MULONZI CENTRAL TREE NURSERY CO.

LTD

DRAFT

BUSINESS PLAN
TO TRIPPLE PRODUCTION OF FRUIT & WOOD
SEEDLINGS

PREPARED JOINTLY BY: OJOK MULOZI SHUAIBO AND MR OKWIR CHARLES

RAY OF BIMUKA CAPITAL AND FINANCE CONSULT WITH SUPPORT FROM GIZ-
PRUDEV

PAGWARI WEST, ACORO

PARISH, PADER TOWN COUNCIL, PADER DISTRICT
Tel: 0786216603, 0759433553, 0783942435

JULY 2023

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Contents
0 EXECUTIVE SUMMARY............................................................................................................3
1.0 BACKGROUND AND BUSINESS PROFILE............................................................................6
1.1 Business Description..............................................................................................................6
1.2 Company Locations, contact details and facilities................................................................7
1.3 Tree Nursery operational activities.....................................................................................8
1.4 Company Vision:...................................................................................................................8
1.5 Mission:................................................................................................................................8
1.6 Company Objectives:.............................................................................................................8
1.7 Purpose of the Plan...............................................................................................................9
1.8 Business Concept..................................................................................................................9
1.9 Critical Success Factors for MAT(U) Tree Nursery..................................................................10
2.0 MARKETING........................................................................................................................11
2.1 Market Analysis...................................................................................................................11
2.2 Target Market and customers...............................................................................................11
2.3 Competitive analysis and advantage....................................................................................11
2.4 SWOT analysis....................................................................................................................12
3.0 ORGANIZATIONAL AND HUMAN RESOURCE PLAN..........................................................19
3.1 Introduction:.......................................................................................................................19
3.2 Roles and responsibilities.................................................................................................19
3.3 Remuneration of personnel..............................................................................................22
3.4 Recruitment....................................................................................................................23
3.5 Training and staff development........................................................................................23
4. FINANCIAL ASPECTS/PLAN................................................................................................24
4.0 Introduction....................................................................................................................24
4.1 Important Assumptions:..................................................................................................24
4.2 Investment Plan..................................................................................................................25
4.3 Projected Cash Flow (Shs )..............................................................................................25
4.2 Projected Profit and Loss (SHS)........................................................................................27

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0 EXECUTIVE SUMMARY
0.1 Introduction

Mulozi Central Tree Nursery Co Ltd is a legally registered limited c ompany and
managed by boards of directors. It’s located in Pagwari West, Acoro Parish,
Pader town council in Pader district. It was started in 2015 December and got
registered in 2018. Its main activities are raising, managing and
distributing/selling tree seedlings. It raises 9 species of both wood and fruit
trees. The funds for starting the project was saved from my employment as
bicycle repairer and it was 480,000= in a rented piece of land but later
purchased our own where the project currently sits.

Business Concept
The Company strategy to expand a well-managed profitable tree nursery and
become a leading supplier of a variety of seedlings. The project goal is to This will
be achieved through expanding the supply and distribution to the local
community but also through getting distribution contracts with government and
civil society institutions such as National Forestry Authority (NFA). It intends to
roll out extension services to farmers to practice agroforestry by buying more
trees from the company and plant it as one of the climate change measure.
0.2 Marketing
The market for tree seedlings has increased due to government intervention
through encouraging a forestation in the country. There is a new development
in the sector where people with large extracts of land are investing in planting
trees as a long time investment. There are also skilled personnel for developers
to plant trees at their sites. The market demand for the tree seedlings of
Eucalyptus grandis, Pinus Caribeae and Grevellia robusta for wood is estimated
3
to increase from 38% in 2010 to 47% by 2030 at the national level (NFA,
2011).This has alerted the Government through National Forestry Authority and District
Forestry Services to advocate for tree planting thus creating market for the tree seedlings.
The market coverage will be in Pader district and the neighboring areas of
Agago Kitgum, Otuke, Gulu and Lira districts.

