NJIRO FRUITS PRODUCTION COMPANY

BUSINESS PLAN

PREPARED BY: ROSE KAPINGA

 TABLE OF CONTENTS

TABLE OF CONTENTS ......................................................................................................... i

1.0 Introductory page .............................................................................................................. 1
NJIRO FRUITS PRODUCTION COMPANY ...................................................................... 1
Name(s) and address(es) of principal(s)................................................................................. 1
Nature of business .................................................................................................................. 1
Statement of financing needed ............................................................................................... 1
Statement of confidentiality of report .................................................................................... 1
2.0 Excutive summary ............................................................................................................. 2
3.0 Environmental and Industry Analysis ............................................................................. 3
Future outlook and trends....................................................................................................... 3
Analysis of competitors .......................................................................................................... 3
Market segmentation .............................................................................................................. 3
Industry and market forecasts ................................................................................................ 4
4.0 Description of venture ....................................................................................................... 4
Product ................................................................................................................................... 4
Office equipment and personel .............................................................................................. 5
Background of entrepreneurs ................................................................................................. 7
5.0 Production plan .................................................................................................................. 7
6.0 Operation plan ................................................................................................................... 7
Descrption of company’s operation ....................................................................................... 7
Flow of order for goods and/or services................................................................................. 7
Technology utilization............................................................................................................ 8
7.0 Marketing plan ................................................................................................................... 8
Pricing .................................................................................................................................... 8
Distribution............................................................................................................................. 8
Promotion ............................................................................................................................... 8
Product forecasts .................................................................................................................... 9
8.0 Organisation plan............................................................................................................... 9
Form of ownership ................................................................................................................. 9
Identification of partners ........................................................................................................ 9
Management-team background .............................................................................................. 9
Roles and responsibilities of members of organization ....................................................... 10

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9.0 Assessment of Risk ........................................................................................................... 12
Evaluate weakness of business ............................................................................................. 12
Contingency plan.................................................................................................................. 12
10.0 Financial plan ................................................................................................................. 14
Pro form income statement .................................................................................................. 14
Cash flow projections ........................................................................................................... 15
Pro formal balance sheet ...................................................................................................... 15
Source and applications of funds ......................................................................................... 16
11.0 Appendix ......................................................................................................................... 18
Organization structure .......................................................................................................... 18
Cash Flow ............................................................................................................................. 19
SWOT ANALYSIS .............................................................................................................. 20
REFERENCE ......................................................................................................................... 22

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1.0 Introductory page

NJIRO FRUITS PRODUCTION COMPANY is the new compan deals with fruits
production and fruits distribution.The head quarter offices are located at Njiro - Arusha
Tanzania.

NJIRO FRUITS PRODUCTION COMPANY

P.O. Box 31
Njiro, ARUSHA
Phone number; +255 713 492976
E-mail address; nfpc@gmail.com

Name(s) and address(es) of principal(s)

Managing Director
Njiro fruits Production Company
P.O. Box 3
Njiro, ARUSHA
Phone number; +255 768 165401
E-mail address; mdnfpc@gmail.com
Nature of business
Nature of this business is partnership form of business where by two individuals parties
manage and operate this business.

Statement of financing needed

The company seeks a total amount of 350,000,000 Tshs which will be used for purchasing
fixed assets such as land, trucks, motorcycle, buildings, office furniture and paying for
operational activities. The source of this capital is from owners’ contributions as well as
financial institution that is Tanzania People’s Bank. The owner’s equity is 250,000,000 Tshs
and and remaining balance that is 100,000,000 Tshs will be obtained from financial
institution as a loan, this loan will be paid off in ten years.
Statement of confidentiality of report
THIS DOCUMENT AND INFORMATION IN IT ARE PROVIDED IN CONFIDENCE,
FOR THE SOLE PURPOSE OF EXPLORING BUSINESS OPPORTUNITIES BETWEEN
THE DISCLOSING PARTY AND RECEIVING PARTY CONCERNING NJIRO FRUITS
PRODUCTION COMPANY AND MAY NOT BE DISCLOSED TO ANY THIRD PARTY
OR USED FOR ANY OTHER PURPOSE WITHOUT EXPIREE WRITTEN
PERMISSSION OF DISCLOSING PARTY.

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2.0 Excutive summary

Njiro Fruit Production Company is the one of growing companies in town dealing with fruits

production and fruits distribution. The fruits produced and distributed by the company

including oranges, pineapples and apples specifically.

