BUSINESS NAME: MORTAR SOFTWARE

NAME OF PRESENTER: ALICE SOINE

INDEX NUMBER: 5820010046

INSTITUITION NAME: MAASAI MARA TECHNICAL AND

VOCATIONAL COLLEGE

INSTITUTION CODE: 582001

PAPER CODE: 1920/107

COURSE CODE: 1920

PRESENTED TO: KENYA NATIONAL EXAMINATION COUNCIL IN

CERTIFICATE OF INFORMATION COMMUNICATION
TECHNOLOGY

SUPERVISOR: MARY KAIRO

EXAM SERIES: NOVEMBER 2022

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DECLARATION
I hereby declare that this business plan is mine. It is my original work and has not been
presented anywhere else for examination body and that nobody has the right to reproduce
or give it out unless with permission.

CANDIDATE NAME: ……………………………………………………….

SIGNATURE: ………………………………………………………………..
DATE: ………………………………………………………………………..

SUPERVISOR NAME: ………………………………………………………

SIGNATURE: ………………………………………………………………..
DATE: ………………………………………………………………………..

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DEDICATION
I declare that this project to my family, friends and the siblings for their tireless
unwavering support, commitment, encouragement and understanding. They showed me
during the completion periods of this business plan.

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ACKNOWLEDGEMENT
Specials thanks go to the almighty father who has given me the knowledge and good
health when undertaking my course. I wish to acknowledge my supervisor, Madam Mary
Kairo for her crucial guidance and advice through the project.

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EXECUTIVE SUMMARY
1.0 BUSINESS DESCRIPTION
The business will operate under the Name MORTAR SOFTWARE. The proposed
business name will be MORTAR SOFTWARE. It will be located along Suswa road
opposite Equity bank near Maragateway Hotel. the principal customers targeted will be
from mara point market, Mai Mahiu and Ngong. The business will deal with providing
computer services like browsing, wedding cards, printing and photocopy services and
computer classes.
The owner having some experience from the previous place of work and also some
entrepreneurial skill she will be able to capture market by using various entry strategies in
achieving the set goals.
The proposed business will employ good mechanism so maintain the customer and invite
more in that it is in a very strategic point.
2.0 MARKETING PLAN
The proposed business is situated in a good strategic position. The business will serve
various customers including commercial domestic and institutional customers.
The business intends to acquire 50 % of the market share. The business will use different
strategies competition with the existing market players.
The business will also use pricing strategies like cost plus competitive pricing and
promotional pricing, also effective distribution channels, will be used at no charges
proposed business will offer high quality product service to its customers.
3.0 ORGANIZATION AND MANAGEMENT PLAN
The enterprise will comprise of ten (10) personnel, namely manager, Accountant,
supervisor, worker and watchman. The business will advertise the requirement of its
employees through posters to enable it recruit potential candidates.
It will recruit, train and promote its personnel depending on the qualifications, hard work
and experience on relevant fields. The business will motivate its employees through
awarding certificates, trips like visiting arks, allowance and off – duties it will also obtain
a trading license from ministry of trade and from Narok county government. The business
will also acquire a permit from the ministry of education and also from the computer
society of Kenya costing Ksh 5,000-. And shs 4500 respectively. The proposed business
will also seek banking services insurance, postal services, electricity and water
installation and repair and maintenance service.
4.0 OPERATIONAL / PRODUCTION PLAN
The proposed business will purchase its required items at cost of Ksh 300,400/- and a
monthly stock requirement of Kshs 8,800, also a monthly labour requirement of
Kshs 51,000/-.

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The enterprise layout will be well indicated. Repair and maintenance of machines will be
done. The business will use production strategies in – order to survive in the market that
is have a market share and full knowledge information about the market through the use
of research.
Will also have a monthly production cost of Kshs 110,300 lastly will offer high quality
services by ensuring all customers are served and are well satisfied.
5.0 FINANCIAL PLAN
The proposed business will have the following, operations cost which amount to Kshs
377,000, estimated working capital in the years that is year 1 Kshs 1,389,500, year 2 Kshs
4,636,000 and year 3 Kshs 9,970,000.
The business projected cash flow statement, proforma income statement, proforma
balance sheet, breakeven point analysis, profitability ratios, desired financing and propose
capitalization are all indicated in this chapter.

