5521051538 LEKAMARIO JULIET NTEYIE

PLATINUM NUTRITION CONSULTANCY AND FITNESS GYM

P.O. BOX 133,

Nakuru,
Tel: 0700744048

TITLE : BUSINESS PLAN

PRESENTED BY : JULIET NTEYIE LEKAMARIO

INDEX NUMBER : 5521051538

PAPER NUMBER :
CENTRE NAME : RIFT VALLEY INSTITUTE OF SCIENCE AND
TECHNOLOGY

COURSE NAME : DIPLOMA IN NUTRITION AND DIETETICS MANAGEMENT

CENTRE CODE : 5521051538

PRESENTED TO : THE KENYA NATIONAL EXAMINATION

COUNCIL IN PARTIAL FULFILLMENT FOR THE AWARD OF DIPLOMA IN NUTRITION AND DIETETICS
MANAGEMENT

SUPERVISOR : MR KIOKO
EXAM SERIES : NOVEMBER /DECEMBER 2021

DECLARATION

I hereby declare that the contents of this business plan are my original work and it has never been presented by any
other person in this institution for any reward of diploma in nutrition and dietetics management .
Name : JULIET NTEYIE LEKAMARIO
Signature : ……………………………………………….

Date : ……………………………………………….

This business plan has been submitted with the approval of my lecturer

NAME : MR KIOKO
Signature : ……………………………………………….

Date : ………………………………………………
 DEDICATION

I dedicate this business plan to my parents for the support and encouragement towards my academic excellence .

God bless you abundantly.

 ACKNOWLEDGEMENT

My sincere and kind gratitude’s are accredited to my parents without their dedication and financial support; this work
would not have been possible.

I also acknowledge my supervisor who guided me to succeed in this work, for his constant support.

Table of Contents
DECLARATION................................................................................................................................................................................................. 1
DEDICATION.................................................................................................................................................................................................... 3
ACKNOWLEDGEMENT..................................................................................................................................................................................... 4
EXECUTIVE SUMMARY.................................................................................................................................................................................... 6
PROPOSED CAPITALIZATION..............................................................................................................................................................7
CHAPTER ONE................................................................................................................................................................................................. 7
1.0 BUSINESS DESCRIPTION........................................................................................................................................................................ 7
1.1 BACKGROUND INFORMATION........................................................................................................................................................8
1.2 NAME OF THE BUSINESS................................................................................................................................................................. 8
1.3 BUSINESS LOCATION AND ADDRESS.....................................................................................................................................................8
1.4 FORM OF OWNERSHIP..........................................................................................................................................................................9
1.5 THE PRODUCTS AND SERVICES..............................................................................................................................................................9
1.6 JUSTIFICATION OF OPPORTUNITY.......................................................................................................................................................10
1.7 INDUSTRY............................................................................................................................................................................................ 10
CHAPTER TWO.............................................................................................................................................................................................. 11
2.0 MARKETING PLAN............................................................................................................................................................................... 11
2.1CUSTOMERS......................................................................................................................................................................................... 11
2.2 COMPETITION..................................................................................................................................................................................... 12
2.3 MARKET SHARE................................................................................................................................................................................... 12
2.4ADVERTISING AND PROMOTION STRATEGY........................................................................................................................................13
2.5 PRICING STRATEGY.............................................................................................................................................................................. 14
2.6 SELLING TACTICS................................................................................................................................................................................. 15
2.7 DISTRIBUTION STRATEGY.................................................................................................................................................................... 15
CHAPTER THREE............................................................................................................................................................................................ 16
3.0 ORGANIZATIONAL AND MANAGEMENT PLAN....................................................................................................................................16
3.1 ORGANIZATIONAL CHART................................................................................................................................................................... 16
3.2 KEY MANAGEMENT, PERSONNEL, NUMBER AND DUTIES...................................................................................................................17
3.3RECRUITMENT, TRAINING AND PROMOTION......................................................................................................................................18
3.4REMUNERATION AND INCENTIVES......................................................................................................................................................18
3.5 LICENSE, PERMITS AND BY-LAWS........................................................................................................................................................19
3.6 SUPPORT SERVICE............................................................................................................................................................................... 20
CHAPTER FOUR............................................................................................................................................................................................. 22
4.0 OPERATION AND PRODUCTION PLAN.................................................................................................................................................22
4.1 PRODUCTIO, DESIGN AND DEVELOPMENT.........................................................................................................................................22
4.2 PRODUCTION, FACILITIES AND CAPACITIES.........................................................................................................................................22
4.3 PRODUCTION STRATEGY..................................................................................................................................................................... 23
4.5 REGULATIONS AFFECTING PERMITS (GOVERNMENT).........................................................................................................................24
CHAPTER FIVE................................................................................................................................................................................................. 1
5.0 FINANCIAL PLAN.................................................................................................................................................................................... 1
 5.1 PRE-OPERATIONAL COST.......................................................................................................................................................................1
5.2 WORKING CAPITAL................................................................................................................................................................................ 1
5.3 PROJECTED CASH STATEMENT............................................................................................................................................................27
5.4 PRO –FORMA INCOME STATEMENT....................................................................................................................................................27
5.5 PRO-FORMA BALANCE SHEET.............................................................................................................................................................28
5.6 BREAK EVEN LEVEL.............................................................................................................................................................................. 29
5.7 DESIRED FINANCING........................................................................................................................................................................... 31
5.8 PROPOSED CAPITALIZATION...............................................................................................................................................................31
APPENDIX...................................................................................................................................................................................................... 32

