Scribd Logo
Upload

Welcome to Scribd!

  • Benson Kioko Business Plan

    Uploaded by

    Benson
    16 views37 pages
    Hello, this is a business plan, teaching you on you run an auto spares and garage

    Original Title

    Benson kioko business plan

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Hello, this is a business plan, teaching you on you run an auto spares and garage

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    16 views37 pages

    Benson Kioko Business Plan

    Uploaded by

    Benson
    Hello, this is a business plan, teaching you on you run an auto spares and garage

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 37
    BUSINESS PLAN SURE GARAGE PRESENTED BY : KIPKURUI PATRICK INDEX NUMBER : 29541101088 COURSE CODE : 2306 PAPER NUMBER : 307B SUPERVISOR s: CHEROP PRESENTED TO Z THE KENYA NATIONAL EXMANITAION COUNCIL IN PARTIAL FULFILLMENT FOR THE AWARD OF DIPLOMA IN QUANTITY SURVEY. EXAM SERIES 7 NOVEMBER 2015 DECLARATION Thereby declare that this is my original work and has never been submitted to any examination body before for any award. NAME OF CANDIDATE: KIPKURUI PATRICK SIGNATURE: DATE: DECLARATION BY THE SUPERVISOR: I declare that this project has been submitted with my approval. Name: MISS CHEROP Signature: Date: 2 DEDICATION I dedicate this project to my family members who supported me financially, my teachers, my friends and classmates who encouraged me and supported me during the working of this project. ACKNOWLEDGEMENT First and foremost I would like to glorify the almighty for the strength and courage he accorded me during the writing of this project, I sincerely wish to acknowledge with gratitude my parents for their financial support throughout the writing of this project. also thank MISS CHEROP for her guidance and supervision during the writing of this plan. Lastly my regards are to my colleagues for their correction during the early stages of this plan. ‘Table of Contents DECLARATION... DEDICATION... ACKNOWLEDGEMENT.. CHAPTER ONE... 1.0 Business name address and telephone........ 1.1 LOCATION. 1.2 FORM OF BUSINESS OWNERSHIP. 1.3 TYPE OF BUSIENSS.. 1.4 PRODUCT /SERVICE. 1.5 JUSTIFICATION OF OPPORTUNITY... 1.6 INDUSTRY.. 1.7 GOALS OF THE BUSIENSS..... 1.8 ENTRY AND GROWTH STRATEGY. CHAPTER TWO... 2.0 MARKETING PLAN.. 2.1. 1CUSTOMERS. 2.2 MARKET SHARE.......... PIE CHART REPRESENTATION OF THE MARKET SHARE... 2.3 COMPETITON... 2.4 DEAL GARAGE... 2.5 WASHO GARAGE... 2.6 RICKAP GARAGE... 2.7 DISTRIBUTION STRATEGV........ CHAPTER THREE... 3.0 OGANISATIONAL AND MANAGEMENT PLAN..... 3.1 RECRUITMENT... 3.2 ORGANISATION PLAN. 3.3 KEY MANAGEMENT PERSONNEL......... 3.4 RECRUITMENT TRAINING AND PROMOTION.. CHAPTER FOUR.. 4.0 OPERATIONAL AND PRODUCTION PLAN......... 4.1 PRODUCTION FACILITIES AND CAPACITY... 4.2 BUSINESS OPERATION............ 4.3 PRODUCTS DESIGHN AND DEVELOPMENT..........000000e 4.4 PRODUCTION FACILITES.. 4.5 PRODUCTION STRATEGY... 4.6 PRODUCTION PROCESS... 4.5 REGULATION AFFECTING OPERATIONS... CHAPTER FIVE... 5.1 FINANCIAL PLAN. 5.2 PRE-OPERAITONAL COST.......... 5.3 ESTIMATING OF WORKING CAPITAL.. 5.4 PROFORMA BALANCE SHEET.. 5.5.1 PROJECTED CASH FLOW MONTLHY DATA FOR THE YEAR 2016..... 5.5.2 PROJECTED CASH FLOW MONTLHY DATA FOR THE YEAR 2017..... 5..3 PROJECTED CASH FLOW MONTHLY DATA FOR THE YEAR 2018. 5.5 PROFORMA BALANCE SHEET.. CHAPTER ON 1.0 Business name address and telephone The name of the business will be RICKAP GARAGE derived from the name PATRICK KIPKURUI. The sponsor of the business will be in charge of all operation. RICKAP GARAGE P.O BOX 002 KERICHO CELL PHONE 0729081709 1.1 LOCATION The business will be located along Tengecha Road in Kericho Town because it has a lot of people and it will be easy for the customer to access to the business the place is surrounded by many building which need garage equipment for repair and maintenance, The business is adjacent to various institutes and market as addition to this people from Kericho,Kericho buses terminals who normally use Tengecha road will be able to be served at the garage. equipments road will be able to get services in the garage, and acquire equipments from the garage which are portable in large quantities because of easy access to the