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Contents
DECLARATION........................................................................................................................................ii
DEDICATION..........................................................................................................................................iii
ACKNOWLEDGEMENT...........................................................................................................................iv
EXECUTIVE SUMMARY...........................................................................................................................v
1.0 BUSINESS DESCRIPTION...............................................................................................................v
2.0 MARKETING PLAN........................................................................................................................v
3.0 ORGANIZATION AND MANAGEMENT PLAN.................................................................................v
4.0 OPERATIONAL / PRODUCTION PLAN............................................................................................v
5.0 FINANCIAL PLAN..........................................................................................................................vi
CHAPTER ONE........................................................................................................................................1
1.0 BUSINESS DESCRIPTION...............................................................................................................1
1.1 INTRODUCTION...........................................................................................................................1
1.2 BACKGROUND OF THE OWNER...................................................................................................1
1.3 BUSINESS NAME..........................................................................................................................1
1.4 BUSINESS ADDRESS......................................................................................................................1
1.5 PRODUCTS AND SERVICES...........................................................................................................3
1.5.1 PRODUCTS............................................................................................................................3
1.5.2 SERVICES...............................................................................................................................3
1.6 FORM OF OWNERSHIP.................................................................................................................3
1.7 JUSTIFICATION OF OPPORTUNITY................................................................................................3
1.8 TYPE OF INDUSTRY.......................................................................................................................3
1.9 GOALS AND OBJECTIVES..............................................................................................................3
1.9.1 GOALS...................................................................................................................................3
1.9.2 OBJECTIVES...........................................................................................................................3
1.9.3 ENTRY AND GROWTH STRATEGY..........................................................................................4
1.9.4 FORM OF OWNERSHIP..........................................................................................................4
1.8 TYPES OF INDUSTRY.....................................................................................................................4
1.9 GOALS AND OJECTIVES................................................................................................................4
1.9.1 GOALS...................................................................................................................................4
1.9.2 OBJECTIVES...........................................................................................................................4
CHAPTER TWO.......................................................................................................................................5
2.0 MARKETING PLAN........................................................................................................................5
2.1 INTRODUCTION...........................................................................................................................5
2.2 CUSTOMERS.................................................................................................................................5

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 2.3 COMPETITORS.............................................................................................................................5
2.3.1 MARKET SHARE.....................................................................................................................6
2.4 PRICING STRATEGY......................................................................................................................7
2.5 SALE TACTICS...............................................................................................................................7
2.6 ADVERTISING AND PROMOTION STRATEGY................................................................................7
2.6.1 ADVERTISING........................................................................................................................7
2.7 DISTRIBUTION STRATEGY.............................................................................................................7
CHAPTER THREE....................................................................................................................................9
3.0 ORGANISATIONAL AND MANAGEMENT PLAN.............................................................................9
3.1 INTRODUCTION...........................................................................................................................9
3.2 ORGANISATIONAL STRUCTURE....................................................................................................9
3.3 MANAGEMENT OF THE BUSINESS.............................................................................................10
3.4 RECRUITMENT, TRAINING AND PROMOTION............................................................................11
3.4.1 RECRUITMENT....................................................................................................................11
3.4.2 TRAINING............................................................................................................................11
3.4.3 PROMOTION.......................................................................................................................11
3.5 REMUNERATION AND INCENTIVES............................................................................................11
3.5.1 REMUNERATION.................................................................................................................11
3.5.2 INCENTIVES.........................................................................................................................11
3.6 LICENSE, PERMITS AND BY-LAWS..............................................................................................12
3.6.1 LICENSE...............................................................................................................................12
3.6.2 PERMITS..............................................................................................................................12
3.6.3 BY-LAWS.............................................................................................................................12
3.7 SUPPORT SERVICES....................................................................................................................12
CHAPTER FOUR....................................................................................................................................14
4.0 PRODUCTION AND OPERATIONAL PLAN....................................................................................14
4.1 PRODUCTION FACILITIES............................................................................................................14
4.2 PRODUCTS STRATEGY................................................................................................................14
4.2.1 MATERIAL REQUIREMENT..................................................................................................14
4.2.2 MONTHLY LABOUR REQUIREMENT....................................................................................14
4.2.3 MONTHLY PRODUCTION EXPENSES....................................................................................15
4.2.4 COST OF PRODUCTION PER MONTH...................................................................................15
4.3 BUSINESS LAYOUT.....................................................................................................................15
4.4 OPERATIONAL AND PRODUCTION PROCESS..............................................................................16
4.4.1 GOVERNMENT REGULATION AFFECTING OPERATION........................................................16
4.4.2 ENVIRONMENT REGULATIONS...........................................................................................16

