SHINE FRUIT VENDOR

PRESENTER NAME : YEGON. C . IRINE

INDEX NUMBER : 5031110986

INSTITUTION : KITALE NATIONAL POLYTECHNIC

DEPARTMENT : HOSPITAITY

COURSE : CATERING AND ACCOMODATION

COURSE CODE : 1819/205

SUBMITTED TO : THE KENYA NATIONAL

EXAMINATION COUNCIL IN PARTIAL
AND FUFLIMENT FOR THE AWARD OF
CERTIFICATE IN CATERING AND
ACCOMMOSAATION

SUPERVISOR : MADAM SALOME

EXAMS SERIES : JUNE/JULY2022

1
DECLARATION
I declare that this business plan is my original hand written work without referring to any written
materials

NAME SIGNATURE

YEGON . C . IRINE ___________________

SUPERVISION DECLARATION

NAME SIGNATURE

__________________________________
_______________________________

DATE_____________________

i
DEDICATION
I dedicate this work to Kenya National Authority Airways (KENHA). My lovely mother
Everlyne Yegon and my friends for there prayer and support during this entire support

Thank you for being there for me.

God Bless You

ii
ACKNOWLEDGEMENT
I hereby acknowledge Madam Salome for her support towards my business plan project and
therefore may the Almighty God bless her so much

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Contents
DECLARATION..........................................................................................................................................i
DEDICATION............................................................................................................................................ii
ACKNOWLEDGEMENT..........................................................................................................................iii
CHAPTER 1................................................................................................................................................1
1.0 BUSINESS DESCRIPTION.................................................................................................................1
1.1 BUSINESS NAME...............................................................................................................................1
1.2. LOCATION OF THE BUSINESS.......................................................................................................1
1.3. FORM OF OWNERSHIP.....................................................................................................................1
1.4. TYPE OF THE BUSINESS..................................................................................................................2
1.5. BUSINESS PRODUCTION AND SERVICES....................................................................................2
1.5.1.BUSINESS PRODUCT......................................................................................................................2
1.5.2.BUSINESS SERVICES......................................................................................................................2
1.6. JUSTIFICATION OF THE OPPORTUNITY......................................................................................2
1.7. THE GOALS OF THE BUSINESS......................................................................................................2
1.7.1. THE LONGTERM AND SHORTTERM GOALS............................................................................2
1.7.2.THE ENTRY AND GROWTH..........................................................................................................3
CHAPTER 2................................................................................................................................................4
2.0 MARKETING PLAN............................................................................................................................4
2.1. CUSTOMER........................................................................................................................................4
2.2 Domestic customer................................................................................................................................4
2.3. Industrial customers..............................................................................................................................4
2.4 Marketing share.....................................................................................................................................4
2.5 COMPETITORS...................................................................................................................................4
Advertisement.............................................................................................................................................5
Promotion....................................................................................................................................................5
Pricing Strategy...........................................................................................................................................5
CHAPTER 3................................................................................................................................................6

iv
3.0.MANAGERMENT PLAN....................................................................................................................6
Managing Director......................................................................................................................................6
Production Manager....................................................................................................................................6
Marketing Manager.....................................................................................................................................6
3.1. ORGANAISATION PLAN..................................................................................................................7
Managing Director......................................................................................................................................7
3.2.RECRUITMENT, TRAINING AND PROMOTION............................................................................7
3.2.1.RECRUITMENT,...............................................................................................................................7
3.2.2 TRAINING.........................................................................................................................................7
3.3. PROMOTION......................................................................................................................................7
3.4. Incentive...............................................................................................................................................8
3.5.LICENCE AND PERMIT.....................................................................................................................8
3.6.SUPPORT SERVICES..........................................................................................................................8
CHAPTER FOUR............................................................................................................................................9
4.0 Organization and management.............................................................................................................9
INTRODUCTION...........................................................................................................................................9
4.1 Management plan.................................................................................................................................9
4.2 Staffing...................................................................................................................................................9
4.3 people systems....................................................................................................................................11
4.4PRODUCTION STRATEGY...............................................................................................................11
4.5LIST OF MONTHLY MATERIALS REQUIREMENTS....................................................................12
4.6LIST OF MONTHLY LABOUR REQUIREMENTS..........................................................................12
4.7LIST OF MONTHLY PRODUCTION EXPENSES............................................................................13
COST OF PRODUCTION..................................................................................................................13
4.8 GOVERNMENT REGULATIONS AFFECTING THE BUSINESS..................................................13
CHAPTER FIVE............................................................................................................................................15
FINANCIAL PLAN........................................................................................................................................15
5.1 PRE- OPERATIONAL PLAN....................................................................................................................15
5.2 ESTIMATED WORKING CAPITAL...........................................................................................................15
5.3 PRO – FORMAT BALANCE SHEET........................................................................................................16

