Business Plan
[October 04, 2025]
Nkhoma Affordable Tuck Shop
Nkhoma University Campus
Lilongwe, Central Region, Malawi
Business Phone: +265 999 123 456
Website URL: N/A
Email Address: [Link]@[Link]
Confidentiality Agreement
The undersigned reader acknowledges that any information provided by Nkhoma Affordable
Tuck Shop in this business plan, other than information that is in the public domain, is
confidential in nature, and that any disclosure or use of same by the reader may cause serious
harm or damage to Nkhoma Affordable Tuck Shop. Therefore, the undersigned agrees not to
disclose it without express written permission from John Doe.
Upon request, the undersigned reader will immediately return this document to John Doe.
Signature
Name (typed or printed)
Date
Table of Contents
Confidentiality
Agreement ..........................................................................................................................3
I. Executive Summary............................................................................................................5
II. Company Description .......................................................................................................7
III. Products & Services .........................................................................................................9
IV. Marketing Plan ...............................................................................................................11
V. Operational Plan .............................................................................................................23
VI. Management & Organization ........................................................................................25
VII. Startup Expenses & Capitalization ..............................................................................28
VIII. Financial Plan ...............................................................................................................29
IX. Appendices .....................................................................................................................31
X. Refining the Plan .............................................................................................................32
Executive Summary
Nkhoma Affordable Tuck Shop is a student-run retail business located on the campus of Nkhoma
University in Malawi, offering fast food, groceries, and essential commodities at reduced prices
to help students manage their living costs more effectively.
The shop will provide affordable, convenient access to everyday items like snacks, meals, staples
(bread, rice, milk), and other goods (toiletries, stationery), solving the problem of high prices at
existing off-campus or university-affiliated stores by sourcing in bulk from wholesalers in
Lilongwe.
Our goal is to achieve profitability within the first year, expand inventory in three years, and
potentially open a second location on campus in five years.
The target market is the approximately 1,500 students at Nkhoma University, primarily aged 18-
25, with limited budgets.
Competition includes existing university canteens and nearby local shops, but our unique selling
proposition is lower pricing (10-20% below market averages) achieved through minimal margins
and direct sourcing, combined with on-campus convenience.
The management team is led by John Doe, a current student with prior experience in small-scale
retail from family businesses, bringing enthusiasm and local knowledge.
We seek 5,000,000 MWK in startup capital to cover initial inventory, setup, and operations,
which will enable us to break even within 6 months and generate an estimated annual profit of
13,200,000 MWK by year-end.
Company Description
Business Name: Nkhoma Affordable Tuck Shop
Company Mission Statement: To provide affordable fast food, groceries, and essential
commodities to students at Nkhoma University, reducing their overall cost of living and enabling
better focus on studies.
Company Philosophy/Values: Affordability, convenience, integrity, and community support. We
prioritize fair pricing over high profits to build loyalty among students.
Company Vision: To become the go-to on-campus retailer for affordable essentials, potentially
expanding to other universities in Malawi.
Goals & Milestones:
Secure startup funding and open shop within 3 months.
Achieve break-even in 6 months with 100 daily customers.
Expand product range and reach 20% market share among students in 1 year.
Target Market: Students at Nkhoma University, aged 18-25, with low disposable income,
seeking budget-friendly options for daily needs.
Industry/Competitors:
The retail tuck shop industry in Malawi is growing due to increasing student populations but
faces challenges from inflation and supply chain issues.
Short-term outlook: Stable with opportunities in campus-based retail. Long-term: Potential
growth with university expansion.
Competitors include university canteens and off-campus shops; we'll compete by offering lower
prices and convenience.
Legal Structure/Ownership: Sole proprietorship owned by John Doe, chosen for simplicity and
low setup costs as a student startup.
Products & Services
Product & Service Description Worksheet
Business Name: Nkhoma Affordable Tuck Shop
Product/Service Idea: A tuck shop selling fast food (e.g., burgers, fries, sandwiches), groceries
(e.g., bread, milk, rice, sugar), and commodities (e.g., soap, toothpaste, notebooks) at discounted
prices to reduce student expenses.
Special Benefits: Affordable pricing (10-20% below local averages), convenient on-campus
location saving travel time/costs, fresh and quick options for busy students.
Unique Features: Bulk sourcing for cost savings passed to customers, student-focused inventory
(e.g., budget meal combos), potential loyalty program for repeat buyers.
