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Business management (Pwani University)

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BUSINESS
PLAN FOR
A
NUTRITION
CLINIC
Anthony N.K.

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Submitted by Anthony Njenga for class work assessment.

ADM. NO.: H09/PU/0419/09

UNIT TITTLE: NUTRITION ENTRERPRENUERSHIP

UNIT CODE: HND 309

EXAMINER: DR. TOCHI B.N.


I
DATE OF SUBMISSION: 31 MAY 2011

Anthony N.K.

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BUSINESS NAME:

BUSINESS LOGO:

COMPANY OWNER: Anthony Wang’ombe

ADDRESS: 48100-20100.

TELLEPHONE: 0706176144/0763176144.

BUSSINESS PLAN FOR: Opening a consultation and nutrition clinic in Nakuru town.

EMAIL ADDRESS: heros_clinic@consultant.com

WEBSITE: www.herosclinic.ac.ke

DATE: 20th May 21, 2011


Anthony N.K.

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Table of Contents
1.0 EXECUTIVE SUMMARY................................................................................................................4
1.1 Objectives.......................................................................................................................................4
1.1.1 AFTER TEN YEARS..............................................................................................................5
1.2 Mission...........................................................................................................................................5
1.3 Keys to Success..............................................................................................................................5
1.3.1 Patients....................................................................................................................................5
1.3.2 Staff and Office Organization..................................................................................................5
1.3.3Finances....................................................................................................................................5
1.3.4 Marketing and Sales................................................................................................................6
2.0 BUSSINESS DETAILS......................................................................................................................6
2.1 BUSINESS LEGAL REQUIREMENTS........................................................................................6
2.2 BUSINESS RESOURCE REQUIREMENTS................................................................................6
2.3 BUSINESS IDEA...........................................................................................................................6
2.4 PURPOSE OF THE BUSINESS....................................................................................................7
3.0 SALES AND MARKETING..............................................................................................................7
3.1 TRENDS IN THE WORLD MARKET..........................................................................................7
3.2 UNIQUENESS OF MY BUSINESS..............................................................................................7
3.3 PROFILING CUSTOMERS..........................................................................................................7
3.4 PREFERENCE ABOUT MY CUSTOMERS.................................................................................8
3.5 CUSTOMER ATTENDANCE EXPECTATION............................................................................8
3.6 COMPETITORS MARGIN...........................................................................................................8
3.7 MANAGING COMPETITION......................................................................................................9
3.8 MANAGING RISKS.....................................................................................................................9
3.8.1AVAILABLE RISKS................................................................................................................9
3.8.2 MANAGEMENT OF AVAILABLE RISKS............................................................................9
4.0 PRICING............................................................................................................................................9
4.1 PRICING MENUS.........................................................................................................................9
4.2 PRICE COMPARISON WITH MY COMPETITORS.................................................................10
4.3 REASONS FOR THE DIFFERENCE..........................................................................................10
5.0 PROMOTION AND ADVERTISEMENT OF BUSINESS..............................................................10
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6.0 LEADERSHIP, OPERATION AND SUPPLY OF THE BUSINESS...............................................11


6.1 LEADERSHIP.............................................................................................................................11
6.1.1 GENERAL MANAGER........................................................................................................11
6.1.2 SUPERVISING OFFICER....................................................................................................11
6.1.3 CHIEF ACCOUNTANT........................................................................................................12
6.1.4 INFORMATION COMMUNICATION TECHNOLOGY ASSISTANTS.............................12
6.1.5 DIETITIAN/NUTRITIONIST...............................................................................................12
6.1.6 RECEPTIONIST...................................................................................................................13
6.1.7 SECURITY OFFICER..........................................................................................................13
6.2 RECRUITMENTN AND TRAINING.........................................................................................13
6.2.1 RECRUITMMENT...............................................................................................................13
6.2.2 TRAINING............................................................................................................................14
7.0 RUNNING OF THE BUSINESS.....................................................................................................14
7.1 STAFF..........................................................................................................................................14
7.2 PREMISES REQUIRED..............................................................................................................14
7.3 SUPPLIERS AT THE START......................................................................................................15
7.4 EQUIPMENT NEEDED..............................................................................................................15
7.5 MANAGING OPERATIONAL RISKS........................................................................................16
8.0 FINANCIAL PLAN.........................................................................................................................17
8.1 START UP COSTS.......................................................................................................................17
8.2 PERSONAL SURVIVAL BUDGET.............................................................................................17
8.3 PROFIT AND LOSS FORECAST MONTHLY...........................................................................18
9.0 SOURCE FINANCING...................................................................................................................18
9.1 TOTAL REQUIREMENT FOR THE START OF THE BUSINESS............................................18
9.2 Managing financial risks..............................................................................................................19
9.2.1 Risk identified.......................................................................................................................19
9.2.2 Management of the risks identified........................................................................................19
9.3 References....................................................................................................................................20

