THIKA SCHOOL OF MEDICAL AND HEALTH SCIENCES

MONEY MAKER MEAL DELIVERY

BUSINESS PLAN
NAME: NURU MHACHE MZUNGU
ADM NO: CND/J-0001/MOM/23

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 Declaration

I, NURU MHACHE MZUNGU, hereby declare that this business plan is my original work and can be
only be used for scholarly purpose

NURU MHACHE MZUNGU CND/J-0001/MOM/23

Signature…………………………………. Dates ………………………….

This business plan has been submitted with the approval of the undersigned to Thika School of
Medical and Health Sciences.

Supervisor

Supervisor

Signature……………………………………… Date……………………………………

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 Acknowledgement
I want to thank Almighty Father for giving me a clear mind and good health throughout the period and
also my beloved guardians for their financial and moral support that they gave to me during my research
period. My supervisor and my colleagues. May the LORD grant them good and successful life.

Contents
Declaration..................................................................................................................................................2
Acknowledgement......................................................................................................................................3
Executive Summary...................................................................................................................................6

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 BUSINESS DESCRIPTION.................................................................................................................6
MARKETING PLAN............................................................................................................................6
ORGANISATION AND MANAGEMENT PLAN..............................................................................6
OPERATIONS/ PRODUCTION PLAN..............................................................................................6
FINANCIAL PLAN...............................................................................................................................7
CHAPTER ONE.............................................................................................................................................8
1.0 BUSINESS DESCRIPTION........................................................................................................................8
1.1 BUSINESS NAME................................................................................................................................8
1.2 LOCATION OF THE BUSINESS............................................................................................................8
1.3 FORM OF BUSINESS OWNERSHIP.....................................................................................................8
1.4 PRODUCT AND SERVICES..................................................................................................................9
1.5 JUSTIFICATION OF BUSINESS OPPORTUNITY...................................................................................9
1.6 INDUSTRY..........................................................................................................................................9
1.7GOAL OF THE BUSINESS.....................................................................................................................9
Long term goals.....................................................................................................................................9
1.8 ENTRY AND GROWTH.....................................................................................................................10
CHAPTER TWO......................................................................................................................................11
2.0 MARKETING PLAN...........................................................................................................................11
2.1 POTENTIAL CUSTOMERS.................................................................................................................11
2.2 MARKET SHARE...............................................................................................................................11
2.3 COMPETITION.................................................................................................................................11
2.4 PROMOTION AND ADVERTISING....................................................................................................12
2.5 PRICING STRATEGY.........................................................................................................................12
2.6 SALES TACTICS.................................................................................................................................12
2.7 DISTRIBUTION.................................................................................................................................12
CHAPTER THREE....................................................................................................................................13
3.0 BUSINESS MANAGER......................................................................................................................13
Qualifications........................................................................................................................................13
3.1 PERSONNEL.....................................................................................................................................14
3.2 ORGANISATIONAL CHART...............................................................................................................15
3.2 OTHER PERSONENEL.......................................................................................................................15
3.3 RECRUITMENT, TRAINING AND PROMOTION................................................................................16

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 3.4 REMUNERATION AND INCENTIVES.................................................................................................16
3.5 EXIT STRATEGY...........................................................................................................................16
3.6 LICENSES AND PERMIT................................................................................................................17
3.7 SUPPORT SERVICES.........................................................................................................................17
CHAPTER FOUR.....................................................................................................................................18
4.0 PRODUCTION PLAN.........................................................................................................................18
4.1 PRODUCTION DESIGN AND DEVELOPMENT...................................................................................18
4.2 Business premises...........................................................................................................................19
4.3 GOVERNMENT REGULATIONS AFFECTING OPERATIONS...............................................................19
CHAPTER FIVE.......................................................................................................................................20
5.0 FINANCIAL PLAN.............................................................................................................................20
5.1 RATIO ANALYSIS..............................................................................................................................20
5.2 WORKING CAPITAL REQUIREMENT................................................................................................22
5.4 TOTAL PROJECT COST.........................................................................................................................23
5.5 PROJECTED CASHFLOW...................................................................................................................24
5.6 PROJECTED PROFITS AND LOSSES...................................................................................................25

Executive Summary

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BUSINESS DESCRIPTION
The owner intents to start up a meal delivering business in Bamburi town. Located in Mombasa
County. The name of the business will be; MONEY MARKER MEAL DELIVERY.
This will be a startup business under sole ownership, it will be delivering meals to its customers
obtained from different hotels.
The owner chose the business because; Nuru Mhache saw a business gap in the market that has
not yet been exploited. The suitability of the location, ready market for 24 hours a day,
availability of the materials and finished products, security, high population, good
communication networks and availability of social amenities makes the business idea a suitable
one.
MARKETING PLAN
The target group of customers will be anyone who wants their meals delivered at their doorsteps.
Different methods of promotion like direct mail, packaging and take away, discounts and free
delivery will be used. Pricing strategy to be used at the start will be market penetration where
products will be supplied to companies, supermarkets schools, and hospitals and at the airport.

