BUSINESS PLAN

BUSINESS NAME : DIANAS AGROCHEMICALS SOLUTION

ADRESS / EMAIL : PO. BOX 128 NUNGUNI

PRESENTED BY : DIANA MULWA

INDEX NUMBER : 1061201200

COURSE CODE : 2915/308

COURSE NAME : DIPLOMA IN ANALYTICA CHEMISTRY

SUPERVISOR : STEPHEN KYALO

REPRESENTED TO : KENYA NATIONAL EXAMINATION

COUNCIL

INSTITUITION NAME : KENYA COAST NATIONAL POLYTECHNIC

COURSE CODE : NOVEMBER 2022

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THE KENYA NATIONAL EXAMINATION COUNCIL

DECLARATION FORM FOR THE BUSSINESS PLAN

NAME OF THE PROJECT: _________________________________________________

CODE NUMBER OF THE PROJECT: ______________________________

THE CANDIDATE:

I____________________________ Index number______________________

Declares that the project named above was approved by KNEC and supervised by

(SUPERVISOR’S NAME)

I personally carried out the project and received no undue help from unauthorized persons other
than the normal guidance from my supervisor. The report submitted to the council is the original
work.

SIGNATURE______________________________DATE__________________________

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THE SUPERVISOR

I ______________________TSC NO. _______________________________

Declare that, I supervised the above named candidate’s project and the report contained is the
original work of the candidate.

SIGNATURE OF THE SUPERVISOR:

______________________________DATE_____________________

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 DECLARATION
I hereby declare that the business plan is my original work and it has not been presented for the
award of certificate, diploma or degree to any examination body.

Signature………………………

DIANA MULWA

Date……………………………………..

I hereby certify that this report has been submitted for the examination with my approval as the
supervisor.

Signature………………………………………….

Supervisor; Stephen Kyalo

Date……………………………….

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 DEDICATION
I would like to dedicate this business plan to the almighty God grateful gave me good health and
the opportunity to write this project.

My sincere appreciation to my family , My father Martin mulwa for the support he gave me
during the processing of this project .lastly my classmates who assisted me during the research
work .God bless you all.

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 ACKNOWLEDGEMENT
I wish to acknowledge the people who assisted me for the success and completion of this
business plan. My deepest gratitude to my lecture Mr. Stephen kilo for the effort and supervision
he gave me until I finished writing this project.

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TABLE OF CONTENTS
DECLARATION............................................................................................................................iv
DEDICATION.................................................................................................................................v
ACKNOWLEDGEMENT..............................................................................................................vi
EXCUTIVE SUMMARY...............................................................................................................ix
1.0 BUSINESS DESCRIPTION....................................................................................................ix
2.0 MARKETING PLAN...............................................................................................................ix
3.0 ORGANISATION AND HUMAN RESOURCE PLAN.........................................................ix
4.0 OPERATION AND PRODUCTION PLAN............................................................................ix
5.0 FINANCIAL PLAN...............................................................................................................ix
CHAPTER ONE..............................................................................................................................1
1.1 Business name...........................................................................................................................1
1.2 Business location.......................................................................................................................1
1.3 Business ownership...................................................................................................................1
1.4 Type of business........................................................................................................................1
1.5 Product and service....................................................................................................................1
1.6 identification of business opportunity and threats.....................................................................2
1.7 Business goals and objectives....................................................................................................2
1.8 Entry and growth strategy..........................................................................................................2
CHAPTER TWO.............................................................................................................................3
2.0 MARETING PLAN...................................................................................................................3
2.1 CUSTOMERS AND THEIR CHARACTERISTICS...............................................................3
2.2 COMPETITORS ANALYSIS...................................................................................................3
2.3 DETERMINATION OF MARKET SHARE............................................................................3
2.4 PRICING STRATEGY.............................................................................................................3
2.5 DISTRIBUTION STRATEGY.................................................................................................3
2.6 SALES TACTICS.....................................................................................................................4
2.7 SALES STRATEGY.................................................................................................................4
2.8 ADVERTISING AND PROMOTION PLAN...........................................................................4
2.9 MARKETING MATERIALS...................................................................................................4
CHAPTER THREE.........................................................................................................................5
3.1 MANAGEMENT TEAM AND OTHER PERSONEL.............................................................5
3.2 RECRUITMENT, TRAINING AND PROMOTION PLAN....................................................5