EXECUTIVE SUMMARY
Organized recently as a start-up business by founder JULIET NTEYIE LEKAMARIO as PLATINUM NUTRITION
CONSULTANCY AND FITNESS GYM established with the vision of becoming a full-service, state-of-the-art, multi-
sport complex. Situated in the NAKURU TOWN area near NAKURU SPORTS CLUB, PLATINUM NUTRITION
CONSULTANCY AND FITNESS GYM is uniquely positioned to capture an underserved marketplace for athletic
facilities in the NAKURU TOWN. Once established, PLATINUM NUTRITION CONSULTANCY AND FITNESS
GYM will be recognized as a pillar that promotes social and economic development within the city and surrounding
communities. According to research obtained from the owner, over the next five years, the Gym, Health and Fitness Clubs
industry will lift itself to success, benefiting from the revitalization in consumers’ discretionary spending. As consumers’
disposable income rises, more individuals will purchase gym memberships that include a plethora of amenities, compared
with low-cost memberships with few amenities that have fared well over the previous period. Moreover, while many
individuals will be time-strapped over the period, which may constrain demand for gym memberships, this trend will be
offset by growing demand for results-driven gyms that can help individuals achieve fitness goals in shorter time
increments. Organization plan contains the business manager and qualification, personnel number and duties, recruitment.
Training and promotion, remuneration and incentives, license and permits and by-laws and lastly support services, for
example, personal and group trainers, as well as fitness classes, will be popular. In the five years to 2023, revenue is
forecast to grow at an annualized rate of 2.8% due to more consumers purchasing high-cost industry services, such as
cohesive, individualized health plans that include trainers and nutritional guidance. Profit is also expected to slightly rise
from 8.6% of industry revenue in 2021 to 8.9% in 2023, as many gyms offer more high-margin services, such as group
personal training sessions, to strengthen their product portfolio and bolster member retention rates. It contains pre-
operational costs; working capital requirements projected cash flow, pro-forma balance sheet break even analysis, and
profitability tactics and desired financing.

PROPOSED CAPITALIZATION
ITEM AMOUNT

Loan 900000

Personal savings 7075210

Total 7975210

CHAPTER ONE

1.0 BUSINESS DESCRIPTION

The name of the business will be PLATINUM NUTRITION CONSULTANCY AND FITNESS GYM and it wills a
sole proprietorship. The business owner will be JULIET NTEYIE LEKAMARIO Who is 22 years. The business will
develop personalized fitness programmers and develop nutrition plans for client’s preferences.
The owner of the business does not have enough skills; she plans to hire skilled workers who will help her in running
and managing the business.
1.1 BACKGROUND INFORMATION

The name of the business owner is JULIET NTEYIE LEKAMARIO. She is a resident of Nakuru. The owner is
currently at Rift Valley Institute of Science and Technology. She started school in 2006 at LITTLE ANGELS primary
school from nursery and completed standard eight in the year 2013 and obtained a Kenya certificate of primary
education. In 2014 she joined St Mary’s Girls High School in IGOJI, she attained a B+ in Kenya certificate of
secondary school education. she later joined Rift Valley Institute of Science and Technology where she is continuing
with her studies pursuing a diploma in NUTRITION AND DIETETICS MANAGEMENT. Before she joined the
college, her parents used to have a NUTRITION CONSULTACY FIRM where she acquired a lot of experience. In
the college she learnt entrepreneurship education where she is continuing with her studies pursuing a diploma in
NUTRITION AND DIETETICS MANAGEMENT.
1.2 NAME OF THE BUSINESS
The name of the business will be PLATINUM NUTRITION CONSULTANCY AND FITNESS GYM and it wills a
sole proprietorship. The proposed business is scheduled to start operating in the year 2021 when the owner will be
through with her studies.
The vision is for the PLATINUM NUTRITION CONSULTANCY AND FITNESS GYM to be a multisport complex
that provides its clients with various services. A first-class fitness and lifestyle center, one full-size basketball court
that can also accommodate many other sports (i.e. volleyball, indoor soccer, etc.), a nutritional food and
beverage/lounge area, a lobby, and other amenities such as an administrative office, male/female restrooms, and a
childcare center will all be available in the facility. Along with these amenities, PLATINUM NUTRITION
CONSULTANCY AND FITNESS GYM will provide its clients with qualified and knowledgeable staff to make sure
all of their sport and fitness needs are met satisfactory.