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1.0 EXECUTIVE SUMMARY


The newly to be opened business will be recognized as HEROS NUTRITION AND
CONSULTATION CINIC (HNCC). The business will be owned and managed by I; Dr.
Anthony Njenga, MD as a sole proprietorship. I will be responsible for ensuring the general
health of his patients and creating a viable and profitable business medical practice.
Throughout the first year, I will work closely with advisers from Ministry of health to get the
clinic on a sound financial and operational footing.

I will focus on diagnosing and treating conditions of all ages while emphasizing preventative
nutrition care and the overall health and wellness of my patients. The clinic will utilize new
equipment and a trained staff that will be able to optimize the care of each patient. I understand
that there are many factors that can affect health, including exercise, diet, environment and
heredity. Heros Nutrition and Consultation Clinic will try to provide the most comprehensive
nutrition care possible in order to optimize the care and well-being of each patient.

I will also carry out minor procedures in my office, but only after both risks and benefits have
been explained and understood and written consent has been obtained from the patient. I will
refer patients, when appropriate, to specialists and/or to hospitals for tests, further treatment
and therapy.

I will be assisted by various employees as stated in the plan. Ongoing training and support for
these employees will be provided by Kenya Nutritionist and Dietetics Council Every Year.

The marketing strategy involves a combination of print media advertising, website


development, networking, and promotional events, all aimed at residents living within the
country. We will project a gradually increasing patient load over the first several years, as we
find out place in the community.

I will use all my experience and knowledge to create a successful and profitable practice. I will
leverage the years I spent in solo practice elsewhere to help model my new business. My past
experience in conjunction with my progressive and diversified approach to each patient will
allow me to rapidly grow a large and devoted patient base. “A goal without plan is just a wish.”
By Antoine de saint.

1.1 Objectives
The objectives for the 3 years of operation include:

1. To create a nutrition practice that will exceed patients' expectations.


2. To provide high-quality health care to residents of the area.
3. To create a nutrition practice that helps serve the community's needs.
4. To form a health care practice that is able to survive off its own cash flow in 10 months
or less.
5. To increase the number of patients by 20% per year through superior performance.

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6. To develop a comprehensive website that includes online booking capability, as well as


additional information about the practice, hours, demographic information, health
information and much more.
7. Average visits per month of 500 to 650 patients within the first 10 months and 900+
patients by the beginning of the second year.

1.1.1 AFTER TEN YEARS


1. To have established branches of the HEROS clinic in each and every country in the
world.
2. To have established strong partnership with over 50 NGOs in the world.
3. To have established a world class research centre for production of new and affordable
nutrition supplements and egorgenics.

1.2 Mission
The mission of Heros Nutrition and Consultation clinic is to promote the health and well-being
of the local population by providing accessible, high-quality nutrition care for people of all
ages. It is committed to providing services that will exceed the expectations of our patients,
resulting in a successful and profitable business.

1.3 Keys to Success

1.3.1 Patients
I. Focus on patient care
II. Educate patients on the importance of preventative care
III. Educate patients as to the importance of yearly check-ups
IV. Implement an aggressive and accurate recall system in which to remind patients to have
regular check ups

1.3.2 Staff and Office Organization


1. Recognize that the office staff is crucial in the success of the business
2. Create incentives by allowing the office staff to benefit from increased profits generated
by the office
3. Create a streamlined office system to minimize patients' waiting time

1.3.3Finances
I. Keep a low overhead
II. Optimize the number of patients we can see in a hour while providing quality nutrition
care
III. Use the latest in electronic billing and/or utilize an outside billing company

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1.3.4 Marketing and Sales


1. Aggressively market and create a presence in the community by giving high school
talks, ER calls, hospital talks and doing volunteer work, business society meetings, and
much more.
2. Have an office front on a busy street with accessible parking.
3. Locate in an area with a high patient-to-dietitian ratio.