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 4.4.3 SAFETY REGULATIONS........................................................................................................16
4.4.4 HEALTH REGULATIONS.......................................................................................................16
4.4.5 INTERNAL RULES.................................................................................................................16
CHAPTER 5...........................................................................................................................................18
5.0 FINACIAL PLAN...........................................................................................................................18
5.1 INTRODUCTION.........................................................................................................................18
5.2 PRE-OPERATIONAL COST...........................................................................................................18
5.3 WORKING CAPITAL....................................................................................................................18
5.4 INCOME STATEMENT PROJECTION............................................................................................19
5.5 PROFORMA BALANCE SHEET 2023, 2024 AND 2025.................................................................19
5.6 CASH FLOW PROJECTION...........................................................................................................20
5.6.1 PROJECTION OF CASH FLOW FOR YEAR 2023.....................................................................20
5.6.2 PROJECTION OF CASH FLOW FOR YEAR 2024.....................................................................21
5.6.3 PROJECTION OF CASH FLOW FOR YEAR 2025.....................................................................22
5.7 BREAK EVEN ANALYSIS...............................................................................................................23
5.8 DESIRED FINACING.....................................................................................................................24
5.9 PROPOSED CAPITALISATION......................................................................................................24
APPENDIXES.........................................................................................................................................25
APPENDIX 1.....................................................................................................................................25
MAP SHOWING LOCATION OF THE MARKET...............................................................................25
APPENDIX 2.....................................................................................................................................26
BUSINESS LAYOUT.......................................................................................................................26

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CHAPTER ONE
1.0 BUSINESS DESCRIPTION
1.1 INTRODUCTION
The purpose of this chapter is to highlight the background of the owner, business location
and address, products and services form of ownership, justification of opportunity, type of
the industry, type of business and goals and objectives of the business.
1.2 BACKGROUND OF THE OWNER
The owner of the business will be Alice Soine who lives in Narok county in Narok East
Constituency and went through a level school at Shababa Pre-School and later on went to
Upper class and perform well in my KCPE examination. I went to Secondary at Sogoo
High School where I obtained a KCSE certificate. Later on, I joined Maasai mara
technical and Vocational college to pursue a course in information communication
technology.
1.3 BUSINESS NAME
The proposed business will be selling and servicing shop and it will accommodate and
serve the customers. The business will offer cheap and affordable services. The business
name will be MORTAR SOFTWARE. It will be located along Suswa road opposite
Equity bank near Maragateway Hotel. the principal customers targeted will be from mara
point market, Mai Mahiu and Ngong.
1.4 BUSINESS ADDRESS
The business will be located at Suswa along the Narok road highway near Maragateway
hotel
MORTAR SOFWARE
P.O BOX 663
NAROK
TELEPHONE NUMBER: 254 748 098 409
EMAIL: alicesoine@gmail.com

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 MAP SHOWING LOCATION

Rui cyber
Dispensary

Ewangan
supermarket

Computer
software

Maragateway
Narok – Nairobi Highway
hotel

Naningo
shop Equity
bank
Mortar
Software

Blessed
cyber

Wazi market

Police
station

Naekena computer
shop

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1.5 PRODUCTS AND SERVICES
1.5.1 PRODUCTS
The products which m business accommodate are printing machines which are used to
type the documents and others like laminators, posters and magazines.
1.5.2 SERVICES
The business used to mostly browse the internet, scanning, binding and some are used to
advertise by most of my friends.
1.6 FORM OF OWNERSHIP
The business carried out as a sole proprietor. The skills acquired by the owner has
resulted in mortar software which is use to run in day and night so as to achieve the
maximum of the goods.
SOURCE OF CAPITAL
PARTICULARS AMOUNT
LOAN AND SAVINGS 150000/-
FRIENDS 80000/-
FAMILY 100000/-
TOTAL 330000/-

TYPES OF BUSINESS
Start up is free, easy to understand lessons on useful business and marketing skills.
1.7 JUSTIFICATION OF OPPORTUNITY
The business will be well received in the town as competition there is not rather well
established and rather do not have the same offers or services under one roof. Opening
this business will have added advantage due to institutions around and the location is of
middle-class society hence the business will generate a good income.
1.8 TYPE OF INDUSTRY
The services in the industry have grown gradually from the limited to better technologies
being introduced. It has grown due to the demand of the internet money transfer in cell
phone. It belongs in the Kitet industry.
1.9 GOALS AND OBJECTIVES
1.9.1 GOALS
- The goals that to be achieved is to provide quality services and products
- They achieved to meet customers’ demands
- They ensure you earn much profit
- Creates employment to people
1.9.2 OBJECTIVES
- Gains confidence in operating my skills acquired
- Being able and free to work independently
- Stimulate and bring solutions in mortar software