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3.3 SALARIES, INCENTIVES FOR THE PERSONEL................................................................5
3.4 LEGAL AND STRATUITORY REQUIREMENTS................................................................6
CHAPTER FOUR...........................................................................................................................7
4.0 OPERATION AND PRODUCTION PLAN.............................................................................7
4.1 PRODUCTION FACILITIES...................................................................................................7
4.2OPERATION STRATEGY........................................................................................................7
4.3 REGULATION GOVERNING OPERATION.........................................................................7
CHAPTER FIVE.............................................................................................................................8
5.0 FINANCIAL PLAN..................................................................................................................8
5.1 PRE- OPERATIONAL COST..................................................................................................8
5.2 ESTIMATION OF WORKING CAPITAL...............................................................................9
5.3 PROJECTED CASH FLOW STATEMENT..........................................................................10
5.4 PRO FORMA INCOME STATEMENTS...............................................................................11
5.4.1 INCOME STATEMENT AS AT 31/12/2017, 2018 AND 2019.........................................11
5.5 BREAK EVEN POINT...........................................................................................................12
5 .5.1 TOTAL CONTRIBUTION.................................................................................................12
5 .5.2 CONTRIBUTION MARGIN %..........................................................................................12
5.5.3TOTAL FIXED COST..........................................................................................................12
5.5.3 BREAK EVEN POINT........................................................................................................12
5.6 EXPECTED PROFITABILITY RATION..............................................................................13
5.6.1 GROSS PROFIT PERCENTAGE........................................................................................13
5.6 .2RETURN ON EQUITY........................................................................................................13
5.6.3RETURN ON INVESTMENT..............................................................................................13

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EXCUTIVE SUMMARY.
1.0 BUSINESS DESCRIPTION.
The business name will be DIANAS AGROCHEMICAL SOLUTION owned by DIANA
MULWA.

The business will be located Nunguni market, opposite Mulleys supermarket.

The business will deal with supply of all agrochemicals to customers.

The business address will be:

DIANAS AGROCHEMICAL SOLUTION

Po Box 128

NUNGUNI

PHONE NUMBER .0748758224

EMAIL ADDRESS: dianasagrochemicals @ gmail. Com

2.0 MARKETING PLAN.

Diana agrochemical solution will supply agrochemicals to all customers around the region.

Promotion and advertisement will be used to marker the business and advertise the services
offered by the business.

3.0 ORGANISATION AND HUMAN RESOURCE PLAN.

Diana agrochemical solution will be a sole proprietorship where Dian will be the manager
assisted by other members of staff to ensure that all objectives of the business are attained.

4.0 OPERATION AND PRODUCTION PLAN.

There will be enough equipment and apparatus to analyze the soil samples

5.0 FINANCIAL PLAN.

Being a sole proprietorship the source of capital will only depend on the owner’s savings, bank
loan, contribution from friends and family.

The business will start with a capital of 800000.

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 CHAPTER ONE
DIANA AGROCHEMICALS SOLUTIONS

1.1 Business name

The business name will be Diana’s agrochemicals solutions

1.2 Business location

Diana’s agrochemicals solutions will be located at nongame market, opposite mule’s
supermarket in Makena County, 27.0km from Mombasa highway. The people near the area grow
both cash crop and subsistence e crops and there will be already market for agrochemicals
solutions .The infrastructure in the area is well developed for easy transportation to the interior.