ORGANISATION AND MANAGEMENT PLAN.

In order for the business to operate, it requires man power, to run the operations. In this case, the
owner will be the manager; Nuru will have other employees backing her up to run the business.
The owner will recruit staffs well skilled in their various duties. The business will obtain legal
document which are a must before starting up any business, it will also have supportive services
like; banking, insurance and a business lawyer.

OPERATIONS/ PRODUCTION PLAN.

Will need production facilities as packaging materials, delivery means.
The business will also have clear definitions of all the activities to be carried out. Regulations
affecting operations on employment, protection, health and safety, payments, recruitment and
remunerations will be highly observed.

FINANCIAL PLAN
This chapter entails the source of finance to be used in the proposed business and how the
finance will be used. Pre operational cost will be incurred before start of the business i.e.,
permits, electricity, water, insurance, machines, maintenance, equipment, adverts etc. the
business cash flow will indicate the outflows and inflows of cash, hence the balance sheet will
always be prepared at the end of each financial year for the breakeven analysis and profits ratios
to be determined.

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The desired financing of the proposed business is Ksh 100,000. Nuru will also get grant of
150,000 from the bank.

CHAPTER ONE
1.0 BUSINESS DESCRIPTION
MONEY MARKER MEAL DELIVERY will be a startup retail establishment that will be
delivering meals to its customers. This business will be providing fast and reliable delivery
services to the residents of Bamburi in Mombasa County and provide jobs to the community.

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1.1 BUSINESS NAME
The owner decisively named the business MONEY MARKER MEAL DELIVERY since it is
supposed to signify Nuru’s will to venture into any business and make it a successful business.

1.2 LOCATION OF THE BUSINESS

MONEY MARKER MEAL DELIVERY will be located at Bamburi town, Mombasa County.
The business will be advertised all over the town thus making easily noticed. The business
premises will be ideally located and easily accessible.
The business address shall be:

MONEY MARKER MEAL DELIVERY

P.O BOX 245,
BAMBURI,
TEL; 0794 941 660

1.3 FORM OF BUSINESS OWNERSHIP

MONEY MARKER MEAL DELIVERY will be operating as a sole proprietorship and single
handedly managed by one person who is the owner, with employed staff with various duties. The
owner who Is Nuru Mhache Mzungu will be the boss and her decision will be final in the affairs
concerning the business. Nuru chose sole proprietorship because she wants to be her own boss.

1.4 PRODUCT AND SERVICES

The products offered by the business will be meals of all kinds sourced from various
hotels and restaurants. We will closely follow generational preferences and match them. We
will tailor our inventory to meet the needs of our customers.

1.5 JUSTIFICATION OF BUSINESS OPPORTUNITY

The growing need for a luxurious life free from hectic stress and tiredness has brought by

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the introduction of delivery services all over the world and in this town our business will
save money and time for the customer who has walk or travel to a certain hotel in order to
buy food. In Bamburi, most of the customers are looking for means to save their time and
money.
1.6 INDUSTRY
MONEY MARKER MEAL DELIVERY will operate in the retail industry and delivery
industry to be specific. The demand for delivery services will be fairly volatile and rely heavily
on location and income of the customers.

1.7GOAL OF THE BUSINESS

The ultimate aim of starting this business is to make profit and make sure the needs of the
customers in the town are satisfied and making sure that the community is satisfied. So as to
achieve these we have set the following goals.
Long term goals

1. To established a delivery business in Bamburi town.

2. To provide quality meals and delivery service at a reasonable price.
3. To identify generation trends.
4. To help people learn importance of delivery services.
5. Provide employment in the community.

Short term goals

1. To earn profit.
2. To provide the best customer service.
3. To put a smile on the customers' faces.

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 4. To make our customers loyal to our business.

1.8 ENTRY AND GROWTH

The business will be located in a place where accessibility will be easy. We will also use the
market entry pricing so as to attract customers.
Growth strategy will include the following:
 Opening several branches in other towns in Mombasa and other big cities in the country.
 Improve the services offered
 Living by the mission and vision of the business precepts

CHAPTER TWO
2.0 MARKETING PLAN

2.1 POTENTIAL CUSTOMERS

Our target customer will be the residents of Bamburi town who wants their meals
delivered at their premises. We also have a solution to the people who can’t go

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shopping on our shop like pregnant women, and people who have a disability, or busy
people who can’t go shopping due to busy schedule.

