THIKA TECHNICAL TRAINING INSTITUTE

BUSINESS NAME: NUTRIHEALTH YOGHURT DEALERS

DEPARTMENT: CERTIFICATE IN SALES AND MARKETING

PRESENTER: Mercy Wangui

COURSE CODE: 1902/1

PRESENTED TO: KENYA NATIONAL EXAMINATION COUNCIL

DECLARATION
I declare that this work is my original work I complied and has not been represented by anybody
else or any other institution in Kenya, which is recognized by Kenya National Examination
Council.

Signature……………………………. Date
………………………………

i
NAME: MERCY WANGUI

ii
ACKNOWLEDGMENT
First, I acknowledge and give thanks to the almighty God for giving me the gift of life and
helping me until now. I also acknowledge my family for being supportive to me in everything I
need. Lastly, I sincere thank my supervisor MADAM SALOME of Thika Technical for his
professional guidance and tireless effort to assist me during my course of study.

iii
Table of Contents
DECLARATION..............................................................................................................................................ii
ACKNOWLEDGMENT...................................................................................................................................iii
EXECUTIVE SUMMARY...............................................................................................................................vii
1.0 BUSINESS DESCRIPTION...................................................................................................................vii
2.0 MARKETING PLAN............................................................................................................................vii
3.0 ORGANIZATIONAL AND MARKETING PLAN......................................................................................vii
4.0 PRODUCTION PLAN..........................................................................................................................vii
5.0 FINANCIAL PLAN..............................................................................................................................viii
CHAPTER ONE..............................................................................................................................................1
1.0 BUSINESS DESCRIPTION.....................................................................................................................1
1.1 BACKGROUND OF THE OWNER.........................................................................................................1
1.2 BUSINESS NAME................................................................................................................................1
1.3 BUSINESS LOCATION AND ADDRESS..................................................................................................1
1.4 FORM OF OWNERSHIP.......................................................................................................................3
1.5 TYPE OF BUSINESS.............................................................................................................................3
1.6 PRODUCT AND SERVICE.....................................................................................................................3
1.7 JUSTIFICATION OF OPPORTUNITY......................................................................................................4
1.8 INDUSTRY..........................................................................................................................................4
1.9 BUSINESS GOALS AND OBJECTIVES....................................................................................................4
1.9.1 Short term goals.........................................................................................................................4
1.9.2 Long term goals..........................................................................................................................4
1.9.3 Objectives...................................................................................................................................4
1.10 ENTRY AND GROWTH STRATEGY.....................................................................................................4
1.10.1 ENTRY PLAN..............................................................................................................................4
1.10.2 GROWTH PLAN.........................................................................................................................5
CHAPTER TWO.............................................................................................................................................6
2.0 MARKETING PLAN..............................................................................................................................6
2.1 CUSTOMERS.......................................................................................................................................6
2.2 MARKET SIZE......................................................................................................................................6
2.3 COMPETITION....................................................................................................................................7

