GARDEN CENTRE FIRM

DANIEL LESIRONKE PARIT

P.O BOX 50 NAROK
PHONE NO.: O740928535
EMAIL: paritdaniel6048@gmail.com

NAME OF THE CANDIDATE: DANIEL LESIRONKE PARIT

INDEX NUMBER: 5820010025

COURSE CODE: 1804

PAPER CODE:

INSTITUTION CODE: 582001

PRESENTED TO : THE KENYA NATIONAL EXAMINATION COUNCIL IN PARTIAL

FULFILMENT FOR THE AWARD OF CERTIFICATE IN ACCOUNTANCY.

EXAM SERIES: JULY 2023

SUPERVISOR
DECLARATION

I Daniel Parit declare that this business plan is my original work and has never presented to
Kenya national examination for any award for certificate or diploma.

Name of candidate: ...................................

Date: ............................................................

Sign: ...............................................................

Name of the supervisor: .............................

Date: .............................................................

Sign..............................................................
DEDICATION

My dedication goes to my beloved parents Mr. mokompo simel, Mrs. Eunice Namunyak simel
and my brothers and sisters for their great assistance in financing my studies and especially this
business plan and Mrs. Mary kairo for continuous encouragement in the course of my studies and
completion of my business plan.
ACKNOWLEDGEMENT

My acknowledgement goes to all these who assisted me towards completion of this business
plan, many thanks to my supervisor for providing me with guidelines invaluable counsel and
more so required guidelines of writing the business plan.

Secondly, I acknowledge my parents Mr. Mokompo simel and Mrs. Eunice namunyak simel for
encouragement and financial support.
EXECUTIVE SUMMARY.

Business Description.

The name of the business will be Garden Centre firm.

The name is chosen because it’s easy to pronounce and remembered, the owner will be Daniel
lesironke Parit the business is sole proprietorship, it deals with the production of animal’s feeds
and fertilizer selling and buying.

Location of the Business.

The business will be established one kilometer from Narok Town along Bomet Narok highway
in Narok County.

It is located next to Vick mate supermarket directly opposite to Nakweni garden firm near Ewaso
nyiro Station opposite to Mwalimu Plaza building located opposite to Ewaso Nyiro center.
MARKETING PLAN.

Marketing is the key management function which is targeted at finding a good market for
business survival; this chapter will show the customers and competitors to the garden Centre firm

This help to exploit the market opportunities.

It will also enable the business marketing the products and to understand the strengths and the
weakness of their competitors.

ORGANISATION STRUCTURE

The organization of the firm will comprises of the manager which is the business owner and the
other management team, supervisor, accountant, clerk supplier’s drivers and firm workers. The
management team and their duties, qualifications, personal recruitment training and promotion
Remuneration and incentives, license permits and by-law and supportive services.
CHAPTER ONE

Business Description

1.0 Introduction

This chapter discuss name, background of the owner location of the business, products of the
business and services, goals and objectives, the industries, forms of ownership, types of business,
justification of opportunities, entry and growth strategies.

1.2 Business Name

The name of the business will be Garden Centre firm, the name was chosen because it’s easy to
pronounce and remembered at same time is wake up call to residents urging them to emulate
from the business and venture into the farming industry.

1.3 Background of the owner

The owner will be Daniel lesironke Parit born in the year 1999 in Narok County, Narok South,
morijo Division and up to date resides in kisokon village.

He started his primary education in the year 2018

While in his secondary life he used to go to a nearby firm known as olongarua firm during
holidays which after completing his secondary school and attain kenya certificate of secondary
level led to being employed for one year before joining maasai mara technical and vocational
college in the year 2021 where he currently pursuing a certificate in accountancy

1.4 location of the business and address

1.4.1 location

The business will be established 1km from Narok Town along Bomet Narok highway next to
Vick mate supermarket.

The location is strategically positioned to the business in the sense, that the tarmacked, hence
faster delivery of goods and services.

