BUSINESS PLAN

ANISE ENTERPRISE
P.O BOX 38-400 MACHAKOS
EMAIL: anisefarm@gmail.com
WEBSITE: https://www.anisefarm.com

PRESENTED BY: NAME REG NO

Menice Akinyi J16-8156-2021
Claire Wanjiru J16-8127-2021
Sharon Tracy J16- 8128-2021
Mellisa Jepleting J16-9384-2021

UNIT NAME: INNOVATION AND ENTREPRENEURSHIP

UNIT CODE: SPH 390
PRESENTED TO: MACHAKOS UNIVERSITY
SUPERVISOR: MRS. WINIFRED NDUTA
MARCH 27 2024
DECLARATION

I hereby declare that the business plan is our original work and that it has not been featured
elsewhere.

ACKNOWLEDGEMENT

First and foremost, I would like to thank God for His Grace. A special debt of gratitude to all
our group members for their hard work and great team work. I would also like to express
my special thanks to our mentor Winifred Nduta for her invaluable support through the
course provision. Your guidance was really helpful for us during the project’s duration. May
God bless you all.

DEDICATION

Special dedication goes to our school and wonderful classmates for the firm support they
have given us. Also, dedication to our lovely families and all members of staff in our school
Machakos University.
TABLE OF CONTENT
CHAPTER ONE

1.0Business description

1.1 Background of the owner …………………………………………………….4

1.2 Business name………………………………………………………………………. 4

1.3 Business location and address………………………………………………. 4

1.4 Forms of ownership ……………………………………………………………….5

1.5 Types of business…………………………………………………………………… 5

1.6 Products and services……………………………………………………………. 5

1.7 Justification for opportunities ………… ……… ………………… …………...5

1.8 Industry………… ………………………… ………………… ………………… ………. 6
1.9 Goals of business and objectives

1.10 Entry and Growth strategy ………………………………………………….6

1.CHAPTER TWO

2.0Marketing plan

1 Customer……………………………………………………………………………………. 7

2.2 Market share/size………………………………………………………………………. 7

2.3 Competition………………………………………………………………………………… 7

2.4 Methods of promotion and advertisement…………………………………….

2.5 Pricing strategy……………………………………………………………………………. 8

2.6 Sales tactics ………………………………………………………………………………….8

2.7 Distribution strategy……………………………………………………………………. 9

2.CHAPTER THREE

3.0Organization and management plan

3.1 Management team……………………………… ……………………………………… 9

3.2 Other Personnel … …………………………………………………… ………………….9

3.3 Organization structure … ……………… ………………… ………………… ……….10

3.4 Recruitment, training and promotion

3.6 License, permit and by-laws ………………………………………………………….12

3.7 Support services ………………………………………………………………….13

CHAPTER FOUR

4.0 Production/operation plan…………………………………………………. 14

4.1 Production facility and capacity ………………………………………….15

4.2 Production strategy …………………………………………………………….16

4.3 Production process …………………………………………………………….17

4.4 Regulations affecting the operation

4.CHAPTER FIVE

5.0 Financial plan……………………………………………………………………… 18

5.1 pre-operational costs ………………………………………………………….19

5.2 Working capital…………………………………………………………………… 19

5.3 Projected income statement………………………………………………. 20

5.4 Projected Balance Sheet as …………………………………………………20

CHAPTER ONE

EXECUTIVE SUMMARY

Business Description
The Anise enterprises is an online enterprise which enables poultry and vegetable farmers
in rural areas in Kenya to market and sell their products to customers in the hotel and retail
industries and individual consumers in major cities in Kenya.

The business is looking to expand and tap into the market in the neighboring Eastern-Africa
countries. We have been able to secure a standard and well – positioned office facility in a
busy business city in Kenya. With this physical office potential customers such as a farmer
looking for a market to sell his goods or a business owner looking to source quality
agricultural goods, can both be objectively guided.

This business builds a bridge that connect farmers to their market conveniently.

We have decided to focus on small scale farmers in the rural areas as they have faced
neglect and lack a well-established format for marketing and sell of their goods. This makes
their highly perishable goods to rot and go to waste making them to experience losses. This
happens despite the huge demand for agricultural goods both in the local and foreign
markets.