The target customers are NGOs that supports the communities through tree
planting and beekeeping, District forest service’s that plants on the Government
land but managed by community, commercial tree planters like companies and
other pattern ships, individual farmers who are engaged in tree planting,
institutions which are churches and schools in and outside Pader District.
0.3 Management
The managing Director is the overall personnel at the business. The managing
director has over 10 years’ experience in operating nursery beds and he gives
direction to the business. He works with the team of specialized capabilities in
finance and marketing and through the assistant manager, the casual personnel
are managed by the director. Performance targets are set by the director for
each office and through reporting and their supervision.
0.4 Financials
The project requires an investment outlay of Shs 70,000,000 to expand Mulozi
central Tree Nursery Co. Ltd. Management of Mulozi central Tree Nursery Co.
Ltd have saved SHS 30,000,000 for this proposed expansion of the business and
they will require a loan facility of Shs 40,000,000 from a financial institution to
effectively implement the project. With this kind of investment the project Profit
and Loss account is presented in the table below:-
Year End Year 1 Year 2 Year 3 Year 4 Year 5

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Account Type Current Projected Projected Projected Projected
Sales 151,000,00 165,000,00 185,610,00 207,671,00 231,438,10
0 0 0 0 0
9,150,000 9,882,000 10,672,560 11,526,365 12,448,474
Cost of Sales
Gross Margin
94% 94% 94% 94% 95%
%
141,850,00 155,118,00 174,937,44 196,144,63 218,989,62
Gross profit 0 0 0 5 6
Operating 106,735,39 115,274,23
84,730,000 91,508,400 98,829,072
Expenses 8 0
Profit Before 103,715,39
57,120,000 63,609,600 76,108,368 89,409,237
Tax 6
Corporation
17,136,000 19,082,880 22,832,510 26,822,771 31,114,619
Tax 30%
Net Profit after
39,984,000 44,526,720 53,275,858 62,586,466 72,600,777
Tax
Net Margin % 26% 27% 29% 30.14% 31.37%

1.0 OVERVIEW/BACKGROUND OF THE PROJECT.

1.1 Business Description

1 0.1 Introduction
2 Mulozi Central Tree Nursery Co Ltd is a legally registered limited company
and managed by boards of directors. It’s located in Pagwari West, Acoro
Parish, Pader town council in Pader district. It was started in 2015 December
and got registered in 2018. Its main activities are raising, managing and
distributing/selling tree seedlings. It raises 9 species of both wood and fruit
trees. The funds for starting the project was saved from my employment as
bicycle repairer and it was 480,000= in a rented piece of land but later
purchased our own where the project currently sits.

5
3 I as Ojok Mulozi had passion for planting trees but couldn’t afford the
expensive seedlings then and opted to attend short courses in raising tree
seedlings to have my own production. It took me four years to stabilize in
the production process as I attended many short courses
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4.2 Company Locations, contact details and facilities
The business is located in Lwala Village Parwech Parish, Puranga Town Council,
and Pader District. The Business can be accessed through telephone
0782682785, 0760340788.

4.3 Tree Nursery operational activities

a) Collection and procurement of tree seeds and planting materials.

b) Site survey and clearance of construction work
c) Construction of seed beds and tree nursery bed
d) Sowing, transplanting, weeding and protection of tree seedlings from
animal, pests and diseases
e) Coordination, Marketing and supply of tree seedlings to farmers
f) Plough back for production of tree seedlings
g) Community Sensitization and monitoring.

1.4 Company Vision:

To become key contributor in the implementation of natural resources
programme and interventions.

1.5 Mission:
To improve the quality of life of the target population through effective private
forestry assistance for socio-economic and ecological benefits.