2.2 MARKET SHARE

The population making our customer base in Bamburi town is about 400,000. Though we will be
expecting customers from other towns to ask for our services after advertising. The business
Is looking to dominate the market in the area as a startup.

Since the customers are in need of better and reliable services, our business will be ready to
improve on the existing service delivery. By trying to improve the business will attract more and
more customers thus increasing the deliveries.

2.3 COMPETITION
Bamburi town has several hotels operating there who offer delivery services but our business is
strictly focused on delivering meals. MONEY MARKER MEAL DELIVERY will be located
in a place where many customers will be requiring our delivery services. Since the owner
decided to exploit this market gab in the area, the competition is minimal.
The following are some of our competitors.

Competitor Strengths Weaknesses

Wakombo • Does all types of deliveries i.e., • Gifts and clothing comprise over half
deliveries clothing, accessories, gifts, and food. of the inventory, so meals are not
Charge 100 per kilometer delivered mostly

2.4 PROMOTION AND ADVERTISING

Owner wants this business to be recognized for it to be promoted thereby making profits. It will
be a hard process, for a business to rise to recognition without it engaging in a spirited
advertisement. It takes a lot of time for people to notice that certain business exists.

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Posters will be used to create awareness of this business to the customers and the public as a
whole. The most reliable modes of advertisement are through the local radio, Television and
newspaper, with the help of posters. the following is the chart for the activities.

2.5 PRICING STRATEGY

The pricing policy is to maintain as low prices with a satisfactory profit margin or maintain the
growth of the business. This will be a market entry pricing in order to capture customers.

2.6 SALES TACTICS

The business will use both online and direct. Direct selling is where the customers will be asking
for delivery directly at the various restaurants. In online selling the customer will order the meal
through our website and the delivery does meal ordering at different restaurants as directed by
the customer and delivers the meals to the customer. First the post will be advertised by
distribution of posters all over the Bamburi town.

2.7 DISTRIBUTION.
MONEY MARKER MEAL DELIVERY will be distributing orders made by the customers
directly at their destinations. Transportation of the ordered will be done through various means
i.e., motorcycles and bicycles. During advertising and promotion of the business customers will
not be paying transport a hefty fee but as time goes by only the fee will be increased.

CHAPTER THREE

3.0 BUSINESS MANAGER

Qualifications
 Experience in business of the same kind

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  Worked as a supervisor for 6 months at a delivery business.
 Good public relation, social and outgoing personality.

Duties and responsibilities

 Purchasing all the delivery materials needed for example, carrier bags branded with our name.
 Responsible for application of any permits needed before the business commences
 Employing and sacking staffs
 Giving rules and regulations to be followed by the staff
 Dealing with customers complains and grievances

Accountant

Qualifications
 Must have experience of running a business
 Good relations with public and workers
 Must have attained a certificate in business course

Duties

 Paying staffs salaries and wages

 Responsible for the financial needs of the business for example withdrawing money for the
business and banking money.

Sales person

Qualifications

 Must have a certificate in sales

 Must have experience in running a business

Duties

 Preparing and fixing price for all items traded within the business
 Dealing with advertisement.

Delivery personnel

Duties

 Delivering meals to the customers collecting their orders

3.1 PERSONNEL
The business structure is as shown below together with the business’s overall personnel.

N PARTICULA NO. OF MONTHLY

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O RS EMPLOYEES SALARY
.

1 Manager 1 10,000.00

2 Accountant 1 5,000.00

3 Sales person 2 10,000.00

4 Delivery 3 15,000.00
personnel

TOT 40,000.00
AL

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3.2 ORGANISATIONAL CHART

Manager Accountant

Delivery
Sales person
personnel

3.2 OTHER PERSONENEL

CLEANERS

Qualifications

 Should be KCSE certificate holder

 Should be able to keep premises and it’s environed clean at all times
 Should be able to speak in the local language

Duties and responsibilities

 Cleaning the work area

WATCHMAN

Qualifications

 Should be KCSE certificate holder or equivalent

 Should have worked as a watchman for at least 2 years
 Should be able to speak in Swahili

Duties and responsibilities

 Guarding the entire premise during the night

 Reporting to the manager of any suspicious arising

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 NO. PARTICULARS NO. OF EMPLOYEES MONTHLY SALARY

1 Cleaners 1 4,000.00

2 Security 1 4,000.00

Total 8,000

3.3 RECRUITMENT, TRAINING AND PROMOTION

The employees will be evaluated through their performance, how they do their job. Can they
keep time? The way they handle the customers, whether their relationship with the customer is
good or bad. They are expected to respect the customers and handle them as customers since
they are very important to us. They should be also well groomed and presentable.