1.1 Background of the owner

The Anise enterprises is an online store founded by nine partners. We intend to

give farmers an opportunity to market and sell their products through our platform.

The business is an ongoing successful business that has attracted hundreds of farmers,
thereby improved their livelihoods and led to the gradual growth of the agricultural sector
in the country one farm at a time.

1.2 Business name

‘Anise’ the name of the business comes from the name of the Anise plant native to north
Africa which is known for its medicinal property. Our aim is to revive farms by becoming a
major agricultural global hub for farmers.

1.3 LOCATION OF THE BUSINESS

We have our physical offices adjacent to the Round-About Naivas supermarket located in
the central business district of Machakos County.

We have a robust online presence with a mobile and desktop app as this is the platform for
the operation of our business. Our official website is https://www.Anisefarmers.com

The desktop app known as Anisefarm is available in Microsoft store.

Our mobile App Anisefarm is available on Google play store.

1.4 Forms of ownership

The Anise enterprises is a business founded by nine partners. With partnership, the
business is easy to establish and start-up costs are low for we share the costs equally.

Advantages of partnership: we have an extra set of hands, we benefit from additional

knowledge from each other, one has less financial burden since we share them equally, and
there is less paperwork and even fewer tax forms.

Some disadvantages: is that one can’t make decisions on their own, we’ll have
disagreement at times, and the profit is splinted and that one is taxed individually.

Type of business

The business is our start up business. We want to make some advancement to the existing
Market availability for farmers. Being an online store, one has to visit our website to see the
available goods and make an order to contact the farmer directly. After we receive an order
the approached farmer whose goods are needed is immediately notified and with the help
of our professionals the customer is allowed to check the quality of goods being provided by
the farmer before payment is made. When the customer is satisfied, we transport the goods
from the farmer to the location where they are needed.

Our store will ensure that the products received at the warehouse are of good quality
before being dispatched to the customers to avoid other conveniences.

1.7 Justification of the opportunity

We opted for this kind of business because there is a growing market for agricultural goods
both locally and internationally as people are opting for healthier foods.

Technology advancement also is one of the reasons for choosing this kind of business. As
hordes of potential customers are scouring the internet every minute. This strategy markets
the goods to millions of potential customers at a convenient, time efficient and low-cost
way.

Since our store provides goods directly from the farmers, the goods will be affordable.

1.8 Industry
The Anise enterprises falls under the industry of Ecommerce. It is one of the fastest growing
industries in the country right now. Most people look for ways of saving their time and
money and also look for quality products online.

The business will have a mobile application or a website where one can create an account
and start shopping with us. Computers will be necessary to ensure a smooth and successful
running of the business. Some of the business partners will take part in the computer
management of the business hence no external labor may be needed.

1.9 Goals of Business/Objectives

1.9.1 Goals

Our main goal is to become the leading agricultural goods online shop in the country and
later on in the whole of Africa.

1.9.2 Objectives

Anise enterprises intends to make agricultural goods available to consumers from the
comfort of their seat. This will go a long way in maximizing profits for farmers thereby
improving the general agricultural outlook in the country.

1.10 Entry and Growth strategy

We have a website and a mobile application of the store where consumers can connect
with farmers and make their orders. We will market our services through advertisements in
the

social media platforms like Pinterest to make it known as much as possible. We also intend
to increase our farmer base and make prices relevant and affordable to all social classes.
We will make sure that everyone can view the store and at least buy something for
themselves by tagging affordable prices along the products.

As a store we plan to give some offers on certain products after one has purchased certain
amount from a particular farmer. We intend also to put flash sales on Wednesdays to
attract more customers.

Increase in number of orders in the store will indicate success in business. Increase in
number of farmers registering with our store will also indicate a growth in the business. As
the business grows, we intend to broaden our farmer base by extending to fish farmers,
open more branch offices in other towns and build a bigger warehouse with state-of-the-art
refrigeration equipment to ensure the highly perishable goods lasts longer.
CHAPTER TWO
2.0Marketing plan
2.1 Customers

Anise enterprises we’ll mainly sale our products to hotel owners and individual consumers.