business and quantity of goods. The sponsor of the business will choose the places because it captures nearly all the customers along Kericho town and various institutions and industries. The business will lease high quality serviced and equipment to attract more customers to enable the business succeed and expand in greater height. The business will sell portable item to it customer lie lamps, socket outs water heater, switches cables of different sizes buckle clip tuck hammer switch boxes tack nails junction boxes lamp holders couples conduct, electric kettles’, electric iron box ete. Shopping centre CoOcCIoCIC I Total Petrol station (J “TENGECHA ROAD 1.2 FORM OF BUSINESS OWNERSHIP ‘The business ownership will be a sole proprietorship. This will be due to the sponsor of the business will be the general manager of the business. He will share all the profit and losses incurred in the business. The owner of the business will be able to plan organize and co0rdinate all tenders and purchases involved in the business. The name of the sponsor of the business will be PATRICK KIPKURUI he is currently a student in OI'lessos Technical ‘Training institute undertaking diploma in land survey 1.3 TYPE OF BUSIENSS The business will be dealing with car diagnostics and car repair, with sale of their spare parts. The business will be selling spare parts of various car models 1.4 PRODUCT /SERVICE The business will be offering quick and affordable prices also the business will render better services like repair and maintenance of vehicle equipment in addition to that the business will offer quality products which are durable and proper in functionality the business will offer good prices for Garage commodities" for customers to be able to purchase them, Better service like nut rewinding, maintenance of Garage drills will be done at affordable and cheap prices this will enable business create good and proper relationship with its customers also repair of grinding machine, Garage fans generation and other garage machines will be done in the business. 1.5 JUSTIFICATION OF OPPORTUNITY The business will Rickap that all repairs are checked and tested before return to the customers. This will verify the effectiveness and durability of the equipment the business will also create employment opportunities to the local community through mobile services like conduct work strategy house building also the sponsor of the business will employ qualified personnel to aid other duties involved in the business. Trained personnel will be offered to workers who will be able to acquire basic necessary skill in garage field and other works. DUSTRY RICKAP GARAGE will fall under the energy industry. It will be a sole proprietor business but with other personnel working under it. The level of technology in the business. will be modern due to it quality products and services to customers. The capital needed to start up this business will be ksh 400,000 but as it starts the amount will increase as it expand. 1.7 GOALS OF THE BUSIENSS The goals of the business will be profit animation and expansion of the business. In addition to this the main goals of the business will be to offer high quality products and services to satisfy customer's wants To promote the sales of goods to customers through posters and internal memorandum = To provide employment opportunities to the people surrounding the business area and other from other various places and the town centre. * To purchase a lorry and pickup for catering for the transportation of the good. * To create a wider market for the goods through advertisements. 