BUSINESS PLAN

FIESTA FRUIT JUICE PARLOUR

P.O BOX 996-018100, MOMBASA

PRESENTED BY: BILLY KIMANI

INDEX NUMBER: 1061201104

COURSE: DIPLOMA IN CATERING AND ACCOMMODATION

MANAGEMENT.

COURSE CODE: 2819/3

INSTITUITION: KENYA COAST NATIONAL POLYTECHNIC

SUPERVISORS NAME: MR KEMBOI EDWIN

PRESENTEDTO: KENYANATIONAL EXAMINATIONS COUNCIL IN

PARTIAL FULLFILLMENT OF THE REQUIREMENT FOR AWARD OF
DIPLOMA IN CATERING AND ACCOMODATION MANAGEMENT

SERIES: OCT/NOV 2022

1
TABLE OF CONTENTS
DECLARATION............................................................................................................................iv
DEDICATION.................................................................................................................................v
ACKNOWLEDGEMENT..........................................................................................................vi
EXECUTIVE SUMMARY...........................................................................................................vii
BUSINESS DESCRIPTION......................................................................................................vii
MARKETING PLAN................................................................................................................vii
MANAGEMENT PLAN...........................................................................................................vii
FINANCIAL PLAN..................................................................................................................vii
CHAPTER ONE..........................................................................................................................1
1.0 BUSINESS DESCRIPTION................................................................................................1
1.1BACKGROUND INFORMATION.......................................................................................1
1.2 BUSINESS NAME................................................................................................................1
1.3 BUSINESS LOCATION AND ADDRESS..........................................................................1
1.5 TYPES OF BUSINESS.............................................................................................................2
1.7.1 ENTRY AND GROWTH STRATEGY.............................................................................2
1.9.2 DISTRIBUTION CHANNELS..........................................................................................2
CHAPTER TWO.........................................................................................................................3
2.0 MARKETING PLAN............................................................................................................3
2.1 POTENTIAL CUSTOMERS/ TARGET MARKET.............................................................3
2.2 TARGET MARKET STRUCTURE......................................................................................3
2.3 CORPORATE IMAGE..........................................................................................................4
2.4 PURCHASING STRATEGIES.............................................................................................4
2.5 WARRANTIES AND GUARANTEES................................................................................4
2.6 MARKET SHARE.................................................................................................................4
2.7 PRICING STRATEGY..........................................................................................................7
2.8 ADVERTISING AND PROMOTION..................................................................................7

2
2.9 DISTRIBUTION STRATEGY AND CHANNEL................................................................8
CHAPTER THREE......................................................................................................................9
3.0 ORGANIZATION AND MANAGEMENT PLAN..............................................................9
3.1 ORGANIZATIONAL STRUCTURE....................................................................................9
3.3 RECRUITMENT, TRAINING AND PROMOTION.........................................................11
4.0 OPERATION PLAN............................................................................................................15
4.1 PRODUCT DESIGN AND DEVELOPMENT...................................................................15
4.3 MAINTENANCE AND REPAIR.......................................................................................16
4.4 PRODUCTION STRATEGY..............................................................................................16
4.5 PRODUCTION PROCESS..................................................................................................16
4.6 GOVERNMENT POLICY AND REGULATION..............................................................16
CHAPTER FIVE........................................................................................................................19
5.0 FINANCIAL PLAN.............................................................................................................19
5.1 PRE OPERATIONAL COST..............................................................................................19
5.2 ESTIMATED WORKING CAPITAL.................................................................................19
5.3 CASH FLOW FOR THE FIRST YEAR.............................................................................20
5.3.1 CASH FLOW FOR THE SECOND YEAR.....................................................................21
5.4 PROFOMA INCOME STATEMENT.................................................................................22

3
 DECLARATION
I hereby declare that this business plan is my work and is my original work and has never been
presented before any award, in any other college for academic purposes, or any other purpose.

Student name:

Index no:

Signed..........................................Date................................

This business plan has been submitted to Kenya National Examination Council with my
permission as the trainees supervisors.

Name:

Signature …………………… Date: ……………..