1.6 Company Objectives:

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 a) To promote commercial supply of quality tree seedlings and other planting
materials;
b) To support and demonstrate agroforestry practices and sustainable land
management.
c) To promote apiculture agroforestry system and marketing of apiculture
products
d) To promote coffee , cocoa, banana agroforestry tree seedlings
e) To promote commercial production and supply of citrus, mangoes,
Jackfruits , pawpaw and other tree seedlings
f) To promote renewable energy farming technology and knowledge
transfer.

1.7 Purpose of the Plan

The following are the purposes for the business plan to Mulozi central Tree
Nursery Co. Ltd.

• It provides for documentation of the business

• It encourages the owners and managers to analyze whether the
business is feasible or not.
• It is further intended to outline specific goals, benchmarks for success,
and action step timelines. This will guide the business with planned
improvements to facilities, implementation of improved management
practices, increased herd production and net income goals over the
planned period.
• It facilitates stakeholders’ strategic reflection on the business.

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 • It is a marketing tool for the business.
• It helps in general management of the business.

1.8 Business Concept

The Company strategy is to expand a well-managed profitable tree nursery and

become a leading supplier of a variety of seedlings. The project goal is to This will
be achieved through expanding the supply and distribution to the local
community but also through getting distribution contracts with government and
civil society institutions such as National Forestry Authority (NFA). It intends to
roll out extension services to farmers to practice agroforestry by buying more
trees from the company and plant it as one of the climate change measure.
The goals of the business concepts under this business plan is to expand the
well-managed profitable tree nursery to produce 100,000 high quality tree
seedlings annually

1.9 Critical Success Factors for MAT(U) Tree Nursery

The key elements that will be important in the growth of the Business include:

 Sell products of the highest quality with excellent customer service and
support.

 Satisfying the local demand before venturing into regional and national
markets.

 Retain customers to generate repeat purchases and make referrals.

 Continue to expand daily sales by adding to the variety of plants we sell.
 Communicate with our customers through creative advertising

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  Strong team (management, operational and technical) to implement the
business plan.
 Working capital investment to expand the business.

2.0 MARKETING
2.1 Market Analysis

The market for tree seedlings has increased due to government intervention
through encouraging a forestation in the country. There is a new development
in the sector where people with large extracts of land are investing in planting
trees as a long time investment. There are also skilled personnel for developers
to plant trees at their sites. The market demand for the tree seedlings of
Eucalyptus grandis, Pinus Caribeae and Grevellia robusta for wood is estimated
to increase from 38% in 2010 to 47% by 2030 at the national level (NFA,
2011).This has alerted the Government through National Forestry Authority and District
Forestry Services to advocate for tree planting thus creating market for the tree seedlings
2.2 Target Market and customers

The market coverage will be in Pader district and the neighboring areas of
Agago Kitgum, Otuke, Gulu and Lira districts.

9
The target customers are NGOs that supports the communities through tree
planting and beekeeping, District forest service’s that plants on the Government
land but managed by community, commercial tree planters like companies and
other pattern ships, individual farmers who are engaged in tree planting,
institutions which are churches and schools in and outside Pader District.
2.3 Competitive analysis and advantage

The nursery tree business is highly competitive, and it is important to maintain a

high level of customer service, offer quality products, and give the consumer a
wide variety of choices when shopping for tree seedling. Our approach will be to
offer a diverse selection of tree seedling species. Exceptional customer service
will be important in meeting the needs of our target markets.

Mulozi central Tree Nursery Co. Ltd will provide competitive pricing for its
products, and will guarantee to match competitors’ prices, but exceptional
customer service and product knowledge will make the business stand out to its
target markets. The size of our inventory and the variety of choices our
customers will have when choosing tree seedlings will make Mulozi central Tree
Nursery Co. Ltd an attractive choice.

2.4 SWOT analysis

Strength of the business Action point

Availability of land Utilize the land to expand the business

Availability of reliable water source. Utulise water for seedling production

through the year

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Availability of well qualified and Using the skills and expertise to
experienced forestry staff. produce high quality seedlings.