3.4 REMUNERATION AND INCENTIVES

The incentives offered to the key management team are to ensure that everybody has the right
morale to work hard. The sales people will receive commissions for every sale they make so as
to motivate them. The rest of the employees will have their salaries increased as the business
continues to make profit in the future.

3.5 EXIT STRATEGY

With only 250,000 in liabilities as an account payable to the Bamburi town
council, the business will be in an extremely capable position to liquidate
its assets and exit the market if necessary. In the case of any emergency
regarding our firm’s finances or markets, we can very easily sell assets and
pay liabilities, however, we do not anticipate employing this strategy at any
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point in the near future.
3.6 LICENSES AND PERMIT
The owner will get a business permit from the town council so as to commence the business
operations in the area of operations. This will cost the business 5,000.

We will be getting a license from the trading council allowing us to operate in Bamburi.

3.7 SUPPORT SERVICES

MONEY MAKER MEAL DELIVERY will need other services for it to run smoothly. They will
be used as achievement. There are people supporting the business and they include:

Banking Services
The business will have its bank account with the Equity Bank of Keya, Bamburi Branch.
Web Design: a website will be launched incase customers order online.

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 CHAPTER FOUR

4.0 PRODUCTION PLAN

4.1 PRODUCTION DESIGN AND DEVELOPMENT

We will earn profits by delivering meals to our customers. Our pricing structure will
remain flexible, as we will implement suggested retail pricing on common meals as well as
the standard practice of key stoning prices. Additionally, we will use a value-based pricing
structure, which measures the value of various meals to our customers such as easy access,
quality, customer service.
As a delivery service providing business, MONEY MAKER MEAL DELIVERY will
conduct business seven days a week from Monday through Friday 8 a.m. to 10 p.m. and
Friday and Saturday from 10 a.m. to 11 p.m. During the holiday seasons and during special
events, we will extend service hours. We will use the building space to store our
motorcycles and administrative purposes.

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4.2 Business premises

Administrative space

Transport storage area

Washrooms

4.3 GOVERNMENT REGULATIONS AFFECTING OPERATIONS

MONEY MAKER MEAL DELIVERY will be fully compliant with the government policies and
regulations. The owner will acquire an operating license from the Municipal Council of
Mombasa.
According to the operating license, the business will have a limited area to operate from and will
be expected to operate within town. We will also adhere to the following acts;
Employment protection act

Which prevents unfair dismissal of staff. Any staff to be dismissed will be notified not less than a month
earlier.

Equal pay act

Which specifies that pay must be same for men /women doing same duties that are graded similar. This
shall be adhered to by the proprietor.

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 CHAPTER FIVE

5.0 FINANCIAL PLAN

5.1 RATIO ANALYSIS
Ratio Analysis
Year 1 Year 2 Year 3 Industry
Profile
Sales Growth n.a. 42.86% 25.00% 9.40%

Percent of Total Assets

Inventory 13.03% 24.66% 21.40% 42.10%
Other Current Assets 0.00% 0.00% 0.00% 32.30%
Total Current Assets 65.24% 75.17% 85.20% 76.10%
Long-term Assets 34.76% 24.83% 14.80% 23.90%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 15.76% 16.94% 15.71% 41.80%

Long-term Liabilities 44.27% 30.90% 19.69% 19.40%
Total Liabilities 60.02% 47.84% 35.40% 61.20%
Net Worth 39.98% 52.16% 64.60% 38.80%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 37.45% 37.45% 37.57% 23.10%
Selling, General & Administrative 34.68% 29.60% 27.79% 12.70%
Expenses
Advertising Expenses 0.00% 0.00% 0.00% 0.50%
Profit Before Interest and Taxes 6.33% 12.04% 14.08% 1.10%

Main Ratios
Current 4.14 4.44 5.42 2.19
Quick 3.31 2.98 4.06 0.50
Total Debt to Total Assets 60.02% 47.84% 35.40% 61.20%
Pre-tax Return on Net Worth 18.37% 47.74% 47.84% 3.40%
Pre-tax Return on Assets 7.34% 24.90% 30.91% 8.90%

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 2.79% 7.85% 9.73% n.a
Return on Equity 13.88% 35.81% 35.68% n.a