4
 DEDICATION
This Business plan is dedicated to all my family members, my able classmates who played a
bigger part in terms of emotional help, spiritually, physically and above all financially to make
this plan work. Also you gave me a reason to study hard and provided me with what I required to
keep me in the institution.

5
 ACKNOWLEDGEMENT

I give much thanks to almighty God, for giving me a good health, guidance and strength to do
my business plan work. My sincere thanks also goes to my parents, my brother for their moral,
social and financial support during writing of the business plan.

Thanks to my business plan supervisor for the guidance too while preparing and writing the plan.

May God bless you all.

6
 EXECUTIVE SUMMARY

BUSINESS DESCRIPTION

FIESTA FRUIT JUICE PARLOUR is a licensed Fruit Juice shop selling fresh fruit straight from
the market and juice products that will be based along the Haille Sellassie road to the opposite of
the family bank where customer will be able to access.

MARKETING PLAN

The business will be FIESTA FRUIT JUICE PARLOUR because it will not only sell assorted
fruits and juices but will also offer consultancy services in line with the area of the business.

MANAGEMENT PLAN

The business will be owned and managed by Billy Kimani. Who has experience from day to day
activities. The business will target to be coming the most top Fruit Juice business around the area
and an extra mile to invest in more areas and open other branches around the area.

When it comes to hygiene the business will have to put plans process and structures in place to
ensure what will be at the top ahead of the other competitors in the region.

It will also have plans in place for the continuous training of its staff and also license with stake
holders in the industry to ensure it will effectively meet the ever changing demands of the
customers.

The business will ensure its continuous to explore all available market around the cities whose
other branches of the business will be opened.

FINANCIAL PLAN

The major areas that the business will look forward in spending bulk of the bulk of cash in the
purchase of latest Fruit and juice packagers for take away and other facilities for the business
use. These are key areas where the business will spend the start up capital.

Total fee for registering the business will be ksh. 3000

Legal expense for obtaining licenses and permits as well as accounting services will be Ksh.5000

7
Marketing promotion expenses for grand opening of Fruit Juice parlour will be ksh.2500

Cost of hiring business consultant services ksh. 25,744

Insurance general (liabilities, workers compensation and property) ksh. 3700

Utilities ksh.2500

Cost per start up inventory (raw materials and packaging materials) = ksh. 25,744

Storage hardware (racks, shelves ) ksh.36,000

Cost of purchase distribution van =16,500

Salary schedule ksh. 64,000

Computers ksh. 25,744

Tables, chairs ksh. 9,000

Cost of opening party ksh. 25,744

Miscellaneous 1500

The business will need an estimate of ksh. 237,000/-

8
 CHAPTER ONE

1.0 BUSINESS DESCRIPTION

1.1BACKGROUND INFORMATION.

Name of the owner: BILLY KIMANI

Address P.O BOX 001 Mombasa

Occupation: Student

Education: Diploma in Catering And Accommodation Management.

Business Experience: Three months

The owner of the business has experience in Day to Day activities and from other academic
studies and have the ability to cater for the welfare of the customers through provision of high
quality services and products.

1.2 BUSINESS NAME

The name will be Fiesta Fruit Juice Parlour. The word fiesta comes from the word festival
thus bringing about party mood on the commodities that will be sold in the shop because
most of the product will be fruits and juice.

1.3 BUSINESS LOCATION AND ADDRESS.

The business will be located along the left side onto the Haille Sellassie road opposite to the
Family Bank where customers will be able to find it.

The location will be easily accessible as customers will be able to notice it from far distance
and come to enjoy our products and service as the location is secure for all our customers.

1.4 FORMS OF OWNERSHIP

Green Grocers shop will be a sole proprietorship form of business headed by Billy who will
be the owner of the business.

This will enable the owner of the business to be able to respond quickly to the business day to
day management operations of the business

1
The owner will have personal conduct with the customers and hence able to know the
customers wants and needs as he will have complete control of the business and be
responsible for all decisions in the business hence easy to run it.

1.5 TYPES OF BUSINESS

The business is a start up business which will provide wide variety of fruits from mangoes,
watermelon, pineapple, oranges and other available variety of fruits sliced and diced, single
fruits and diced and dried fruits snacks which will be sold at a little bit lower price in order to
attract more customers and hygiene shall be highly maintained so as to retain the customers.
The business will also provide other varieties of juices so as to compete with other related
business.