It is directly opposite to Nakweni garden firm near Ewaso nyiro Station opposite to Mwalimu
Plaza building located opposite to Ewaso Nyiro center which surrounded by various education
institutions like Ewaso nyiro primary and secondary school and St Joseph secondary near maji
moto Hospital.
 MAP SHOWING LOCATION OF THE GARDEN CENTER FIRM

Muthurwa
Market

Olodonyo
Nakwen Maji moto
Oracha
Petrol firm
Technical
Ologarua Station
college
Firm

Hazzan David
Cyber Poshomill Ewaso Nyiro
Cafe Police Station

Kileleshwa
Restaurant

Narok Bomet Highway

Garden
Center
Firm

Mwalimu Ewaso Nyiro Center

Morijo
Plaza
Hospital

St. Joseph
Sec School
Nakwen
Garden
Center Prue
Ewaso Nyiro
Sec. School

Maji Moto
Hospital Mike Cyber Elangat
Cafe Market
1.4.2 ADDRESS

GARDEN CENTER FIRM,

P.O.BOX 50,

NAROK,

PHONE NO: 0740928535

EMAIL:paritdaniel6048@gmail.com

1.5 PRODUCTS AND SERVICES

1.5.1 PRODUCTS

The business will offer variety of products, these products includes seed, fertilizer and Animals
feeds

1.5.2 SERVICES

The business will offer different services which include market information, mechanization and
delivery of goods and services to customers.

1.6 GOALS AND OBJECTIVES

1.6.1 GOALS

Provide outstanding customer service.

Supply 25% of the demand of potential customers.

Make firm ordering and delivering goods and services quickly as possible.

Offer special that attract retailers or customers.

1.6.2 OBJECTIVES.

Profit Earning.

Market share and creation of customers.

Increasing productivity.

Utilization of Resources.

1.7 INDUSTRY.

The business will belong to financial services industry.

1.8 FORMS OF BUSINESS OWNERSHIP.

The business will be of sole proprietor type I.e. it is solely owned and run by the owner, this
form of business preferred because it does not need large outlay of capital, there is easy and
quick in decision making, the owner also passes most of the skills required and importantly he
will solely enjoy profit.

The total amount of ksh 500,000 capital required to start and run the business through the
formative stage which will be drawn from the following sources.

Sources of capital

Details Amount

Inheritance 200,000

Loans from bank 100,000

Hire purchase 150,000

Contribution from friends and relatives 50,000

Total 500,000

Type of Business

The business will be start up business

1.9 JUSTIFICATION OF OPPORTUNITY

The business will adequately address the high demand of Animal feeds and related products from
the local people.

The nature of the business is nature intensive and therefore, as it grows, job opportunities are
created for the local people

The large firms (maize firms) will increase productivity since fertilizers are distributed and this
enable local people to earn income and their standard of living will improved.

It will also utilize the available resources to make animals feeds from maize plants after
harvesting which would have been just not and wasted.

1.10 THE ENTRY AND GROWTH STRATEGY

1.10.1 ENTRY STRATEGY

To enter the market, the owner will personally visit chief barazas to promote the business.

Use the local media which most of the local people pay ear to and also give the institutional
customers more bags of fertilizer when they buy many bags, the price also should be 5% less
than those of competitors. This will enable the owner to retain and even win more customers,
also invite local people to the firm any time they wish to see and get their questions answered
adequately.

To out complete the competitors, after sale services will be made available I.e. distribution and
storage advice, maintain high hygiene strictly observe delivery times to avoid delays and produce
high quality animal’s feeds

Train and developed employees to increase their efficiency and also be used to assist improving
the firm performances.

1.10.2 GROWTH STRATEGIES

When customers are increases in number every day and more demand for product which increase
profits made in business operations, selling of product and services.
 CHAPTER TWO

2.0 MARKETING PLAN

INTRODUCTION

This chapter comprises of customers, competitors, market share of the business, pricing
strategies, sales, advertising and promotion strategies, distribution strategies.

2.1 CUSTOMERS

The business will have customers as follows.

INDIVIDUAL CUSTOMERS.