The enterprise is expected to use simple, modern and convenience technology in production ,

storing and distribution of products as recommended by our technical experts. The company

is expected to produce quality, competitive and affordable fruits which will have endless

flavour of taste to meet satisfaction of our consumers.

Production and distribution of the products to the final consumer are done under great order

to retain its naturalist and quality. Due to this, from the targeted consumers in Dar es Salaam,

Dodoma and Singida the market information can spread into different places and welcome

more consumers to join the market.

The structural management of the enterprise will comprise of:

 Managing director

 Production manager

 Marketing manager

 Treasurer

 Secretaries and other temporal workers.

The company seeks a total amount of 350,000,000 Tshs which will be used for purchasing

fixed assets such as land, trucks, motorcycle, buildings, office furniture and other operational

activities. The source of this capital is from owners’ contributions as well as financial

institution that is Tanzania People’s Bank. The owner’s equity is 250,000,000 Tshs and

100,000,000 Tshs as a loan from financial institution.

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Once the company operations have started the financial investment will be emphasised on

making more research on fruits production and marketing to make more profit as well as

expanding the business.

Financial management and control will be under company policy, rules and regulations in

order to ensure maximum efficiency, effectiveness, responsibility and accountability of the

organisation

3.0 Environmental and Industry Analysis

Future outlook and trends

We expect to produce good and quality products so as to overcome the competitive condition

and then we expect to sell these products at affordable price so that every customer can afford

to buy our products. The products will be protected legally by being registered in the

Tanzania Burea Standard (TBS).

Analysis of competitors

The nature of our targeted market is perfect competitive market because there are also many

producers who produces the same products in the market, the targeted market is still wide

open because there is free entry and exist in the market due to demand and supply forces.

Market segmentation

Our main targeted consumers will be super markets, local markets, restaurants and hotels in

the regions of Dar-es-salaam , Dodoma and Singida, we have selected these specific markets

in these three region due to different reasons; for example in Dodoma and Singida which are

semi desert regions there is high demand for these fruits, so when we are going to supply

these products to these region we are to draw more customers because we are going to sell

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these products in affordable price means even the poorer people they can afford to buy these

products.

Industry and market forecasts

4.0 Description of venture

Njiro Fruit Production Company is the one of growing companies in town dealing with fruits

production and fruits distribution. The fruits produced and distributed by the company

including oranges, pineapples and apples specifically.

Product

Njiro Fruits Production Company (NFPC) products are oranges, apples, and pineapples and

they will be in the form of organic fruits because we are using organic methods in producing

these fruits, so they are organic fruits. These products will be produced and then be supplied

without being processed means we are selling fresh fruits. Then these fruits will be supplied

to these three regions which are Dar-es-salaam, Dodoma and Singida. the consumer will buy

our products because the method used in producing these products is organic method which is

free from the use of chemicals which will produces products which contain more chemicals

and then it can lead to accumulation of toxins in the body of human being when consumed, so

by producing these organic fruits more customers will be attracted to buy our products

because they are free from chemicals and have high utility value when consumed. The value

it will create to the customers is providing and supplying nutritional health to those customers

who will consume it and the value it will create to the market is by increasing the number of

consumers in the market because more consumers will be attracted with our products.

4
Office equipment and personel

Required material or equipment for office use during the production processes thing that will

be used and useful to operators in their particular fields or office in the project.

COMPUTERS:

For keeping all the data concerning financing progress and position, the progress of

production, number of stocks, sales trend of products and prices trend in the market even cost

of production

FURNITURES:

Such as tables and chairs and shelf during daily activity in the offices, electrical supplies to

ensure smooth performance of materials that are operating under electrical power.

Management and information system

For any business to perform smoothly and ensure profit and good interaction between

different department and units in the business there must be information flow. Information

flow from one unit to another within a firm will ensure good position of the firm.

Also there will be department for marketing research to ensure that all changes that arise

from within and outside market forces are being identified and make recommendations for

the course of action so as to ensure well performance or position of sales in market, product

and other marketing units.

Infrastructure, facility, plant and equipment requirement

The plant requires several infrastructures, facilities and equipment so as to enable smooth

performance in the production process. These are:

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 • Water supply system, for irrigation activities in the farms, and for cleaning purpose

especially in the builds of offers and for personal or individual uses.

• Fiscal outsourcing; Apart from the money or capital in hand to run the business that

is the result of the contribution from the partners of the business , still will require

financial help or assistance from outsources which will be CRDB Bank. Since the

bank lately has programs developed to support the start-up of business

[entrepreneurship] and especially agricultural activities with in the country. The

required amount is 100 million of TZs each in hand is 60 million TZs and 40 million

TZs from financial institution.