1.8 ENTRY AND GROWTH STRATEGY The business will start with sales of small items for example couples socket outlets healers electric kettle at affordable prices to attract more customers. The business will put up posters along the streets and various points medial to attract more customers. The sponsors of the 4 business will Rickap that the customer are well attended to and Rickap that no case of pilferage occurs. The sponsor of the business will open other branches of the same business of various places around Kericho town to enhance wider growth and success of the business. CHAPTER TWO 2.0 MARKETING PLAN 2.1.1CUSTOMERS The customers will include public customers who will come from various estates and centre adjacent to the business place also customers from Kericho west market and Kericho bus terminus will be able to buy their products from the shop on a fairly service. This will increase the sales of the business as its start, The expected Garage items to be purchased by the customers are water heaters witches switch boxed socket outlets electric kettle couplers conducts fans metal chip tuck nails adaptors boxes and thermostats’ residents along Kericho west market will benefit a lot from the street will access to the business Easley and purchases” these items. This will promotes sales of the business and profits maximization this group is the largest among customers and will promote the success of the business large institution will also purchase the goods according to the type and application of the items kisii university college will benefit from the business commodities like water heater cables socket outlets because it adjacent to the business building. This institution will offer high market or the business products. 2.2 MARKET SHARE The sponsor of the business is expected to arrange for high quality production is better services for maintenances of machine and good customer relationship. The business will be top among all other existing business the business will offer affordable prices to its customers to create food profit animation at the end of a week or month also good display and enough stock that is a warehouse will attract more customers from other existing garage business are as follows. Ideal Garage has poor storage of goods because the business has a wider range of products that is congestion in the working area making customers to leave and search for other garage dealers where there is enough space for dumping the items. Although it has number customers the business has poor customer’s relationship. The expected number of customers will be 12,000customers when both had and enough stock in the business. The number of customer will depend on the market and quality of the garage equipment. This is a major factor because good quality goods and provision of skill and better service for repair of garage machine will attract more customers. Business name Customer Market share DALYNES GARAGE 950. 23.75% RICKAP GARAGE 800. 20% WASHO GARAGE 850 21.25% SHAMTY GENERAL 600, 15% GARAGE IDEAL GARAGE 800 20% TOTAL, 4000 100% PIE CHART REPRESENTATION OF THE MARKET SHARE Sales ME RICKAPGARAGE m WASHOGARAGE = SHAMITY GENERAL GARAGE m IDEALGARAGE Description of items number of items sold for customers Description of | No ofitems | No of Total no of | Charge per | Total sales per item sold to customers per | item sold item month customers: month Motor Z 100 150 21000 60000. Iron box 6 200 200 500 30000 Water heater 10. 250 150 150 23000 Cooker unit 2 200 250, 800 25000 Electric fan 4 100 100 600. 13000 Electric kettel 5S 250 200. 400. 20000. GARAGE 2 300 200 2000 40000 microwave Total 213,000 2.3 COMPETITON Competition is important it makes the business to grow due to provision of better services than the other existing ones. The major existing potential competitors are ideal garage shamty general garage, darlyn’s garage and washo garage 2.4 DEAL GARAGE Itis located 4km from KerichoTown,it is involved in the sales of garage installation services to customers’ on request. The weakness of this business is that it only sells garage items but do not offer services like repair of motors and installation of garage equipment in new houses and building. 2.5 WASHO_ GARAGE WASHO GARAGE and electronics has well trained employees who get employed after finishing course in Garage installation. This business had opened other branches around the town and other different areas. In this business the weakness is that there is congested item, wrong storage of equipment and further more there is less operation period. 