iv
 2.3.1 STRENGTH AND WEAKNESS........................................................................................................7
2.4 METHOD OF PROMOTION AND ADVERTISEMENT.............................................................................8
2.5 PRICING STRATEGY............................................................................................................................8
2.6 SALES TACTICS...................................................................................................................................8
CHAPTER THREE..........................................................................................................................................9
3.0 ORGANISATION AND MANAGEMENT PLAN.......................................................................................9
3.1 MANAGEMENT..................................................................................................................................9
3.2 DUTIES AND RESPONSIBILITIES..........................................................................................................9
3.3 OTHER PERSONNEL..........................................................................................................................11
3.4 RECRUITMENT.................................................................................................................................12
3.5 TRAINING.........................................................................................................................................12
3.6 PROMOTIONS..................................................................................................................................12
3.7 REMUNERATION AND INCENTIVES..................................................................................................12
3.5 LICENSES PERMIT AND BY LAWS......................................................................................................13
3.5.1 LICENSES...................................................................................................................................13
3.5.2 PERMIT.....................................................................................................................................13
3.5.3 BY LAWS....................................................................................................................................13
3.6 SUPPORT SERVICES..........................................................................................................................13
3.6.1 BANKING SERVICES...................................................................................................................13
3.6.2 INSURANCE SERVICES...............................................................................................................13
3.6.3 CONSULTATION SERVICES.........................................................................................................14
3.6.4 LEGAL SERVICES........................................................................................................................14
CHAPTER FOUR..........................................................................................................................................15
4.0 PRODUCTION AND OPERATIONAL PLAN..........................................................................................15
4.1 PRODUCTION FACILITIES AND CAPACITY.........................................................................................15
4.2 PRODUCTION STRATEGY..................................................................................................................17
4.3 PRODUCTION PROCESS....................................................................................................................17
4.4 PROBLEMS AFFECTING PRODUCTION..............................................................................................17
4.4.1 HEALTH REGULATION...............................................................................................................17
4.4.2 SAFETY......................................................................................................................................17
4.5 OPERATIONAL COST/ INITIAL CAPITAL.............................................................................................18
CHAPTER FIVE............................................................................................................................................19
5.0 FINANCIAL PLAN..............................................................................................................................19

v
 5.1 PRE- OPERATION COST..................................................................................................................19
5.2 PRO-FORMA BALANCE SHEET..........................................................................................................20
5.3 WORKING CAPITAL..........................................................................................................................21
5.4 CASH FLOW PROJECTION.................................................................................................................22
5.5 PRO-FORMA INCOME STATEMENT..................................................................................................23
5.6 BREAK EVEN ANALYIS......................................................................................................................24
5.7 DESIRED FINANCING........................................................................................................................25
5.8 PROPOSED CAPITALIZATION............................................................................................................25
APPENDIX..................................................................................................................................................26

vi
EXECUTIVE SUMMARY
1.0 BUSINESS DESCRIPTION
The name of the business will be NUTRIHEALTH YOGHURT DEALERS.

The business will be owned and managed by Sharon Awuori who is currently a student at
Thika Technical Institute pursing certificate in Business management.

The form of the business will be sole proprietorship, which I will independently own the
business.

2.0 MARKETING PLAN

Customers will vary with their different grouping, retailers, individuals, wholesalers,
households and institutes like colleges and hospitals.

The business will offer different variety of goods (yoghurt based on flavors) and offers sale
services especially wholesalers and retail who purchase in large quantities.

The business will put in place competitive advantages to help do others competitors like
offering deliveries to customers.

3.0 ORGANIZATIONAL AND MARKETING PLAN

The business will comprise of a management team a director, finance, officer, production
manager, marketing manager, sales personnel and other personnel.

Promotion will be based on performance difference and merit acquired on day by day
activities and be promoted after a training period and when one gains sufficient experience in
a particular field.

4.0 PRODUCTION PLAN

The business will rent open large room for production services

vii
 Equipment like refrigerator, packaging containers, raw materials like milk and flavoring
product.

Upon settlement, expansion will be planned by acquiring another space and setting up
production equipment.

The production process will be value addition of milk into yoghurt. Milk is our primary raw
material. Fresh milk is put in fermentation tank adopts internal recycling mode and
dissymmetric regulation, stirrer, fast cooling down temperature in the meantime minimize
yoghurt viscosity for quality control.

5.0 FINANCIAL PLAN

The business will need a financial plan in order to maintain and control expense, realize the
steady growth on income, maintain owner equity and ensures continuous production. The
financial plan will help provide direction of the business goal and dreams. The intended
business is to use ksh. 500,000 as a capital which is to be required as follows: Personal
savings ksh.150, 000, loans from bank ksh.200, 000, Gift from friends ksh.70, 000 and
Family members ksh. 80,000.

viii
CHAPTER ONE
1.0 BUSINESS DESCRIPTION

1.1 BACKGROUND OF THE OWNER

The business will be owned and managed by Mercy Wangui who is currently a student
at Thika Technical Training Institute pursuing certificate in business management.
Mercy is a Kenyan nationality aged nineteen years by applying the knowledge and the
training in the field of entrepreneurship she will be able to run the business successfully.