The almost form a large group of customers. They are frequent and buy in small quantities.

They are eight in number from Ewaso nyiro center and they will purchase three bags of animals
feeds every day.

One of the customers will be from Ewaso nyiro center police station and will purchase five bags
of animals feeds every day.

They almost buy animals feeds to feed their animals to boost their immunity from diseases. It
also has some nutritional values for animal’s body maintenance.

The minerals in animal’s feeds are those most needed in the building and maintenance of bones
and in proper proportions.

LOCAL CUSTOMERS

These are customers who aim to purchase animal feeds and fertilizer and seeds in large quantities
for resale to others customers.

There are two supermarkets who will serve the business.

INSTITUTIONAL CUSTOMERS

There are three institutional customers, they are frequent and buy in large quantities, this
institution include Ewaso nyiro secondary school and St Joseph secondary and primary buying
five bags of animals feeds every day each bag cost 1500.

2.2 COMPETITORS

There are three competitors in the area;

OLONGARUA FIRM
This firm has been supplying fifty bags of animals feeds and fifty bags of fertilizer over one year
in the area which makes it to have many customers since it enjoyed the monopoly in the market
before facing competition from garden center firm, olong'arua firm attracted many customers due
to well-polished staff that know how to handle customers .This enable it to retain customers and
expanded greater height of animals feeds products.

MAJI MOTO FIRM

Maji moto firm will be supplying fifteen bags of animal’s feeds and five bags of fertilizer to the
market. This market to the least producer due to its selling price of which is the second made
customers not to buy animals feeds from the firm frequently. However most of the animals feeds
goes bad and this has made it increases the price of the products also maji moto firm has bags
which branded hence it attracted the customer.

LEKUTA OPPORTUNITY FIRM

LEKUTA opportunity firm will be selling twenty bags of animal’s feeds and ten bags of
fertilizer to the market; they have captured the least market share due to production of low
quality feeds frequently.

On the other hand they sale products at low price hence made them attract many customers. The
product of Garden center firm will be of high value compare to that of my competitors, since
Garden Center firm use modern technology methods of production and Manufacturing products
and well maintains of products in the firm.

The strengths, weakness, opportunities and threats analysis of competitors.

FIRM STRENGTH WEAKNESS OPPORTUNITIES THREATS

GARDEN High quality Employees Ready means of Cheap price of

CENTER FIRM animals feeds boycott duties transport products

Olong'arua firm Well trained Overpaying of First to be Heavily taxed

personnel employees established in the
market

MAJI MOTO Use branded Lack of qualified Near to the Sale quality
FIRM bags to sale personnel customer products

OPPORTUNITY Sale products at Produce Have well design Competition

firm low price products of low building from three firms
quality
2.3 MARKET SHARE

The growth population number of Narok is approximate of 5000 people and customers who will
visit my business is 2000 and this population is approximate to 40% of the population.

Garden center firm 2000/5000× 100 =40%

Olong'arua firm 1500/5000×100 = 30%

Maji moto firm. 1000/5000 ×100 = 20%

Opportunity firm. 500/5000 ×100 = 10%

Bie chart shows market share of the business.

Garden Center Firm

Olongarua Firm

Maji moto Firm

Opportunity Firm
2.4 METHODS OF PROMOTION AND ADVERTISING

2.4.1 PROMOTION

Discount allowed methods

Firm will be offering traders discounts to customers who buy at large volumes and even firm
who are regularly purchase from the firm.

Coupons methods

Firm use coupons to offer discounts of goods to the customers.

2.4.2 ADVERTISING.

The business will advertise through;

Posters

Posters are painted in bright colours and places by the road to the site of the business; they will
be given near the market gates, schools and hospitals. The Posters will contain the products and
prices. The posters cost ksh 3000.

Local Radio.

The business will advertise using local FM vernacular radio stations like osotua FM, this help to
assist the customers to know about the services offered by the business.

The business will be advertised two days a week I.e. Monday and Wednesday at 8:30 to 9pm the
cost will be 15000 per advertisement.