Activity Ratios

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Inventory Turnover 8.62 8.37 7.20 n.a
Accounts Payable Turnover 9.09 12.17 12.17 n.a
Payment Days 27 27 28 n.a
Total Asset Turnover 1.99 2.38 2.37 n.a

Debt Ratios
Debt to Net Worth 1.50 0.92 0.55 n.a
Current Liab. To Liab. 0.26 0.35 0.44 n.a

Liquidity Ratios
Net Working Capital $229,987 $323,103 $484,049 n.a
Interest Coverage 2.40 7.66 13.69 n.a

Additional Ratios
Assets to Sales 0.50 0.42 0.42 n.a
Current Debt/Total Assets 16% 17% 16% n.a
Acid Test 3.31 2.98 4.06 n.a
Sales/Net Worth 4.97 4.56 3.67 n.a
Dividend Payout 0.00 0.00 0.00 n.a

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5.2 WORKING CAPITAL REQUIREMENT
Operating expense and utility expenses
Items Price/cost

Motorcycles 120,000

utilities 30,000

Maintenance and repair 30,000

Administration cost 20,000

Total operation cost 10,000

Depreciation 10,000

Cost of finance 10,000

Total cost 230,000

5.3 ORGANIZATION AND MANAGEMENT PLAN COSTS

Type of Document Fees Transport/Other Total

Expenses

Business Name 1030.00 200.00 1280.00

Registration

Business Permits 5,000.00 20.00 5,020.00

Fire Protection Permit 1,000.00 1,000.00

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 Sanitary Permit 1000.00 1,000.00

TOTAL 8,300.00

5.4 TOTAL PROJECT COST

Descripti Total Cost

on

Machinery 24,000

Packaging material 15,000

Equipment 30,00
0

Utilities 10,000

Total fixed cost 80,000

Initial working capital 250,0

00

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5.5 PROJECTED CASHFLOW

Pro Forma Cash Flow Ksh

Year 1 Year 2 Year 3
Cash Received

Cash from Operations

Cash Sales 200,000 320,000 450,000
Subtotal Cash from Operations 200,000 320,000 450,000

Additional Cash Received

Sales Tax, VAT, HST/GST Received 0 0 0
New Current Borrowing 0 0 0
New Other Liabilities (interest-free) 0 0 0
New Long-term Liabilities 0 0 0
Sales of Other Current Assets 0 0 0
Sales of Long-term Assets 0 0 0
New Investment Received 0 0 0
Subtotal Cash Received 200,000 320,000 450,000

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending 124,430 125,270 135,200
Bill Payments 92,618 122,864 216,357
Subtotal Spent on Operations 71,048 84,134 98,557

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out 0 0 0
Principal Repayment of Current Borrowing 0 0 0
Other Liabilities Principal Repayment 0 0 0
Long-term Liabilities Principal Repayment 34,284 34,284 34,284
Purchase Other Current Assets 0 0 0
Purchase Long-term Assets 0 0 0
Dividends 0 0 0
Subtotal Cash Spent 151,332 282,418 355,841

Net Cash Flow 172,668 37,582 164,159

Cash Balance 242,668 280,250 444,409

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5.6 PROJECTED PROFITS AND LOSSES

Pro Forma Profit and Loss Ksh

Year 1 Year 2 Year 3
Deliveries 124,000 320,000 450,000
Direct Cost of Sales 77,943 125,633 230,059
Other 0 0 0
Total Cost of Sales 77,943 125,633 230,059

Gross Margin 46,057 94,367 119,941

Gross Margin % 37.45% 37.45% 37.57%

Expenses
Payroll 124,430 125,270 135,200
Sales and Marketing and Other 0 0 0
Expenses
Depreciation 18,480 23,760 34,650
POS computer software lease 3,000 3,500 4,000
Rent 56,093 77,000 80,000
Utilities- HVAC and phone/data lines 6,000 6,600 7,260
Insurance 6,000 6,600 7,260
Vehicle Delivery Expenses 6,000 12,000 24,000
Maintenance/Repairs 6,000 6,500 7,000
Cleaning/Supplies 6,000 6,500 7,000
Rent 23,664 23,664 23,664
Leased Equipment 0 0 0
Advertising/Marketing 12,000 24,000 36,000
Payroll Taxes 19,909 20,043 21,632
Other 0 0 0

Total Operating Expenses 287,575 335,437 387,666

Profit Before Interest and Taxes 58,481 158,929 232,275

EBITDA 76,961 182,689 266,925

Net Profit 25,791 103,640 160,580

Net Profit/Sales 2.79% 7.85% 9.73%

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