1.2 BUSINESS NAME

The name of the business will be NUTRIHEALTH YOGHURT DEALER. It is derived
from the name Nutrient. The name will be used to influence customers understanding the
nutritional requirement in the yoghurt that the business will be producing.

1.3 BUSINESS LOCATION AND ADDRESS

The business will be located at Taita Taveta County along the Mombasa-Nairobi
Highway
Nutrihealth yoghurt dealer will operate under the following address.

NUTRIHEALTH YOGHURT DEALERS

P.O BOX 120
VOI
TEL. 0797126929
EMAIL ADDRESS: nutrihealthyoghurt51@ gmail.com

1
Nairobi - Mombasa highway

NUTRIHEALTH YOGHURT
DEALERS

2
1.4 FORM OF OWNERSHIP
Mercy will independently own the business. Nutrihealth yoghurt will be a sole
proprietorship form of a business.

1.4.1 Advantages of a sole proprietorship

I. One requires a little capital to start the business

II. Ownership is simplified
III. The proprietor enjoys profits alone
IV. Banking is easier and straight forward

1.4.2 Disadvantages of a sole proprietorship

I. It’s harder to sell the business

1.5 TYPE OF BUSINESS

The business will start from scratch whereby I will invest capital to start. The source of capital
will come from savings, friends, family and some from securing loan from bank. The business
will deal in small-scale yoghurt production and distribution in an aim of making profit with plans
of expansion and growth at near future. To achieve the following objectives of the intended
business I need to use ksh.500, 000 as a starting capital, which is to be acquired as follows,
Personal savings ksh.150, 000, Loans from bank ksh. 200,000, Gift from friends ksh. 70,000 and
Family members ksh. 80,0000

1.6 PRODUCT AND SERVICE

Nutrihealth yoghurt will be involved in value of additional of milk into yoghurt.

The yoghurt will be packed in reusable plastic containers of different sizes, to give customers a
variety of sizes to choose from based on their purchasing power.

Yoghurt in containers varying from 250ml 500ml 1, 3, 4 and 5 liters. Nutrihealth yoghurt will
help nourish the brain and relax the muscles and quench your thirst.

3
1.7 JUSTIFICATION OF OPPORTUNITY
I choose the opportunity in order to fill the business gap in that area and to supply yoghurt in
different places and ensures that the objectives of the business are met.

1.8 INDUSTRY
Nutrihealth yoghurt dealers will belong to the food and processing industry. Nutrihealth yoghurt
can also be a daily processing industry. The food industry is growing with modern invention like
refrigerator, value additional and infrastructure in general.

1.9 BUSINESS GOALS AND OBJECTIVES

Nutrihealth yoghurt dealers will setup both short term and long-term goals. The business will
create a market gap in the town for steady yoghurt in Voi town.

1.9.1 Short term goals

 To be the best yoghurt dealer.
 To offer best product to the customers.
 To make profit from the business

1.9.2 Long term goals

 The business will strive to become a quality leader in yoghurt production and
strive to penetrate the market.

1.9.3 Objectives
Nutrihealth yoghurt will put more effort to achieve set short-term goals. The goals like
profit maximization in volume of sales and reduction of production cost.

1.10 ENTRY AND GROWTH STRATEGY

1.10.1 ENTRY PLAN
The business will put in place competitive advantages to help do other competitor like offering
deliveries to customers.

4
Nutrihealth yoghurt will exploit weaknesses of other competitors to help ascertain market of our
product. Pricing will be done in reference to quantity of yoghurt one wishes to buy. The business
will offer free sample to new customers to help attract and retain customers.

1.10.2 GROWTH PLAN

Trend of business growth like need of bigger stores, need for more employees are signals
for business growth. Opportunities from growth trend will encourage opening of new
branches and increase in sales will signal business growth.