v
5.4 DESIRED FINANCING............................................................................................................................17
5.5 CAPITALIZATION..................................................................................................................................17
5.6 PROFITABILLITY RATIONS....................................................................................................................17
6.3.1 PROJECTED CASH FLOW STATEMENT FOR THE YEAR ENDING 31ST DEC 2012..................................19
PROFORMA INCOME STATEMENT.............................................................................................................21
PROFORMA BALANCE SHEET.....................................................................................................................23
6.5 BREAK EVEN POINT..............................................................................................................................24
6.6 EXPECTED PROFITABILITY RATIOS........................................................................................................24
DESIRED FINANCING.............................................................................................................................25

vi
EXECUTIVE SUMMARY

BUSINESS DESCRIPTION

SHINE FRUIT VENDOR is the new company that’s deals with fruits production and fruits
distribution. The head quarter offices are located at trans nzoia County -Kenya. SHINE FRUIT
VENDOR is the one of growing companies in town dealing with fruits production and fruits
distribution. The fruits produced and distributed by the company including oranges, pineapples
and apples specifically.

MARKETING PLAN

There is a greater percentage of the target market that enjoys eating fruit. It must be noted that of
the respondents who said they did not like fruit went on to say that they dislike raw fruit, but
would consume in other forms

A vigorous marketing strategy will be implemented to capture more customers. Keeping in mind
that this was not necessarily the sentiment of the majority of potential consumers, a further
survey was conducted to provide a broader representation.

Online marketing will be extremely effective in the marketing strategy, as Permission will be
sought to have a link on the global market.

Other marketing strategies are as follows:

Launching a website, Commercials on the radio and local television channel, Posters, Flyers,
Prizes, packages and give away, the use of social media.

The company will be primarily row style with multiple shelves but as the business grows, more
outlets will be set up. At some point in the future, my business may expand into other healthy
dishes

ORGANISATION AND MANAGEMENT PLAN

The Company will operate as Sole Owned Company which will be owned by one person who
YEGON, The business is owned by one person known. Therefore, Madam YEGON contributed
100% of the total contribution. Company is managed by Madam. Yegon

vii
There shall be formed the management team of fruits supply company which will be led by the
Managing Director. Other members of management team shall include relevant head of other
departments as well as office secretaries.

OPERATIONAL AND PRODUCTION PLAN

I expect to produce good and quality products so as to overcome the competitive condition and
then we expect to sell these products at affordable price so that every customer can afford to buy
our products. The products will be protected legally by being registered in the Kenyan Bureau
Standard (KBS).

My main targeted consumers will be super markets, local markets, restaurants and hotels in the
regions of Kitale , Eldoret and webuye, we have selected these specific markets in these three-
region due to different reasons; for example, in Kitale which are semi desert regions there is
high demand for these fruits, so when we are going to supply these products to these region, we
are to draw more customers because we are going to sell these products in affordable price
means even the poorer people they can afford to buy these products

FINANCIAL PLAN

Under pre operational plan, the proposed business will use a capital of KSH 85,000, The
working capital included will also be included n the three years and thus amounting to 350000
shillings. The cash flow projections for the three years include as in total year one 285,200, year
two 305,000 and the third year 340,000consectively. The total cash projections will hence
therefore amount to 930,000shillings

viii
CHAPTER 1

1.0 BUSINESS DESCRIPTION

A fruit vender is an establishment that produces and sell fruits such as oranges and
mangoes

1.1 BUSINESS NAME

My business name is shine fruit vendor . I have suggested the name because it will be
providing and selling fruits and of good quality and extracting fruits to my customers
who need them

1.2. LOCATION OF THE BUSINESS

The business will be located at Kitale town near bus park at Climax stage

FLYOVER
KITALE TOWN

SHINE FRUIT VENDOR

CLIMAX STAGE

BUS PARK

1.3. FORM OF OWNERSHIP

The business will be a sole proprietor. Its easy tp start and more profitable and the
owner undergoes all risk that will arise and cane be able to expand as fast as he can.