Limits and Liabilities: Limited space may restrict stock variety; perishable goods require careful
inventory management to avoid waste.
Production and Delivery: Products sourced from Lilongwe wholesalers; fast food prepared on-
site with basic equipment like grills and fridges; delivery not offered, in-shop sales only.
Suppliers: Local wholesalers in Lilongwe (e.g., general goods suppliers); aim for reliable
partners with credit terms.
Intellectual Property: None at startup.
Special Permits: Business registration and health permits for food handling in Malawi.
Product/Service Description: The tuck shop addresses high costs by offering essentials at
reduced prices through efficient sourcing. It's better than competitors due to campus proximity
and focus on student budgets, with no proprietary features but strong emphasis on value.
Marketing Plan
SWOT Analysis Worksheet
| Product/Service Offering | Strengths: Affordable pricing, convenient location. |Weaknesses:
Limited initial inventory variety. | Opportunities: Expand to custom meal prep. Threats: Price
fluctuations from suppliers. | | Brand/Marketing | Strengths: Student-run appeal builds trust. |
Weaknesses: No established brand yet. | Opportunities: Use campus events for promotion. |
Threats: Competition from established shops. | | Staff/HR | Strengths: Owner's enthusiasm and
local knowledge. | Weaknesses: Small team, potential inexperience. | Opportunities: Hire fellow
students part-time. | Threats: Staff turnover due to studies. | | Finance | Strengths: Low overhead
costs. | Weaknesses: Limited startup capital. | Opportunities: Quick profitability from daily sales.
| Threats: Economic inflation in Malawi. | | Operations/Management | Strengths: Simple retail
model. | Weaknesses: Dependence on owner. | Opportunities: Streamline with basic inventory
tools. | Threats: Supply chain disruptions. | | Market | Strengths: Captive student audience. |
Weaknesses: Seasonal (semester-based). | Opportunities: Growing university enrollment. |
Threats: New competitors on campus.
Competitor Data Collection Plan
Price: Visit competitors' shops and note prices for similar items (e.g., bread, snacks).
Benefits/Features: Observe product quality, variety, and customer service during visits.
Size/profitability: Estimate from foot traffic and online reviews; assume small local shops with
moderate profits.
Market strategy: Note their advertising (posters, word-of-mouth) via campus observation.
Competitive Analysis Worksheet
| FACTOR | Me | Competitor A (University Canteen) | Competitor B (Nearby Local Shop) |
Competitor C (Off-Campus Grocery) | Importance to Customer | | Products | S | S | W | S | 1 | |
Price | S | W | W | W | 1 | | Quality | S | S | S | S | 2 | | Selection | W | S | S | S | 2 | | Service | S | W |
W | W | 3 | | Reliability | S | S | S | S | 3 | | Stability | W | S | S | S | 4 | | Expertise | S | W | W | W | 4
| | Company Reputation | W | S | S | S | 3 | | Location | S | S | W | W | 1 | | Appearance | S | W | W |
W | 4 | | Sales Method | S | S | S | S | 5 | | Credit Policies | N/A | N/A | N/A | N/A | 5 | | Advertising
| W | W | W | W | 4 | | Image | S | W | W | W | 3 |
Our competitive advantages include superior pricing and location, key for budget-conscious
students.
Marketing Expenses Strategy Chart
| | Target Market 1 (Students) | Target Market 2 (Staff/Faculty) | Target Market 3 (Visitors) | |
One-Time Expenses | Posters and flyers: 500,000 MWK | N/A | N/A
Monthly or Annual Expenses | Social media ads: 200,000 MWK annual | Email campaigns:
100,000 MWK annual | N/A | | Labor Costs | Owner-managed: 0 | N/A | N/A |
Pricing Strategy Worksheet
Business Name: Nkhoma Affordable Tuck Shop
Which of the following pricing strategies will you employ? Circle one.
Cost Plus
Provide an explanation of your pricing model selection.
Include strategy info on your major product lines/service offerings. List industry/market
practices and any considerations to be discussed with your mentor.
Cost-plus pricing: Add 20-30% markup to wholesale costs for groceries/fast food, lower than
competitors' 40-50% to achieve affordability. Industry practice is higher markups, but we'll focus
on volume sales.