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 - Increase the income of the entire nation.
1.9.3 ENTRY AND GROWTH STRATEGY
- Offering direct sales
- Market penetration
- Selling through online
- Products development
- Acquiring and insisting local business
1.9.4 FORM OF OWNERSHIP
She will use sole proprietor
PARTICULAR AMOUNT
Bank loans 100,000/-
Savings 200,000/-
Relative 80,000/-
TOTAL 380,000/-

1.8 TYPES OF INDUSTRY

The services in the industry have grown gradually from the limited to better technologies
being introduced, it has grown due to the demand of the internet money transfer in cell
phones. It belongs in the Kitet industry.
1.9 GOALS AND OJECTIVES
1.9.1 GOALS
- The goals that to be achieved is to provide quality services and products
- They also achieved to meet customers’ demands
- Also, to ensure you earn much profit
- Creates employment to people.
1.9.2 OBJECTIVES
- Increases the income of the entire nation.
- Gains confidence in operating my skills acquired.
- Being able and free to work independently
- Stimulate and bring solutions in Mortar software.

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CHAPTER TWO
2.0 MARKETING PLAN
2.1 INTRODUCTION
This chapter comprises of customers, competitors, market share, pricing, strategy, sale
statistics, advertising and promotion strategy and distribution strategy which will help
both customers, employees and employer to see how the business is growing as compared
to those of competitors. It will help the owner of the business to add techniques that will
help and worker if needed. It also helps the owner of the business to make sure that her
business is growing more than of her competitors.
2.2 CUSTOMERS
Within my town have been able to acquire a lot of customers from the area. Have also
been able to gain customers through my friendly environment hence attracting a lot of
people. My major customers will be teenagers from the institutions around and police
officers and other subordinate staff. Moreover, we will be suffering those from the market
owning shops and hotels. The local customers will be patients from nearest hospitals and
customers from the nearby restaurants.
2.3 COMPETITORS
Blessed and Naningo will be her competitors in Suswa market but Mortar software will
be more advantageous compared to blessed and Naningo business since Mortar software
will be found at the centre of the market where there is high population and her products
will be sold at an affordable price.

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 STRENGTH WEAKNESS OPPORTUNIT THREATS
Y
BLESSE - Skill - Low - Opening co- - Poor
D personnel integrity operatives transport
CYBER - Excellent - Lack of - Ability to sell facilities
outcome personnel to retailers - Weather
service - Relationship - Network - Market
- Good with marketing demand
leadership customers dries up.
- Innovation - Inadequate
definition of
customers
for product
development
.
Naningo - High - Poor - Business - Lack of
computer efficiency customer increase skilled
software - High service - Opening labour
integrity - Unskilled agendas - Material
- Low cost personnel - Rack shortage
- Poor jobbers - The
employee econom
attitude y due to
low
cost.
Mortar - Large - Low - Operating - Material
software market integrity the whole shortage
share - High cost market - When
- Advanced - Low - Open the
machine efficiency other market
- Personnel branches demand
relationshi dries up.
p with
customers

2.3.1 MARKET SHARE

The area of Suswa has an approximate popution of about 9000 people and the business
will be able to capture approximately 500 customers.

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A pie chart showing market share of the business.

MARKET SHARE

MORTAR SOFTWARE BLESSED CYBER NANINGO COMPUTER SOFTWARE

2.4 PRICING STRATEGY

She will offer her goods at affordable price since many people needs cheaper goods and
services. She will make sure that her goods and services will be of low price as compared
to those of her competitors. She will also use discounts to her customers to attract the
customers and after sometimes, she will be offering free offers to her customers. Price of
her goods and services will be variable.
2.5 SALE TACTICS
Mortar Software will employ people to help her distribute products to customers who are
from the market and are not able to come to the market. She will manage its sales team by
giving them directions to allow each sales person fulfil their potential. The business will
allocate responsibilities so that one person of the staff will look after a particular account.
This will allow customers to build a relationship with a particular account manager.
2.6 ADVERTISING AND PROMOTION STRATEGY
2.6.1 ADVERTISING
She will use Facebook and WhatsApp to advertise her business to make it known country
wide and also to attract customers. She will also use radios and television to advertise
which will cost her 1000 per month.
2.7 DISTRIBUTION STRATEGY
She will use both direct and indirect distribution because they both are of advantage to the
business and it will also help her to grow a strong relationship with her customers. In
direct distribution, customers that comes to the shop and those in nearest areas are the
target.