• Quality control; quality of product will be the imported first thing to be considered

and this will be from the starting or initial point in the farms, considering type of

seedlings will be plant in farms, type of fertilizer used ,farming practices, farm

management activities like extension services and agronomic practices. Handling of

product during harvest period or seasons , storage of these fruits by using some

chemical to keep them fresh, packaging of the fruits in sucks and tracks ready to be

transported

• Electric supply system; so as to be able to operate affectivity for machines or

equipment or things that depend on electrical power such as computer

Tractors;

Two tractors will be required in the production or farming process in farms.

Tracks;

Two tracks or Lorries also will be used to transport the products from farms to the market.

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Background of entrepreneurs

Rose Kapinga – Founder and CEO

Rose Kapinga is currently a student at Institute of Accountancy Arusha pursuing Master of

Business Administration also she is the holder of BSc in Software Engineering From Dar es

Salaam Institute of Technology. She began small business activities when taking his Diploma

studies.

Mr. Max Mwajuzi - Co-founder and vice-CEO

Mr. Max Mwajuzi is a businessman. He graduated from University of Dodoma with bachelor

of Commerce. He is currently working as Co-founder and vice-CEO in Njiro Fruits

Production Company.

5.0 Production plan

6.0 Operation plan

Descrption of company’s operation

Flow of order for goods and/or services

The line or way or system that products will pass though from initial point of production until

they reach the sales point so as they will be available to consumers

The supply chain will be as follows:

Producers-> Wholesalers-> Retailer-> Consumer.

Producer-> Wholesalers ->Processors/industrial users

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Technology utilization

One thing is certain; we will ensure that we have a wide range of fresh fruits available in our

store at all times with technological means of storage. It will be difficult for customers to visit

our store and not see the type of fruits that they are looking for. Our excellent customer

service culture, online store, various payment including electronicpayment options and highly

secured facility will serve as a modest advantage for us.

7.0 Marketing plan

Pricing

NFPC expect to sell these products in different prices, orange we will sell at 80/= Tshs,

pineapple at 800/= Tshs and apple at 400/=Tshs.

Distribution

NFPC products will be distributed to these three regions and we will use 2 Lories for 7

tones@ and we will use existing distribution channel.

Promotion

Promotion will be done through several aspects;

 Opportunities or sponsors will be given or offered for further studies so as to increase

the staff or workers knowledge and competence in the field.

 Ensuring of provision of social services so as to make smooth and easier the

performance of production of fruits to the employees.

 Rise in salaries and wages as the result of good performance of workers in the firm

and acting as one of the motivations.

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  Also offering of rewards to the hard working employee so as to motivate others to do

their best

Product forecasts

Our sales target is to sell 250 tonnes a year and we will achieve them by using best method

in production especially in the field, good management in terms human resource management

and efficient utilization of resources. According to high competition we usually claim have

25% of the total market

8.0 Organisation plan

Form of ownership

The Company will operate as partnership which will be owned by two people who are Rose

Kapinga and Max Mwajuzi.

Identification of partners

The business is owned by two persons known. Therefore Madam Rose Kapinga contributed

60% of the total contribution and Max Mwajuzi contributed 40% of the total contribution.

Company is managed by Madan. Rose Kapinga

Management-team background

There shall be formed the management team of fruits supply company which will be led by

the Managing Director. Other members of management team shall include relevant head of

other departments as well as office secretaries.

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The proposed management team is as follows:

 Managing Director .......Halima Abdul.

 Production manager…..Herman Gosh.

 Marketing manager…...Dedan Jordan.

 Treasurer………………Eva Kundy.

Position Qualification and skills

 Managing Director. MBA in Agribusiness.

 Production Manager. BSc. Production economics.

 Marketing Manager. BSc. Marketing management.

 Treasurer. BA in Accountancy and Finance.

Roles and responsibilities of members of organization

Managing Director

This will be operating as the head of the company where he will be in charge of all things

concerning the business of the company. All matters including decision making, organizing,

planning, coordinating and influencing will be under the Managing Director.

Other responsibilities of Managing Director are as follows:

 Monitoring the development of the company.

 Analyzing the performance of the company under the monthly basis.

 Ensuring the company’s quality and services reputation with customers is

enhanced.

 Complying with the company’s rules.

Production Manager.

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The Production manager will be in charge of day to day activities of the company,

mainly he will be concerning with production activities. He will be reporting to the Managing

director.

Other responsibilities of Production manager are as follows;

 Advice the Managing director in all matters concerning the management of the

company.