Public meeting.

Firm will hold and attend public meetings where it will be promoting its products and even
displaying other products like animal’s feeds and teaching them on the benefits of using animal’s
feeds and fertilizer, the cost of public meeting will be ksh 2000.

2.5 PRICING STRATEGIES.

Competition based price.

The price of the products will highly be determined by the competitor’s price such that will be
profitable but highly cheaper than theirs. This will attract more customers than the competitors

Cost of the maintenance.

Price will be determined by the cost of maintenance of products in the firm and cost of
production. The price will be highly fixed such that it will cater for the production costs and
profit margins.

2.6 sale tactics

The business will use the direct selling this is where a customer makes an order of what he or she
want before he or she comes for it.

Indirect selling, where all the employees will negotiate well with the customers which ever and
whatever product they need to buy personal selling this is where I will interact with customers so
as to have good understanding of customers and price.

2.7 Distribution strategies.

Methods of transport distribution of goods and services. The business will be direct distribution.

The reason why the method is chosen, it is because distribution channels will ensure the
customer will get the products they require in time and in good condition as required.

Sale representative.

This will happen after the firm has explained and popularized around the place. The firm will
employ road transport as affordable means and is more economical since infrastructure is good.

Direct distribution

This is where customers will come to the premises to buy the products.

This will be mostly residents from the area, an extra of about half of the total cost would be
charged for product delivered at their doors and there is direct contact with customers enhancing
better understanding of their needs through interaction and answering their questions instantly.

DISTRIBUTION CHANNEL.

Wholesalers -> customers.

Wholesalers -> Retailers -> sales agents -> customers.

CHAPTER THREE
 3.0 ORGANISATION AND MANAMANAGEMENT PLAN.

Introduction

This chapter comprises of organization charts, duties, qualifications, number of personal,

recruitment training and promotion, remuneration and incentives, license permits and by-law and
supportive services.

3.1 ORGANISATIONAL STRUCTURE.

The organization of the firm will comprises of the manager (business owner) and other
management team, supervisor, accountant, clerk, suppliers and drivers and firm workers.

MANAGER

ACCOUNT
SUPPLIERS SUPERVISOR
CLERK

DRIVERS CLEANERS

3.2 DUTIES, RESPONSIBILITIES, Qualifications and Salaries.

Person Duties Responsibility Qualification Salarie

s

Manager   To ensure the  Diploma in Ksh

 Undertaking key employees are accountancy 15000
decisions in the performing their duties. . per
firm.  To monitor the health
  Employing and of employees month
destructing workers.  To ensure hygiene is
 Delegating duties to observed in the firm.
employees.  Must be
 Promoting of overseeing day to day
personnel activities.
 Will be reporting to  Will be ascertaining
 Must be a
the manager daily and recording daily
Diploma
operations. production of animal’s Ksh
holder in
 Will examining the feeds. 10,000
Superviso accountancy
quality of the per
r from
animals feeds. month.
recognized
institution.
 Must have
experience
of three
years

Account  Receiving and  Preparing payroll for  Must have a Ksh

clerk recording money workers Diploma in 6,000
 Keeping financial  Preparing annual accountancy per
reports financial statements.  Must have at month.
 Deposit the firm  Assisting the manager least two
finance in to the in budget planning years’
account. experience.

Suppliers  Reporting to  To ensure goods are  Must be of Ksh 5,

supervisor officer delivered to the age 18 to 30 000 per
 Delivering animals customer as per order years. month.
feeds as per order.  To ensure goods  Must have
 Signing when goods delivered are of high certificate of
are delivered to the quality and conditions good
respective conduct.
customers.
Firm  Packing animals  Making animals feeds.  Must have a Ksh
workers feeds.  Maintaining machine certificate in 9,000
 To clean the use for making animals agriculture per
environment of the feeds.  Must be age month.
firm of 18 to 30
years.
 Must have
experience

3.4 RECRUITMENT TRAINING AND PROMOTION

3.4.1 RECRUITMENT

The business will be recruiting employees who seek for job position after advertising for job
vacancies and positions required in receiving will be done and after the recruiting of successful
personnel will be posted.

