TITLE: BUSINESS PLAN

BUSINESS NAME : ANN'S MILK PARLOUR

ADDRESS : P.O BOX 416 NYERI

TELEPHONE : 0750293327

EMAIL : anngatwiri75@gmail.com

PRESENTED BY: ANN GATWIRI

INDEX NUMBER: 015

INSTITUTE: WAKA SCHOOL OF NURSING

COURSE: CERTIFICATE IN HEALTH CARE ASSISTANCE

PRESENTED TO: KENYA NATIONAL EXAMINATION COUNCIL IN PARTIAL
FULFILMENT OF THE REQUIREMENT FOR AWARD OF CERTIFICATE IN
HEALTH CARE ASSISTANCE
SERIES: 4/11/2023
SUPERVISOR: MR ANTONY
Declaration
I Ann Gatwiri declare that this is my original work and it has never been presented anywhere for
any award of a certificate.

NAME ……………………………………………………………………………………

SIGNATURE………………………………………DAT E…………………………….

This project has been submitted to Mr Antony with my approval as the business plan supervisor.

SUPERVISOR …………………………………………………………………………….

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

ACKNOWLEDGEMENT

As the author of this business many thanks go to the almighty for the health and physical effort
throughout the course. Also, my supervisor Mr.Antony for the supervision on the general work
of the business plan not forgetting Waka School of Nursing community for a good living and
conducive environment, which has led to my success in writing my business plan.

May God bless you abundantly.

DEDICATION

This business plan is dedicated to my parents Mr and Mrs Joseph Micheni for their financial and
material support.
Table of Contents
DECLARATION............................................................................................................……1.
ACKNOWLEDGEMENT........................................................................................................2.
DEDICATION.......................................................................................................................3.
EXECUTIVE SUMMARY..............................................................................................4.

CHAPTER 1

1.0 BUSINESS DESCRIPTION......................................................................................1.

1.1 BUSINESS NAME......................................................................................................1.
1.2 BUSINESS LOCATION AND ADDRESS................................................................1
1.3 TYPE OF BUSINESS…………………………………………..………………………………………………………………3

1.4 FORM OF OWNERSHIP……………………………………………………………………………………………………4

1.5 PRODUCTS AND SERVICES…………………………………………………………………………………………….4

1.6 JUSTIFICATION OF OPPORTUNITY…………………………………………………………………………..4

1.7 THE INDUSTRY.............................................................................................................5.

1.8 BUSINESS GOALS AND OBJECTIVES................................................................5.
1.9ENTRY AND GROWTH STRATEGIES.................................................................5.

CHAPTRER 2
2.0 MARKETING PLAN.................................................................................................6.
2.1 MARKETING GOALS AND OBJECTIVES..........................................................6.
2.2 CUSTOMERS.............................................................................................................6.
2.3 MARKET SHARE...........................................................................................................7.
2.4 COMPETITION…………………………………………………………………8
2.5 METHODS OF PROMOTIONS AND ADVERTISMENTS.................................9.
2.5.1 PROMOTION METHOD................................................................................................9.
2.5.2 ADVERTISING METHOD............................................................................................10.
2.6 PRICING AND STRATEGY...........................................................................................10.
2.7 SALES AND TACTICS..................................................................................................10.
2.8 DISTRIBUTION STRATEGY.........................................................................................11.

CHAPTER THREE.

3.0 ORGANIZATION AND MANAGEMENT PLAN...............................................12.

3.1 MANAGEMENT TEAM.........................................................................................12.
3.2 OTHER PERSONNEL............................................................................................12.
3.3 RECRUITMENT, TRAINING AND PROMOTIONS.........................................13.
3.3.1 RECRUITMENT..........................................................................................................13.
3.3.2 TRAINING.................................................................................................................14.
3.3.3 PROMOTIONS...........................................................................................................14.
3.4 RENUMERATIONS AND INCENTIVES.............................................................14.
3.5 LEGAL REQUIREMENT.......................................................................................15.
3.6 EXTERNAL SUPPORT SERVICES.....................................................................16.
3.7 GENERAL ORGANISATION................................................................................16.

CHAPTER FOUR.

4.0 OPERATIONAL PRODUCTION PLAN..............................................................18.

4.1 PRODUCTION FACILITIES AND CAPACITIES...............................................18
4.2 BUSINESS PREMISES………………………………………………………………………………………………………19

4.3 PRODUCTION STRATEGY..................................................................................19.

4.3.1 PRODUCTION PROCESS.............................................................................................19.
4.3.2 LABOUR CONTROL....................................................................................................19.
4.3.3 QUALITY CONTROL..................................................................................................20.
4.3.4 TIME CONTROL.........................................................................................................20.
4.3.5 INVENTORY CONTROL..............................................................................................20.
4.4 PLAN LAYOUT.......................................................................................................20.
4.5 REGULATIONS AFFECTING OPERATIONS...................................................21.
CHAPTER FIVE.