1.7.1 ENTRY AND GROWTH STRATEGY

THE ENTRY STRATEGY

The capital to start a business will be obtained from the family contributions and from the
relatives. Which will cost shilling 400,000. Before the opening date, a number of designed
pamphlets shall be produced and distributed within the town including pricing and all what
the shop entails. Posters will be put on the market Centre and gates to direct people where the
establishment is. This will help the business to gain strength over the competitors.

GROWTH STRATEGY

The business aims to expand the business by opening the new branches. This is because the
consumers demand is very high, also the use of the machinery for example, Juicers, blenders
and computers used in pricing the goods help to expand the business. The installation of
communication channel also expands the market opening new branches cause the proprietor
to employ many employees to enable to operate the market easily.

CUSTOMER BENEFITS

 Customers will benefit through the followings;

 They will be given quality goods
 They will be given discounts on goods purchased in large amount.
 They will be given guarantee for products purchased.

2
1.9.2 DISTRIBUTION CHANNELS

The goods reaching the customers demand require zero channels.

Retailer’s customer

CHAPTER TWO

2.0 MARKETING PLAN

Fiesta Fruit Juice Parlour will be situated along the road where market is readily available.
The aim of situating the business in this location is to bring goods and services at the
proximity of customers. These goods and services will be readily and timely available to
meet the customers need.

2.1 POTENTIAL CUSTOMERS/ TARGET MARKET

The business potential market where they will get accessed in learning. The potential market
includes:

a) Supermarket – They buy goods in large quantities to sell to their customers.

b) Food Venders –They buy goods so as to sell to customers.
c) Local customers – The customers around the community buying fresh fruit and
juices.

Food venders also buy goods in large quantities and sell them into small quantities to meet
customer demand. The business offered will enable the customer to satisfy their needs the
business shall be opened daily on week days from 9am to 9pm while in the weekdays it shall
be opened at 8am until midday 9pm both on Saturday and Sunday.

2.2 TARGET MARKET STRUCTURE

Potential Growth 2019 2020 2021 2022

customers
Supermarket 10% 560,000 567,000 601,000 601,900
Food venders 2% 741,000 823,000 836,000 910,000

3
 Local 0.5% 700,000 697,000 803,000 855,000
customer
Local 2.5% 206,871 263,000 270,000 283,000
workers
Total 2,319,871 2,507,000 2,075,000 2,949,000

2.3 CORPORATE IMAGE

The business will be situated along the road, this shows the image of the product and
services. Another image is that the goods sold are of high quality with fair price. Also for the
business to run successfully, the workers employed have enough skills and experience to run
and manage the business hence promote the business enterprise.

2.4 PURCHASING STRATEGIES

Fiesta fruit juice parlour buy their products to its market both in large quantities and small
quantities, according to the customer’s decision some of the quantities purchased are as
follows.

ITEMS QUANTITY BUYING PRICE(KSH)

oranges 12 crates 58,560
Mangoes 800kgs 65,000
Sugar 5 bags 87,000
watermelon 800kgs 40,000
avocadoes 120 kgs 43,200
apples 10kg 21000

2.5 WARRANTIES AND GUARANTEES

The goods purchased should have a warrant which act as a security for the product in that
incase the product ordered is not the one ordered for, then the proprietor had to return it to be
exchanged. Also if the products get damaged before the period of agreement, a proprietor

4
have to return back for replacement for the business to run smoothly to reach the proximity of
the customers and reduce losses

2.6 MARKET SHARE

The business aims to take around 53% of the market shares leaving other percentage to the
other competitors. The fruit juice parlour takes the highest percentage because of the
following:

 The market has high sanitation which is suitable for customers to buy their goods
within conducive environment.
 The use of new technology such as development of computers, phones, televisions
and radios
 Development of infrastructure for example security, water, banks, and
telecommunication. Also improved roads promote the business for easy transportation
of goods.
 The space available is enough for movement from one self to another and also parking
place for vehicles.
 Qualified staff is able to use the machineries by applying their skills.