2.0 BUSSINESS DETAILS

2.1 BUSINESS LEGAL REQUIREMENTS.

1) Business name and company registration.


2) City council business permits.
3) Food and health permit.
4) Fire safety certificate.
5) The KNDI nutrition practice permit.

2.2 BUSINESS RESOURCE REQUIREMENTS

1. Land resource.
2. Human resource.
3. Finance resource.

2.3 BUSINESS IDEA


It has come to my attention that many people have been suffering from various nutritional
disorders in Africa and World at large. The major reason to this has been lack of efficient
sufficient service delivery and high cost of living a healthy life. The rich suffer malnutrition not
because they lack money but lack of competent clinics to offer quality services. The poor on
the other hand die of malnutrition due to high cost accessing malnutrition services and
products. Therefore, here comes a business gap. Initiation of a consultation and nutrition clinic
that will cater for these two groups will grow in a spur of time. The clinic needs to be equipped
with nutrition assessment equipments and dietary supplements. The clinic can become more
efficient if there are wards established to inpatient close monitoring and evaluation. This will in
turn create a field where I can promote good healthy lifestyles within the society and in return,
expansion of the business economically. This business idea calls for a well and effective
financial and market analysis.

2.4 PURPOSE OF THE BUSINESS


My business will ensure correct dissemination of knowledge across the Globe. The business
will target all groups of both with and those without malnutrition; this will enhance in
management and prevention of malnutrition. The business will aim at 95 % reduction of
malnutrition through ensuring 90% correct dietary supplementation and appropriate diet
therapy. Clients will be able to access services and products at 24 hours service system and at
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an affordable rate. This business also aims at 80% eradication of unemployment in the world
today.

3.0 SALES AND MARKETING

3.1 TRENDS IN THE WORLD MARKET


People can fail to do so many lifestyle activities but can’t fail to eat; that’s the theme in the
market and the sole principle operating in the world market. Nutriprenuers are focusing on diet
provision and supplementations in lack of thorough nutrition assessment. In the world market
today, there are millions of supplements and egorgenic aids which clients are buying and
consuming them inappropriately. This has made clients lack trust in the products in the market
and there demanding for check up before intake of supplements. Customers in the world
market also have become wise and now are looking for consultation and prescriptions before
intake of the supplements and egorgenics. This creates a business gap.

3.2 UNIQUENESS OF MY BUSINESS


1. Most of the nutrition clinic don’t s sell the supplements with them there in the clinic. I
will ensure that each supplement clients have been referred to take is already in the
clinic.
2. My clinic will employ the latest advancement of technology on machinery and carrying
out of assessment.
3. High levels of expertise and professionalism by employing very competent dietitians
from various parts of the world.
4. Establishment of websites to enhance online clinic for ease access of information to
clients and faster communication within branches of the clinic.

3.3 PROFILING CUSTOMERS


1. Pregnant and lactating mothers.
2. Aged and the elderly people.
3. Infants and children below 5 years.
4. Adolescents.

3.4 PREFERENCE ABOUT MY CUSTOMERS


A. Availability of highly trained nutrition specialist for high quality services.
B. Availability and accessibility of services and products at 24hrs system in the
clinic.
C. Availability of inpatient services and facilities.

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3.5 CUSTOMER ATTENDANCE EXPECTATION

GROUP NO. OF PRICE THEY MIGHT


CUSTOMERS DELIVER(KSH)/day
PREGNANT AND LACTATING 40 20,000
WOMEN
THE ELDERLY 50 12,000

CHILDREN BELOW 5YRS 70 15,000


ADOLESCENTS 25 10,000

TOTAL/DAY 185 57,000

Table I

3.6 COMPETITORS MARGIN

COMPETITORS NAME STRENGTHS WEAKNESSES


KAREN WELLNESS - high level of - Very few people can
AND NUTRITION professionalism afford the services
CLINIC - partnership with big there.
hospitals - Not well established
countrywide and
worldwide.
MURUGU NUTRITION - Availability of small - Inadequate skilled
AND CONSULTATION branches all over the nutrition specialist.
CLINIC country. - Insufficient
- Large number of advanced technology
frequent customers. and machinery for
work.
Table II

3.7 MANAGING COMPETITION


1) Ensuring that services and products are accessed by the clients when needed.
2) Provide services and products at an affordable price to my clients.
3) Incorporate high skilled personnel within my business.
4) Establish small branches in each and every town countrywide.