1
 It opens up possibilities of making more than you could possibly make as an
employee

1.4. TYPE OF THE BUSINESS

The business will acquire as one, since the customers are more available in that place
and transportation is easy due to smooth road.
The business will start March 2022

1.5. BUSINESS PRODUCTION AND SERVICES

1.5.1.BUSINESS PRODUCT
The business will offer high quality of fruits that will make customers to
come again because they are satisfied with the products that we are
supplying

1.5.2.BUSINESS SERVICES
The business will provide good services like packing the fruits well

1.6. JUSTIFICATION OF THE OPPORTUNITY

The business will be located near bus park and the transport will be easy and cheap
and the customers will locate the business easily
The business will have well ventilated to avoid perishability of fruits

1.7. THE GOALS OF THE BUSINESS

1.7.1. THE LONGTERM AND SHORTTERM GOALS

The number of fruits consumed everyday. Sustainability development.
Impliment policies ,system and environment changes.
2
 The subscription farming.
Improvement quality of the fruits

1.7.2.THE ENTRY AND GROWTH

The entry and exit from the market can occur very quickly
My business will be well known through the supply of fliers and posters

3
CHAPTER 2

2.0 MARKETING PLAN

2.1. CUSTOMER

Shine fruit vendor is the business that will provide good in large scale and also small scale to
which in can serve both domestic and large scale customers

2.2 Domestic customer

The business will provide customer with ready made products to which consumes buy product
for domestic purpose

2.3. Industrial customers

This will also provide product in large scale for industry that process them to other finised
product making more marketing

2.4 Marketing share

The approximate population around kitale town is 17000 people hence. The target population is
20,000 out of which 70% will visit Shine fruit vendors while 30% would visit the fruit vendor
Shine ’s fruit vendors while 30% would visit by 70% while the other fruit vendor will be visited
by the 30% of the population .

2.5 COMPETITORS

NAME STEGHTS WEAKNESS

Shine fruits vendors Good sanitation New in the market low turn up

Good infrastructure

Good skills personnel

4
 Good competition measure

Other competitors(orients Good management measure Low turn up of customers

vendors
Good location Lack of infrastructure

Ngala’s fruit vendor Good relation power High rate

Good location High price

Advertisement

The made of advertisement I will use radio and mostly newspaper because it got so many people
attention and doing public rally through so road show

Promotion

promotion ads as the key to a business the promotion will be done by providing nice carrier bags
and buy two get one free policy

Pricing Strategy

this pricing will be done according to marked price and the pricing in the area to which it wont
be to high for customers to afford

5
CHAPTER 3

3.0.MANAGERMENT PLAN

Managing Director

This will be operating as the head of the company where he will be in charge of all things
concerning the business of the company. All matters including decision
making,organizing,planning, coordinating and influencing will be under the Managing Director.

Production Manager.

The Production manager will be in charge of day-to-day activities of the company, mainly he
will be concerning with production activities. He will be reporting to the Managing director.

Marketing Manager.

He will be in charge of sales and marketing department. The major role is to increase sales
volume per annum and promote the company’s products as well as advertising them.

Other responsibilities of marketing manager are as follows;

o Ensure the proper distribution of products to the markets.

o Payments of taxes related to the products supplied.

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

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

6
3.1. ORGANAISATION PLAN

Managing Director

Production Manager

Marketing Manager.