3.4.2 TRAINING

The firm will offer training to its employees through the following ways

On job training

Here, employees will learn from the existing workers as they carry on with their work also
professional will be limited to the premises to offer training

Seminars and shows.

3.4.3 Promotion

Personnel will be promoted based on performance approval and competency

Time of service in the firm and their loyalty to the firm.

3.5 Remuneration and incentives.

3.5.1 Remuneration.

The employees will be paid in a fixed rate payment at the very end of one month.
3.5.2 Incentives

The firm will be awarding best employees yearly

The firm will be considering welfare of the employees, e.g. tea will be offered to employees
when are at work.

3.6 licenses, permits and by-laws

3.6.1 Licenses

The business will obtain license from county government of Narok to register with the county
ministry of agriculture. The cost will cost the firm ksh 300 per month.

3.6.2 Permits

The business will obtain permit from county government of Narok, permit fee of ksh 500
annually to the county government of Narok.

3.6.3 by-law

The business will operate its own activities by observing the by-law of Kenya. The reason for
observing this by-law includes

Business Name act which requires the firm be uniquely identified.

To ensure that business operations are legal and have permission to operate.

It provides for conduction working environment for the workers

Ensure workers are compensated for any injuries arising from accidents while at work.

3.7 supportive services.

The business wills laisse with the Kenya power and lighting company

P.O.BOX 50 -20500,

NAROK BRANCH.

BANKING SERVICES

KENYA COMMERCIAL BANK

P.O.BOX 100-20500

NAROK BRANCH.
INSURANCE SERVICES.

KENYA INSURANCE COMPANY,

P.O.BOX 176-20500,

NAROK BRANCH.

CONSULTATION SERVICES.

KENYA CONGRATULATIONS FIRMS,

P.O.BOX 150-20500,

NAROK BRANCH.

SECURITY SERVICES.

NAROK POLICE STATION,

P.O.BOX 150-205009,

NAROK.

POSTAL SERVICES.

LULUNG'A WHOLESALERS FIRM.,

P.O.BOX 55-204009,

NAROK.

CLEANING SERVICES.

ESTATE CLEANING SERVICES,

P.O.BOX 75-205006,
NAROK.

CHAPTER FOUR
4.0 PRODUCTION AND OPERATION.
This chapter comprise of production facilities, production process, repair and maintenances,
Business operations.

4.1 INTRODUCTION

4.2 PRODUCTION FACILITIES AND EQUIPMENT.

The business will operate along Narok Bomet high way in Narok town, near Vick mate
supermarket. The business acquire facilities from narok town , and the facilities use are
important to the business thus there are of high quality and required speed in time of
production ,can easily operate and control by the employees of the business and health to the
users , therefore enable fast production and better hygiene in handling the products. And the
facilities and equipment’s are serviced after every one month.

4.2.1 MATERIAL AND EQUIPMENT.

ITEMS EQUIPMENTS SUPPIERS QUANTIT COST TOTALS

Y (KSH)

1 computer Matrictech 4 20,000 80,000

P.O.BOX 324,

Narok.

2 Generator Generation Electronic, 1 20,000 20,000

P.O.BOX 200521,

Narok.

3 Building Regina Hardware’s 4 10,000 40,000

material
P.O.BOX 364-20,

Narok.

4 Chemicals Caroline farm Agro vet, 5 5,000 25,000

P.O.BOX 364-2005,

Narok.
5 CCT V camera KIMs technologies 5 20,000 100,000

P.O.BOX 423-421,

Narok.

6 Chairs Kwetu furniture’s, 7 500 3,500

P.O.BOX 743-400,

Narok.

7 Tables Zema furniture’s, 7 500 3,500

P.O.BOX 424-200

NAROK,

8 TV set Umoja technology, 2 15,000 30,000

P.O.BOX 493-400,

NAROK.

9 Books of Juma bookshop, 4 150 500

records
P.O.BOX 734,

NAROK.