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3.8 MANAGING RISKS

3.8.1AVAILABLE RISKS
I. Low number of profiling customers.
II. Employees might resign to leave to where they is a big pay.

3.8.2 MANAGEMENT OF AVAILABLE RISKS.


a) In (I) above, I will ensure that my business is advertised to the level that
each individual is aware of the clinic. I will use competitors’ weakness to be
my strength.
b) In (ii) above, all employees should be paid in accordance to the governing
act of the constitution on salary and wages. I will use the competitors’
salaries and wages to strategize mine so as it appears preferable and
satisfactory.

4.0 PRICING
Pricing is in consideration of various costs which include.
I. Intended profit
II. Material cost.
III. Labor costs.
IV. Overhead cost.
V. Flexibility of the clients.
VI. Trends in the market.

4.1 PRICING MENUS


PRODUCT/SERVICE PRICE
Registration fee 100
Consultation fee 250
Inpatient care/bed/day 2000
Supplements(varied) 100-50000
Table III

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4.2 PRICE COMPARISON WITH MY COMPETITORS

PRODUCT/SERVICE MY PRICE COMPETITORS’ PRICE


Registration fee 100 200
Consultation fee 250 300
Inpatient care/bed/day 2000 1200
Supplements(varied) 100-100000 1500-100000
Table IV

4.3 REASONS FOR THE DIFFERENCE


I. To target both the rich and the poor in the instance of registration [and consultation fee.
II. Provide best in patient care for the case high inpatient care fee.
III. To ensure that all clients can afford and have ease of access to various brands of
supplements.

5.0 PROMOTION AND ADVERTISEMENT OF BUSINESS


1. Development of social media pages to collect views on the feedback of the clients and
make adjustments on the key areas.
2. Develop an online consultation website; where clients can get educational materials at a
fair cost.
3. Form partnership with other health care team providers, government and Non
Governmental Organizations.
4. Establish a radio and a television channel for free health talks and marketing of the
business.

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6.0 LEADERSHIP, OPERATION AND SUPPLY OF THE BUSINESS

6.1 LEADERSHIP

6.1.1 GENERAL MANAGER


The general manager will be in charge of the whole business organization operations. He/she
should be holder of bachelor degree in FOODS, NUTRITION AND DIETETICS and diploma
in business management from a recognized institution.

6.1.1.1 Duties and responsibilities


 To recommend disciplinary actions
 In charge of the daily operation of the business
 To carry out recruitment, selection and training of employees
 The overall coordinator of the business.

6.1.1.2Qualifications
 Bachelor degree in FOOD NUTRITION AND DIETETICS.
 Have knowledge in entrepreneurship
 Have a working experience of at least two years

6.1.2 SUPERVISING OFFICER

6.1.2.1 Duties and responsibilities


 Report to general manager
 Ensure flow of activities each day.
 Sensitize on efficiency on the employees.
 Provision of required help by the employees.

6.1.2.2 Qualifications
 Should have a higher diploma in data administration or other related field

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 Should have management skills


 At least 11/2 working experience.

6.1.3 CHIEF ACCOUNTANT

6.1.3.1 Duties and responsibilities


 Keeping and maintaining the books of accounts
 Managing of cash transactions
 Money banking
 Oversee account clerk
 Preparing financial budgets
 Secure important documents like cheque books

6.1.3.2 Qualifications
 Should be a graduate with a diploma in accounts
 Must be computer literate

6.1.4 INFORMATION COMMUNICATION TECHNOLOGY ASSISTANTS

6.1.4.1 Duties and responsibilities


 Designing of brochures fliers, posters and typesetting
 Conduct business promotion and marketing.
 Assist in computer maintenance and networking in the business.