We also deliver our items when ordered to different institutions and corporate events.

For individual consumers we target professionals and families seeking healthier eating
habits in home-made meals.

The area has more than 10,000 students in our university each visiting a hotel at least once
a day and 5,000 local schools.

Hotels represent an excellent customer segment for several reasons:

The hotels attract students and locals thereby we generate excellent word-of-mouth.
Students represent a large base of potential part-time employees.

2. Local resident: Approximately 100,000 people live within five miles of our location. The
most affluent of these live even closer, within three miles. It is a short 5 minutes’ drive to
Anyse enterprises for most of our potential local customers.

3. Local business people: Many local businesses within our area they are also our target
customers. We deliver our products to their shops and stores.

2.2 Market share/size

The Anise enterprises is expected to grow from 2.9 million in 2027 to reach 3.9 million in
2024 so this means that Anise Store sales can increase as people are looking for healthier
ways to live. The growth is expected to increase over the next 5 years as agricultural goods
continues to dominate the consumer purchase list.

2.3 Competition

The Anise enterprises has entered the market as a market challenger. We are competing
with other potential companies which were already operating the business. These potential
companies are Kilimall and Jumia. A part from these two companies, we are having few
competitors and numerous distant competitors. Basically, the following ventures are our
competitors. The Anise enterprises has the following:

1. Strength (internal)
The strength of our Anise enterprises lies in serving quality products at an affordable price
and good delivery at a fast and efficient way. We also have a wide range of goods that can
meet the needs of a wide range of customers.

2. Weaknesses

The fact we are setting up an agricultural business in a city with established physical
markets for purchase of the same goods might likely pose a challenge for us in breaking the
status quo of the markets in Nairobi. In essence our chosen location might be our weakness.

2.4 Methods of promotion and advertisement

Managing an online store can be hard work and usually you’ve to spend most time on daily
tasks. Little time is left on developing new ideas and marketing even when we all know how
important this is.

Promotional strategies for our agricultural online store:

Buy 2 get an offer: We will offer our customers buy any 2 items of our agricultural products
and 1 item free regarding with the product and price. As a result, our potential customers
come to our shop to get the offer.

Loyalty card: We offer loyalty card to our customers. By use this loyalty card customers get
some extra facility.

Facebook page: We will create a Facebook page (www.anisefarm/facebook.com) to show

our promotional activities to our customers. By this page customers will know if any new
item included, which discount running now, which price items will increase etc.

After sale customer service: After selling our items, we will give our customers a feedback
platform to notify us of any dissatisfaction.

2.5 Pricing strategy

The Anise enterprises is planning to start with penetration pricing where by items will be
sold at a lower price in order to enter the market by attracting customers and later on use
the cost plus-pricing and the competition-based pricing strategies.

The materials, labor and overhead required to maintain one unit of item will be added to a
fixed markup percentage but will be related to the prices that the competitors are giving
their items at.

The markup percentage is to cater for taxes, man power, funds to continue running the
store and profits of which the prices will be within the range of the customer’s ability to
purchase the items.
The store is also planning to give credits to the loyal and frequent customers. This will only
apply to goods worth five thousand shillings to fifty thousand shillings.

Items given on credit are expected to be paid back within a period of two months. For any
items bought worth five thousand and fifty thousand, a discount of 5% will be given and for
items above fifty thousand a discount of 6.5% will be given.

Free transport will be offered for any items above five thousand.

2.6 Sales tactics

The Anise enterprises is planning to sell the agricultural items directly. Orders will be placed
online and then delivered to the buyer via refrigerated truck courier services or store’s
transport means. The store will also have abrupt flash sales which will be at very low prices
valid for about five days

2.7 Distribution strategy

Items which do not meet the minimum requirements to be offered free transport will be
sent to the buyer via courier services of which the buyer will have to pay for transport cost.
For the items which meet the minimum requirements for free transport will be delivered at
door step.