5.0 FINANCIAL PLAN..................................................................................................22.

5.1 BOOKS OF ACCOUNT..................................................................................................22.
5.2 PREOPERATIONAL COST............................................................................................22.
5.3 ESTIMATION OF WORKING CAPITAL.........................................................................23.
5.4 ESTIMATION OF FIXED ASSETS..................................................................................23.
5.5 CASH FLOW PROJECTIONS........................................................................................24.

5.6 PROFORMA INCOME STATEMENT..................................................................27.

5.7 PERFORMA BALANCE SHEET.....................................................................................28.

5.8 BREAK-EVEN ANALYSIS.............................................................................................28.
5.8.1. PROFITABILITY RATION...........................................................................................31.
5.8.2 DESIRED FINANCIAL.................................................................................................32.
REFRENCES.....................................................................................................................32
0750293327
 EXECUTIVE SUMMARY
BUSINESS DESCRIPTION

The first chapter consists of the name of the owner of the business who is ANN GATWIRI, the
name of the business which is ANNIE'S MILK PARLOUR It also describes the address of the
business.
MARKETING PLAN

It is in the chapter that products, services, type of business, the form of ownership shall also be
discussed, not forgetting justification of opportunity, entry and growth strategy.

The second chapter consists of potential customers, market share, and competition from other
related business. Due to the fact that competition do exist, the business shall have sale tactics to
help cope and compete favorably.

ORGANIZATION AND MANAGEMENT PLANS

The third chapter indicates the management plan, it highlights the personnel involved in the
operation, their qualification to job specification, their remuneration and incentives. This section
supports the people with professional skills who will in one way or the other make the business
to prosper

OPERATION AND PRODUCTION PLAN.

The fourth chapter consists of the production facilities and capacity of products producing and
regulations affecting the business operations.

This chapter also shows operation cost of the business, i.e. labor cost and cost of their fixed
assets.

FINANCIAL PLAN

The fifth and last chapter describes in detailsthe pre-operational cost, estimation of the working
capital, the pro-forma income statement, pro-forma balance sheet and the projected cash flow
statement.

It also shows the calculation of desired financing, breakeven level and profitability ratios and
proposed capitalization
 CHAPTER ONE

1.0 BUSINESS DESCRIPTION.1

The business will be dealing with sales of dairy related products. This are; fresh milk, yoghurts,
dairy feeds among others. The business owner will be Ann Gatwiri,currently a student at the
Waka School of Nursing pursuing in Certificate of Health Care Assistance. The business will
offer good quality products to its customers and it will be located in Mweiga town along Nyeri-
Nyahururu Highway.

1.1 BUSINESS NAME.1

The name of the business was derived from the owner name “Ann” which in other words it can
be shortened as “Annie”. The name is combined with the product the business will offer and that
is milk. Thus the business name is “ANN'S MILK PARLOUR”. The business will deal with
dairy products such as milk, yoghurts and so on. The owner tends to start the business in the year
2023 when she is done with her education, gathering information and capital. The business motto
will be “GOOD TASTE, GOOD LIFE”. This means the business will meet the customers good
tasting milk that in turn they will have a good life.

1.2 BUSINESS LOCATION AND ADDRESS.1

The business will be located in Mweiga town along Nyeri-Nyahururu highway near Naivas
Supermarket.
The location of the business will be an appropriate site where there is availability of good
infrastructure such as roads, communication,security,source of clean water and electricity.
This will enable the sponsor to perceive transport as well as proper communication in the
business for its efficiency.

ADDRESS:

THE BUSINESS ADDRESS WILL BE:

 Waka School
MADARAKA
of Nursing
BUTCHERY

Naivas Nyeri-Nyahururu highway

supermarket

Ann's
parlour VERA HAIR
parlour PLAZA

ANN'S MILK PARLOUR

P.O BOX 113,
NYERI
TEL:0750293327

LOCATION:The Location of the business is shown by the map below:

 1.3 TYPE OF BUSINESS.3

The nature of the business will be of sales and provision of dairy related products. It will operate
as a production and sale business. The major activities will be production of and sale of milk. In
addition ANN'S MILK PARLOUR shall engage itself in the sale of dairy feeds and processing
milk to manufacturing products like yoghurt among others.