6.1.4.2 Qualifications
 Diploma in information communication technology
 Have knowledge in computer packages and printing.
 Good working relationship and socialization power.

6.1.5 DIETITIAN/NUTRITIONIST

6.1.5.1 Duties and responsibilities


 Conduct nutrition therapy.
 Develop meal plan for the patients.
 Carryout nutrition assessment on patients.
 Conduct counseling sessions in the clinic

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6.1.5.2 Qualifications
 Completed PHD studies.
 Undergone 12 months internship with a recognized body.
 Should be 35 yrs and above.
 Should be computer literate.
 Experience in a hospital set up for two years.

6.1.6 RECEPTIONIST

6.1.6.1 Duties and responsibilities


 Keeping records of clients in and out of the clinic.
 Direct customers and give them instructions.
 Report to general manager

6.1.6.2 Qualifications
 Should have a diploma in business administration.
 Should be fluent in English and Kiswahili.
 Should be 35 years and below.
 At least 1 year experience.

6.1.7 SECURITY OFFICER

6.1.7.1 Duties and responsibilities


 Maintain security in business environment
 Keep records of incoming and outgoing vehicles and individuals
 Carry out luggage inspection leaving or getting into business enterprise

6.1.7.2 Qualifications
 KCSE mean grade of D
 Good knowledge of English and Kiswahili
 Be below 35 years of age

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6.2 RECRUITMENTN AND TRAINING

6.2.1 RECRUITMMENT
This is the mandate of the general manager; recruitment will depend on the efficiency delivery
to the customers. The employees to be employed should meet the required criteria with no
favor, despotism or any other means expect professionalism. They should be ready to work,
self motivated and goal oriented. After application, the shortlisted candidates will be
interviewed.

6.2.2 TRAINING

The newly employed employees will undergo through an orientation inform of training. This
will familiarize them with the norms of the business set up. This will be done before they
officially report to work. The general manager will have to conduct session of learning after
every six months to have updates on the modern world advancements.

7.0 RUNNING OF THE BUSINESS

7.1 STAFF

ROLE TOTAL COST(KSH)/MONTH


MANAGING 100,000.00
FOOD PREPARARION 20,000.00
SUPERVISION 70,000.00
MARKETING 20,000.00
CONSULTATION 55,000.00
RECEPTION 15,000.00
SECURITY 20,000.00
HYGIENE AND SANITATION 20,000.00
TOTAL/MONTH ON 320,000.00
STAFF OPERATION AT
THE START
Table V

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7.2 PREMISES REQUIRED

PERIOD RESOURCE TOTAL COST(Ksh)


AT THE START - NUTRITION - 1,500,000
LABORATORY(equipped)
- OPERATION OFFICES(including - 5,000,000
land)
IN FUTURE - INPATIENT WARDS - 20,000,000
- CLINIC BRANCHES - 100,000,000
Table VI

7.3 SUPPLIERS AT THE START


SUPPLIERS ITEM FROM THEM NO. OF DAYS
WORD HEALTH SUPPLEMENTS 1 YEAR
ORGANIZATION
MAXIMUM HUMAN SUPPLEMENTS 1 YEAR
PERFOMANCE L.T.D
MEGA WHOLESALERS FOOD COMPONENTS 3 YEARS
MWAL-MART FOOD COMPONENTS 2 YEARS
SUPERMARKET
VINE FRESH FRUITS AND 4 YEARS
VEGETABLES
AMERICAN LAB L.T.D EQUIPMENTS 1 YEAR
CHINESSE EQUIPMENTS 2 YEARS
NEUTRACEUTICALS
Table VII

7.4 EQUIPMENT NEEDED


EQUIPEMENT RESOURCE WHEN NEEDED TOTAL COST
3-D MY PLATE AT START 39,000
ADE MECHANICAL AT START 30,000
SLIDING
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ADE PROFFESSIONAL AT START 58,500


MECHANICAL SCALE
ATHEROSCLEROSIS AT START 11,250
TIMELINE DISPLAY
BOCA X1 BODY IN FUTURE 742,500
COMPOSITION ANALYZER

BREEZING PORTABLE IN FUTURE 114,000


INDIRECT CALORIMETER
CITIZEN UPPER ARM AT START 12,000
DIGITAL BLOOD
PRESSURE ANALYZER
DIET SCALE AT START 8,850
LUX-LIPID GLUCOSE AND IN FFUTURE 52,800
HAEMOGLOBIN GAUGE
MY PYRAMID LIFE-CYCLE AT START 15,000
FOLDING
SMART BRACELET WITH AT THE START 14,250
HEART RATE MINITOR
Table VIII