Strategic Location. The business is near Use the strategic location to market
the main road for easy transportation the company products.
of seedlings.
A variety of tree seedlings species Using various tree seedlings species to
capture a large market.
Availability of cheap casual workers for Use to minimize labour costs
tree nursery operations

Easy access to marketing information Use the marketing information to

increase the market value for the
company products

Good partnership of other tree nursery Use this cooperation to expand market
operations in Lira and Gulu. of the company seedlings.

Availability of assorts tools and Use the tools to produce timely and
equipment quality products.

Weaknesses Action point

In adequate fund to produce all the Source for funds from financial
tree seedlings being demanded. institutions and other development
partners

Opportunities Action points

Good support and political will from the Use the support to increase production
local and district Team. The Centre is
being supported to establish solar
water irrigation for tree nursery.

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Contractual engagement with LM Increase production and supply of tree
international and INCU seedlings to generate more capital for
operational costs.

There is very high demand for tree Increase production and expand the
seedlings by individuals and market coverage.
Institutions

Threats Action point

Dry spelt due to climate change can Expand solar water pumping facility
affect tree seedling production

Roaming animals sometimes affect Pay in place a proper fencing.

production.
2.5 The marketing strategy /design/techniques
Mulozi central Tree Nursery Co. Ltd strategy is based on serving our customers
with expert service and product knowledge.

Also:

 The Company is building its marketing plan to reach institutions and

individuals.
 The business is focusing on satisfying the needs of the customers.
 The business is focusing on providing quality Tree seedlings at affordable
prices.
The major focus right from the beginning will be the attainment of positive
publicity for the tree seedlings and other related products. Mulozi central Tree
Nursery Co. Ltd will develop an awareness campaign to promote its tree
seedlings through numerous ways.
Our management team will pursue positive public perception of progressive
businesses’ endorsements who will promote the benefits of our products.

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a) Market Information

The need for updated market information is extremely significant, consequently

the business will utilize various acceptable prospects to gather and circulate
information relative to the markets of tree seedlings.
b) Promotion

It should be noted that different categories of promotion should be employed

and therefore we have proposed the following marketing strategies to be
employed to enhance huge sales:-

i) Mass Sensitization Campaign;

ii) radio and television;
iii) signboards, posters, leaflets and cards;
iv) personal contacts;
v) Special promotions.

i) Mass sensitization campaigns: Through mass sensitization campaigns

about the value of planting quality tree seedlings, this will be done in
community meeting, Annual General Meetings of SACCOs and cooperatives,
churches during worship days (Sundays) and Mosques on Friday to inform
the general public about our products. Awareness campaigns will also be
conducted in institutions like schools, where formal letters will be written to
inform the school authorities about the services provided, this will also be
done to the sub county and parish chief leaders and councilors.

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ii) Sign post at the nursery site: Another market strategy is the use of a Sign
post at the nursery site with a well labeled logo showing quality tree
seedlings.

iii) Demonstrations: The management of the business will hold

demonstrations to different categories of people on, on the importance of
planting trees, the different tree seedling species available, growing rate,
different uses (multipurpose or not), and any other product characteristics.
This enables a potential customer to understand and fell the product he/she
wants to buy and really buys.
iv) Participate in trade shows for visibility and product displays.
v) Utilizing the different media platforms that are available that’s to say
Newspapers, radio stations, television stations and social media to promote
our products and make it known to the public. Many people in Uganda have
access to at least one of these platforms if not all.
vi) Well branded T-shirts. The business will also embark on printing T-shirts
clearly showing the name of the business, contact and a picture depicting
what the business is involved in. these will mainly be worn by our staff as a
way of promoting the business
vii) Brochures, posters, stickers: Mulozi central Tree Nursery Co. Ltd
will establish and develop some marketing information materials and sales
literature (brochures, posters, Stickers) to rigorously promote awareness and
help potential buyers that might make quick buying decisions. These
promotional materials will be distributed to prospective buyers across the
country.