MISSION STATEMENT

To be unique to educate and empower a life time of change.

VISION STATEMENT.

To help develop eating plans that promotes healthy metabolism, good immune response and healthy body weight.

1.3 BUSINESS LOCATION AND ADDRESS

The PLATINUM NUTRITION CONSULTANCY AND FITNESS GYM is easy to locate since it’s within the central
business district. It is situated along Nakuru Highway, opposite Galaxy hospital and next to Nakuru sports club.
The address of the business will be:
 PLATINUM NUTRITION CONSULTANCY AND FITNESS GYM

P.O. BOX 133

NAKURU

TEL NO. 0700744048

EMAIL: info @platinumncfe.co.ke

The proprietor decided to locate his business at NAKURU trading center because: -
- The area has good infrastructure
- There is high demand of GYM ACTIVITIES
- There is enough security
- It’s easy to get trading license
- There is availability of raw materials needed for good immune response and healthy body weight.

1.4 FORM OF OWNERSHIP

The business will be a sole proprietorship since PLATINUM NUTRITION CONSULTANCY AND FITNESS GYM
requires a lot of technical skills to manage the owner will employee trainers.
The owner intends to be her own boss in the business and all profit will be shared with no one else.
The owner will get more knowledge from attending seminars, reading business magazines and getting the latest news.
1.5 THE PRODUCTS AND SERVICES
The vision is for the PLATINUM NUTRITION CONSULTANCY AND FITNESS GYM to be a multisport complex
that provides its clients with various services. A first-class fitness and lifestyle center, one full-size basketball court
that can also accommodate many other sports (i.e. volleyball, indoor soccer, etc.), a nutritional food and
beverage/lounge area, a lobby, and other amenities such as an administrative office, male/female restrooms, and a
childcare center will all be available in the facility. Along with these amenities, PLATINUM NUTRITION
CONSULTANCY AND FITNESS GYM will provide its clients with qualified and knowledgeable staff to make sure
all of their sport and fitness needs are met satisfactory.

Hours of Operation

Box1 Sports Center will remain open 24 – 7 except for federally recognized holidays.

Other Key Items

Box1 Sports Center will also provide the following:

Facilities and amenities that are ADA& Veteran Accessible.

Open Gym time for sports specific recreation.

Specialized Training for athletes who want to improve their skill level.

Snack Bar/Nutrition Area: 8am – 8pm

Temporary Daycare accommodations for members and non-members.

Complimentary Self-Parking and Valet Parking for Special Events.

Complimentary Wi-Fi. & Utilities

Marketing & Sponsorship Opportunities.

Other features and services PLATINUM NUTRITION CONSULTANCY AND FITNESS GYM will have included:

1. Full-service restrooms for both men and women. Large benches and sinks facilities will all be included as well.

2. A childcare area that will allow members and non-members to access the facility at their convenience.

The childcare will be on the first level of the complex and have a large play area that will be continuously monitored
by our certified childcare staff. The staff will be responsible for the care and well-being of the children they are
watching, along with providing a fun and interesting environment for the children. This service will be offered
facility members and non-members for a very minimal fee.

3. An administrative area housing various office and a conference room will be located on the main floor of the
facility.

4. A pro shop will be strategically placed in PLATINUM NUTRITION CONSULTANCY AND FITNESS GYM to
attract impulsive buyers. Clients will pass through the pro shop upon entering and exiting the facility. The pro shop
will sell our own line of products and eventually sports shoes and apparel that will be available exclusively at
PLATINUM NUTRITION CONSULTANCY AND FITNESS GYM. The manager will be in charge of inventory for
the pro shop, and general staff will be involved in the daily sales and service.

1.6 JUSTIFICATION OF OPPORTUNITY

The proprietor has studied Diploma in Nutrition and Dietetics Management therefore the business will fit into her area
of specialization and an area that she has interest, knowledge as well as the skills. In order for the business to improve
or expand, one should have a good survey of the area which the business is located. Also, a survey of its competitors
is also important.