The means of transport to be used will be road which will cost roughly thirty thousand
shillings per month. Like any other means of transport, road transport has its disadvantages.
There may be car’s engine failure, punctures and road accidents caused by reckless drivers.
To prevent these problems, the cars will go for inspection every one month and only trained
drivers will be employed.

During transportation, the goods may collide leading to losses.

CHAPTER 3
2.8 ORGANISATIONAL PLAN
This is a method for planning the future goals of an organization to be sure everyone on the
team

understands what management expects. Its features are lesser managerial level, proper
span of control and simple as well as flexible.

2.8.1 ORGANISATION STRUCTURE

To extend the management business, we will have to increase the number of products and
services provided propelling the company to greater heights. Social media enhances
website traffic, improve its search engine rating as well as increasing revenue by developing
customer network and featuring farmers items. The partners duties and responsibilities are
scheduling and overseeing all maintenance-related work by managing technicians and
supervisors, managing budgets, ensuring all the maintenance operations are done in
accordance with company policy, coordinating the completion of complex repairs and
looking for new assets to improve productivity and cut costs. The salary we intend to draw
is sh.10000 to ensure that the business goes well.

2.8.2 ENTRY MANAGEMENT PERSONNEL

The members in the proposed management team are as follows: Claire Wanjiru - president,
Mellisa Jepleting -vice president, Omedo Menice - chairman and Sharon Tracy - Secretary.
The duties of the president of this business are: long-range strategic planning, create and
maintain relationships with the customers and company, display leadership posture and
decision-making skills to lead the company with confidence and being knowledgeable and
pay attention to company actions.

The duties of the vice president of this business are: contributing to sales innovation,
strategic business development and the profitability of the company, evaluating the success
of the company in achieving its goals and formulating plans to correct any issues,
maintaining awareness of competitors, expansion opportunities, customers and markets
and assisting in maximizing the company's operating performance and achieving its financial
goals.

The duties of the chairman of the management team are: fostering the effectiveness of the
company, ensuring effective communication and leading the company and focusing it on
strategic matters.

The roles of the secretary in the managing team are: filing and updating contact information
of employees, customers, supplies and external partners, undertaking occasional
receptionist duties and checking frequently the levels of office supplies and place
appropriate orders.

The proposed salaries for the management team are sh.30, 500. The incentives to provide
the management team members are: profit sharing - employees receive contributions to
the recruitment account and sometimes get direct payment. Tuition reimbursement -
employees learn new things and get new certificate or gradual bonuses and raises.

2.8.3 OTHER PERSONNEL

The number of employees required are as follows: Nduki Ann- technician, John Jumba-
software

engineer and Leon Mbuli- hardware engineer. The plan to evaluate the performance of the
employees are developing of one's skills. Supervisors can develop their own ability to
manage employee’s performance by participating in a variety of performance management
training opportunities. Performance programs should outline specific behaviors related to
each competency and job

SALES/DELIVERY PERSONNEL

 coordinate all the internal sources of information to retain the organizations’

 best customers and attract new ones
 Models’ demographic information and analyses the volumes of transitional data
 generated by customer
 Comes up with development opportunities; follows up on development leads
 and contacts; participates in the structuring and financing of projects; assures
 the completion of development projects.


Accountant

 Has the main role of preparing financial reports, budgets, and financial
 statements for the organization
 Brings and gives managements with financial analyses, development budgets,
 and accounting reports; analyses financial feasibility for the most complex
 proposed projects; conducts market research to forecast trends and business

2.8.4 SUPPORTING ADVISORS AND SERVICES

The banking services one would need is commercial banking because it concentrates on
supporting businesses and businesses turn into commercial banking services if they need to
open a checking, borrow amount or saving account. Book-keeping is recording financial
transactions while accounting is for interpreting classifying, reporting and summarizing
those transactions. The legal service for the supporting this business is LegalZoom which
one pay a flat fee to create the document plus the relevant fee. The business and
management services are:

System Maintenance - ensure all systems and organization infrastructure are well
monitored and optimally operating.