10 Worker Merchants shop, 7 1000 7000

clothier’s
P.O.BOX 21007,

NAROK.

11 Business logs Merchants logo ltd 1 1000 1000

P.O.BOX 52100,

NAROK.

12 Telephone Oltalet mode 1 10,000 10,000

 P.O.BOX 50-2005,

NAROK,

320,500

4.2.2 MONTHLY LAROUR REQUIREMENTS.

particulars Amount ksh

Manager 75,000

supervisor 40, 000

Accounts clerk 16,000

Driver 5000

Workers 9,000

TOTALS 145,000

4.2.3 TOTAL COST OF PRODUCTION.

PARTICULARS AMOUNT ksh

Material and equipment 320,500

Monthly labor requirement 145, 500

TOTALS 465,000

4.3 PRODUCTION PROCESS.

During the process of production, products are passing through the machines properly handling
for production of high quality product and useful to the users and customers , fertilizer and
animal feeds are offered to customer in high quality and correct quantities and also during the
production process no interfering with machine while in operation.

4.4 REPAIR MAINTENANCE.

The Repair of machines and equipment are regularly performed and with proper handling and
accuracy repair using right methods and machines and materials needed. Also maintenance of
machines and equipment are highly adhered and concerned throughout the operation the repair
and maintained of machines and equipment are highly adhered and concerned throughout the
operation the repair and maintained of machines and equipment’s add up to ksh 7,000 after every
month of production.

4.6 PRODUCTION AND SERVICE STRATEGY.

Each day production of animal feeds and fertilizer the laborers will be engaged in production of
product to be effective and hygiene maintains.

The supervisor also ensure smooth operation and accuracy of productions is highly adhere.
Customer bringing in more customers to the firm.

The total monthly expenses will be ksh 10,000 for the input and workers to give a total of ksh
145,000.

The product will be stored in a sufficient storage space that is clean dry and order free using
sheaves which are orderly arranged.

4.7 REQULATION AFFECTING BUSINESS OPERATION

The business will acquire registration from Narok municipal council by getting operation permit
at a cost of 3,600 to enable business to operate tax code employments and labor law
advertisement email marking and licensing and permits.

Rulers of the business

1. Hours of operation are from 8am to 9pm evening.

2. No smoking within the business premises.
3. Avoid idiness within the premises
4. Customers discount is applicable when buying in large amounts
5. Ensures safety within the premises
6. Ensures proper placing of litters within the premises
7. No contact or handing of machines for customers.

CHAPTER FIVE
5.0 FINANCIAL PLAN
5.1. INTRODUCTION
This chapter comprises of pre –operation cost income and expenditures accounts
presented balance sheet profected cost statements desire financing proposed
capitalization profitabity ration and break-even point

5.2 PRE-OPERATION COST

NO Particulars Amount ksh

1 Computer 80,000

2 Generator 20,000

3 Building material 40,000

4 Chemical 25,000

5 Cctv camera 100,000

6 Chairs 3500

7 Tables 3500

8 Tv set 30,000

9 Books of records 500

10 Workers clothiers’ 7,000

11 Business log 1,000

12 Electricity 10,000

13 License’s 3,600

14 Advertising 20,000

Totals 344,100
5.3 INCOME AND EXPENDITURE STATEMENT.

INCOME 2024 2025 2026

Sales 267500 273900 283700

Parking fees 10000 10000 10000

Total 277500 283900 293700

Expenditures

Electricity 10000 10000 15,000

Water 12000 15000 15,000

Licenses 3600 3600 3,600

Rent 50,000 50,000 50,000

Staff salaries 145000 145000 145,000

Advertisement 5000 5000 5000

Permit 5000 5000 5000

230600 233,600 238,600

Profit 46900 50,300 55,100

 5.4 PROJECTED BALANCE SHEET.
Balance sheet

For the year ended 31st December 2024.