5
CHAPTER TWO
2.0 MARKETING PLAN
2.1 CUSTOMERS
The targeted customers will be resident of Taita Taveta County. Customers will vary with
their different grouping, retailers, household, individuals, wholesalers, and institutions like
colleges and hospitals. Majority of the customers will be small-scale retailers and
institutional like colleges and hospitals. Nutrihealth yoghurt will advertise its product by
mass media and use of sales representatives. The business will offer different variety of
goods (yoghurt based on flavors) and after sales services especially wholesalers and retails
who purchase in large quantities. Nutrihealth yoghurt will employ various method of sales
like over the counter for individual customers, consultative selling for long-term beneficial
sales relationship, non-manipulative selling and online selling.

2.2 MARKET SIZE

The market share is the estimated total sale unit given after a trading period may be per
month or even quarterly and yearly. The business market size will aim to sell 90% of
yoghurt made monthly.

Before market penetration

A B C TOTAL
SALES 20,000 40,000 40,0000 100,000
MARKET 20% 40% 40% 100%
SHARE

After market penetration

A B C D TOTAL
SALES 20,000 40,000 40,000 30,000 120,000
MARKET 17% 33% 33% 17% 100
SHARE

6
2.3 COMPETITION
The business will always need to look at what it is doing, consider factors that will led to its
success. Factors like after sales service, promotion and offers given to customers. The
business will listen to its customers and hence determine gaps to be filled in terms of supply.
Look at the business other potential competitor in term of assets, sales volume and market
share different. The business will analyze their weakness and plan to capitalize on them.

2.3.1 STRENGTH AND WEAKNESS

The business will face stiff competition from other related ventures like Beehives, Awaka
unique, Jakim yoghurt.

Their strengths and weaknesses includes the following,

NAME STRENGHTS WEAKNESSES

BEE HIVES YOGHURTS Long term experience as they
were established long ago
Offers credit facilities.
AWAKA UNIQUE Well established due to its
YOGHURT exposure.
Business buildings is spacious.
Poor location- They are far
from trading center.
Poor quality yoghurt.
They are expensive – They
charge more than the required
amount.
Poor marketing techniques.
Does not have variety of feeds.
Opens only on weekdays.
Charging high price hence they
are expensive.

JAKIM YOGHURT Many employees. Bad language.

High cost.

Less promotion.

7
2.4 METHOD OF PROMOTION AND ADVERTISEMENT
Nutrihealth yoghurt dealers will use various method to promote its product. Promotion will
be done via television where an advert of our product will be aired. The business will also
use billboards with a label pictures of our product. The product will air for 2 minutes every
hour in a day. When the business is up and running, the promotion campaign will give free
sample when introducing the product in a new area. Advertisement and promotion will be
5% of production cost. Promotion will be measured in increase in volume of sale.

2.5 PRICING STRATEGY

The business will determine its selling price by rationalizing its cost of production over
volume sales into percentage. The selling price will be determined by factors like, cost of
raw materials, market price and nature of competition without forgetting the income level of
targeted client. The actual selling price that is 500ml @ sh. 120 will be a great market share
factors. The business will give credit to its known large quantity customers while small-scale
retail customers will acquire credit on holidays and at the end month period. Discount will
be given to institutional customers like students on weekends and when one buys large
quantity by cash payment. Transport will be offered as an after sales-service, mainly to
large quantities buyers. Nutrihealth yoghurt will sell through distributors thus to get to a
great number of consumers sales agent will be motivated by sales discount when a given
agent achieves a given volume of sales. The business agent will be advised to cover densely
populated areas to increase volume of sales from large customers numbers.

2.6 SALES TACTICS

The business plan is to use distributors to get their product to reach our customers. Much
quantity product will be sold over the counter at our main station in Voi. Upon expansion,
the business will set up other station with both large and small-scale sales. All of our product
will be transported through roads by business assets (pickup van). Transportation cost will
be 2% of production cost. Mechanical and fuel are expected transport challenges to be
handled by ploughing back profit to solve when need be.

8
 CHAPTER THREE
3.0 ORGANISATION AND MANAGEMENT PLAN
3.1 MANAGEMENT
The business will comprise of the following as its management team, a director, production
manager, marketing manager, finance officer, sales personnel and other personnel.

