(32,067)
609,273

Depreciation of fixed Assets is calculated with 5% on equipment

On reducing balance method
Comments: There was fluctuation of profit due to changes in demand
Of the products in different seasons

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5.7 BALANCE SHEET FOR THE YEARS ENDING 31ST
OCT 2021, 2022, 2023 FOR SUNRISE STONE QUARRY
Details YEAR 2021 YEAR 2022 YEAR 2023

Equipment cost 80,000 76,000 72,200

Less depreciation 4,000 3,800 3,610
76,000 72,200 68590
Current Assets
Cash in hand 264,300 587,700 716,950
Cash at Bank 40,000 30,000 60,000
Debtors 16,000 19,000 22,000
Closing stock 10,000 12,000 15,000
330,300 648,700 813,950
Less liabilities 406,300 720,900 882,540
Loan(youth group) 60,000
Creditors 12,000 10,000 14,000
(72,000) (10,000) (14,000)
(334,300) (710,900) 868,540
300,000 350,000 400,000
50,000 50,000 50,000
184,585 489,155 609,273
(200,285) (178,225) (190,733)
( 334,300) 710,900 868,540

5.8 BREAK EVEN ANALYSIS

BREAK EVEN ANALYSIS FOR 1ST YEAR 2021
Gross Profit =SALES-TOTAL DIRECT COSTS
=1,553,000-845,000
=708,000

Gross Profit Margin=Gross Profit *100

Sales
=708,000*100
1,553,000
=45.58%
Total overheads/Expenses for Year 1(2010) =513,700
Break even level of sales=Expenses * 100%
Gross Profit Margin
=513,700 *100
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 45.58
=1,127,029

BREAK EVEN ANALYSIS FOR 2ND YEAR 2022

Gross Profit =Sales-Total direct cost
=1,885,000-826,000
=1,127,029
Gross Profit Margin=Gross profit *100
Sales
=1,059,000 *100
1,885,000 =56.18%
Break even level of sales=Expenses *100
G.profit margin
=544,100 *100
56.18 =968,494

=968,494

BREAK EVEN ANALYSIS FOR 3RD YEAR 2023

Gross profit =sales-total direct costs.
=1,952,700-763,500
=1,189,200

Gross Profit Margin=Gross profit * 100

Sales
=1,189,200 *100
1,952,700
= 60.9%
Total Overheads/Expenses for year 3= 547,860
Break even level of sales=Expenses * 100
Gross profit margin
=547,860 *100
60.9

22
 =899,605.9

5.9 PROPOSED CAPITALIZATION

Total investments =50000000/=
Inheritance =1000000/=
Personal saving =8000000/=
Friends contribution =5500000/=
Youth funds =9,500,000/=
The preferred loan payment terms are:
10 monthly installments of Kshs 60000
Total percentage interest is 10%
Grace period of 5 months
The repayment period is 36 months

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