3.2.RECRUITMENT, TRAINING AND PROMOTION

3.2.1.RECRUITMENT,

Start the business it will make an advertisement for the post available and those with
relevant qualification will be shortlisted and called for interview

3.2.2 TRAINING

Those that passed the interview will undergo so relevant training

3.3. PROMOTION

Member will do some promotion like doing road show and just
Basic promoting

7
3.4. Incentive

the employees will be will treated in that their meal will be well balanced. They will be
provide with the voucher to attend various patriots of their wish they will also be
provided with soft loans and even having leaves

3.5.LICENCE AND PERMIT

The business will have license that will be provided by the county government of trans nzoia

NAME: SHINE VENDOS

CARTEGORY: COMPANY

COST: 75,000

3.6.SUPPORT SERVICES

They are professional service offered to a firm or a business

8
CHAPTER FOUR

4.0 Organization and management

INTRODUCTION
An operation is how the business owner outlines its products and services and how they will go into the

market. It enables the owner identify problems that may bring a negative impact on the overall

production. Its main concern is based on the operational systems on the most analysis and total cost

4.1 Management plan

The production of the business will be different varieties of fresh fruits. Then the owner will sell the

goods while raw and blended for juice in order to utilize the commodity workers will put on labeled

aprons with the business name thus goods will be identified in a pleasant manner with the juice container

appearing in different types also workers will attend seminars for more skills and knowledge.

4.2 Staffing
The business will sell fresh and natural commodities with aim of profit maximization and customers

satisfaction. The business therefore will achieve its goals by using machinery and equipment for it to run

effectively.

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ITEM QUANTITY PRICE (KSHS) TOTAL COST SUPPLIERS

(KSHS)

Blender 3 2000 6000 Julia suppliers

Refrigerator 3 15000 45000 Miriam’s Electronics

Knives 15 50 750 Irine’s suppliers

Generator 1 9000 9000 Milano electronics

Furniture 3 900 2700 Fair deal

Jugs 20 50 1000 Shah and sons limited

Glasses 50 30 1500 Mombasa depot

Dustbins 15 40 600 Haroon suppliers

T- shirts 5 1000 500 Malindi fashions

Calculator 2 900 1000 Juma electronics

Mops 4 50 200 Oroni limited

Peelers 6 60 360 Karamjee suppliers

10
4.3 people systems
The proposed shed for the parlor will include a fruit shop which will be the business area of interest and

customers will be received from here plus cash payment on credit. At this zone will be included for the

variety of juice for refreshment.

Store room will be for storage of fruits supplied for business to maintain the fresh condition. Fruits and

containers cleaning room to clean fruits before exposing to customers.

ITEMS QUANTITY CAPACITY SUPPLIER PRICE (KSHS)

FURNITURE 2 - Fair deal 15,000

VAN/PICKUP 1 2 seater Bin dhahaman -

4.4PRODUCTION STRATEGY
The following strategy will be applied to beat the competition

1. quantity

the business will ensure that the commodity for sale are of good quality for consumer this will be through

inspectors.

2. Time management

Operation time for the business will be from 8.00 am to 9.00 pm daily except on Sunday

3. Research

Research of new products and technology will be done by the business to have variety of customers

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 4. Price

The business will maintain customers by offering them competitive prices

4.5LIST OF MONTHLY MATERIALS REQUIREMENTS

ITEMS QUANTITY PRICE COST

Polythene paper 400 10 4000 Sharrifs suppliers

straws 4 pkts 100 400 Malindi distributors

4.6LIST OF MONTHLY LABOUR REQUIREMENTS

DESIGNATION KSHS

Manager 14,000

Financial controller clerk 10,000

Drivers 6,000

Sales men (2) 7,000

Security man/ watchman 4,500

Cleaner 5,000

TOTAL 47,000

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4.7LIST OF MONTHLY PRODUCTION EXPENSES
PRODUCTION EXPENSES KSHS

Transport 8,000

Electricity 6,000

Advertisement 4,500

Water 2,300

TOTAL 20,820

COST OF PRODUCTION

ITEMS KSHS

Lab our cost 40,000

Over 1,800

RAW MATERIAL 6,000

TOTAL 64,000

4.8 GOVERNMENT REGULATIONS AFFECTING THE BUSINESS

1. Registration of the business

13
The government regulation act requires that the business be registered before commencing at Ksh 5,500.

2. Local government act

This requires that the owner to have a license from the county council to legalize the operation also must

Have a permit from the horticultural officer since the owner deals with agricultural goods.