3.2 DUTIES AND RESPONSIBILITIES

DIRECTOR

QUALIFICATIONS

i. Holds a `O’ level certificate

ii. Holds a certificate in business management
iii. Holds extension training skill
iv. A CPA level 6 certificate

DUTIES AND RESPONSIBILITIES

i. Identifying raw materials source of production

ii. Overall decision making
iii. Overall look and control of all assets

PRODUCTION MANAGER

QUALIFICATION

i. Holds a `O’ level certificate

ii. Holds a certificate in food science technology
iii. Training skill is an added advantage

DUTIES AND RESPONSIBILITIES

i. Overall look on production process

ii. In charge of quality control
iii. Overall look on packaging

9
 MARKETING MANAGER

QUALIFICATION

i. Holds a Diploma in marketing management

ii. Holds an art and design certificate
iii. Extension skills is an added advantage

DUTIES AND RESPONSIBILITIES

i. Marketing of the finished product

ii. Designing package material
iii. In charge of packaging

FINANCE OFFICER

QUALIFICATION

i. Holds a degree in finance

ii. A CPA level 6 certificate
iii. 2/4 years of experience

DUTIES AND RESPONSIBILITIES

i. Handling business account

ii. In charge of book keeping
iii. In charge of employee salaries

SALES PERSONNEL

QUALIFICATION

i. Holds a degree in sales marketing

ii. Socially presentable
iii. Good communication skill
iv. A driving license is an added advantage

10
DUTIES AND RESPONSIBILITIES

i. Handling selling of the final product

ii. Identifying market gap
iii. Transportation

3.3 OTHER PERSONNEL

These includes loading and offloading persons, packaging persons and a driver.

Managing director

Production manager Finance officer

Marketing Manager

Other Personnel

Sales Person

11
3.4 RECRUITMENT
The management team for Nutrihealth yoghurt dealers will comprise of a director, production
manager, marketing manager and sales person. Their recruitment into the business will be done
via interview, which give a wider option to choose. The director will not be interviewed since
she is the owner of the business. The management team through recruitment agencies and word
of mouth will recruit other personnel.

3.5 TRAINING
The business management team comprise of trained professional thus no much training needed.
However, subordinate staff will require training. Introduction training will be done on new
employees while on, job training will be undertaken when regular activities takes place.

3.6 PROMOTIONS
With time growth and expansion, promotion of employees will have to be done. Promotion will
be based on performance difference and merits acquired on day to today activities. Employees
can also be promoted after training period and when one gains sufficient experience in particular
field.

3.7 REMUNERATION AND INCENTIVES

Nutrihealth yoghurt will offer reasonable and agreeable salaries to its employees based on work
merit and qualification to motivate and retain them.

TITLE NUMBER MONTHLY PAY BENEFIT TOTAL

Production manager 1 30000 10000 40000

Marketing manager 1 25000 7000 31000

Sales Person 1 20000 5000 25000

12
3.5 LICENSES PERMIT AND BY LAWS
3.5.1 LICENSES
The business will acquire trading license in order to start trading. The license will be secured
from the city council office of sh. 1500. The purpose of the trading license is certify that goods
produced meet all the required specification and causes no harm up on human consumption.

3.5.2 PERMIT
The business will require recognized permit document from the Kenya Dairy Board. It will also
require Health Act Permit and mark of quality of KEBS.

3.5.3 BY LAWS
The business will need to comply with by law set by the County government officials. These by
law includes waste of garbage treatment control. There is a need to comply with by law to avoid
the business from getting into conflict with the lawgivers.

3.6 SUPPORT SERVICES

The business will need external support for effective performance, these support service will be
like banking service, consultation and legal service.

3.6.1 BANKING SERVICES

It is of great necessity for the business to have bank account. Nutrihealth yoghurt will open a
business account with KCB bank of Kenya. The purpose of the account is to help monitor
business finance and assets in a recognized institution. The account may offer as future credit
sources if the business need one.