The proprietor has done regional surveillance of the area, which includes the availability of infrastructure, source of
supply for hair products, customer base, income levels and buying behavior patterns. Lastly a study survey of the
competitors in which weakness and strengths were noted down. From this surveillance, it is clear that the business is
worth venturing into. Also, through the research done by the proprietor it was noted that there was enough gap in
demand of hair products as well as the related services thus justifying this
1.7 INDUSTRY
The industry is under SPORTS INDUSTRY which will mainly be dealing with offering gym, fitness and healthy
consultations for either gender. The Industry is labor intensive in that its employees will do most of the work. Over
the past decade, the industry has experienced substantial growth in demand, and as a result, the breakdown of the
industry’s markets has also changed. The aging population has encouraged health and fitness clubs to widen their
target demographic beyond the traditional market of 18- to 35-year-olds. Industry operators are increasingly
expanding their target market to include 35- to 54-year-olds and individuals aged under 18. The majority of gym and
health club members are female, which account for about 57.0% of all gym, health and fitness club memberships and
have increased in recent years.

1.8 ENTRY AND GROWTH STRATEGY

Below is an overview of the PLATINUM NUTRITION CONSULTANCY AND FITNESS GYM Marketing Plan:

Step 1: Our Company shall develop a website to establish a presence on the internet to attract customers. Step 2:
Our Company shall establish a profile across various social media platforms to attract and market to

Potential customers (Facebook, twitter, etc.)

Step 3: Our Company shall place ads in various publications (newspapers, magazines, print media, etc.)

Step 4: Our Company will join and participate in networking events, chambers of commerce, and trade

Organizations in an effort to build relationships.

Step 5: Our company shall advertise through the purchase of media (radio spots, TV commercials, etc.)
 CHAPTER TWO

2.0 MARKETING PLAN

2.1CUSTOMERS
The following are the categories of the customers:
(a) Domestic customers.
(b)Institution customers.
(c) Commercial customers.
I. Domestic customers
This is people who live near the firm. The attendance by these customers is expected
To be high as compared to other customers. This will be catered for half of their transport as to
Motivate them.
These customers might purchase chairs, tables, boards, fireworks and sawdust.
ii. Institution customers
This are the institutions which are located around Nakuru such as Nakuru sports club, Upper Hill Secondary.
iii. Commercial customers
This is customers who buy goods for resale. These customers include; Hotels, Workshops. The
Quality of purchases depends on their past sales and the stock available.
2.2 COMPETITION
Below are lists of potential competitors that are currently located within 15 miles of our projected location:
Key Competitors

1) Anytime Fitness:
Description: Anytime Fitness is the fitness center that fits your on-the-go lifestyle. At our Copperas Cove,
TX, health club, patrons you can exercise any time using their own security-access key 24 hours a day, 7
days a week, 365 days a year. Amenities include private showers, personal trainers, HD TVs, and scheduled
workout classes.
2) Cove Fitness:
Description: Cove Fitness is a full-service health club that combines a full range of fitness and exercise
equipment and facilities with professional trainers, personally tailored programs, and group exercise classes.
Open
From 5:00am to 10:00pm, Cove Fitness has a 20,000 square foot facility and offers the following amenities
top of the line equipment, saunas, whirlpools, tanning beds, and a juice bar.
3) Gold’s Gym:
Description: Gold’s Gym, TX stocks the very latest cardio equipment, such as elliptical machines, stair
climbers, rowers, treadmills and stationary bikes as well as full sets of free weights and high-tech strength
training equipment. They offer options for every fitness level, from beginning exercisers to elite athletes
looking to sharpen their speed, agility, power and endurance. They offer a number of workout classes and
group training sessions for patrons on a daily basis.
4) Family Recreation Center - Lions Club Park:
Description: City owned and operated community center featuring a fitness center, fitness classes, family
activities, etc. (not 24 hours operated).
2.3 MARKET SHARE
From the research done by observation method shows that the number of customers that are within the range
from 400-800 persons and those customers who are outside the location ranges from 200-500 people.
For the owner of the business to increase her market share she would try all the level best to expand her
business. In order to be the best, she should consider customer’s preference of taste compared their
competitor’s price. Such that the customers may find their ways to his business because of fair and cheap
prices.
The formula below clearly indicates the estimated total of market share sales unit per purchase time
frequently of purchase per month.
The chart below clearly indicates the estimated total of market share sales unit per purchase time frequently
of purchase per month.
The chart below shares distribution and market share of the PLATINUM NUTRITION CONSULTANCY
AND FITNESS GYM
PLATINUM NUTRITION 15%
CONSULTANCY AND
FITNESS GYM
Gold’s Gym 15%
Family Recreation Center - 25%
Lions Club Park
Cove Fitness 15%
Anytime Fitness 20%
2.4ADVERTISING AND PROMOTION STRATEGY
The business products and services offered through the following means of advertisement and promotion.
✓Signboard
✓Posters
✓Calendar
✓Bill board
✓Television
a) Signboard-This will be placed on the neighboring market and institution like primary and secondary
School, Hospital and dispensary
The Signboard should show the location of the business and how far it's from the business.