1.4 FORM OF OWNERSHIP.4

The business shall be a sole proprietorship form of business. The owner chose this form of
ownership because of the following reasons:
i) Decision making is simple since only one person needs to make such decisions.
ii) The owner enjoys all profits alone
iii) The owner keeps the secrets of the enterprise

Dairies and their products will be implemented to supplement demand that have not been
satisfied for long. This will create job opportunities especially to the school leavers. The owner
intends to start up the business in the year 2023 with an initial capital of ksh.800000/=.The
business seeks to expand as it grows to satisfy the demand from the customers fully and create
employment for the upcoming generation.

1.5 PRODUCTS AND SERVICES.4

ANN'S MILK PARLOUR deals with selling dairy products such as fresh milk, sour milk,
yoghurt, packagedmilk, among many others.

The services shall include delivery services, training services on how to keep dairy products for
better use, offering business skills to those interested in starting up businesses of the same type.
1.6 JUSTIFICATION OF OPPORTUNITY.4
Having located the business at this strategic position in Mweiga Town and its out skirts is
highly populated because it is near Waka School College, this will ensure that there will be a
ready market. Availability of big hotels around the area is another justification that the business
is fit for the place.
The proposed business will create job opportunities to the community. The manager will
employ 5 workers in the business. This includes: the manager, Supervisor, Accountant, driver,
two security guards and sales personnel.
The entire employees will carry out operations in the business and this will be able to meet the
demand of customer at different standards.

1.7 The Industr.5

The business under the agricultural industry and of medium size. The owner expects the trend of
the business to rise as it progresses as her intention is to launch the product knowledge to the
public.
Research done reveals that high demand from the customers has not been satisfied for long.
Hence due to launching products knowledge, demand will be created and customers satisfied
accordingly as well. This indicates that trends will continue being favorable until majority
knows about the products and their need to be satisfied.

1.8 BUSINESS GOALS AND OBJECTIVES.5

ANN'S MILK PARLOUR aims at creating profit which leads to the achievements of the
business future objectives. The business also aims at providing high quality products to their
customers.
It also aims at creating more job opportunities to the high number of jobless people. It will also
ensure that there is good relationship with the rest of the community.

1.9ENTRY AND GROWTH STRATEGIES 5

The entry strategy into business will be neatly established business firm. It will include the
placement of signboards at strategic premises to attract many customers.
By advertising through newspapers, providing copies of magazines bearing the name of the
business and through media services such as Television and Radio programmers.
This will create awareness too many customers. However, as the business picks up and starts
experiencing more sales, it will be obvious that many customers have identified the location.
Existence of competition makes penetration to the market a bit hard due to their experience
gained in the field and economic stability.

The quality of the products and services on offer and the size of the customers to buy from
ANN’S MILK PARLOUR.
Increased Revenue: Growth strategies can help businesses and individuals increase revenue by
expanding their customer base, developing new products or services, and entering new markets.
 CHAPTER TWO

2.0 MARKETING PLAN.6

Marketing plan is a total system that will design plan price, promoters and distribute wants
satisfying products and services at a profit. It has various importance’s some of which include;
i. To maintain or improve the market share of the business.
ii. To maximize profit.
iii. Helps to inform potential and existing customers concerning the business enterprise
goods and services.

2.1 MARKETING GOALS AND OBJECTIVES.6

The main aim of the business is selling of goods and services to make profit. The following
are the goals the owner wishes to accomplish;

i. To make sure through her effort and effort from employees, the business will have
attracted most of the customers within the market.
ii. The owner have a plan to be making a profit of about 70% per month.
iii. To have expanded the business and employed more employees.

2.2 CUSTOMERS.6
The business customers will be drawn from all walks of life. The customers can be categorized
into three groups namely:
I) Individual customers
The individual customers targeted by MARIAH’S MILK PARLOUR include the
government employees living in rentals. They form the most reliable and potential
customers.
II) Institutional customers
These are group of customers found in a given place for a common purpose i.e.
schools, colleges, health facilities, universities and companies.
The proposed business is targeting institutions and secondary schools. This will
promote business because they will buy milk in large quantities in order to
accommodate students.
 III) Commercial customers: These are customers who buy the products in large quantity
and at a lower prices and resale it for a profit

2.3 Market Share.7

Before presenting the product to the market it will be better to carry out a market research that
will enable one to know the targeted customers. After the research program, it was discovered
that Mweiga town has a market potential of the products from dairy business up to 75%. Thus
venturing into the business it will be able to enjoy 40% of the market share with the remaining
being shared among the competitors.