1.3 Business ownership

Dianas agrochemicals will be sole proprietorship due to a sole trader is easy to start, requires
less capital to start that is the one who can get money to start from the owner saving g
contribution from friends .The business with the easy to make decision .Diana’s agrochemicals
solution will be able to maintain personal attention with the customers.

1.4 Type of business

Diana’s agri-business industry

1.5 Product and service

Diana’s agrochemicals solution will be obtaining a sample of farmers soils, sample it and advice
the farmers on the type of correct type of chemical to use. In case of pesticides will be visiting
the appropriate pesticides used. Diana’s agrochemicals will contain different types of fertilizers
example organic and inorganic fertilizers

Nitrogen fertilizers

Phosphate fertilizers

Potassium fertilizers

Insecticides and pesticides will also be available at fair prices

Customers’ orders will be fulfilled with an immediate effect for serving our customers is our first
priority

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Diana’s agrochemicals will use the modern analytical methods of sampling up to the required
sample

1.6 identification of business opportunity and threats

Idea of agrochemicals due to the new changes in the technology, Diana’s agrochemicals will
provide new terminologies to the customers

1.7 Business goals and objectives

Diana’s agrochemicals aims at providing products which can be used to those produced by
developed countries due to our country is a deepening country. Farmers to be providing quality
products and also to be providing sources which are the best.

1.8 Entry and growth strategy

Within a year Diana agrochemicals will have a branch in salaam market and mallei market but
the main branch will be located at nongame market .new products in the market will be provided
to the get new products launched in the market

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 CHAPTER TWO.
2.0 MARETING PLAN.
2.1 CUSTOMERS AND THEIR CHARACTERISTICS.
Diana’s agrochemicals will offer services free of analyzing the soil sample and of identifying the
pesticides present in their farms.

The price of the products will be 2% lower than the price in the nearby premises.

Those who will be buying products in large amounts will be offered a 5% discount.

There will be buying half the prices and paying the other half in installments only on the agreed
specific time.

Transportation of bulky products from the shop to the farmers in the interior areas will be free.

2.2 COMPETITORS ANALYSIS.

Diana’s agrochemicals solution services to the customers will be free. We will be able to visit the
farms and identify the species of the pesticides present also obtain the soil samples and analyses
using the modern analytical equipment’s which in the nearby premises the don’t offer to their
customers, they just sell their products to customers.

2.3 DETERMINATION OF MARKET SHARE.

15 % out of the total profits is what will be retained and put in the account for the future use

2.4 PRICING STRATEGY.

The services offered by Dianas agrochemicals solution will be free .products will be sold at a 2%
lower than the prices in the entire market.

Customers who buy products at large amount they will be sold at 5% discount.

Customers unable to pay their prices they will pay deposits and the other amounts paid at
discount only at the agreed time.

2.5 DISTRIBUTION STRATEGY.

Services offered by Diana’s agrochemicals solution .will be free and the analysts will be able to
visit the farms and observe and analyses the problem.

Services offered the customers might get them in our:

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Website- www.dianas

Email – dianamulwa254 @ Gmail .com

We also have to sale representative who are paid at a commission.

The cost incurred by the process of distribution is much better and reaches a large market at the
appropriate time.

2.6 SALES TACTICS.

Customers will be allowed to use Mesa which is located in the business, pay using cash or use
cheques.

Customers might place their orders via the email, website, through the customer care desk.

Incase customers buy in credit terms, in case of late payments penalties will be imposed to them
and in early payments they will be given discounts.

2.7 SALES STRATEGY.

To the sales representatives they will be paid after reaching their targets.

To the people who advertise will be paid on commissions.

2.8 ADVERTISING AND PROMOTION PLAN.

Diana’s agrochemicals solutions will be advertised in the local FM radio which can be afforded
by all customers.

Those who will be able to access the television advertisement will be there .I our website or
customers may visit our premises for more information.