PLATINUM NUTRITION CONSULTANCY AND

 FITNESS GYM

b) Billboard- The bill board will be located to the place whereby proposed business will be situated
indicating the business name and the trade mark of the products and services offered.
c) Calendars-The quality timber business will print many calendars portray good pictures and products and
services. It offers and gives customers a good reason for associating with business owner
d) Television-This will be more effective because it shows the design of the product though it is expensive it
is not commonly used as compared to newspaper will reach many people but due to illiteracy many may not
be in a position to understand what the advertisement is all about.
COST OF ADVERTISEMENT

SIGNBOARD 500
POSTALS 700
CALENDARS 600
BILLBOARDS 800
TELEVISION 1,500
NEWSPAPERS 900
TOTAL 5,000

PROMOTION
These will attract more customers marking the business achieve the set goals offers also have to be included
for attracting a good profit.
Customers who buy goods in bulky should be receiving good discount and free transport to motivate the final
enhance of profit maximization
COST OF PROMOTION
transport 1000

2.5 PRICING STRATEGY

Below is a proposed listing of our company’s pricing:
FAMILY 5000 PER MONTH
ADULTS 2000 PER MONTH
SENIORS 1500 PER MONTH
YOUTH 1000 PER MONTH
ADDITIONAL SERVICES
Sports Performance Training: KSH 200/month per person
2-3 Month Youth Sports Leagues (17 and younger): KSH50/child
 2-3 Month Adult Sports Leagues (18 and older): KSH 75/participant
1 Month of Personal Training Sessions: KSH 150/person
Premium Reserved Lockers: KSH 50/month
Food/Beverages: Price varies per menu item
The following aspects has to be considered
Factors to consider:
1. Government policy
The selling price will be expected by having a fix tax and having a control price of the commodities having
value added tax being charged and even the cost of having a permit license and added advantage to the
business.
2. Cost of products
The cost of production matters a great deal it has to be considered the amount spent on purchase any kind of
goods and services available.
3. Competitors selling prices
The business will first consider the pricing of other competitors before setting the prices products if the prices
are low the business sets a lower price on profit margins
2.6 SELLING TACTICS.
The business increase in volume of sales its employee effective sales tactics, PLATINUM NUTRITION
CONSULTANCY AND FITNESS GYM has the capability and enough resources to win the market and
customers mind at all costs the business will use tactics such as.
I. Time Schedule-Helps to ensure the business will run frequently with no obstacles.
II. Direct selling-The business will sale goods and services direct to customers on pry of goods and services
2.7 DISTRIBUTION STRATEGY
This is the channel by which business products flow from the producer to the customer, that is from business
owner to customers.
The owner will be selling his products direct to customers who will be paying in cash and also credit, this is
for the customers who are around the business and who are just reachable easily.
Also, the business will consider those customers who are from the business by offering transportation but
these customers will have to pay in cash once goods are supplied.
The owner of the business offers transportation open van which will be capable of carrying large quality of
products.
In case the breakdown of motor vehicle occurs when customers are in need, the business will have to hire or
use public vehicles to have products accessible to all customers.
 CHAPTER THREE
3.0 ORGANIZATIONAL AND MANAGEMENT PLAN
This refers to how the organization is planned and managed in order to achieve the organizational goals.

3.1 ORGANIZATIONAL CHART

This shows the flow of powers in s business, this is from the high class, middle class, to the lowest class.

ORGANIZATIONAL STRUCTURE

MANAGER

CONTROLLER

FOOD SERVICE MANAGER

TRAINNER
FITNESS MANAGER
3.2 KEY MANAGEMENT, PERSONNEL, NUMBER AND DUTIES
MANAGER - JULIET NTEYIE LEKAMARIO
-Oversee day to day operations of the company

-Oversee company finances/budgeting

-Purchasing equipment and supplies

-Human Resources: Hiring, Firing, Employee Performance Reviews

-Advertising/Marketing – Business Development

CONTROLLER

-Assists in preparing/overseeing the company’s financial records

-Prepares financial reports

-Administers company’s payroll

-Compiles company’s tax return

PERSONNEL PLAN*

Below is a summary of the company’s initial projected personnel plan:

JOB TITLE NO OF BASIC SALARY HOUSE TOTAL KSH

EMPLOYEES MONTHLY BASIS ALLOWANCES
MANAGER 1 20000 2000 22000
CONTROLLER 1 15000 2000 17000

FOOD SERVICE 1 17000 2000 19000

MANAGER
FITNESS 1 5000 1000 6000
MANAGER
TRAINNER 1 7000 1000 8000

TOTAL 5 72000
3.3RECRUITMENT, TRAINING AND PROMOTION
Recruitment of workers

The firm manager will conduct this during interview; she will interview the new firm’s staff as indicated in
advertising the vacancies in the local media. Any applicants will have to pay interview fee amounting to ash 500
each of which will not be refunded back. So as to recover the advertisement cost plus interview expenses.