On pie chart representation it will

Examples of running businesses include;

Organization Rate Share Holding

Mike products 30%
Farm dairy products 30%
Ann's parlor 40%
look like below:

SHARE HOLDING %

30

40

30

MIKE PRODUCTS FARM PRODUCTS ANN PARLOR

 2.4 COMPETITION.8
ANN'S MILK PARLOUR will have two major competitors, MIKE products and FARM dairy
products Distributors which are 1km and 2km respectively from ANN’S PARLOUR

Numbe Competitor Location Marke Strengths Weakness Strategy to

r t share compete
with
competitor
s
1 MIKE Kingo'ng 30% Popularity. Poor record No
PRODUCT o They have keeping. discounts
S estimated many No offered.
customers and professional
they have been employees.
able to reach Poor
them. rumuneratio
They use n of workers
modern
technology.
2 FARM Kanyagia 30% Offer after sale Poor Unskilled
DAIRY services management labour
PRODUCT Services No room for
S offered by the expansion.
business are
relatively of
high quality.
3 ANN’S Mweiga 40% Quality Insufficient No room
MILK products experience for
PARLOUR offered. expansion.
Good
management
Clean
environment
Easy access
due to well
connected
roads and lines
of
 communication
.

2.5 METHODS OF PROMOTIONS AND ADVERTISMENTS.9

2.5.1 Promotion Method.9

Sales promotion is used to accelerate the movement of the products. The main aim of the
promotion is to attract more customers.

The following are the methods of sale promotion to be used in the proposed business:
a. After sale services
The business will give after sale services to the customers who purchase the products in large
quantities i.e transport.
b. Credit Facility
Potential and reliable customers will be given credit facilities
c. Trade Discount

Frequent customers who purchase products in bulk will be given credit facilities.

2.5.2 Advertising Method.9

The main aim of the advertisement is to create awareness to boost customers of the existing
products and in turn boost the sales of the business organization. The methods of advertisement
include:
 Posters
The posters will be distributed everywhere containing business name, address and location,
operating hours and products offered.
 Billboards
It will be placed in neighboring markets and institutions. The billboards will show directions and
the location of the proposed business.
 Media
Advertisement will also be through radios, that is, TULIZA FM (92.7) This will be reliable since
most people living around the business area understand the language used and are die heart fans
of these radio stations.
 2.6 Pricing and Strategy.10
The selling price of the products will be determined by the buying price and transportation
expenses to the business premises. The competition price will also be taken into consideration.
The selling price of the products will be variable. The unsteadiness of the price will be caused by
changes in the supply and demand of milk during sometime.
Trade discounts and terms of credit will suit the proposed business products. The criteria that
will be used will depend on the amount of milk or manure purchased.

2.7 Sales and Tactics.10

The business will make sales directly to customers. Customers will come to the premise or they
can send an order. For those who will come to the premise, they will have to pay for the quantity
and be served right away. For those who will send an order, they will be needed to pay for the
products upon delivery.
The services offered by the business will be of fair charges so as to meet customers’ needs while
frequent visiting customers will get certain credit which is payable monthly or weekly.
The firm also desires to have spot cash as a mode of payment by customers. As a way of
motivating the workers, the firm will offer fair wages as equity providing satisfactory working
condition.

2.8 Distribution Strategy.11

The products shall be distributed to customers by road. Use of motorbikes will be the common
means of transport more especially to the rural areas.
DISTRIBBUTION PROBLEMS:
i. RAINS
During rainy seasons, there are difficulties of transporting the products to the rural areas
since the roads are muddy and slippery.
ii. POOR ROADS
Some roads are damaged completely, full of pot holes making delivery of products
difficult.
 Solutions to the problems

Opening new branches in the rural areas where they will be stocking centre for the business. The
proposed business will intend to buy a vehicle which will make distribution easier to its potential
customers.
 CHAPTER THREE

3.0 ORGANIZATION AND MANAGEMENT PLAN.12

For the business success and achievement of its goals, good organizational plan is required. It
involves planning and working the plan. I.e. planning the work to be carried out or working out
according to the plan laid. Human labor is the most employed for easy activity.

3.1 MANAGEMENT TEAM.12

This will clearly show who and where one is involved and responsible for achievement in an
organization. The owner of the business will take the responsibility of managing the business.