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In Indirect distribution, she will hire sales people t help her to deliver products to the
customers who requested for her products online. This will cost 3000 per month. She will
use road transport which will cost her 1000 per month.

SALES DISTRIBUTION CHANNEL

1. DIRECT
Manufacturer Retailer

2. INDIRECT
Manufacturer Supplier Retailer Consumer

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CHAPTER THREE
3.0 ORGANISATIONAL AND MANAGEMENT PLAN
3.1 INTRODUCTION
This chapter consists of organizational structure management of business, recruitment,
training and remuneration and incentives, license permit, by laws and support services.
This will help the management of the business to see how the business is running and it
will also help the business to acquire security from the government to reduce insecurity.
3.2 ORGANISATIONAL STRUCTURE.

Manager

Secretary Supervisor Treasurer

Security cooks Cleaners

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3.3 MANAGEMENT OF THE BUSINESS
Personnel Qualificatio Duties Responsibiliti Numbe Salar Total
ns es r Of y Per s
Per Worker Worker Mont
s h
Manager  Should be a  Maintain  Training and 1 10000 1000
time keeper staff and motivating 0
 Have more recruiting employees
experience employees  Solving
in business  Solving problems
 Must have a problems from
degree in from customers
business customers and
managemen and employees
t employees
Superviso  Ability to  Managing  Receives 1 8000 8000
r learn a work flow complains
variety of  Training and solve
job new hires problems
descriptions  Prepare and
 Diploma in submit
first line performance
managemen reports
t  Pass
information
Accounta  Leadership  Completing  Collect data 1 7000 7000
nt potential tax returns entry and
 Have  Examining report
accounting reports generation
certificate
Secretary  Must be  Collecting  Organizing 1 7000 7000
smart reports and servicing
 Know how  Managing meetings
to read and database  Maintaining
write diaries and
arranging
appointments
Driver  Have  Transportin  Picking up 1 6000 6000
driving g goods to office
license other purchase
 1 year places  Carrying out
driving  Assist in vehicle
experience loading and maintainance
 Must be of offloading check
time products
managemen
t
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 Security  Ability to  Permitting  Maintaining 2 5000 1000
solve entry peace and 0
problems as  Monitoring secure
they rise working environment
 Must know places for customers
how to and
write and employers
read
Cleaner  Ability to  Mopping,  Refiling 5 5000 2500
work alone dusting and supplies such 0
and in a sweeping as toilets
group  Carry out  Ordering new
 Able to deep cleaning
manage cleaning supplies as
time details needed.
effectively

3.4 RECRUITMENT, TRAINING AND PROMOTION

3.4.1 RECRUITMENT
The business will announce the recruitment of new employees if needed and if there will
be a job vacancy, it will be announced so that any interested person can come and get
recruited. The recruitment of the new employees will be done though advertisement
through social media and newspapers.
3.4.2 TRAINING
The business will offer training for the qualified members and this will cost the business
four thousand shillings in training. To make the business effectively it will need training
to employees in every month. The method to be used will be couching and mentoring.
3.4.3 PROMOTION
The business will promote its employees by; increasing the salaries, increasing number of
employees, reducing working hours by increasing number of employees and increasing
employees’ responsibilities.
3.5 REMUNERATION AND INCENTIVES
3.5.1 REMUNERATION
All the employees will be remunerated for the work done which will help both the
employers and the employees in the organization. All the employees will be paid monthly
through banks.
3.5.2 INCENTIVES
The business will offer lunch and breakfast as well as offering free accommodation to its
employees with their families. Incentives the manager can use his production include:
i. paying employees satisfaction salary
ii. giving employees a chance of seminars.

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3.6 LICENSE, PERMITS AND BY-LAWS
3.6.1 LICENSE
The business must be licensed by the central government and local authorities for it to
start its operation. It will also include direct licensing insurance and taxation different
types of licenses required are: trade license which certifies that the business has been
allowed to operate and also health license.
3.6.2 PERMITS
The business will start operation after acquiring a business permit from the government of
the business will observe the by-laws of the republic of Kenya.
3.6.3 BY-LAWS
The laws are important because they are used to help in solving the disputes which rise in
business organizations and in other way, it helps in protecting rights of the people if there
is discrimination among the people.
3.7 SUPPORT SERVICES
1. SECURITY SERVICES
The business will get security from Suswa Security services.
SUSWA SECURITY SERVICE
P.O BOX 88,
NAROK.
2. INSUARANCE SERVICE
The business will acquire its insurance from property insurance service.
PROPERTY INSUARANCE SERVICE,
P.O BOX 300-144,
NAROK.
3. POST OFFICE SERVICE
POST OFFICE SERVICE,
P.O BOX 60,
NAROK.
4. BANKING SERVICE
The business will acquire loans from equity bank.
EQUITY BANK,
P.O BOX 97,
P.O BOX 97,