The existing competitors are:

1. Otoyo fruit juice shop

2. Tam Tam Fruit palour and vegetables

Their structure representation is follows:

5
 MARKET COMPETITORS

3; Series1; 0.29; 25%

1; Series1; 0.63; 55%

2; Series1; 0.23; 20%

1 2 3

GROWTH STRATEGY

Fiesta Fruit Juice Parlour aims to expand the business by opening new branches. This is
because the consumers demand is very high. Also the use of the technology for example
computers used in pricing the goods helps to expand the market. The installation of
communication channel also expands the market.

Opening branches cause the proprietor to employ many employees to enable to operate
market easily. These creation of installation of new technologies cost amount of Ksh. 50,000

PROXIMITY TO POPULACE

The place where the market is situated offer services from 4.00am to 9.00pm for
customers to enable to enable to access goods since they are closer to the market. This
market is centralized to make it easy for customers who are willing to purchase goods.
This will enable the customers to get timed and ready product and service hence their
satisfaction needs.

6
 The business is located in an area where there is enough security from the police officers
around this help the proprietor. The employees and the staff must have confidence in
running up to late hours. Due to presence of security, this creates assurance of safety of
the customers as they come in and out of the Shop.

COMPETITION

Green Grocer Shop will be experiencing two main competitors which include:

1. Otoyo fruit juice shop

2. Tam Tam Fruit palour and vegetable shop

To overcome the competition, the proprietor together with the employees will take measures
as follows.

 Selling the products at affordable price to hold customers compared to the competitors
who sells theirs at higher price.
 The business will advertise their products through promotional activities such as sales
promotion which include giving short term incentives to encourage supply of the
products and services.
 The business will also use public relations such as rallies to expose the business to the
public as compared to the competitors who rarely do that. The proprietor himself will
be involved in selling products to create a direct relationship with their customers.

2.7 PRICING STRATEGY

A proprietor purchase goods from the company and determines how much a given product
can cost in terms of values, quantity and labor when processing. Appropriator also matches
the prices of the competitor by increasing or lowering the prices depending on the fixed cost
and profit realization, also can allow quantity discount to the customers and in return will
encourage most of them to access the goods at high demand.

2.8 ADVERTISING AND PROMOTION

They will create awareness to their product by issuing the newspaper and brochures to their
customers to read and understand. The newspapers also contain the background of the
business, the name of the business and the illustration of the business services offered hence
they will be well known by the entire community.

7
  A proprietor offers credit facilities to its potential customers as means of promotion.
 Use of bill board shall be distributed and placed in every market places within the
business location.
 Use of radios for advertisement of goods on various local radio stations, this will
create full awareness of this business to local people
 The use of posters will contain the details of the business and will be placed all
around the premise and its vicinity to attract customers.
 Use of Calendars contains the details of the Green Grocers Shop. They will be
produced annually and given to customers freely.
 Newspaper advertising will promote my business to a wide range of customers.
Display advertisements are placed throughout the paper, while classified listings are
under subject headings in a specific section.

2.9 DISTRIBUTION STRATEGY AND CHANNEL

The goods reach to the customers through zero channels where the sell agent sells goods to
the customers directly.

Business enterprises Customers

8
 CHAPTER THREE

3.0 ORGANIZATION AND MANAGEMENT PLAN

3.1 ORGANIZATIONAL STRUCTURE

“Fiesta fruit juice parlour” as stated earlier shall operate under an empowered cloud of a
management team of a manager a supervisor, casual labour, skilled labour and a watchman
labour.

The activities as they tend to reflect will be delocalized and every employee shall deal with
his own individual duty and responsibility.

The top management i.e. manager and supervisor will be the statement stockholders.

The business shall carry out its errands as dedicated in the structure drawn below.

MANAGER

SUPERVISOR
9
SKILLED LABOUR CASUAL LABOUR WATCHMAN

1 1 1

2 2 2

CASUAL LABOUR

The casual labour should have a K.C.S.E certificate, must have an identify card must have
been a casual worker for at least one month in my areas of work in a different worker for at
least one month in my areas of work in a different firm, honest and hardworking. Its junior
must have the same qualification but experience is debatable.

WATCHMAN

As a matter of opinion the watchman has no choice to have the following basic qualifications
for instance must be masculine and well built, gigantic, having around 6.1 feet in height,
energetic, must have attained 25 to 35 years of age with at least a K.C.S.E certificate. His
assistant must possess the same qualifications.