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viii) Have our business website developed and post the products we offer and
how we operate the distribution

B) Pricing strategies
 We will consider prices that are slightly lower compared to our competitors
and affordable to our clients. However this implies that we will have to
minimize our cost of production.
 The business will also let the forces of demand and supply also come into
play as a way of determining prices of our products. These dictate that
when demand increases for a certain product, it is most likely lead to an
increase in the price of that specific product and if the supply of a given
product increases, it will most likely lead to fall in prices of that specific
product.
 At some point in time, our prices will entirely depend on the economic
situation prevailing in the country. We will not continue pricing our
products at a lower rate when cases of inflation come in. This may mean
losses for our business
c) Sales Strategy
Sales strategy factors that influence primary sales include:-

 Excellent customer service

 Exceptional product knowledge
 Large and varied offer of trees and saplings
 Good location
 Good quality of saplings
 Affordable prices

In order for the sales strategy to be successful, the right profile of sales staff
have to be recruited to deliver on targets and maintain client relations.

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The key responsibilities of the Sales Team are to:

 Meeting sales targets.

 Ensuring a consistent supply of products to all customers at all times.
 Monitoring tree seedlings species needs of customers and advice production
section accordingly.
 Maintaining close client relations to pre-empt or immediately address
unforeseen problems or unexpected opportunities.
 Further increasing the turnover through ongoing promotions with respective
outlets.

2.6 Customer Service.

The main concept of customer care is that Mulozi central Tree Nursery Co. Ltd
should recognize that their customers are the most important people in their
business. A business will only survive if its customers are satisfied with the
product and the services. To achieve this, Mulozi central Tree Nursery Co. Ltd
must develop attitudes, ways of thinking and actions that reflect the importance
of their customers and they must focus on satisfying them.

In enhancing customer prelateship, Mulozi central Tree Nursery Co. Ltd must
do the following:-

a) Should meet frequently and talk to customers and find out what they like
and dislike about each product;
b) Should develop customer-orientated attitudes, so that the customers feel
valued when the Company is dealing with them;
c) Make sure that all actions taken by staff reinforce the idea that the customer
comes first;

16
d) Be very kind to customers (this includes using respectful language);
e) Give tokens to big customers (i.e. discounts and offer basic courtesies).

3.0 ORGANIZATIONAL AND HUMAN RESOURCE PLAN.

3.1 Introduction:
Managing a tree nursery business means having full control over what is
happening in the business. It involves aspects such as planning, budgeting,
purchasing, production and processing, marketing, finances and managing the
staff who work in the business. The Company has just developed financial and
accounting procedure manual; human resources Manual and policies and
systems, these will be fully followed to guide the operations of the business.

3.2 Roles and responsibilities

The business is run by a team made up of the director, assistant director,

manager and casual workers who mainly carryout daily watering of the
seedlings.

Director
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Assistant Director
 Casual labors

Cashiers

The Director
The managing Director is the overall personnel at the business. The managing
director has over 10 years’ experience in operating nursery beds and he gives
direction to the business. He works with the team of specialized capabilities in
finance and marketing and through the assistant manager, the casual personnel
are managed by the director. Performance targets are set by the director for
each office and through reporting and their supervision.

The Managing Director’s whose job description is, inter-alia, and is as

follows;

 To be the top executive for the Enterprise and implement the Board’s
decisions and policies on the day to day basis;
 Ensure effectiveness in management by recruiting, orienting, training,
disciplining managers, communicating values, strategies and objectives,
assigning accountabilities, planning, monitoring and appraising job results,
developing incentives, developing a good environment for information and
opinions sharing.