Training plan for the workers

Training will be done to employees to increase their skills and knowledge for the benefit of the business; This will
increase their performance and credibility.

The type of services as part of training as scheduled according to managers plan will as follows; Orientation This
is the practical manual that shows the employees what to do in the premises.

Short courses

The business manager will plan seminars and workshops that deal with specified business to increase their
knowledge.

Promotion

Promotion is important to employees as it motivates them hence increasing productivity in the business.

The criteria for promotion will be experience, skills acquired in time for seminars and hard work.

3.4REMUNERATION AND INCENTIVES

Remuneration shows the salaries and wages of the organization and how the workers will be paid. This will be
calculated according to skills and experience. The table below shows the payment or salary of each staff.

The table below shows the payment or salary of each staff

JOB TITLE NO OF BASIC SALARY HOUSE TOTAL KSH

EMPLOYEES MONTHLY BASIS ALLOWANCES
MANAGER 1 20000 2000 22000
CONTROLLER 1 15000 2000 17000
 FOOD SERVICE 1 17000 2000 19000
MANAGER
FITNESS 1 5000 1000 6000
MANAGER
TRAINNER 1 7000 1000 8000

TOTAL 5 72000

Incentives

Incentives States how employees of the business will be motivated.

The following incentives will be offered

I. Job security

II. Free tea and lunch breaks

III. Medical cover-given an emergency while in business operations.

IV. Free transport services every month

V. House allowances not exceeding 10% of the monthly salary manager excluded.

3.5 LICENSE, PERMITS AND BY-LAWS

License, legal requirements

The type of license for the business will be trade lit from Nakuru Town County Council which will be charged on
monthly fee of Ksh 200.

The business registration name will be PLATINUM NUTRITION CONSULTANCY AND FITNESS GYM,
charged at a fee of Ksh 2500.
Permits

According to ministry of labor under Act 266 of the laws of Kenya there must be a working permit, the proprietor
will obtain the necessary permits to allow the business sale its products to the customers and carry out its business
activities.

Certificate to Trade

This will be obtained from the ministry of Trade and industry

Town Council Levy certificate will be issued by Nakuru County Council.

By- laws

These are the rules and regulations that governs the business to conduct its activities successfully.

The business should abide by-laws imposed by the ministry of commerce and industry.

Fire adequate and suitable mean extinguishing fire must be provided in the business.

3.6 SUPPORT SERVICE

These are various outside services that are needed to support the business operations.

Insurance Services

The firm will be insured against fire, theft and road accidents under well life insurance company. A works man
policy will also be undertaken in order to compensate employees in case of accidents. The insurer will also provide
legal advice towards security of the business. The proprietor will obtain insurance services from well life insurance
company where she will be paying insurance fee of Ksh 500 per month.

Communication

This will be provided by Safaricom Kenya at Nakuru town through Safaricom wireless and Safaricom landline
other services will be provided by postal corporation and G4s hence providing effective communication with
customers.
Banking services

The business will be established under ABC bank Nakuru Branch. This will give security for finances deposited
by the proprietor and also obtain loans for the business where necessary.
 CHAPTER FOUR
4.0 OPERATION AND PRODUCTION PLAN

4.1 PRODUCTIO, DESIGN AND DEVELOPMENT

The business will design its services to be of high quality with the intention of developing its services until it
offers many types and more fashionable design of gym practices. It intends to increase its services each year if the
profit will be promising. It also intends to order new equipment’s and more modernized and by this they will be
right well as to growing and developing science and technology in our country.

4.2 PRODUCTION, FACILITIES AND CAPACITIES.

Capital

It is liquid asset required by the business for operation. The total amount required for the business is ksh
600000.The business owner will attain the capital from

FAMILY CONTRIBUTION 200,000

PERSONAL SAVINGS 600,000

FRIEND 200,000

TOTAL 1,000,000

Premises

PLATINUM NUTRITION CONSULTANCY AND FITNESS GYM owner will be lucky for having already built
a gym center worthy cash 350,000 of which the business will be operating its business. By owning a Centre, this
will reduce rental charges for the business.
All machines and tools will be located at this premise.