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NAROK.
5. ELECTRICITY SERVICE
ELECTRICITY SERVICE,
P.O BOX 66,
NAROK.
6. WATER SERVICE
WATER SERVICE,
P.O BOX 57,
NAROK.

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CHAPTER FOUR
4.0 PRODUCTION AND OPERATIONAL PLAN
This chapter consist of product facilities, products strategy, material requirement,
monthly labour requirement, monthly production expenses, cost of production per month,
business layout, operation/production process, government regulation affecting the
operation, environment regulation, safety deals with its production and development of its
service, business production strategy and how the business handles laws and regulations
put together by the country. It will encourage the operators to observe the laws and
regulations.
4.1 PRODUCTION FACILITIES
Mortar software shop will acquire the following items for effective production and
operational.
Items Supplier Price Total
Computer Intel corp 20000 20000
Laptop Venters 10000 10000
Printer Apple 150000 15000
Cable Lenovo 1000 1000
Headphone Amkette 500 500
Charger Lenovo 150 150
Smartphone Lenovo 8000 8000
Total 54,650

4.2 PRODUCTS STRATEGY

4.2.1 MATERIAL REQUIREMENT
The following are monthly material cost, printers and photocopiers.
Item Cost per item Cost per day Total
Printing 20 per page 500 @20 10000
Photocopying 15 per page 600 @15 6000
Total 19000

4.2.2 MONTHLY LABOUR REQUIREMENT

PERSONNEL SALARY QUANTITY TOTAL
Manager 10000 1 10000
Supervisor 8000 1 8000
Accountant 7000 1 7000
Secretary 7000 1 7000
Driver 6000 1 6000
Security 5000 2 10000
Cleaner 5000 5 25000
TOTAL 73000

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4.2.3 MONTHLY PRODUCTION EXPENSES
ITEM COST PER MONTH
Electricity 8000
Water 15000
Internet 700
Telephone bill 3000
Rent 2500
License 100
Total 29,300

4.2.4 COST OF PRODUCTION PER MONTH

ITEM COST
Production monthly cost 29300
Monthly labour requirement 73000
Material required expense 54650
Total 156,950

4.3 BUSINESS LAYOUT

SECURITY SECURITY

Entry STORE

Exit

Parking Working
Area

Manager
Cleaner
office

Supervisor Office Secretary office Accountant office

Wash rooms Kitchen

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4.4 OPERATIONAL AND PRODUCTION PROCESS
The business will acquire the stock from Huruma suppliers in bulk so they get discount.
Goods are then stored in business premise. The business will ensure no run out before
satisfying customers need, when a customer comes he/she needs will be available. The
business will then negotiate the price until an agreement is met. In case a customer comes
requiring for a service like photocopy. The procedure will be as follows; the customer
will be gladly welcomed and asked to sit down and then asked politely of what she/he is
in need of her/he is in need of her/his document will be taken and photocopied according
to customers wish and then he/she will be recharged the required amount.
4.4.1 GOVERNMENT REGULATION AFFECTING OPERATION
The government will acquire rules and regulations from Narok government county that
will enable the business to start operating since the government requires NHIF. The
business will make sure that each staff will be deducted in his/her salary to pay for their
NHIF which will cost each worker 500 hundred shillings. The business will submit taxes
to county government. Some of the regulations will include;
- Health and safety-first aid regulation like adequate first aid equipment and
facilities.
- The employees should report any accident or injury that arises.
- Fire regulations, assessing the risk of fires, with a particular focus and those who
might be vulnerable such as children.
4.4.2 ENVIRONMENT REGULATIONS
The business will require a certificate from the national environment. This is to ensure
that the business does not interfere with the government in terms of pollution. Business
will install pollution control equipment and change business production processes to
control pollution. Since dirty location can lead to increase in pollution in once clean area.
The business will intend to protect human health and environment by keeping the
environment clean. This will help the business to grow since customers will be attracted
by clean environment.
4.4.3 SAFETY REGULATIONS
In order for this business to grow it will have a clear safety concern, eventually supported
by a documented safety policy and ensure that these concerns are implemented and
maintained. This will help the business to solve any raised issue concerning the business,
either among the employees or even customers.
4.4.4 HEALTH REGULATIONS
The business will ensure that all workers have NHIF cards. Every employee in the
business should have a health insurance. The business will also ensure that after every
year all the employees must go for medical checkup. This will help the business to grow
and keep all employees safe.
4.4.5 INTERNAL RULES
 No smoking
 No absentees without apology