7.5 MANAGING OPERATIONAL RISKS

CATEGORY RISK SOLUTION


STAFF - Inefficiency in work - Ensure yearly transfer
and development of all employees to
monotonous in work. different branches
SUPPLIERS - Possibilities of been - Collection of
supplied with fake and commodities and
low quality products services from certified
suppliers.
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- Constant change of
source suppliers.
Table IX

8.0 FINANCIAL PLAN

8.1 START UP COSTS

ITEM/RESOURCE COST(Ksh)
PREMISES 6,000,000
MACHINERY 189,300
HUMAN RESOURCE 320,000
PROMOTION AND ADVERTISEMENTS 50,000
LEGAL REQUIREMENTS 50,000
Table X

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8.2 PERSONAL SURVIVAL BUDGET


ITEM COST(Ksh)/month
Traveling/housing 20,000
Food/clothing 12,000
contingencies 2,000
Table XI

8.3 PROFIT AND LOSS FORECAST MONTHLY.


To get the profit or loss, we use the following procedure;

1. Calculate the total expected outcome(Ksh)


2. Calculate the total expenditure (Ksh). Includes direct cost, indirect cost, personal
survival budget.
3. Subtract the total start up cost from the total expected outcome.

Total expected outcome (customer expectation) = 1,710,000

Total expenditure per month;

a. Human resource = 320,000.00


b. Electricity, water supply = 50,000.00
c. Food ( patients and staff)=100,000.00
d. Transportation =45,000.00
e. Supplementation=150,000.00
f. Maintenance and equipments =100,000.00
g. Legal requirements = 45, 000.00
h. Contingencies = 100000

Total expenditure = 910,000

Profit = total income – total expenditure

Profit = 1,710,000-1,110,000

Profit = 800,000

9.0 SOURCE FINANCING


The total money required to start is much more compared to my total savings. Due to this I
have researched for bank which can lend me that money at a lower interest of around 10%.
After a series of enough research I will use the EQUITY BANK, this is the bank that I get my
salary through.

Equity bank will give me humble time to repay the loan. According my customer level in the
bank, I can borrow up to 50,000,000.
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9.1 TOTAL REQUIREMENT FOR THE START OF THE BUSINESS


ITEM/RESOURCE COST(Ksh)
PREMISES 6,000,000
MACHINERY 189,300
HUMAN RESOURCE 320,000
PROMOTION AND ADVERTISEMENTS 50,000
LEGAL REQUIREMENTS 50,000
Total 6609000

My total savings = 3500000.00

Total borrowing amount (TBA) = 6609000-3500000

TBA = 3109000.00

To be paid in two years, interest rate 10%.

Total amount to paid per month= 3109000/48(installments) + 10% *3109000

Total amount paid per month = 375671.00

Total profit per month = 800000-375671.00

= 424329.00(1st 2 years)

9.2 Managing financial risks

9.2.1 Risk identified


1. Accumulation of loan interest and failure to repayment.
2. Insufficiency of funds during start up and during progression.
3. Dishonesty in the management.
4. Theft and robbery.

9.2.2 Management of the risks identified.


1. (1) above, define a strategy of profit accumulation and investment, to clear the loan
easily
2. (2) Above, ensure that before I begin construction and purchases I have all funds put in
place. To avoid breaks in the progress of the business.

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3. (3) Above, Installation of high sequential money signatories and profits accountability
to avoid entrusting one person. Do away with dishonest employees
4. (4) Above, install high security systems within the premises; including CCTVs and
highly trained personnel in matters security.

9.3 References
1. Harvard review business magazine.
2. Edison Institute of Nutrition; creating a business plan for nutrition clinic.
3. Institute of Medicine; Food and Nutrition Board. 2015. Op.cit.
4. HANDBOOK OF BUSINESS FINANCE and CAPITAL SOURCES by Dileep Rao.
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Anthony N.K.

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