PERSONNEL NUMBER AND DUTIES

Green Grocer Shops should be in the market operation with at least five members of staff
with the below responsibilities.

10
MANAGER.

Being the proprietor of the business then he/she will be the boss of business in order to run
smoothly. For the manager he/she will have the following qualities so as to be selected.

 Should have good interpersonal skills.

 Should be competent and computer literate.
 Has a working experience of 3 years in management in a business.
 Has a Diploma in technical teacher education in information studies?
 Should be a sound mind.

DUTIES AND RESPONSIBILITIES OF MANAGER

 Should be responsible in allocation of funds and production.

 Sign document in the business.
 Manage the financial program in the business.
 Organized design and office layout will be in his docket.
 Recruitment and duty allocation

SUPERVISOR

Will assist the manager to run the business, by allocating duties, ordering of stock, supervise
the junior employees, account for the salaries of the junior and assist in drafting of rules and
governing laws.

QUALIFICATIONS OF SUPERVISOR

 Should have worked for 2 years and above.

 Should have good communication skills and to be able to understand.

DUTIES

 Supervises the production of goods.

 Make sure that all goods ordered are brought
 Make sure that all workers are performing their duties accordingly.

11
SKILLED WORKER

Will be responsible for selling over the counter and entering of records of sales into the
computer. His assistant will be expected to do the same duties

CASUAL LABOUR

Will be expected to clean the shops floor, windows arrange the goods on shelves offloading
and loading of dispatched commodities from suppliers into the stores room. His assistant will
be expected to carry out same duties under his direction.

WATCHMAN

The watchman and his junior will be expected to take security of the shop in the jurisdiction
at night and day times if closed or not closed. Will take care of arrangement employees acting
beyond their jurisdiction and inventors of arrogance of any form in business

3.3 RECRUITMENT, TRAINING AND PROMOTION

Employment of new employees shall be advertised to the public by posters and circulars. I
will announce in broadcasting radio stations such as West FM and after which applications
will be received and receives made to those who have qualified for the job stating the date for
interviews.

After the interview and selection processes, those who would have passed the interview shall
be oriented to the job and informed on when he is expected to be fully on duty.

BUSINESS MANAGEMENT AND QUALIFICATIONS

The business will contain or comprise of “five” members with other one assistant in skilled
labour casual labour and watchman if need there be.

There qualifications and duties will include: -

MANAGER

I will be the manager of Green Grocer Shop. It its vividly known, I own a Diploma in supply
chain management, so I will be in a profound position to deal with the business opportunity,
particularly in managing human as resources. And taking care of all the functions of human
resource.

12
SUPERVISOR

The supervisor to be must be above 25 years of age and must have passed certificate exams
from any available recognized institution and in addition must be computer versed and
industrious.

SKILLED LABOUR

The skilled labour should be having a K.C.S.E certificate and above 18 years of age and be
computer literate with a work experience of at least six months in boutique and cosmetics
products. In addition, must be trustful hardworking and responsible. His assistant may be or
may not be having a certificate but be well versed with computer skills, honest and most
prove to be faithful and must be a Kenyan citizen with an identity card

TRAINING

Training of employees in a business cannot be put a side, my fruit juice Company business
shall use various training methods. For instance, on job training is an efficient method of
training, I will train my employees, slowly by bit and ensure that they adapt to the skills
needed in the job.

Second, I will use internal training on my employees through use of seminars and put
necessary knowledge and skills to employees who will later direct them to real practice in my
business. In addition, I will look for training centers such as colleges and sent my employees
there like the unskilled labour to acquire skills in marketing and my supervisor to get masters.
As a result, the business will gain more popularity and highly trained staff thus effective and
efficient acquisition and fulfillment of the necessary objectives and goals.

PROMOTIONS

Promotion in business enhances co-operation and attainment of goals as a result. I will

motivate my employees. To determine this point, advancements shall be done relating to job
performance, ability of each employee, personnel records and charts. Those employees
proving to my management that have done well will be considered according and put to high-
ranking grades.