2.6 RICKAP GARAGE. This business location is quite unique areas which are different from the competitors. It is an easily accessible place for any customers or from and therefore will assist the business to capture the customer at large before reaching the competition place. It is an open area where any customer needing equipment or tool will see and purchase . RICKAP GARAGE has a big bill board to advertise garage sales, this will bring customer easily away from its competitors, The table below shows RICKAP GARAGE compared to the competitors in tem of location capital size and competitors works. Business name Location | Capital size | No. of competitive workers | total Dalynes GARAGE | 4 6 4 15 RICKAPGARAGE | 2 4 3 10 Washo GARAGE a 3 13 Shamty general 3 4 12 GARAGE Ideal GARAGE, 3 4 12 2.7 DISTRIBUTION STRATEGY The business will be dealing in sale of goods and provision of services to customer. Distribution will be mandatory supplied by the supply agency as stated. The supply agency will supply goods ‘on contact with the sponsor of the business. Also use of communication will be contract between the supply agency of the GARAGE equipment and the sponsor of the business. Below is a distribution network on the business. Distributor /supplier | Wholesaler Customer The most convenient method of transportation from the supplier to the dealers will be use of road transport. This will be efficient because it will be faster and easily available to enhance growth of the business. The expected cost for transport per month will be ksh 12000 due to the distance and weight of the delay of the commodities. Problems involved in this whole process will be delay of the commodities and shortage by the supply agency. CHAPTER THREE 3.0 OGANISATIONAL AND MANAGEMENT PLAN 3.1 RECRUITMENT The owner of the business will acquire employees from the town centre which are qualified in GARAGE from the town centre who are qualified in GARAGE installation. This will be done through advertisement and poster hanged from one plan to another. This will keep the customer informed. Also other workers will get employment on security cleaner secretary assistant accountant the owner if the business expects to get hardworking disciplined and honesty employees 3.2 ORGANISATION PLAN The business will be organized from top to bottom, The owners of the business will organize the business from the manger to other individuals involved in the business. The business is expected to set the following people working under it, The business will have manager who will be in charge of all activities occurring in the business, The manger will take responsibility of supervising cash flow in the business signing in new GARAGE materials brought from suppliers. This will Rickap that there is smooth and better flow of income in the business. A sales person will be needed to be in charge of total sales of raw materials to customers on a monthly and daily basis. He will also be in charge of all items in display to consumers. A technician will also be needed to be responsible for maintenance of machines and worn-out equipment also he is expected to do wiring of various installations outside the business on a contract basis ORGANISATION STRUCTURE. General Manager Assistant manager manager Technician . Cleaner J Security manager 3.3 KEY MANAGEMENT PERSONNEL The business will have the following employees under the sponsor of the business, Accounts An accountant will be responsible for all total sales involved in the business premises. Also will give record of total sales of the raw materials involved in the business premises, also will give record of total sales of the raw materials sold in the business. Technician. A qualified technician will be needed to do goods services to customers that are repair and maintenance of GARAGE machines and wiring of various installation sites in relation either the clients available. Sales clerk. The sales clerk will assist the business in selling raw materials to customers which need garage equipment and services. He is expected to check that all GARAGE items are on display and sell them at the correct rice to create good customer relationship thus enhance growth and expansion of the business. Other personnel Asecurity guard will be hired on payment on a monthly basis. He will be responsible of all items in the business area and surrounding when cloRickap of the business occurs, he will be responsible for scoring all property. 