3. Health regulations

The business must have a license from the health officer to show that the goods are safe for human

consumption at a fee of 1000 Ksh.

The staff will undergo medical checkup.

4. Value added tax.

Value added tax will be paid to the Kenyan revenue Authority

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CHAPTER FIVE

FINANCIAL PLAN

5.1 PRE- OPERATIONAL PLAN

FURNITURE AND FITTING 40,000

LICENCES 8000

ELECTRICITY INSTALLATION 4000

TOOLS AND EQUIPMENT 12000

TELEPHONE 500

POSTAL INSTALLATION 5000

ADVERTISEMENT 6000

STATIONARY 3000

INSSURANCE 5000

RENT 3000

TOTAL 85,500

5.2 ESTIMATED WORKING CAPITAL

W.c = Ca – Cl

Cash at bank 130,000

Cash at hand 50,000
Debtors 40,000
Stock 120,000

15
Current liabilities
Creditors 20,000
Bank creditors 150,000
Accruals 5000

Wc = Ca – Cl

=340,000-175,000
=165,000

5.3 PRO – FORMAT BALANCE SHEET

DESCRIPTION YEAR 1 YEAR 2 YEAR 3

FIXED ASSET

MACHINARY 30000 40000 45000

EQUIPMENT 12000 20000 38000

FUNITURE AND FITTING 40000 46000 52000

TOTAL 82000 106000 125000

CURRENT ASSET

CASH AT HAND 50,000 100,000 120,000

CASH AT BANK 130,000 140000 150,000

DEBITORS 40,000 60000 75,000

STOCK 120,000 125000 150,000

TOTAL 340,000 425,000 495,000

431,900 553,000 700,000

16
5.4 DESIRED FINANCING

ITEM AMOUNT

PRE OPERATIONAL COST 85,500

WORKING CAPITAL 165,000

FIXED ASSET 125,000

TOTAL 365,000

5.5 CAPITALIZATION

ITEM AMOUNT

OWNERS CONTRIBUTION 130,000

BORROWED FUNDS 90,000

TOTAL INVESTMENT 220,000

5.6 PROFITABILLITY RATIONS

I. GROSS PROFIT RATIO

= G.P/SALES *1000
378000/85000*1000
=445%

II. NET PROFIT RATIO

=N.P/SALES*100
510,000/85000*100
=600%
III. RETURN OF COPERATOIVE
NET PROFIT *100/OWNERS COP

17
=600/103500*100
=0.5797

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 6.3.1 PROJECTED CASH FLOW STATEMENT FOR THE YEAR ENDING 31ST DEC 2012
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Total
Cash Inflows Ksh. Ksh. Ksh. Ksh. Ksh. Ksh. Ksh. Ksh. Ksh. Ksh. Ksh. Ksh. Ksh.
Owners equity 3500000 350000
Bank loan 250000 250000
Family and 400000 400000
friends
Cash sales 70000 80000 85000 86000 86000 8800 88000 89000 91000 91500 93000 94500 104200
0
Collection from 2000 3000 1500 2000 3000 15000 1000 2000 1500 1000 1500 20000
Debtors
Total Cash 1070000 82000 88000 87500 88000 91000 89500 90000 93000 93000 94000 96000 206200
inflows 0
Cash outflows
Salary and wages 54000 54000 54000 54000 54000 54000 54000 54000 54000 54000 54000 54000 648000
Transport 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 18000
Electricity bill 1000 900 1100 1000 900 900 1000 1200 1100 800 1100 1000 12000
Telephone bill 500 400 600 500 600 400 300 700 500 600 400 500 6000
Water bill 300 350 300 250 350 300 250 300 250 300 350 300
Insurance bill 2500 2500
Rent 1000 1000 1000 1200 1000 1000 1000 1000 1000 1000 1000 1000 12000
Stationeries 250 200 300 250 200 300 250 250 200 300 250 250 3000
License and 2000 2000
permits
Maintenance 500 400 600 500 600 400 700 500 300 600 400 500 6000
Registration fee 1500 1500
Advertisement 250 300 200 250 300 250 200 250 250 200 300 250 3000