3.6.2 INSURANCE SERVICES

The business will need to obtain an insurance policy based on highly expert risk. The business
will insure itself with TAI Insurance Company. Insure policy of insurance against theft and fire
disaster. The Insurance services will cost 1% of production cost.

13
3.6.3 CONSULTATION SERVICES
The business will consult business evaluator agencies. These is to help on future expansion and
expected growth. The director will do consultation.

3.6.4 LEGAL SERVICES

Nutrihealth yoghurt will require legal services when writing contract drafting legal letters,
interpreting labor laws and employment of workers. Spector legal firm will represent the
business for legal and law related services.

14
CHAPTER FOUR
4.0 PRODUCTION AND OPERATIONAL PLAN
4.1 PRODUCTION FACILITIES AND CAPACITY
The business will rent open large room for production services. Equipment like refrigerator,
packaging container, raw materials like milk and flavoring products like vanilla, strawberry and
chocolate. Level of production will be substituted to amount of raw material when producing.
The refrigerator will cost around sh.50000, packaging container for about sh. 10000, and raw
materials (milk) sh. 10000 and flavoring product sh. 5000. Upon settlement, expansion will be
planned by acquiring another space and setting up production equipment.

ITEMS QUANTITY COST CAPACITY

Office 3rooms 30,000 5 office personnel

Store 2rooms 20,000 1tons

Pickup van 1 150,000 2000cc

Electricity 2phase 15,000 1000KW

15
 OFFICE 1

OFFICE 2

OFFICE 3

PRODUCTION AREA
STORE

16
4.2 PRODUCTION STRATEGY
The production process will be valued additional milk into yoghurt. Milk is our primary raw
material. Fresh milk is put in fermentation tank, the tank adopts internal recycling mode and
dissymmetric regulation, stirrer, fast cooling down temperature, in the meantime minimize
yoghurt viscosity for quality control. For direct production workers skills like viscosity and
temperature regulation are of much necessity. Milk, which is largely required will be purchased
from daily farmers at retail price sh.25000.Stock control will be done by ensuring no production
until desired sales are achieved.

4.3 PRODUCTION PROCESS

Value addition that is milk fermentation will be one in order to get the finished product. After
fermentation is done in the fermentation tank, viscous yoghurt is let to cool. After cooling,
different quantity are scooped out and added into a mixture. All the fermented yoghurt is
flavored with different kind of flavors thus creating a variety of the finished product for
consumers to choose from in their preference. Production will be affected by some manageable
factors like sources of raw material (milk), and electricity available.

4.4 PROBLEMS AFFECTING PRODUCTION

4.4.1 HEALTH REGULATION
The business will adhere to the requirement by the public health, these is to ensure the product is
not contaminated and is fit for human consumption. These is necessary to prevent food poisoning
and lose of customers.

4.4.2 SAFETY
During production, it is of great importance to ensure the workers safety. Workers and visitors
on the production unit will have to wear protective cloths like mask, boots and gloves for their
own personal safety.

17
4.5 OPERATIONAL COST/ INITIAL CAPITAL
This capital will be used at the start of the business. The following are the items required to start
the business.

ITEM QUANTITY COST CAPACITY

Office 3rooms 30000 5 Office personnel
Store 2rooms 20000 1 ton(removable)
Pickup van 1 250000 2000cc
Electricity 15000 15000 100KW

18
CHAPTER FIVE
5.0 FINANCIAL PLAN
The business will need financial plan in order to, maintain and control expenses, realize
the steady growth on income, maintain owner equity and ensure continuous production.
The financial plan will help provide direction of the business goals and dreams. It will
help in inflation management and help control business expenditure.

5.1 PRE- OPERATION COST

This is the cost incurred before the start of the business.

ITEM COST
Utility bill 100,000
Rent deposit 30,000
Electricity 15,000
Pickup van 150,000
Refrigerator 50,000
Office tool 20,000
Packaging equipment 10,000
Raw materials 10,000
Trading license and permit 15,000
Advertisement and information for opening 2,500

TOTAL 352,5OO

19
5.2 PRO-FORMA BALANCE SHEET
This is a document showing the financial position of the business after the trading period,
maybe a month or a year.