In addition, when goes as have been fulfillment, individual employees shall be rated and
again promoted

13
RENUMERATION AND INCENTIVES

Since these are the employee earning ranging from salaries wages and other financial benefits
like bonuses I will and pay my employees as determined below

WORKERS SALARY

Manager 4,000

Supervisor 2,300

Skilled laborers 1,500

Casual laborers 900

Watchman 1,400

Total earnings 9,100

The above payments shall be made monthly at the beginning of every month and year

LICENSING PERMIT AND BY LAWS

LICENSING

The license of my business shall be acquired from the Mombasa municipal council which
operates under the local government ministry. This will be the local operation license that
will enable my business run eloquently without eminent difficulty that my pause.

14
 CHAPTER FOUR

4.0 OPERATION PLAN

4.1 PRODUCT DESIGN AND DEVELOPMENT

The business shall adopt the use or new technology machines such as computers, weighing
scale, juicers, blenders and Fridge to improve the quantity of productions such as quality
materials also improved the demand of goods. For the business to run concurrently. There
should be supplies of stocks which will enable the customers to access their goods easily
since they are readily available. The manager also has to come up with an idea of coming up
of current and high quality products. This design will improve quality or products and
services mat suit the business.

4.2 PRODUCT FACILITIES AND EQUIPMENT

The business requires assets which enhance good working and efficiently in running the
business. This asset are machineries with technology to improve the quality of the product.

ITEMS COST PER UNIT INSTALLATION TOTAL

15
 UNIT REQUIRED COST COST
KSH
Computers 45,000 4 180,000
Weighing 10,000 3 30,000
scale
Fridge 80,000 2 160,000
Cashbook 300 1 300
Counter 3200 1 3200
Tables 800 6 4800
Total 378,000

4.3 MAINTENANCE AND REPAIR

The maintenance will take place in our local shops called Kindaruma spare shop. The
machines with drill which will be repaired through kindaruma Spare Parts are spare door
hinges, fridge, glasses, Others like computer, laptops and printer will be repaired at
citizen spare shop and all this will cost 323,000.

4.4 PRODUCTION STRATEGY

To ensure productivity in the market, the business will ensure that there should be paper
utilization resource, constant supply of the market, motivation of workers at every time
discipline to be observed at work and the manager.

4.5 PRODUCTION PROCESS

The business will be operating as a manufacturing industry which is already processed hence
good customer’s consumptions. For the product to be obtain them should follow the process
such as:

16
  Ordering the goods: The manager will be responsible by ordering of the stock
before the goods get shortage.
 Transportation: The business will hire a car for transporting goods from supplier
to premises and also for making advertisement or promoting goods they sell.
 Receiving and making payment: After the products are brought the sales mans
packed the inquired goods appropriately then the manager will prepare payments
with the cashier.
 Selling and distributing: This is the final step of goods at the premise. The sales
person will be in charge of selling the goods at the business premises and also
deliver some of the goods which were bought by placing orders.

4.6 GOVERNMENT POLICY AND REGULATION

The business will have to undergo government regulation such as licensing payment of tax
policy regulation policy.

Government policy enhances the status of the business in the society, government might
create local or national award program which will ensure that employees have courtesy when
dealing with the customer and also motivate the customers in order to maintain the working
morale.

MONTHLY MATERIAL REQUIREMENTS

Type of material Cost of unit Unit required Total cost Supplier

oranges 1500 120 crates 18,000 Red pink
company
Assorted fruits 1200 200kg 2400 Red pink
company
Sugar 6000 50 kg 6000 Red pink
company
Apples 6500 6 cartons 39,000 Red pink
company
Total 65,400

Monthly labor requirements

17
INDIRECT COST NUMBER OF TOTAL COST
WORKERS WORKERS
Manager 20,000 2 40,000
Accountant 12,000 2 24,000
Secretary 6,000 1 6,000
Watchman 5,000 2 10,000

Monthly overhead requirement

Expenses Amount

Water 2000
Power 500
Transport 1400
Rent 16,000
Commission 400
Rates 600
Total 20,000

18
 CHAPTER FIVE

5.0 FINANCIAL PLAN

5.1 PRE OPERATIONAL COST

ITEMS AMOUNT KSH

Transport 500
Stationery 550
Electricity deposit 305
Licenses 500
Professional fees 185
Water deposit 235
Advertisements 700
Equipment 67,800
Opening stock 1025
Miscellaneous 25,200
Total 97,000