ITEM QUATITY SUPPLIERS UNIT COST TOTAL COST

AB ROLLERS 5 BILAL 30,000 150,000

ENTERPRISES

ABDOMINAL 1 JUMA 15,000 15,000

BENCH ENTERPRISES

BENCH PRESS 1 KENS 5000 5000

ENTERPRISES

HACK SQUAT 2 JANES 1000 2000

ENTERPRISES

DUMB BELLS 3 J. HARDWARE 200 600

4.3 PRODUCTION STRATEGY

Monthly material equipment

NO TYPES OF QUALITY UNIT COST TOTAL COST

MATERIAL
1 COUNTER 2 200 400
BOOK
2 PEN AND DOZEN 150 150
PENCIL
3 WRISTLE TAG 1 150 150
4 SMITH 2 200 400
MACHINE
5 BARBELLS 5KG 50 250
6 TOTAL 700 1300
Monthly layout requirements for payment

JOB TITLE NO OF BASIC SALARY HOUSE TOTAL KSH

EMPLOYEES MONTHLY BASIS ALLOWANCES
MANAGER 1 20000 2000 22000
CONTROLLER 1 15000 2000 17000

FOOD SERVICE 1 17000 2000 19000

MANAGER
FITNESS 1 5000 1000 6000
MANAGER
TRAINNER 1 7000 1000 8000

TOTAL 5 72000

Monthly production expenses

EXPENSES AMOUNT PER MONTH

TRANSPORT 3000
SALARIES 72,000
ELECTRICTY 150
OTHERS 2000
TOTAL 65,050

4.5 REGULATIONS AFFECTING PERMITS (GOVERNMENT)

This is government regulations that intend to eliminate illegal operation in the country. The permit will cost ksh
1000

License

This will be obtained from the ministry of industrialization or local government through Nakuru County
Government.
This license will cost ksh 2000 per year.

Employment

Cap 226 deals with termination of workers.

Regulation of wages and Condition of employees Act 299 requiring employees to have a pin number NSSF and
NHIF among others.
 CHAPTER FIVE
5.0 FINANCIAL PLAN

5.1 PRE-OPERATIONAL COST

This is the insured before the opening of the business

ITEM AMOUNT KSH

ELECTRICITY 150

FURNITURE AND FITTINGS 5000

TOOLS AND MACHINERY 167,600

LICENSE 2000

PERMITS 1000

TRANSPORT 3000

ADVERTISEMENT 1000

TOTAL 179750

Assumption;

Tools and machinery will take the highest amount ksh 167600

5.2 WORKING CAPITAL

This is the amount of money required to operate the business on day to day basis.

YEAR YEAR YEAR

CURRENT ASSETS 2021 2022 2023

STOCK 270000 280000 290000

CASH IN HANDS 60000 600000 60000

1
 CASH AT BANK 80000 90000 10000

DEBTORS 20000 10000 10000

CURRENT 30000 20000

LIABILITY
CREDITORS

TOTAL 30000 20000

WORKINK G 400,000 440,000

CAPITAL

C.A-C.L

Assumptions!

Debtors decrease through the year.

2
 5.3 PROJECTED CASH STATEMENT
Projected cash flow statement for the year starting 1st jan and ending 31st Dec 2022

ITEMS JAN FEB MAR APR MAY JUN JULY AUG SEPT OCT NOV DEC TOTALS

Cash inflow

Bal B/F 0 803250 889850 1039180 118025 1261150 1327550 1458670 163880 1710850 1821400 2102150 15233100
0 0

Cash in hand 35000 28300 42000 20270 48000 36000 38000 40000 25000 24500 29650 33280 400000

Cash at bank 50000 40000 25000 60000 30000 45500 50000 75000 65000 55800 40000 63700 600000

Debtor 16600 14200 10000 9800 20200 12000 18000 22000 7600 9800 30500 29300 200000

Cash sale 640000 505000 590000 485000 590000 600000 550000 6500000 595000 620000 680000 700000

loans 600000 0 00 0 0 0 0 0 0 0 0 0 600000

Total cash 1310100 1390750 1556850 1614250 186845 1954650 1983550 2245670 233140 2420950 2601550 292830 2420660
inflow 0 0

Cash outflow

Purchases 300000 300000 320000 230000 400000 430000 320000 400000 420000 400000 300000 350000 4170000

Salaries 101000 101000 101000 101000 101000 101000 101000 101000 101000 101000 101000 101000 1212000

Rent 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 216000

Loan 17000 17000 17000 17000 17000 17000 17000 17000 17000 17000 17000 17000 204000
repayment