2.9 MARKETING MATERIALS.

There will be the business cards Brochures which the customers can access the business.

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 CHAPTER THREE
HUMAN RESOURCE PLAN.

3.1 MANAGEMENT TEAM AND OTHER PERSONEL.

Diana’s agrochemicals solution will have the: Director, Accountant of the business.

The customer care will also be available other support personnel like sales person.

There will be five qualified analyst to whom they will be visiting the areas of study.

There will be cleaners of the premise, two of them.

3.2 RECRUITMENT, TRAINING AND PROMOTION PLAN.

Recruitment of workers in Diana’s agrochemicals solution will be done yearly.

The five workers who will be visiting the areas of study should have a minimum of Diploma in
their level of study.

The sales person shall be well trained about the chemicals and on business.

The cleaners shall be able to speak fluently I Kiswahili and English and a minimum grade of D
in their Ices level of study.

Diana’s agrochemicals solution staffs will be taken to seminars within and outside the country to
learn about the new technology and emerging issues.

The workers in Diana’s agrochemicals solution who will be devoted will be promoted band their
salaries will be increased.

3.3 SALARIES, INCENTIVES FOR THE PERSONEL.

Diana’s agrochemicals solution will be paid as follows

I. Director- 50000
II. Accountant-30000
III. Analyst – 20000 each
IV. Cleaners – 5000 each
V. Customer care person – 15000
VI. Sales representative – paid at the agreed commission.

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3.4 LEGAL AND STRATUITORY REQUIREMENTS.
Diana’s agrochemicals solution will comply with the rules and regulations by the Kegs.

Diana’s agrochemicals solution will comply with Neman

All the works I deans agrochemicals solution will be paying taxes directly from their salaries.

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 CHAPTER FOUR
4.0 OPERATION AND PRODUCTION PLAN
4.1 PRODUCTION FACILITIES.
Diana’s agrochemicals solution will have the modern analytical equipment’s for analyzing also
the modern equipment’s for detecting the species of pesticides presenting a farm.

4.2OPERATION STRATEGY.
Before advising the customers on the appropriate chemicals to use, Diana’s agrochemical
solution will visit the area to obtain the soil sample, analyses using the sampling techniques and
methods up to the gross sample and identifying the microorganisms present and advice the
customers accordingly.

About the pesticides the customers will visit the area if study, study carefully obtain knowledge
about the species present and advice the customers on appropriate pesticides to use.

4.3 REGULATION GOVERNING OPERATION.

Diana’s agrochemicals solution will comply with the Neman rules and regulation

All the products sold will be authorized by the Kegs.

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 CHAPTER FIVE
5.0 FINANCIAL PLAN.
Diana agrochemical will have a financial plan. Showing all the sources of capital and how funds
will be spend.

The business will have the following

Family and friends -250000

Savings -250000

Bank loan- 300000

Total = 800000

5.1 PRE- OPERATIONAL COST.

The proposes business will incur the following operational cost before it starts its operation.

ITEM COSTT
Rent 5000
Services offered 6000
Advertisements 5000
Telephone 500

Salaries and wage 20000

Machinery and equipment 50000
License and permit 5000
Insurance 4000
Transport 5000
Electricity 2000
TOTAL COST 102 500

Cash = capital – pre operational cost

800 000 – 102 500= 697 500

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5.2 ESTIMATION OF WORKING CAPITAL.
ITEM First year Second year Third year

Stock 30 000 60000 70 000

Cash in hand 400 000 300 000 35 000

Cash in bank 300 000 400 000 500 000

Debtors 100 000 90 000 60 00p

TOTAL CURRENT 830 000 850 000 980 000

ASSETS

CURRENT
LIABILITIES

Bank loan 200 000 160 000 100 000

Creditors 60 000 40 000 30 000

TOTAL 260 000 200 000 300 000

LIABILITIES

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 5.3 PROJECTED CASH FLOW STATEMENT.
Receipt Jan Feb Marc Apr May June July Aug Sep Oct Nov Dec Total
Sales 50 000 70000 47000 50000 60000 43 000 50 000 60 000 50 000 70 000 50000 80000 680 000