5.2 ESTIMATED WORKING CAPITAL

ITEMS AMOUNT KSH

Purchasing of material 25,000
Commission 200
Stock 20,000
Debtors 15,000
Cash at bank 30,000
Cash at hand 12,000
Rent 5,000
Telephone bill 900
Post office 500
Electricity bill 1,300
Water bill 1,000
Maintenance 4,300
Office suppliers 2,200
Miscellaneous 1,100
Salary and wages 4,000
Total 109,000

19
 5.3 CASH FLOW FOR THE FIRST YEAR
ITEM JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC TOTAL
Cash Inflow  46,008  500,600  654,790  206,800  43,800  80,654  475,340  456,750  245,900  790,500      
638,80 875,60 1,098,95 1,377,20 156,70 1,812,30 2,018,60 2,207,90 2,402,20 2,643,20 2,870,00 18,101,45
B/F   0 0 0 0 0 0 0 0 0 0 0 0
70,00 60,00 50,00 90,00 60,00 80,00 40,00 100,00 70,00 80,00 40,00 810,00
cash in hand 0 0 0 0 0 0 0 0 0 70,000 0 0 0
13,00 12,00 11,00 14,00 10,00 12,00 8,00 10,00 18,00 50,00 9,00 12,00 179,00
Cash at bank 0 0 0 0 0 0 0 0 0 0 0 0 0
220,00 280,00 270,00 230,00 240,00 250,00 250,00 260,00 240,00 250,00 250,00 240,00 2,980,00
Cash sales 0 0 0 0 0 0 0 0 0 0 0 0 0
50,00 40,00 60,00 30,00 50,00 50,00 10,00 90,00 50,00 40,00 60,00 30,00 560,00
Debtors 0 0 0 0 0 0 0 0 0 0 0 0 0
450,00 450,00
Bank loan 0                     0
803,00 1,030,80 1,266,60 1,462,95 1,737,20 548,70 2,120,30 2,478,60 2,585,90 2,812,20 3,042,20 3,192,00 23,080,45
Total inflow 0 0 0 0 0 0 0 0 0 0 0 0 0

Cash Outflow                         -
37,50 47,50 27,50 37,50 37,50 17,50 57,50 37,50 37,50 37,50 37,50 37,50 450,00
Cash purchase 0 0 0 0 0 0 0 0 0 0 0 0 0
60,70 60,70 60,70 60,70 60,70 60,70 60,70 60,70 60,70 60,70 60,70 60,70 728,40
salaries 0 0 0 0 0 0 0 0 0 0 0 0 0
40,00 37,50 35,00 30,00 37,50 45,00 20,00 37,50 55,00 50,00 25,00 37,50 450,00
Loan repayment 0 0 0 0 0 0 0 0 0 0 0 0 0
2,00 1,00 3,75 2,00 2,50 1,50 1,00 2,00 3,00 1,80 2,00 2,20 24,75
Interest on Loan 0 0 0 0 0 0 0 0 0 0 0 0 0
3,75 3,75 3,75 3,75 3,75 3,75 3,75 3,75 3,75 3,75 3,75 3,75 45,00
Rent 0 0 0 0 0 0 0 0 0 0 0 0 0
5,00 4,00 6,00 3,50 6,50 4,50 5,00 5,50 8,00 2,00 3,00 7,00 60,00
Transport 0 0 0 0 0 0 0 0 0 0 0 0 0
5,00 5,00 5,00 15,00
advertisement 0           0         0 0
2,00 1,50 2,50 1,00 4,00 3,00 1,00 1,50 2,00 3,00 4,00 2,00 27,50
Water 0 0 0 0 0 0 0 0 0 0 0 0 0
4,50 5,50 6,50 3,50 7,00 6,00 3,00 7,00 5,00 3,00 4,00 2,00 57,00
Electricity 0 0 0 0 0 0 0 0 0 0 0 0 0
3,75 3,75 3,75 3,75 3,75 3,75 3,75 3,75 3,75 3,75 3,75 3,75 45,00
Creditors 0 0 0 0 0 0 0 0 0 0 0 0 0
164,20 165,20 149,45 145,70 163,20 145,70 160,70 159,20 178,70 165,50 143,70 161,40 1,902,65
Total outflow 0 0 0 0 0 0 0 0 0 0 0 0 0
Accumulated 638,80 865,60 1,117,15 1,317,25 1,574,00 403,00 1,959,60 2,319,40 2,407,20 2,646,70 2,898,50 3,030,60  
20
cash 0 0 0 0 0 0 0 0 0 0 0 0