Hardware support -ensure that there is new hardware server and infrastructure
configuration services, tech support to the team via phone and email to the premises,
keeping business afloat by supporting the infrastructure, security and anti-virus protection
by securing infrastructure environment through up-to-date anti-virus and Anti-Malware
software and system maintenance ensuring all systems and organizations infrastructures
are well monitored and optimally operating.

The list of other supporting services is virus removal, hardware installation and
replacement, operating system re-installation and wireless network.
 The postal services are networking shared devices, commercial installation and additional
supplies like USB cables while other services include software and hardware, installation
services,
system upgrades and installation of new purchase.

4 Recruitment, training and promotion

3.4.1 Recruitment

Advertisement

Any job vacant will be advertised on social media. I e through official business group and
any other markets groups on WhatsApp, posters and word of mouth.

3.4.2 Training

All new employees will have a mandatory training of at least one hour every working day for
one week and through seminars to be able to feminize with new working activities at the
business 3.4.3 Promotion

We will use several criteria to promote our workers which shall be done for every two years

REMUNERATION AND INCENTIVES

Our business will be able to employ a total number of six workers which will be headed by
manager, secretary, accounts clerk, security officer and delivery agents

3.5.1 Remuneration

Manager 1 25000 8000 33000

Secretary 1 15000 5000 20000
Accounts clerk 1 15000 5000 20000

Incentives will be given to boost the morale of the employees

The incentives include;

I.
Allowance for travelling
II.
Insurance
III.
Meals (breakfast and lunch)
IV.
Holidays and overtime allowance

3.6 License, permit and by-laws

3.6.1 License

Business license will be registered by Ministry of Trade sand Foreign Affairs in Machakos
County which will cost sh.70, 000 per year. Having a license will enable the government to
follow up on our tax compliance and used to verify that we are running a legitimate
enterprise and not just another in town.

3.6.2 Permit

Business being given authority to undertake its activities on the management of the
business to enhance it achieve its goals. Ministry of health will be issuing it at a fee of
sh.60000 per year

3.6.3 By-laws

The business organization shall follow all the by-laws affecting the business which includes;

1 . Income tax cap 266

2 . Labor Act cap 226

3 . Employees Act cap 266

4 . Public health Act cap 242

3.7 Support services

3.7.1Banking services

We shall open up an account for our income to be safe and easy for our customers to get
paid for their goods before they are delivered to them.

3.7.2Insurance services

We will insure all of our workers with a medical scheme which will cover mostly for
contracting diseases to minimize the contraction for the outbreak.

3.7.3 Consulting services

We will consult our more competitive commentators on how they handle challenges which
affect their business. Customers will be engaged on how they want to improve our services
and any

3.7.4 Legal services

Business will abide with all regulations and rules that governing the trade sector to deliver
its services bond by laws

CHAPTER FOUR
4.0. Production /operation plan

We will be getting most of our products from farmers. We will store the goods for a
maximum of 24 hours, if necessary, before delivering them.

4.1. Production facility and capacity

We will rent a store where we will store the components before supplying. A maximum of
3500 for rent and we will have one worker to stay at the store. The stores will have modern
stores constructed to hold the components. In future we plan to have an office and a ware
house in each county.
4.2. Production strategy.

The enterprise has considered dining institutions and individual consumers as the target
market. The enterprise will develop a website and an app that can be accessed through a
smartphone or a laptop. The enterprise will advertise its services through social platforms
like Instagram and twitter. The total production cost for one month is likely to be around
40000 shillings. This amount is likely to vary depending on factors like market availability
and other factors. Our purchasing and stock control will depend on our warehouse capacity
and security status.

4.3. Production process.

The customer will order the items via a website. The enterprise will contact different
farmers so as to get a good quality product at an affordable price. The customer will check
the quality of the goods before he/she pays. The enterprise will buy ten laptops through
which orders will be received. Some external factors like competition from other enterprises
might affect our production process. We will counter this by giving our customers discounts
when they order for goods in large scale.

4.4. Regulations affecting the operation

4.4.1. Health regulations

The delivery personnel are expected to be free from any communicable diseases for safety
of the customers.