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 No breastfeeding at work
 Job attendance must be 70%
 No relationships among employees
 No idling around during work hours
 No leaking of the business passwords to the outsiders

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CHAPTER 5
5.0 FINACIAL PLAN
5.1 INTRODUCTION
This chapter comprises of pre operational cost projected income and expenditure account,
projected cash flow for three consecutive years, projected spread sheets, break even point,
profitability ration, desired financing, pro forma balance sheet and proposed
capitalization. This chapter helps the owner of the business to know whether the business
will make a profit or a loss. It will also help the management to operate smoothly with the
business.
5.2 PRE-OPERATIONAL COST
PARTICULARS AMOUNT
Electricity bill 6000
License 100
Water bill 12000
Telephone cost 36000
House rent 18000
Transport 12000
Business registration 800
Advertisement 2000
Total 108, 900

5.3 WORKING CAPITAL

Particulars Year 2023 Year 2024 Year 2025
Stock of materials 45000 40000 42000
Stock of finished 40000 250000 50000
Goods
Debtors 18000 32000 48000
Cash in hand 60000 30000 40000
Cash in bank 160000 50000 60000
Total 728000 402000 240000

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5.4 INCOME STATEMENT PROJECTION
ITEM YEAR 2023 YEAR 2024 YEAR 2025
Income sales 565800 322000 660800
Cost of goods sold 170000 174000 176000
Gross profit 735800 796000 836800
Less expenses
Rent 32000 36000 40000
Salary 820000 860000 960000
Electricity 12000 16000 20000
Advertising 24000 18000 13000
Telephone 48600 48800 50000
Transport 42000 48000 54000
Water bill 20000 28000 32000
Insurance 36000 36000 36000
License 12000 14000 16000
TOTAL 1,046,600 1,104,800 1,121,000
NET PROFIT 310800 308800 284200

5.5 PROFORMA BALANCE SHEET 2023, 2024 AND 2025

ITEMS 2023 2024 2025
CURRENT ASSETS
Cash in hand 200000 230000 270000
Stock 20000 240000 280000
Inventory
Debtors 200000 280000 3000000
Cash In Bank 400000 350000 3000000
TOTAL 1000000 11000000 11500000
FIXED ASSETS
Vehicles 100000 140000 140000
Buildings 250000 30000 300000
Equipment 150000 150000 200000
Machinery 50000 50000 50000
TOTAL 550000 1705000 1850000
LIABILITIES
Creditors 500000 60000 60000
Bank loans 200000 200000 300000
Unpaid bills 450000 550000 600000
Bank overdraft 400000 400000 650000
TOTAL 1550000 1750000 185000

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 5.6 CASH FLOW PROJECTION
5.6.1 PROJECTION OF CASH FLOW FOR YEAR 2023
ITEMS JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC
Cash inflow 165000 203500 263500 340000 435000 547500 666000 792500 927000 1070500 1225000
balance
before
Sales 70000 100000 120000 130000 140000 150000 155000 160000 165000 170000 180000 185000
Collection of 50000 55000 60000 70000 80000 90000 95000 100000 105000 110000 115000 120000
debts
Total cash in 130000 320000 383500 463500 561000 676000 798500 927000 1063500 1208000 1365500 1531000
flow
Cash outflow 350000 - - - - - - - - - - -
loans
Insurance 2400 - - - - - - - - - - -
Salaries 87000 87000 87000 87000 87000 87000 87000 87000 87000 87000 87000 87000
License 1000 - - - - - - - - - - -
Water 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000 7500
Rent 18000 20000 22000 23000 24000 25000 28000 2900 30000 31000 32000 33000
Electricity 6000 7000 8000 9000 10000 11000 11500 12000 12500 13000 13500 14000
Total outflow 113000 116500 120000 122500 125000 127500 131500 133500 135500 137500 139500 141500
cash
Accumulatio 165000 203500 263500 341000 436000 548500 667000 793500 928000 1076500 1226000 1389500
n cash