3.2 OTHER PERSONNEL.12

Serial Personnel Number Qualifications Duties and Salaries
NO. Responsibilitie and
s Benefits
1 MANAGER 1 Must be Controlling and 15000/=
18years and coordinating the Per month.
above. business.
Must have Planning and
good setting business
knowledge in policies.
business Carrying out
management. recruitment
Must be promotion.
computer Financing the
literate. business.
Must have
entrepreneurial
skills
2 ACCOUNTANT 1 Have a Receiving cash 10000/=
diploma in Giving of Per month
accounting. receipts.
Must be Paying of goods
18years and and services.
above. Banking of the
Computer business money.
literate and one
year
experience.
 3 SALES 2 Certificate in Selling of the 7000/=
PERSON sales and products Per month
marketing. Serving of the
Computer customers.
literate.
Above
18years.
4 SECURITY 2 Have attained Enforcing 5000/=
PERSON a KCPE security within Per month.
certificate the premises at
Must be all times.
18years and Keeping records
above. of visitors
coming to the
premises.

3.3 RECRUITMENT, TRAINING AND PROMOTIONS.13

For the business success Mariah’s milk Parlour will make all efforts to recruit competent and
qualified people to the organization

3.3.1 Recruitment.13
Different methods will be used by the owner to acquire workers for the business. The following
steps will be followed:
 Advertisement
The advertisement for the post needed will be communicated to the public through posters and
will be stuck in public places. The interested will have to send their letters of application via the
address that shall be posted in the posters.
 Application forms
The shall be application forms to be downloaded or picked from the premise and persons
requiring the Job will be required to fill these forms send them to the manager on or before the
deadline of application is reached.
 Short listing
All the applications shall be analyzed and sorted out by considering the most appropriate
personnel through their qualifications. After the analysis those considered shall be shortlisted
for the interview. The shortlisted candidates will therefore be send letters informing them the
date of the interview.
 Interview
The applicants who have been short listed will be called for an interview to be done in the main
offices of the firm. During the interview, qualification, experience an appearance shall be a
matter of concern.
  Employment
After carrying out the interview, those who successfully pass the interview shall be informed of
the date they are suppose to report for the job.

3.3.2 Training.14
The firm will be training the sponsoring members and staff for further studies when the business
is financially stable. This will be done by sending them to seminars where they will acquire more
skills regarding the operations of the business. The business will allow those workers who want
to study part time courses.

3.3.3 Promotions.14
For a successful business, promotion plays an important role. For promotion to take place,
qualified promoters has to offer promotion. Promotion will be rewarded depending on the
number of customers and demand on the market of the products.

Promotion will also be carried out to the staff by increasing salary basing on their performance.
Those who will contribute much will be rewarded by increasing their salaries

3.4 RENUMERATIONS AND INCENTIVES.14

The employees will enjoy working with minimal supervision. The working hours will be fair as
from 8.00am-5.00pm weekdays, any other extra work done will be counted as overtime. The
employees will also be given bonuses when reasonable profits are made. Loans will be given to
workers who have urgent needs of money like school fees and settling of hospital bills. Finally
there will be an end of year party and the best workers will be rewarded with gifts and even
certificates.

3.5 LEGAL REQUIREMENT.15

License- will be obtained from the ministry of trade and commerce office in Nyeri town. The
cost will be 3500 per year.

Permits- the entrepreneur will get permit to operate the business in the location and even in the
mobile market in the region.
By-laws and regulations – the business will agree to abide to regulations and laws affecting it
as;-

 Disposal of waste at the right place.

 Lab-laws-provide conducive working environment and paying of
salaries fairly to the employees.
 Should abide to employment ACT 226.

Summary of legal requirement and where they are obtained

SERIAL REQUIREMENT DESCRIPTION WHERE FEES REMARKS

NO. OBTAINED PAYABLE
1 Government Trade licence Ministry of 3500 Annually
regulation trade
2 Government Permits County 3100 Once
regulation council
3 Labour NSSF Workman 500 Once
4 Business forman Registration N/I 3200 Once
5 Local Authority Services charge County 200 Monthly
regulation for garbage government
collection

3.6 EXTERNAL SUPPORT SERVICES.16

a. Banking services

The firm will require support from Cooperative bank and Equity bank both within Mweiga town.
The owner believes that the two banks will provide total secure of money raised in the business
with no alteration. Also the business will acquire loan from either of the bank in case there is
need for one.

b. Risk insurance

Britam insurance is the one the owner chooses in order to ensure the business.
 c. Postal services.

The market has an advantage of having postal office around paying of bills and sending of
messages will be effective.

d. Telephone services

The best mode of use is cellphone since its IOS portable and easily acquired.

3.7 GENERAL ORGANISATION.16

The organization structure will be planned as in the figure below;

MANAGER

ACCOUNTS
MANAGER

SECURITY SALES
GUARDS PERSONS