3.4 RECRUITMENT TRAINING AND PROMOTION The owner of the business expects to recruit workers from the surrounding communities in town there will be through advertisement through posters memos to keep them informed about the recruitment to the business premises also letter will be printed and given. Various CHAPTER FOUR 4.0 OPERATIONAL AND PRODUCTION PLAN 4.1 PRODUCTION FACILITIES AND CAPACITY The following points will be highlighted under these © Business operation © Product design and development © Product facilities and capacity utilization production strategy © Relevant regulation affecting the business. 4.2 BUSINESS OPERATION As explained earlier in the businesses description the business operation will be carried within the premises and outside premises. Also the service will be offered. The business hours of operation will be from 6.00am -11.00pm but during Occasions like wedding and other ceremonies it will operate according to the time booked. 4.3 PRODUCTS DESIGHN AND DEVELOPMENT It will offer product which will be designed together with addictive or like tomato source and chilies hips will be prepared according to order and soda kept in refrigerators during hot weather. 4.4 PRODUCTION FACILITES Machines will be used in most cases to make the work simple the machine to be used are like : * Deep fried * Potato peelers * Sling machines ‘type of machine quality ‘cost per unit ‘otal cost | equipment L computer B 1500 45000 Grinder 2 4000 8000 Bending spring 3 500. 1500 Hacksaw branches | 5 50 250, Welding machines 1 12000 12000, Multi meter 4 250 1000 ‘Combination pliers | 4 150 600 Phase tester 5 50. 250 Screw drivers 6 80. 480 Steel tapes 5 200 1000 70080 14 The table below shows the amount and number or raw materials required by the sponsor of the business in order to create smooth work and cash-flow in the business in order to create smooth work and cash flow in the business premises. ‘Raw materials Cash per unit ‘Total cost ‘Metal clip kts, 80 1600 Wood clip _ 20pkts 100 2000 Pye screw: 200lengts 300) 560000 Soldering iron 3metres 250 750 Cables flexible Srolls 10000 80000 Cables clips 30pees 200 6000 Uckles clips 20pes 150 2000 total 155.350 Repair and maintenance The will be done effectively to enhance good relationship either expected customers. Maintenance for garage machine like motors will be done in the business premises under a workshop this will enhance use of technology for better services also repair of water heaters and repair of GARAGE accessories and fittings will be done in the business by a proposed technical in charge. Also new installation like wiring of house will be done to create more relationship with available customers around the business this will enhance better growth and expansion of RICKAP GARAGE. Feature of proposed workshop As explained before the businesses will be a workshop for repair and maintenance of GARAGE equipment, The workshop will contain stationary appliances like bench vices and welding machines. This will give practical lessons to the workers to gain skills in GARAGE technology the diagram below show s the layout of the workshop. 15 ‘The above figure shows the business arrangement. The sponsor of the business will ensue that there is congestion and also Rickap enough free space for work and other various duties. Also the business will have enough space for future expansion like installation of motors and drilling machines. OTHER FIXED ASSETS Other fixed assets include spaces room will be constructed for special cases in the business. Also furniture will be installed. This will enhance efficiency in the business with the existing workers. ‘Also parking areas will be constructed for parking of cars to Rickap proper security services with the customers properties. Also installation of computers which will be used to store information concerning the business and preservation of projects. 