Asset ksh Ksh

Fixed asset Capital 300,500

Building 200,000 Liabilities

Machinery’s 100,000 Long term liabilities

Equipment 70,000 Loans from bank 100,000

Current asset

Stocks 10, 000

Cash in bank 15,000

Debtors 5500

400, 500 400,500

 BALANCE SHEET
FOR YEAR ENDED 31ST DECEMBER 2025

ASSETS ksh Ksh

Fixed assets Capital 400,000
Building 150,000 Liabilities
Machinery 90,000 Long terms
Equipment’s 100,000 Loans from bank 50, 000

Current assets
Stocks 90,000
Cash in bank 15,000
Debtors 5,000

450,000 450,000

Balance sheet

For the year ended 31st December 2026

Assets ksh Ksh

Fixed asset Capital 450,000

Building 150,000 Liabilities

Machinery 200,000 Long term

Equipment 50,000 Loans from bank 50,000

Current assets

Stock 70,000

Cash in bank 10,000

Debtors 20,000

500,000 500,000
5.5 PROJECTION OF WORKING CAPITAL

Items 1st year 2024 2nd year 2025 3rd year 2026

Assets Ksh Ksh Ksh

Machinery 100,000 90,000 200,000

Land 200,000 150,000 150,000

Stock 10,000 90,000 70,000

Cash in Bank 15,000 15,000 10,000

Capital 300,5000 400,000 450,000

 5.6 cash flow projection.

5.6.1 Cash flow for the year 2024

particulars JAN FEB MAR APR MA JUN JUL AUG SEP OCT NOV DEC
CH Y Y

Cash 68900 78300 8320 5230 3730 1023 4730 9730 1473 9230 4730
inflow 0 0 0 00 0 0 00 0 0
balance b/f

Sales 2675 20000 21000 2000 2000 3000 2000 3000 3000 2000 2000 2000
00 00 0 00 00 00 00 00 00 00 00 00

Debtor 2000 30000 30000 2000 5000 5000 2000 2000 2000 1000 3000 3000
0 0 0 0 0 0 0 0 0 0

Total 2875 29890 31830 3023 3023 3873 3223 3673 4173 3573 3223 2773
inflow 00 0 0 00 00 00 00 00 00 00 00 00

Cash
outflows

Electricity 1000 20000 30000 4000 4000 5000 4000 4500 4500 4500 4500 4500
0 0 0 0 0 0 0 0 0 0

Insurance 1400
0

Salaries 1450 14500 14500 1450 1450 1450 1450 1450 1450 1450 1450 1450
00 0 0 00 00 00 00 00 00 00 00 00

Rent 4000 50000 55000 5500 6000 6500 6500 6000 6000 6000 6500 6000
0 0 0 0 0 0 0 0 0 0

Water 2000 5600 6000 1000 1500 2500 5000 2000 2000 1500 2000 1000
0 0 0 0 0 0 0 0

Advertise 4000 2000

ment 0
Licenses 3600

Total cash 2186 22060 23600 2500 2650 2850 2750 2700 2700 2650 2750 2600
outflows 00 0 0 00 00 00 00 00 00 00 00 00

Accumulat 6890 78300 82300 5230 3730 1023 4730 9730 1473 9230 4730 1730
ed cash 0 0 0 00 0 0 00 0 0 0
 5.6.2 Cash flows for the year 2025

particular JAN FEB MAR APR MA JUN JUL AU SEP OCT NO DEC
CH Y E Y G V

Cash 17300 7760 13670 8570 1347 7970 1187 3870 60700 8070 1137 1457
inflow 0 0 0 00 0 00 0 0 00 00
balance
b/f

Sales 27390 2700 17000 2750 1750 1800 1700 2700 27000 2800 2800 2800
0 00 0 00 00 00 00 00 00 00 00 00

Debtor 5000 5600 6000 6000 6000 6000 5000 8000 7000 8000 8000 7000

Total cash 29620 3532 31270 3667 3157 3657 2937 3167 33770 3687 4017 4327
inflow 00 00 0 00 00 00 00 00 0 00 00 00