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  Leading the development and implementation of the overall organization
strategy and working closely with the management team members to
ensure an integrated approach to business operations and growth;.
 To represent the management on the board; and continuously work
with the Board to create the platform of pro-active approach of
governance and ensuring a success transformation of the Enterprise;
 To co-ordinate and supervise the company’s annual budget
preparation process and implementation and give direction for the
business
 To raise investment and working capital financing
 To set targets for the Enterprise and ensure that they are met;
 Fix prices and sign business deals
 Handle external business communications and public relations.
 Responsible for signing Checks and documents on behalf of the enterprise
 Evaluate the success of the enterprise
 Other job portfolio functions and roles will be defined later.
Finance officer
 Coordinating the financial aspects of a company.
 Managing budgets.
 Forecasting future cash flows and expenditures.
 Providing input related to funding requests or strategic decisions about
mergers and acquisitions.
 Advising an organization on how to increase profit through prudent financial
practices.

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 Monitoring and enforcing compliance with finance-related laws, procedures
and regulations such as tax filing and financial reporting.
 Planning, organizing, and executing financial tasks and projects of the
organization.
Marketing officers
 Promoting businesses, services, products
 Developing marketing and pricing strategies
 Generating new business leads
 Managing marketing budgets
 Analyzing trends
 Collaborating, managing and coordinating marketing processes.
 Conducting market research to identify current trends of products and
services
Casual laborers
 Watering the nursery beds
 Packaging the seedlings
 Weeding out any unwanted weeds from the nursery beds
 Fetching water from the nearby water sources

3.3 Remuneration of personnel

Staff gains satisfaction from their jobs if they receive reasonable pay and have
good working conditions, together with management methods that motivate
them so that they enjoy their work. Well motivated staffs have limitless potential
in their individual jobs, and improve the overall productivity of the enterprise.
Mulozi central Tree Nursery Co. Ltd ) should therefore devise ways of
motivating staff and improving job performance. We propose for the following:

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 a) Competitive salaries and regular review of salaries prompt pay and extra
rewards when the business does well
b) Paid overtime, leave and holidays.
c) Interest-free and flexible loan facilities for school fees and other family
needs.
d) Free meals, lunch allowance or food allowance.
e) Staff discounts for products.
f) Transportation to work or transport allowance
g) Uniforms, aprons, head scarves and work clothes.
Even the lowest paid worker needs a sense of security, recognition and
belonging. The Directors and managers should give workers contracts of
employment and encourage a sense of status and pride at all levels to help
employees identify themselves with the enterprise.

3.4 Recruitment

The proprietors together with the management will be responsible for the
recruitment of employees. Recruitment will be based on the educational
qualifications, experience in some Tree nursery management and operations
and business development skills.

3.5 Training and staff development

We will have training programmes for our staff once a year for the various
departments such as marketing and sales, procurement and supplies, human
resource, financial and accounts manager and production and operations. Each

21
of these will have a week’s training programme once in a year. We will also
sponsor some of the outstanding employees to some summits to expand their
knowledge and develop their skills. This will help them to develop in their fields
and sharpen their skills. Top management will be exposed to the latest
corporate management practices and principles and keep abreast the fast
changing market. Specifically, the Managing Director and the assistant manager
will attend these trainings.

4. FINANCIAL ASPECTS/PLAN

4.0 Introduction

Mulozi central Tree Nursery Co. Ltd needs financing to implement the Business
expansion requirements. We examine the financial aspects of the project in
details. The relevant tables, schedules, supporting statements, assumptions and
silent features and supporting data are presented herein.

The total project cost expansion for the five year is estimated to be Shs 70,
00,000 the directors’ contribution is estimated at Shs 30,000,000. The sponsors
require a long term loan Shs 40,000,000 to implement the project.

22
4.1 Important Assumptions:
The four major assumptions used in the financial projection are:

i. A slow-growth economy, without significant depression

ii. Identification of new partners in the business.
iii. Mulozi central Tree Nursery Co. Ltd should mobilize its own funding
resources and access equity capital and financing from other sources to
meet its financial plan.
iv. There is a competent and experienced Board and Management team to
implement company policies and strategies.

4.2 Investment Plan

Business expansion requires capital for buying seeds and propagating trees,
meeting production and operational costs.