 Responsible for controlling and monitoring all stages of production.

 To coordinate between the production and marketing team.

 He will be responsible to environment protection.

Marketing Manager.

He will be in charge of sales and marketing department. The major role is to increase sales

volume per annum and promote the company’s products as well as advertising them.

Other responsibilities of marketing manager are as follows;

 Ensure the proper distribution of products to the markets.

 Payments of taxes related to the products supplied.

 Advice the Production manager on the type and quality to be produced.

 Decides on the type of markets to supply products for sale.

Treasurer

 He will be responsible for all accounting and finance activities.

 He will be responsible for preparation and reporting of the monthly closing according

to applicable project.

 Responsible for maintaining and reconciling the general ledger accounts on daily

basis.

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  Supervise and perform any required accounting activities related to the monthly

enclosing.

 Supervise and perform various financial statement(balance sheet and consolidated

financial statement)

Secretaries

At the beginning the company will be in the position of using three secretaries who will be

responsible for record keeping. They will be allowed to attend various meetings of the

company according to the need available. Again these secretaries will be reporting to the

head of departments which they are responsible to.

Drivers

The company will employ only four drivers at the beginning. Two of them will be driving

larger vehicles and the rest will be driving two tractors. The larger vehicles will be used to

supply products to the responsible markets as well as carrying the necessary materials for the

company such as inputs to be used in production

9.0 Assessment of Risk

Evaluate weakness of business

Unfortunately, the major weakness in the fruit production which present a challenge to the

business is the intrinsic perishability of the fruits product range.

Contingency plan

Risk and strategies for mitigation;

(a) Operational risk.

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 This is the type at business risk which occurs on the business when we fail to

attract and retain the potential customer towards the products. This means

business fail to provide the produces which satisfy the customers. This

confers certain risks including the failure to;

i) Anticipate and respond to consumer preferences

ii) Create and maintain successful strategic alliances with high quality

producers.

This kind of risk can be mitigated by continuing provision of unique produces

and reliable marketing information

(b) Competitive risks

This refers to the risk which occurs when the business faces the stiff

competition from existing business which offers the produces or substitute

produces. The best way for mitigating this risk is through provision of fresh

quality produces

(c) Financial risk

This refers to the risk which is caused by fluctuation of operating cost due to

change in government policies and regulations, thus resulting in revenue

fluctuation from one year to another.

(d) Contingency plan

This is the plan for unexpected cost which will happen to the business. These may cause by

calamities which happen unexpectedly such floods, theft, machine breakdown, power cut-off.

The business has been prepared 125000 Tshs as initial covering costs for unexpected

situations but as the business proceeds the budget will be increased by 2% 0f the net profit.

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10.0 Financial plan

Pro form income statement

2019 2020 2021

“000” “000” “000”

Sales: 235,200 250,000 280,000

Less: purchased costs 24000 30,000 35,000

Net sales 211200 220,000 245,000

Less: cost of goods 200 250 300

Sold (COGS)

Gross Profit 211000 219750 244700

Less: Operating expenses:

“000” “000” “000”

Salaries & Wages 21,000 21,000 21,000

Taxes and license fee 200 200 200

Electricity and water charges 840 900 950

Maintenance and fuel 1000 1500 1800

Office supplies (stationary) 100 150 200

Depreciation 1402.75 1402.75 1402.75

Net Profit: 186457.25 194597.25 219147.25

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Cash flow projections

Projected cash flow statement for it first three years: (1st phase)

Cash inflows:

Cash inflows 2019 2020 2021

“000” “000” “000”

Capital funds 50,000 55,000 60,000

Sales 235,200 250,000 280,000

Total 285,200 305,000 340,000

Cash outflows:-

Fixed assets 28,055 0 0

Office supplies 100 150 200

Depreciation 1402.75 1402.75 1402.75

Maintenance and fuel 1000 1500 1800

Marketing 200 150 100

Electricity and water 840 900 950

charges

Labour cost(salaries) 21,000 21,000 21,000

Taxes and license fee 200 200 200

Purchase costs 24000 30,000 35,000

Total 75791.75 32125.75 60652.75

Pro formal balance sheet

Balance sheet as per 2019, 2020 and 2021

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fixed asset 2019 2020 2021

“000” “000” “000”