Cash
outflow

Electricity 10000 1550 20000 2500 3000 3500 4500 4500 45000 4500 4500 4500
0 0 0 0 0 0 0 0 0

Insurance 14000

Salaries 14500 1450 14500 1450 1450 1450 1450 1450 14500 1450 1450 1450
0 00 0 00 00 00 00 00 0 00 00 00

Rent 40000 5000 55000 5500 6500 6000 6000 6000 60000 6000 5000 5000
0 0 0 0 0 0 0 0 0

Advertise 4000
ment

Water 2000 6000 7000 7000 6000 7000 5000 6000 7000 5000 6000 7000

Licenses 3600

Total 21860 2165 22700 2320 2360 2470 2550 2560 25700 2550 2560 2470
outflow 00 00 0 00 00 00 00 00 0 00 00 00
Accumula 77600 1367 85700 1347 7970 1187 3870 6070 80700 1137 1457 1757
te cash 00 00 0 00 0 0 00 00 00

5.6.3 cash flow for the year 2026

particular JAN FEB MA APR MA JUN JUL AU SEP OCT NOV DEC
R Y E Y G

Cash 1757 2548 3288 4168 4538 5348 6049 5981 6361 71310 7741 82410
inflow 00 00 00 00 00 00 00 00 00 0 00 0
balance
b/f

Sales 2837 2800 2850 2800 2800 2793 2000 2700 2800 28000 2700 28000
00 00 00 00 00 00 00 00 00 0 00 0

Debtors 2000 2500 2000 2000 1000 1000 2000 1000 2000 10000 2000 10000
0 0 0 0 0 0 00 0 0 0

Total cash 4794 5598 6338 7168 3738 8241 1248 8781 7361 10030 1068 11140
inflow 00 00 00 00 00 00 00 00 00 000 100 00

Cash
outflows

Electricity 1500 2000 1500 2000 1500 2000 1500 2000 2000 15000 2000 15000
0 0 0 0 0 0 0 0 0 0

Insurance 1400
0

Rent 4000 5000 5000 5000 5000 5000 5000 5000 5000 50000 5000 50000
0 0 0 0 0 0 0 0 0 0

Advertise 4000
ment

License 3600

Salaries 1450 1450 1450 1450 1450 1450 1450 1450 1450 14500 1450 14500
00 00 00 00 00 00 00 00 00 0 00 0

Water 2000 6000 7000 8000 9000 5000 6000 7000 8000 9000 5000 6000
Total 2246 2310 2170 2330 2390 2200 2260 2420 2230 22900 2400 21600
outflows 00 00 00 00 00 00 00 00 00 0 00 0

Accumula 2548 3288 4168 4838 5348 6041 5981 6361 7131 77410 8241 89810
ted cash 00 00 00 00 00 00 00 00 00 0 00 0
5.7 BRAEK EVEN ANALYSIS

Helps us to determine if the business is running loss or profit

Variable cost

Particulars Amount

Electricity 10,000

Loan 50,000

Purchase 10,000

Total 70,000

Fixed cost

Particular Amount

License 3,600

Rent 50,000

Insurances 500

Salaries and wage 145,000

Total 199,100

Variable cost = (total sale – variable cost)/ (sale)

= (167500 – 70,000) /(167500)
= 58%

Fixed cost = (Total sale) – (Fixed cost)/ (Sale)

= (2837500) – (199100) / (167500)

= 51%
5.8 Desired Financing

Particular Amount

Pre-operation

Electricity 10,000

Building Material 40,000

Rent 50,000

General 20,000

Computers 80,000

License 3,600

Work cloths 7,000

Total 200,600

Fixed assets

Building 200,000

Machinery 100,000

Equipment 70,000

Pre-operation cost 570,600

5.9 proposed capitalization

Sources of capital Amount

Inheritance 200,000

Loans from bank 100,000

Hire purchase 150,000

Contribution from friends and relatives 150,000

600,000

5.10 Profitability Ratio.

Year 2024 = 82300 /100000 x100

= 82.3%

Year 2025 = 61100/79000 x100

= 66.76%