5.3.1 CASH FLOW FOR THE SECOND YEAR

ITEM JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT
Cash Inflow                    
B/F   638,800 875,600 1,098,950 1,377,200 156,700 1,812,300 2,018,600 2,207,900 2,402,200
cash in hand 70,000 60,000 50,000 90,000 60,000 80,000 40,000 100,000 70,000 70,000
Cash at bank 13,000 12,000 11,000 14,000 10,000 12,000 8,000 10,000 18,000 50,000
Cash sales 220,000 280,000 270,000 230,000 240,000 250,000 250,000 260,000 240,000 250,000
Debtors 50,000 40,000 60,000 30,000 50,000 50,000 10,000 90,000 50,000 40,000
Bank loan 450,000                  
Total inflow 803,000 1,030,800 1,266,600 1,462,950 1,737,200 548,700 2,120,300 2,478,600 2,585,900 2,812,200
Cash Outflow                    

Cash purchase 37,500 47,500 27,500 37,500 37,500 17,500 57,500 37,500 37,500 37,500
salaries 60,700 60,700 60,700 60,700 60,700 60,700 60,700 60,700 60,700 60,700
Loan repayment 40,000 37,500 35,000 30,000 37,500 45,000 20,000 37,500 55,000 50,000
Interest on Loan 2,000 1,000 3,750 2,000 2,500 1,500 1,000 2,000 3,000 1,800
Rent 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750
Transport 5,000 4,000 6,000 3,500 6,500 4,500 5,000 5,500 8,000 2,000
Advertisement 5,000           5,000      
Water 2,000 1,500 2,500 1,000 4,000 3,000 1,000 1,500 2,000 3,000
Electricity 4,500 5,500 6,500 3,500 7,000 6,000 3,000 7,000 5,000 3,000
Creditors 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750
Total outflow 164,200 165,200 149,450 145,700 163,200 145,700 160,700 159,200 178,700 165,500

Accum cash 638,800 865,600 1,117,150 1,317,250 1,574,000 403,000 1,959,600 2,319,400 2,407,200 2,646,700

21
5.4 PROFOMA INCOME STATEMENT

PARTICULAR AMOUNT KSH AMOUNT KSH AMOUNT KSH

SALES YEAR ONE YEAR TWO YEAR THREE
Cash sales 25,000 27,500 30,250
Debtors 130,000 143,000 157,300
Purchased 75,000 82,500 90,750
Advertisement 428,000 470,800 517,880
Salaries 7,000 7,700 8470
Water bill 258,000 283,800 312,180
Rent bill 20,000 22,000 24,200
Loan repayment 45,000 49,500 54,450
Repair and 40,000 44,000 48,400
maintenance
Licenses 13,000 16,500 1,650
Telephone 300,000 330,000 363,000
Insurance 295,000 324,500 356,950
Post office bill 258,000 283,800 312,180
Transport 300,000 330,000 363,000

22
 Fiesta fruit juice parlour

BALANCE SHEET AS AT 1ST june 2022

FIXED ASSETS YEAR ONE(KSH) YEAR TWO(KSH) YEAR

THREE(KSH)
Computers 50,000 48,000 23,000
Furniture 157,000 154,000 30,700
Machinery 280,000 63,000 174,000
TOTAL 487,000 265,000 277,700
CURRENT ASSETS
Stock 32,000 28,000 10,000
Debtors 1,800 20,000 41,000
TOTAL 520,800 313,000 241,700
CURRENT
LIABILITIES
Capital 200,000 20,000 180,000
Loan 800 70,000 60,000
Creditors 520,000 23,000 1,700
TOTAL 520,800 313,000 241,700

23
24