Debtors 10000 16 000 12000 14 000 16000 15 000 14000 16000 16 000 18 000 20000 10000 177 000

In flow 74000 60000 80000 70000 90000 72000 54000 70000 60000 70000 84000 70000 854000
Purchase 8000 10000 7000 6000 4000 5000 4000 3000 10000 9000 8000 12000 88000
Salary and 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 240 000
wages
License 5000 0 0 0 0 0 0 0 0 0 0 0 5000
Rent 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 50000 5000 60 000
Water 1500 1500 1500 1500 1500 15 00 15000 1500 15000 1500 1500 1500 18 000

Transport 7000 5000 2000 2000 1000 2000 2000 2000 2000 2000 2000 2000 31000
Insurance 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 48 000

Electricity 2000 2000 1000 1000 1500 2000 1500 1000 1000 1000 1000 1000 16000
Telephone 5000 1000 500 1000 300 800 700 200 500 1000 1000 500 12500
Advertising 4000 3000 2000 500 800 1000 700 500 300 200 1000 500 12500
Out flow 55000 53000 54000 2200 39000 21000 63000 35000 44000 45000 55000 37000 523000
Net cash flow 5000 31000 6000 2000 31000 27000 29500 30000 38000 19500 2000 21000 260500

Accumulated 5000 44500 70500 50500 138500 204500 175000 21000 22000 31000 53000 45000 560560
cast flow

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5.4 PRO FORMA INCOME STATEMENTS.
5.4.1 INCOME STATEMENT AS AT 31/12/2017, 2018 AND 2019.
ITEM 2017 2018 2019

Sales 615 000 650 000 700000

Less cost of sales

Opening stock 50000 70000

Add purchases 67 000 80 000 90 000

Less stock (40000) (60000) (80 000)

Gross profit 585 000 560 000 630 000

Less expenses

Salaries 240 000 260 000 280 000

License 4000 4000 4000

Water 20000 24 000 30 000

Rent 60000 60 000 60 000

Electricity 14 000 16 500 18 500

Insurance 5000 8000 10 000

Transport 22 000 24 000 3000

Advertisement 33 000 36 000 40 0000

Telephone 9000 10 0000 14 000

Total expense 191 0000 442 500 459 000

Net profit before tax 200000 131 500 172 500

Taxation 10 % (20 000) (13 950) ( 17 250)

Net profit after tax 180 000 125 550 155 250

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5.5 BREAK EVEN POINT.
PARTICULARS AMOUNT

License 4000

Insurance 5000

Salaries 240 000

Rent 30 0000

TOTAL FIXED ASSETS 297 000

VARIABLE COST

Telephone 1000

Transport 22200

Electricity 16 500

Water 8000

TOTAL VARIABLE COST 47 500

5 .5.1 TOTAL CONTRIBUTION.

Sales – variable

615 000- 47 500= 567 5005

5 .5.2 CONTRIBUTION MARGIN %

(Total contribution÷ sales)× 100

(567 500÷ 615 000)×100= 92.23%

5.5.3TOTAL FIXED COST.

385 000

5.5.3 BREAK EVEN POINT.

= fixed cost = 385 000

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5.6 EXPECTED PROFITABILITY RATION
5.6.1 GROSS PROFIT PERCENTAGE.
(Gross profit ÷ sales)×100

(585000÷615 000)× 100=95.12%

5.6 .2RETURN ON EQUITY.

(Net profit after tax÷ owners’ equity)× 100

(280 000÷80000)×100= 33%

5.6.3RETURN ON INVESTMENT.
(Net profit after tax total investment)×100

(280 000÷88 000)×100=31.82%.

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