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Furniture & 3000 3000
fittings
Installation 1000 10000
Machinery & 81000 81000
equip
Partitioning 3000 3000
Telephone 2000 2000
installation
Payment to 1500 1200 100 800 500 700 1000 800 1000 120 9700
creditors
Loan interest 2000 2000 2000 2000 2000 2000 2000 2000 2000 18000
Total outflow 816600 59050 61100 62450 62450 61850 61700 62400 62100 62100 62300 62500 149660
0
Net profit before 253400 22950 26900 25050 25500 29150 27800 27600 30900 30900 31700 33500 565400
tax
20% tax 50680 4590 5380 5010 5110 5830 5560 5520 6180 6180 6340 6700 113080
Net profit after 202720 18360 21520 20040 20440 23320 22240 22080 24720 24720 25360 26800 452320
tax
Accumulated 202720 22108 24260 26264 28308 30640 32864 35072 37544 40016 42552 45232
cash 0 0 0 0 0 0 0 0 0 0 0

20
PROFORMA INCOME STATEMENT
Item 1st Year Ksh. 2012 2nd Year Ksh. 2013 3rd Year Ksh. 2014

Owners equity 350,000 3,500,000 3,550,000

Bank loan 250,000

Family and friends 400,000

Cash sales 2,062,000

Total cash inflows 2,062,000 3,500,000 3,550,000

Outflows

Salary and wages 648,000 648,000 720,000

Transport 18,000 19,000 20,000

Electricity bills 12,000 13,000 14,000

Telephone bills 6,000 6,000 7,000

Water bills 3,600 3,700 3,800

Insurance 2,500 2,500 2,500

Rent 12,000 12,000 12,000

Stationery 3,000 3,200 33,000

License and permits 2,000 2,000 2,000

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Repair and maintenance 6,000 5,000 6,000

Registration fee 1,500

Advertisement 3,000 3,000 3,200

Furniture 3,000

Machinery and equipment 81,000 50,000

Electricity installation 10,000

Premise partitioning 3,000

Telephone installation 2,000

Total outflows 816,600 767,400 823,500

Net profit after tax 1,245,400 2,188,600 2,726,500

20% tax 244,080 487,720 545,300

Net profit after tax 996,520 1,750,880 2,181,200

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PROFORMA BALANCE SHEET
Item As at opening As at end Year one As at the end of Year
Date 1st Jan 2012 31st Dec. 2013 Two 31st Dec 2014

Current Assets

Opening stock 150,000 160,000 200,000

Cash at hand 50,000 80,000 90,000

Debtors 20,000 1,000 20,000

Cash at bank 80,000 90,000 100,000

Total current assets 300,000 340,000 410,000

Fixed assets

Equipment and machinery 81,900 81,900 83,000

Furniture and fittings 3,000 3,200 37,000

Total fixed assets 84,900 85,100 120,000

Total assets 384,900 425,100 530,000

Liabilities

Creditors 80,000 78,000 82,000

Bank overdraft 70,000 62,000 68,000

Total liabilities 150,000 14,000 150,000

Long term liabilities

Bank loan 10,000 80,000 50,000

Total Current Liabilities 250,000 220,000 200,000

Capital Employed 134,000 205,000 330,000

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6.5 BREAK EVEN POINT
This is where the business neither makes a profit nor a loss but can still keep the business running

normally. This occurs when income is equal to the expenses. This will not happen in shine fruit

vendor since the premise is well staff with customers.

6.6 EXPECTED PROFITABILITY RATIOS

The total profit ratio of shine fruit vendor business will be expressed as % as follows.

Profit Ration

Net profit is the amount of money obtained after the sales of goods and services assuming that no

other expenses is incurred this is after tax.

Gross profit = Gross profit x 100

Sales

= 452320 x 100

1042000

= 48.408%

Gross profit ratio = Gross profit x 100

Sales

= 565400 x 100

1042000

24
 = 54026

DESIRED FINANCING

This is the overall requirement for the business to set up. Total capital requirement for shine fruit

vendor will be broken down into the following.

Item Amount Ksh.

Pre-operational costs 120,500

Working capital 150,000

Fixed assets 384,000

Furnitures and fittings 3,000

Machines and equipment 81,000

Total 738,500

25