4.4.2. Safety

The delivery personnel will be provided safety boots and a jacket in case they have to make
the deliveries to rural areas. We will also have strict regulations on matters use of drugs
within our premises. All workers will be expected to be on their sober mind during working
hours to avoid any unnecessary accidents and damage of enterprise property.

4.4.3 Environmental regulation

The enterprise will use renewable paper bags instead of polyethene bags. We will also set
three consecutive days in a year to educate the public on environmental conservation and
also educate them on how to handle e-waste without damaging the environment.

CHAPTER FIVE
5.0. Financial Plan.

In our Anise enterprises, we have come up with a way of contributing capital in different
ways. This activity has cost as a bit little as it is indicated below. Ways of contribution
includes; members’ contributions, family contribution, friends’ contribution and loan
borrowing.

5.1. Pre-operational costs.

During our research, we came across different costs including; transport cost, rent payment,
designing out logo and others as mentioned below.

ITEM AMOUNT

Traveling 5000

Designing the logo 50000

Licenses 2000
Advertisement 1500

Recruitment 2000

Professional fees 4000

Electricity 2000

Utility bills 5000

Rent deposit 4000

Total 75500

5.2. Working capital.

Current assets Amount Kshs

Stock at hand 98000

Cash at bank 95000

Ddebtors 80000

Total 260000

Current liabilities Amount Ksh

Bills 2000

Salaries 8000

Bank loan 5000

Ccreditors 5000

Total 20000

Working capital is calculated by the formula current Assets less current liabilities.

In our Anise enterprises working capital is as shown.

WC= CA-CL

WC = 273000 - 20000 = 253000.

This is our working capital which will enable us to run our enterprise smoothly. This is
because our working capital is greater than starting capital as this will enable us to enjoy a
profit increase.

5.3 Projected income statement

Items Amount Ksh

Cash sales 19000

Less cost of purchases 19000

Gross profit 38000

Expenses. Amount Ksh

Salaries 89000

Electricity 5900

Transport 4000

Rent 10000

Insurance 1200

Total expenses 4010

Net profit before tax is given by; Gross profit - working capital. Our Net profit before tax is
59500. (117000 - 57500) Less provision for ta x= Total Expenses = 40100

Net profit after tax = Net profit before tax – Expenses = 59500 - 40100 = 19400

5.4 Projected Balance Sheet as at 31st December 2023

This is our financial statement as Anise enterprises that shows the financial position of this
business for the first one year of operation.

Anise enterprise,

Balance sheet, as at 22\2\2024

Fixed Assets.

Item Amount kshs

Building 13000

Owner equity 13000

Land 150000

Capital liabilities

KIE Bank loan 300000

Profit/loss A/C 80000

Furniture & fittings 50000

Less depreciation 20000

Total 313000

Current Assets Ksh Current Liabilities

Stock 90000 Creditors 50000

Cash at bank 84000 Bills 60000

Cash at hand 45000 Salaries 65000

Debtors 50000

Total 269000 Total 175000

5.5 Break-even point

Variable costs Fixed costs

Item Amount Item Amount

Telephone bills 5000 Rent 29000

Salary 54000 Power 10000

Purchase 30000 Loan payment 40000

Transport 15000 Insurance 15000

License 2000

Total variable costs 60000 Total fixed cost 140000

5.6 Profitability ratios

Gross profit %

We as Anise enterprises we have a Gross profit percentage of

As calculated:

Gross profit percentage = Gross profit / working capital *100%.

38000 / 253000*100 = 15.01976285%

Gross Profit Margin = Gross Profit / Revenue x 100

38000 / 40100 * 100 = 9.476309%

Net profit% Net profit percentage = Net profit / working capital * 100%

19400 /253000 * 100% = 7.66798%.

Net profit margin = Net profit / Revenue * 100.

= 19400 / 40100 * 100= 48.3759 %

5.7 Proposed Capitalization

Source Amount Ksh

Cooperative /Sacco loan 50000

Personal savings 40000

Equity finance 65000

Total. 155000

5.8 Desired Financing

ITEM. AMOUNT

Pre- operational costs 75500

Working capital 57500

Total 133000