FIXED ASSETS KSHS.

Pick up van 250,000
Electricity 15,000
Refrigerator 50,000
Total Fixed Assets 275,000
CURRENT ASSETS
Stock 10,000
Cash at bank 100,000
Cash at hand 30,000
Debtors 5,000
Total Current Assets 145,000
LESS CURRENT LIABILITIES
Creditors 10,000
Bank overdraft 15,000
Working Capital 20,000
Total Liabilities 45,000
FINANCED BY
Opening capital 500,000
Add Net Profit 100,000
Less Drawing 30,000
Closing Capital 50,000
Loans 10,000

20
5.3 WORKING CAPITAL

Cash at hand 30,000

Cash at bank 100,000
Debtors 5,000
Stock 10,000
TOTAL 145,000
LESS CURRENT LIABILITIES
Creditors 10,000
Bank overdraft 15,000
Accruals 20,000
TOTAL 45,000

WA=CA-CL

=145,000-45,000= 10,000

WA = Sh. 100,000

21
5.4 CASH FLOW PROJECTION
RECEIPTS JAN FEB MARC APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC
H
SALES 30,000 125,0000 249,000 427,000 711,500 906,500 1,246,00 1,382,500 1,591,000 1,857,000 2,185,000 2,479500

DEBTORS 20,000 45,000 30,000 50,000 60,000 80,000 70,000 40,000 60,000 90,000 70,000 80,000

DISCOUNT 5,000 40,000 10,000 120,000 30,000 49,000 60,000 38,500 750,000 70,000 80,000 58,000
RECEIVED

55,000 210,000 289,000 597,000 801,500 1,035,000 1,267,500 1,461,000 1,701,000 2,017,000 2,335,000 2,617,500

PAYMENT 30,000 50,000 70,000 60,000 60,000 60,000 80,000 80,000 80,000 90,000 100,000 100,000
SALARIES
AND
WAGES
CREDITORS 30,000 20,000 48,000 50,000 40,000 30,000 25,000 20,000 30,000 55,000 40,000 35,000

DISCOUNT 10,000 5,000 20,000 4,500 5,000 121,000 10,000 30,000 46,000 230,000 4,500 10,000
ALLOWED
70,000 75,000 138,000 114,500 105,000 211,000 115,000 130,000 156,000 168,000 144,500 145,500

BALANCED 125,000 285,000 427,000 711,000 906,500 1,246,000 1,382,500 1,591,000 1,857,000 2,185,000 2,479,500 2,763,000

22
5.5 PRO-FORMA INCOME STATEMENT

ITEM 2021 2022 2023

SALES 240,000 180,000 300,000
COST OF SALES 90,000 120,000 220,000
GROSS PROFIT 330,000 3,000,000 520,000
C/D
EXPENSES
SALARY AND 120,000 200,000 115,000
WAGE
RENT 90,000 90,000 90,000
TRANSPORT 50,000 60,000 90,000
WATER BILL 60,000 45,000 50,000
TOTAL 320,000 395,000 345,000
EXPENSES
NET PROFIT
BEFORE TAX 350,000 140,000 120,000
AFTER TAX 250,000 100,000 90,000
600,000 240,000 210,000

23
5.6 BREAK EVEN ANALYIS

Break Even = Fixed

Cost/Distribution Margin

Percentage year one = 1,035,000/88.3%= ksh 851,643.00

Year two = 405000/88.3% ksh

= 936,806.00

Year three = 505000/88.3%

= ksh 1,602,607.00

24
5.7 DESIRED FINANCING

DESCRIPTION AMOUNT
Pre-Operational cost 352,000

Working Capital 100,000

TOTAL 452,000

5.8 PROPOSED CAPITALIZATION

DESCRIPTION AMOUNT
Personal saving 150,000

Loans (long-term) 200,000

Gift from friends 70,000

Family members 80,000

TOTAL 500,000

25
APPENDIX

Nairobi - Mombasa highway

NUTRIHEALTH YOGHURT
DEALERS

26