16 4.5 PRODUCTION STRATEGY ‘The owner of the business will have all products available in the market. The products are expected to be of high quality and durable. Raw materials will also be available due to buying them in bulk by the customers. New spare part for GARAGE machine like motors will be bought by our dealers’ shanty company limited. The sponsor the business is expected to purchase them like switches conducts couples fuses top plugs lamp holder water heaters electric fans and all other commodities. Transport will be catered for by the distributor but as the business grows the sponsor of the business will purchase a lorry for the carriage of GARAGE products to reduce cost for transport. Monthly Production Expenses The monthly production expenses will be determined by the owner of the business the expenses incurred by RICKAP GARAGE are water, electricity rent and transport. The amount will be used to cater for all this bills in order to reduce high expenses. 4.6 PRODUCTION PROCESS RICKAP GARAGE will deal with install ns rives and good for sales to the customer. The owner of the business will install bending machine for steel conducts and purchase of welding machine. There items are important in trade activities around the business to capture potential customers. The business owners intend to make item from the business like steel doors grills and steel gates. The available materials will be in the business that is soldering rod and the welding 7 machine. theirs train workers and give them skills in joint of metals arc welding will be a source of capital to be business and other GARAGE items. 4.5 REGULATION AFFECTING OPERATIONS Regulation affecting Rickap Garage will be trade license and registration, Also weights and measures ,act by the goverment policy. If the business will not have registered and the authority will take action because of illegal nature, Therefore the owner of the business will already pay the licenses amount to the authority to reduce trouble from the government policy the amount to be paid for the license will be ksh 8,000 this include the business. The amount paid to the government keeps increasing due to the high rate of inflation in the country. Taxes will be paid to the government through the headsof the municipal council. The regulations regarding the business and the authority involved will affect the operation in the business. 18 CHAPTER FIVE $.1 FINANCIAL PLAN 5.2 PRE-OPERAITONAL COST This are all the expenses incurred in the business to the owner of the business. It will also indicate the starting and working capital expected before it starts. The table below shows the pre-operational cost. ITEM AMOUNT IN KSH Machinery and equipment 20000 Electricity and water deposit 2000 Insurance (annually) 6000. Licenses permits 5000 Business permits. 3000 Postal servicers” 2000. Advertisement 4000. Raw materials 7000 Telephone deposits 2000 TOTAL 51,000 $.3 ESTIMATING OF WORKING CAPITAL Theirs is the total estimate of the e0078| ed working capital for running the business effectively. The table below shows the estimate per year for RICKAP GARAGE lier Year 1 Year 11 Year HiT Cash In Hand 30000 20000 25000 Cash In Bank 15000 20000 35000 Debtors 5000 10000 5000 Stock In Progress | 35000 25000 [30000 ‘Stock Of Finished 20000, 25000 30000 Good TO! 105000 1000000 1125000 19 5.4 PROFORMA BALANCE SHEET. Assets Fixed assets ‘Amount (ksh) Machinery and equipment 1.200.000 Vehicles Furniture 500,000, 300,000 Total fixed assets 2.000.000 55.1 PROJECTED CASH FLOW MONTLHY DATA FOR THE YEAR 2017 FARTICULARS [aa [aR [Naw [are [wwe [ros [ane [ane Doct TNov Tone roma Casuuns[ienti sian nef fener Hewenfeae Sano fu fated Wr faa | [costes [Sissies Samo ca in — a — [rm sision—[sbaom [se | [seem —| font ae Samo —[ Ss cr been eat am ibe [ome — soso Sine {aeons — [Sopa Teal sak Sean a1 ssc Toxssoa7—}1Sumo pron reererr ie ams — sos — ss — ano — ss —| Seta —| mo — 9 — 5s — Sas — 03 — re oe Tiioo0 —"eo0 [nono sats —[ eno [roo — [seis po sono [Tso — [0a — sso ae Taz sania [Gost — eon | aeoot [esate —[stean—[ anon —[esana —[ezone [scant —[asane [ozone — [staat — Ps ase tat —[ssnen-—t sno — sonar —[ sant —[snea —[ aon0 —[ Sonar — [eam — [enon —laanan"— [roam — [a sat — [onan aspo [i300 Tos —[g90 — [13800 [sen Tm —Iit000 ions [19 —fio00 — Ta eqn ait 2000 eo [Snsn. sono Sno en Sn a9 nn — fone fae fa Jono — Sane S| oo Sis | apa — spn Comins [130 sian rc Os Cs =n) pss cal 55.2 PROJECTED CASH FLOW MONTLHY DATA FOR THE YEAR 2018 TSE we Taon200 | 1sosan [1700 a HEA re Taauoa| IAG 23000] ID 1411008 fiisaai—Yrsooenm—Jieo.0Ge —fionsone fais paso Toakana | Viswwow | iaxeTo0 Tasso © ° Tepion | Tavaa | Tawanan | oenooo | sisaaaoo | Saas | oaiseo0 5.3 PROJECTED CASH FLOW MONTHLY DATA FOR THE YEAR 2019 [rarnicunans | jan Tree [Man —_T apni {May [ats ave Cashes | 22.510 [218TH | Insc | 2083000 | 2TINET | Ie) | 2AM JonITw | HTT © ® © ° A © Cate [costes 1 17oooo0 | mm reson Tsono05 [amano [Daas 00000 — 21000 | saono — 30500 [uous F 0000 | socmon —sooo00 “Toul caked | S30a000 | Saab 3Son00 | Seon TORT Tala a [ssauais 2 9 ® © © Each oto Be ‘aoa | seoo0 [sano [ao | soeos —Son00 — [Seno — i 170800 —[ 008 [1 to00d [179000000 — [somo [ston [ase wuzrals 1 4s0000 —[asom00 —T-csomon | 650000 —[esto0o —[ 4s0000 [sso [rasascceal —-isoaon —Pisino—T-1san0—'isana0 Tenn —t eooe0 | 0000 ‘xleqtamie bat} 10000 | tto09 | 11009 | 10000 | 2000" —[tonna | Loe Rapars Geet 15000 Stoners a 005 210009 | soomn [330005 T0000 < Miselanesss so [soon aon — | woe [a eas — [ea “etd coh Ta7s000 | eam) 12am | 1962500 —P adn SSG TORONTO eutow ‘Nescachatiow | TI57I000 | Sina) | Save | TENN [HRSA] SarnaHO] TecavuN | TTTaNGO | TaR | Tancaaon | TER Sasa MOT | ° ® ° o o © 2B Proforma income statement —quarterly Descriptions Jan-Mar | April-June | June-Aug | Aug-Oct | Oct-Dec | Total revenue 1150000 [1200000 | 15000000 | 145000 | 1250000 |” 6550000 sales 1000 18000. 9000 15000 18000 71000 debtors tio1000 [1218000 | 1509000 | 1405000 | 1268000 | 6621000. Total revenue 60000 45000 50000 70500 50500 276000 Cost of goods sold | 60000 1173000__| 1459000__| 1394500__ | 1217500__| 634000 Gross profit 1,101000 [1173000 —|"1459000 —|"1394500 171217500 |" 634000 ‘expenses ‘Transport 12000 9000, 8000 11000 14000 18900 Electric bill 3600 3800, 3750 3850 3900 2300 Telephone bill 00 300 450 550. 400 24000 Salaries 45000 45000 60000 55000 35000 407000 Purchases 41000 62000 78000 98000 128000 | 501200 Total expenses 1022000 [115100 150200 | 168400 | 181300__| 5627800 NPB ‘998800 | 1057900 | 1308800 | 1226100 | 1036200 | 140695 TAX 2.5% 24970 204475 | 32720 3062550 _| 25905 140095 [profit After tax___[ 973830 ___| 10314525 _| 1276080 _| 11954475 | 1010295_| 5487105 Profoma Income Statement Deseription Yearly 2017 Revenue (6550000 Sales 74000 Debtors {6621000 Total revenue 276000 Cost of good sold 12690000 12690000 Electric bill 37800, 4600 Telephone bill 24000 Salaries 407000 Purchases 522400 Net profit before tax Tax 2.5% 304 Profit after tax 11863410 5.5 PROFORMA BALANCE SHEET Assets Fixed_assets Amount (ksh) Machinery and equipment 1,200,000 Vehicles 500,000 Furniture 300,000 Total fixed assets PROFORMA BALANCE SHEET Insurance € Fixed assets Amount ksh vehicles 300000 furniture 300000 Total fixed assets 8000000 158000 200,000 13000000 Total current assets 2558000 Total sum of 3358000 liabilities Initial capital 400000 ‘Wages and salary 185000 Tax payable 10756.25 Total sum of liabilities '95 70625 25 Total sum of liabilities Owners equity = total assets-total liabilities Breakeven point Fixed expenses Cost ksh licence 8.000 salaries 185000 rent 20,000 total 213,000 Variable expenses electricity 15,150 ‘Water bill telephone 1,900 total 17,050 {otalvariableexpenses. 9 totalsales 17,050, 499 = oon,o00 * 10042625 Liabilities Initial cost 3,500,000 Long term liability Wages and salaries 1,400,000 Tax payable 70,000 26 Insurance 20,000 Total liability 4,990,00 Total sum of liabilities Total equity = total assets total liability 810,000 BREAK EVEN POINT Break event point | cost Fixed expenses licenses 50,000 salaries 1,250,000 rent 25,000 Other service [total 1,325,000 Variable expenses electricity. 4,500 ‘Water bill 31000 Telephone bill 2,500 Repair and maintenance Advertising and promotion. 0 total 17,500. Profitability ratios = Mossprofit , i. Gross profit me 4997 .500_ 5,150,000 10 = 97.038% netprofitaftertax fi, Return on equity = 222litaftertax 9 netequity 4.318, 713.75 200,000 “10 =21,593% a inv netprofitaftertax eturn of investment ‘totalinvestment 4,318,713.75 568,050 = 7.0027 Desired financing i, Purchase of machinery and equipment ksh 317,000 Wages ksh 185,000 iii, Installation ksh 130,000 Total ksh 652,000 Proposed capitalization i, Personal saving ksh 2,250,000 ii, Bank loan 3.2004 Donors. ksh 1200,000 Total ksh 6,650,000 APPENDIX 1 BUSINESS LOCATION MAP Shopping centre Total Petrol station [)

    You might also like