Source of Funding
It is proposed that Shs 40,500,000 of the above investment costs will be
financed by the promoters of the business and Shs 350, 000,000 by loan and
short-term overdraft.

Table source of funding Shs

Source Shs %

Own Contribution 30,000,000 43%

Short and Long term Loan 40,000,000 57%

Total 70,000,000

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4.3 Projected Cash Flow (Shs )
Projected cash flow for the project appears in the table below

Income Cash Flow

Source of Year 1 Year 2 Year 3 Year 4 Year 5

income
Account Type Current Projected Projected Projected Projected
Sales of 141,000,0 155,100,0 170,610,00 187,671,0 206,438,10
seedlings 00 00 0 00 0
Other income 10,000,00 10,000,00 20,000,00
0 0 15,000,000 0 25,00,000

Total 151,000,0 165,000,0 185,610,00 207,671,0 231,438,10

Income 00 00 0 00 0

Cash outflow/expenditure

Year 1 Year 2 Year 3 Year 4 Year 5

Current Projected Projected Projected Projected

Cost of sales 9,150,000 9,882,000 10,672,560 11,526,365 12,448,474

Production
39,600,000 42,768,000 46,189,440 49,884,595 53,875,363
costs

Operational
6,120,000 6,609,600 7,138,368 7,709,437 8,326,192
costs
Salaries and
9,420,000
24
wages 10,173,600 10,987,488 11,866,487 12,815,806

Transport
3,600,000 3,888,000 4,199,040 4,534,963 4,897,760
costs

Marketing 3,660,000 3,952,800 4,269,024 4,610,546 4,979,390

Tools and
machinery 7,000,000 7,560,000 8,164,800 8,817,984 9,523,423
Communicati
on 1,800,000 1,944,000 2,099,520 2,267,482 2,448,880
Branding and
promotion 1,200,000 1,296,000 1,399,680 1,511,654 1,632,587
Office
expenses,
stationery, 2,000,000 2,160,000 2,332,800 2,519,424 2,720,978
utilities
Other
expenses 600,000 648,000 699,840 755,827 816,293
Loan
repayment 10,000,000 10,800,000 11,664,000 12,597,120 13,604,890
Totals
94,150,0 101,682,0 109,816,5 118,601,8 128,090,0
00 00 60 85 36

Mulozi central Tree Nursery Co. Ltd will have a positive cash flow right from
year 1 of expansion of operation. With the proposed cash inflow in form of
equity and long term loans, it will be able to meet all its cash outflows in form of
capital items and have a comfortable working capital position
4.2 Projected Profit and Loss (SHS)
Since the project has been on for some time it will continue to generate revenue
in 1st year of business plan implementation. In the 1 st year of business plan
implementation the business shall realize net profit equivalent to Ugx
39,984,000. The situation of profit making is maintained for the rest of the

25
projected time frame and the end of year 5 the investment shall be in
accumulative profit figure of UGX 272,973,821 as indicated in table below
Table Projected Profit and Loss (SHS)

Year End Year 1 Year 2 Year 3 Year 4 Year 5

Account Type Current Projected Projected Projected Projected

Sales 165,000,00 185,610,00 207,671,00 231,438,10

151,000,00
0 0 0 0 0

Cost of Sales 9,150,000 9,882,000 10,672,560 11,526,365 12,448,474

Gross Margin
94% 94% 94% 94% 95%
%

141,850,00 155,118,00 174,937,44 196,144,63 218,989,62

Gross profit 0 0 0 5 6

Operating 106,735,39 115,274,23

84,730,000 91,508,400 98,829,072
Expenses 8 0

Profit Before 103,715,39

57,120,000 63,609,600 76,108,368 89,409,237
Tax 6

Corporation
17,136,000 19,082,880 22,832,510 26,822,771 31,114,619
Tax

Net Profit a 39,984,000 44,526,720 53,275,858 62,586,466 72,600,777

Net Margin % 26% 27% 29% 30.14% 31.37%

26