Loan interest 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000 96000

Advertisemen 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 60000

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t

Water 250 250 250 250 250 250 250 250 250 250 250 250 3000

Power 5000 4000 2500 3800 4300 4000 5000 5100 4200 3800 2500 4000 48200

Insurance 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 60000

licenses 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 24000

Fuel 40000 35000 34000 38000 41000 32000 37500 40000 36000 34000 35000 38000 440500

Telephone 1200 1000 800 950 1150 1000 850 1200 800 1000 950 850 11750

Postage 400 450 320 500 300 350 480 320 300 400 500 420 4740

Maintenance 4000 4200 3800 4500 4300 3500 4800 4000 3000 4100 4200 3800 48200

Total cash 506850 500900 517670 434000 607300 627100 524880 606870 620550 599550 499400 553320 6598390
outflow

Net cash flow 803250 889850 1039180 1180250 126115 1327550 1458670 1638800 171085 1821400 2102150 2375110 17608210
0 0

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5.4 PRO –FORMA INCOME STATEMENT
PRO- FORMA INCOME STATEMENT FOR PLATINUM NUTRITION CONSULTANCY
AND FITNESS GYM FOR THE ENDING 31ST OCTOMBER 2022

2022 2023 2024

SALES 107676 107680 10700
NET IN CASH 94103 942130 95003
LESS COST OF 29400 296000 30000
GOODS SOLD
GROSS PROFIT 172379 172293 172003

EXPENSES
SALARIES 7200 72000 72000
ELECTRICITY BILL 1800 1800 1800
REPAIR AND 1100 10000 9000
MAINTAINANCE
LKICESNEC 2000 2000 2000
TRANSPORT 36100 38000 39000
STATIONARY 4400 3800 3000
ADVERTISEMENT 10500 1000 9000

TOTAL EXPENSES 785800 776600 78380

NET PROFIT 164521 164527 164162

Gross profit =cost sales –cost of goods sold

.net profit = gross profit – expenses

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5.5 PRO-FORMA BALANCE SHEET
PRO-FORMA BALANCE SHEET FOR PLATINUM NUTRITION CONSULTANCY AND
FITNESS GYM FOR THE YEAR 2022, 2023, 2024.

ITEMS 2022 2023 2024

FIXED ASSSETS KSH KSH KSH

TOOLS AND 166000 167600

MACHINE

LESS 167600 5000

DEPRECIATION

FURNITURE AND 5000 5000

FITTINGS

TOTAL FIXED 171000 172600 172600

ASSET

CURRENT ASSETS 270000

STOCK

CASH IN HAND 60000 410000 720,000

CASH AT BANK 80000

TOTAL CURRENT 410000 410000 720000

ASSETS TOTAL 5810000 582600 892600

CURRENT
LIABILITIES

CREDITORS 28400 30000 20,000

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 EPLOYED 5552600 872000
CAPITAL FINANCE

OWNERS EQUITRY 400000

FMILY AND 152600

FRIENDS

TOTAL 581000 5826000 892600

LIABILITIES

5.6 BREAK EVEN LEVEL

This is the point at which the business tries to balance in terms of expenses and total sales:

ITEM COST(Kshs)

Electricity 10000

Purchases 50000

Transport 5000

Telephone and advertisement 2000

Lawyer 20000

Advisor 20000

TOTAL 107000

(i)Total contribution margin=

29
 Sales - variable costs

250000- 107000

=143000

(ii)Contribution margin percentage=

Contribution*100 /sales

100000*100/250000

= 40%

(iii)Determination of fixed costs

ITEMS COSTS (kshs)

Salaries 100000

License 4000

Insurance 3000

TOTAL 107000

(iv)Breakeven level =Total fixed costs/ contribution margin %

110550/40

= 2763 kshs

(E)EXPECTED PROBABILITY RATIOS

(i)Gross profit=Gross profit*100/sales

100000*100/250000

=40%

30
 (ii)Return on equity= Net profit*100/owners’ equity
85000*100/400000
= 21.25%
(ii)Return on investment=Net profit after tax*109/total investment
85000*100/600000
=14.16%

5.7 DESIRED FINANCING

ITEMS AMOUNT KSH

PRE-OPERATIONAL COSTS 78,000

WORKING CAPITAL 400,000

FIXED ASSETS 180,000

TOTAL 658000

5.8 PROPOSED CAPITALIZATION

FAMILY CONTRIBUTION 200,000

PERSONAL SAVINGS 600,000

FRIEND 200,000

TOTAL 1,000,000

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APPENDIX

HOSPITAL
Anytime Fitness

PLATINUM NUTRITION Cove

CONSULTANCY AND Fitness
FITNESS GYM

SUPERMARKET

GOLDS GYM

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