DISTRIBUTION CHANNEL ASSESSMENT WORKSHEET
| | Distribution Channel 1 (Retail In-Shop) | Distribution Channel 2 (N/A) | Distribution Channel
3 (N/A) | | Ease of Entry | High | | | | Geographic Proximity | High (on-campus) | | | | Costs | Low |
| | | Competitors' Positions | Moderate | | | | Management Experience | High | | | | Staffing
Capabilities | Moderate | | | | Marketing Needs | Low | | |
Market research: Primary - Survey 100 students on needs/prices; Secondary - Use data from
sources like Expatistan for Malawi grocery costs (e.g., fast food meal 7,825 MWK, but we'll
price at 5,000 MWK). Industry size: Small-scale retail growing with student population; target
market ~1,500 students, aiming for 20% share.
Barriers to entry: Low startup costs (~5M MWK), no unions/tariffs.
Threats and opportunities: Economic changes may increase costs, but university growth offers
expansion.
Product/service features and benefits: Affordable, fresh items saving students money/time.
Target customer: Students, age 18-25, low income, Lilongwe area.
Key competitors: University canteen (higher prices), nearby shops (less convenient).
Positioning/Niche: Affordable on-campus essential provider.
How you will market: Posters, social media (Facebook), word-of-mouth; project friendly,
budget-focused brand with simple logo.
Promotional budget: Before startup: 500,000 MWK; Ongoing: 200,000 MWK annual.
Location: On-campus kiosk, convenient, low rent via university agreement.
Distribution channels: Retail in-shop only.
12-month sales forecast: Month 1: 1,000,000 MWK; increasing to 6,000,000 MWK by Month 12
(best guess); Worst case: Half volumes.
OPERATIONAL PLAN
Production: Fast food prepared on-site with basic equipment (grill, fridge); groceries stocked
from suppliers.
Quality control: Daily checks for freshness, FIFO inventory method.
Location: 50 sqm kiosk on Nkhoma University campus; retail type, accessible, low costs
(~500,000 MWK/month rent/utilities).
Legal environment: Business license obtained; no patents; basic insurance (1,000,000 MWK
coverage); comply with health regs for food.
Personnel: Owner + 2 part-time students (cashiers/cooks); hourly pay 1,000 MWK; train on-site
for hygiene/service.
Inventory: Groceries/fast food supplies; average value 2,000,000 MWK; turnover 12x/year;
seasonal for semesters.
Suppliers: Lilongwe wholesalers; credit 30 days; backups for key items; expect stable costs.
Credit policies: Cash-only, no credit to avoid risks.
MANAGEMENT & ORGANIZATION
Management Worksheet
Elise magana - Current business student at Nkhoma University with 2 years helping family retail
shop; skills in inventory and customer service.
Gaps in Management or Experience: Limited financial expertise; will consult university advisor
or hire part-time accountant.
Advisors: Mentor from university business department; local accountant for taxes.
Organization Chart
OWNER (John Doe)
PART-TIME CASHIER 1 PART-TIME CASHIER 2
Startup Expenses & Capitalization
Startup expenses: Inventory 2,000,000 MWK; Equipment (fridge, shelves) 1,500,000 MWK;
Rent deposit 500,000 MWK; Licenses 500,000 MWK; Marketing 500,000 MWK. Total:
5,000,000 MWK.
Capitalization: Personal savings 1,000,000 MWK; Seek loan 4,000,000 MWK at 5-year term.
Financial Plan
12-month profit & loss projection: Sales start at 1M MWK/month, ramp to 6M; COGS 60%;
Expenses 1.1M/month; Net profit ~1.1M/month by year-end. Assumptions: 100 daily customers,
avg 2,000 MWK spend.
Optional: 3-year profit & loss projection: Year 1: 72M sales, 13.2M profit; Year 2: 90M sales,
20M profit; Year 3: 110M sales, 30M profit (growth from expanded inventory).
Cash flow projection: Positive from Month 3; initial outflow for setup, inflows from sales.
Optional: 3-year cash flow statement: Cumulative positive 50M by Year 3.
Projected balance sheet: Assets 7M (inventory/equipment); Liabilities 4M (loan); Equity 3M end
Year 1.
Break-even calculation: Fixed costs 13.2M annual; Variable 43.2M; Break-even sales ~55M (at
40% margin).
Use of capital: 5M MWK for startup; expect 18% ROI in Year 1.