Motor vehicle 3800 3600 3400

Land 0.5 acre 5700 5400 5100

Computer 760 720 680

refrigerators 950 900 850

Building 14250 13500 12750

Office furniture 242.25 229.5 216.75

Total fixed asset 25702.25 24349.5 22996.75

Current asset

Cash in hand 125 125 125

Other assets 202630 213122.75 240025.5

Total current assets 202755 213247.75 240150.5

Total assets 228457.25 237597.25 263147.25

Long term liabilities 12000 8000 4000

Equity 30000 35000 40000

Add: Net profit 186457.25 194597.25 219147.25

Capital + liabilities 228457.25 237597.25 263147.25

Source and applications of funds

The company seeks a total amount of 350,000,000 Tshs which will be used for purchasing

fixed assets such as land, trucks, motorcycle, buildings, office furniture and paying for

operational activities. The source of this capital is from owners’ contributions as well as

financial institution that is Tanzania People’s Bank. The owner’s equity is 250,000,000 Tshs

16
and and remaining balance that is 100,000,000 Tshs will be obtained from financial

institution as a loan, this loan will be paid off in ten years.

17
11.0 Appendix

Organization structure

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Cash Flow

Cash inflows 2019 2020 2021

“000” “000” “000”

Capital funds 50,000 55,000 60,000

Sales 235,200 250,000 280,000

Total 285,200 305,000 340,000

Cash Outflow

Fixed assets 28,055 0 0

Office supplies 100 150 200

Depreciation 1402.75 1402.75 1402.75

Maintenance and 1000 1500 1800

fuel

Marketing 200 150 100

Electricity and water 840 900 950

charges

Labour cost(salaries) 21,000 21,000 21,000

Taxes and license 200 200 200

fee

Purchase costs 24000 30,000 35,000

Total 75791.75 32125.75 60652.75

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SWOT ANALYSIS
STRENGTH
1.Great location for the business
 The shop located in a local community.
 The bills for renting is much cheaper,so
the cost of sales could be reduced.
 There is a 24/7 fitness center around the
shop The competition is not fierce, as
there is not the same kind of business
nearby.
2.Business type
 The business specialized in fruits and
vegetable,we are more professional
handling the operating process.
 We have got much more kinds of product
comparing with shopping center.
WEAKNESSES
1. We are new business we need to manage
large funds to start our business. It cost a lot
to start our business, we have to buy the
products and fill our shop. It cost us every
expensive. It cost every much in setting up a
new business.
2. Finance remains the main weak point for
new business man. As it very difficult to
borrow money from banks. We have met
many recommendations and sign-out much
legal paper to get loan. We have to take a
loan to set up business. So we have to think
about the instalment of loan payment and
interest of loan.
3. We get very less discount on wholesale.
As vegetables and fruits have very less
margin in their prices. The large stores by
like shopping centre effect the sale of
product.
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OPPORTUNITY
1.Marketing plan
 We plan to apply the pick up and delivery
service for individual customer.
 The customer can not only order goods
through the phone,but also logging on our
website.In the same time,we can give them
a free quotation,in order to meet their
needs.
2.Pay more attention to the supplying section
 In the present ,we mainly order the fruits
and vegetables from the suppliers.We have
to spare more budget into it such as the cost
of goods,the fees of delivery .Besides,it
probably takes a long while to wait for the
arrival of goods.In the future, it is highly
possible for us to open our own farm.On
basis of that, we can not only reduce the
cost of sales,but also the quality of goods
could be guaranteed.
THREATS
1. Competition has increased a lot in market,
so it remains a doubt in mind of every new
business man that his business wills success
or not.
2. Vegetables are seasonable, as in every
season, the vegetables are changed, so it is
very difficult to bring a huge variety of
products in store.
3. Vegetable and fruit business is highly
depends on whether as if there is any change
in weather it effects the production of
vegetable and fruits.
4. Risky especially when we have disaster
such as drought, hard storms and floods.
Prices of vegetables and fruits always vary
with growth of vegetables and fruits, if there
is less production then there are more prices
of products, if there is more production then
there are fewer prices of products.
5. In this condition people change their mind
for buying the products and also quantity of
products
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REFERENCE
Ayto, John (1993). Origin of Vegetables. New York: Arcade Publishing. ISBN 1-55970-214

Bernier, Roger Laurent. Five Criteria For a Successful Business Plan in Biotech. Archived

from the original on January 6, 2012.

Charles W. L. Hill; Gareth R. Jones (14 October 2009). Successful Business Plan: An Integrated

Approach. South-Western College Pub. ISBN 978-0-538-75107-0.

Eric S. Siegel, Brian R. Ford, Jay M. Bornstein (1993), 'The Ernst & Young Business Plan

Guide' (New York: John Wiley and Sons) ISBN 0-471-57826-6

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