Page | 20
 5.6.2 PROJECTION OF CASH FLOW FOR YEAR 2024
ITEMS JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC
Cash inflow 1389500 1601500 1722500 1962500 2211500 2469500 2746500 3032500 3327500 3631500 3944000 4265500
balance
before
Sales 200000 100000 210000 215000 220000 230000 235000 240000 245000 250000 255000 300000
Collection of 110000 120000 130000 135000 140000 150000 155000 160000 165000 170000 175000 180000
debts
Total cash in 1699500 1821500 2062500 2312500 2571500 2849500 3136500 3432500 3737500 4051500 4374000 4745500
flow
Cash outflow 350000 - - - - - - - - - - -
loans
Insurance 2400 - - - - - - - - - - -
Salaries 87000 87000 87000 87000 87000 87000 87000 87000 87000 87000 87000 87000
License 1000 - - - - - - - - - - -
Water 6500 7000 7500 8000 8500 9000 9500 10000 10500 11000 115000 12000
Rent 10000 - - - - - - - - - - -
Electricity 5000 5500 6000 6500 7000 7500 8000 8500 9000 9500 10000 10500
Total outflow 98000 99000 100000 101000 102000 103000 104000 105000 106000 107600 108500 109500
cash
Accumulatio 1601500 1722500 1962500 2211500 2469000 2746500 3032500 3327500 3631500 3944000 4265500 4636000
n cash

Page | 21
 5.6.3 PROJECTION OF CASH FLOW FOR YEAR 2025
ITEMS JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC
Cash inflow 4636000 503100 5435000 5848000 6270000 670100 7141000 7590000 804800 8515000 8991000 9476000
balance 0 0 0
before
Sales 305000 310000 315000 320000 325000 330000 335000 340000 345000 350000 355000 360000
Collection of 190000 195000 100000 205000 210000 215000 220000 225000 230000 235000 240000 245000
debts
Total cash in 5131000 553600 5950000 6373000 6805000 724600 7696000 8155000 862300 9100000 9586000 10081000
flow 0 0 0
Cash outflow 350000 - - - - - - - - - - -
loans
Insurance 2400 - - - - - - - - - - -
Salaries 87000 87000 87000 87000 87000 87000 87000 87000 87000 87000 87000 87000
License 1000 - - - - - - - - - - -
Water 7000 7500 8000 8500 9000 9500 10000 10500 11000 11500 12000 12500
Rent 10000 - - - - - - - - - - -
Electricity 6000 6500 7000 7500 80000 8500 9000 9500 10000 10500 11000 11500
Total outflow 100000 101000 102000 103000 104000 105000 106000 107000 108000 109000 110000 111000
cash
Accumulation 5031000 543500 5848000 6270000 6701000 714100 7598000 8048000 851500 8991000 9476000 9970000
cash 0 0 0

Page | 22
5.7 BREAK EVEN ANALYSIS
VARIABLE COST
PARTICULAR AMOUNT
Telephone bill 36000
Electricity 6000
Water bill 120000
Advertisement 24000
Total 186000

FIXED COST
Particulars Amount
Salary 876000
License 100
Transport 120000
Rent 18000
Total 1014100

Contribution margin = sales – variable cost

contribution margin
Break-even point = x 100
sales
a) 565800−(12000+24000+ 42000)
565800− 78000
¿ 487800
487800 x 100
2565800
= 86%

b) Contribution margin = sales – fixed cost

contribution margin
Break even point = x 100
sales
Sales – (rent + insurance + license)
565800−80000
¿ 485800

487800 x 100
565800
= 86%

Page | 23
5.8 DESIRED FINACING
Pre-occupational cost 300000
Working capital 350000
Fixed asset -
Building 779900
Machinery 100000
Equipment 100000
Total 1629900

5.9 PROPOSED CAPITALISATION

PARTICULARS AMOUNT
Bank loans 100000
Savings 200000
Total 300000

Page | 24
 APPENDIXES
APPENDIX 1
MAP SHOWING LOCATION OF THE MARKET

Rui cyber
Dispensary

Ewangan
supermarket

Computer
software

Narok – Nairobi Highway Maragateway

hotel
Naningo
shop Equity
Petrol bank
station Mortar
Software

Blessed
cyber

Wazi market

Police
station

Naekena computer
shop

Page | 25
APPENDIX 2
BUSINESS LAYOUT

SECURITY SECURITY

Entry
STORE

Exit

Parking Working
Area

Manager
Cleaner office

Supervisor Office Secretary office Accountant office

Wash rooms Kitchen

Page | 26